0000950136-04-002474 8-K 3 20040805 12 7 20040806 ESPEED INC 0001094831 7389 134063515 DE 1231 8-K 34 000-28191 04956120 135 E. 57TH STREET 135 E. 57TH STREET NEW YORK NY 10022 2129385000 135 E. 57TH STREET 135 E. 57TH STREET NEW YORK NY 10022 8-K 1 file001.htm FORM 8-K U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): August 5, 2004 [[Image Removed]] [[Image Removed]] [[Image Removed]][[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] eSpeed, Inc. (Exact Name of Registrant as Specified in Its Charter) [[Image Removed]] Delaware [[Image Removed]] 0-28191 [[Image Removed]] 13-4063515 (State or Other (Commission (I.R.S. Employer Jurisdiction of [[Image Removed]] File [[Image Removed]] Identification Incorporation) Number) No.) [[Image Removed]] 135 East 57th Street, New York, New York [[Image Removed]] 10022 (Address of Principal Executive Offices) [[Image Removed]] (Zip Code) [[Image Removed]] (212) 938-5000 (Registrant's Telephone Number, Including Area Code) [[Image Removed]] Not applicable (Former Name or Address, if Changed Since Last Report) [[Image Removed]] -------------------------------------------------------------------------------- ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. See Exhibit Index attached to this Current Report on Form 8-K. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 5, 2004, eSpeed, Inc. (the "Registrant") issued a press release announcing its preliminary operating statistics for the quarter ended June 30, 2004. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. In accordance with the procedural guidance in SEC Release No. 33-8216, the information in this Current Report on Form 8-K and the Exhibit attached to this Current Report on Form 8-K are being furnished under Item 12 of Form 8-K. The information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing. In the press release, the Registrant uses non-GAAP financial measures of revenues, income before income tax provision, net income and earnings per share to supplement its consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, and to better reflect its quarter-over-quarter and comparative second quarter operating performance. The Registrant also provides a computation of free cash flows. These non-GAAP financial measures do not replace the presentation of GAAP financial results but are provided to enhance overall understanding of the Registrant's current financial performance and prospects for the future. Specifically, the Registrant's management believes that the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to its financial condition and results from operations. In addition, management uses these measures for reviewing the Registrant's financial results and evaluating its financial performance. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. [[Image Removed]] eSpeed, Inc. [[Image Removed]] [[Image Removed]] Date: August 5, 2004 By: /s/ Stephen M. Merkel Stephen M. Merkel Executive Vice President General Counsel and Secretary -------------------------------------------------------------------------------- EXHIBIT INDEX [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Exhibit [[Image Removed]] 99.1 Press release of eSpeed, Inc. dated August 5, 2004 [[Image Removed]] containing preliminary operating statistics for the quarter ended June 30, 2004. [[Image Removed]] -------------------------------------------------------------------------------- EX-99.1 3 file002.htm PRESS RELEASE DATED AUGUST 5, 2004 EXHIBIT 99.1 eSpeed Reports Second Quarter 2004 Results Company Provides Guidance for Third Quarter and Full Year 2004 NEW YORK, NY(BUSINESS WIRE)August 5, 2004eSpeed, Inc. (NASDAQ:ESPD), the leading developer of electronic trading technology, today reported results for the second quarter ended June 30, 2004. Earnings eSpeed reported net income of $9.0 million, or $0.16 per diluted share, for the second quarter 2004 on a Generally Accepted Accounting Principles (GAAP) basis. To reflect earnings generated from the Company's operations, eSpeed also reports operating income. For the same period, the Company reported fully taxed operating income of $9.1 million, or $0.16 per diluted share. The difference between fully taxed operating income and GAAP net income was a less than $0.1 million non-cash charge for business partner securities. For comparative purposes, eSpeed reported operating income of $8.3 million, or $0.15 per diluted share, in the second quarter of 2003. Revenues eSpeed's total revenues for the second quarter 2004 were $42.8 million, compared to total revenues of $39.1 million for the second quarter 2003. Second quarter 2004 fully electronic revenues were $29.2 million compared to $27.5 million in the second quarter 2003. Total revenues from Software Solutions in the second quarter 2004 were $7.6 million versus $6.1 million in the second quarter 2003. Second quarter 2004 pre-tax operating margins were 35.0 percent versus 35.5 percent in the second quarter 2003. Volume & Transactions Fully electronic volume was $8.0 trillion for the second quarter 2004, compared to $7.8 trillion reported by the Company in the second quarter 2003. eSpeed's total electronic volume, including fully electronic and voice-assisted transactions, for the second quarter 2004 was $11.1 trillion, up from $10.4 trillion in the second quarter 2003. Average daily Federal Reserve US Treasury volume was $522 billion for the second quarter 2004. eSpeed had expected average daily Federal Reserve US Treasury volume to be between $515 and $520 billion for this period. Fully electronic notional volume for new products, which eSpeed defines as mortgage-backed securities, foreign exchange, interest rate swaps, futures and repos, was $199 billion in the second quarter 2004, compared to $133 billion in the first quarter 2004. Volume for the eSpeed Equities direct access product was 102 million shares in the second quarter 2004, up from 85 million shares in the first quarter 2004. Free Cash Flow & Cash The Company generated free cash flow of $4.8 million for the second quarter 2004. Excluding related party receivables and payables, free cash flow for the second quarter of 2004 was $6.0 million. As of June 30, 2004, eSpeed's cash and cash equivalents was approximately $240 million. From July 2, 2004, to date, eSpeed repurchased approximately 1.6 million shares of the Company's stock for a total of $19.5 million in cash, at an average price of $12.18 per share. Today, eSpeed's Board of Directors announced a new share repurchase authorization of $100 million, to replace the remaining $20.5 million authorization from the prior plan. Outlook For the third quarter 2004, eSpeed expects operating earnings to be in the range of $0.09 to $0.10 per share diluted and after-tax. This guidance is based on the Company's expectations that the average daily Federal Reserve US Treasury volume will be between $445 and $465 billion for the third quarter 2004. -------------------------------------------------------------------------------- eSpeed expects to generate operating revenues in excess of $163 million and expects its pre-tax operating margins to be in excess of 30 percent for the full year 2004. Operating earnings after tax for 2004 are expected to be in a range of $0.53 to $0.55 per diluted share. This guidance is based on the Company's expectations that average daily Federal Reserve US Treasury volume will be between $480 and $490 billion for the full year 2004. Howard W. Lutnick, Chairman and CEO of eSpeed, commented, "For the remainder of 2004, eSpeed will focus on growing volume and revenue in our core business, adding clients in new products by aggressively investing in our sales efforts, and rolling out additional proprietary software enhancements. We remain confident and committed to our long term strategy and the growth of our Company in 2005." Non-GAAP Financial Measures To supplement eSpeed's consolidated financial statements presented in accordance with GAAP and to better reflect the Company's quarter-over-quarter and comparative year-over-year operating performance, eSpeed uses non-GAAP financial measures of revenues, net income and earnings per share, which are adjusted to exclude certain non-operating expenses and gains. In addition, the Company provides a computation of free cash flows. These non-GAAP financial measurements do not replace the presentation of eSpeed's GAAP financial results but are provided to improve overall understanding of the Company's current financial performance and its prospects for the future. Specifically, eSpeed believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to the Company's financial condition and results from operations. In addition, eSpeed's management uses these measures for reviewing the Company's financial results and evaluating eSpeed's financial performance. In the second quarter 2004, the difference between GAAP net income and non-GAAP net operating income was less than $0.1 million. About eSpeed, Inc. eSpeed, Inc. (NASDAQ: ESPD), is the leader in developing and deploying electronic marketplaces and related trading technology that offers traders access to the most liquid, efficient and neutral financial markets in the world. eSpeed operates multiple buyer, multiple seller real-time electronic marketplaces for the global capital markets, including the world's largest government bond markets and other fixed income and equities marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial and non-financial products over eSpeed's global private network or via the Internet. eSpeed's neutral platform, reliable network, straight-through processing and superior products make it the trusted source for electronic trading at the world's largest fixed income and foreign exchange trading firms and major exchanges. To learn more, please visit www.espeed.com. Statements contained in this Press Release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: the effects of the attacks on the World Trade Center, market volatility, the limited operating history of eSpeed, Inc., and its ability to enter into marketing and strategic alliances, to effectively manage its growth, to