Net revenues were $1,850 million and income before income taxes and minority interest was $1,250 million for the year, compared to net revenues of $1,468 million and income before income taxes of $932 million in 2007.

Business Highlights
• Diluted earnings per share grew by 41% from the prior year.
• 68% pre-tax margin for 2008 and 63% pre-tax margin for this quarter.
• Market Making pre-tax income increased 43% from the prior year.
• 76% Market Making pre-tax margin for 2008.
• Electronic Brokerage pre-tax income increased 13% from the prior year.
• 44% Electronic Brokerage pre-tax margin for 2008.
• Cleared DARTs grew by 46% to 316,000 in 2008.

"2008 was a record year, for the first time our profits have exceeded the billion dollar mark," said Thomas Peterffy, our CEO. "It is not easy to report record profits in a year that has been generally difficult for our industry.

Our focus on long term growth, controlling risk and building technology continues to pay dividends, year after year. Our shareholders' equity of $4.4 billion makes us the largest among those firms that did not receive government support in the industry and it provides us with a solid footing to keep building our business."

Segment Overview

Market Making

Market Making segment income before income taxes increased 43% in 2008. Pre-tax margin expanded to 76% in 2008 from 70% in 2007. High market volumes and volatility again demonstrated the benefits of our automated trading system and integrated real time risk management. We avoided counterparty risks and balance sheet exposure from illiquid positions by making markets only in exchange traded products that are cleared through central clearing houses. Market Making options contract volume increased by 21% and futures volume increased by 48% in 2008.

Electronic Brokerage

Electronic Brokerage segment income before income taxes grew 13% in 2008. This growth was driven by robust customer trading and a greater number of customer accounts which generated 38% higher revenues from commissions and execution fees in 2008. Net interest income declined 9% due to lower benchmark rates. Pre-tax margin was 44% for 2008. Our real-time margining system worked efficiently during the periods of severe market stress, allowing us to avoid most of the losses associated with large adverse price moves. Total DARTs* for cleared and execution-only customers increased 35% to 357,000 in 2008, compared to 265,000 during 2007. Cleared DARTs increased by 46% to 316,000 in 2008.

*Daily average revenue trades (DARTs) are based on customer orders.

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