Lek Securities Challenges NASD Regulation.

Litigation Seeks to Abolish Burdensome Rules as Broker-Dealer Industry Fights for Survival in Era of Regulation

Industry Veteran Samuel Lek Intends to Champion Regulatory Reform Through Pursuit of a Position on the NASD National Adjudicatory Council

NEW YORK -- Lek Securities, a leading institutional direct access broker-dealer, will challenge National Association of Securities Dealers (NASD) charges that the broker-dealer did not submit trade information required for compliance with the Order Audit Trail System (OATS) in a trial scheduled to begin today, October 25, 2006. In a move that could lead to significant reform in brokerage industry regulation, Lek is challenging the NASD charges on the basis that OATS is illegal and improperly structured.

Lek is challenging the enforceability of OATS given the regulation's failure to comply with the Paperwork Reduction Act (PRA), which was deliberately amended in 1995 to ensure that federally sponsored programs such as OATS are subjected to a cost-benefit analysis to determine whether the regulations result in a net public benefit. Lek will argue that the requirements of OATS, which track information on date, time, size and other information for every trade, not only present an incredible cost and time burden, but are redundant with other regulations tracking this same information, thereby resulting in little, if any, public benefit.

"There is scant evidence that the enormous cost and burden of OATS compliance and the unwieldy amount of data it generates protects the public," said Samuel Lek, Chief Executive Officer of Lek Securities. "OATS functions as an unjustifiable hidden tax on the business of NASD member firms, hitting small firms the hardest, with repercussions that trickle down as far as individual investors. We are confident in the strength of our case and believe the NASD's much-needed reform will result in open, safe and efficient markets."

Beyond this current litigation, Mr. Lek is also seeking to impact change in the design of NASD regulation by joining the organization. He is running for a seat on the NASD's National Adjudicatory Council, New York City District 10, under the sponsorship of the Financial Industry Association (FIA). FIA endorses candidates that represent the views of the majority of the Broker/Dealers, Registered Representatives, and Registered Investment Advisors.

About Lek Securities

Lek Securities Corporation ("LSC") is a Delaware corporation founded in 1990. The firm is registered with the United States Securities and Exchange Commission as a Broker Dealer. Lek Securities is an institutional direct access broker-dealer that focuses on achieving the best trade execution for its customers. With execution quality as a cornerstone of the firm's philosophy, Lek is a strong advocate for open, competitive markets, which leads to improved trade executions for investors.