Operator: Good day and welcome to the Knight Capital Group Second Quarter Earnings Conference Call. Today's conference is being recorded. Our presenters today will be Chairman and Chief Executive Officer, Tom Joyce, and Chief Financial Officer, Steve Bisgay. As a reminder, we will be conducting a question-and-answer session following the presentation.
Now to kick off our program, I'd like to turn the call over to Jonathan Mairs, Director - Investor Relations. Please go ahead sir.
Jonathan Mairs - IR: Thank you, Josh. Good morning. I am Jonathan Mairs. Thank you for joining Knight's second quarter 2012 conference call. On the line today are Tom Joyce, Chairman and CEO; and Steve Bisgay, Executive Vice President and CFO.
Before we begin, please direct your attention to the cautionary terms regarding forward-looking statements in today's discussion. Certain statements contained herein and the documents incorporated by reference may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, take a moment to read the Safe Harbor statement contained in today's press release, which is incorporated herein by reference.
Thank you. Now, I'll turn the call over to Tom Joyce. TJ?
Thomas M. Joyce - Chairman and CEO: Thanks, Jon. Good morning, everyone. The second quarter of 2012 was frankly kind of a forgettable one. The markets witnessed lackluster retail and institutional trading activity from residual or renewed take your pick, concerns over the global economic outlook. Aggregate U.S. equity exchange volume declined another 5% year-over-year to roughly 6.8 billion shares per day.
Average daily volumes of New York Stock Exchange and NASDAQ listed stocks as well as OTC shares have now largely settled back at pre-financial crisis levels last seen in the second quarter of 2007. While volatility did increase a bit during the second quarter with intra-day highs above 20 from mid-May through June, it was not enough to offset the low volumes.
As to financial results in the second quarter 2012 Knight recorded consolidated revenues of $289 million and pre-tax earnings of $5.4 million, which amounted to a gain of $0.04 per diluted share. Losses resulting from the trading of the Facebook IPO had a direct EPS impact of minus $0.23 in the second quarter and it severely degraded the profitability of Market Making, while swinging institutional sales and trading to a loss.
Our results also included a $10 million pre-tax gain in the Corporate and Other segment. We are evaluating all legal rights and remedies in connection with the Facebook IPO. As you may know, NASDAQ has yet to file the (compensation) plan with the SEC; once it is filed, we will carefully review the details of the plan.
Steve will provide greater detail on financial results (indiscernible) expenses and the balance sheet in his review of the quarter. First, I'll cover activities in the business segment. So, let's start with Market Making. During the second quarter, retail trading activity declined to the lowest level since the start of the financial crisis in '08. After second quarter financial results excluding the $26 million in Facebook losses, Market Making revenues decreased just 4% to $139 million, while pre-tax earnings declined 19% to $32 million. Revenue capture actually improved from 0.93 to 1.0 and this is despite the low volumes, which I believe reflects the continued development of our trading models and technologies.