EX-99.1 2 file2.htm FINANCIALS

Exhibit 99.1

eSpeed Reports Second Quarter 2006 Results

Company Updates Outlook for Full Year 2006

NEW YORK – August 2, 2006 – eSpeed, Inc. (NASDAQ: ESPD), a leading developer of electronic marketplaces and related trading technology for the global capital markets, today reported results for the second quarter ended June 30, 2006.

Second Quarter 2006 Earnings

eSpeed reported a net loss of $0.4 million, or $0.01 per diluted share, for the second quarter of 2006 based on Generally Accepted Accounting Principles (GAAP). To reflect earnings generated from the Company's operations, eSpeed also reported non-GAAP net operating income of $1.8 million, or $0.04 per diluted share. The difference between non-GAAP net operating income and the GAAP net loss for the quarter occurred primarily due to $2.0 million in expenses relating to the relocation of the Company’s London office and $0.5 million in patent litigation costs, partially offset by a positive settlement of a tax-related matter of $0.3 million. All of these differences were net of tax.

For comparative purposes, eSpeed reported a GAAP net loss of $1.5 million, or $0.03 per diluted share, for the second quarter of 2005. For the same period, the Company reported non-GAAP net operating income of $1.9 million, or $0.04 per diluted share. The difference between non-GAAP net operating income and the GAAP net loss for the second quarter 2005 was $2.6 million in MTS-related expenses, $0.6 million for patent litigation costs, and a non-cash charge of less than $0.1 million related to business partner securities, all net of tax.

Second Quarter 2006 Revenues

eSpeed's total GAAP and non-GAAP operating revenues for the second quarter of 2006 were $39.0 million. The Company reported GAAP and non-GAAP total revenues of $37.5 million for the second quarter of 2005.

Fully electronic revenues were $17.3 million in the second quarter of 2006 compared to $18.8 million for the second quarter of 2005. Revenues from Software Solutions in the second quarter of 2006 were $11.5 million versus $10.4 million in the year ago period. Voice assisted and screen assisted revenues totaled $8.1 million in the second quarter of 2006 compared with $6.8 million in the second quarter of 2005. Non-GAAP pre-tax operating margin was 7.3 percent in the second quarter of 2006.

See ‘‘Non-GAAP Financial Measures’’ below for a detailed description of the Company’s non-GAAP financial measures.

Second Quarter 2006 Volume and Transactions on the eSpeed System

Fully electronic volume on the eSpeed system, excluding new products, was $10.2 trillion for the second quarter of 2006, up 43.9 percent from $7.1 trillion in the second quarter of 2005. eSpeed's voice-assisted volume for the second quarter of 2006 was $8.6 trillion, an increase of 16.4 percent over the $7.4 trillion reported in the second quarter of 2005.

Fully electronic volume on the eSpeed system for new products, which the Company defines as foreign exchange, interest rate swaps, futures and repos, was $744 billion for the second quarter of 2006, up 47.0 percent against the $506 billion reported in the second quarter of 2005.

Cash Flow & Cash

eSpeed generated cash flow from operations of $4.3 million during the second quarter of 2006, compared with $8.6 million during the comparable period in 2005. The Company also reports free cash flow, which it defines as cash from operations less net cash used in investing activities, including capital expenditures. eSpeed’s free cash flow was $0.8 million for the second quarter of 2006 and

3



$0.2 million in the year-earlier period. Excluding related party receivables and payables, free cash flow for the second quarter of 2006 was $6.1 million compared with $4.1 million in the year-ago quarter. As of June 30, 2006, eSpeed's cash and cash equivalents were approximately $178.2 million.

Outlook

For the third quarter of 2006, eSpeed expects to generate non-GAAP operating revenues in excess of $38 million and expects non-GAAP net operating income to be in the range of $0.02 to $0.03 per diluted share.

For full year 2006, eSpeed now expects to generate non-GAAP operating revenues in excess of $154 million, up from the previous outlook of $152 million. The Company now expects non-GAAP operating expenses to be towards the lower end of its previously stated range of $144 million to $147 million. eSpeed currently expects full year 2006 non-GAAP net operating income to be in the range of $0.10 to $0.12 per diluted share, which is an increase from the prior range of $0.07 to $0.10 per diluted share.

The Company will host a conference call on Thursday, August 3, 2006 at 8:30 a.m EDT, to discuss the above results. To listen to the call via audio webcast, please visit www.espeed.com. Please note: listeners must have a Real Media or Windows Media plug in and headphones or speakers to listen to the webcast.

