##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the Quarterly Period Ended June 30, 2008
 OR
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the transition period from                    to
 Commission file number: 001-32419
 optionsXpress Holdings, Inc.
  Delaware
    
    20-1444525(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification Number)
 311 W. Monroe, Suite 1000, Chicago, Illinois
60606
 (312) 630-3300
 þ o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



Part I  FINANCIAL INFORMATION
    
    
    3Item 1.  Condensed Consolidated Financial Statements
    
    
    3Condensed Consolidated Statements of Financial Condition
    
    
    3Condensed Consolidated Statements of Operations
    
    
    4Condensed Consolidated Statements of Cash Flows
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3.  Quantitative and Qualitative Disclosures about Market Risk
    
    
    18Item 4.  Controls and Procedures
    
    
    19Part II  OTHER INFORMATION
    
    
    20Item 1.  Legal Proceedings
    
    
    20Item 1A  Risk Factors
    
    
    20Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    20Item 4.  Submission of Matters to a Vote of Security Holders
    
    
    21Item 6.  Exhibits
    
    
    21Signatures
    
    
    21EX-31.1 Section 302 Certification of the CEOEX-31.2 Section 302 Certification of the CFOEX-32.1 Section 906 Certification of the CEO and the CFOEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  2




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##### Table of Contents



Part I  FINANCIAL INFORMATION
 
 Item 1.  Condensed Consolidated Financial Statements
 optionsXpress Holdings, Inc.
 
 Condensed Consolidated Statements of Financial Condition
 (Unaudited)
 June 30,
    
    
    December 31,2008
    
    
    2007ASSETSCash and cash equivalents
    
    $
    98,216
    
    
    $
    70,492Cash and investments segregated in compliance with federal regulations
    
    
    565,651
    
    
    
    599,059Receivables from brokerage customers, net
    
    
    229,210
    
    
    
    207,417Receivables from brokers, dealers and clearing organizations
    
    
    21,964
    
    
    
    37,044Investments in securities
    
    
    103,225
    
    
    
    158,175Deposits with clearing organizations
    
    
    23,995
    
    
    
    28,334Fixed assets, net
    
    
    13,173
    
    
    
    12,878Goodwill
    
    
    29,022
    
    
    
    28,616Other intangible assets, net
    
    
    3,450
    
    
    
    3,900Other assets
    
    
    27,440
    
    
    
    9,596Total assets
    
    $
    1,115,346
    
    
    $
    1,155,511LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesPayables to brokerage customers
    
    $
    837,992
    
    
    $
    851,130Payables to brokers, dealers and clearing organizations
    
    
    2,850
    
    
    
    8,002Accounts payable and accrued liabilities
    
    
    27,889
    
    
    
    15,734Current and deferred income taxes
    
    
    640
    
    
    
    2,937Total liabilities
    
    
    869,371
    
    
    
    877,803Stockholders equityCommon stock, $0.0001 par value (250,000 shares authorized; 59,803 and
63,026 shares issued and outstanding at June 30, 2008 and December 31,
2007, respectively)
    
    
    6
    
    
    
    6Preferred stock, $0.0001 par value, 75,000 shares authorized; none issued
    
    
    
    
    
    
    Additional paid-in capital
    
    
    38,842
    
    
    
    108,064Accumulated other comprehensive income
    
    
    104
    
    
    
    49Retained earnings
    
    
    207,023
    
    
    
    169,589Total stockholders equity
    
    
    245,975
    
    
    
    277,708Total liabilities and stockholders equity
    
    $
    1,115,346
    
    
    $
    1,155,511
 See accompanying notes
 3




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##### Table of Contents



optionsXpress Holdings, Inc.
 
