Exhibit 99.1
eSPEED REPORTS FOURTH QUARTER 2003 GAAP AND FULLY TAXED OPERATING
EPS OF $0.15
FOURTH QUARTER PRE-TAX OPERATING EARNINGS PER SHARE OF $0.25 INCREASE
56 PERCENT AND QUARTERLY REVENUES GROW 20 PERCENT TO $39 MILLION YEAR
OVER YEAR
COMPANY REITERATES STRONG GUIDANCE FOR FULL YEAR 2004
NEW YORK - February 9, 2004 - eSpeed, Inc. (NASDAQ:ESPD), the leading developer
of electronic trading technology, today reported results for the fourth quarter
and full year ended December 31, 2003.
EARNINGS
On a Generally Accepted Accounting Principles (GAAP) basis, eSpeed reported net
income of $8.6 million, or $0.15 per diluted share, for the fourth quarter 2003.
eSpeed also reports operating income, in order to reflect earnings generated
from the Company's operations. For the same period, the Company reported fully
taxed operating income of $8.8 million which was also $0.15 per diluted share.
The difference between fully taxed operating income and GAAP net income was a
$0.3 million non-cash charge for business partner securities. For comparative
purposes, eSpeed reported pre-tax operating income of $14.5 million, or $0.25
per diluted share, in the fourth quarter 2003, a 56 percent increase over the
$0.16 per diluted share reported in the fourth quarter 2002.
On a GAAP basis, the Company reported net income of $36.1 million, or $0.63 per
diluted share for the full year 2003, compared to $42.0 million, or $0.74 per
diluted share for the full year 2002. The primary differences between GAAP
results reported in 2003 and 2002 were a $12.8 million gain on insurance
proceeds related to September 11th included in 2002 and the fact that the
Company started paying taxes in the second quarter of 2003. For the full year
ended December 31, 2003, the Company reported net income from operations of
$38.1 million, or $0.66 per diluted share, compared to $31.4 million and $0.55
per diluted share for the same period last year. For comparative purposes, the
Company's full year 2003 pre-tax operating income of $56.1 million, or $0.98 per
diluted share represents a 75 percent increase over the $0.56 per diluted share
reported in 2002.
REVENUES
eSpeed's total revenues for the fourth quarter 2003 were $39.2 million, 20
percent higher than total revenues of $32.8 million for fourth quarter 2002.
Fourth quarter 2003 fully electronic revenues were $27.7 million, up 24 percent
compared to $22.4 million in the fourth quarter 2002. Total revenues from
Software Solutions in the fourth quarter 2003
were $6.2 million versus $5.5 million in the fourth quarter 2002, an increase of
13 percent.
eSpeed's total revenues for the year ended December 31, 2003 increased 24
percent to $156.6 million, versus $126.4 million in the full year 2002. Fully
electronic revenues grew 25 percent to $110.0 million for the year 2003 compared
to $88.0 million in 2002. Total revenues from Software Solutions increased 37
percent to $24.2 million for the full year 2003 compared to $17.7 million for
the same period in 2002.
Fourth quarter 2003 pre-tax operating margins grew to 36.9 percent versus 28.5
percent in the fourth quarter 2002. Full year 2003 pre-tax operating margins
grew to 35.8 percent compared to 25.3 percent in the full year 2002.
VOLUME & TRANSACTIONS
Fully electronic volume for the fourth quarter 2003 was $7.5 trillion, an 11
percent increase over $6.8 trillion for the fourth quarter 2002. eSpeed's total
electronic volume, including fully electronic and voice-assisted transactions,
for the fourth quarter 2003 was $10.3 trillion, up 11 percent from $9.3 trillion
in the fourth quarter 2002. This growth compares to an 11 percent increase in US
Treasury volume as reported by the Federal Reserve over the same period.
The Company had anticipated average daily Federal Reserve US Treasury volume for
the fourth quarter 2003 in a range of $425 - $435 billion. Actual average daily
Federal Reserve US Treasury volume was $422 billion for the fourth quarter.