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 expenses and gains. In addition, the Company provides a computation of free cash flow. 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. For the second quarter of 2006, the difference between GAAP net income and non-GAAP net operating income was $2.2 million, net of tax. eSpeed considers ‘‘non-GAAP net operating income’’ to be after-tax income generated from the Company's continuing operations excluding certain non-recurring or non-core items such as, but not limited to, asset impairments, litigation judgments, costs or settlements, restructuring charges, costs related to potential acquisitions, charitable contributions, insurance proceeds, business partner securities, gains or losses on investments and similar events. The amortization of patent costs and associated licensing fees (including those made in settlement of litigation) from such patents are generally treated as operating items. Material judgments or settlement amounts paid or received and impairments to all or a portion of such assets are generally treated as non-operating items. Management does not provide guidance of GAAP net income because certain items identified as excluded from non-GAAP net operating income are difficult to forecast.

About eSpeed, Inc.

eSpeed, Inc. (NASDAQ: ESPD) is a 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 foreign exchange marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of 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.

4



Discussion of Forward-Looking Statements by eSpeed, Inc.

The information in this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, our relationship with Cantor Fitzgerald and its affiliates, the costs and expenses of developing, maintaining and protecting our intellectual property, including judgments or settlements paid or received and their related costs, the possibility of future losses and negative cash flow from operations, the effect of market conditions, including trading volume and volatility, our pricing strategy and that of our competitors, our ability to develop new products and services, to enter new markets, to secure and maintain market share, to enter into marketing and strategic alliances, to hire new personnel, to expand the use of our electronic system, to induce clients to use our marketplaces and services and to effectively manage any growth we achieve, the effects of the attacks on the World Trade Center on September 11, 2001, and other factors that are discussed under ‘‘Risk Factors’’ in eSpeed’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. We believe that all forward-looking statements are based upon reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, you should not place undue reliance on these statements. Forward-looking statements speak only as of the date when made, and we undertake no obligation to update these statements in light of subsequent events or developments. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in forward-looking statements.

Contact:

Media:
Gavin Anderson & Company
Tristan B. Peniston-Bird
212-515-1933
TPeniston-Bird@GavinAnderson.com

OR

Adrian Thomas
44-207-894-8647
athomas@espeed.com

Investors:

Jason McGruder
212-829-4988
jmcgruder@espeed.com

5



eSpeed, Inc and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except share and per share data)


  June 30, 2006 December 31, 2005
  (Unaudited)  
Assets  
 
Cash and cash equivalents $ 37,495
$ 37,070
Reverse repurchase agreements with related parties 140,666
141,365
Total cash and cash equivalents 178,161
178,435
Fixed assets, net 56,412
58,291
Investments 7,787
7,742
Goodwill 12,184
12,184
Other intangibles, net 9,820
11,356
Receivables from related parties 8,627
4,345
Other assets 15,831
8,581
Total assets $ 288,822
$ 280,934
Liabilities and Stockholders' Equity  
 
Current liabilities:  
 
Payables to related parties 4,099
7,588
Accounts payable and accrued liabilities 26,619
19,649
Total current liabilities 30,718
27,237
Deferred income 7,384
7,593
Total liabilities 38,102
34,830
Commitments and Contingencies —
—
Stockholders' Equity:  
 
Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 35,541,521 and 34,387,380 shares issued at June 30, 2006 and December 31, 2005, respectively 355
343
Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 21,139,270 and 22,139,270 shares issued and outstanding at June 30, 2006 and December 31, 2005, respectively convertible to Class A common stock 211
221
Additional paid-in capital 298,274
294,987
Unearned stock based compensation (763
)
 (1,592
)
Treasury stock, at cost; 6,449,991 and 6,488,047 shares of Class A common stock at June 30, 2006 and December 31, 2005, respectively (62,132
)
 (62,486
)
Retained earnings 14,775
14,631
Total stockholders' equity 250,720
246,104
Total liabilities and stockholders' equity $ 288,822
$ 280,934


eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited)
(in thousands, except per share data)


  Three Months Ended Six Months Ended
  June 30,
2006		 June 30,
2005		 June 30,
2006		 June 30,
2005
Revenues:  
 
 
 
Transaction revenues  
 
 
 
