eTrade 2011 Annual Report Download - page 39
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DART volume increased 5% to 157,475 for the year ended December 31, 2011 compared to 2010. Option-
related DARTs as a percentage of total DARTs represented 21% of trading volume for the year ended
December 31, 2011 compared to 17% in 2010. Exchange-traded funds-related DARTs as a percentage of total
DARTs represented 11% of trading volume for the year ended December 31, 2011 compared to 10% in 2010.
Average commission per trade decreased 2% to $11.01 for the year ended December 31, 2011 compared to
2010. The decrease was driven by a change in the customer mix; specifically customers who have a higher
commission per trade traded less during the year compared to our active trader customers, who generally have
lower commission per trade, when compared to 2010.
Fees and Service Charges
Fees and service charges decreased 8% to $130.4 million for the year ended December 31, 2011 compared
to 2010. The decrease for the year ended December 31, 2011 was primarily due to the elimination of all account
activity fees, which took effect in the second quarter of 2010.
Principal Transactions
Principal transactions increased 2% to $105.4 million for the year ended December 31, 2011 compared to
2010. Principal transactions are derived from our market making business in which we act as a market-maker for
our brokerage customers’ orders as well as orders from third party customers. The increase in principal
transactions revenue was driven by a favorable mix of trading volume and revenue earned per share, as well as a
continued focus on expanding our external customer base, when compared to 2010.
Gains on Loans and Securities, Net
Gains on loans and securities, net were $120.2 million for the year ended December 31, 2011 compared to
$166.2 million in 2010, as shown in the following table (dollars in millions):
Year Ended Variance
December 31, 2011 vs. 2010
2011 2010 Amount %
Gains on loans, net $ 0.1 $ 6.3 $ (6.2) *
Gains on available-for-sale securities, net 124.4 160.7 (36.3) (23)%
Gains (losses) on trading securities, net (1.9) 0.2 (2.1) *
Hedge ineffectiveness (2.4) (1.0) (1.4) *
Gains on securities, net 120.1 159.9 (39.8) (25)%
Gains on loans and securities, net $120.2 $166.2 $(46.0) (28)%
* Percentage not meaningful.
The decrease of 28% to $120.2 million in gains on loans and securities, net for the year ended December 31,
2011 compared to 2010, was primarily due to more trading volatility in 2010 when compared to 2011.
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