Summary of TRADESTATION GROUP INC

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

(a)

On March 6, 2009, TradeStation Group, Inc. (the "Company") orally notified The Nasdaq Stock Market ("NASDAQ"), that, as a result of the retirement on March 6, 2009 of Stephen C. Richards, one of the Company's independent directors, the Company was no longer in compliance with NASDAQ Rule 4350(c), which requires that a majority of the Board of Directors be comprised of independent directors (the Company's Board of Directors is now comprised of 3 independent directors and 3 directors who do not qualify as independent, as defined by the Securities and Exchange Commission and NASDAQ listing standards). The Company received a deficiency letter from NASDAQ on March 11, 2009 acknowledging this non-compliance.

Under NASDAQ Rule 4350(c), the Company has 180 days to cure its non-compliance and the Company intends to cure this issue at or before the annual meeting of shareholders of the Company currently scheduled to be held on June 2, 2009 (the "Annual Meeting"). At a meeting held on March 9, 2009, the Board of Directors, based on the recommendations of the Nominating Committee of the Board of Directors, authorized a reduction, to be effective as of the date of the Annual Meeting, of the number of members comprising the Board of Directors from seven members to five members, selected the four remaining incumbent directors (Denise Dickins, Michael W. Fipps, Salomon Sredni and Charles F. Wright, all of whom (other than Salomon Sredni, the Company's Chief Executive Officer) qualify as independent, as defined by the Securities and Exchange Commission and NASDAQ listing standards) as four of the five nominees for election as directors at the Annual Meeting, and authorized the Nominating Committee to continue its efforts to identify and evaluate candidates to recommend to the Board to be the Board's fifth nominee for election as a director. The Company intends to propose all five Board nominees for director in the Company's Proxy Statement to be distributed in connection with the Annual Meeting.

In accordance with NASDAQ Rule 4803(a), on March 13, 2009, the Company issued a press release disclosing the receipt of the deficiency letter from NASDAQ. A copy of the press release is attached as Exhibit 99.1 to this report.