eTrade 2001 Annual Report Download - page 31

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(Sweden) and E*TRADE UK (Holdings) Limited (United Kingdom). Moreover, E*TRADE Financial has institutional offices in eight
countries with trading capabilities in 38 markets.
International Consolidation
We see considerable consolidation opportunities in the international retail sector during 2002. We intend to actively pursue such
opportunities. We have already begun this process with the acquisition in the fourth quarter of 2001 of accounts in HongKong from
2Cube, an online retail brokerage joint venture between JP Morgan Chase & Co. and PacificCentury Cyberworks, Ltd. We will also
look to additional internal consolidation within our existing European operations to obtain maximum efficiencies and scalabilities.
This will include the consolidation of our UK retail and institutional operations in a new facility during the second quarter of 2002 and
the integration of the retail operations in Norway and Sweden.
Products and Services
Our global retail subsidiaries offer a variety of products and services including online stock and options trading in local markets, as
well as comprehensive market information provided by Reuters, Big Charts and local news vendors. Trading in U.S. equity markets is
currently available in Norway, Sweden and Israel through our Global platform and in Germany, Hong Kong and Denmark through an
introducing broker arrangement. In some cases, affiliates offer mutual funds, access to IPOs, and banking capabilities. During fiscal
2002, we intend to continue to improve the products and services we offer to customers through our international affiliates. In fiscal
year 2001, we secured banking licenses in both Germany and Denmark. One of our primary focuses will be to continue to roll out
cross-border trading, enabling foreign retail investors to access U.S. equities affordably, online and in real-time and to introduce our
customers to the financial products available in the U.S.
26
Table of Contents
During fiscal year 2001, we completed the development of a web-based platform that will provide institutional customers with online
trading and administration solutions. We began the roll-out of certain administrative solutions such as access to customer statements
during the third quarter of fiscal 2001. Our platform provides institutional customers with direct access to international exchanges and
basket trading. Moreover, the platform offers our institutional customers real-time, online access to statements and electronic
settlement capabilities. This platform was developed by integrating the current E*TRADE Institutional product offering with the
technology resources of E*TRADE Technologies.
Customers and Markets
As the sophistication of investors around the globe grows, we intend to provide our investors with the content and tools to enable
trading in multiple markets and multiple products from a single-access electronic gateway. On the retail side, our focus during 2002
will be to provide our international customers with access to a greater range of products, including U.S. dollar denominated bank
products, as well as U.S. margin and trading accounts currently available only to U.S. customers. For our institutional customers, we
have developed a fully-electronic network to allow more efficient access to global exchanges (as discussed above in Products and
Services) and are in the process of completing the roll-out of the full suite of tools to our institutional customers.
Operations
Clearing
2002. EDGAR Online, Inc.