Lee Amaitis, Global Chief Operating Officer of eSpeed, commented, "We are
pleased to have reported fourth quarter results at the high end of our
expectations despite lower market volumes in the fourth quarter."
For the full year 2003, fully electronic volume was $31.7 trillion, a 21 percent
increase over $26.2 trillion for the full year 2002. eSpeed's total electronic
volume for 2003 was $42.5 trillion, up 21 percent from $35.1 trillion in 2002.
This growth compares to a 17 percent increase in US Treasury volume as reported
by the Federal Reserve over the same period.
FREE CASH FLOW & CASH
The Company generated free cash flow of $28.8 million for the full year 2003.
Excluding related party receivables and payables, free cash flow for the year
was $37.6 million.
As of December 31, 2003, eSpeed's cash and cash equivalents was approximately
$228.5 million.
Howard W. Lutnick, Chairman, CEO & President of eSpeed, Inc., commented, "We are
proud of our strong results in 2003, marked by 75 percent growth in our profits.
Our
incremental margins of 80 percent for the year, along with the generation of
free cash flow virtually on par with our income, illustrate the strengths and
leverage inherent in our business model."
OUTLOOK
The Company is maintaining its previously stated guidance for the full year
2004. eSpeed continues to expect to generate revenues in excess of $185 million
and expects its pre-tax operating margins to exceed 41 percent for the full year
2004. eSpeed anticipates that its incremental margins will exceed 75 percent for
the full year 2004. Operating earnings after tax for 2004 are expected to be in
a range of $0.80 to $0.84 per diluted share. This guidance is based on the
Company's expectations that average daily Federal Reserve US Treasury volume
will be between $490 and $510 billion for the full year 2004.
For the first quarter 2004, eSpeed expects operating earnings to be in the range
of $0.18 and $0.20 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 $480 and $500 billion for the first quarter 2004.
In conclusion, Mr. Lutnick added, "For eSpeed, 2004 will be characterized by the
increasing growth in the US Treasury market overall and eSpeed's leadership
position in this market, the continued introduction and adoption of enhancements
to our software and the initial roll out of new products to be traded and
leveraged across the eSpeed platform. We are encouraged by the strong foundation
we have built, as we position ourselves for further growth in the future."
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, income before income tax provision, 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 fourth quarter 2003, the difference
between GAAP net income and non-GAAP net operating income was $0.3 million. For
the full year 2003, the difference between GAAP net income and non-GAAP net
operating income was $2.0 million.
ABOUT eSPEED, INC.
eSpeed, Inc., 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 financial 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, major exchanges
and leading natural gas and electricity trading firms. 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:
Amy Nauiokas
212.610.2421
MEDIA:
Tom Ryan
212.610.2425
eSPEED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
December 31, Year Ended December 31,
--------------------------- --------------------------
2003 2002 2003 2002
------------ ------------ ------------ -----------
Revenues:
Transaction revenues with related parties
Fully electronic transactions $ 27,667 $ 22,430 $ 110,015 $ 88,039
Voice-assisted brokerage transactions 4,546 4,073 19,505 17,552
Screen-assisted open outcry transactions 118 56 538 190
--------- --------- --------- ---------