Fully electronic transactions with related parties $ 15,704
$ 18,804
$ 31,385
$ 39,241
Fully electronic transactions with unrelated parties 1,601
—
2,639
—
Total fully electronic transactions 17,305
18,804
34,024
39,241
Voice-assisted brokerage transactions with related parties 6,648
6,444
13,903
12,938
Screen-assisted open outcry transactions with related parties 1,438
403
2,864
810
Total transaction revenues 25,391
25,651
50,791
52,989
Software Solutions fees from related parties 7,897
6,657
15,388
12,761
Software Solutions and licensing fees from unrelated parties 3,572
3,765
7,371
7,942
Insurance recovery —
—
3,500
—
Interest income 2,093
1,382
4,455
2,667
Total revenues 38,953
37,455
81,505
76,359
Expenses:  
 
 
 
Compensation and employee benefits 12,372
12,890
26,230
25,941
Amortization of software development costs and other intangibles 5,627
4,504
12,517
9,170
Other occupancy and equipment 11,646
7,536
20,279
14,945
Professional and consulting fees 2,225
2,129
4,135
5,070
Communications and client networks 2,000
1,882
4,027
3,638
Marketing 265
369
597
862
Administrative fees to related parties 3,670
3,422
7,097
7,299
Amortization of business partner and non-employee securities —
143
19
260
Acquisition related costs —
4,124
—
4,124
Other expenses 1,915
2,863
3,960
5,354
Total operating expenses 39,720
39,862
78,861
76,663
(Loss) income before income taxes (767
)
 (2,407
)
 2,644
(304
)
Income tax (benefit) provision (391
)
 (949
)
 1,000
(185
)
Net (loss) income $ (376
)
 $ (1,458
)
 $ 1,644
$ (119
)
Per share data:  
 
 
 
Basic (loss) earnings per share $ (0.01
)
 $ (0.03
)
 $ 0.03
$ (0.00
)
Diluted (loss) earnings per share $ (0.01
)
 $ (0.03
)
 $ 0.03
$ (0.00
)
Basic weighted average shares of common stock outstanding 50,142
51,281
50,207
52,205
Diluted weighted average shares of common stock outstanding 50,142
51,281
51,150
52,205


eSpeed, Inc. and Subsidiaries
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data)


  Three Months Ended Six Months Ended
  June 30,
2006		 June 30,
2005		 June 30,
2006		 June 30,
2005
Revenues:  
 
 
 
Transaction revenues  
 
 
 
Fully electronic transactions with related parties $ 15,704
$ 18,804
$ 31,385
$ 39,241
Fully electronic transactions with unrelated parties 1,601
—
2,639
—
Total fully electronic transactions 17,305
18,804
34,024
39,241
Voice-assisted brokerage transactions with related parties 6,648
6,444
13,903
12,938
Screen-assisted open outcry transactions with related parties 1,438
403
2,864
810
Total transaction revenues 25,391
25,651
50,791
52,989
Software Solutions fees from related parties 7,897
6,657
15,388
12,761
Software Solutions and licensing fees from unrelated parties 3,572
3,765
7,371
7,942
Interest income 2,093
1,382
4,056
2,667
Total non-GAAP revenues 38,953
37,455
77,606
76,359
Expenses:  
 
 
 
Compensation and employee benefits 12,797
12,890
26,431
25,941
Amortization of software development costs and other intangibles 5,627
4,504
11,354
9,170
Other occupancy and equipment 8,383
7,536
16,372
14,945
Professional and consulting fees 1,435
1,093
2,598
2,052
Communications and client networks 2,000
1,882
4,027
3,638
Marketing 265
369
597
862
Administrative fees to related parties 3,670
3,422
7,097
7,299
Other expenses 1,915
2,863
3,961
5,354
Total non-GAAP operating expenses 36,092
34,559
72,437
69,261
Non-GAAP income before income taxes 2,861
2,896
5,169
7,098
Non-GAAP income tax provision 1,015
1,026
1,956
2,552
Non-GAAP net operating income 1,846
1,870
3,213
4,546
Non-operating (loss) income:  
 
 
 
Amortization of business partner and non-employee securities, net of tax —
(92
)
 (11
)
 (166
)
Litigation costs, net of tax (513
)
 (638
)
 (955
)
 (1,901
)
Acquisition related costs, net of tax —
(2,598
)
 —
(2,598
)
Accelerated depreciation, net of tax —
—
(689
)
 —
Office relocation cost, net of tax (1,978
)
 —
(2,360
)
 —
Tax settlement, net of tax 269
—
373
—
Insurance recovery, net of tax —
—
2,073
—
Total non-operating loss (2,222
)
 (3,328
)
 (1,569
)
 (4,665
)
Net (loss) income $ (376
)
 $ (1,458
)
 $ 1,644
$ (119
)
Per share data:  
 
