Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rich Repetto – Sandler O’Neill
Rich Repetto – Sandler O’Neill
Could you go over the contribution from thinkorswim on revenues and expenses? I think you got around it but the general numbers.
Bill Gerber
Basically thinkorswim was a push this year, as we said when we bought thinkorswim so revenues and expenses are basically equal. We still expect the 3% to 7% accretion in 2010 and the double digit accretion we talked about in 2011.
Rich Repetto – Sandler O’Neill
Was it generally around $70 million then revenue and expenses?
Bill Gerber
Yes.
Rich Repetto – Sandler O’Neill
To look at the expenses, if you look quarter to quarter they went up $332 million last quarter ex the auction rate securities $389 million then that’s an incremental $57 million and I know you had thinkorswim for $13 million of last quarter so that would make sense. I’m trying to see you also had some one timers about $18 million last quarter, were there any one timers in this quarter and on the expense side?
Bill Gerber
Yes, there were a couple. We had some integration costs, some profession service project about $6 million; we had some arbitration for about $4 million. There were probably a couple more after that. ARS, you already had the ARS in there.
Rich Repetto – Sandler O’Neill
The sensitivities changed as far as on the balance type sensitivities, color on how that was calculated compared to what the sensitivities were prior quarter?
Bill Gerber
We look at it each quarter we reset it based upon the new balances that are out there and the rates that are prevailing at the time and trying to assess if that happened what would be the change so that’s the main driver.
Rich Repetto – Sandler O’Neill
We’ve seen volatility drop literally eight or nine months in a row and your feeling on the activity rates going into at least the beginning of this year, fiscal ’10 for you.
Fred Tomczyk
The fix has definitely come in here and is at a low point in terms of the last 52 weeks. As Bill said, we’ve seen trading so far in October average around 406,000 trades per day which last year was the highest activity rate over the last three years so very, very healthy. I do expect the activity rate to come off somewhat but I would say so far this year is still at a decent rate and the trades have continued to be at a very good rate. Some of that is the activity rate coming off, I think some of it is the adding of thinkorswim and the capabilities, and some of that is just the fact that we’ve grown our funded account base quite strongly the last two years and that does show up on the trades per day.
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