**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-K**

**For      the fiscal year ended ****December 31,      2006**

**Commission      file number**** 0-24634**

**TRACK      DATA CORPORATION**

| **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)          |                                                     |

**None**

**Common      Stock, $.01 par value**

**8,392,000****      shares of common stock,      $.01 par value, as of February 28, 2007.**

**[SEE      INDEX TO EXHIBITS]**

----

**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-17   |
| ITEM                  4.  | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                           | I-18   |
| PART                  II  |                                                                                                                                                |   |
| ITEM                  5.  | MARKET                  FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER                  MATTERS 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-35  |
| ITEM                  9A. | CONTROLS                  AND PROCEDURES                                                                                                       | II-35  |
| 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-8  |
| ITEM                  13. | CERTAIN                  RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR                  INDEPENDENCE                                    | III-9  |
| ITEM                  14. | PRINCIPAL                  ACCOUNTANT FEES AND SERVICES                                                                                        | III-10 |
| PART                  IV  |                                                                                                                                           |   |
| ITEM                  15. | EXHIBITS,                  FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM                  8-K                                             | IV-1   |

----

**PART        I**

*Disclosures      in this Form 10-K contain certain forward-looking      statements, including, without limitation, statements concerning the Company's      operations, economic performance and financial condition. These forward-looking      statements are made pursuant to the safe harbor provisions of the Private      Securities Litigation Reform Act of 1995. The words "believe," "expect,"      "anticipate" and other similar expressions generally identify forward-looking      statements. Readers are cautioned not to place undue reliance on these      forward-looking statements, which speak only as of their dates. These      forward-looking statements are based largely on the Company's current      expectations and are subject to a number of risks and uncertainties, including,      without limitation, changes in external market factors, changes in the Company's      business or growth strategy or an inability to execute its strategy due to      changes in its industry or the economy generally, the emergence of new or      growing competitors, various other competitive factors and other risks and      uncertainties indicated from time to time in the Company's filings with the      Securities and Exchange Commission. Actual results could differ materially      from      the results referred to in the forward-looking statements. In light of these      risks and uncertainties, there can be no assurance that the results referred      to      in the forward-looking statements contained in this Form 10-K will in fact      occur. The Company makes no commitment to revise or update any forward looking      statements in order to reflect events or circumstances after the date any such      statement is made.*

**ITEM        1. ****BUSINESS**

**Background**

**Segments**

----

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

**MarkeTrack**

**proTrack Online Trading**

**Electronic      Communications Network **

----

**NewsWatch      Service**

**Marketing**

**Competition**

----

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

**Internet-Based      Online Trading and Market Data Services**

**Other      Internet-Based Market Data Services**

***AIQ      Systems***

***Dial/Data      Service***

**Marketing**

----

**Competition**

**MATTERS      RELATED TO SEGMENTS, OTHER THAN ARBITRAGE      TRADING**

**Securities      Regulation**

----

**Operations**

***Clearing      and Order Processing***

***Network      Infrastructure***

----

**Net      Capital Requirements**

**Limited      Proprietary Information**

**Research      and Development**

**Employees**

----

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

**ITEM 1A.  RISK FACTORS**

**Risks      Relating to Owning Our Stock **

***Market      volatility may cause our stock price and the      value of your investment to decline.***

| ·   | 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 or                divestitures; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

***We      cannot assure you that we will be profitable.***

***Our      officers, directors and largest stockholder have      the ability to control all matters submitted to stockholders for approval and      control the issuance of preferred stock.***

----

***We      may not pay dividends on our common      stock.***

**Risks      Relating to the Nature of the Financial Services      Business **

***Many      of our competitors have greater financial,      technical, marketing and other resources.***

----

***A      decline in activity levels in the securities markets      could lower demand for our services.***

***Consolidation      of financial services within and across      industries could lower demand for our services.***

***The      continuing impact of cost-cutting pressures across      the financial services industry could cause lower demand for our services.***

***Servicing      customers outside the United States involves      special challenges that we may not be able to meet, which could negatively      impact our financial results.***

----

***If      we fail to attract customers in a cost-effective      manner, our profitability and growth may be impaired.***

***We      are subject to various forms of credit risk, and      those risks could have a material adverse effect on our financial      situation.***

***Our      risk management policies and procedures may not be      effective and may leave us exposed to unidentified or unexpected      risks.***

***We      may suffer losses if our reputation is      harmed.***

----

***Systems      failures and delays could harm our      business.***

***Our      networks and those of our third-party service      providers may be vulnerable to security risks.***

***Our      inability to protect our intellectual property      rights or our infringement of the intellectual property rights of others could      adversely affect our business.***

----

***We      will need to introduce new products and services to      remain competitive.***

***We      may make acquisitions, and we may be unable to      successfully integrate those acquisitions with our business, impairing our      financial performance.***

***We      are dependent on our clearing agent, Penson      Financial Services, Inc., and any failure by them or difficulties in our      relationship could materially harm our business.***

----

***The      loss of or change in our third-party vendors may      adversely affect our business.***

***Our      exposure to possible litigation could adversely      affect our business.***

***Losses      due to employee or customer fraud could have an      adverse effect on our business.***

----

**Risks      Relating to Regulation of Our Business**

***We      operate in a highly regulated industry and      compliance failures could adversely affect our business.***

***Compliance      with the Sarbanes-Oxley Act of 2002 will      require substantial financial and management resources and may increase the      time      and costs.***

***Changes      in legislation or regulations may affect our      ability to conduct our business or reduce our      profitability.***

----

***Failure      to comply with net capital requirements could      adversely affect our business.***

***Procedures      and requirements of the Patriot Act may      expose us to significant costs or penalties.***

**ITEM        1B.  ****UNRESOLVED STAFF        COMMENTS**

**ITEM      2.  ****PROPERTIES**

**ITEM        3.  ****LEGAL        PROCEEDINGS**

----

**ITEM      4.****SUBMISSION      OF MATTERS TO A VOTE OF SECURITY      HOLDERS**

| **Election                of Directors:**                                               |   |   |          |   |   |          |   |   |          |   |
|-----------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|---------------|--------|--------|---------------|--------|
| ***Nominee***                                                                           |   |   | ***For***     |   |   | ***Against*** |   |   | ***Abstain*** |   |
| Abraham                Biderman                                                         |   |   | 6,799,873     |   |   | 70,865        |   |   |          |   |
| Albert                Drillick                                                          |   |   | 6,781,013     |   |   | 89,645        |   |   |          |   |
| E.                Bruce Fredrikson                                                      |   |   | 6,699,793     |   |   | 70,865        |   |   |          |   |
| Barry                Hertz                                                              |   |   | 6,759,995     |   |   | 110,663       |   |   |          |   |
| Martin                Kaye                                                              |   |   | 6,780,153     |   |   | 90,505        |   |   |          |   |
| Philip                Ort                                                               |   |   | 6,799,123     |   |   | 71,535        |   |   |          |   |
| Shaya                Sofer                                                              |   |   | 6,800,193     |   |   | 70,465        |   |   |          |   |
| Stanley                Stern                                                            |   |   | 6,776,533     |   |   | 94,105        |   |   |          |   |
|                                                                                    |   |   |          |   |   |          |   |   |          |   |
| **Appointment                of Marcum & Kliegman LLP as                Auditors:** |   |   | **6,813,855** |   |   | **38,568**    |   |   | **18,235**    |   |

