Full Description

Jefferies Group, Inc., along with its subsidiaries, operates as a full-service global investment bank and institutional securities firm serving companies and their investors. The Company offers these companies capital markets, merger and acquisition (M&A), restructuring and other financial advisory services. The Company provides investors fundamental research and trade execution in equity, equity-linked, and fixed income securities, including corporate bonds, United States government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans and emerging markets debt, as well as commodities and derivatives. Jefferies Group, Inc. also provides asset management services and products to institutions and other investors. The Company operates in two business segments: Capital Markets and Asset Management. In March 2009, Jefferies Group, Inc. completed the acquisition of Depfa First Albany Securities LLC, from DEPFA Bank plc.

Capital Markets

The Company’s Capital Markets activity includes its securities execution activities, including sales, trading and research in equity, equity derivatives, convertible, high-yield and investment-grade, fixed-income securities and prime brokerage, and its investment banking activities, which include capital market transactions, merger and acquisition and other advisory transactions. In addition, Jefferies Group, Inc.’s Capital Markets activities include securities lending and commodity-related trading. The Company is primarily focused on serving corporations and institutional investors.

Jefferies Group, Inc.’s Investment Banking Division offers its clients, primarily growing and mid-sized companies, a range of financial advisory services, as well as debt, equity and convertible capital raising services. The Company offers direct placements, private equity, private placements, initial public offerings, and follow-on offerings of equity and equity-linked convertible securities. Jefferies Group, Inc. offers a range of debt financing for growing and middle-market companies and sponsors. The Company focuses on structuring and distributing public and private debt in leveraged finance transactions, including leveraged buy-outs, acquisitions, growth capital financings, recapitalizations and Chapter 11 exit financings.

Jefferies Group, Inc.’s Equities Division consists of equity research, sales and trading, electronic execution services, equity derivatives, securities lending and prime brokerage. The Company connects a network of institutional investors worldwide. Jefferies Group, Inc. provides listed block trades, National Association of Securities Dealers Automated Quotation (NASDAQ) market making, bulletin board trading, capital markets/origination, risk arbitrage, statistical arbitrage, special situations, pair trades, relative value, and portfolio and electronic trading, as well as American depository receipts and ordinary shares.

The Company’s clients include domestic and international investors, such as investment advisors, banks, mutual funds, insurance companies, hedge funds, and pension and profit sharing plans. The Company’s Private Client Services group focuses on serving smaller institutions, family offices and high-net-worth individuals.

Through its subsidiary, Jefferies Execution Services, Inc., the Company provides agency-only execution services for stocks and options listed on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) and all other major exchanges, as well as Over The Counter (OTC). During the year ended December 31, 2007, Jefferies Group, Inc. traded over 33 billion shares utilizing its execution platform, which includes floor brokerage, electronic connectivity, direct access and listed options trading. In addition, the Company offers quantitative and algorithmic trading solutions, as well as access to liquidity in order to access the global markets. The Company provides long and short-term investment ideas. The Company’s analysts use a variety of quantitative and qualitative tools, integrating field analysis, channel checks and ongoing dialogue with the managements of the companies they cover.

The Company offers equity derivatives for investors. Jefferies Group, Inc. focuses on serving the diverse needs of its institutional, corporate and private client base across multiple product lines, offering listed options, exchange traded funds (ETFs) and OTC options and swaps. In connection with both its trading and brokerage activities, Jefferies Group, Inc. borrows securities to cover short sales and to complete transactions, in which customers have failed to deliver securities by the required settlement date, and lends securities to other brokers and dealers for similar purposes. In addition, the Company has active securities borrowed and lending matched book business whereby it borrows securities from one party and lends them to another party. In 2007, Jefferies Group, Inc. expanded its securities lending focus internationally, with additional professionals in London and New York. The Company offers prime brokerage services to hedge funds, money managers, and registered investment advisors.

Jefferies Group, Inc. Fixed Income and Commodities division consists of its high yield secondary market activities, convertibles department, investment-grade, fixed-income department, research and its commodity trading group. On April 2, 2007, the Company reorganized Jefferies High Yield Trading, LLC (JHYT) to conduct the secondary market trading activities previously performed by the High Yield division of Jefferies and the High Yield Funds. JHYT is a registered broker-dealer engaged in the secondary sales and trading of high yield securities and special situation securities, including bank debt, post-reorganization equity, public and private equity, equity derivatives, credit default swaps and other financial instruments. JHYT is a wholly owned subsidiary of Jefferies High Yield Holdings, LLC (JHYH).

Jefferies Group, Inc. offer sales, trading and analysis of United States domestic and international convertible bonds, convertible preferred shares, closed-end funds, warrants and structured products. The Company provides fixed-income transaction execution for institutions acting as principal, through a combination of sales and trading coverage, and a technology platform.

Jefferies Group, Inc.’s commodities group, Jefferies Financial Products, LLC (JFP), offers swaps, options and other derivatives typically linked to various commodity indexes, and is a provider of liquidity in exchange-traded commodity index contracts. JFP provides financial products and commodity index capabilities to pension funds, mutual funds, sovereigns, foundations, endowments and other institutional investors seeking exposure to commodities as an asset class.

The Company advises buyers and sellers on sales, divestitures, acquisitions, mergers, tender offers, joint ventures, strategic alliances and takeover defenses. Jefferies Group, Inc. can facilitate and finance acquisitions and recapitalizations on both buy-side and sell-side mandates. The Company offer advisory services in connection with exchange offers, consent solicitations, capital raising, recapitalization, restructuring and distressed M&A activity. It also provides advice and support in the structuring, valuation and placement of securities issued in recapitalizations and restructurings. We represent issuers, bondholders and creditors, as well as buyers and sellers of assets. It represents issuers, bondholders and creditors, as well as buyers and sellers of assets. Jefferies Group, Inc.’s fund placement group, Helix Associates, is a placement agent serving private equity fund sponsors and investors throughout North America, Europe, the Middle East, Japan and Australia.

Asset Management

The Company provides investment management services to various private investment funds through Jefferies Asset Management (JAM) and Jefferies Capital Management, Inc. (JCM). JAM is registered as an investment adviser with the Securities Exchange Commission (SEC). Jefferies Group, Inc.’s private fund products consist of long-short equity and fixed income funds. In Europe, Jefferies Group, Inc. offers investment solutions for long-only strategies in global convertible bonds to pension funds, insurance companies and private banking clients.