Business Segments

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Business Segments

Business Segments

As of September 30, 2013, the Company's operating segments comprised the following: (i) Market Making; (ii) Global Execution Services; and (iii) Corporate and Other.

The Market Making segment principally consists of market making in the cash, futures and/or options markets across global equities, fixed income, commodities and foreign currencies. As a market maker, the Company commits capital for trade executions by offering to buy securities from, or sell securities to, institutions and broker-dealers. The Market Making segment primarily includes client direct and exchange-based electronic market making activities, including trade executions as an equities DMM on the NYSE and NYSE Amex. The Company is an active participant in all major global equity and futures exchanges and also trades on substantially all domestic electronic options exchanges. As a complement to electronic market making, the Company’s cash trading business handles specialized orders and also transacts on the OTC Bulletin Board, marketplaces operated by the OTC Markets Group Inc. and the AIM of the London Stock Exchange.

The Global Execution Services segment provides agency execution services and operates trading venues. This segment offers access via its electronic agency-based platforms to markets and self-directed trading in equities, options, fixed income, foreign exchange and futures. In contrast to Market Making, the Global Execution Services segment generally does not act as a principal to transactions that are executed within this segment; however, it will commit capital on behalf of clients as needed, and generally earns commissions for acting as agent between the principals to the trade. Global Execution Services includes high touch equity sales and trading (including exchange traded funds ("ETFs")) aided by its network of sales employees. This segment also facilitates client orders through program, block, and riskless principal trades. Additionally, the Global Execution Services segment includes the FCM business, which provides clients with futures execution and clearing services on major U.S. and European futures and options exchanges.

The Corporate and Other segment invests in strategic financial services-oriented opportunities, allocates, deploys and monitors all capital, and maintains corporate overhead expenses and all other income and expenses that are not attributable to the other segments, including the gain recognized on Knight Common Stock. The Corporate and Other segment also houses functions that support the Company’s other segments such as self-clearing services, including stock lending activities.

The Company’s revenues, income (loss) from continuing operations before income taxes (“Pre-tax earnings”) and total assets by segment are summarized in the following table (in thousands):

	Market Making		Global Execution Services			Corporate and Other		Consolidated Total
For the three months ended September 30, 2013:
Revenues	$	240,110	$	91,366		$	136,343	$	467,819
Pre-tax earnings	47,853		(16,354		)	88,355		119,854
Total assets	3,882,763		1,426,824			1,885,408		7,194,995
For the three months ended September 30, 2012:
Revenues	$	107,672	$	9,258		$	13,672	$	130,602
Pre-tax earnings	8,214		(1,120		)	7,518		14,612
Total assets	1,507,881		25,934			239,490		1,773,305
For the nine months ended September 30, 2013:
Revenues	$	455,678	$	113,701		$	128,744	$	698,123
Pre-tax earnings	55,608		(21,248		)	1,478		35,838
Total assets	3,882,763		1,426,824			1,885,408		7,194,995
For the nine months ended September 30, 2012:
Revenues	$	383,203	$	27,248		$	14,790	$	425,241
Pre-tax earnings	37,976		(3,839		)	787		34,924
Total assets	1,507,881		25,934			239,490		1,773,305

Total Assets for September 30, 2013 do not include Assets within discontinued operations of $6.1 billion.