----

**PART      II**

| **ITEM 5.   ** | **MARKET FOR REGISTRANT'S COMMON EQUITY,                  RELATED                  STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY                  SECURITIES** |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                          |     |   |   |                            |   |   |    |   |   |   |
|--------|-------------------------------|----------|--------|--------|---------------------------------|--------|--------|---------|--------|--------|--------|
|   |                          |     |   |   | **Common                Stock** |   |
|   |                          |     |   |   | **Sale                Price**   |   |
|   |                          |     |   |        |                            |
|   |                          |     |   |   |                            |   |   |    |   |   |   |
|   |                          |     |   |   | **High**                        |   |   | **Low** |   |
|   |                          |     |   |        |                            |        |   |
|   |                          |     |   |   |                            |   |   |    |   |   |   |
|   |                          | **2005** |   |   |                            |   |   |    |   |   |   |
|   |                          |          |   |   |                            |   |   |    |   |   |   |
|   | First                Quarter  |     | $      | 5.00   |                            |   | $      | 2.50    |   |
|   | Second                Quarter |     |   | 3.21   |                            |   |   | 1.95    |   |
|   | Third                Quarter  |     |   | 3.41   |                            |   |   | 2.30    |   |
|   | Fourth                Quarter |     |   | 3.55   |                            |   |   | 2.70    |   |
|   |                          |     |   |   |                            |   |   |    |   |   |   |
|   |                          | **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    |   |
|   |                          |     |   |   |                            |   |   |    |   |   |   |

*Dividends*

*Issuer      Purchases of Equity Securities*

|   |                          |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   |    |   |   |
|--------|-------------------------------|--------|-----------------------------|--------|---------------------------|--------|------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|   |                          |   | 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,                2006  |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   |    |   |   |
|   |                          |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   |    |   |   |
|   | November,                2006 |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   |    |   |   |
|   |                          |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   |    |   |   |
|   | December,                2006 |   |                        |   |                      |   |                               |   |                              |   |   |   |   |   |   | 993,501 |   |   |
|   |                          |   |                        |        |                      |   |                               |   |                              |   |   |        |   |   |   |    |   |   |
|   | Total                         |   |                        | None   |                      |   |                               |   |                              |   |   | None   |   |   |   |    |   |   |
|   |                          |   |                        |        |                      |   |                               |   |                              |   |   |        |   |   |   |    |   |   |

