eTrade 2001 Annual Report Download - page 84
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We rely on a number of third parties to process our transactions or provide information, products or services to our customers,
including online and Internet service providers, back office processing organizations, market makers and other service providers. If
any of these third parties are unable to sufficiently meet our needs or those
74
Table of Contents
of our customers for any reason (including technology failures, capacity failures or their own bankruptcies), our business could be
harmed.
If we are unable to quickly introduce new products and services that satisfy changing customer needs, we could lose customers
and have difficulty attracting new customers
Our future profitability depends significantly on our ability to innovate by developing and enhancing our services and products. There
are significant challenges to such development and enhancement, including technical risks. There can be no assurance that we will be
successful in achieving any of the following:
•
effectively using new technologies,
•
adapting our services and products to meet emerging industry standards,
•
developing, introducing and marketing service and product enhancements, or
•
developing, introducing and marketing new services and products to meet customer demand.
Additionally, these new services and products, if they are developed, may not adequately meet the requirements of the marketplace or
achieve market acceptance. If we are unable to develop and introduce enhanced or new services and products quickly enough to
respond to market or customer requirements, or if they do not achieve market acceptance, our business could be harmed.
Risks associated with trading transactions at our specialist/market-maker could result in trading losses
A majority of our specialist and market-maker revenues at Dempsey are derived from trading by Dempsey as a principal. Dempsey
may incur trading losses relating to the purchase, sale or short sale of securities for its own account. In any period, Dempsey also may
incur trading losses in its specialist stocks and market-maker stocks for reasons such as price declines, lack of trading volume and the
required performance of specialist and market-maker obligations. From time to time, Dempsey may have large position concentrations
in securities of a single issuer or issuers engaged in a specific industry. In general, because Dempsey’ s inventory of securities is
marked to market on a daily basis, any downward price movement in those securities will result in a reduction of our revenues and
2002. EDGAR Online, Inc.