 
 
Basic non-GAAP income before income taxes per share $ 0.06
$ 0.06
$ 0.10
$ 0.14
Basic non-GAAP tax provision per share $ 0.02
$ 0.02
$ 0.04
$ 0.05
Basic non-GAAP net operating income per share $ 0.04
$ 0.04
$ 0.06
$ 0.09
Basic non-operating (loss) income per share $ (0.05
)
 $ (0.07
)
 $ (0.03
)
 $ (0.09
)
Basic GAAP (loss) earnings per share $ (0.01
)
 $ (0.03
)
 $ 0.03
$ (0.00
)
Diluted non-GAAP income before income taxes per share $ 0.06
$ 0.06
$ 0.10
$ 0.14
Diluted non-GAAP tax provision per share $ 0.02
$ 0.02
$ 0.04
$ 0.05
Diluted non-GAAP net operating income per share $ 0.04
$ 0.04
$ 0.06
$ 0.09
Diluted non-operating (loss) income per share $ (0.05
)
 $ (0.07
)
 $ (0.03
)
 $ (0.09
)
Diluted GAAP (loss) earnings per share $ (0.01
)
 $ (0.03
)
 $ 0.03
$ (0.00
)
Basic weighted average shares of common stock outstanding 50,142
51,281
50,207
52,205
Diluted weighted average shares of common stock outstanding 50,142
51,281
51,150
52,205
Additional data:  
 
 
 
Non-GAAP pre-tax operating margin 7.3
%
 7.7
%
 6.7
%
 9.3
%


eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)


  Three Months Ended Six Months Ended
  June 30,
2006		 June 30,
2005		 June 30,
2006		 June 30,
2005
Cash flows from operating activities:  
 
 
 
Net (loss) income $ (376
)
 $ (1,458
)
 $ 1,644
$ (119
)
Adjustments to reconcile net income to net cash provided by operating activities:  
 
 
 
Depreciation and amortization 9,008
7,072
18,853
14,170
Gain on insurance recovery from related parties —
—
(3,500
)
 —
Equity in net loss (income) of unconsolidated investments (23
)
 (6
)
 (45
)
 15
Deferred income tax expense (1,707
)
 (566
)
 (602
)
 (443
)
Stock based compensation 509
679
1,082
1,332
Tax benefit from employee stock option exercises 24
46
93
84
Excess tax benefits from stock based comp 8
—
(39
)
 —
Issuance of securities under employee benefit plan —
63
—
125
Changes in operating assets and liabilities:  
 
 
 
Receivable from related parties (4,068
)
 (6,060
)
 (4,676
)
 (4,430
)
Other assets (4,119
)
 525
(7,230
)
 (498
)
Payable to related parties (1,225
)
 2,154
(3,489
)
 (2,667
)
Accounts payable and accrued expenses 6,380
6,207
7,479
2,324
Deferred income (105
)
 (105
)
 (209
)
 (209
)
Net cash provided by operating activities 4,306
8,551
9,361
9,684
Cash flows from investing activities:  
 
 
 
Insurance proceeds from related parties 3,500
—
3,500
0
Purchase of fixed assets (2,563
)
 (3,853
)
 (4,668
)
 (7,466
)
Capitalization of software development costs (4,115
)
 (3,944
)
 (8,300
)
 (9,523
)
Capitalization of patents and related defense costs (334
)
 (591
)
 (575
)
 (1,099
)
Net cash used in investing activities (3,512
)
 (8,388
)
 (10,043
)
 (18,088
)
Cash flows from financing activities:  
 
 
 
Purchase of Class A common stock —
(7,827
)
 —
(19,437
)
Proceeds from exercises of stock options and warrants 128
208
369
312
Excess tax benefits from stock based comp (8
)
 —
39
—
Receivable from broker on stock option exercises —
(49
)
 —
—
Net cash provided by (used in) financing activities 120
(7,668
)
 408
(19,125
)
Net increase (decrease) in cash and cash equivalents 914
(7,505
)
 (274
)
 (27,529
)
Cash and cash equivalents at beginning of period 12,195
12,960
37,070
19,884
Reverse repurchase agreements with related parties at beginning of period 165,052
176,704
141,365
189,804
Total cash and cash equivalents at beginning of period 177,247
189,664
178,435
209,688
Cash and cash equivalents at end of period 37,495
20,567
37,495
20,567
Reverse repurchase agreements with related parties at end of period 140,666
161,592
140,666
161,592
Total cash and cash equivalents at end of period $ 178,161
$ 182,159
$ 178,161
$ 182,159
Supplemental cash information:  
 