Total transaction revenues with related parties 32,331 26,559 130,058 105,781
Software Solutions fees from related parties 3,773 3,460 15,124 13,207
Software Solutions and licensing fees from unrelated parties 2,463 2,075 9,125 4,512
Interest income 656 683 2,308 2,905
--------- --------- --------- ---------
Total revenues 39,223 32,777 156,615 126,405
--------- --------- --------- ---------
Expenses:
Compensation and employee benefits 8,241 8,751 36,114 36,499
Occupancy and equipment 8,383 6,815 31,322 24,863
Professional and consulting fees 592 1,394 3,519 5,658
Communications and client networks 1,690 1,819 6,714 6,335
Marketing 339 263 1,454 4,778
Administrative fees to related parties 2,695 2,555 10,442 9,134
Other 2,792 1,844 10,960 7,217
--------- --------- --------- ---------
Total operating expenses 24,732 23,441 100,525 94,484
--------- --------- --------- ---------
Pre-tax operating income 14,491 9,336 56,090 31,921
Income tax provision 5,659 128 17,982 479
--------- --------- --------- ---------
Net operating income 8,832 9,208 38,108 31,442
--------- --------- --------- ---------
Non-operating (loss) income:
Amortization of business partner and non-employee securities,
net of tax (275) (705) (1,592) (2,059)
Loss on unconsolidated investments -- (950) -- (950)
Provision for September 11 Events -- 1,200 -- 1,200
Charitable contribution Re: 9/11, net of tax -- -- (420) (500)
Business interruption insurance proceeds from parent -- -- -- 12,833
--------- --------- --------- ---------
Total non-operating (loss) income (275) (455) (2,012) 10,524
--------- --------- --------- ---------
GAAP net income $ 8,557 $ 8,753 $ 36,096 $ 41,966
========= ========= ========= =========
Per share data:
Basic pre-tax operating income per share $ 0.26 $ 0.17 $ 1.01 $ 0.58
Basic tax provision per share $ (0.10) $ (0.00) $ (0.32) $ (0.01)
--------- --------- --------- ---------
Basic net operating income per share $ 0.16 $ 0.17 $ 0.69 $ 0.57
Basic non-operating (loss) income per share $ (0.00) $ (0.01) $ (0.04) $ 0.19
--------- --------- --------- ---------
Basic GAAP earnings per share $ 0.15 $ 0.16 $ 0.65 $ 0.76
========= ========= ========= =========
Diluted pre-tax operating income per share $ 0.25 $ 0.16 $ 0.98 $ 0.56
Diluted tax provision per share $ (0.10) $ (0.00) $ (0.31) $ (0.01)
--------- --------- --------- ---------
Diluted net operating income per share $ 0.15 $ 0.16 $ 0.66 $ 0.55
Diluted non-operating (loss) earnings per share $ (0.00) $ (0.01) $ (0.03) $ 0.19
--------- --------- --------- ---------
Diluted GAAP earnings per share $ 0.15 $ 0.15 $ 0.63 $ 0.74
========= ========= ========= =========
Basic weighted average shares of common stock outstanding 55,759 55,028 55,345 54,991
========= ========= ========= =========
Diluted weighted average shares of common stock outstanding 58,908 57,309 57,499 56,784
========= ========= ========= =========
Additional data:
Pre-tax operating margin 36.9% 28.5% 35.8% 25.3%
========= ========= ========= =========
eSPEED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
December 31, Year Ended December 31,
--------------------- -----------------------
2003 2002 2003 2002
---------- --------- ----------- ---------
(unaudited) (unaudited)
Revenues:
Transaction revenues with related parties
Fully electronic transactions $ 27,667 $ 22,430 $ 110,015 $ 88,039
Voice-assisted brokerage transactions 4,546 4,073 19,505 17,552
Screen-assisted open outcry transactions 118 56 538 190
--------- --------- --------- ---------
Total transaction revenues with related parties 32,331 26,559 130,058 105,781
Software Solutions fees from related parties 3,773 3,460 15,124 13,207
Software Solutions and licensing fees from unrelated parties 2,463 2,075 9,125 4,512
