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| DELAWARE                                 | 22-3181095                                |
|------------------------------------------|-------------------------------------------|
| (State or other jurisdiction of          | (I.R.S. Employer Identification No.) |
| incorporation or organization)           |                                      |
|                                     |                                      |
| 95 Rockwell Place                        |                                      |
| Brooklyn, New York                       | 11217                                     |
| (Address of principal executive offices) | (Zip Code)                                |
|                                     |                                      |
| (718) 522-7373                           |                                      |
| (Registrant's telephone number)          |                                      |

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TABLE OF CONTENTS

| PART I      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM 1.     | BUSINESS                                                                                                                                                                                                                                 | I-1    |
| ITEM 1A.    | RISK      FACTORS                                                                                                                                                                                                                        | I-8    |
| ITEM 1B.    | UNRESOLVED STAFF      COMMENTS                                                                                                                                                                                                           | I-17   |
| ITEM 2.     | PROPERTIES                                                                                                                                                                                                                               | I-17   |
| ITEM 3.     | LEGAL      PROCEEDINGS                                                                                                                                                                                                                   | I-18   |
| ITEM 4.     | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | I-18   |
| PART II     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| ITEM 5.     | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATEDSTOCKHOLDERMATTERS AND ISSUER PURCHASES OF EQUITY      SECURITIES                                                                                                                          | II-1   |
| ITEM 6.     | SELECTED FINANCIAL      DATA                                                                                                                                                                                                             | II-2   |
| ITEM 7.     | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | II-3   |
| ITEM 7A.    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | II-11  |
| ITEM 8.     | FINANCIAL      STATEMENTS                                                                                                                                                                                                                | II-12  |
| ITEM 9.     | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND      FINANCIAL DISCLOSURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | II-34  |
| ITEM 9A(T). | CONTROLS AND      PROCEDURES                                                                                                                                                                                                             | II-34  |
| PART III    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| ITEM 10.    | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | III-1  |
| ITEM 11.    | EXECUTIVE      COMPENSATION                                                                                                                                                                                                         | III-3  |
| ITEM 12.    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | III-7  |
| ITEM 13.    | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | III-8  |
| ITEM 14.    | PRINCIPAL ACCOUNTANT FEES AND      SERVICES                                                                                                                                                                                              | III-9  |
| PART IV     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| ITEM 15.    | EXHIBITS AND FINANCIAL STATEMENT      CHEDULES                                                                                                                                                                                                                              | IV-1   |

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| A. | ONLINE TRADING, MARKET DATA SERVICES AND ECN SERVICES TO THE      INSTITUTIONAL PROFESSIONAL INVESTMENTCOMMUNITY |
|----|------------------------------------------------------------------------------------------------------------------|

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| B. | INTERNET-BASED ONLINE TRADING, MARKET DATA SERVICES, AND OTHER      SERVICES TO THE NON-PROFESSIONAL INDIVIDUAL INVESTMENT      COMMUNITY |
|----|-------------------------------------------------------------------------------------------------------------------------------------------|

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| C. | ARBITRAGE TRADING |
|----|-------------------|

| ·   | actual or anticipated variations in quarterly operating      results; |
|--------------------|-----------------------------------------------------------------------|

| ·   | conditions or trends in our industry, including trading      volumes, regulatory changes or changes in the securities    marketplace; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in the market valuations of other companies      operating in our industry; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | announcements by us or our competitors of significant      acquisitions, strategic partnerships ordivestitures; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | announcements of investigations or regulatory scrutiny of      our operations or lawsuits filed againstus; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | additions or departures of key personnel;  and |
|--------------------|------------------------------------------------|

| ·   | sales of our common stock, including sales of our common      stock by our directors and officers. |
|--------------------|----------------------------------------------------------------------------------------------------|

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| Election of Directors:   |      |    |     |    |
|--------------------------|-----------|---------|----------|---------|
|                     |      |    |     |    |
| Nominee                  | For       | Against | Withheld | Abstain |
| Abraham Biderman         | 6,421,093 |    | 281,533  |    |
| Albert Drillick          | 6,135,247 |    | 567,379  |    |
| E. Bruce Fredrikson      | 6,421,772 |    | 280,845  |    |
| Martin Kaye              | 6,135,206 |    | 567,420  |    |
| Philip Ort               | 6,421,593 |    | 281,033  |    |
| Shaya Sofer              | 6,421,424 |    | 281,172  |    |
| Stanley Stern            | 6,130,866 |    | 571,760  |    |
|                     |      |    |     |    |
| Appointment of Auditors: | 6,508,708 | 38,873  |     | 155,043 |

----

|   |           |   |   |   |         |   |   |   |   |   |   |
|--------|----------------|--------|--------|--------|--------------|--------|--------|--------|--------|--------|--------|
|   |           |   |   |   | Common Stock |   |
|   |           |   |   |   | Sale Price   |   |
|   |           |   |   |   |         |   |   |   |   |   |   |
|   |           |   |   |   | High         |   |   | Low    |   |
|   |           |   |   |   |         |   |   |   |   |   |   |
|   |           | 2006   |   |   |         |   |   |   |   |   |   |
|   | First Quarter  |   | $      | 3.48   |         |   | $      | 2.78   |   |
|   | Second Quarter |   |   | 3.18   |         |   |   | 2.81   |   |
|   | Third Quarter  |   |   | 5.00   |         |   |   | 2.96   |   |
|   | Fourth Quarter |   |   | 4.12   |         |   |   | 3.44   |   |
|   |           |   |   |   |         |   |   |   |   |   |   |
|   |           |   |   |   |         |   |   |   |   |   |   |
|   |           | 2007   |   |   |         |   |   |   |   |   |   |
|   | First Quarter  |   | $      | 4.00   |         |   | $      | 3.10   |   |
|   | Second Quarter |   |   | 3.49   |         |   |   | 3.08   |   |
|   | Third Quarter  |   |   | 3.15   |         |   |   | 2.30   |   |
|   | Fourth Quarter |   |   | 2.84   |         |   |   | 1.81   |   |

|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|--------|----------------|--------|--------------|--------|------------|--------|---------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|   |           |   | Number of    |   |       |   | Total Number of     |   | Maximum Number     |   |
|   |           |   | Shares of    |   | Average    |   | Shares Purchased as |   | of Shares That May |   |
|   | Period         |   | Common Stock |   | Price Paid |   | Part of Publicly    |   | Yet be Purchased   |   |
|   | Purchased      |   | Purchased    |   | Per Share  |   | Announced Plans     |   | Under the Plans    |   |
|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   | October, 2007  |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   | November, 2007 |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   | December, 2007 |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |
|   | Total          |   |         | None   |       |   |                |   |               |   |   | None   |   |   |   | 993,501 |   |   |
|   |           |   |         |   |       |   |                |   |               |   |   |   |   |   |   |    |   |   |