 
 
Cash paid for income taxes $ 99
$ —
$ 99
$ 21
Dividend distribution to Cantor —
—
1,500
—
Contribution of license from Cantor —
—
1,500
—
Conversion of Class B common stock to Class A common stock —
—
10
—


eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF FREE CASH FLOWS (unaudited)
(in thousands)


  Three Months Ended Six Months Ended
  June 30,
2006		 June 30,
2005		 June 30,
2006		 June 30,
2005
Non-GAAP income before income taxes $ 2,861
$ 2,896
$ 5,169
$ 7,098
Depreciation and amortization 9,008
7,072
18,853
14,170
Other non-cash and non-operating items (3,134
)
 (4,566
)
 (1,527
)
 (5,929
)
Non-GAAP income before income taxes adjusted for depreciation, amortization and other 8,735
5,402
22,495
15,339
Income tax (provision) benefit on non-GAAP operating income (1,015
)
 (1,026
)
 (1,956
)
 (2,552
)
Income tax benefit (provision) on non-operating income (loss) 1,406
1,976
956
2,738
Deferred income tax expense (1,707
)
 (566
)
 (602
)
 (443
)
Tax benefit from stock option exercises 24
46
93
84
Income taxes paid 99
—
99
21
(Increase) decrease in current income tax payable (1,193
)
 430
(1,410
)
 (152
)
Changes in related party receivable and payable, net (5,293
)
 (3,907
)
 (11,665
)
 (7,098
)
Changes in other operating assets and liabilities, net 2,057
6,626
(59
)
 1,595
Net cash provided by operating activities 4,306
8,551
9,361
9,684
Insurance proceeds from related parties 3,500
—
3,500
—
Purchases of fixed assets (2,563
)
 (3,853
)
 (4,668
)
 (7,466
)
Capitalization of software development costs (4,115
)
 (3,944
)
 (8,300
)
 (9,523
)
Capitalization of patents and related defense costs (334
)
 (591
)
 (575
)
 (1,099
)
Free cash flows 794
163
(682
)
 (8,404
)
Related party receivable and payable, net 5,293
3,907
11,665
7,098
Free cash flows, net of related party activity $ 6,087
$ 4,070
$ 10,983
$ (1,306
)


eSpeed, Inc. and Subsidiaries
RECONCILIATION of NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited)
(in thousands)


  Three Months Ended Six Months Ended
  June 30,
2006		 June 30,
2005		 June 30,
2006		 June 30,
2005
Total non-GAAP revenues $ 38,953
$ 37,455
$ 77,606
$ 76,359
Insurance proceeds [a] —
—
3,500
—
Tax settlement [b] —
—
399
—
Total GAAP revenues $ 38,953
$ 37,455
$ 81,505
$ 76,359
Total non-GAAP operating expenses $ 36,092
$ 34,559
$ 72,437
$ 69,261
Amortization of business partner and non-employee securities [c] —
143
19
260
Litigation costs [d] 790
1,036
1,537
3,018
Tax settlement [e] (425
)
 —
(201
)
 —
Accelerated amortization [f] —
—
1,162
—
Office relocation costs [g] 3,263
—
3,907
—
Acquisition related costs [h] —
4,124
—
4,124
Total GAAP operating expenses $ 39,720
$ 39,862
$ 78,861
$ 76,663
Non-GAAP income before income taxes $ 2,861
$ 2,896
$ 5,169
$ 7,098
Sum of reconciling items = [a] + [b] – [c] – [d] – [e] – [f] – [g] – [h] (3,628
)
 (5,303
)
 (2,525
)
 (7,402
)
GAAP (loss) income before income taxes $ (767
)
 $ (2,407
)
 $ 2,644
$ (304
)
Non-GAAP income tax provision $ 1,015
$ 1,026
$ 1,956
$ 2,552
Income tax expense on non-operating income [i] (1,406
)
 (1,975
)
 (956
)
 (2,737
)
GAAP income tax provision $ (391
)
 $ (949
)
 $ 1,000
$ (185
)
Non-GAAP net operating income $ 1,846
$ 1,870
$ 3,213
$ 4,546
Sum of reconciling items = [a] + [b] – [c] – [d] – [e] – [f] – [g] – [h] – [i] (2,222
)
 (3,328
)
 (1,569
)
 (4,665
)
GAAP net (loss) income $ (376
)
 $ (1,458
)
 $ 1,644
$ (119
)


eSpeed, Inc. and Subsidiaries
Quarterly Market Activity Report

The following table provides certain volume and transaction count information on the eSpeed system for the periods indicated.