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Revenues:Commissions
    
    $
    40,959
    
    
    $
    36,555
    
    
    $
    79,888
    
    
    $
    70,311Interest revenue and fees
    
    
    11,905
    
    
    
    15,148
    
    
    
    26,278
    
    
    
    29,283Interest expense
    
    
    (382
    )
    
    
    (1,624
    )
    
    
    (1,166
    )
    
    
    (3,200
    )Net interest revenue and fees
    
    
    11,523
    
    
    
    13,524
    
    
    
    25,112
    
    
    
    26,083Other brokerage-related revenue
    
    
    8,214
    
    
    
    8,879
    
    
    
    15,692
    
    
    
    16,969Other income
    
    
    928
    
    
    
    442
    
    
    
    1,697
    
    
    
    765Net revenues
    
    
    61,624
    
    
    
    59,400
    
    
    
    122,389
    
    
    
    114,128Expenses:Compensation and benefits
    
    
    7,073
    
    
    
    6,771
    
    
    
    13,732
    
    
    
    12,972Brokerage, clearing and other related expenses
    
    
    5,685
    
    
    
    4,667
    
    
    
    10,703
    
    
    
    9,497Advertising
    
    
    5,031
    
    
    
    3,455
    
    
    
    9,905
    
    
    
    7,016Quotation services
    
    
    1,663
    
    
    
    1,947
    
    
    
    3,570
    
    
    
    3,661Depreciation and amortization
    
    
    1,767
    
    
    
    1,320
    
    
    
    3,445
    
    
    
    2,586Technology and telecommunications
    
    
    917
    
    
    
    917
    
    
    
    1,823
    
    
    
    1,765Other
    
    
    2,486
    
    
    
    2,450
    
    
    
    4,710
    
    
    
    3,974Total expenses
    
    
    24,622
    
    
    
    21,527
    
    
    
    47,888
    
    
    
    41,471Income before income taxes
    
    
    37,002
    
    
    
    37,873
    
    
    
    74,501
    
    
    
    72,657Income taxes
    
    
    13,654
    
    
    
    14,703
    
    
    
    27,364
    
    
    
    28,206Net income
    
    $
    23,348
    
    
    $
    23,170
    
    
    $
    47,137
    
    
    $
    44,451Earnings per common share:Basic
    
    $
    0.39
    
    
    $
    0.37
    
    
    $
    0.77
    
    
    $
    0.71Diluted
    
    $
    0.39
    
    
    $
    0.37
    
    
    $
    0.77
    
    
    $
    0.70Weighted-average number of common shares:Basic
    
    
    60,025
    
    
    
    62,944
    
    
    
    61,303
    
    
    
    62,863Diluted
    
    
    60,175
    
    
    
    63,142
    
    
    
    61,476
    
    
    
    63,066Dividends declared per share
    
    $
    0.0800
    
    
    $
    0.0625
    
    
    $
    0.1600
    
    
    $
    0.1250
 See accompanying notes.
 4




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##### Table of Contents



optionsXpress Holdings, Inc.
 
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)
 Six Months EndedJune 30, 2008
    
    
    June 30, 2007Operating activitiesNet income
    
    $
    47,137
    
    
    $
    44,451Adjustments to reconcile net income to cash provided by (used in) operating activities:Depreciation and amortization
    
    
    3,445
    
    
    
    2,586Stock-based compensation
    
    
    1,178
    
    
    
    993Net deferred income taxes
    
    
    42
    
    
    
    1,080Gain on investment in non-consolidated affiliate
    
    
    (102
    )
    
    
    (145
    )Unrealized gains, deferred rent and other
    
    
    24
    
    
    
    210Changes in operating assets and liabilities:(Increase) decrease in:Cash and investments segregated in compliance with federal regulations
    
    
    33,408
    
    
    
    (65,002
    )Receivables from brokerage customers, net
    
    
    (21,793
    )
    
    
    (21,332
    )Receivables from brokers, dealers and clearing organizations
    
    
    15,080
    
    
    
    (2,435
    )Deposits with clearing organizations
    
    
    4,339
    
    
    
    16,787Other assets
    
    
    (14,811
    )
    
    
    (4,690
    )Increase (decrease) in:Payables to brokerage customers
    
    
    (13,138
    )
    
