This conference call, including the 2010 Third Quarter and revised Full-year Business Outlook estimated ranges contained in today's earnings conference call, contain statements and estimates that are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this conference call, the words "anticipate(s)," "anticipated," "anticipation," "assume(s)," "assumption(s)," "become(s)," "belief(s)," "believe(s)," "believed," "could," "designed," "estimate," "estimates," "estimated," "expect(s)," "expected," "expectation(s)," "going forward," "future," "hopeful," "hopefully," "hope(s)," "intend(s)," "intended," "look forward," "may," "might," "opportunity," "opportunities," "outlook(s)," "pending," "plan(s)," "planned," "potential," "scheduled," "shall," "should," "think(s)," "to be," "upcoming," "well-positioned," "will," "wish," "would," and similar expressions, if and to the extent used, are intended to identify forward-looking statements. All forward-looking statements are based largely on current expectations and beliefs concerning future events that are subject to substantial risks and uncertainties. Actual results may differ materially from the results suggested in the conference call. Factors that may cause or contribute to the various potential differences include, but are not limited to, the following:

• negative or other significant changes in the condition of the securities and futures markets, and the financial markets and economy generally (which could cause the company to experience significantly lower revenues, net income and earnings per share, as well as reduced market value of its publicly-traded shares of common stock), or unexpected positive changes (which could have the opposite effect);
• changes in the combined average volume of the major U.S. equities and futures exchanges and in market volatility, which tend to significantly affect customer trading volume at TradeStation (for example, sharply increased market volatility in May 2010, and the 2010 second quarter as a whole, as compared to the first quarter in 2010, likely contributed to the significant increase in client trading volume in the 2010 second quarter -- and more recent lower volatility has likely contributed to lower client trading volume since May 2010);
• changes in U.S. Treasury Note and/or Treasury Bill rates of interest that are inconsistent with, or different from, the company's assumption that there will be no increases in 2010, that is, that those rates will remain at close to zero percent throughout 2010;
• the company's ability (or lack thereof), based upon market conditions, the level of success of its marketing and product development and enhancement efforts, product and service quality and reliability, competition (including both price and quality-of-offering competition, which are intense) and other factors (such as rule based trading not growing generally to the extent the company believes it will), to achieve significant, or any, net increases in DARTs, brokerage accounts and brokerage commissions and fees sequentially or year over year (for example: TradeStation's DARTs and brokerage commissions and fees both decreased sequentially and year over year in the 2009 third and fourth quarters and the 2010 first quarter, and decreased year over year in the 2010 second quarter, and these and other items may decrease sequentially or year over year in subsequent periods);
• with respect to net new customer accounts in particular, which fell to the lowest rate of increase in the company's history during the 2010 second quarter, the company's ability (or lack thereof) to maintain or increase the rate of quarterly gross account additions and to control the rate of quarterly account attrition, particularly in current market and economic conditions, including unemployment, high volatility and swings in volatility, and if those conditions worsen and/or are prolonged (net account growth began substantially to slow in the 2009 third quarter);
• technical difficulties, outages, errors or failures in the company's electronic and software products, services and systems relating to market data, order execution and trade processing and reporting, and other software or system errors and failures, which have occurred periodically over the past two years (also, although the company maintains a redundant back-up system to its order execution systems, that redundancy is not seamless, which could materially intensify the negative consequences of any such difficulties, outages, errors or failures);
• with respect to technical difficulties, outages, errors and failures the company has experienced, the failure or inability of the company to address the underlying issues or causes relating to such problems, to adequately correct them and ensure they do not repeat (particularly as the volume of market data received from the exchanges, or the volume of the company's client base's trading volume, requires increased, improved or different hardware and/or software capacity, technology or company domain know-how), or otherwise to ensure the stability, capacity, speed and accuracy of the trading platform's market data and order placement services, as such failure or inability on the part of the company could materially negatively affect the company's reputation in the online trader market, causing increased attrition and a decrease in new accounts, and decreased net revenues and net income;
• the company's new "TradeStation Prime Services" division turning out to be less profitable or more costly than expected, or resulting in unanticipated claims or liabilities against the company, as a result of (1) unanticipated start-up costs and expenses that are not offset or exceeded by expected revenues as and when planned (or at all), (2) the TradeStation trading platform, and the prime services offering generally, not growing in appeal to prime services clients to the extent the company believes they will, (3) the failure of the company to make timely and quality enhancements to its trading platform, or to offer alternative platforms, which are believed necessary to attract prime services clients to use TradeStation to execute and clear trades, (4) TradeStation's size and balance sheet being unacceptably small to mid-size and larger prime services clients (which are part of the market segment the company intends to serve); (5) the general unpredictability of operating results for a start-up business division, particularly given TradeStation's lack of experience in offering prime brokerage services, and/or (6) the company's inability to obtain requisite regulatory approvals necessary to be able to offer a full range of prime services (including "trading away" and "securities lending" – FINRA Rule 1017 approval requests to engage in these business activities are pending);
