Investor Alert
Click for Previous Alerts September 2007

Good News:  Retirement of PreferredTrade V5.2 Delayed

We have decided to delay the retirement of our version 5.2 PreferredTrade software until later in the Fall of this year.

More Good News:  New PreferredTrade V5.2 Coming

Even better news is that we will be releasing a new version 5.2 in the coming weeks.

Watch for a notice of the Beta version of this new 5.2 soon.

Customers should also download the latest version 6.3 software by clicking on the following link: www.FimatPreferred.com/content/download_sw.aspx.

Options Contract Adjustment Changes Due to Stock Splits and Distributions

The Options Clearing Corporation has introduced a new methodology that will eliminate the rounding of strike prices to avoid adjustment inequities that have resulted from rounding strikes. This new method will be effective for adjustments (other than 2-for-1 and 4-for-1) whose ex-distribution date is September 4, 2007 and thereafter.

The basic features of all adjustments under this new method are:

· Strike prices remain unchanged

· The additional shares are added to the contract deliverable

· The premium multiplier will remain the same

· The number of contracts remains the same

After adjustments are made under the new method, it will no longer be possible to determine if an adjusted option is in- or out-of-the-money by simply comparing the underlying stock price to the option strike price. You should always be aware of the number of shares in the deliverable and the fact that the multiplier used for premium and strike dollar extensions remains unchanged.

For more information on this matter, please refer to the following OCC memo: click here.

Stock Market Volatility Disclosure

Recent events show that the way some stocks are traded is changing dramatically, and the change in trading methods may affect price volatility and cause increased trading volume. This price volatility and increased volume present new hazards to investors, regardless of whether trading occurs on-line or otherwise.

Delays

High volumes of trading at the market opening or intra-day may cause delays in execution and executions at prices significantly away from the market price quoted or displayed at the time the order was entered. Market Makers may execute orders manually or reduce their size guarantees during periods of volatility, resulting in possible delays in order execution and losses. Consequently, investors may receive executions away instead of at or near the quotes displayed on their computer screens.

Types of Orders

There is a difference between market and limit orders. Firms are required to execute a market order fully and promptly without regard to price and that, while a customer may receive a prompt execution of a market order, the execution may be at a price significantly different from the current quoted price of that security. Limit orders will be executed only at a specified price or better and that, while the customer receives price protection, there is the possibility that the order will not be executed.

Access

Customers experiencing any inability to place orders online should immediately contact us at the following:

Customer Service: (888) 781-0283 or (415) 733-3032
Customer Service Fax: (415) 520-5633
Customer Service Email: Service@NewedgeGroup.com
San Francisco Main Number: (415) 733-3000

Chicago: (312) 422-2300

Philadelphia: (215) 981-1434

New York: (646) 557-7532

Margin

Newedge USA, LLC may raise margin requirements for volatile stocks. The rationale for raising maintenance margin is to help ensure that the equity in a customer’s margin account is sufficient to cover large changes in the price of a stock. Increasing maintenance margin requirements protects both the firm and customers by ensuring that investors have more equity in their margin accounts as protection in case of a large change in the value of a stock, which reduces the likelihood that the firm will have to liquidate assets in the customer’s account to meet a margin call. Newedge USA evaluates stocks for more stringent maintenance margin requirements by examining price fluctuations, market capitalization, and volatility.

Money Market Prospectus

For your securities account, a Money Market Mutual Fund is the sweep vehicle for un-invested cash balances. Please read the Prospectus before investing by clicking the following website www.fimatpreferred.com/PoliciesDisclosures/money_market_prospectus.aspx or call 888-781-0283 to request by mail. Newedge USA may receive a fee for performing services in respect of the Money Market Mutual Funds, which services may include distribution, marketing or other services. Please note that Newedge USA, LLC does not pay interest on un-invested cash balances in futures accounts.

Newedge USA, LLC

220 Bush Street, Suite 650, San Francisco, CA 94104

Member NYSE, FINRA, MSRB, NFA, SIPC and other principal exchanges

Customer Service can be reached at 888-781-0283 or by email at Service@NewedgeGroup.com. Customer Service fax is 415-520-5633

Customer Account Information can be found by clicking Account Info Logon.

All contents of the “Investor Alert” are for educational purposes only. Any graphics are for illustration purposes only. Newedge USA, LLC does not offer investment advice.

Please note that options are not suitable for all investors and investing in options carries substantial risk. Because of the importance of tax considerations to all options transactions, investors considering options should consult with a tax advisor as to how taxes affect the outcome of contemplated options transactions. Individuals should not enter into options transactions until they have read and understood the risk disclosure document titled "Characteristics and Risks of Standardized Options." To obtain a copy of the Options Disclosure Document contact us at 888-781-0283.

Newedge USA, LLC (“Newedge”), a member of SIPC and a broker-dealer and futures commission merchant registered under US laws, makes no representations or warranty regarding the appropriateness of any transaction for any person. This sales literature is solely for informational purposes, and is not to be construed as an offer to buy or sell any security. The information herein is based on sources we believe to be reliable, but is not guaranteed by us and may be incomplete or condensed. Any opinions expressed herein are statements of Newedge’s or third-party sources’ as of the date indicated and are subject to change without notice. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. All futures, securities and options trading entails significant risks, which should be fully understood prior to trading. Consult your account representative for details. Past performance is not a guarantee of future results. Except as indicated otherwise, Newedge and the Newedge Group refer to all companies or divisions of companies owned directly or indirectly by Societe Generale that include the “Newedge” name. Not all products and transactions offered by Newedge are available from all companies of the Newedge Group. The views expressed herein may differ from those expressed by affiliates of Newedge, and such views do not represent or purport to represent those of such affiliates. Newedge, or one or more of its employees, may have a position in any of the securities discussed herein, including options, rights or warrants to purchase such securities. All contents of this document are for educational purposes only. Any graphics are for illustration purposes only. Newedge USA does not offer investment advice. Date of first use: September 4, 2007. Copyright Newedge USA, LLC 2007. All rights reserved.