----

|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
|-------------------------------------------------------------------------|--------|------------------------------------------------------------|---------------------------|--------|--------|--------|----------------------------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|--------|--------|---------------------------|--------|--------|
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| Year Ended December 31,                                                 |   |                                                       | 2007                      |   |   |   | 2006                       |   |   |   | 2005   |   |   |   | 2004                      |   |   |   | 2003                      |   |   |
|                                                                    |   | (in thousands, except earnings and dividends per    share) |                      |
| SERVICE FEES AND REVENUE                                                |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
|    Market Data Services                                  |   | $                                                          | 18,648                    |   |   | $      | 21,474                     |   |   | $      | 23,175 |   |   | $      | 26,308                    |   |   | $      | 29,988                    |   |   |
|    ECN Services                                          |   |                                                       | 6,764                     |   |   |   | 13,375                     |   |   |   | 6,911  |   |   |   | 5,050                     |   |   |   | 2,003                     |   |   |
|    Broker-Dealer Commissions (includes $125 in      2007 |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
|      and $89 in 2006 from related      party)  |   |                                                       | 8,668                     |   |   |   | 7,137                      |   |   |   | 6,008  |   |   |   | 8,735                     |   |   |   | 8,890                     |   |   |
| Total                                                                   |   |                                                       | 34,080                    |   |   |   | 41,986                     |   |   |   | 36,094 |   |   |   | 40,093                    |   |   |   | 40,881                    |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| COSTS, EXPENSES AND OTHER:                                              |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| Direct operating costs                                                  |   |                                                       | 24,963                    |   |   |   | 30,465                     |   |   |   | 25,002 |   |   |   | 23,544                    |   |   |   | 23,201                    |   |   |
| Selling and administrative expenses                                     |   |                                                       | 10,575                    |   |   |   | 10,986                     |   |   |   | 12,485 |   |   |   | 13,815                    |   |   |   | 14,515                    |   |   |
| Rent expense – related party                                      |   |                                                       | 637                       |   |   |   | 630                        |   |   |   | 623    |   |   |   | 600                       |   |   |   | 583                       |   |   |
| Marketing and advertising                                               |   |                                                       | 247                       |        |   |   | 200                        |   |   |   | 274    |   |   |   | 414                       |   |   |   | 394                       |   |   |
| Net gain on sale of investments in private companies                    |   |                                                       |     - |   |   |   |      - |   |   |   | (412   | )      |   |   |     - |   |   |   |     - |   |   |
| Gain on arbitrage trading                                               |   |                                                       | (2,114                    | )      |   |   | (1,013                     | )      |   |   | (819   | )      |   |   | (1,512                    | )      |   |   | (1,891                    | )      |   |
| Gain on marketable securities-Innodata and EdgarOnline                  |   |                                                       | (344                      | )      |   |   | (1,777                     | )      |   |   | (1,067 | )      |   |   | (5,887                    | )      |   |   | (624                      | )      |   |
| Interest expense (income)– net                                    |   |                                                       | 291                       |   |   |   | (84                        | )      |   |   | 223    |   |   |   | 305                       |   |   |   | 107                       |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| Total                                                                   |   |                                                       | 34,255                    |   |   |   | 39,407                     |   |   |   | 36,309 |   |   |   | 31,279                    |   |   |   | 36,285                    |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| (LOSS) INCOME  BEFORE INCOME TAXES                            |   |                                                       | (175                      | )      |   |   | 2,579                      |   |   |   | (215   | )      |   |   | 8,814                     |   |   |   | 4,596                     |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| INCOME TAX (BENEFIT) EXPENSE                                            |   |                                                       | (43                       | )      |   |   | 1,030                      |   |   |   | (178   | )      |   |   | 3,614                     |   |   |   | 1,750                     |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| NET (LOSS) INCOME                                                       |   | $                                                          | (132                      | )      |   | $      | 1,549                      |   |   | $      | (37    | )      |   | $      | 5,200                     |   |   | $      | 2,846                     |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| BASIC AND DILUTED NET (LOSS) INCOME PER SHARE                           |   |                                                       |                      | $(.02  | )      |   |                       |   | $.18   |   |   |   |   | $(.00  | )                         |   |   |   | $.53                      |   |   |   |   | $.29 |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| DIVIDENDS PER SHARE                                                     |   |                                                       |                      | $.00   |   |   |                       |   | $.00   |   |   |   |   | $.00   |                      |   |   |   | $.05                      |   |   |   |   | $.05 |   |   |
|                                                                    |   |                                                       |                           |        |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING                                     |   |                                                       | 8,392                     |   |   |   | 8,382                      |   |   |   | 9,221  |   |   |   | 9,732                     |   |   |   | 9,942                     |   |   |
|                                                                    |   |                                                       |                           |   |   |   |                            |   |   |   |        |   |   |   |                           |   |   |   |                           |   |   |
| ADJUSTED DILUTIVE SHARES OUTSTANDING                                    |   |                                                       | 8,392                     |   |   |   | 8,401                      |   |   |   | 9,221  |   |   |   | 9,740                     |   |   |   | 9,960                     |   |   |
|                                                                    |   |                                                       |                           |   |   |   |                            |   |   |   |        |   |   |   |                           |   |   |   |                           |   |   |
|                                                                    |   |                                                       |                      |   |   |   |                       |   |   |   |   |   |   |   |                      |   |   |   |                      |   |   |
| December 31,                                                            |   |                                                       | 2007                      |   |   |   | 2006                       |   |   |   | 2005   |   |   |   | 2004                      |   |   |   | 2003                      |   |   |
|                                                                    |   | (in thousands)                                             |                      |
| TOTAL ASSETS                                                            |   | $                                                          | 32,953                    |   |   | $      | 34,848                     |   |   | $      | 36,207 |   |   | $      | 69,438                    |   |   | $      | 73,498                    |   |   |
| TOTAL LIABILITIES                                                       |   |                                                       | 10,219                    |   |   |   | 12,415                     |   |   |   | 14,658 |   |   |   | 42,570                    |   |   |   | 49,693                    |   |   |
| STOCKHOLDERS’ EQUITY                                              |   |                                                       | 22,734                    |   |   |   | 22,433                     |   |   |   | 21,549 |   |   |   | 26,868                    |   |   |   | 23,805                    |   |   |

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|                         |   |   |      |   |   |                       |         |   |   |      |    |   |   |
|------------------------------|--------|--------|-----------|--------|--------|----------------------------|--------------|--------|--------|-----------|---------|--------|--------|
| December 31, 2007            |   |   |      |   |   |                       |         |   |   |      |    |   |   |
|                         |   |   |      |   |   | Payment due by      Period |         |
|                         |   |   |      |   |   | Less than                  |         |   |   |      |    |
| Contractual      Obligations |   |   | Total     |   |   |                       |  1 year |   |   | 1-3 Years |    |
| Operating Lease Obligations  |   | $      | 1,229,000 |   |   | $                          | 736,000      |   |   | $         | 493,000 |   |   |

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INDEX TO FINANCIAL STATEMENTS

|   |                                                                                                      |   |   |   |
|--------|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|
|   | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM                                                    |   | II-13  |   |
|   |                                                                                                      |   |   |   |
|   | CONSOLIDATED BALANCE SHEETS                                                                               |   | II-14  |   |
|   |                                                                                                      |   |   |   |
|   | CONSOLIDATED STATEMENTS OF OPERATIONS                                                                     |   | II-15  |   |
|   |                                                                                                      |   |   |   |
|   | CONSOLIDATED STATEMENTS OF STOCKHOLDERS’   EQUITY AND COMPREHENSIVE INCOME    (LOSS) |   | II-16  |   |
|   |                                                                                                      |   |   |   |
|   | CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                     |   | II-17  |   |
|   |                                                                                                      |   |   |   |
|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                                                |   | II-18  |   |
|   |                                                                                                      |   |   |   |

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|   |                                     |               |   |   |
|--------|------------------------------------------|--------------------|--------|--------|
|   | /S/  Marcum & Kliegman LLP |               |   |
|   |                                     |               |   |   |
|   |                                     | Melville, New York |   |   |
|   |                                     | March 26, 2008     |   |   |

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|                                                                                                                    |   |   | 2007                            |   |   |   |   | 2006   |   |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| ASSETS                                                                                                                  |   |   |                            |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| CASH AND EQUIVALENTS                                                                                                    |   | $      | 5,275                           |   |   |   | $      | 6,508  |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| ACCOUNTS RECEIVABLE – net of allowance for doubtful                                                               |   |   |                            |   |   |   |   |   |   |   |
| accounts of $227 in 2007 and $326 in 2006                                                                               |   |   | 1,382                           |   |   |   |   | 1,277  |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| DUE FROM CLEARING BROKER                                                                                                |   |   | 635                             |   |   |   |   | 495    |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| DUE FROM BROKER                                                                                                         |   |   | 12,258                          |   |   |   |   | 12,962 |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| MARKETABLE SECURITIES                                                                                                   |   |   | 8,581                           |   |   |   |   | 8,757  |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| FIXED ASSETS - at cost (net of accumulated      depreciation)                                                           |   |   | 2,093                           |   |   |   |   | 1,998  |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| EXCESS OF COST OVER NET ASSETS ACQUIRED – net                                                                     |   |   | 1,900                           |   |   |   |   | 1,900  |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                                            |   |   | 829                             |   |   |   |   | 951    |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| TOTAL                                                                                                                   |   | $      | 32,953                          |   |   |   | $      | 34,848 |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                              |   |   |                            |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                             |   |   |                            |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                   |   | $      | 3,540                           |   |   |   | $      | 3,928  |   |   |
| Note payable - bank                                                                                                     |   |   |      - |   |   |   |   | 987    |   |   |
| Trading securities sold, but not yet purchased                                                                          |   |   | 5,060                           |   |   |   |   | 6,102  |   |   |
| Net deferred income tax liabilities                                                                                     |   |   | 755                             |   |   |   |   | 528    |   |   |
| Other liabilities                                                                                                       |   |   | 864                             |   |   |   |   | 870    |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| Total liabilities                                                                                                       |   |   | 10,219                          |   |   |   |   | 12,415 |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                           |   |   |                            |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                              |   |   |                            |   |   |   |   |   |   |   |
|            Common      stock - $.01 par value; 60,000,000 shares |   |   |                            |   |   |   |   |   |   |   |
|   authorized; issued and outstanding –8,392,000      shares                                             |   |   | 84                              |   |   |   |   | 84     |   |   |
| Additional paid-in capital                                                                                              |   |   | 10,183                          |   |   |   |   | 10,183 |   |   |
| Retained earnings                                                                                                       |   |   | 11,791                          |   |   |   |   | 11,923 |   |   |
| Accumulated other comprehensive income                                                                                  |   |   | 676                             |   |   |   |   | 243    |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| Total stockholders’ equity                                                                                        |   |   | 22,734                          |   |   |   |   | 22,433 |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |
| TOTAL                                                                                                                   |   | $      | 32,953                          |   |   |   | $      | 34,848 |   |   |
|                                                                                                                    |   |   |                            |   |   |   |   |   |   |   |

