Beverly Gordon - Page 9

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               During 1986, Mr. Gordon used Wagner Stott Clearing Corpora-            
          tion (Wagner Stott) as one of his clearing organizations.  A                
          clearing organization like Wagner Stott provides financing to,              
          and sets margin requirements for, its clearing members.  All                
          standardized security options are issued and guaranteed by                  
          clearing organizations like Wagner Stott that are regulated by              
          the SEC.  During 1986, Wagner Stott provided Mr. Gordon with                
          financing to trade during that year.                                        
               Wagner Stott issued statements (Wagner Stott statements) to            
          Mr. Gordon during 1986 that reflected, inter alia, his trading              
          activity as an options market maker.  The Wagner Stott statements           
          for the periods March 27, 1986, through May 30, 1986 (April-May             
          1986 Wagner Stott statements) and October 31, 1986, through                 
          November 28, 1986 (November 1986 Wagner Stott statement)7 showed            
          Mr. Gordon's trading activities as an options market maker in               
          various stock options and stock index options.  The April-May               
          1986 Wagner Stott statements also showed Mr. Gordon's opening and           
          closing balances with respect to stocks of the following corpora-           
          tions:  American Can, AMR, Cetus, Digital Equipment, Gould, Home            
          Shopping Network, J.C. Penney, Merrill Lynch, Motorola, National            
          Distillers & Chem, and Union Carbide.  The November 1986 Wagner             
          Stott statement did not show opening or closing balances with               
          respect to any stocks.                                                      

          7  The Wagner Stott statements identified above are the only                
          Wagner Stott statements that are part of the record.                        

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