Business Continuity Plan

Kershner Trading Group, LLC has developed a Business Continuity Plan to respond to events that could significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we have developed a plan with the flexibility needed to respond to actual events if they occur. With that in mind, we include an overview of business continuity plan.

Contact

In the event of a significant business disruption, call (512) 306-1192 or go to our Web site at www.kershnertrading.com for information. If you cannot access us through either of those means, contact our clearing firm, Goldman Sachs Execution and Clearing at (212) 902-7445; our client service representative will have relevant information available.

Our Business Continuity Plan

We plan to quickly recover and resume business operations after a significant business disruption . Our immediate response will be to safeguard our traders, associates and property. After making an operational assessment and ensuring the integrity of our financial records, we will move to immediately provide for renewed business transaction for our traders. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the business disruption.

Our business continuity plan addresses:

• data back up and recovery;
• all mission critical systems;
• financial and operational assessments;
• alternative communications with customers, employees, associates, and regulators;
• alternate physical location of employees and associates;
• critical suppliers and contractors;
• impact on banking and counter-party;
• regulatory reporting; and
• ensuring our customers prompt access to funds and securities in the event we are unable to immediately continue business.

Kershner Trading Group technology and data center vendors (Broadwing and Harborside Financial Center), along with Goldman Sachs Execution and Clearing ,back up records, networks and servers in a geographically separate area. While every emergency situation poses unique challenges based on external factors, such as time of day and severity of the disruption, our clearing firm is committed to our objective to restore operations, complete existing transactions and accept new transactions and payments within four hours. It is possible that orders and requests for funds could be delayed during this period.

Varying Disruptions

Significant business disruptions can vary in scope, involving our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the extent of the disruption can vary from minimal to severe.

If the disruption involves only our firm or a building housing our firm, we will transfer operations to an identified, local site allowing us to recover and resume business within three hours.

In the event of a disruption that involves our business district, city, or region, we will transfer operations to an identified site outside the affected area, allowing us to recover and resume business within five hours.

In either instance, and in a worse case scenario, we will continue business by transferring operations to our clearing firm. In this situation, notification will be made via our Web site www.kersnhertrading.com or voice mail message at (512) 306-1192.

For more information

If you have questions about our business continuity planning, contact the Kershner Trading Group Compliance Department at compliance@kershnertrading.com or (512) 439-8236.