----

|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|---------------------------|--------|--------|--------|--------------|--------|--------|
|                                                                                                                          |   |   | 2007                                  |   |   |   | 2006                      |   |   |   | 2005         |   |   |
| SERVICE FEES AND REVENUE                                                                                                      |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|      Market Data Services                                                                                 |   | $      | 18,648                                |   |   | $      | 21,474                    |   |   | $      | 23,175       |   |   |
|      ECN Services                                                                                         |   |   | 6,764                                 |   |   |   | 13,375                    |   |   |   | 6,911        |   |   |
|      Broker Dealer Commissions      (includes                                                             |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|       $125 in 2007 and $89 in 2006 from related party)                                          |   |   | 8,668                                 |   |   |   | 7,137                     |   |   |   | 6,008        |   |   |
|                     Total |   |   | 34,080                                |   |   |   | 41,986                    |   |   |   | 36,094       |   |   |
| COSTS, EXPENSES AND OTHER:                                                                                                    |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|      Direct operating costs (includes      depreciation and amortization                                  |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|        of $628, $559 and $614 in      2007, 2006 and 2005, respectively)                        |   |   | 24,963                                |   |   |   | 30,465                    |   |   |   | 25,002       |   |   |
|      Selling and administrative expenses      (includes depreciation and                                  |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|        amortization of $94, $100      and $141 in 2007, 2006                                    |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|        and 2005,      respectively)                                                        |   |   | 10,575                                |   |   |   | 10,986                    |   |   |   | 12,485       |   |   |
|      Rent expense – related    party                                                                |   |   | 637                                   |   |   |   | 630                       |   |   |   | 623          |   |   |
|      Marketing and advertising                                                                            |   |   | 247                                   |   |   |   | 200                       |   |   |   | 274          |   |   |
|      Gain on arbitrage trading                                                                            |   |   | (2,114                                | )      |   |   | (1,013                    | )      |   |   | (819         | )      |   |
|      Gain on sale of marketable securities –      Innodata and Edgar Online                         |   |   | (344                                  | )      |   |   | (1,777                    | )      |   |   | (1,067       | )      |   |
|      Net gain on sale of investment in private      companies                                             |   |   |       - |   |   |   |     - |   |   |   | (412         | )      |   |
|      Interest income                                                                                      |   |   | (445                                  | )      |   |   | (430                      | )      |   |   | (241         | )      |   |
|      Interest expense                                                                                     |   |   | 736                                   |   |   |   | 346                       |   |   |   | 464          |   |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
|                     Total |   |   | 34,255                                |   |   |   | 39,407                    |   |   |   | 36,309       |   |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
| (LOSS) INCOME BEFORE INCOME TAXES                                                                                             |   |   | (175                                  | )      |   |   | 2,579                     |   |   |   | (215         | )      |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
| INCOME TAX (BENEFIT) EXPENSE                                                                                                  |   |   | (43                                   | )      |   |   | 1,030                     |   |   |   | (178         | )      |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
| NET (LOSS) INCOME                                                                                                             |   | $      | (132                                  | )      |   | $      | 1,549                     |   |   | $      | (37          | )      |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
| BASIC AND DILUTED NET (LOSS) INCOME PER SHARE                                                                                 |   |   |                                       | $(.02  | )      |   |                      |   | $.18   |   |         |   |   | $(.00 | ) |   |
|                                                                                                                          |   |   |                                  |   |   |   |                      |   |   |   |         |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                                                                                 |   |   |   8,392                          |   |   |   |   8,382              |   |   |   |   9,221 |   |   |
|                                                                                                                          |   |   |                                       |   |   |   |                           |   |   |   |              |   |   |
| ADJUSTED DILUTIVE SHARES OUTSTANDING                                                                                          |   |        | 8,392                                 |   |   |   |   8,401              |   |   |   |   9,221 |   |   |
|                                                                                                                          |   |   |                                       |   |   |   |                           |   |   |   |              |   |   |

