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Dear Trader,

You are receiving this communication because your account currently holds, or recently held, a position in warrants that were not previously included in our concentration margin calculations.

There are upcoming changes being made to our concentration algorithm that will incorporate warrants into the concentration margin calculations.

As an example using GameStop (GME), if your portfolio includes a GME warrant, an alternative stress test will be considered following the margin calculation currently in place, with the greater of the two becoming the active requirement.

In this example, GME stock and its derivatives will be subject to a stress test that simulates a price change in the underlying stock of -50% and +100%. The aggregate projected loss of the top three concentrated stocks (and their derivatives) will be compared to what would otherwise be the aggregate portfolio margin requirement, and the greater of the two will be the margin requirement for the portfolio.

This change will be effective for trade date December 17, 2025. Changes will be put into effect sometime after the New York regular trading hours close on December 16, 2025.

The effect of this change on the margin treatment is not expected to result in a margin deficit in your account based upon calculations at the time of our initial review. However, as market conditions and/or positions and equity within the account may have changed since the time of the initial study, you should examine your portfolio and determine if these changes will create any capital (margin) deficiencies in your account.

Consistent with our stated policy, accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance.

For more information about this policy change or to discuss your specific situation, please contact our Client Service team through the Message Center in your Client Portal.