expand the use of its electronic systems and to induce clients to use its marketplaces and services, and other factors that are discussed in eSpeed's Annual Report on Form 10-K, filed with the Securities and Exchange Commission. Contacts: Investors: Maureen Murphy 212.610.2430 Media: Tom Ryan 212.610.2425 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands, except share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] June 30, 2004 [[Image Removed]] December 31, 2003 [[Image Removed]] (Unaudited) [[Image Removed]] Assets [[Image Removed]] [[Image Removed]] Cash and cash equivalents [[Image Removed]] $ 34,115 [[Image Removed]] $ 55,318 Reverse repurchase agreements with related parties [[Image Removed]] 205,483 [[Image Removed]] 173,182 Total cash and cash equivalents [[Image Removed]] 239,598 [[Image Removed]] 228,500 Fixed assets, net [[Image Removed]] 44,012 [[Image Removed]] 34,467 Investments [[Image Removed]] 12,355 [[Image Removed]] 11,449 Intangible assets, net [[Image Removed]] 18,821 [[Image Removed]] 18,927 Receivable from related parties [[Image Removed]] 1,125 [[Image Removed]] 1,518 Other assets [[Image Removed]] 2,687 [[Image Removed]] 2,707 Total assets [[Image Removed]] $ 318,598 [[Image Removed]] $ 297,568 [[Image Removed]] [[Image Removed]] Liabilities and Stockholders' Equity [[Image Removed]] [[Image Removed]] Liabilities: [[Image Removed]] [[Image Removed]] Payable to related parties [[Image Removed]] $ 3,557 [[Image Removed]] $ 6,323 Accounts payable and accrued liabilities [[Image Removed]] 20,282 [[Image Removed]] 19,560 Total liabilities [[Image Removed]] 23,839 [[Image Removed]] 25,883 [[Image Removed]] [[Image Removed]] Stockholders' Equity: [[Image Removed]] [[Image Removed]] Preferred stock, par value $0.01 per share; 50,000,000 shares authorized, 600 and 8,000,600 [[Image Removed]] [[Image Removed]] shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively 80 Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 32,471,603 and [[Image Removed]] [[Image Removed]] 30,953,867 shares issued at June 30, 2004 and December 31, 2003, respectively 324 310 Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 23,889,270 and [[Image Removed]] [[Image Removed]] 25,139,270 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively 239 251 Additional paid-in capital [[Image Removed]] 290,420 [[Image Removed]] 287,593 Unamortized expense of business partner and [[Image Removed]] [[Image Removed]] non-employee securities (606 ) (1,192 ) Treasury stock, at cost: 186,399 shares of Class A common [[Image Removed]] [[Image Removed]] June 30, 2004 and December 31, 2003, respectively (2,094 ) (2,094 ) Retained earnings (accumulated deficit) [[Image Removed]] 6,476 [[Image Removed]] (13,263 ) Total stockholders' equity [[Image Removed]] 294,759 [[Image Removed]] 271,685 Total liabilities and stockholders' equity [[Image Removed]] $ 318,598 [[Image Removed]] $ 297,568 [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited) (in thousands, except per share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended June 30, [[Image Removed]] Six Months Ended June 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Transaction revenues with related parties [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully electronic transactions [[Image Removed]] $ 29,154 [[Image Removed]] $ 27,538 [[Image Removed]] $ 59,681 [[Image Removed]] $ 50,048 Voice-assisted brokerage transactions [[Image Removed]] 5,190 [[Image Removed]] 4,645 [[Image Removed]] 11,216 [[Image Removed]] 9,806 Screen-assisted open outcry transactions [[Image Removed]] 158 [[Image Removed]] 243 [[Image Removed]] 389 [[Image Removed]] 292 Total transaction revenues with related parties [[Image Removed]] 34,502 [[Image Removed]] 32,426 [[Image Removed]] 71,286 [[Image Removed]] 60,146 Software Solutions fees from related parties [[Image Removed]] 4,475 [[Image Removed]] 3,881 [[Image Removed]] 8,587 [[Image Removed]] 7,530 Software Solutions and licensing fees from unrelated parties [[Image Removed]] 3,107 [[Image Removed]] 2,209 [[Image Removed]] 6,105 [[Image Removed]] 4,341 Interest income [[Image Removed]] 761 [[Image Removed]] 563 [[Image Removed]] 1,505 [[Image Removed]] 1,105 Total revenues [[Image Removed]] 42,845 [[Image Removed]] 39,079 [[Image Removed]] 87,483 [[Image Removed]] 73,122 Expenses: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Compensation and employee benefits [[Image Removed]] 9,768 [[Image Removed]] 9,239 [[Image Removed]] 19,083 [[Image Removed]] 18,083 Occupancy and equipment [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Amortization of software development costs [[Image Removed]] 2,396 [[Image Removed]] 1,832 [[Image Removed]] 4,651 [[Image Removed]] 3,510 Other occupancy and equipment [[Image Removed]] 6,073 [[Image Removed]] 5,739 [[Image Removed]] 12,300 [[Image Removed]] 11,238 Professional and consulting fees [[Image Removed]] 865 [[Image Removed]] 863 [[Image Removed]] 1,798 [[Image Removed]] 1,974 Communications and client networks [[Image Removed]] 1,595 [[Image Removed]] 