    
    37,991Payables to brokers, dealers and clearing organizations
    
    
    (5,152
    )
    
    
    (11,975
    )Accounts payable and accrued liabilities
    
    
    11,228
    
    
    
    5,349Current income taxes payable
    
    
    (3,719
    )
    
    
    (4,833
    )Net cash provided by (used in) operating activities
    
    
    57,166
    
    
    
    (965
    )Investing activitiesPurchases of investments in securities
    
    
    (20,600
    )
    
    
    (48,300
    )Proceeds from sales and maturities of investments in securities
    
    
    75,550
    
    
    
    27,250Purchases and development of computer software
    
    
    (2,082
    )
    
    
    (1,331
    )Purchases of fixed assets
    
    
    (1,208
    )
    
    
    (6,817
    )Loans to affiliates and non-affiliates
    
    
    (1,000
    )
    
    
    Cash used in acquisition
    
    
    
    
    
    
    (24,135
    )Net cash provided by (used in) investing activities
    
    
    50,660
    
    
    
    (53,333
    )Financing activitiesExercise of stock options
    
    
    125
    
    
    
    410Excess tax benefit for stock-based compensation
    
    
    253
    
    
    
    155Purchases through employee stock purchase plan
    
    
    19
    
    
    
    22Stock repurchases
    
    
    (70,796
    )
    
    
    Dividends paid
    
    
    (9,703
    )
    
    
    (7,867
    )Net cash used in financing activities
    
    
    (80,102
    )
    
    
    (7,280
    )Net increase (decrease) in cash and cash equivalents
    
    
    27,724
    
    
    
    (61,578
    )Cash and cash equivalents, beginning of period
    
    
    70,492
    
    
    
    76,590Cash and cash equivalents, end of period
    
    $
    98,216
    
    
    $
    15,012Supplemental cash flow information:Income taxes paid
    
    $
    30,811
    
    
    $
    31,928Interest paid
    
    
    1,166
    
    
    
    3,200Supplemental disclosure of non-cash activity:Non-cash foreign currency translation
    
    $
    56
    
    
    $
    35Issuance of common stock in acquisition
    
    
    
    
    
    
    11,150
 See accompanying notes.
 5




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##### Table of Contents



optionsXpress Holdings, Inc.
 
 Notes to Condensed Consolidated Financial Statements
 (Unaudited)
 1. Basis of Presentation and Nature of Operations
 Basis of Presentation
    Nature of Operations
   2. Recently Issued Accounting Pronouncements
 The Fair Value Option for Financial Assets and Financial
Liabilities  Including an amendment of FASB Statement No. 115
 Non-controlling Interests in Consolidated Financial
Statements, an amendment of Accounting Research Bulletin No. 51
 Business Combinations
 Disclosures about Derivative Instruments and Hedging
Activities  an amendment of FASB Statement No. 133
 6




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##### Table of Contents



The Hierarchy of Generally Accepted Accounting
Principles The Meaning
of Present Fairly in Conformity with Generally Accepted Accounting Principles
 3. Summary of Significant Accounting Policies
  Investments in Securities 
 Financial Instruments  Fair Value Measurements Financial Instruments
 Effective Date of FASB
Statement No. 157
 Earnings Per Share 
 4. Business Acquisition
    5. Stock-Based Compensation
   7




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##### Table of Contents



6. Financial Instruments
 Fair Value Measurements
  June 30,
    
    
    December 31,2008
    
    
    2007Financial instruments owned, at fair value:Investments in securities
    
    $
    103,225
    
    
    $
    158,175Money market funds included in cash and cash equivalents
    
    
    47,686
    
    
    
    5,868U.S. treasuries included in deposits with clearing organizations
    
    
    13,643
    
    
    
    18,508Corporate equities and derivatives included in other assets
    
    
    15,835
    
    
    
    1,057$
    180,389
    
    
    $
    183,608Financial instruments sold but not yet purchased, at fair value:Corporate equities and derivatives included in accrued payables and other liabilities
    
