Requirements for Leveraged ETFs

SPECIAL MARGIN REQUIREMENTS FOR LEVERAGED EXCHANGE TRADED FUNDS

On 12/1/2009 the margin maintenance requirement for the leveraged ETF Securities increased per FINRA Regulatory Notice 09-53.

Margin maintenance requirements are as follows:
200% leverage, aka 2X ETF, will be held at 50% minimum maintenance from 25%.
300% leverage, aka 3X ETF, will be held at 90% minimum maintenance from 25%.

For example 100 shares of a 2X ETF with a Market Value of $5,000 or $50.00 per share, will have a minimum maintenance requirement of $2,500, or $25.00 per share. This is an increase from the previous level of 25% or $1,250 ($12.50 per share). 100 shares of a 3X ETF with a Market Value of $5,000 or $50.00 per share, will have a minimum maintenance requirement of $4,500 or $45.00 per share. This is an increase from the previous level of 25% or $1,250 ($12.50 per
share).

These changes will be reflected in your account balances on 11/30/2009 prior to market opening in preparation for this change.

Please contact Customer Service at 877-598-3190 if you should have any questions on this or any other matter involving your account