Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Chris Donat with Sandler O'Neill. You may proceed.
Chris Donat – Sandler O'Neill
Good morning, Bob, good morning, Howard.
Bob Gasser
Good morning, Chris.
Howard Naphtali
Good morning, Chris.
Chris Donat – Sandler O'Neill
As far as the clearing in Europe goes, I'm just trying to get a rough sense of what the transaction expenses are currently right now. Is it safe to say like 40% of the 18.6 million are revenue, is that –
Bob Gasser
As I indicated, it's around 37% or 37.9% rather in the fourth quarter.
Chris Donat – Sandler O'Neill
Okay. And I can take that total European revenue as being – that's the right number to look at, that's not a – it's not some subset of that?
Bob Gasser
It's commission revenues, the right number to look at.
Chris Donat – Sandler O'Neill
Okay. Okay.
Howard Naphtali
And, Chris, there is both a financial and a strategic element to that as well. As I alluded to in my remarks talking about as these multilateral trading facilities emerge, they have been setting up their own central clearing organizations and so from a strategic perspective in maintaining the pace of connecting and trading and clearing with those MTFs, our view is that that will remain an issue over the course of '09 and for the foreseeable future. So there's both a financial and a strategic element to our plan.
Chris Donat – Sandler O'Neill
Okay. And you said before it's a plan at this point, it's not a done deal that you're all the way committed to doing it, is that right?
Bob Gasser
Yes. Something that will be implemented over the course of this year, really to position 2010. It's a fairly lengthy heavy lift.
Chris Donat – Sandler O'Neill
Right. So it's even longer than the rollout on the US side when you went self clearing?
Bob Gasser
Yes. We haven't started the rollout. We're still in various vendor selection phases of the project.
Chris Donat – Sandler O'Neill
Okay.
Howard Naphtali
But it is integrated into our 2009 plan.
Chris Donat – Sandler O'Neill
Okay. And then just trying to get a sense on run rate expenses, I appreciate the guidance you gave on some of the key issues, Howard. Just thinking about the G&A level, I know you took that bump up this quarter because of the one-time items. Can we expect to see more one-time items in that line? And also, I guess, depreciation in the past for software, is that going to drop off a little bit, maybe, with less investment?
- To read the full transcript on Seeking Alpha, click here »