----

**ITEM 6.  ****SELECTED FINANCIAL      DATA**** **

|                                                                                                              |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|-------------------------------|--------|--------|--------|----------|--------|--------|--------|---------------------|--------|--------|--------|---------------------------|--------|--------|--------|----------|--------|--------------|
| **Year                Ended December 31,**                                                                        |                                                                                  |   | **2006**                      |   |   |   | **2005** |   |   |   | **2004**            |   |   |   | **2003**                  |   |   |   | **2002** |   |         |
|                                                                                                              | (in                thousands, except earnings and dividends per                share) |
| **SERVICE                FEES AND REVENUE**                                                                       |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
| **    Market                Data                Services**                                    |                                                                                  | $      | 21,474                        |   |   | $      | 23,175   |   |   | $      | 26,308              |   |   | $      | 29,988                    |   |   | $      | 38,434   |   |         |
| **    ECN                Services**                                                           |                                                                                  |   | 13,375                        |   |   |   | 6,911    |   |   |   | 5,050               |   |   |   | 2,003                     |   |   |   | 9,087    |   |         |
| **    Broker-Dealer                Commissions                (includes**                     |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
| **      $89                in 2006 from                related party)**             |                                                                                  |   | 7,137                         |   |   |   | 6,008    |   |   |   | 8,735               |   |   |   | 8,890                     |   |   |   | 9,667    |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **                         Total**                                   |                                                                                  |   | 41,986                        |   |   |   | 36,094   |   |   |   | 40,093              |   |   |   | 40,881                    |   |   |   | 57,188   |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **COSTS,                EXPENSES AND OTHER:**                                                                     |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
| **    Direct                operating                costs**                                  |                                                                                  |   | 30,465                        |   |   |   | 25,002   |   |   |   | 23,544              |   |   |   | 23,201                    |   |   |   | 31,309   |   |         |
| **    Selling                and administrative                expenses**                     |                                                                                  |   | 10,986                        |   |   |   | 12,485   |   |   |   | 13,815              |   |   |   | 14,515                    |   |   |   | 18,767   |   |         |
| **    Rent                expense - related                party**                            |                                                                                  |   | 630                           |   |   |   | 623      |   |   |   | 600                 |   |   |   | 583                       |   |   |   | 540      |   |         |
| **    Marketing                and                advertising**                          |                                                                                  |   | 200                           |   |   |   | 274      |   |   |   | 414                 |   |   |   | 394                       |   |   |   | 659      |   |         |
| **    (Gain)                write off of                investments in private companies**    |                                                                                  |   |    -           |   |   |   | (412     | )      |   |   |    - |   |   |   |     - |   |   |   | 716      |   |         |
| **    Gain                on arbitrage                trading**                               |                                                                                  |   | (1,013                        | )      |   |   | (819     | )      |   |   | (1,512              | )      |   |   | (1,891                    | )      |   |   | (445     | )      |         |
| **    Gain                on marketable                securities-Innodata and Edgar Online** |                                                                                  |   | (1,777                        | )      |   |   | (1,067   | )      |   |   | (5,887              | )      |   |   | (624                      | )      |   |   | (124     | )      |         |
| **    Interest                (income) expense -                net**                         |                                                                                  |   | (84                           | )      |   |   | 223      |   |   |   | 305                 |   |   |   | 107                       |   |   |   | 657      |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **                         Total**                                   |                                                                                  |   | 39,407                        |   |   |   | 36,309   |   |   |   | 31,279              |   |   |   | 36,285                    |   |   |   | 52,079   |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **INCOME                (LOSS) BEFORE INCOME TAXES**                                                              |                                                                                  |   | 2,579                         |   |   |   | (215     | )      |   |   | 8,814               |   |   |   | 4,596                     |   |   |   | 5,109    |   |         |
|                                                                                                              |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
| **INCOME                TAX EXPENSE (BENEFIT)**                                                                   |                                                                                  |   | 1,030                         |   |   |   | (178     | )      |   |   | 3,614               |   |   |   | 1,750                     |   |   |   | 2,118    |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **NET                INCOME (LOSS)**                                                                              |                                                                                  | $      | 1,549                         |   |   | $      | (37      | )      |   | $      | 5,200               |   |   | $      | 2,846                     |   |   | $      | 2,991    |   |         |
|                                                                                                              |                                                                                  |        |                               |   |   |        |          |   |   |        |                     |   |   |        |                           |   |   |        |          |   |         |
| **BASIC                AND DILUTED NET INCOME (LOSS) PER                SHARE**                                   |                                                                                  |   | $.18                          |   |   |   | $(.00    | )      |   |   | $.53                |   |   |   | $.29                      |   |   |   | $.28     |   |         |
|                                                                                                              |                                                                                  |   |                               |   |   |   |          |   |   |   |                     |   |   |   |                           |   |   |   |          |   |         |
| **DIVIDENDS                PER SHARE**                                                                            |                                                                                  |   | $.00                          |   |   |   | $.00     |   |   |   | $.05                |   |   |   | $.05                      |   |   |   | $.00     |   |         |
|                                                                                                              |                                                                                  |   |                               |   |   |   |          |   |   |   |                     |   |   |   |                           |   |   |   |          |   |         |
| **WEIGHTED                AVERAGE SHARES OUTSTANDING**                                                            |                                                                                  |   | 8,382                         |   |   |   | 9,221    |   |   |   | 9,732               |   |   |   | 9,942                     |   |   |   | 10,525   |   |         |
|                                                                                                              |                                                                                  |   |                               |   |   |   |          |   |   |   |                     |   |   |   |                           |   |   |   |          |   |         |
| **ADJUSTED                DILUTIVE SHARES OUTSTANDING**                                                           |                                                                                  |   | 8,401                         |   |   |   | 9,221    |   |   |   | 9,740               |   |   |   | 9,960                     |   |   |   | 10,580   |   |         |
|                                                                                                              |                                                                                  |   |                               |   |   |   |          |   |   |   |                     |   |   |   |                           |   |   |   |          |   |    |
| **                         December 31,**                            |                                                                                  |   | **2006**                      |   |   |   | **2005** |   |   |   | **2004**            |   |   |   | **2003**                  |   |   |   | **2002** |   |         |
|                                                                                                              |                                                                                  |   | (in                thousands) |   |   |
|                                                                                                              |                                                                                  |   |                          |   |   |   |     |   |   |   |                |   |   |   |                      |   |   |   |     |   |         |
| **TOTAL                ASSETS**                                                                                   |                                                                                  | $      | 34,848                        |   |   | $      | 36,207   |   |   | $      | 69,438              |   |   | $      | 73,498                    |   |   | $      | 46,416   |   |         |
| **TOTAL                LIABILITIES**                                                                              |                                                                                  |   | 12,415                        |   |   |   | 14,658   |   |   |   | 42,570              |   |   |   | 49,693                    |   |   |   | 26,809   |   |         |
| **STOCKHOLDERS’EQUITY**                                                                                     |                                                                                  |   | 22,433                        |   |   |   | 21,549   |   |   |   | 26,868              |   |   |   | 23,805                    |   |   |   | 19,607   |   |         |

----

**ITEM        7.  ****MANAGEMENT'S DISCUSSION AND        ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

***Business***

***Relevant      Factors***

----

**Results      of Operations**

**Years      ended December 31, 2006 and 2005**

----

**Years      ended December 31, 2005 and 2004**

----

----

***Liquidity      and Capital Resources***

***Off      Balance Sheet Risk***

----

***Contractual      Obligations and      Commitments***

|                                         |   |        |      |                                          |   |                                 |      |                     |   |   |                            |   |   |   |                |   |
|----------------------------------------------|--------|-------------|-----------|-----------------------------------------------|--------|--------------------------------------|-----------|--------------------------|--------|--------|---------------------------------|--------|--------|--------|---------------------|--------|
| December                31, 2006             |   |        |      |                                          |   |                                 |      |                     |   |   |                            |   |   |   |                |   |
|                                         |   |        |      |                                          |   | Payment                due by Period |      |
|                                         |   |        |      |                                          |   |                                      |      |
|  Contractual                Obligations |   |  Total |      | Less                than1                year |   |  1-3                Years       |      | 3-5                Years |
|                                              |   |             |      |                                               |   |                                      |      |                          |
| Operating                Lease Obligation    |   | $           | 818,000   |                                          |   | $                                    | 346,000   |                     |   | $      | 396,000                         |   |   | $      | 76,000              |   |
| Demand                Credit Line Financing  |   |        | 987,000   |                                          |   |                                 | 987,000   |                     |   |   |      - |   |   |   |    - |   |
|                                         |   |             |           |                                          |   |                                      |           |                     |   |        |                                 |   |   |        |                     |        |
| Total                                        |   | $           | 1,805,000 |                                          |   | $                                    | 1,333,000 |                     |   | $      | 396,000                         |   |   | $      | 76,000              |   |
|                                         |   |             |           |                                          |   |                                      |           |                     |   |        |                                 |   |   |        |                     |        |

***Critical      Accounting Policies***

**Revenue      Recognition**

* *

**Marketable      Securities**

----

**Long-lived      Assets**

**New      Pronouncements**

----

***Inflation      and Seasonality***

----

**ITEM      7A.  ****QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKET RISK**

----

**ITEM 8. ****FINANCIAL STATEMENTS**

**INDEX      TO FINANCIAL      STATEMENTS**

|   |                                                                                            |   |     |   |
|--------|-------------------------------------------------------------------------------------------------|--------|----------|--------|
|   | REPORTS                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS                 |   | II-13-14 |   |
|   |                                                                                            |   |     |   |
|   | CONSOLIDATED                  BALANCE SHEETS                                               |   | II-15    |   |
|   |                                                                                            |   |     |   |
|   | CONSOLIDATED                  STATEMENTS OF OPERATIONS                                     |   | II-16    |   |
|   |                                                                                            |   |     |   |
|   | CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS’ EQUITY                     |   |     |   |
|   |      AND                  COMPREHENSIVE INCOME                  (LOSS) |   | II-17    |   |
|   |                                                                                            |   |     |   |
|   | CONSOLIDATED                  STATEMENTS OF CASH FLOWS                                     |   | II-18    |   |
|   |                                                                                            |   |     |   |
|   | NOTES                  TO CONSOLIDATED FINANCIAL STATEMENTS                                |   | II-19    |   |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

|   |                                         |                              |   |   |
|--------|----------------------------------------------|-----------------------------------|--------|--------|
|   | /S/                Marcum & Kliegman LLP |                              |   |
|   |                                         |                              |   |   |
|   |                                         | Melville,                New York |   |   |
|   |                                         | March                21, 2007     |   |   |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

|   |                                  |                              |   |   |
|--------|---------------------------------------|-----------------------------------|--------|--------|
|   | /S/                Grant Thornton LLP |                              |   |
|   |                                  |                              |   |   |
|   |                                  | New                York, New York |   |   |
|   |                                  | March                16, 2005     |   |   |

