E-Trade Reports August Trading Activity

NEW YORK — Online broker E*TRADE Financial Corporation has released its Monthly Activity Report for August 2017.

Daily Average Revenue Trades (DARTs) for August were 206,572, a one percent decrease from July and a 44 percent increase from the year-ago period. Derivatives represented 31 percent of DARTs during the month. The Company added 40,831 gross new brokerage accounts in August and ended the month with approximately 3.6 million brokerage accounts—an increase of 19,031 from July.

Net new brokerage assets were $1.1 billion in the month. During the month, customer security holdings increased by $6.4 billion, and brokerage-related cash decreased by $0.2 billion to $51.5 billion. Customer margin balances increased $0.4 billion, ending the month at $8.5 billion. Customers were net buyers of approximately $1.3 billion in securities during the month.

The company reported total accounts of 5,376,556 at the end of August.

Monthly Activity Data

Aug-17 Jul-17 Aug-16 % Chg. M/M % Chg. Y/Y
Trading days 23.0 19.5 23.0 N.M. N.M.
DARTs 206,572 208,156 143,831 (1)% 44%
Derivative DARTs % 31 % 34 % 23 % (3)% 8%
Gross new brokerage accounts 40,831 29,287 31,481 39% 30%
Gross new stock plan accounts 21,527 32,804 20,312 (34)% 6%
Gross new banking accounts 322 242 349 33% (8)%
Total gross new accounts 62,680 62,333 52,142 1% 20%
Net new brokerage accounts 19,031 (3,007 ) 7,308 N.M. 160%
Net new stock plan accounts (748 ) 18,238 3,412 N.M. N.M.
Net new banking accounts (1,368 ) (1,500 ) (1,880 ) (9)% (27)%
Net new accounts 16,915 13,731 8,840 23% 91%
End of period brokerage accounts 3,578,513 3,559,482 3,284,785 1% 9%
End of period stock plan accounts 1,492,182 1,492,930 1,458,560 —% 2%
End of period banking accounts 305,861 307,229 326,651 —% (6)%
End of period total accounts 5,376,556 5,359,641 5,069,996 —% 6%
Customer margin balances ($B)(1) $ 8.5 $ 8.1 $ 6.5 5% 31%

Customer Assets ($B)

Security holdings $ 267.3 $ 260.9 $ 217.5 2% 23%
Sweep deposits 36.4 35.0 26.7 4% 36%
Customer cash held by third parties(2) 6.7 8.5 11.8 (21)% (43)%
Customer payables (cash) 8.4 8.2 7.7 2% 9%
Brokerage customer assets 318.8 312.6 263.7 2% 21%
Unexercised stock plan holdings (vested) 37.6 37.6 31.0 —% 21%
Savings, checking and other banking assets 5.0 5.1 5.2 (2)% (4)%
Total customer assets $ 361.4 $ 355.3 $ 299.9 2% 21%
Net new brokerage assets(3) $ 1.1 $ 0.1 $ 0.9 N.M. N.M.
Net new banking assets(3) (0.1 ) N.M. N.M.
Net new customer assets(3) $ 1.1 $ $ 0.9 N.M. N.M.
Brokerage related cash $ 51.5 $ 51.7 $ 46.2 —%

11%
Other cash and deposits 5.0 5.1 5.2 (2)% (4)%
Total customer cash and deposits $ 56.5 $ 56.8 $ 51.4 (1)% 10%
Managed products $ 4.7 $ 4.7 $ 3.6 —% 31%
Customer net (buy) / sell activity $ (1.3 ) $ (0.1 ) $ 0.4 N.M. N.M.
(1) Customer margin balances at July 2017 includes margin receivables held on the balance sheet and customer margin balances held by a third party. The balances held by a third party were transferred to E*TRADE during the week of August 7, 2017 in connection with the integration of OptionsHouse.
(2) Customer cash held by third parties is held outside E*TRADE and includes money market funds and sweep deposit accounts at unaffiliated financial institutions. At July 2017, customer cash held by third parties also included customer cash held by a third party clearing firm. These balances were transferred during the week of August 7, 2017 in connection with the integration of OptionsHouse. Customer cash held by third parties is not reflected in the Company’s consolidated balance sheet and is not immediately available for liquidity purposes.
(3) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.