    $
    11,077
    
    
    $
    578$
    11,077
    
    
    $
    578
  
  Level 1(1)
    
    
    Level 2
    
    
    Level 3(2)
    
    
    TotalFinancial instruments owned, at fair value:Investments in securities
    
    $
    
    
    
    $
    
    
    
    $
    103,225
    
    
    $
    103,225Money market funds included in cash and cash equivalents
    
    
    47,686
    
    
    
    
    
    
    
    
    
    
    
    47,686U.S. treasuries included in deposits with clearing organizations
    
    
    13,643
    
    
    
    
    
    
    
    
    
    
    
    13,643Corporate equities and derivatives included in other assets
    
    
    15,835
    
    
    
    
    
    
    
    
    
    
    
    15,835$
    77,164
    
    
    $
    
    
    
    $
    103,225
    
    
    $
    180,389Financial instruments sold but not yet purchased, at fair value:Corporate equities and derivatives included in accrued payables
and other liabilities
    
    $
    11,077
    
    
    $
    
    
    
    $
    
    
    
    $
    11,077$
    11,077
    
    
    $
    
    
    
    $
    
    
    
    $
    11,077
 
 (1)
    
    All of the Companys assets and liabilities included in Level 1 of the fair value hierarchy are exchange traded securities.(2)
    
    Level 3 assets represent 57.2% of all assets measured at fair value.  8




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##### Table of Contents



Investments inSecurities- AssetsBalance, January 1, 2008
    
    $
    Total gains/(losses), realized and unrealized
    
    
    Purchases, issuances, sales and settlements
    
    
    (4,350
    )Transfers in/(out) of Level 3
    
    
    107,575Balance, June 30, 2008
    
    $
    103,225
    7. Guarantees and Contingencies
 Guarantees
   General Contingencies
  9




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##### Table of Contents



Legal Contingencies
  8. Capitalization
 Common Stock
   Preferred Stock
  Dividends
   9. Regulatory Requirements
    10




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##### Table of Contents



10. Earnings Per Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Net income
    
    $
    23,348
    
    
    $
    23,170
    
    
    $
    47,137
    
    
    $
    44,451Weighted-average number of common shares outstanding  basic
    
    
    60,025
    
    
    
    62,944
    
    
    
    61,303
    
    
    
    62,863Effect of dilutive securities
    
    
    150
    
    
    
    198
    
    
    
    173
    
    
    
    203Weighted-average number of common shares outstanding 
diluted
    
    
    60,175
    
    
    
    63,142
    
    
    
    61,476
    
    
    
    63,066Basic EPS
    
    $
    0.39
    
    
    $
    0.37
    
    
    $
    0.77
    
    
    $
    0.71Diluted EPS
    
    $
    0.39
    
    
    $
    0.37
    
    
    $
    0.77
    
    
    $
    0.70
 11. Subsequent Events
  11




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Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations
 FORWARD-LOOKING STATEMENTS
    
    
    the statements about our intention to pay dividends;
    
    the statements about future growth in online brokerage accounts, options trading, futures trading, online options trading, and
online futures trading;
    
    the statement that on a per trade basis, brokerage, clearing and other related expenses generally decrease as the number of
customer trades increase;
    
    the statements about continuing to expand our product offering and our customer base and the costs associated with such expansion;
    
    the statements concerning future growth of our futures business, international operations and brokersXpress;
    
    the statements about the impact of changes in interest rates on our earnings;
    
    the statements concerning continued financing options;
    
    the statements regarding scalability of our systems and the cost of capacity increases; and
    
    the statements concerning uncertainties and deteriorations in the credit and capital markets and the credit quality of our
auction rate securities.
 Results of Operations
  Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Results of OperationsNet revenues (in thousands)
    