1,714 [[Image Removed]] 3,208 [[Image Removed]] 3,309 Marketing [[Image Removed]] 379 [[Image Removed]] 408 [[Image Removed]] 765 [[Image Removed]] 742 Administrative fees to related parties [[Image Removed]] 3,212 [[Image Removed]] 2,590 [[Image Removed]] 6,169 [[Image Removed]] 5,168 Amortization of business partner and non-employee securities [[Image Removed]] 142 [[Image Removed]] 362 [[Image Removed]] 586 [[Image Removed]] 1,067 Other [[Image Removed]] 3,569 [[Image Removed]] 2,830 [[Image Removed]] 6,516 [[Image Removed]] 5,149 Total expenses [[Image Removed]] 27,999 [[Image Removed]] 25,577 [[Image Removed]] 55,076 [[Image Removed]] 50,240 Income before income tax provision [[Image Removed]] 14,846 [[Image Removed]] 13,502 [[Image Removed]] 32,407 [[Image Removed]] 22,882 Income tax provision [[Image Removed]] 5,805 [[Image Removed]] 5,400 [[Image Removed]] 12,671 [[Image Removed]] 5,305 Net income [[Image Removed]] $ 9,041 [[Image Removed]] $ 8,102 [[Image Removed]] $ 19,736 [[Image Removed]] $ 17,577 Per share data: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Basic earnings per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.15 [[Image Removed]] $ 0.35 [[Image Removed]] $ 0.32 Diluted earnings per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.14 [[Image Removed]] $ 0.34 [[Image Removed]] $ 0.31 Basic weighted average shares of common stock outstanding [[Image Removed]] 56,153 [[Image Removed]] 55,056 [[Image Removed]] 56,114 [[Image Removed]] 55,076 Diluted weighted average shares of common stock outstanding [[Image Removed]] 57,958 [[Image Removed]] 56,447 [[Image Removed]] 58,161 [[Image Removed]] 56,819 [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended June 30, [[Image Removed]] Six Months Ended June 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Transaction revenues with related parties [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully electronic transactions [[Image Removed]] $ 29,154 [[Image Removed]] $ 27,538 [[Image Removed]] $ 59,681 [[Image Removed]] $ 50,048 Voice-assisted brokerage transactions [[Image Removed]] 5,190 [[Image Removed]] 4,645 [[Image Removed]] 11,216 [[Image Removed]] 9,806 Screen-assisted open outcry transactions [[Image Removed]] 158 [[Image Removed]] 243 [[Image Removed]] 389 [[Image Removed]] 292 Total transaction revenues with related parties [[Image Removed]] 34,502 [[Image Removed]] 32,426 [[Image Removed]] 71,286 [[Image Removed]] 60,146 Software Solutions fees from related parties [[Image Removed]] 4,475 [[Image Removed]] 3,881 [[Image Removed]] 8,587 [[Image Removed]] 7,530 Software Solutions and licensing fees from unrelated [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] parties 3,107 2,209 6,105 4,341 Interest income [[Image Removed]] 761 [[Image Removed]] 563 [[Image Removed]] 1,505 [[Image Removed]] 1,105 Total revenues [[Image Removed]] 42,845 [[Image Removed]] 39,079 [[Image Removed]] 87,483 [[Image Removed]] 73,122 Expenses: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Compensation and employee benefits [[Image Removed]] 9,768 [[Image Removed]] 9,239 [[Image Removed]] 19,083 [[Image Removed]] 18,083 Occupancy and equipment [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Amortization of software development costs [[Image Removed]] 2,396 [[Image Removed]] 1,832 [[Image Removed]] 4,651 [[Image Removed]] 3,510 Other occupancy and equipment [[Image Removed]] 6,073 [[Image Removed]] 5,739 [[Image Removed]] 12,300 [[Image Removed]] 11,238 Professional and consulting fees [[Image Removed]] 865 [[Image Removed]] 863 [[Image Removed]] 1,798 [[Image Removed]] 1,974 Communications and client networks [[Image Removed]] 1,595 [[Image Removed]] 1,714 [[Image Removed]] 3,208 [[Image Removed]] 3,309 Marketing [[Image Removed]] 379 [[Image Removed]] 408 [[Image Removed]] 765 [[Image Removed]] 742 Administrative fees to related parties [[Image Removed]] 3,212 [[Image Removed]] 2,590 [[Image Removed]] 6,169 [[Image Removed]] 5,168 Other [[Image Removed]] 3,569 [[Image Removed]] 2,830 [[Image Removed]] 6,516 [[Image Removed]] 5,149 Total operating expenses [[Image Removed]] 27,857 [[Image Removed]] 25,215 [[Image Removed]] 54,490 [[Image Removed]] 49,173 Pre-tax operating income [[Image Removed]] 14,988 [[Image Removed]] 13,864 [[Image Removed]] 32,993 [[Image Removed]] 23,949 Income tax provision [[Image Removed]] 5,860 [[Image Removed]] 5,545 [[Image Removed]] 12,899 [[Image Removed]] 5,450 Net operating income [[Image Removed]] 9,128 [[Image Removed]] 8,319 [[Image Removed]] 20,094 [[Image Removed]] 18,499 Non-operating loss: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Amortization of business partner and non-employee [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] securities, net of tax (87 ) (217 ) (358 ) (922 ) Total non-operating loss [[Image Removed]] (87 ) [[Image Removed]] (217 ) [[Image Removed]] (358 ) [[Image Removed]] (922 ) GAAP net income [[Image Removed]] $ 9,041 [[Image Removed]] $ 8,102 [[Image Removed]] $ 19,736 [[Image Removed]] $ 17,577 Per share