Question-and-Answer Session
Operator
(Operator Instructions) Your first question from come from Richard Repetto - Sandler O’Neill
Richard Repetto - Sandler O’Neill
I guess the first question is on the account growth, it did rebound post July and I’m just trying to see that you are guiding, I think a little bit conservative in 4Q saying it's not going to be back to 2Q levels.
So, just a little bit more color, why wouldn’t you press the gas if you saw improvement towards the end of the quarter, I know these are high acquisition cost, level but it’s still lower than 1Q and 2Q.
David Fisher
We will look at how acquisition is going through the quarter and address our spend appropriately. Just given the levels of spend we were at in the Q3, we didn’t see ramp up so aggressively that would get all the way back to Q2 levels. We want to be cautious about our spend, make sure we are spending effectively, and so while we certainly anticipate spending more than we did in Q3. We don’t anticipate getting all the way back to Q2 level. That being said, if we start seeing a lot of opportunity, we could obviously change that.
One thing to keep in mind is, while portions of the fourth quarter tend to be very strong for new account growth, the last two weeks of the year tend to be very slow with very low levels of spend, and that kind of post thanksgiving week is very slow. So we tend not to spend to a lot there either. So you are just kind of not spending for as many days as you are in say Q2.
Richard Repetto - Sandler O’Neill
Then the next question on payment for the flow, I thought here to say $0.01 to $0.02 per quarter with this additional penny roll out, and that’s strike me as a bit high given, we have already 300 I think roll out or so. A million to two million on your about, seven million or so that you are making payment is that correct?
David Fisher
Rich, right now there is about 50% of industry volumes is treated in pennies, the additional 300 names will take it up to 85% of industry volume. So that is a meaningful increase in volume and the $0.01 to $0.02 is a conservative number, kind of assuming there is no changes in market structure, that kind of react to this additional penny, we are kind of taking things statuesquely as they are today.
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