----

|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|------------|--------|----------|--------|---------------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   | Compre- |   |
|                                                  |   | Number |   |   |   | Additional |   |     |   |          |   |           |   | Other  |   | Stock- |   | hensive |   |
|                                                  |   | of     |   | Common |   | Paid-in    |   | Retained |   | Comprehensive |   | holders’ |   | Income |   |
|                                                  |   | Shares |   | Stock  |   | Capital    |   | Earnings |   | Income        |   | Equity         |   | (Loss) |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| BALANCE, JANUARY 1, 2005                              |   |   | 9,627  |   |   |       | $      | 96       |   |          |   |           | $      | 13,786 |   |   |   |    | $      | 10,411 |   |   |   |        | $      | 2,575  |   |   |   |   | $      | 26,868  |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Net loss                                 |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   | (37    | )      |   |   |        |   |   |   |   |   |   |   | (37     | )      |   |   |   | $      | (37    | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Purchase and retirement of treasury stock             |   |   | (1,247 | )      |   |       |   | (12      | )      |          |   |           |   | (3,664 | )      |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   | (3,676  | )      |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Tax effect on distribution of            |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    phantom shares                      |   |   |   |   |   |       |   |     |   |          |   |           |   | 14     |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   | 14      |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for gain                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| on marketable securities - net of taxes               |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | (472   | )      |   |   |   |   | (472    | )      |   |   |   |   | (472   | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Unrealized loss on marketable securities -            |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| net of taxes                                          |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | (1,148 | )      |   |   |   |   | (1,148  | )      |   |   |   |   | (1,148 | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                    |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   | $      | (1,657 | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| BALANCE, DECEMBER 31, 2005                            |   |   | 8,380  |   |   |       |   | 84       |   |          |   |           |   | 10,136 |   |   |   |    |   | 10,374 |   |   |   |        |   | 955    |   |   |   |   |   | 21,549  |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Net income                               |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   | 1,549  |   |   |   |        |   |   |   |   |   |   |   | 1,549   |   |   |   |   | $      | 1,549  |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Exercise of stock options                             |   |   | 18     |   |   |       |   |     |   |          |   |           |   | 56     |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   | 56      |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Purchase and retirement of treasury stock             |   |   | (6     | )      |   |       |   |     |   |          |   |           |   | (20    | )      |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   | (20     | )      |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Tax effect of stock options exercised    |   |   |   |   |   |       |   |     |   |          |   |           |   | 11     |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   | 11      |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for gain                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| on marketable securities - net of taxes               |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | (946   | )      |   |   |   |   | (946    | )      |   |   |   |   | (946   | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Unrealized gain on marketable securities              |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| - net of taxes                                        |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | 234    |   |   |   |   |   | 234     |   |   |   |   |   | 234    |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   | $      | 837    |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| BALANCE, DECEMBER 31, 2006                            |   |   | 8,392  |   |   |       |   | 84       |   |          |   |           |   | 10,183 |   |   |   |    |   | 11,923 |   |   |   |        |   | 243    |   |   |   |   |   | 22,433  |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Net loss                                 |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   | (132   | )      |   |   |        |   |   |   |   |   |   |   | (132    | )      |   |   |   | $      | (132   | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Reclassification adjustment for gain on  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| marketable securities - net of taxes                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | (142   | )      |   |   |   |   | (142    | )      |   |   |   |   | (142   | )      |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Unrealized gain on marketable securities |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| - net of taxes                                        |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   | 575    |   |   |   |   |   | 575     |   |   |   |   |   | 575    |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    Comprehensive income                     |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   | $      | 301    |   |   |   |
|                                                  |   |   |   |   |   |       |   |     |   |          |   |           |   |   |   |   |   |    |   |   |   |   |   |        |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| BALANCE, DECEMBER 31, 2007                            |   |   | 8,392  |   |   |       | $      | 84       |   |          |   |           | $      | 10,183 |   |   |   |    | $      | 11,791 |   |   |   |        | $      | 676    |   |   |   |   | $      | 22,734  |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                    |   |   | 2007                      |   |   |   | 2006                |   |   |   | 2005                            |   |         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|---------------------|--------|--------|--------|---------------------------------|--------|--------------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                   |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|    Net (loss) income                                                                                                                                                          |   | $      | (132                      | )      |   | $      | 1,549               |   |   | $      | (37                             | )      |         |
|    Adjustments to reconcile net (loss) income to net      cash                                                                                                                |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|      provided by (used in) operating      activities:                                                                                                               |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|      Depreciation and amortization                                                                                                                                  |   |   | 722                       |   |   |   | 659                 |   |   |   | 755                             |   |         |
|      Deferred taxes                                                                                                                                                 |   |   |    (62     | )      |   |   | 43                  |   |   |   |  (13                       | )      |         |
|      Provision for doubtful    accounts                                                                                                                             |   |   |     - |   |   |   | 33                  |   |   |   |      -      |   |         |
|      Tax effect of stock options exercised      and phantom shares                                                                                                  |   |   |     - |   |   |   | (11                 | )      |   |   |    14            |   |         |
|      Net gain on sale of investment in      private companies                                                                                                       |   |   |     - |   |   |   |    - |   |   |   | (412                            | )      |         |
|      Loss on surrender of leases                                                                                                                                    |   |   | 36                        |   |   |   |    - |   |   |   |      -      |   |         |
|      Loss on sale of fixed assets                                                                                                                                   |   |   |     - |   |   |   |    - |   |   |   | 51                              |   |         |
|      Gain on sale of Innodata and Edgar      Online common stock                                                                                                    |   |   | (344                      | )      |   |   | (1,777              | )      |   |   | (1,067                          | )      |    |
|      Changes in operating assets and      liabilities:                                                                                                              |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|           Accounts      receivable and due from clearing broker                                                                            |   |   | (245                      | )      |   |   | 299                 |   |   |   | 325                             |   |         |
|          Due from      broker                                                                                                                   |   |   | 704                       |   |   |   | 2,629               |   |   |   | 20,160                          |   |         |
|          Marketable      securities                                                                                                             |   |   | 818                       |   |   |   | (462                | )      |   |   | 7,916                           |   |         |
|          Other      assets                                                                                                                      |   |   | 140                       |   |   |   | 306                 |   |   |   | 137                             |   |         |
|          Accounts      payable and accrued expenses                                                                                             |   |   | (388                      | )      |   |   | 221                 |   |   |   | (1,006                          | )      |         |
|          Trading      securities sold, but not yet purchased                                                                                    |   |   | (1,042                    | )      |   |   | (2,121              | )      |   |   | (25,392                         | )      |         |
|          Other      liabilities                                                                                                                 |   |   | (26                       | )      |   |   | (60                 | )      |   |   | (2,087                          | )      |         |
|                            Net cash provided by (used in) operating activities |   |   | 181                       |   |   |   | 1,308               |   |   |   | (656                            | )      |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                   |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|    Purchase of fixed assets                                                                                                                                                   |   |   | (869                      | )      |   |   | (1,031              | )      |   |   | (726                            | )      |         |
|    Investment in private companies                                                                                                                                            |   |   |     - |   |   |   | (150                | )      |   |   | (100                            | )      |         |
|    Proceeds from sale of fixed assets                                                                                                                                         |   |   |     - |   |   |   |    - |   |   |   | 8                               |   |         |
|    Proceeds from sale of investment in private      company                                                                                                                   |   |   |     - |   |   |   |    - |   |   |   | 522                             |   |         |
|    Proceeds from sale of Innodata and Edgar Online      common stock                                                                                                          |   |   | 420                       |   |   |   | 1,787               |   |   |   | 1,085                           |   |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|                           Net cash (used in) provided by investing activities       |   |   | (449                      | )      |   |   | 606                 |   |   |   | 789                             |   |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                   |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|    Net (payments) proceeds on note payable –      bank                                                                                                                  |   |   | (987                      | )      |   |   | (150                | )      |   |   | 1,137                           |   |         |
|    Net proceeds from contributions to employee      savings program                                                                                                           |   |   | 25                        |   |   |   | 233                 |   |   |   | 66                              |   |         |
|    Proceeds from exercise of stock options                                                                                                                                    |   |   |     - |   |   |   | 56                  |   |   |   |      - |   |         |
|    Excess tax benefit from exercise of stock      options                                                                                                                     |   |   |     - |   |   |   | 11                  |   |   |   |      - |   |         |
|    Purchase of treasury stock                                                                                                                                                 |   |   |     - |   |   |   | (20                 | )      |   |   | (3,676                          | )      |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|                           Net cash (used in) provided by financing activities       |   |   | (962                      | )      |   |   | 130                 |   |   |   | (2,473                          | )      |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH                                                                                                                                             |   |   | (3                        | )      |   |   | (5                  | )      |   |   | (9                              | )      |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS                                                                                                                                         |   |   | (1,233                    | )      |   |   | 2,039               |   |   |   | (2,349                          | )      |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| CASH AND EQUIVALENTS, BEGINNING OF YEAR                                                                                                                                                 |   |   | 6,508                     |   |   |   | 4,469               |   |   |   | 6,818                           |   |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| CASH AND EQUIVALENTS, END OF YEAR                                                                                                                                                       |   | $      | 5,275                     |   |   | $      | 6,508               |   |   | $      | 4,469                           |   |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                      |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|    Cash paid      for:          Interest                                                                                    |   | $      | 737                       |   |   | $      | 346                 |   |   | $      | 465                             |   |         |
|           Income taxes                                                                                                                |   |   | 50                        |   |   |   | 708                 |   |   |   | 1,943                           |   |         |
| NON-CASH INVESTING ACTIVITIES                                                                                                                                                           |   |   |                      |   |   |   |                |   |   |   |                            |   |         |
|    Retirement of treasury stock                                                                                                                                          |   | $      |    -       |   |   | $      | 20                  |   |   | $      | 3,676                           |   |         |
|                                                                                                                                                                                    |   |   |                      |   |   |   |                |   |   |   |                            |   |         |

----

----

----

----

----

|   |                                                          |                                      |   |   |   |   |   |   |
|--------|---------------------------------------------------------------|-------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                          | Year Ended                                |
|   |                                                          | December 31, 2005                         |
|   |                                                          | (in thousands, except earnings per share) |
|   |                                                          |                                      |   |   |   |   |   |   |
|   | Net loss, as reported                                         |                                      |   | $      | (37    | )      |   |   |
|   | Deduct:  Total stock-based employee    compensation |                                      |   |   |   |   |   |   |
|   | expense determined under fair value based method for          |                                      |   |   |   |   |   |   |
|   |  all awards, net of related tax effects                  |                                      |   |   | (476   | )      |   |   |
|   | Net loss, as adjusted                                         |                                      |   | $      | (513   | )      |   |   |
|   |                                                          |                                      |   |   |   |   |   |   |
|   | Net loss per share:                                           |                                      |   |   |   |   |   |   |
|   | Basic and diluted --as reported                               |                                      |   |   | $(.00  | )      |   |   |
|   |                                                          |                                      |   |   |   |   |   |   |
|   | Basic and diluted --as adjusted                               |                                      |   |   | $(.05  | )      |   |   |

----

----

|   |                                           |   |   |             |   |              |   |   |   |   |   |
|--------|------------------------------------------------|--------|--------|------------------|--------|-------------------|--------|--------|--------|--------|--------|
|   |                                           |   |   |  2007  |   |   2006  |   |
|   | Equipment                                      |   |   | $                | 6,231  |              |   | $      | 5,385  |   |   |
|   | Telephone systems                              |   |   |             | 804    |              |   |   | 922    |   |   |
|   | Furniture and fixtures                         |   |   |             | 368    |              |   |   | 411    |   |   |
|   | Transportation equipment                       |   |   |             | 70     |              |   |   | 70     |   |   |
|   | Leasehold improvements                         |   |   |             | 189    |              |   |   | 380    |   |   |
|   |                                           |   |   |             | 7,662  |              |   |   | 7,168  |   |   |
|   | Less accumulated depreciation                  |   |   |             |   |              |   |   |   |   |   |
|   |      and amortization |   |   |             | 5,569  |              |   |   | 5,170  |   |   |
|   | Fixed assets - net                             |   |   | $                | 2,093  |              |   | $      | 1,998  |   |   |

|   |                                                                           |   |             |         |   |   |   |   |   |   |
|--------|--------------------------------------------------------------------------------|--------|------------------|--------------|--------|--------|--------|--------|--------|--------|
|   |                                                                           |   |             | December 31, |   |   |
|   |                                                                           |   |        2007 |         |   | 2006   |   |   |
|   | Innodata - Available for sale securities - at market                           |   | $                | 1,372        |   |   | $      | 730    |   |   |
|   | Arbitrage trading securities - at market                                       |   |             | 7,209        |   |   |   | 8,027  |   |   |
|   | Marketable securities                                                          |   | $                | 8,581        |   |   | $      | 8,757  |   |   |
|   | Arbitrage trading securities sold but not yet purchased – at      market |   | $                | 5,060        |   |   | $      | 6,102  |   |   |

