Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of MikeVinciquerra of BMO Capital Markets. Please proceed.
Mike Vinciquerra – BMO Capital Markets
Good morning Kevin. A couple of things, I just want to make it crystal clear. You guys have 300 clients a day that are producing revenue and 29 that are signed but not producing revenue. Was that right?
Kevin W. McAleer
That is correct.
Mike Vinciquerra – BMO Capital Markets
Can you give us any color, you mentioned on the 14 clients that you lost and they were due to mergers and closures, were there any important clients in there? Is 14 a typically high number for you guys in terms of losses in a particular period?
Kevin W. McAleer
You know it is and I want to be clear, they did not all close or consolidate; I think we lost three to competitors. You know frankly in times like this, we are looking very closely at our customer list, obviously these are challenging times and so we are watching our list pretty carefully and I would not expect that that trend will continue, I think that this is an unusually high quarter.
Mike Vinciquerra – BMO Capital Markets
Okay and of the clients you signed, two questions there: One, can you compare their quality, I guess, to the average, revenue production of your average correspondent in terms of potential and then I will come back for my second question.
Kevin W. McAleer
Okay so, the clients in the pipeline, the 29, I think generally speaking are going to be at or above our current average. You know, we are not signing, we are signing fewer small correspondents but I would not say that of the 29 in the pipeline, we necessarily have any potential, but you never know, we could certainly have some homeruns in there but nothing that I could point to right now and say this will be a homerun. We do believe, however, that as some of the previously announced firms, like Scottrade and Monex or Van der Moolen as they come fully onto line, that those will be much better than average clients.
Mike Vinciquerra - BMO Capital Markets
Okay and then a follow on to that is: are you taking more of these new accounts from, from competitors or are you getting a fair number of startups and new operations, I think, Scottrade is an entirely new business for them if I am not mistaken.
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