data: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Basic pre-tax operating income per share [[Image Removed]] $ 0.27 [[Image Removed]] $ 0.25 [[Image Removed]] $ 0.59 [[Image Removed]] $ 0.43 Basic tax provision per share [[Image Removed]] $ (0.10 ) [[Image Removed]] $ (0.10 ) [[Image Removed]] $ (0.23 ) [[Image Removed]] $ (0.10 ) Basic net operating income per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.15 [[Image Removed]] $ 0.36 [[Image Removed]] $ 0.34 Basic non-operating loss per share [[Image Removed]] $ (0.00 ) [[Image Removed]] $ (0.00 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.02 ) Basic GAAP earnings per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.15 [[Image Removed]] $ 0.35 [[Image Removed]] $ 0.32 Diluted pre-tax operating income per share [[Image Removed]] $ 0.26 [[Image Removed]] $ 0.25 [[Image Removed]] $ 0.57 [[Image Removed]] $ 0.42 Diluted tax provision per share [[Image Removed]] $ (0.10 ) [[Image Removed]] $ (0.10 ) [[Image Removed]] $ (0.22 ) [[Image Removed]] $ (0.10 ) Diluted net operating income per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.15 [[Image Removed]] $ 0.35 [[Image Removed]] $ 0.33 Diluted non-operating loss per share [[Image Removed]] $ (0.00 ) [[Image Removed]] $ (0.00 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.02 ) Diluted GAAP earnings per share [[Image Removed]] $ 0.16 [[Image Removed]] $ 0.14 [[Image Removed]] $ 0.34 [[Image Removed]] $ 0.31 Basic weighted average shares of common stock [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] outstanding 56,153 55,056 56,114 55,076 Diluted weighted average shares of common stock [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] outstanding 57,958 56,447 58,161 56,819 Additional data: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Pre-tax operating margin [[Image Removed]] 35.0 % [[Image Removed]] 35.5 % [[Image Removed]] 37.7 % [[Image Removed]] 32.8 % [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. & Subsidiaries COMPUTATION OF CONSOLIDATED FREE CASH FLOWS (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Six Months Ended June 30, June 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Pre-tax operating income [[Image Removed]] $ 14,988 [[Image Removed]] $ 13,864 [[Image Removed]] $ 32,993 [[Image Removed]] $ 23,949 Depreciation and amortization [[Image Removed]] 5,755 [[Image Removed]] 4,477 [[Image Removed]] 11,131 [[Image Removed]] 8,440 Other non-cash items [[Image Removed]] 69 [[Image Removed]] 36 [[Image Removed]] 70 [[Image Removed]] 169 Pre-tax operating income adjusted for depreciation, [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] amortization and other 20,812 18,377 44,194 32,558 Income tax provision on operating income [[Image Removed]] (5,860 ) [[Image Removed]] (5,545 ) [[Image Removed]] (12,899 ) [[Image Removed]] (5,450 ) Income tax benefit on non-operating loss [[Image Removed]] 55 [[Image Removed]] 145 [[Image Removed]] 228 [[Image Removed]] 145 Deferred income tax expense [[Image Removed]] 545 [[Image Removed]] 2,553 [[Image Removed]] 608 [[Image Removed]] 2,553 Tax benefit from stock option and warrant exercises [[Image Removed]] 144 [[Image Removed]] 1,332 [[Image Removed]] 935 [[Image Removed]] 1,332 Income taxes paid [[Image Removed]] 9,585 [[Image Removed]] 63 [[Image Removed]] 11,186 [[Image Removed]] 63 Decrease (increase) in current income tax payable [[Image Removed]] 4,469 [[Image Removed]] (1,452 ) [[Image Removed]] 58 [[Image Removed]] (1,357 ) Changes in related party receivable and payable, net [[Image Removed]] 1,124 [[Image Removed]] 9,686 [[Image Removed]] (2,373 ) [[Image Removed]] (11,254 ) Changes in other operating assets and liabilities, [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] net (11,868 ) 3,148 (12,547 ) (189 ) Net cash provided by operating activities [[Image Removed]] 14,537 [[Image Removed]] 29,759 [[Image Removed]] 29,332 [[Image Removed]] 19,758 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Purchase of fixed assets [[Image Removed]] (2,104 ) [[Image Removed]] (1,266 ) [[Image Removed]] (9,330 ) [[Image Removed]] (1,902 ) Sale of fixed assets [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] 2,752 Capitalization of software development costs [[Image Removed]] (4,551 ) [[Image Removed]] (3,209 ) [[Image Removed]] (8,447 ) [[Image Removed]] (6,413 ) Capitalization of patent defense and registration [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] costs (1,923 ) (2,367 ) (2,800 ) (2,653 ) Purchase of investment [[Image Removed]] [[Image Removed]] [[Image Removed]] (360 ) [[Image Removed]] Free cash flows [[Image Removed]] 5,959 [[Image Removed]] 22,917 [[Image Removed]] 8,395 [[Image Removed]] 11,542 Related party receivable and payable, net [[Image Removed]] (1,124 ) [[Image Removed]] (9,686 ) [[Image Removed]] 2,373 [[Image Removed]] 11,254 Free cash flows, net of related party activity [[Image Removed]] $ 4,835 [[Image Removed]] $ 13,231 [[Image Removed]] $ 10,768 [[Image Removed]] $ 22,796 [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. & Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Six