Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Repetto - Sandler O’Neill.
Richard Repetto - Sandler O’Neill
Good morning, Dave and Adam. The first question is on the equity trading, and you said the mix shift to the low priced stocks in the ETF. The ones that you mentioned in particular did some pretty big reverse splits. So how much did the FAS and FAZ make up? Did the reverse splits really have any impact here, 5 for 1, 1 for 5 and 1 for 10?
David Fisher
Yes, they were a significant part of trading during the quarter. You can see the volume industry wide and our customers traded them as well. With the reverse splits in those stocks, and with [Bway] moving up back into double digits, current customers have clearly shifted their focus more towards options than they had in the second quarter.
We’ve already seen that in July and I think that’s a combination of that change in those stock prices as well as the reduction in volatility. Seeing the VIX back in the 20s, I think customers are more comfortable engaging their option strategies than they were during the first and second quarter. I think the combination of those two has led at least in the initial stages of the third quarter of seeing a mixed shift back towards options.
Richard Repetto - Sandler O’Neill
Got it, thank you. The next question on Optionetics. You have talked about the better part every year to ramp up and I’m sure this has to do with the model and the channel partnership, but if you looked at thinkorswim, you might say that accounts growth there picked up even before the acquisition closed, if that’s legal and possible. I guess the timeframe of the ramp the account acquisition model. Then out of the early accounts, are they more profitable, less profitable than say your traditional optionsXpress account.
David Fisher
Yes, in terms of the time of the integration, especially kind of compared to what you saw with INVESTools or thinkorswim, there is a couple of factor there. First of all, Optionetics had never worked closely with a broker before. They always view themselves as kind of broker neutral, Switzerland, as they like to call it. So they don’t have a lot of ways in their system. So very quickly tie into a broker and the benefits of broker into their product offerings, their seminars, how they teach and even in their website.
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