Dear Larry Campbell:
On September 28, 2001, new NASD/NYSE day trading margin requirements 
will go into effect for all brokers. The new industry-wide day trading 
rules outline specific requirements that all accounts that frequently 
day trade must comply with. 
While the new day trading rules offer increased leverage, they also 
present the opportunity for greater losses. We ask that you take 
the time to understand how the new day trading rules will affect 
your account. 
My account hasn't been tagged as a pattern day trader account. What 
does this have to do with me?
Datek is giving all margin accounts access to the additional day 
trading buying power as permitted by the new rule. Unless your 
account's trading pattern matches that of the NASD/NYSE day trading 
margin rule, you will not be required to meet day trading margin 
restrictions. However, we still ask that all margin account holders be 
educated on the new rules as they may affect your account. Should your 
account be tagged as a pattern day trading account in the future, 
Datek will notify you of the designation. 
What are the new day trading margin requirements for pattern 
day traders?
A "pattern day trader" is defined as an account that makes 4 
round-trip day trades (buying and selling the same security in one 
day) in any rolling 5 business day period. Pattern day traders will be 
subject to a new set of day trading rules and requirements. Here's 
what you need to know: 
? Under the new rules, customers that have been identified as 
   pattern day traders must maintain $25,000 in marginable equity at 
   all times. Pattern day trader accounts that fall below the $25,000 
   NASD/NYSE minimum will be restricted to cash transactions only, 
   until the minimum equity amount is reached. Go to 
   http://www.datek.com/helpdesk/transfers.html  to find out how to 
   transfer equity or http://www.datek.com/helpdesk/deposits.html 
   for information on depositing cash and securities to meet the new 
   $25,000 minimum. 
? A day trading margin call will be generated as soon as an executed 
   day trade in a pattern day trader account exceeds the day trading 
   buying power. Customers will have 5 business days to fulfill a day 
   trading margin call. Only a deposit of cash or fully paid securities 
   can satisfy a day trading margin call. 
? A day trading call must be met in 5 business days. If the day 
   trade margin call is not satisfied by the fifth business day, the new 
   NASD/NYSE rules require that the account be restricted to trading on a 
   cash available basis for 90 days or until the day trade call is met. 
How am I given increased leverage under the new rules?
The new rules modify the day trading buying power calculations, 
giving you access to 4 times the margin maintenance excess. This 
is a two-fold increase in the possible leverage available under 
current rules. 
Example: A pattern day trader with a cash balance of $30,000 and no 
positions in their account would have access to $120,000 day trading 
buying power ($120,000 = (4*30,000)). 
Day trading buying power is calculated based on the positions and cash 
in an account at the end of the trading day. Generally, you can 
calculate your day trading buying power using the following formula: 
[75% of the Long Stock Value (LSV) - 130% of any Short Stock Value 
(SSV) + Cash]*41
As an added benefit, we will display your day trading buying power in 
real-time on your portfolio and trading pages as soon as the new rules 
go into effect. This buying power figure is the amount available for 
day trading. Day trading buying power does not change based on gains 
and losses in your account that occur intra-day. 
Be aware that all margin accounts will have access to the greater of 
either their stock buying power or their day trading buying power. Our 
systems will always allow an order to go through based on the higher 
buying power amount. Since our systems have no way of determining 
whether you will hold the position overnight or just for the day, it's 
your responsibility to enter trades that remain within the buying 
power for the type of trade you're making. 
What can I do to meet a day trading margin call?
Should you need to meet a day trading margin call, the fastest way is 
by wiring funds to your account or sending an overnight check. For 
help with mailing addresses and wire instructions, go to http://www.datek.com/helpdesk/deposits.html . Remember, day trading 
calls can only be met by depositing cash or non-margined securities. 
Is this industry-wide? Will all brokers have to comply with 
these rules?
The new day trading rules are NASD/NYSE requirements that will have to 
be followed by all brokers. We are ready for these changes and are 
taking all the right steps to make sure you are ready as well. If your 
account is tagged as a pattern day trading account according to the 
new NASD/NYSE definition, you will receive notification from Datek. If 
your account has already been tagged as a pattern day trader under the 
current rule, the tag will remain in place for 90-days after your last 
day-trade and you will be required to be in compliance with the new 
rule as of September 28, 2001. 
Fully understanding your risk tolerance and the new NASD/NYSE margin 
requirements allows you to better manage your margin account. Please 
review our Helpdesk at http://www.datek.com/helpdesk/margin.html#daytrading  for more 
information on the new day trading rules. If you have questions about 
the NASD's new margin requirement or need assistance with your 
account, please email our customer support staff 24 hours a day, 7 
days a week at support@datek.com, or call 1-877-94-DATEK 
(1-877-943-2835) from 8 AM to midnight ET on weekdays, and from 9 AM 
to 7 PM ET on weekends. 
Sincerely, 
Datek Online Financial Services LLC 
Above examples are for illustrative purposes only. 
1 Portfolios with low priced short positions are calculated 
slightly different. Please consult our Help Desk for more information 
on calculating D.T. Buying Power with short positions. 
System response and access times may vary due to market conditions, 
system performance and other factors. 
? 2001 Datek Online Financial Services LLC, Member NASD/SIPC 
CC-DA52 / #75596