Business interruption insurance proceeds from parent -- -- -- 12,833
Interest income 656 683 2,308 2,905
--------- --------- --------- ---------
Total revenues 39,223 32,777 156,615 139,238
--------- --------- --------- ---------
Expenses:
Compensation and employee benefits 8,241 8,751 36,114 36,499
Occupancy and equipment 8,383 6,815 31,322 24,863
Professional and consulting fees 592 1,394 3,519 5,658
Communications and client networks 1,690 1,819 6,714 6,335
Marketing 339 263 1,454 4,778
Administrative fees to related parties 2,695 2,555 10,442 9,134
Amortization of business partner and non-employee securities 452 705 2,167 2,059
Loss on unconsolidated investments -- 950 -- 950
Provision for September 11 Events -- (1,200) -- (1,200)
Other 2,792 1,844 11,647 7,717
--------- --------- --------- ---------
Total expenses 25,184 23,896 103,379 96,793
--------- --------- --------- ---------
Income before income tax provision 14,039 8,881 53,236 42,445
Income tax provision 5,482 128 17,140 479
--------- --------- --------- ---------
Net income $ 8,557 $ 8,753 $ 36,096 $ 41,966
========= ========= ========= =========
Per share data:
Basic earnings per share $ 0.15 $ 0.16 $ 0.65 $ 0.76
========= ========= ========= =========
Diluted earnings per share $ 0.15 $ 0.15 $ 0.63 $ 0.74
========= ========= ========= =========
Basic weighted average shares of common stock outstanding 55,759 55,028 55,345 54,991
========= ========= ========= =========
Diluted weighted average shares of common stock outstanding 58,908 57,309 57,499 56,784
========= ========= ========= =========
eSPEED, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP (UNAUDITED)
(IN THOUSANDS)
Three Months Ended
December 31, Year Ended December 31,
------------------------- ------------------------
2003 2002 2003 2002
----------- ----------- ----------- ----------
Revenues $ 39,223 $ 32,777 $ 156,615 $ 126,405
Business interruption insurance proceeds from parent [a] -- -- -- 12,833
--------- --------- --------- ---------
GAAP revenues $ 39,223 $ 32,777 $ 156,615 $ 139,238
--------- --------- --------- ---------
Operating expenses $ 24,732 $ 23,441 $ 100,525 $ 94,484
Amortization of business partner and non-employee securities [b] 452 705 2,167 2,059
Loss on unconsolidated investments [c] -- 950 -- 950
Provision for September 11 Events [d] -- (1,200) -- (1,200)
Charitable contribution Re: 9/11 [e] -- -- 687 500
--------- --------- --------- ---------
GAAP expenses $ 25,184 $ 23,896 $ 103,379 $ 96,793
--------- --------- --------- ---------
Pre-tax operating income $ 14,491 $ 9,336 $ 56,090 $ 31,921
Sum of reconciling items = [a] - [b] - [c] - [d] - [e] (452) (455) (2,854) 10,524
--------- --------- --------- ---------
GAAP income before income tax provision $ 14,039 $ 8,881 $ 53,236 $ 42,445
--------- --------- --------- ---------
Income tax provision $ 5,659 $ 128 $ 17,982 $ 479
Income tax benefit on non-operating loss [f] (177) -- (842) --
--------- --------- --------- ---------
GAAP income tax provision $ 5,482 $ 128 $ 17,140 $ 479
--------- --------- --------- ---------
Net operating income $ 8,832 $ 9,208 $ 38,108 $ 31,442
Sum of reconciling items = [a] + [b] + [c] + [d] + [e] + [f] (275) (455) (2,012) 10,524
--------- --------- --------- ---------
GAAP net income $ 8,557 $ 8,753 $ 36,096 $ 41,966
========= ========= ========= =========
eSPEED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
December 31,
--------------------------------
2003 2002
--------------- ---------------
(unaudited)
Assets
Cash and cash equivalents $ 228,500 $ 187,999
Fixed assets, net 34,467 26,383
Investments 11,449 11,175
Intangible assets, net 18,927 19,528
Receivable from related parties 1,518 5,266
