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The following selected consolidated financial data are qualified by the Consolidated Financial Statements of Knight Capital Group, Inc. and the Notes thereto included elsewhere in this document. The following should be read in conjunction with the Consolidated Financial Statements and the discussion under Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this document. The Consolidated Statements of Operations Data for 2008, 2007 and 2006 and the Consolidated Statements of Financial Condition Data at December 31, 2008 and 2007 have been derived from our audited Consolidated Financial Statements included elsewhere in this document. The Consolidated Statements of Operations Data for 2005 and 2004 and the Consolidated Statements of Financial Condition Data at December 31, 2006, 2005 and 2004 are derived from Consolidated Financial Statements not included in this document.

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For the years ended December 31, 2008 2007 2006 2005 2004
(In thousands, except per share amounts)
Consolidated Statements of Operations Data(1):
Revenues		          
Commissions & Fees $538,875 $435,966 $393,226 $276,117 $253,298
Net trading revenue 446,707 286,199 243,761 165,614 250,993
Asset management fees 46,344 116,777 213,888 89,227 77,658
Interest, net 7,579 17,560 16,364 9,199 4,986
Investment (loss) income and other, net (6,607) 28,718 72,219 74,541 16,441
Total revenues 1,032,898 885,220 939,458 614,698 603,376
Transaction-based expenses          
Execution and clearance fees 107,402 120,261 106,908 99,427 111,788
Soft dollar expense 60,749 49,838 53,369 43,566 37,405
Payments for order flow and ECN rebates 43,639 54,564 42,191 21,220 36,632
Total transaction-based expenses 211,790 224,663 202,468 164,213 185,825
Revenues, net of transaction-based expenses 821,108 660,557 736,990 450,485 417,551
Other direct expenses          
Employee compensation and benefits 370,778 346,476 352,353 229,460 244,550
Communications and data processing 47,461 36,956 33,120 32,513 28,896
Depreciation and amortization 27,494 22,075 20,641 16,355 14,248
Occupancy and equipment rentals 20,494 14,083 13,536 13,554 16,852
Professional fees 19,483 19,360 20,568 19,555 14,915
Business development 18,221 15,997 14,343 6,419 8,269
Interest expense 5,014 182 337 180 339
Writedown of assets and lease loss accrual, net 1,236 (2,470) 8,480 10,055 3,810
Regulatory charges and related matters – – – 5,703 79,342
Other 12,617 15,418 17,101 11,541 6,844
Total other direct expenses 522,798 468,077 480,479 345,335 418,065
Other Income          
Non-operating gain from subsidiary stock issuance 15,947 8,757 – – –
Income (loss) from continuing operations before income taxes and minority interest 314,257 201,237 256,511 105,150 (514)
Income tax expense 130,193 77,560 98,165 38,912 9,258
Income (loss) from continuing operations before minority interest $184,064 $123,677 $158,346 $66,238 $(9,772)
Minority interest expense 6,153 – – – –
Income (loss) from continuing operations $177,911 $123,677 $158,346 $66,238 $(9,772)
(Loss) income from discontinued operations, net of tax $– $(1,437) $– $122 $100,904
Net income $177,911 $122,240 $158,346 $66,360 $91,132
(1) Certain prior year amounts have been reclassified to conform to current year presentation.
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For the years ended December 31, 2008 2007 2006 2005 2004
(In thousands, except per share amounts)          
Basic earnings per share from continuing operations $2.01 $1.27 $1.56 $0.64 $(0.09)
Diluted earnings per share from continuing operations $1.94 $1.23 $1.49 $0.62 $(0.08)
Basic earnings per share from discontinued operations $– $(0.01) $– $– $0.90
Diluted earnings per share from discontinued operations $– $(0.01) $– $– $0.86
Basic earnings per share $2.01 $1.26 $1.56 $0.64 $0.81
Diluted earnings per share $1.94 $1.21 $1.49 $0.62 $0.77
Shares used in computation of basic earnings per share 88,407 97,050 101,420 103,456 112,423
Shares used in computation of diluted earnings per share 91,760 100,796 106,243 106,882 117,636
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December 31, 2008 2007 2006 2005 2004
Consolidated Statements of Financial Condition Data:          
Cash and cash equivalents $440,621 $222,435 $214,760 $230,591 $445,539
Securities owned, held at clearing brokers, at fair value 476,111 412,565 711,775 380,367 254,473
Investment in Deephaven sponsored funds 47,152 83,732 187,573 281,657 215,330
Total assets 2,014,575 1,755,813 2,028,215 1,416,016 1,394,020
Securities sold, not yet purchased, at fair value 385,003 335,280 693,071 345,457 221,421
Long term debt 140,000 70,000 – – –
Total stockholders’ equity 1,027,358 885,378 962,487 823,448 851,202

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