----

**Track      Data Corporation and Subsidiaries**

**Consolidated      Balance Sheets**

**December      31, 2006 and 2005**

|                                                                                                                    |   |   | **2006** |   |   |   | **2005** |   |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **ASSETS**                                                                                                              |   |   |     |   |   |   |     |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **CASH                AND EQUIVALENTS**                                                                                 |   | $      | 6,508    |   |   | $      | 4,469    |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **ACCOUNTS                RECEIVABLE**- net of allowance for                doubtful                                    |   |   |     |   |   |   |     |   |   |
|     accounts                of $326 in 2006 and $302 in                2005                         |   |   | 1,277    |   |   |   | 1,950    |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **DUE                FROM CLEARING BROKER**                                                                             |   |   | 495      |   |   |   | 154      |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **DUE                FROM BROKER**                                                                                      |   |   | 12,962   |   |   |   | 15,591   |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **MARKETABLE                SECURITIES**                                                                                |   |   | 8,757    |   |   |   | 9,492    |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **FIXED                ASSETS** - at cost (net of accumulated                depreciation)                              |   |   | 1,998    |   |   |   | 1,701    |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **EXCESS                OF COST OVER NET ASSETS ACQUIRED** -                net                                         |   |   | 1,900    |   |   |   | 1,900    |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **OTHER                ASSETS**                                                                                         |   |   | 951      |   |   |   | 950      |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **TOTAL**                                                                                                               |   | $      | 34,848   |   |   | $      | 36,207   |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                           |   |   |     |   |   |   |     |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **LIABILITIES**                                                                                                         |   |   |     |   |   |   |     |   |   |
|     Accounts                payable and accrued                expenses                             |   | $      | 3,928    |   |   | $      | 3,707    |   |   |
|     Note                payable - bank                                                              |   |   | 987      |   |   |   | 1,137    |   |   |
|     Trading                securities sold, but not yet                purchased                    |   |   | 6,102    |   |   |   | 8,223    |   |   |
|     Net                deferred income tax                liabilities                               |   |   | 528      |   |   |   | 959      |   |   |
|     Other                liabilities                                                                |   |   | 870      |   |   |   | 632      |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
|             Total                liabilities                |   |   | 12,415   |   |   |   | 14,658   |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                        |   |   |     |   |   |   |     |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **STOCKHOLDERS’EQUITY**                                                                                           |   |   |     |   |   |   |     |   |   |
|     Common                stock - $.01 par value;                60,000,000 shares                  |   |   |     |   |   |   |     |   |   |
|      authorized;                issued and                outstanding -8,392,000 shares        |   |   |     |   |   |   |     |   |   |
|      in                2006 and 8,380,000 shares                in 2005                        |   |   | 84       |   |   |   | 84       |   |   |
|     Additional                paid-in capital                                                       |   |   | 10,183   |   |   |   | 10,136   |   |   |
|     Retained                earnings                                                                |   |   | 11,923   |   |   |   | 10,374   |   |   |
|     Accumulated                other comprehensive                income                            |   |   | 243      |   |   |   | 955      |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
|             Total                stockholders’ equity |   |   | 22,433   |   |   |   | 21,549   |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |
| **TOTAL**                                                                                                               |   | $      | 34,848   |   |   | $      | 36,207   |   |   |
|                                                                                                                    |   |        |          |   |   |        |          |   |   |
|                                                                                                                    |   |   |     |   |   |   |     |   |   |