Other assets 2,707 2,360
--------- ---------
Total assets $ 297,568 $ 252,711
--------- ---------
Liabilities and Stockholders' Equity
Liabilities:
Payable to related parties $ 6,323 $ 18,857
Accounts payable and accrued liabilities 19,560 15,399
--------- ---------
Total liabilities 25,883 34,256
--------- ---------
Stockholders' Equity:
Preferred stock, par value $0.01 per share; 50,000,000 shares authorized,
8,000,750 shares issued and outstanding 80 80
Class A common stock, par value $0.01 per share; 200,000,000 shares
authorized; 30,953,867 and 29,783,682 shares issued 310 298
Class B common stock, par value $0.01 per share; 100,000,000 shares
authorized; 25,139,270 and 25,388,814 shares issued and outstanding 251 254
Additional paid-in capital 287,593 270,656
Unamortized expense of business partner and non-employee securities (1,192) (3,252)
Treasury stock, at cost; 186,399 and 24,600 shares of Class A common stock (2,094) (222)
Accumulated deficit (13,263) (49,359)
--------- ---------
Total stockholders' equity 271,685 218,455
--------- ---------
Total liabilities and stockholders' equity $ 297,568 $ 252,711
========= =========
eSPEED, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Three Months Ended
December 31, Year Ended December 31,
--------------------------- --------------------------
2003 2002 2003 2002
------------ ------------ ----------- ------------
(unaudited) (unaudited)
Cash flows from operating activities:
Net income $ 8,557 $ 8,753 $ 36,096 $ 41,966
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 5,000 4,154 18,044 14,191
Amortization of business partner and non-employee securities 452 705 2,167 2,059
Loss on unconsolidated investments -- 950 -- 950
Provision for September 11 Events -- (1,200) -- (1,200)
Equity in net (income) loss of unconsolidated investments 105 (12) 185 190
Deferred income tax expense 988 -- 4,469 --
Tax benefit from stock option and warrant exercises 1,760 -- 4,870 --
Issuance of securities under employee benefit plan 96 -- 256 52
Changes in operating assets and liabilities:
Receivable from related parties 948 1,327 3,748 3,021
Other assets 945 (46) 215 313
Payable to related parties 2,777 4,565 (12,534) 3,701
Accounts payable and accrued liabilities (8,317) (17,403) (433) (6,495)
--------- --------- --------- ---------
Net cash provided by operating activities 13,311 1,793 57,083 58,748
--------- --------- --------- ---------
Cash flows from investing activities:
Purchase of fixed assets (6,472) (3,370) (10,943) (9,770)
Sale of fixed assets -- -- 2,752 --
Capitalization of software development costs (3,032) (2,369) (12,628) (8,332)
Capitalization of patents and related legal costs (1,039) (3,510) (4,710) (13,741)
--------- --------- --------- ---------
Net cash used in investing activities (10,543) (9,249) (25,529) (31,843)
--------- --------- --------- ---------
Cash flows from financing activities:
Repurchase of Class A common stock -- -- (1,872) --
Proceeds from exercises of stock options and warrants 5,701 1,161 11,838 1,195
Receivable from broker on stock option exercises 3,046 -- (1,019) --
--------- --------- --------- ---------
Net cash provided by financing activities 8,747 1,161 8,947 1,195
--------- --------- --------- ---------
Net increase (decrease) in cash and cash equivalents 11,515 (6,295) 40,501 28,100
--------- --------- --------- ---------
Cash and cash equivalents, beginning of period 216,985 194,294 187,999 159,899
--------- --------- --------- ---------
Cash and cash equivalents, end of period $ 228,500 $ 187,999 $ 228,500 $ 187,999
========= ========= ========= =========
Note: Certain prior period amounts have been reclassified to conform to the
current period presentation.