    $
    61,624
    
    
    $
    59,400
    
    
    $
    122,389
    
    
    $
    114,128Compensation and benefits
    
    
    11.5
    %
    
    
    11.4
    %
    
    
    11.2
    %
    
    
    11.4
    %Brokerage, clearing, and other related expenses
    
    
    9.2
    
    
    
    7.9
    
    
    
    8.7
    
    
    
    8.3Advertising
    
    
    8.2
    
    
    
    5.8
    
    
    
    8.1
    
    
    
    6.1Quotation services
    
    
    2.7
    
    
    
    3.3
    
    
    
    2.9
    
    
    
    3.2Depreciation and amortization
    
    
    2.9
    
    
    
    2.2
    
    
    
    2.8
    
    
    
    2.3Technology and telecommunication
    
    
    1.5
    
    
    
    1.5
    
    
    
    1.5
    
    
    
    1.6
 12




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##### Table of Contents



Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Other
    
    
    4.0
    
    
    
    4.1
    
    
    
    3.9
    
    
    
    3.4Income before income taxes
    
    
    60.0
    
    
    
    63.8
    
    
    
    60.9
    
    
    
    63.7Income taxes
    
    
    22.1
    
    
    
    24.8
    
    
    
    22.4
    
    
    
    24.7Net income
    
    
    37.9
    
    
    
    39.0
    
    
    
    38.5
    
    
    
    39.0
 13




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##### Table of Contents



Statistical Data
  Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Statistical DataNumber of customer accounts (1)
    
    
    291,500
    
    
    
    235,300
    
    
    
    291,500
    
    
    
    235,300Daily average revenue trades (DARTs) (2)
    
    
    37,200
    
    
    
    32,700
    
    
    
    37,600
    
    
    
    31,700Customer trades per account (3)
    
    
    34
    
    
    
    36
    
    
    
    34
    
    
    
    36Average commission per trade
    
    $
    17.20
    
    
    $
    17.73
    
    
    $
    17.01
    
    
    $
    17.87Option trades as a % of total trades
    
    
    66
    %
    
    
    65
    %
    
    
    65
    %
    
    
    65
    %Advertising expense per net new customer
account (4)
    
    $
    349
    
    
    $
    300
    
    
    $
    340
    
    
    $
    323Total client assets (000s)
    
    $
    5,705,209
    
    
    $
    5,323,497
    
    
    $
    5,705,209
    
    
    $
    5,323,497Client margin balances (000s)
    
    $
    236,192
    
    
    $
    155,793
    
    
    $
    236,192
    
    
    $
    155,793
 
 (1)
    
    Customer accounts are open, numbered accounts.(2)
    
    DARTs are total revenue-generating trades for a period divided by the number of trading days in that period.(3)
    
    Customer trades per account are total trades divided by the average number of customer accounts during the
period. Customer trades are annualized.(4)
    
    Calculated based on net new customer accounts opened during the period. Three Months Ended June 30, 2008 versus June 30, 2007
 Overview
  
    
    total customer accounts increased by 56,200 to 291,500, or 23.9%;
    
    total trades increased by 319,400 to 2,381,300, or 15.5%; and
    
    average commission per trade decreased by $0.53 to $17.20, or 3.0%.
 Commissions
  Net interest revenue and fees
  Other brokerage-related revenue
  14




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Other income
  Compensation and benefits
  Brokerage, clearing, and other related expenses
  Advertising
  Quotation services
  Depreciation and amortization
  Technology and telecommunication
  Other
  Income taxes
  Net income
  Six Months Ended June 30, 2008 versus June 30, 2007
 Overview
  
    
    total customer accounts increased by 56,200 to 291,500, or 23.9%;
    
    total trades increased by 761,600 to 4,696,600, or 19.4%; and
 15




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
    
    average commission per trade decreased by $0.86 to $17.01, or 4.8%.
 Commissions
  Net interest revenue and fees
  Other brokerage-related revenue
  Other income
  Compensation and benefits
  Brokerage, clearing, and other related expenses
  Advertising
  Quotation services
  Depreciation and amortization
  Technology and telecommunication
  16




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##### Table of Contents



Other
  Income taxes
  Net income
  Liquidity and Capital Resources
        17




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Credit Facility
   Cash Flow
    Capital Expenditures
  
 Item 3.  Quantitative and Qualitative Disclosures about Market Risk
    18




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##### Table of Contents



Item 4.  Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
  19




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Part II  OTHER INFORMATION
 
 Item 1.  Legal Proceedings
 
 
 Item 1A  Risk Factors
 Risk
Factors.
 Our investments in auction rate securities are subject to risks that may cause losses and affect
the liquidity of these investments.
   
 Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
 (c) Purchases of Equity Securities by the Issuer
  ApproximateDollar Value ofShares thatTotal Number of
    
    
    May Yet BeShares Purchased
    
    
    PurchasedTotal Number of
    
    
    
    
    
    
    as Part of Publicly
    
    
    Under the PlansShares Purchased
    
    
    Average Price
    
    
    Announced Plans
    
    
    or ProgramsPeriod
    
    (1)
    
    
    Paid per Share
    
    
    or Programs (1)
    
    
    (1)(3)April 1, 2008 through April 30, 2008
    
    
    275,169
    
    
    $
    21.23
    
    
    
    275,169
    
    
    $
    39,529,512May 1, 2008 through May 31, 2008
    
    
    182,748
    
    
    
    22.11
    
    
    
    182,748
    
    
    
    35,489,254June 1, 2008 through June 30, 2008
    
    
    170,000
    
    
    
    22.20
    
    
    
    170,000
    
    
    
    31,715,254627,917
    (2)
    
    $
    21.75
    
    
    
    627,917
    
    
    $
    31,715,254
 
 (1)
    
    Represents shares purchased on the open market pursuant to a stock
repurchase program approved by our Board of Directors on February 13, 2008
that authorizes us to repurchase up to $100 million of our outstanding
common stock (the Repurchase Program). The Repurchase Program has no
expiration date and may be terminated at any time by the Board of Directors. 20




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##### Table of Contents



(2)
    
    Represents repurchased shares which were retired to authorized, but unissued.(3)
    
    Does not include shares that may yet be repurchased by us pursuant to a
stock purchase agreement we entered into with Ned W. Bennett on February 14,
2008 (the Bennett Stock Purchase Agreement) because, according to its
terms, there is no maximum number of shares that may be repurchased. The
Bennett Stock Purchase Agreement does not have an expiration date and does
not create an obligation for us to buy, or Mr. Bennett to sell to us, any of
his shares of our common stock. The number of shares we may purchase under
the Bennett Stock Purchase Agreement is limited only by the number of shares
of our common stock that Mr. Bennett may hold from time to time. 
 Item 4.  Submission of Matters to a Vote of Security Holders
  Name of Nominee
    
    FOR
    
    WITHHELDJames A. Gray
    
    
    49,495,410
    
    
    
    6,667,453Ned W. Bennett
    
    
    54,673,928
    
    
    
    1,488,935Steven Fradkin
    
    
    54,930,554
    
    
    
    1,232,309
  ABSTENTIONSAND BROKERFOR
    
    AGAINST
    
    NON-VOTES55,988,222
    
    135,394
    
    39,247
  ABSTENTIONSAND BROKERFOR
    
    AGAINST
    
    NON-VOTES37,158,788
    
    11,654,809
    
    7,349,266
 
 Item 6.  Exhibits
 Exhibit
    
    Description31.1
    
    Certification of David A. Fisher, Principal Executive Officer, as required pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Certification of Adam J. DeWitt, Principal Financial Officer, as required pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 Signatures
  Dated: August 11, 2008
    optionsXpress Holdings, Inc.
 (Registrant)By:
    /s/ DAVID A. FISHERDavid A. FisherChief Executive
Officer (Principal
Executive Officer)By:
    /s/ ADAM J. DEWITTAdam J. DeWittChief Financial Officer (Principal Financial and
Accounting Officer) 21