Months Ended June 30, June 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Cash flows from operating activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Net income [[Image Removed]] $ 9,041 [[Image Removed]] $ 8,102 [[Image Removed]] $ 19,736 [[Image Removed]] $ 17,577 Adjustments to reconcile net income to net cash [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] provided by operating activities: Depreciation and amortization [[Image Removed]] 5,755 [[Image Removed]] 4,477 [[Image Removed]] 11,131 [[Image Removed]] 8,440 Amortization of business partner and non-employee [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] securities 142 362 586 1,067 Equity in net loss of unconsolidated investments [[Image Removed]] 39 [[Image Removed]] 6 [[Image Removed]] 10 [[Image Removed]] 39 Deferred income tax expense [[Image Removed]] 545 [[Image Removed]] 2,553 [[Image Removed]] 608 [[Image Removed]] 2,553 Tax benefit from stock option and warrant exercises [[Image Removed]] 144 [[Image Removed]] 1,332 [[Image Removed]] 935 [[Image Removed]] 1,332 Issuance of securities under employee benefit plan [[Image Removed]] 30 [[Image Removed]] 30 [[Image Removed]] 60 [[Image Removed]] 130 [[Image Removed]] Changes in operating assets and liabilities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Receivable from related parties [[Image Removed]] (369 ) [[Image Removed]] 9,261 [[Image Removed]] 393 [[Image Removed]] 4,450 Other assets [[Image Removed]] (29 ) [[Image Removed]] (542 ) [[Image Removed]] (1,479 ) [[Image Removed]] (1,721 ) Payable to related parties [[Image Removed]] 1,493 [[Image Removed]] 425 [[Image Removed]] (2,766 ) [[Image Removed]] (15,704 ) Accounts payable and accrued expenses [[Image Removed]] (2,254 ) [[Image Removed]] 3,753 [[Image Removed]] 118 [[Image Removed]] 1,595 Net cash provided by operating activities [[Image Removed]] 14,537 [[Image Removed]] 29,759 [[Image Removed]] 29,332 [[Image Removed]] 19,758 [[Image Removed]] Cash flows from investing activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Purchase of fixed assets [[Image Removed]] (2,104 ) [[Image Removed]] (1,266 ) [[Image Removed]] (9,330 ) [[Image Removed]] (1,902 ) Sale of premises and equipment [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] 2,752 Capitalization of software development costs [[Image Removed]] (4,551 ) [[Image Removed]] (3,209 ) [[Image Removed]] (8,447 ) [[Image Removed]] (6,413 ) Capitalization of patent defense and registration [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] costs (1,923 ) (2,367 ) (2,800 ) (2,653 ) Purchase of investment [[Image Removed]] [[Image Removed]] [[Image Removed]] (360 ) [[Image Removed]] Net cash used in investing activities [[Image Removed]] (8,578 ) [[Image Removed]] (6,842 ) [[Image Removed]] (20,937 ) [[Image Removed]] (8,216 ) [[Image Removed]] Cash flows from financing activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Repurchase of Class A common stock [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] (1,872 ) Proceeds from exercises of stock options and warrants [[Image Removed]] 258 [[Image Removed]] 616 [[Image Removed]] 1,753 [[Image Removed]] 979 Receivable from broker on stock option exercises [[Image Removed]] 393 [[Image Removed]] [[Image Removed]] 950 [[Image Removed]] 0 Net cash provided by (used in) financing activities [[Image Removed]] 651 [[Image Removed]] 616 [[Image Removed]] 2,703 [[Image Removed]] (893 ) Net increase in cash and cash equivalents [[Image Removed]] 6,610 [[Image Removed]] 23,533 [[Image Removed]] 11,098 [[Image Removed]] 10,649 Cash and cash equivalents at beginning of period [[Image Removed]] 232,988 [[Image Removed]] 175,115 [[Image Removed]] 228,500 [[Image Removed]] 187,999 Cash and cash equivalents at end of period [[Image Removed]] $ 239,598 [[Image Removed]] $ 198,648 [[Image Removed]] $ 239,598 [[Image Removed]] $ 198,648 [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Six Months Ended June 30, June 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues [[Image Removed]] $ 42,845 [[Image Removed]] $ 39,079 [[Image Removed]] $ 87,483 [[Image Removed]] $ 73,122 GAAP revenues [[Image Removed]] $ 42,845 [[Image Removed]] $ 39,079 [[Image Removed]] $ 87,483 [[Image Removed]] $ 73,122 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Operating expenses [[Image Removed]] $ 27,857 [[Image Removed]] $ 25,215 [[Image Removed]] $ 54,490 [[Image Removed]] $ 49,173 Amortization of business partner and [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] non-employee securities [a] 142 362 586 1,067 GAAP expenses [[Image Removed]] $ 27,999 [[Image Removed]] $ 25,577 [[Image Removed]] $ 55,076 [[Image Removed]] $ 50,240 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Pre-tax operating income [[Image Removed]] $ 14,988 [[Image Removed]] $ 13,864 [[Image Removed]] $ 32,993 [[Image Removed]] $ 23,949 Sum of reconciling items = - [a] [[Image Removed]] (142 ) [[Image Removed]] (362 ) [[Image Removed]] (586 ) [[Image Removed]] (1,067 ) GAAP income before income tax provision [[Image Removed]] $ 14,846 [[Image Removed]] $ 13,502 [[Image Removed]] $ 32,407 [[Image Removed]] $ 22,882 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Income tax provision [[Image Removed]] $ 5,860 [[Image Removed]] $ 5,545 [[Image Removed]] $ 12,899 [[Image Removed]] $ 5,450 Income tax benefit on non-operating loss [b] [[Image Removed]] (55 ) [[Image Removed]] (145 ) [[Image Removed]] (228 ) [[Image Removed]] (145 ) GAAP income tax provision [[Image Removed]] $ 5,805 [[Image Removed]] $ 5,400 [[Image Removed]] $ 12,671 [[Image Removed]] $ 5,305 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Net operating income [[Image Removed]] $ 9,128 [[Image Removed]] $ 8,319 [[Image Removed]] $ 20,094 [[Image Removed]] $ 18,499 Sum of reconciling items = [a] + [b] [[Image Removed]] (87 ) [[Image Removed]] (217 ) [[Image Removed]] (358 ) [[Image Removed]] (922 ) GAAP net income [[Image Removed]] $ 9,041 [[Image Removed]] $ 8,102 [[Image Removed]] $ 19,736 [[Image Removed]] $ 17,577 [[Image Removed]] -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries Quarterly Market Activity Report [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] % Change [[Image Removed]] % Change [[Image Removed]] 2Q03 [[Image Removed]] 3Q03 [[Image Removed]] 4Q03** [[Image Removed]] 1Q04 [[Image Removed]] 2Q04 [[Image Removed]] 2Q04 vs 1Q04 [[Image Removed]] 2Q04 vs 2Q03 Volume (in billions) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic Volume - Excluding New Products [[Image Removed]] 7,781 [[Image Removed]] 9,610 [[Image Removed]] 7,535 [[Image Removed]] 8,209 [[Image Removed]] 7,791 [[Image Removed]] (5.1 %) [[Image Removed]] 0.1 % Fully Electronic Volume - New Products* [[Image Removed]] N/A [[Image Removed]] N/A [[Image Removed]] 21 [[Image Removed]] 133 [[Image Removed]] 199 [[Image Removed]] 49.8 % [[Image Removed]] Voice-Assisted Volume [[Image Removed]] 2,662 [[Image Removed]] 2,825 [[Image Removed]] 2,756 [[Image Removed]] 3,586 [[Image Removed]] 3,070 [[Image Removed]] (14.4 %) [[Image Removed]] 15.3 % Total Electronic Volume [[Image Removed]] 10,443 [[Image Removed]] 12,435 [[Image Removed]] 10,312 [[Image Removed]] 11,928 [[Image Removed]] 11,061 [[Image Removed]] (7.3 %) [[Image Removed]] 5.9 % [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Electronic Transaction Count [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic Transactions - Excluding New [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Products 1,194,625 1,465,263 1,208,331 1,264,612 1,252,654 (0.9 %) 4.9 % Fully Electronic Transactions - New Products* [[Image Removed]] N/A [[Image Removed]] N/A [[Image Removed]] 6,242 [[Image Removed]] 23,996 [[Image Removed]] 38,369 [[Image Removed]] 59.9 % [[Image Removed]] Voice-Assisted Transactions [[Image Removed]] 148,223 [[Image Removed]] 157,901 [[Image Removed]] 149,181 [[Image Removed]] 175,036 [[Image Removed]] 165,906 [[Image Removed]] (5.2 %) [[Image Removed]] 11.9 % Total Transactions [[Image Removed]] 1,342,848 [[Image Removed]] 1,623,164 [[Image Removed]] 1,363,754 [[Image Removed]] 1,463,644 [[Image Removed]] 1,456,929 [[Image Removed]] (0.5 %) [[Image Removed]] 8.5 % eSpeed Equities Direct Access (Number of Shares [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Traded In Millions) N/A N/A 56 85 102 19.6 % Trading Days [[Image Removed]] 63 [[Image Removed]] 64 [[Image Removed]] 62 [[Image Removed]] 62 [[Image Removed]] 62 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] * New Products defined as Mortgage-Backed Securities, Foreign Exchange, Interest Rate Swaps, Repos and Futures. CBOT Futures volume calculated based on per contract notional value of $200,000 for the two year contract and $100,000 for all others. [[Image Removed]] [[Image Removed]] ** Modification in our calculation based on recognition of new product volume. [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Global Interest Rate Futures Volume (1) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] CBOT - US Treasury Contracts [[Image Removed]] 71,290,686 [[Image Removed]] 83,851,953 [[Image Removed]] 72,558,944 [[Image Removed]] 85,432,539 [[Image Removed]] 97,809,197 [[Image Removed]] 14.5 % [[Image Removed]] 37.2 % CME - Euro $ Contracts [[Image Removed]] 55,958,592 [[Image Removed]] 56,273,797 [[Image Removed]] 52,414,323 [[Image Removed]] 59,434,778 [[Image Removed]] 80,289,683 [[Image Removed]] 35.1 % [[Image Removed]] 43.5 % EUREX - Bund Contracts [[Image Removed]] 63,455,364 [[Image Removed]] 63,377,019 [[Image Removed]] 51,717,399 [[Image Removed]] 62,145,662 [[Image Removed]] 57,280,434 [[Image Removed]] (7.8 %) [[Image Removed]] (9.7 %) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fed UST Volume (in billions) (2) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] UST Volume [[Image Removed]] 28,319 [[Image Removed]] 30,590 [[Image Removed]] 26,189 [[Image Removed]] 29,843 [[Image Removed]] 32,379 [[Image Removed]] 8.5 % [[Image Removed]] 14.3 % Average Daily UST Volume [[Image Removed]] 450 [[Image Removed]] 478 [[Image Removed]] 422 [[Image Removed]] 481 [[Image Removed]] 522 [[Image Removed]] 8.5 % [[Image Removed]] 16.2 % [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] NYSE - Volume (shares traded) - [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] in millions (3) 92,981 87,303 85,529 95,386 90,818 (4.8 %) (2.3 %) Transaction Value - in millions [[Image Removed]] 2,497,359 [[Image Removed]] 2,475,689 [[Image Removed]] 2,546,235 [[Image Removed]] 2,970,628 [[Image Removed]] 2,881,358 [[Image Removed]] (3.0 %) [[Image Removed]] 15.4 % [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] NASDAQ - Volume (shares traded) - [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] in millions (4) 112,524 110,672 112,636 126,314 108,328 (14.2 %) (3.7 %) Transaction Value - in millions [[Image Removed]] 1,739,506 [[Image Removed]] 1,896,887 [[Image Removed]] 2,030,335 [[Image Removed]] 2,312,291 [[Image Removed]] 2,120,171 [[Image Removed]] (8.3 %) [[Image Removed]] 21.9 % [[Image Removed]] [[Image Removed]] [[Image Removed]][[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Sources: (1) Futures Industry Association - Monthly Volume Report - (www.cbot.com, www.cme.com, www.eurexchange.com) [[Image Removed]] [[Image Removed]] [[Image Removed]] (2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve Bank [[Image Removed]] [[Image Removed]] [[Image Removed]] (3) NYSE - www.nyse.com [[Image Removed]] [[Image Removed]] [[Image Removed]] (4) NASDAQ - www.marketdata.nasdaq.com -------------------------------------------------------------------------------- [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fiscal Year 2003 [[Image Removed]] Jan'03 [[Image Removed]] Feb'03 [[Image Removed]] Mar'03 [[Image Removed]] Apr'03 [[Image Removed]] May'03 [[Image Removed]] Jun'03 [[Image Removed]] Volume Data (in billions) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic [[Image Removed]] 2,309 [[Image Removed]] 1,906 [[Image Removed]] 2,564 [[Image Removed]] 2,070 [[Image Removed]] 2,871 [[Image Removed]] 2,840 Voice [[Image Removed]] 864 [[Image Removed]] 810 [[Image Removed]] 917 [[Image Removed]] 761 [[Image Removed]] 956 [[Image Removed]] 944 Total [[Image Removed]] 3,173 [[Image Removed]] 2,716 [[Image Removed]] 3,481 [[Image Removed]] 2,831 [[Image Removed]] 3,827 [[Image Removed]] 3,784 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Transaction Count [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic [[Image Removed]] 370,992 [[Image Removed]] 305,296 [[Image Removed]] 403,307 [[Image Removed]] 338,281 [[Image Removed]] 425,213 [[Image Removed]] 431,131 Voice [[Image Removed]] 49,801 [[Image Removed]] 48,449 [[Image Removed]] 53,520 [[Image Removed]] 44,767 [[Image Removed]] 49,946 [[Image Removed]] 53,510 Total [[Image Removed]] 420,793 [[Image Removed]] 353,745 [[Image Removed]] 456,827 [[Image Removed]] 383,048 [[Image Removed]] 475,159 [[Image Removed]] 484,641 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Trading Days [[Image Removed]] 21 [[Image Removed]] 19 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] [[Image Removed]] Fiscal Year 2004 [[Image Removed]] Jan'04 [[Image Removed]] Feb'04 [[Image Removed]] Mar'04 [[Image Removed]] Apr'04 [[Image Removed]] May'04 [[Image Removed]] Jun'04 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Volume Data (in billions) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic [[Image Removed]] 2,982 [[Image Removed]] 2,464 [[Image Removed]] 2,897 [[Image Removed]] 2,912 [[Image Removed]] 2,550 [[Image Removed]] 2,528 Voice [[Image Removed]] 1,144 [[Image Removed]] 1,146 [[Image Removed]] 1,296 [[Image Removed]] 1,058 [[Image Removed]] 1,019 [[Image Removed]] 994 Total [[Image Removed]] 4,126 [[Image Removed]] 3,610 [[Image Removed]] 4,192 [[Image Removed]] 3,970 [[Image Removed]] 3,569 [[Image Removed]] 3,522 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Transaction Count [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic [[Image Removed]] 449,197 [[Image Removed]] 379,084 [[Image Removed]] 460,327 [[Image Removed]] 460,211 [[Image Removed]] 417,503 [[Image Removed]] 413,309 Voice [[Image Removed]] 57,178 [[Image Removed]] 54,485 [[Image Removed]] 63,373 [[Image Removed]] 56,948 [[Image Removed]] 55,533 [[Image Removed]] 53,425 Total [[Image Removed]] 506,375 [[Image Removed]] 433,569 [[Image Removed]] 523,700 [[Image Removed]] 517,159 [[Image Removed]] 473,036 [[Image Removed]] 466,734 Trading Days [[Image Removed]] 20 [[Image Removed]] 19 [[Image Removed]] 23 [[Image Removed]] 21 [[Image Removed]] 20 [[Image Removed]] 21 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Trading Days 2004 Q1 [[Image Removed]] Q2 [[Image Removed]] Q3 [[Image Removed]] Q4 62 [[Image Removed]] 62 [[Image Removed]] 64 [[Image Removed]] 62 [[Image Removed]] [[Image Removed]] [[Image Removed]] 2003 Q1 [[Image Removed]] Q2 [[Image Removed]] Q3 [[Image Removed]] Q4 61 [[Image Removed]] 63 [[Image Removed]] 64 [[Image Removed]] 62 [[Image Removed]] --------------------------------------------------------------------------------