eSPEED, INC. & SUBSIDIARIES
COMPUTATION OF CONSOLIDATED FREE CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
Three Months Ended Year Ended
December 31, December 31,
--------------------- ---------------------
2003 2002 2003 2002
-------- -------- -------- --------
Pre-tax operating income $ 14,491 $ 9,336 $ 56,090 $ 31,921
Depreciation and amortization 5,000 4,154 18,044 14,191
Other non-cash items 201 (12) 441 242
-------- -------- -------- --------
Pre-tax operating income adjusted for depreciation, amortization and other 19,692 13,478 74,575 46,354
-------- -------- -------- --------
Income tax provision on operating income (5,659) (128) (17,982) (479)
Income tax benefit on non-operating loss 177 -- 842 --
Deferred income tax expense 988 -- 4,469 --
Tax benefit from stock option and warrant exercises 1,760 -- 4,870 --
Income taxes paid 3,807 -- 7,167 --
-------- -------- -------- --------
Decrease (increase) in current income tax payable 1,073 (128) (634) (479)
Changes in related party receivable and payable, net 3,725 5,892 (8,786) 6,722
Changes in other operating assets and liabilities, net (11,179) (17,449) (7,385) (6,182)
Charitable contribution Re: 9/11 -- -- (687) (500)
Insurance claim receivable from parent -- -- -- 12,833
-------- -------- -------- --------
Net cash provided by operating activities 13,311 1,793 57,083 58,748
-------- -------- -------- --------
Purchase of fixed assets (6,472) (3,370) (10,943) (9,770)
Capitalization of software development costs (3,032) (2,369) (12,628) (8,332)
Capitalization of patents and related legal costs (1,039) (3,510) (4,710) (13,741)
-------- -------- -------- --------
Free cash flows 2,768 (7,456) 28,802 26,905
-------- -------- -------- --------
Related party receivable and payable, net (3,725) (5,892) 8,786 (6,722)
Insurance claim receivable from parent -- -- -- (12,833)
-------- -------- -------- --------
Free cash flows, net of related party activity $ (957) $(13,348) $ 37,588 $ 7,350
======== ======== ======== ========
eSPEED, INC. & SUBSIDIARIES
QUARTERLY MARKET ACTIVITY REPORT (UNAUDITED)
TREND
% Change % Change
-------------------------------------------------------------------------------------
4Q02 1Q03 2Q03 3Q03 4Q03 4Q03 vs 3Q03 4Q03 vs 4Q02
----------------------------------------------------------
VOLUME (IN BILLIONS)
Fully Electronic Volume 6,796 6,778 7,781 9,610 7,537 (21.6%) 10.9%
Voice-Assisted Volume 2,495 2,592 2,662 2,825 2,756 (2.4%) 10.5%
-----------------------------------------------------------------------------------
Total Electronic Volume 9,291 9,369 10,443 12,435 10,294 (17.2%) 10.8%
===================================================================================
ELECTRONIC TRANSACTION COUNT
Fully Electronic Transactions 1,060,814 1,079,595 1,194,625 1,465,263 1,209,469 (17.5%) 14.0%
Voice-Assisted Transactions 128,648 151,770 148,223 157,901 149,181 (5.5%) 16.0%
-----------------------------------------------------------------------------------
Total Transactions 1,189,462 1,231,365 1,342,848 1,623,164 1,358,650 (16.3%) 14.2%
===================================================================================
Trading Days 62 61 63 64 62
Global Interest Rate Futures Volume (1)
CBOT - US Treasury Contracts 55,710,144 60,743,312 71,290,686 83,851,953 72,558,944 (13.5%) 30.2%
CME - Euro $ Contracts 42,085,021 44,124,452 55,958,592 56,273,797 52,414,323 (6.9%) 24.5%
EUREX - Bund Contracts 45,319,604 65,864,492 63,455,364 63,377,019 51,717,399 (18.4%) 14.1%
Fed UST Volume (in billions) (2)
UST Volume 23,637 23,740 28,319 30,590 26,189 (14.4%) 10.8%
Average Daily UST Volume 381 389 450 478 422 (11.6%) 10.8%
NYSE - Volume (shares traded) -
in millions (3) 93,353 86,585 92,981 87,303 85,529 (2.0%) (8.4%)
Transaction Value - in millions 2,410,169 2,173,033 2,497,359 2,475,689 2,546,235 2.8% 5.6%