----

**Track      Data Corporation and Subsidiaries**

**Consolidated      Statements of Operations**

**Years      Ended December 31, 2006, 2005 and 2004**

|                                                                                                                        |   |   |                |   |   |   |     |   |   |   |                |   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|--------|--------|----------|--------|--------|--------|---------------------|--------|--------|
|                                                                                                                        |   |   | **2006**            |   |   |   | **2005** |   |   |   | **2004**            |   |   |
| **SERVICE                FEES AND REVENUE**                                                                                 |   |   |                |   |   |   |     |   |   |   |                |   |   |
| **    Market                Data                Services**                                              |   | $      | 21,474              |   |   | $      | 23,175   |   |   | $      | 26,308              |   |   |
| **    ECN                Services**                                                                     |   |   | 13,375              |   |   |   | 6,911    |   |   |   | 5,050               |   |   |
| **    Broker                Dealer Commissions**(includes $89 in 2006 from related party)               |   |   | 7,137               |   |   |   | 6,008    |   |   |   | 8,735               |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
|              **Total**                                     |   |   | 41,986              |   |   |   | 36,094   |   |   |   | 40,093              |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| **COSTS,                EXPENSES AND OTHER:**                                                                               |   |   |                |   |   |   |     |   |   |   |                |   |   |
| **    Direct                operating costs**                (includes depreciation and amortization    |   |   |                |   |   |   |     |   |   |   |                |   |   |
|     of                $559, $614 and $766 in 2006, 2005                and 2004, respectively)          |   |   | 30,465              |   |   |   | 25,002   |   |   |   | 23,544              |   |   |
| **    Selling                and administrative expenses**(includes depreciation and** **          |   |   |                |   |   |   |     |   |   |   |                |   |   |
|     amortization                of $100, $141 and $287                in 2006, 2005                     |   |   |                |   |   |   |     |   |   |   |                |   |   |
|     and                2004, respectively)                                                              |   |   | 10,986              |   |   |   | 12,485   |   |   |   | 13,815              |   |   |
| **    Rent                expense - related                party**                                      |   |   | 630                 |   |   |   | 623      |   |   |   | 600                 |   |   |
| **    Marketing                and                advertising**                                         |   |   | 200                 |   |   |   | 274      |   |   |   | 414                 |   |   |
| **    Gain                on arbitrage trading**                                                        |   |   | (1,013              | )      |   |   | (819     | )      |   |   | (1,512              | )      |   |
| **    Gain                on sale of marketable                securities - Innodata and Edgar Online** |   |   | (1,777              | )      |   |   | (1,067   | )      |   |   | (5,887              | )      |   |
| **    Net                gain on sale of investment in                private companies**               |   |   |    - |   |   |   | (412     | )      |   |   |    - |   |   |
| **    Interest                income**                                                                  |   |   | (430                | )      |   |   | (241     | )      |   |   |    - |   |   |
| **    Interest                expense**                                                                 |   |   | 346                 |   |   |   | 464      |   |   |   | 305                 |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| **            Total**                                           |   |   | 39,407              |   |   |   | 36,309   |   |   |   | 31,279              |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| **INCOME                (LOSS) BEFORE INCOME TAXES**                                                                        |   |   | 2,579               |   |   |   | (215     | )      |   |   | 8,814               |   |   |
|                                                                                                                        |   |   |                |   |   |   |     |   |   |   |                |   |   |
| **INCOME                TAX EXPENSE (BENEFIT)**                                                                             |   |   | 1,030               |   |   |   | (178     | )      |   |   | 3,614               |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| **NET                INCOME (LOSS)**                                                                                        |   | $      | 1,549               |   |   | $      | (37      | )      |   | $      | 5,200               |   |   |
|                                                                                                                        |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| **BASIC                AND DILUTED NET INCOME (LOSS) PER SHARE**                                                            |   |   | $.18                |   |   |   | $(.00    | )      |   |   | $.53                |   |   |
|                                                                                                                        |   |   |                     |   |   |   |          |   |   |   |                     |   |   |
| **DIVIDENDS                PER SHARE**                                                                                      |   |   | $.00                |   |   |   | $.00     |   |   |   | $.05                |   |   |
|                                                                                                                        |   |   |                     |   |   |   |          |   |   |   |                     |   |   |
| **WEIGHTED                AVERAGE NUMBER OF SHARES                OUTSTANDING**                                             |   |   | 8,382               |   |   |   | 9,221    |   |   |   | 9,732               |   |   |
|                                                                                                                        |   |   |                     |   |   |   |          |   |   |   |                     |   |   |
| **ADJUSTED                DILUTIVE SHARES OUTSTANDING**                                                                     |   |   | 8,401               |   |   |   | 9,221    |   |   |   | 9,740               |   |   |
|                                                                                                                        |   |   |                     |   |   |   |          |   |   |   |                     |   |   |
|                                                                                                                        |   |   |                |   |   |   |     |   |   |   |                |   |   |

----

**Track      Data Corporation and Subsidiaries**

**Consolidated      Statements of Stockholders’ Equity and      Comprehensive Income (Loss)**

**Years      Ended December 31, 2006, 2005 and 2004**

*(in      thousands)*

|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
|------------------------------------------------------------------|--------|------------|-----------|------------|--------|----------------|--------|--------------|--------|-------------------|--------|--------------------|--------|------------|--------|------------|--------|-------------|--------|------------|--------|--------|--------|-----------------|--------|-----------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   | **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, 2004**                      |   |       | **9,800** |       |   |           | $      | **98**       |   |              |   |               | **$**  | **14,544** |   |       |   |        | **$**  | **5,701**  |   |   |   |            | **$**  | **3,462** |   |   |   |   | **$**  | **23,805**  |   |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
|   Net                income                            |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   | 5,200      |   |   |   |            |   |      |   |   |   |   |   | 5,200       |   |   |   |   | $      | 5,200      |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Stock                options exercised                           |   |       |      |       |   |           |   |         |   |              |   |               |   | 11         |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   | 11          |   |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Dividends                paid                                    |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   | (490       | )      |   |   |            |   |      |   |   |   |   |   | (490        | )      |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Purchase                and retirement of treasury stock         |   |       | (173      | )          |   |           |   | (2           | )      |              |   |               |   | (804       | )      |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   | (806        | )      |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Tax                effect of stock options exercised             |   |       |      |       |   |           |   |         |   |              |   |               |   | 35         |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   | 35          |   |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Reclassification                adjustment for gain              |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| on                marketable securities - net of taxes           |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   | (2,176    | )      |   |   |   |   | (2,176      | )      |   |   |   |   | (2,176     | )      |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| Unrealized                gain on marketable securities -        |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |
| net                of taxes                                      |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   | 1,289     |   |   |   |   |   | 1,289       |   |   |   |   |   | 1,289      |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |        |            |   |   |   |
| Comprehensive                income                              |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   | **$**  | **4,313**  |   |   |   |
|                                                             |   |       |           |       |   |           |        |              |   |              |   |               |        |            |   |       |   |        |        |            |   |   |   |            |        |           |   |   |   |   |        |             |   |   |   |   |        |            |   |   |   |
| **BALANCE,                DECEMBER 31, 2004**                    |   |       | **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**  |   |   |   |   |   |       |   |   |   |
|                                                             |   |       |           |       |   |           |        |              |   |              |   |               |        |            |   |       |   |        |        |            |   |   |   |            |        |           |   |   |   |   |        |             |   |   |   |   |   |       |   |   |   |
|                                                             |   |       |      |       |   |           |   |         |   |              |   |               |   |       |   |       |   |        |   |       |   |   |   |            |   |      |   |   |   |   |   |        |   |   |   |   |   |       |   |   |   |