----

----

|                                                                                                                                                                                                           |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|---------------------------|--------|--------|--------|--------|--------|--------|
| Revenues                                                                                                                                                                                                       |   |   | 2007                      |   |   |   | 2006                      |   |   |   | 2005   |   |   |
| Professional Market                                                                                                                                                                                            |   | $      | 20,803                    |   |   | $      | 29,642                    |   |   | $      | 24,419 |   |   |
| Non-Professional Market                                                                                                                                                                                        |   |   | 13,277                    |   |   |   | 12,344                    |   |   |   | 11,675 |   |   |
|                                      Total Revenues |   | $      | 34,080                    |   |   | $      | 41,986                    |   |   | $      | 36,094 |   |   |
|                                                                                                                                                                                                           |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
| Arbitrage Trading – Gain on sale of marketable    securities                                                                                                                                             |   | $      | 2,114                     |   |   | $      | 1,013                     |   |   | $      | 819    |   |   |
|                                                                                                                                                                                                           |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
| (Loss) income before unallocated amounts and income    taxes:                                                                                                                                                  |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
|                Professional Market                                                                                                                                |   | $      | (3,320                    | )      |   | $      | (1,829                    | )      |   | $      | (2,742 | )      |   |
|           Non-Professional      Market                                                                                                                       |   |   | 1,870                     |   |   |   | 2,404                     |   |   |   | 1,409  |   |   |
|                Arbitrage Trading (including interest)                                                                                                             |   |   | 1,584                     |   |   |   | 843                       |   |   |   | 406    |   |   |
|                Unallocated amounts:                                                                                                                               |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
|                     Depreciation and amortization                                                                                        |   |   | (722                      | )      |   |   | (659                      | )      |   |   | (755   | )      |   |
|                     Gain on sale of Innodata common stock                                                                                |   |   | 344                       |   |   |   | 1,777                     |   |   |   | 1,067  |   |   |
|                     Net gain on sale of investment in private companies                                                                  |   |   |     - |   |   |   |     - |   |   |   | 412    |   |   |
|                     Interest income (expense)-net                                                                                        |   |   | 69                        |   |   |   | 43                        |   |   |   | (12    | )      |   |
|                                                                                                                                                                                                           |   |   |                      |   |   |   |                      |   |   |   |   |   |   |
| (Loss) income before income taxes                                                                                                                                                                              |   | $      | (175                      | )      |   | $      | 2,579                     |   |   | $      | (215   | )      |   |

----

|                                                |   |   |   |   |   |        |   |   |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|
|                                                |   |   |   |   |   |        |   |   |   |   |   |   |   |
|                                                |   | 2007   |   | 2006   |   |   2005 |   |
| Federal:                                            |   |   |   |   |   |        |   |   |   |   |   |   |   |
|      Current               |   | $      | 10     |   |   | $           | 712    |   |   | $      | 28     |   |   |
|      Deferred              |   |   | (56    | )      |   |        | 36     |   |   |   | (12    | )      |   |
|      Total federal         |   |   | (46    | )      |   |        | 748    |   |   |   | 16     |   |   |
| State and local:                                    |   |   |   |   |   |        |   |   |   |   |   |   |   |
|      Current               |   |   | 9      |   |   |        | 275    |   |   |   | (193   | )      |   |
|      Deferred              |   |   | (6     | )      |   |        | 7      |   |   |   | (1     | )      |   |
|      Total state and local |   |   | 3      |   |   |        | 282    |   |   |   | (194   | )      |   |
| Provision for (benefit from) income taxes           |   | $      | (43    | )      |   | $           | 1,030  |   |   | $      | (178   | )      |   |

|                         |   |   |       |   |   |   |                            |   |   |   |                                  |   |   |
|------------------------------|--------|--------|------------|--------|--------|--------|---------------------------------|--------|--------|--------|---------------------------------------|--------|--------|
|                         |   | 2007   |       | 2006   |   | 2005   |                            |
| Federal statutory rate       |   |   | (34.0      | )%     |   |   | 34.0                            | %      |   |   | (34.0                                 | )%     |   |
| State and local income taxes |   |   | 3.4        |   |   |   | 7.0                             |   |   |   | (60.0                                 | )      |   |
| Non-deductible penalties     |   |   |  10.0 |   |   |   |      - |   |   |   | 14.0                                  |   |   |
| Non taxable dividends        |   |   | (12.7      | )      |   |   |      - |   |   |   |       - |   |   |
| Other permanent differences  |   |   | 8.7        |   |   |   | (1.1                            | )      |   |   | (3.0                                  | )      |   |
|                         |   |   |       |   |   |   |                            |   |   |   |                                  |   |   |
| Effective rate               |   |   | (24.6      | )%     |   |   | 39.9                            | %      |   |   | (83.0                                 | )%     |   |

|                                                          |   |   |   |        |   |   |                 |   |   |
|---------------------------------------------------------------|--------|--------|--------|-------------|--------|--------|----------------------|--------|--------|
|                                                          |   | 2007   |   |   2006 |   |
| Deferred tax assets:                                          |   |   |   |        |   |   |                 |   |   |
|    Charitable contributions                         |   | $      | 249    |        |   | $      | 153                  |   |   |
|    Allowance for doubtful accounts                  |   |   | 91     |        |   |   |    62 |   |   |
|    Other                                            |   |   | 117    |        |   |   | 86                   |   |   |
|                                                          |   |   | 457    |        |   |   | 301                  |   |   |
| Deferred tax liabilities:                                     |   |   |   |        |   |   |                 |   |   |
|    Unrealized gain on marketable    securities |   |   | (509   | )           |   |   | (240                 | )      |   |
|    Accelerated depreciation                    |   |   | (703   | )           |   |   | (589                 | )      |   |
|                                                          |   |   | (1,212 | )           |   |   | (829                 | )      |   |
| Net deferred tax liability                                    |   | $      | (755   | )           |   | $      | (528                 | )      |   |

----

|         |   |             |      |      |   |   |   |                      |   |   |   |   |      |   |
|--------------|--------|------------------|-----------|-----------|--------|--------|--------|---------------------------|--------|--------|--------|--------|-----------|--------|
|         |   | Operating Leases |      |      |   |
| Year Ending  |   | Office           |      | Computer  |   |   |   |
| December 31, |   | Space            |      | Equipment |   | Total  |   |
|         |   |             |      |      |   |   |   |                      |   |   |   |   |      |   |   |
| 2008         |   | $                | 712,000   |      |   |   | $      | 24,000                    |   |   |   | $      | 736,000   |   |   |
| 2009         |   |             | 493,000   |      |   |   |   |     - |   |   |   |   | 493,000   |   |   |
|         |   |             |      |      |   |   |   |                      |   |   |   |   |      |   |   |
| Total        |   | $                | 1,205,000 |      |   |   | $      | 24,000                    |   |   |   | $      | 1,229,000 |   |   |
|         |   |             |      |      |   |   |   |                      |   |   |   |   |      |   |   |