NASDAQ - Volume (shares traded) -
in millions (4) 105,200 88,636 112,524 110,672 112,636 1.8% 7.1%
Transaction Value - in millions 1,583,382 1,390,364 1,739,506 1,896,887 2,030,335 7.0% 28.2%
% Change
-----------------------------------------------
2002 2003 2003 vs 2002
------------------------------
VOLUME (IN BILLIONS)
Fully Electronic Volume 26,239 31,706 20.8%
Voice-Assisted Volume 8,818 10,835 22.9%
---------------------------------------------
Total Electronic Volume 35,057 42,541 21.3%
=============================================
ELECTRONIC TRANSACTION COUNT
Fully Electronic Transactions 3,955,363 4,948,952 25.1%
Voice-Assisted Transactions 597,140 607,075 1.7%
---------------------------------------------
Total Transactions 4,552,503 5,556,027 22.0%
=============================================
Trading Days 250 250
Global Interest Rate Futures Volume (1)
CBOT - US Treasury Contracts 205,594,628 288,444,895 40.3%
CME - Euro $ Contracts 202,080,832 208,771,164 3.3%
EUREX - Bund Contracts 191,263,413 244,414,274 27.8%
Fed UST Volume (in billions) (2)
UST Volume 92,861 108,838 17.2%
Average Daily UST Volume 371 435 17.2%
NYSE - Volume (shares traded) -
in millions (3) 363,135 352,398 (3.0%)
Transaction Value - in millions 10,311,156 9,692,316 (6.0%)
NASDAQ - Volume (shares traded) -
in millions (4) 441,701 424,468 (3.9%)
Transaction Value - in millions 7,254,595 7,057,092 (2.7%)
Sources: (1) Futures Industry Association - Monthly Volume Report - (www.cbot.com, www.cme.com, www.eurexchange.com)
(2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve Bank
(3) NYSE - www.nyse.com
(4) NASDAQ - www.marketdata.nasdaq.com
------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year 2002 Jan'02 Feb'02 Mar'02 Apr'02 May'02 Jun'02
Volume Data (in billions)
Fully Electronic 1,992 1,811 2,158 1,953 2,169 2,119
Voice 731 677 642 622 608 601
Total 2,723 2,488 2,800 2,575 2,777 2,720
Transaction Count
Fully Electronic 311,319 269,697 305,905 289,150 305,115 321,257
Voice 53,828 50,038 47,803 54,733 59,580 43,436
Total 365,147 319,735 353,708 343,883 364,695 364,693
Trading Days 21 19 20 22 22 20
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year 2003 Jan'03 Feb'03 Mar'03 Apr'03 May'03 Jun'03
Volume Data (in billions)
Fully Electronic 2,309 1,906 2,564 2,070 2,871 2,840
Voice 864 810 917 761 956 944
Total 3,173 2,716 3,481 2,831 3,827 3,784
Transaction Count
Fully Electronic 370,992 305,296 403,307 338,281 425,213 431,131
Voice 49,801 48,449 53,520 44,767 49,946 53,510
Total 420,793 353,745 456,827 383,048 475,159 484,641
Trading Days 21 19 21 21 21 21
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Fiscal Year 2002 Jul'02 Aug'02 Sep'02 Oct'02 Nov'02 Dec'02
Volume Data (in billions)
Fully Electronic 2,630 2,482 2,129 2,958 2,190 1,648
Voice 800 737 904 952 854 690
Total 3,430 3,219 3,033 3,910 3,044 2,338
Transaction Count
Fully Electronic 390,803 364,202 337,101 458,419 332,631 269,764
Voice 56,216 50,863 51,995 45,559 50,593 32,496
Total 447,019 415,065 389,096 503,978 383,224 302,260
Trading Days 22 22 20 22 19 21
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Fiscal Year 2003 Jul'03 Aug'03 Sep'03 Oct'03 Nov'03 Dec'03
Volume Data (in billions)
Fully Electronic 3,428 2,952 3,230 3,019 2,233 2,285
Voice 992 733 1,100 1,034 941 781
Total 4,419 3,686 4,330 4,053 3,174 3,067
Transaction Count
Fully Electronic 512,447 453,324 499,492 485,177 354,283 370,009
Voice 55,258 44,804 57,839 58,222 49,382 41,577
Total 567,705 498,128 557,331 543,399 403,665 411,586
Trading Days 22 21 21 22 18 22
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Trading Days
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2004
Q1 Q2 Q3 Q4
-- -- -- --
62 63 64 62
2003
Q1 Q2 Q3 Q4
-- -- -- --
61 63 64 62
2002
Q1 Q2 Q3 Q4
-- -- -- --
60 64 64 62
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