Maxcor Financial Inc.’s Business Continuity Planning Summary

Maxcor Financial Inc. (“Maxcor”), a registered broker-dealer, maintains a business continuity plan, including redundant data centers and alternate processing facilities, that addresses how we intend to respond to any events that significantly disrupt our business. These plans are reviewed at least annually and updated as necessary. Since the timing and impact of any disruptions are unpredictable, we will have to be flexible in responding to actual events if and when they occur. With that in mind, we are providing you with this summary of information outlined in our business continuity plan, which is intended to comply with the rules and requirements of NASD, our principal regulator.

Contacting Us – If after a significant business disruption you cannot contact us in our main New York office (646-346-7000) as you usually do, you should call our alternate numbers: either 203-969-7500 (our Connecticut branch office) or 011 44 207 204 3000 (our London branch office) or go to our web site at http://www.maxf.com.

Our Business Continuity Plan – Our plan outlines the steps we intend to take in the event of a firm-only, building, city-wide, regional or broader incident, including relocating key personnel to designated alternate facilities. Our objective is to recover and resume business operations as quickly as practicable after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records and, where feasible, allowing our clients to transact business.

Our business continuity plan addresses: data back up and recovery; contact information for our clearing firms; mission critical systems; financial and operational assessments; alternate communications with clients, employees and regulators; alternate physical locations of employees; contacts at critical suppliers and banks; and regulatory reporting. All transaction data captured on our computer systems is replicated and stored off-site. We do not hold client funds or securities.

Our clearing firms, Refco Securities LLC, Pershing, A BNY Securities Group Company, the Government Securities Division of the Fixed Income Clearing Corporation and the Bank of New York each retains on-site and also backs up our important records in geographically separate areas. Additionally, Maxcor backs up our own internal systems in a geographically separate location. While every emergency situation poses unique problems based on external factors, such as time of day and the scope and severity of the disruption, our clearing firms have represented that their objective is to restore their own operations with a resumption time ranging from real time to the next day.

Varying Disruptions – Significant business disruptions can vary in their scope and severity, such as affecting only our firm, a single building housing our firm offices, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In the event of a disruption to only our firm or a building housing our firm offices, we will transfer our key personnel to an alternate site when needed and seek to recover and resume business, if possible, by the next day. In the event of a disruption affecting our business district, city, or region, we will transfer our key personnel to an alternate site outside of the affected area, and seek to recover and resume business, if possible, within two business days. These recovery objectives may be negatively affected by the unavailability of external resources and circumstances beyond our control. For any significant business disruption we plan to safeguard our employees and property, make a financial and operational assessment, protect the firm’s books and records and, where it is feasible, continue in business. Our clients may be notified through our web site http://www.maxf.com, if available, or our emergency numbers, any of the following 646-346-7000 (our New York office), 203-969-7500 (our Connecticut branch office) or 011 44 207 204 3000 (our London branch office) or other available alternate means.

For more information – If you have questions about our business continuity planning, you can contact our Compliance Department at 646-346-7000.