Southwest Securities Expands ABS/CMBS and Mortgage Trading Desks

                DALLAS, July 21, 2009 — Southwest Securities, Inc. has added two experienced traders to its expanding taxable fixed income trading desks.

                Derek Rose has joined Southwest Securities’ Chicago office as a senior vice president, asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) trading, and Steve Palmer has joined the firm’s New York office as senior vice president, mortgage trading.

                “Derek and Steve are the type of experienced professionals we are adding to our trading staff to support additional sales volume,” said Dan Leland, Southwest Securities executive vice president and head of Fixed Income.

                “We have been active participants in the taxable fixed income market for many years,” Mr. Leland continued, “and we are finding there are opportunities now to grow because of the experienced talent available.”

                Mr. Rose served most recently as ABS/CMBS trader and director of securitization syndicate at RBC Capital Markets in New York.  He also managed ABS trading at ABN Amro, Sutro and Nesbitt Burns.  Mr. Rose is a 1986 graduate of DePaul University where he earned a B.A. degree in economics.  He will work with vice presidents and traders John Kemnitzer and Beth Stobbs to expand Southwest Securities’ ABS/CMBS trading and distribution capabilities.

                Mr. Palmer, who most recently was an executive director with J.P. Morgan trading non-agency fixed rate securities and unsecuritized residential loans, worked at Chemical Securities, Smith Barney, HSBC Securities and FTN Financial prior to joining Southwest Securities.  He earned a B.S. degree in economics from the University of Pennsylvania in 1992.  Mr. Palmer will be located in the New York office and work with Jeff Bohnsack, senior vice president and trader, and Suraj Jagannathan, trading assistant, in the Dallas office to expand the firm’s mortgage trading effort.

                Southwest Securities, Inc., a member of the New York Stock Exchange and other major exchanges, provides securities brokerage, investment banking and securities clearing services to a broad range of individual, corporate, public and industry clients. The firm is a wholly owned subsidiary of SWS Group, Inc. (NYSE: SWS), a financial services holding company whose stock is listed and traded on the New York Stock Exchange under the symbol, SWS. 

# # # 

CONTACT:           Jim Bowman, vice president - Corporate Communications, (214) 859-9335

                                jbowman@swst.com