----

**Track      Data Corporation and Subsidiaries**

**Consolidated      Statements of Cash Flows**

**Years      Ended December 31, 2006, 2005 and 2004**

|                                                                                                                                                                              |   |   | **2006**      |   |   |   | **2005**                  |   |   |   | **2004**      |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|---------------------------|--------|--------|--------|---------------|--------|--------|
|                                                                                                                                                                              |   |   |               |   |   |   |                           |   |   |   |               |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                          |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|     Net                income (loss)                                                                                                                          |   | $      | 1,549         |   |   | $      | (37                       | )      |   | $      | 5,200         |   |   |
|     Adjustments                to reconcile net income                (loss) to net cash                                                                      |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|         provided                by (used in) operating                activities:                                                         |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|         Depreciation                and                amortization                                                                       |   |   | 659           |   |   |   | 755                       |   |   |   | 1,053         |   |   |
|         Deferred                taxes                                                                                                     |   |   | 43            |   |   |   | (13                       | )      |   |   | 168           |   |   |
|         Provision                for doubtful                accounts                                                                     |   |   | 33            |   |   |   |     - |   |   |   |   - |   |   |
|         Tax                effect of phantom shares and                stock options exercised                                            |   |   | (11           | )      |   |   | 14                        |   |   |   | 35            |   |   |
|         Net                gain on sale of investment in                private companies                                                 |   |   |   - |   |   |   | (412                      | )      |   |   |   - |   |   |
|         Loss                on sale of fixed                assets                                                                        |   |   |   - |   |   |   | 51                        |   |   |   |   - |   |   |
|         Gain                on sale of Innodata and Edgar                Online common stock                                              |   |   | (1,777        | )      |   |   | (1,067                    | )      |   |   | (5,887        | )      |   |
|         Changes                in operating assets and                liabilities:                                                        |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|             Accounts                receivable and due from                clearing broker                            |   |   | 299           |   |   |   | 325                       |   |   |   | (783          | )      |   |
|             Due                from broker                                                                            |   |   | 2,629         |   |   |   | 20,160                    |   |   |   | 1,390         |   |   |
|             Marketable                securities                                                                      |   |   | (462          | )      |   |   | 7,916                     |   |   |   | (1,295        | )      |   |
|             Other                assets                                                                               |   |   | 306           |   |   |   | 137                       |   |   |   | 296           |   |   |
|             Accounts                payable and accrued                expenses                                       |   |   | 221           |   |   |   | (1,006                    | )      |   |   | 712           |   |   |
|             Trading                securities sold, but not yet                purchased                              |   |   | (2,121        | )      |   |   | (25,392                   | )      |   |   | (7,381        | )      |   |
|             Other                liabilities                                                                          |   |   | (60           | )      |   |   | (2,087                    | )      |   |   | 343           |   |   |
|                                                                                                                                                                              |   |        |               |        |   |        |                           |   |   |        |               |   |   |
|                 Net                cash provided by (used in)                operating activities |   |   | 1,308         |   |   |   | (656                      | )      |   |   | (6,149        | )      |   |
|                                                                                                                                                                              |   |        |               |        |   |        |                           |   |   |        |               |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                          |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|     Purchase                of fixed assets                                                                                                                   |   |   | (1,031        | )      |   |   | (726                      | )      |   |   | (683          | )      |   |
|     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                                                                |   |   | 1,787         |   |   |   | 1,085                     |   |   |   | 6,978         |   |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
|                 Net                cash provided by investing                activities           |   |   | 606           |   |   |   | 789                       |   |   |   | 6,295         |   |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                          |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|     Net                (payments) proceeds on note                payable - bank                                                                              |   |   | (150          | )      |   |   | 1,137                     |   |   |   |   - |   |   |
|     Net                payments on notes payable -                other                                                                                       |   |   |   - |   |   |   |     - |   |   |   | (494          | )      |   |
|     Net                proceeds on loans from employees                                                                                                       |   |   | 233           |   |   |   | 66                        |   |   |   | 154           |   |   |
|     Dividends                paid                                                                                                                             |   |   |   - |   |   |   |     - |   |   |   | (490          | )      |   |
|     Proceeds                from exercise of stock                options and warrants                                                                        |   |   | 56            |   |   |   |     - |   |   |   | 11            |   |   |
|     Excess                tax benefit from exercise of                stock options                                                                           |   |   | 11            |   |   |   |     - |   |   |   |   - |   |   |
|     Purchase                of treasury stock                                                                                                                 |   |   | (20           | )      |   |   | (3,676                    | )      |   |   | (806          | )      |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
|                 Net                cash provided by (used in)                financing activities |   |   | 130           |   |   |   | (2,473                    | )      |   |   | (1,625        | )      |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
| **EFFECT                OF EXCHANGE RATE DIFFERENCES ON                CASH**                                                                                                     |   |   | (5            | )      |   |   | (9                        | )      |   |   | (18           | )      |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
| **NET                INCREASE (DECREASE) IN CASH AND                EQUIVALENTS**                                                                                                 |   |   | 2,039         |   |   |   | (2,349                    | )      |   |   | (1,497        | )      |   |
|                                                                                                                                                                              |   |   |          |   |   |   |                      |   |   |   |          |   |   |
| **CASH                AND EQUIVALENTS, BEGINNING OF                YEAR**                                                                                                         |   |   | 4,469         |   |   |   | 6,818                     |   |   |   | 8,315         |   |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
| **CASH                AND EQUIVALENTS, END OF YEAR**                                                                                                                              |   | $      | 6,508         |   |   | $      | 4,469                     |   |   | $      | 6,818         |   |   |
|                                                                                                                                                                              |   |        |               |   |   |        |                           |   |   |        |               |   |   |
| **SUPPLEMENTAL                DISCLOSURES OF CASH FLOW                INFORMATION:**                                                                                              |   |   |          |   |   |   |                      |   |   |   |          |   |   |
|     Cash                paid for:   Interest                                                                                                   |   | $      | 346           |   |   | $      | 465                       |   |   | $      | 535           |   |   |
|                              Income taxes                                                                        |   |   | 708           |   |   |   | 1,943                     |   |   |   | 3,135         |   |   |
|                                                                                                                                                                              |   |   |          |   |   |   |                      |   |   |   |          |   |   |