            % Change % Change
Volume (in billions) 2Q05 3Q05 4Q05 1Q06 2Q06 2Q06 vs 1Q06 2Q06 vs 2Q05
Fully Electronic Volume – Excluding New Products 7,111
8,014
7,500
8,957
10,235
14.3
%
 43.9
%
Fully Electronic Volume – New Products* 506
376
540
524
744
42.0
%
 47.0
%
Voice-Assisted Volume 7,401
8,576
7,608
8,093
8,618
       6.5
%
 16.4
%
Total Electronic Volume 15,018
16,966
15,648
17,574
19,597
    11.5
%
 30.5
%
Electronic Transaction Count       
 
 
 
 
 
 
Fully Electronic Transactions – Excluding New Products 1,304,403
1,642,579
1,640,167
1,971,347
2,035,458
3.3
%
 56.0
%
Fully Electronic Transactions – New Products* 91,408
115,483
111,801
131,700
138,421
5.1
%
 51.4
%
Voice-Assisted Transactions 215,229
224,291
193,742
228,124
202,600
(11.2
%)
    (5.9
%)
Total Transactions 1,611,040
1,982,353
1,945,710
2,331,171
2,376,479
     1.9
%
 47.5
%
eSpeed Equities Direct Access (Number of Shares Traded In Millions) 178
154
147
203
171
(15.7
%)
    (4.0
%)
Trading Days 64
64
61
62
63
 
 
* New Products defined as 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.

    


Global Interest Rate Futures Volume(1)  
 
 
 
 
 
CBOT – US Treasury Contracts 120,086,840
109,470,625
101,854,952
127,606,543
128,443,758
0.7
%
 7.0
%
CME – Euro $ Contracts 117,034,054
105,199,005
97,306,869
117,284,097
127,350,219
8.6
%
 8.8
%
EUREX – Bund Contracts 80,150,635
66,780,116
68,817,862
85,217,459
88,078,646
3.4
%
 9.9
%
Fed UST Primary Dealer Volume (in billions)(2)  
 
 
 
 
 
 
UST Volume 36,749
34,554
32,820
34,810
33,688
(3.2
%)
 (8.3
%)
Average Daily UST Volume 574
540
538
561
535
(4.8
%)
 (6.9
%)
NYSE – Volume (shares traded) – in millions(3) 100,439
98,074
105,879
108,447
121,582
12.1
%
 21.1
%
Transaction Value – in millions 3,456,359
3,513,352
3,738,882
4,072,426
4,627,787
13.6
%
 33.9
%
NASDAQ – Volume (shares traded) – in millions(4) 112,473
104,927
110,647
128,566
134,155
4.3
%
 19.3
%
Transaction Value – in millions 2,467,331
2,353,027
2,584,578
3,070,980
3,031,230
(1.3
%)
 22.9
%
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 2005 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05
Volume Data (in billions)  
 
 
 
 
 
Fully Electronic 2,027
2,229
2,565
2,524
2,499
2,595
Voice 1,550
1,628
1,548
1,922
2,116
3,363
Total 3,577
3,857
4,113
4,445
4,614
5,959
Transaction Count  
 
 
 
 
 
Fully Electronic 341,336
362,482
422,970
440,972
452,148
502,691
Voice 64,431
59,901
64,797
64,006
67,051
84,172
Total 405,767
422,383
487,767
504,978
519,199
586,863
Trading Days 20
19
22
21
21
22

    


Fiscal Year 2006 Jan'06 Feb'06 Mar'06 Apr'06 May'06 Jun'06
Volume Data (in billions)  
 
 
 
 
 
Fully Electronic 2,994
2,923
3,564
3,320
3,870
3,789
Voice 2,545
2,502
3,046
2,415
3,254
2,949
Total 5,539
5,425
6,609
5,735
7,124
6,738
Transaction Count  
 
 
 
 
 
Fully Electronic 672,749
643,969
786,329
685,273
782,203
706,403
Voice 76,852
70,844
80,428
59,405
73,679
69,516
Total 749,601
714,813
866,757
744,678
855,882
775,919
Trading Days 20
19
23
19
22
22

Trading Days
2006
Q1 Q2
Q3
Q4
62 63
63
62
2005
Q1 Q2
Q3
Q4
61 64
64
61