Operator: Good morning, ladies and gentlemen, and welcome to the Piper Jaffray Companies Conference Call to Discuss the Financial Results for the Third Quarter of 2012.
During the question-and-answer session, securities industry professionals may ask questions of management. The Company has asked that I remind you statements on this call that are not historical or current facts, including statements about beliefs and expectations are forward-looking statements that involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the Company's earnings release and reports on file with the SEC, which are available on the Company's website at www.piperjaffray.com, and on the SEC's website at www.sec.gov. As a reminder, this call is being recorded.
Now, I'd like to turn the call over to Mr. Andrew Duff. Mr. Duff, you may begin your call.
Andrew S. Duff - Chairman and CEO: Good morning, and thank you for joining us to review our third quarter results. During the quarter, our continuing operations performed well and we are pleased with our results. Our strong performance reflects robust fixed income institutional brokerage revenues, particularly from strategic trading, our decision to exit the Hong Kong capital markets, additional cost reductions taking effect, and solid market share in public finance and public equity offerings.
I'll provide some additional perspective on continuing operation, and then move to the closure of our Hong Kong capital markets business.
Public finance revenues were solid and we continue to gain market share in this business. Year-to-date, through September, market share was 4.9%, up 110 basis points or 29% compared to the full year of 2011.
Equity capital markets improved during the third quarter and volatility remained low both of which contributed to higher capital raising during the third quarter for the market and for us. We completed equity financing to our clients in healthcare, consumer and technology sectors. We were a book runner on 64% of transactions. Market share through September continued to be solid.
Turning to corporate advisory, we were active in the healthcare sector and TMT and industrial growth also contributed. We have a solid backlog and a number of transactions have been announced. Equity institutional brokerage revenues rose 8% compared to the sequential second quarter, but continued to be depressed by both low volumes and volatility. Asset management revenues increased 5% compared to the second quarter of 2012.
As I noted at the beginning, we generated robust fixed income institutional brokerage revenues. The performance had a material positive impact on our quarterly results and this level of revenues should not be considered the run rate for future quarters.
Client related revenues were solid, up 22% compared to the sequential second quarter. All of the strategic trading businesses contributed the performance and our mortgage strategy delivered very strong results.
Over the past five years, we have continued to mature and diversify our strategic trading activities. Importantly, we have developed and implemented the infrastructure and controls to manage and support the strategy. In 2011 we added a mortgage-backed security strategy. The core of this is to leverage trading inefficiencies in smaller positions, in primarily investment-grade non-agency MBS securities.