----

**Track      Data Corporation and Subsidiaries**

**Notes      To Consolidated Financial Statements**

**Years      Ended December 31, 2006, 2005 and 2004**

**A.****The      Company and Summary of Significant Accounting      Policies**

***Description      of Business and Basis of      Presentation***

***Principles      of Consolidation***

***Cash      and Cash Equivalents***

***Accounts      Receivable***

***Marketable      Securities***

----

***Due      From Broker***

***Fixed      Assets***

***Software      and Database Costs***

***Long-lived      Assets***

----

***Foreign      Currency Translation***

***Revenue      Recognition***

***Income      Taxes***

***Research      and Development***

***Marketing      and Advertising***

***Segment      Reporting***

***Fair      Value of Financial Instruments***

***Use      of Estimates***

----

***Comprehensive      Income      (Loss)*****--**

***Earnings      Per Share***

***Accounting      for Stock Options***

|   |                                                                |                                                     |   |     |   |     |   |   |   |   |   |
|--------|---------------------------------------------------------------------|----------------------------------------------------------|--------|----------|--------|----------|--------|--------|--------|--------|--------|
|   |                                                                | **Year                Ended**                            |
|   |                                                                | **December                31,**                          |
|   |                                                                |                                                     |   | **2005** |   | **2004** |   |
|   |                                                                | (in                thousands, except earnings per share) |
|   |                                                                |                                                     |   |     |   |     |   |   |   |   |   |
|   | Net                (loss) income, as reported                       |                                                     |   | $        | (37    | )        |   | $      | 5,200  |   |   |
|   | Deduct:                Total stock-based employee compensation      |                                                     |   |     |   |     |   |   |   |   |   |
|   | expense                determined under fair value based method for |                                                     |   |     |   |     |   |   |   |   |   |
|   | all                awards, net of related tax effects               |                                                     |   |     | (476   | )        |   |   | (943   | )      |   |
|   |                                                                |                                                     |   |          |        |     |   |        |        |   |   |
|   | Net                (loss) income, as adjusted                       |                                                     |   | $        | (513   | )        |   | $      | 4,257  |   |   |
|   |                                                                |                                                     |   |          |        |     |   |        |        |   |   |
|   |                                                                |                                                     |   |     |   |     |   |   |   |   |   |
|   | Net                (loss) income per share:                         |                                                     |   |     |   |     |   |   |   |   |   |
|   | Basic                and diluted --as reported                      |                                                     |   |     | $(.00  | )        |   |   | $.53   |   |   |
|   |                                                                |                                                     |   |     |   |     |   |   |   |   |   |
|   | Basic                and diluted --as adjusted                      |                                                     |   |     | $(.05  | )        |   |   | $.44   |   |   |

----

***New      Pronouncements***

----

**B.****Fixed      Assets**

|                                         |   |   |     |   |   |   |   |     |   |   |
|----------------------------------------------|--------|--------|----------|--------|--------|--------|--------|----------|--------|--------|
|                                         |   |   | **2006** |   |   |   |   | **2005** |   |   |
| Equipment                                    |   | $      | 5,385    |   |   |   | $      | 4,442    |   |   |
| Telephone                systems             |   |        | 922      |   |   |   |   | 868      |   |   |
| Furniture                and fixtures        |   |   | 411      |   |   |   |   | 405      |   |   |
| Transportation                equipment      |   |   | 70       |   |   |   |   | 42       |   |   |
| Leasehold                improvements        |   |   | 380      |   |   |   |   | 380      |   |   |
|                                         |   |        |          |   |   |   |        |          |   |   |
|                                         |   |   | 7,168    |   |   |   |   | 6,137    |   |   |
| Less                accumulated depreciation |   |   |     |   |   |   |   |     |   |   |
| and                amortization              |   |   | 5,170    |   |   |   |   | 4,436    |   |   |
|                                         |   |        |          |   |   |   |        |          |   |   |
| Fixed                assets - net            |   | $      | 1,998    |   |   |   | $      | 1,701    |   |   |
|                                         |   |        |          |   |   |   |        |          |   |   |

**C.****Marketable      Securities**

|   |                                                                                              |   |   |                            |   |   |   |     |   |   |
|--------|---------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|--------|----------|--------|--------|
|   |                                                                                              |   |   | **December                31,** |   |   |
|   |                                                                                              |   |   |                                 |   |   |
|   |                                                                                              |   |   | **2006**                        |   |   |   | **2005** |   |   |
|   | Edgar                Online - Available for sale securities - at                market            |   | $      |   -                   |   |   | $      | 734      |   |   |
|   | Innodata                - Available for sale securities - at market                               |   |   | 730                             |   |   |   | 1,193    |   |   |
|   | Arbitrage                trading securities - at market                                           |   |   | 8,027                           |   |   |   | 7,565    |   |   |
|   |                                                                                              |   |        |                                 |   |   |        |          |   |   |
|   | Marketable                securities                                                              |   | $      | 8,757                           |   |   | $      | 9,492    |   |   |
|   |                                                                                              |   |        |                                 |   |   |        |          |   |   |
|   | Arbitrage                trading securities sold but not yet purchased - at                market |   | $      | 6,102                           |   |   | $      | 8,223    |   |   |
|   |                                                                                              |   |        |                                 |   |   |        |          |   |   |

----

----

**D.****Note      Payable - Bank**

**E.****Segment      Information**

|                                                                                                                              |   |   |                |   |   |   |     |   |   |   |                |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|--------|--------|----------|--------|--------|--------|---------------------|--------|--------|
| Revenues                                                                                                                          |   |   | **2006**            |   |   |   | **2005** |   |   |   | **2004**            |   |   |
| Professional                Market                                                                                                |   | $      | 29,642              |   |   | $      | 24,419   |   |   | $      | 25,124              |   |   |
| Non-Professional                Market                                                                                            |   |   | 12,344              |   |   |   | 11,675   |   |   |   | 14,969              |   |   |
|                                                                                                                              |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
|     Total                Revenues                                                                             |   | $      | 41,986              |   |   | $      | 36,094   |   |   | $      | 40,093              |   |   |
|                                                                                                                              |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| Arbitrage                Trading - Gain on sale of marketable                securities                                           |   | $      | 1,013               |   |   | $      | 819      |   |   | $      | 1,387               |   |   |
|                                                                                                                              |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| (Loss)                income before unallocated amounts and income                taxes:                                          |   |   |                |   |   |   |     |   |   |   |                |   |   |
|     Professional                Market                                                                        |   | $      | (1,829              | )      |   | $      | (2,742   | )      |   | $      | 455                 |   |   |
|     Non-Professional                Market                                                                    |   |   | 2,404               |   |   |   | 1,409    |   |   |   | 2,588               |   |   |
|     Arbitrage                Trading (including                interest)                                      |   |   | 843                 |   |   |   | 406      |   |   |   | 933                 |   |   |
|     Unallocated                amounts:                                                                       |   |   |                |   |   |   |     |   |   |   |                |   |   |
|         Depreciation                and                amortization                       |   |   | (659                | )      |   |   | (755     | )      |   |   | (1,053              | )      |   |
|         Gain                on sale of Innodata common                stock               |   |   | 1,777               |   |   |   | 1,067    |   |   |   | 5,887               |   |   |
|         Net                gain on sale of investment in                private companies |   |   |    - |   |   |   | 412      |   |   |   |    - |   |   |
|         Interest                income                (expense)-net                       |   |   | 43                  |   |   |   | (12      | )      |   |   | 4                   |   |   |
|                                                                                                                              |   |        |                     |   |   |        |          |   |   |        |                     |   |   |
| Income                (loss) before income taxes                                                                                  |   | $      | 2,579               |   |   | $      | (215     | )      |   | $      | 8,814               |   |   |
|                                                                                                                              |   |        |                     |   |   |        |          |   |   |        |                     |   |   |

