Full Description

E*TRADE Financial Corporation (E*TRADE), incorporated in 1982, is a financial services company, that provides online brokerage and related products and services primarily to individual retail investors, under the brand E*TRADE Financial. The Company’s products and services include investor-focused banking primarily sweep deposits and savings products and asset gathering. The Company’s subsidiaries include, E*TRADE Bank, which provides investor-focused banking services to retail customers nationwide and deposit accounts insured by the Federal Deposit Insurance Corporation (FDIC); E*TRADE Capital Markets, LLC (ETCM), which is a registered broker-dealer and market-maker; E*TRADE Clearing LLC, which is the clearing firm for the Company’s brokerage subsidiaries and is a wholly-owned operating subsidiary of E*TRADE Bank, and E*TRADE Securities LLC, which is a registered broker-dealer and the primary provider of brokerage services to the customers.

The Company’s retail products consists and services consists of Brokerage and Banking. Brokerage includes automated order placement and execution of United States and international equities, currencies, futures, options, exchange-traded funds, mutual funds and bonds. It also offers quick transfer, wireless account access, extended hours trading, quotes, research and advanced planning tools. Banking includes checking, savings, sweep, money market and certificates of deposit (CD) products that offer online bill pay, quick transfer, unlimited Automated Teller Machine (ATM) transactions on eligible accounts and wireless account access.

Retail

E*TRADE's retail segment offers a suite of financial products and solutions to retail customers, including brokerage and banking products. Retail customers are offered brokerage and banking products and services through the Company’s website, over the phone and in person. In addition to the services above, the retail segment includes employee stock option management software and services, which are provided to corporate customers. This software system facilitates the management of employee option plans, employee stock purchase plans and restricted stock plans, including necessary accounting and reporting functions.

Retail trading and investing products and services include automated order placement and execution, United States equities, futures, options, exchange-traded funds and bond orders; access to international equities in Canada, France, Germany, Hong Kong, Japan and the United Kingdom and, foreign currencies, including the Canadian dollar, Euro, Hong Kong dollar, Yen and Sterling; two-second execution guarantee on all Standard & Poor’s (S&P) 500 stocks and exchange-traded funds; margin accounts allowing customers to borrow against their securities; access to over 7,000 non-proprietary mutual funds; educational services through the Internet, phone or in person and flexible advisory services, including full-service portfolio management, and no fee and no minimum individual retirement accounts. Federal Deposit Insurance Corporation (FDIC)-insured sweep deposit accounts that automatically transfer funds from customer brokerage accounts; interest-earning checking, money market, savings and CD products with FDIC insurance, and access to deposit account balances and transactions, through the Internet, phone or in person.

Institutional

The institutional segment includes the management of the Company’s balance sheet, focusing on asset allocation and managing credit, liquidity and interest rate risks. The retail segment originates margin receivables and customer deposits that are managed by the institutional segment. The institutional segment also includes market-making activities, which match buyers and sellers of securities from both the retail segment and unrelated third parties. As a market maker, the Company takes positions in securities and function as a wholesale trader by combining trading lots to match buyers and sellers of securities.