The SEC has approved amendments to NASD Rule 2520 regarding Day Trading that are effective September 28, 2001. A description of the rule changes is summarized below.

• "Pattern day traders" are defined as those customers who day trade four or more times within five business days, provided that the number of day trades exceeds 6% of the customers total trading activity for the five-day period.

• Customers designated as "pattern day traders" are subject to a minimum equity requirement of $25,000. The required minimum equity must be in the account prior to any day-trading activity. Accounts with less than $25,000 will not have day trading buying power.

• Day-trading buying power is limited to four (4) times maintenance margin excess. This is calculated based on the customer's account position as of the close of business of the previous day.

• Day-trading buying power will be reduced to two (2) times maintenance margin excess for those customers that have outstanding day-trading margin calls. In addition, the "time and tick" method of calculating the requirement will not be used. Therefore the requirement will be based on the total cost of a customer's day trades during the day.

• If a day-trading call is not met by depositing funds within five (5) business days, the account will be restricted to trading only on a cash-available basis for ninety (90) days or until the call is met.

• Deposited funds used to meet the day-trading minimum equity requirement or to meet a day-trading margin call must remain in the customer's account for two (2) business days following the close of business on any day when the deposit is required.

• "Pattern day traders" are prohibited from meeting day-trading margin requirements through the use of cross-guarantees.

• The sale of an existing position from the previous day is considered a liquidation and the subsequent repurchase of that security as the establishment of a new position not subject to the rules affecting day trades.

• Day trading may create a potential registration requirement. Persons providing investment advice for others or managing securities accounts for others may need to register as either an "Investment Advisor" under the Investment Advisors Act of 1940 or as a "Broker" or "Dealer" under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.