----

----

----

|                                                |   |      |   |        |   |         |   |      |      |        |   |     |   |    |   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
|-----------------------------------------------------|--------|-----------|--------|-------------|--------|--------------|--------|-----------|-----------|-------------|--------|----------|--------|---------|--------|----------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|
|                                                |   |      |   |        |   |         |   |      |      |        |   |     |   |    |   |     |   |   |      |   |   |   |   |   |   | Weighted |   |
|                                                |   |      |   |        |   |         |   |      |      |        |   | Weighted |   |    |   |     |   |   |      |   |   |   |   |   |   | Average  |   |
|                                                |   | Per Share |   |        |   |         |   | Average   |      | Weighted    |   |     |   |    |   | Weighted |   | Fair   |      |
|                                                |   | Range of  |   |        |   |         |   | Remaining |      | Average     |   |     |   |    |   | Average  |   | Value  |      |
|                                                |   | Exercise  |   | Number      |   | Contractual  |   | Exercise  |      | Number      |   | Exercise |   | Date of |   |
|                                                |   | Prices    |   | Outstanding |   | Life (Years) |   | Price     |      | Exercisable |   | Price    |   | Grant   |   |
|                                                |   |      |   |        |   |         |   |      |      |        |   |     |   |    |   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
| Balance 01/01/05                                    |   | $         | 5.00   | -           | 6.25   |         |   |      | 247,660   |        |   | 3        |   | $       | 5.65   |     |   |   | 247,660   |   |   | $      | 5.65   |   |   |     |   |   |   |
|                                                |   | $         | 7.50   |        |   |         |   |      | 1,076,770 |        |   | 4        |   | $       | 7.50   |     |   |   | 881,253   |   |   | $      | 7.50   |   |   |     |   |   |   |
|                                                |   | $         | 33.75  |        |   |         |   |      | 16,000    |        |   | 1        |   | $       | 33.75  |     |   |   | 16,000    |   |   | $      | 33.75  |   |   |     |   |   |   |
|                                                |   |      |   |        |   |         |   |      | 1,340,430 |        |   |     |   |    |   |     |   |   | 1,144,913 |   |   |   |   |   |   |     |   |   |   |
|        Canceled  |   | $         | 5.00   | -           | 33.75  |         |   |      | (283,170  | )           |   | 1        |   | $       | 8.93   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
|        Granted   |   | $         | 3.00   | -           | 3.05   |         |   |      | 202,650   |        |   | 5        |   | $       | 3.01   |     |   |   |      |   |   |   |   |   |   | $        | 2.95   |   |   |
| Balance 12/31/05                                    |   | $         | 3.00   | -           | 3.05   |         |   |      | 202,650   |        |   | 5        |   | $       | 3.01   |     |   |   | 202,650   |   |   | $      | 3.01   |   |   |     |   |   |   |
|                                                |   | $         | 5.00   | -           | 6.25   |         |   |      | 240,300   |        |   | 2        |   | $       | 5.63   |     |   |   | 240,300   |   |   | $      | 5.63   |   |   |     |   |   |   |
|                                                |   | $         | 7.50   |        |   |         |   |      | 816,960   |        |   | 3        |   | $       | 7.50   |     |   |   | 816,960   |   |   | $      | 7.50   |   |   |     |   |   |   |
|                                                |   |      |   |        |   |         |   |      | 1,259,910 |        |   |     |   |    |   |     |   |   | 1,259,910 |   |   |   |   |   |   |     |   |   |   |
|        Canceled  |   | $         | 3.00   | -           | 7.50   |         |   |      | (555,320  | )           |   | 4        |   | $       | 7.47   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
|        Exercised |   | $         | 3.00   |        |   |         |   |      | (18,750   | )           |   | 4        |   | $       | 3.00   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
| Balance 12/31/06                                    |   | $         | 3.00   | -           | 3.05   |         |   |      | 182,500   |        |   | 4        |   | $       | 3.01   |     |   |   | 182,500   |   |   | $      | 3.01   |   |   |     |   |   |   |
|                                                |   | $         | 5.00   | -           | 6.25   |         |   |      | 234,510   |        |   | 1        |   | $       | 5.63   |     |   |   | 234,510   |   |   | $      | 5.63   |   |   |     |   |   |   |
|                                                |   | $         | 7.50   |        |   |         |   |      | 268,830   |        |   | 2        |   | $       | 7.50   |     |   |   | 268,830   |   |   | $      | 7.50   |   |   |     |   |   |   |
|                                                |   |      |   |        |   |         |   |      | 685,840   |        |   |     |   | $       | 5.67   |     |   |   | 685,840   |   |   | $      | 5.67   |   |   |     |   |   |   |
|        Canceled  |   | $         | 3.00   | -           | 7.50   |         |   |      | (14,290   | )           |   | 1        |   | $       | 5.81   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |
| Balance 12/31/07                                    |   | $         | 3.00   | -           | 3.05   |         |   |      | 178,750   |        |   | 3        |   | $       | 3.01   |     |   |   | 178,750   |   |   | $      | 3.01   |   |   |     |   |   |   |
|                                                |   | $         | 5.00   | -           | 6.25   |         |   |      | 230,710   |        |   | 0        |   | $       | 5.63   |     |   |   | 230,710   |   |   | $      | 5.63   |   |   |     |   |   |   |
|                                                |   | $         | 7.50   |        |   |         |   |      | 262,090   |        |   | 1        |   | $       | 7.50   |     |   |   | 262,090   |   |   | $      | 7.50   |   |   |     |   |   |   |
|                                                |   |      |   |        |   |         |   |      | 671,550   |        |   |     |   | $       | 5.79   |     |   |   | 671,550   |   |   |   |   |   |   |     |   |   |   |
|                                                |   |      |   |        |   |         |   |      |      |        |   |     |   |    |   |     |   |   |      |   |   |   |   |   |   |     |   |   |   |

----

| N.   | Related Party Transactions |
|----------------|----------------------------|

| O.   | Loss on Closing of Offices |
|----------------|----------------------------|

----

| P.   | Income (Loss) Per Share (in thousands, except per      share) |
|----------------|---------------------------------------------------------------|

|                                       |   |                   |          |   |   |   |   |   |   |   |          |   |   |
|--------------------------------------------|--------|------------------------|---------------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|--------|
|                                       |   | Year Ended December 31 |          |
|                                       |   | 2007                   |          | 2006   |   | 2005   |   |
| Net (loss) income                          |   | $                      | (132          | )      |   | $      | 1,549  |   |   | $      | (37           | )      |   |
|                                       |   |                   |          |   |   |   |   |   |   |   |          |   |   |
| Weighted average common shares outstanding |   |                   | 8,392         |   |   |   | 8,382  |   |   |   | 9,221         |   |   |
| Dilutive effect of outstanding options     |   |                   |   - |   |   |   | 19     |   |   |   |   - |   |   |
| Adjusted for dilutive computation          |   |                   | 8,392         |   |   |   | 8,401  |   |   |   | 9,221         |   |   |
|                                       |   |                   |          |   |   |   |   |   |   |   |          |   |   |
| Basic (loss) income per share              |   |                   | $(.02         | )      |   |   | $.18   |   |   |   | $(.00         | )      |   |
|                                       |   |                   |          |   |   |   |   |   |   |   |          |   |   |
| Diluted (loss) income per share            |   |                   | $(.02         | )      |   |   | $.18   |   |   |   | $(.00         | )      |   |

|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|---------|----------------------------------|---------|--------|---------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   | First   |                             | Second  |   | Third   |   | Fourth  |   |
|                                          |   | Quarter |                             | Quarter |   | Quarter |   | Quarter |   |
|                                          |   |    | (in thousands, except per share) |    |   |
| 2007                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
| Revenues                                      |   | $       | 9,148                            |    |   | $       | 8,186  |    |   | $      | 8,510  |   |   | $      | 8,236  |   |   |
| Net (loss) income                             |   |    | (167                             | )       |   |    | (489   | )       |   |   | (173   | )      |   |   | 697    | (A)    |   |
| Basic and diluted net (loss) income per share |   |    | $(.02                            | )       |   |    | $(.06  | )       |   |   | $(.02  | )      |   |   | $.08   | (A)    |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
| 2006                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
| Revenues                                      |   | $       | 10,524                           |    |   | $       | 11,995 |    |   | $      | 10,323 |   |   | $      | 9,144  |   |   |
| Net income (loss)                             |   |    | 701                              | (B)     |   |    | 914    | (B)     |   |   | 224    |   |   |   | (290   | )      |   |
| Basic and diluted net income (loss) per share |   |    | $.08                             | (B)     |   |    | $.11   | (B)     |   |   | $.03   |   |   |   | $(.03  | )      |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |
|                                          |   |    |                             |    |   |    |   |    |   |   |   |   |   |   |   |   |   |

| (A)   | Includes $206, net of income taxes, or $.02 per share, from      the sale of Innodata common stock. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (B)   | Includes $413, net of income taxes, or $.05 per share, and      $653, net of income taxes, or $.08 per share, in the first and second      quarters, respectively, from the sale of Edgar Online common    stock. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name                               |   | Age    |   | Position                                            |
|------------------------------------|--------|--------|--------|-----------------------------------------------------|
|                               |   |   |   |                                                |
| Martin Kaye                        |   | 60     |   | Chief Executive Officer since March 16, 2007,       |
|                               |   |   |   | Chief Financial Officer, Secretary and Director     |
|                               |   |   |   |                                                |
| Stanley Stern                      |   | 57     |   | Chief Compliance Officer, TDSC, Director            |
|                               |   |   |   |                                                |
| Albert Drillick                    |   | 61     |   | Senior Systems Analyst, Director                    |
|                               |   |   |   |                                                |
| Abraham Biderman                   |   | 59     |   | Director                                            |
|                               |   |   |   |                                                |
| E. Bruce Fredrikson                |   | 69     |   | Chairman of the Board since March 16, 2007          |
|                               |   |   |   |                                                |
| Philip Ort                         |   | 58     |   | Director                                            |
|                               |   |   |   |                                                |
| Shaya Sofer                        |   | 58     |   | Director                                            |
|                               |   |   |   |                                                |
| Key Employees are as      follows: |
| Barry Hertz                        |   | 57     |   | Chief of Technology, served as Chairman of theBoard |
|                               |   |   |   | and Chief Executive Officer until March 16, 2007    |
|                               |   |   |   |                                                |
| David Drillick                     |   | 36     |   | Chief Operating Officer, TDSC                       |

