SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SIMMONS ROBERT J

(Last)

(First)

(Middle)

C/O E*TRADE FINANCIAL CORPORATION

135 E. 57TH STREET

(Street)

NEW YORK

10022

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
E TRADE FINANCIAL CORP [ ET ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Chief Financial Officer

3. Date of Earliest Transaction (Month/Day/Year)
05/15/2006

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	05/15/2006	05/15/2006	M⁽¹⁾		25,000	A	$9.175	0	D
Common Stock	05/15/2006	05/15/2006	S⁽¹⁾		25,000	D	$24.862	0	D
Common Stock	05/15/2006	05/15/2006	M⁽¹⁾		14,584	A	$5.1	0	D
Common Stock	05/15/2006	05/15/2006	S⁽¹⁾		14,584	D	$24.862	0	D
Common Stock	05/15/2006	05/15/2006	M⁽¹⁾		3,826	A	$5.1	0	D
Common Stock	05/15/2006	05/15/2006	S⁽¹⁾		3,826	D	$24.862	0	D
Common Stock	05/15/2006	05/15/2006	M⁽¹⁾		1,334	A	$10.325	0	D
Common Stock	05/15/2006	05/15/2006	S⁽¹⁾		1,334	D	$24.862	0	D
Common Stock	05/15/2006	05/15/2006	M⁽¹⁾		2,500	A	$4.435	0	D
Common Stock	05/15/2006	05/15/2006	S⁽¹⁾		2,500	D	$24.862	165,504	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Non-Statutory Stock Option (right to buy)	$9.175	05/15/2006		M			25,000	04/23/2002	05/11/2011	Common Stock	25,000	$0	0	D
Non-Statutory Stock Option (right to buy)	$5.1	05/15/2006		M			14,584	12/31/2001	09/24/2011	Common Stock	14,584	$0	0	D
Non-Statutory Stock Option (right to buy)	$5.1	05/15/2006		M			3,826	09/30/2002	09/24/2011	Common Stock	3,826	$0	0	D
Non-Statutory Stock Option (right to buy)	$10.325	05/15/2006		M			1,334	01/02/2003	01/02/2012	Common Stock	1,334	$0	0	D
Non-Statutory Stock Option (right to buy)	$4.435	05/15/2006		M			2,500	01/31/2004	01/31/2013	Common Stock	2,500	$0	2,500	D

Explanation of Responses:

1. The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on May 8, 2006. This plan was implemented as part of Mr. Simmons' personal long-term investment strategy for asset diversification and liquidity. Pursuant to the plan, a total of 241,730 shares may be sold on a periodic basis between May 2006 and April 2007, at which time the plan will terminate.

	/s/ Russell S. Elmer his attorney in fact	05/17/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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