• a substantial decrease in the company's available cash should a large portion of its current available cash be used for acquisitions or other expansion activities;
• infrastructure, capital or other large expenses, or unforeseen or unexpected liabilities and claims, the company may face as it seeks to grow its U.S. active trader market business, and its institutional (including prime services) and non-U.S. trader market businesses, including potential acquisition, joint venture, investment or business combination risks, costs and expenses (such as start-up costs and expenses, absorption of ongoing losses from an acquired entity, professional fees and, in the case of an acquisition, amortization expense) incurred in the event the company acquires, joint ventures with, invests in, or combines with other businesses, or launches additional new divisions (such potential opportunities are continuously under consideration);
• business interruptions, slowdowns or failures affecting vendors or vendor services used by the company for clearance, settlement and back-office systems, whether caused by adverse economic conditions or other events, which could significantly interrupt, impair or injure the company's core business operations;
• the potential negative effects on the company's forex commissions and fees, and forex business and prospects generally, based on unexpected mistakes, delays and costs in connection with its planned restructuring of its forex business model, and proposed FINRA and CFTC rules which would, if adopted, prohibit broker-dealers and futures commission merchants from offering competitive buying power (as opposed to buying power that could be offered by non-U.S. forex dealers) to forex customer accounts (FINRA has proposed a limit on buying power leverage of 4-to-1 and the CFTC has proposed a limit on buying power leverage of 10-to-1, compared to the buying power leverage of up to 100-to-1 or 200-to-1 typically offered throughout the world today);
• the potential negative effects on the company's brokerage commissions and fees of any future rules that may be imposed which ban short selling or restrict or limit short selling (such as the new rule adopted by the SEC in February 2010, which limits short selling on individual stocks whose value has declined ten percent or more in a single day), as a significant percentage of the firm's daily client trades on many trading days are short sale transactions, and its intended "securities lending" operations depend on short selling, that is, the need of clients to locate and borrow stock to effect their transactions;
• in general, new or modified regulatory rules or requirements, or increased or more stringent enforcement and higher fines or greater sanctions, concerning required liquidity, net capital or deposits, or the manner in which TradeStation Securities operates its business and monitors and ensures compliance of its business operations with applicable laws, rules and regulations, that may be enacted or imposed in response to the current economic crisis and recent scandals, and which could materially increase the firm's cash requirements to conduct its business, require substantial increases in compliance, legal and/or brokerage operations costs, result in fines, penalties or sanctions, limit or reduce the firm's access to, or use of, a significant percentage of its now-available cash, or otherwise limit the firm's ability to engage fully, and with as much success, in the services it currently provides and/or those expanded services that TradeStation Securities is seeking to provide;
• the frequency and size of, and ability to collect, unsecured client account debits as a result of volatile market movements and unstable economic conditions, particularly in concentrated positions held in client accounts or as a result of other high-risk positions or circumstances;
• the company's estimated earnings per share (diluted) being based on assumptions of a certain number of outstanding shares and an average stock price for particular time periods that turn out to be inaccurate (if the number of outstanding shares and/or the average stock price is actually higher than what has been assumed, there will be more dilution and the actual earnings per share would be lower, and, if both of those are lower, there will be less dilution and higher earnings per share) because of new or modified company share buy-back plans (which the company considers from time to time and which could be implemented later in 2010) or other events or factors that can affect the price of the company's shares or the number of outstanding shares;
• unauthorized intrusion and/or other criminal or fraudulent activity in customer accounts by persons who unlawfully or improperly access or use customer accounts (through deceit or otherwise) and then place orders or other transactions in, or deposit misappropriated funds in, or improperly withdraw funds from, those accounts;
• the effect of changes in product mix (how much of customer trading volume is stocks versus equity options versus futures versus forex), which can affect the company's revenues, net income and margins, even if overall volume remains the same;
• the effect of unanticipated increased infrastructure costs that may be incurred as the company seeks to increase its product development/information technology headcount and resources (which the company continues to try to do as quickly as possible) and grows its brokerage firm operations, adds offices, adds accounts and introduces and expands existing and new product and service offerings;
• pending regulatory matters which could result in fines, sanctions and/or other negative consequences;
• the amount of unexpected legal, consultation and professional fees (including fees related to pending and future regulatory matters, lawsuits or other proceedings against the company, or potential acquisitions, investments, business combinations or strategic relationships);
• the general variability and unpredictability of operating results forecast on a quarterly or annual basis; and
• other items, events and unpredictable costs or revenue impact items or events that may occur, and other issues, risks and uncertainties indicated from time to time in the company's filings with the Securities and Exchange Commission, including, but not limited to, the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010, and other SEC filings, and company press releases, conference calls and public presentations or statements.

Please note that the company undertakes no obligation to update any information presented in this conference call.