----

----

----

----

| Event                                                                   |   | Award Vesting                                        |   | Exercise Term            |
|-------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------------------------|
|                                                                    |   |                                                 |   |                     |
| Termination by Us for Reason Other than Cause, Disability or      Death |   | Forfeit Unvested                                     |   | Vested – 30 days   |
|                                                                    |   |                                                 |   |                     |
| Disability or Death                                                     |   | Forfeit Unvested                                     |   | Vested – 12 months |
|                                                                    |   |                                                 |   |                     |
| Termination for Cause                                                   |   | Forfeit Vested and Unvested                          |   | Expire                   |
|                                                                    |   |                                                 |   |                     |
| Change in Control                                                       |   | Not accelerated, comparable substitute, if necessary |   | Unchanged                |

|                                                  |   |   |   |          |   |    |   | All          |                                              |   |   |   |    |
|-------------------------------------------------------|--------|--------|--------|---------------|--------|---------|--------|--------------|---------------------------------------------------|--------|--------|--------|---------|
|                                                  |   | Fiscal |   | Annual        |   |    |   | Other        |                                              |   |   |   |    |
| Name and Position                                     |   | Year   |   | Salary        |   | Bonus   |   | Compensation |                                              |   | Total  |   |    |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
| Martin Kaye                                           |   | 2007   |   | $287,850      |   |  - |   | $            | 18,700                                            | (1)    |   | $      | 306,550 |   |   |
| Chief Executive Officer since March 16, 2007,         |   | 2006   |   |  303,000 |   |  - |   |         |         -      |   |   |   | 303,000 |   |   |
| Chief Financial Officer                               |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
| Key Employees                                         |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
| Barry Hertz                                           |   | 2007   |   | $431,775      |   |  - |   | $            | 88,100                                            | (1)(2) |   | $      | 519,875 |   |   |
| Chairman, CEO until his resignation on March 16, 2007 |   | 2006   |   |  454,500 |   |  - |   |         |         - |   |   |   | 454,500 |   |   |
| Serves as Chief of Technology since that date         |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
| Stanley Stern                                         |   | 2007   |   | $146,875      |   |  - |   | $            | 12,300                                            | (1)    |   | $      | 159,175 |   |   |
| Chief Compliance Officer of TDSC                      |   | 2006   |   |  154,500 |   |  - |   |         |         -      |   |   |   | 154,500 |   |   |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |
| David Drillick                                        |   | 2007   |   | $158,050      |   | $15,000 |   |         |         -      |   |   | $      | 173,050 |   |   |
| Chief Operating Officer of TDSC                       |   | 2006   |   | 165,000       |   | 9,000   |   |         |         -      |   |   |   | 174,000 |   |   |
|                                                  |   |   |   |          |   |    |   |         |                                              |   |   |   |    |   |   |

| (1)   | Long-term health carepremiums |
|-----------------|-------------------------------|

| (2)   | Includes $75,000 for officer/director indemnification paid      in 2007. |
|-----------------|--------------------------------------------------------------------------|

----

|   |           |   |                                                       |   |                  |   |                   |   |     |   |   |
|--------|----------------|--------|------------------------------------------------------------|--------|-----------------------|--------|------------------------|--------|----------|--------|--------|
|   | Name           |   | Number of Securities Underlying Unexercised Options    (1) |   | Option Exercise Price |   | Option Expiration Date |   |
|   | Martin Kaye    |   | 20,000                                                     |   |                  | $5.00  |                   |   | 01/22/08 |   |   |
|   |           |   | 20,000                                                     |   |                  | $6.25  |                   |   | 01/22/08 |   |   |
|   |           |   | 40,000                                                     |   |                  | $7.50  |                   |   | 03/11/09 |   |   |
|   |           |   | 50,000                                                     |   |                  | $3.00  |                   |   | 12/27/10 |   |   |
|   |           |   |                                                       |   |                  |   |                   |   |     |   |   |
|   | Barry Hertz    |   | 50,000                                                     |   |                  | $5.00  |                   |   | 01/22/08 |   |   |
|   |           |   | 50,000                                                     |   |                  | $6.25  |                   |   | 01/22/08 |   |   |
|   |           |   | 100,000                                                    |   |                  | $7.50  |                   |   | 03/11/09 |   |   |
|   |           |   |                                                       |   |                  |   |                   |   |     |   |   |
|   | Stanley Stern  |   | 2,000                                                      |   |                  | $5.00  |                   |   | 01/22/08 |   |   |
|   |           |   | 2,000                                                      |   |                  | $6.25  |                   |   | 01/22/08 |   |   |
|   |           |   | 4,000                                                      |   |                  | $7.50  |                   |   | 03/11/09 |   |   |
|   |           |   | 10,000                                                     |   |                  | $3.00  |                   |   | 12/27/10 |   |   |
|   |           |   |                                                       |   |                  |   |                   |   |     |   |   |
|   | David Drillick |   | 2,000                                                      |   |                  | $5.00  |                   |   | 01/22/08 |   |   |
|   |           |   | 2,000                                                      |   |                  | $6.25  |                   |   | 01/22/08 |   |   |
|   |           |   | 4,000                                                      |   |                  | $7.50  |                   |   | 01/04/09 |   |   |
|   |           |   | 10,000                                                     |   |                  | $3.00  |                   |   | 12/27/10 |   |   |
|   |           |   |                                                       |   |                  |   |                   |   |     |   |   |

|                |   |                        |   |                   |   |    |   |
|---------------------|--------|-----------------------------|--------|------------------------|--------|---------|--------|
| Name                |   | Fees Earned or Paid in Cash |   | All Other Compensation |   | Total   |   |
| E. Bruce Fredrikson |   | $23,750                     |   | $2,000                 |   | $25,750 |   |
| Abraham Biderman    |   | $15,000                     |   | $2,000                 |   | $17,000 |   |
| Philip Ort          |   | $15,000                     |   | $2,000                 |   | $17,000 |   |
| Shaya Sofer         |   | $15,000                     |   | $2,000                 |   | $17,000 |   |

----

|   |                                  |   |                          |   |       |   |   |   |
|--------|---------------------------------------|--------|-------------------------------|--------|------------|--------|--------|--------|
|   |                                  |   | Shares Owned Beneficially (1) |   |       |   |
|   | Name                                  |   | No. of Shares                 |   | % of Class |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Barry Hertz (2)                       |   | 4,802,775                     |   |       | 56.    | 6%     |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Martin Kaye (3)                       |   | 97,680                        |   |       | 1.     | 2%     |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Stanley Stern (4)                     |   | 23,953                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Albert Drillick (5)                   |   | 35,780                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Abraham Biderman (6)                  |   | 18,000                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | E. Bruce Fredrikson (7)               |   | 23,600                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Philip Ort (6)                        |   | 18,000                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | Shaya Sofer (6)                       |   | 18,000                        |   |       | *      |   |   |   |
|   |                                  |   |                          |   |       |   |   |   |   |
|   | All Officers and Directors as a Group |   |                          |   |       |   |   |   |   |
|   | (seven persons)(8)                    |   | 235,013                       |   |       | 2.     | 7%     |   |   |

