eTrade 2001 Annual Report Download - page 7

The Domestic Retail Brokerage business is primarily comprised of the activities of our wholly-owned subsidiary, E*TRADE
Securities, which offers domestic retail brokerage services by means of the Internet, automated telephone service, direct modem
access, Internet-enabled wireless devices, live telephone support and our E*TRADE Financial Centers and Zones. During fiscal 2001,
we added the businesses of Web Street and Dempsey into the Domestic Retail Brokerage operations.
The Banking business is comprised primarily of the activities of the Bank, which offers a wide range of FDIC insured and other
banking products, and the former Card Capture Services, Inc., now E*TRADE Access Inc., which operates a nationwide network of
over 11,000 ATMs. During fiscal year 2001, we added the activities of E*TRADE Mortgage to the Banking segment.
The Global and Institutional business includes the activities of E*TRADE Institutional, VERSUS Technologies Corporation (renamed
E*TRADE Technologies Corporation effective January 2, 2001 and referred to herein as “E*TRADE Technologies”), and our
international affiliates, which together provide services to our institutional and international retail customers. Through our network of
affiliates, we have expanded internationally and have launched the first phase of our cross-border trading platform, which allows retail
customers in Sweden and Norway to buy U.S. equities online in real-time. A current focus of the Global and Institutional business is
on the development and launch of an electronic trading platform for institutional customers.
Our Wealth Management and Other business includes our mutual fund operations, E*TRADE Business Solutions Group, Inc.
(“BSG”), E*TRADE Advisory Services, Electronic Investing Corporation (“eInvesting”),
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and other services focused on corporate stock option programs, college savings plans, delivery of electronic advice and money
management, tiered product offerings and activities generated from our corporate operations. As the Wealth Management and Other
operations of our business represent emerging activities that are not material to our consolidated results for segment reporting
purposes, management has combined Wealth Management and Other with the Domestic Retail Brokerage business to form one of
three reportable segments. Banking and Global and Institutional comprise the other two reportable segments with respect to which
management currently evaluates company performance.
For financial information by segment and geographic area for the year ended December 31, 2001, the three months ended December
31, 2000 and the fiscal years ended September 30, 2000 and September 30, 1999, see Note 27 to the Consolidated Financial
Statements. No material part of our consolidated revenue is received from a single customer.
DOMESTIC RETAIL BROKERAGE
Business Overview
Our Domestic Retail Brokerage business is primarily comprised of the activities of E*TRADE Securities and Dempsey. As of
December 31, 2001, we had 3.4 million active brokerage accounts, up 15% from September30, 2000, with assets held in customer
brokerage accounts of $43.5 billion, down 27% from September 30, 2000. Our average daily transaction volume was 109,000 in fiscal
year 2001, 35% less than the average daily transaction volume of 167,000 in fiscal 2000.
Products and Services
Our Domestic Retail Brokerage and related investment services are based upon proprietary transaction-enabling technology and are
2002. EDGAR Online, Inc.