| (1) | Unless otherwise indicated, (i) each person has sole investment      and voting power with respect to the shares indicated and (ii) the shares      indicated are currently outstanding shares.  For purposes of      this table, a person or group of persons is deemed to have "beneficial      ownership" of any shares as of a given date which such person has the      right to acquire within 60 days after such date.  For purposes      of computing the percentage of outstanding shares held by each person or      group of persons named above on a given date, any security which such      person or persons has the right to acquire within 60 days after such date      is deemed to be outstanding for the purpose of computing the percentage      ownership of such person or persons, but is not deemed to be outstanding      for the purpose of computing the percentage ownership of any other      person.  Subject to the foregoing, the percentages are      calculated based on 8,392,000 sharesoutstanding. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consists of 3,882,906 shares owned by Mr. Hertz, 800,880 shares      owned by Trusts established in the names of Mr. Hertz’s children and      18,989 shares held by a family LLC managed by Mr. Hertz who owns 8% of      such LLC.  Mr. Hertz disclaims beneficial interest in shares      owned by the Trust and 92% of the family LLC not owned by him. Also      includes 100,000 shares issuable upon the exercise of presently      exercisable options under the Company’s Stock Option  Plans. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Consists of 7,680 shares owned of record and 90,000 shares      issuable upon the exercise of presently exercisable options granted under      the Company's Stock Option Plans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Consists of 9,953 shares owned of record and 14,000 shares      issuable upon the exercise of presently exercisable options granted under      the Company's Stock Option Plans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Consists of 30,220 shares owned of record jointly with his      wife, 660 shares owned by a trust in the name of his child, and 4,900      shares issuable upon the exercise of presently exercisable options granted      under the Company's Stock Option Plans. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Consists of shares issuable upon the exercise of presently      exercisable options granted under the Company’s Stock Option    Plans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Consists of 5,600 shares owned of record and 18,000 shares      issuable upon the exercise of presently exercisable options granted under      the Company's Stock Option Plans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Consists of 54,113 outstanding shares and 180,900 shares      issuable upon exercise of options described in footnotes 3 through 7      above. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                                                                 |                 |
|--------|----------------------------------------------------------------------|----------------------|
|   |                                                                 | At December 31, 2007 |
|   |                                                                 |                 |
| a)     | Number of securities to be issued upon exercise of      outstanding  |                 |
|   |  options                                                        | 672,000              |
|   |                                                                 |                 |
| b)     | Weighted-average exercise price of outstanding options               | $5.79                |
|   |                                                                 |                 |
| c)     | Number of securities remaining available for future      issuance    |                 |
|   | under equity compensation plans (excluding securities      reflected |                 |
|   | in (a) above)                                                        | 1,310,000            |
|   |                                                                 |                 |

----

----

----

| (a)                           | 1.     | Financial Statements. See Item 8. Index to Financial      Statements.                                                    |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|
|                          |   |                                                                                                                     |   |   |
|                          | 2.     | Financial Statement Schedules. Not applicable                                                                            |
|                          |   |                                                                                                                     |   |   |
|                          | 3.     | Exhibits                                                                                                                 |   | Description |
|                          |   |                                                                                                                     |   |   |
|                          |   |   3.1                                                                                                          |   | Certificate of Incorporation, as amended (1) |
|                          |   |   3.2                                                                                                          |   | By-Laws (1) |
|                          |   |   4.2                                                                                                          |   | Specimen of Common Stock certificate (1) |
|                          |   | 10.1                                                                                                                     |   | 1994 Stock Option Plan (1) |
|                          |   | 10.2                                                                                                                     |   | Form of indemnity agreement with directors (1) |
|                          |   | 10.3                                                                                                                     |   | Fully Disclosed Clearing Agreement with Penson      Financial Services, Inc., |
|                          |   |                                                                                                                     |   |  dated October 13,2002(2) |
|                          |   | 10.4                                                                                                                     |   | 1995 Stock Option Plan (3) |
|                          |   | 10.5                                                                                                                     |   | 1995 Disinterested Directors’ Stock Option Plan (4) |
|                          |   | 10.6                                                                                                                     |   | 1996 Stock Option Plan (5) |
|                          |   | 10.7                                                                                                                     |   | 1998 Stock Option Plan (6) |
|                          |   | 10.8                                                                                                                     |   | 2001 Stock Option Plan (7) |
|                          |   | 10.9                                                                                                                     |   | 2002 Stock Option Plan (8) |
|                          |   | 10.10                                                                                                                    |   | No Action Letter issued by Securities Exchange Commission dated      June 28, 2006 |
|                          |   |                                                                                                                     |   |  to operate Track ECN (9) |
|                          |   | 10.11                                                                                                                    |   | Lease with Hertz Investors Group L.P. filedherewith |
|                          |   | 23                                                                                                                       |   | Consent of Marcum & Kliegman LLP filed herewith |
|                          |   | 31                                                                                                                       |   | Certification of Martin Kaye pursuant to Rule 13a-14(a) under      the Securities Exchange Act of 1934. |
|                          |   | 32                                                                                                                       |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of |
|                          |   |                                                                                                                     |   |   the Sarbanes-Oxley Act of 2002 |
|                          |   |                                                                                                                     |   |   |
| _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
|                          | (1)    | Incorporated by reference to Exhibits 3.1, 3.2, 4.2, 10.3 and      10.4 to Form S-1 Registration Statement No. 33-78570. |
|                          |   |                                                                                                                     |   |   |
|                          | (2)    | Incorporated by reference to Exhibit 10.3 to 10-K Annual Report      for the year ended December 31, 2001                |
|                          |   |                                                                                                                     |   |   |
|                          | (3)    | Incorporated by reference to Exhibit A to Definitive Proxy for      August 10, 1995, Annual Meeting of Stockholders      |
|                          |   |                                                                                                                     |   |   |
|                          | (4)    | Incorporated by reference to Exhibit B to Definitive Proxy for      August 10, 1995, Annual Meeting of Stockholders      |
|                          |   |                                                                                                                     |   |   |
|                          | (5)    | Incorporated by reference to Appendix A to Definitive Proxy for      November 7, 1996, Annual Meeting of Stockholders    |
|                          |   |                                                                                                                     |   |   |
|                          | (6)    | Incorporated by reference to Appendix A to Definitive Proxy for      November 5, 1998, Annual Meeting of Stockholders    |
|                          |   |                                                                                                                     |   |   |
|                          | (7)    | Incorporated by reference to Appendix A to Definitive Proxy for      November 1, 2001, Annual Meeting of Stockholders    |
|                          |   |                                                                                                                     |   |   |
|                          | (8)    | Incorporated by reference to Appendix A to Definitive Proxy for      August 13, 2002, Annual Meeting of Stockholders     |
|                          |   |                                                                                                                     |   |   |
|                          | (9)    | Incorporated by reference to Exhibit 10.10 to 10-Q Quarterly      Report for the six months ended June 30, 2006          |
|                          |   |                                                                                                                     |   |   |

----

|   | TRACK DATA CORPORATION               |            |
|--------|--------------------------------------|-----------------|
|   |                                 |            |   |
|   | By                                   | /s/ Martin Kaye |   |
|   |                                 |            |   |
|   | Martin Kaye, Chief Executive Officer |            |

| Signature               |   | Title                                                               |   | Date           |
|-------------------------|--------|---------------------------------------------------------------------|--------|----------------|
|                    |   |                                                                |   |           |
| /s/ Martin Kaye         |   |    Chief Executive Officer, Chief                    |   | March 26, 2008 |
| Martin Kaye             |   |    Financial Officer, Secretary and      Director    |   |           |
|                    |   |    (principal Financial and Accounting      Officer) |   |           |
|                    |   |                                                                |   |           |
| /s/ Stanley Stern       |   | Director                                                            |   | March 26, 2008 |
| Stanley Stern           |   |                                                                |   |           |
|                    |   |                                                                |   |           |
| /s/ Albert Drillick     |   | Director                                                            |   | March 26, 2008 |
| Albert Drillick         |   |                                                                |   |           |
|                    |   |                                                                |   |           |
| /s/ Abraham Biderman    |   | Director                                                            |   | March 26, 2008 |
| Abraham Biderman        |   |                                                                |   |           |
|                    |   |                                                                |   |           |
| /s/ E. Bruce Fredrikson |   | Director                                                            |   | March 26, 2008 |
| E. Bruce Fredrikson     |   |                                                                |   |           |
|                    |   |                                                                |   |           |
| /s/ Philip Ort          |   | Director                                                            |   | March 26, 2008 |
| Philip Ort              |   |                                                                |   |           |
|                    |   |                                                                |   |           |
| /s/ Shaya Sofer         |   | Director                                                            |   | March 26, 2008 |
| Shaya Sofer             |   |                                                                |   |           |
|                    |   |                                                                |   |           |