----

**F.****Income      Taxes**

|                                                     |   |     |   |           |   |           |   |   |   |   |   |   |   |
|----------------------------------------------------------|--------|----------|--------|----------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                                                     |   |     |   |           |   |           |   |   |   |   |   |   |   |
|                                                     |   | **2006** |   |  **2005** |   |  **2004** |   |
| Federal:                                                 |   |     |   |           |   |           |   |   |   |   |   |   |   |
| Current                                                  |   | $        | 712    |           |   | $              | 28     |   |   | $      | 2,354  |   |   |
| Deferred                                                 |   |     | 36     |           |   |           | (12    | )      |   |   | 151    |   |   |
|                                                     |   |          |        |           |   |                |        |   |   |        |        |   |   |
| Total                federal                             |   |     | 748    |           |   |           | 16     |   |   |   | 2,505  |   |   |
|                                                     |   |          |        |           |   |                |        |   |   |        |        |   |   |
| State                and local:                          |   |     |   |           |   |           |   |   |   |   |   |   |   |
| Current                                                  |   |     | 275    |           |   |           | (193   | )      |   |   | 1,092  |   |   |
| Deferred                                                 |   |     | 7      |           |   |           | (1     | )      |   |   | 17     |   |   |
|                                                     |   |          |        |           |   |                |        |   |   |        |        |   |   |
| Total                state and local                     |   |     | 282    |           |   |           | (194   | )      |   |   | 1,109  |   |   |
|                                                     |   |          |        |           |   |                |        |   |   |        |        |   |   |
| Provision                for (benefit from) income taxes |   | $        | 1,030  |           |   | $              | (178   | )      |   | $      | 3,614  |   |   |
|                                                     |   |          |        |           |   |                |        |   |   |        |        |   |   |

|                                        |   |     |                |     |   |     |   |   |   |   |                |   |   |
|---------------------------------------------|--------|----------|---------------------|----------|--------|----------|--------|--------|--------|--------|---------------------|--------|--------|
|                                        |   | **2006** |                | **2005** |   | **2004** |   |
| Federal                statutory rate       |   |     | 34.0                | %        |   |     | (34.0  | )%     |   |   | 34.0                | %      |   |
| State                and local income taxes |   |     | 7.0                 |          |   |     | (60.0  | )      |   |   | 6.4                 |   |   |
| Non-deductible                penalties     |   |     |    - |     |   |     | 14.0   |   |   |   |    - |   |   |
| Other                                       |   |     | (1.1                | )        |   |     | (3.0   | )      |   |   | 0.6                 |   |   |
|                                        |   |     |                     |     |   |     |        |   |   |   |                     |   |   |
| Effective                rate               |   |     | 39.9                | %        |   |     | (83.0  | )%     |   |   | 41.0                | %      |   |
|                                        |   |     |                     |     |   |     |        |   |   |   |                     |   |   |

|                                                    |   |     |          |   |     |   |   |   |   |
|---------------------------------------------------------|--------|----------|---------------|--------|----------|--------|--------|--------|--------|
|                                                    |   | **2006** |          |   | **2005** |   |   |
| Deferred                tax assets:                     |   |     |          |   |     |   |   |   |   |
| Charitable                contributions                 |   | $        | 153           |   |     | $      | 129    |   |   |
| Deferred                compensation                    |   |     |   - |   |     |   | 65     |   |   |
| Other                                                   |   |     | 148           |   |     |   | 104    |   |   |
|                                                    |   |          |               |   |     |        |        |   |   |
|                                                    |   |     | 301           |   |     |   | 298    |   |   |
|                                                    |   |          |               |   |     |        |        |   |   |
| Deferred                tax liabilities:                |   |     |          |   |     |   |   |   |   |
| Unrealized                gain on marketable securities |   |     | (240          | )      |     |   | (722   | )      |   |
| Accelerated                depreciation                 |   |     | (589          | )      |     |   | (535   | )      |   |
|                                                    |   |          |               |   |     |        |        |   |   |
|                                                    |   |     | (829          | )      |     |   | (1,257 | )      |   |
|                                                    |   |          |               |   |     |        |        |   |   |
| Net                deferred tax liability               |   | $        | (528          | )      |     | $      | (959   | )      |   |
|                                                    |   |          |               |   |     |        |        |   |   |

----

**G.****Commitments      and Contingencies **

***Leases***

|                            |   |                                |    |          |   |      |   |                |   |   |   |   |    |   |   |
|---------------------------------|--------|-------------------------------------|---------|---------------|--------|-----------|--------|---------------------|--------|--------|--------|--------|---------|--------|--------|
|                            |   | **Operating                Leases** |    |          |   |
| **Year                Ending**  |   | **Office**                          |    | **Computer**  |   |      |   |
| **December                31,** |   | **Space**                           |    | **Equipment** |   | **Total** |   |
|                            |   |                                |    |          |   |      |   |                |   |   |   |   |    |   |   |
| 2007                            |   | $                                   | 301,000 |          |   |      | $      | 45,000              |   |   |   | $      | 346,000 |   |   |
| 2008                            |   |                                | 217,000 |          |   |      |   | 24,000              |   |   |   |   | 241,000 |   |   |
| 2009                            |   |                                | 155,000 |          |   |      |   |    - |   |   |   |   | 155,000 |   |   |
| 2010                            |   |                                | 76,000  |          |   |      |   |    - |   |   |   |   | 76,000  |   |   |
| Total                           |   | $                                   | 749,000 |          |   |      | $      | 69,000              |   |   |   | $      | 818,000 |   |   |
|                            |   |                                     |         |          |   |      |        |                     |   |   |   |        |         |   |   |
|                            |   |                                |    |          |   |      |   |                |   |   |   |   |    |   |   |

***Transactions      with Clearing Broker and      Customers***

----

***Net      Capital Requirements***

***Litigation***

**H.****Deferred      Compensation and Savings      Program**

----

**I.****Capital      Stock and Dividends**

***Common      Stock***

***Dividends***

***Preferred      Stock***

***Common      Stock Reserved***

**J.****Stock      Options**

----

----

|                            |   |                         |   |            |   |                            |   |          |      |            |   |         |   |                       |   |         |   |      |      |   |   |   |   |   |   |         |   |   |   |
|---------------------------------|--------|------------------------------|--------|-----------------|--------|---------------------------------|--------|---------------|-----------|-----------------|--------|--------------|--------|----------------------------|--------|--------------|--------|-----------|-----------|--------|--------|--------|--------|--------|--------|--------------|--------|--------|--------|
|                            |   |                         |   |            |   |                            |   |          |      |            |   |         |   |                       |   |         |   |      |      |   |   |   |   |   |   | **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                01/01/04 |   | $                            | 5.00   | -               | 6.25   |                            |   |          | 254,220   |            |   | 4            |   | $                          | 5.65   |         |   |      | 141,670   |   |   | $      | 5.65   |   |   |         |   |   |   |
|                            |   | $                            | 7.50   | -               | 10.00  |                            |   |          | 904,750   |            |   | 3            |   | $                          | 7.55   |         |   |      | 822,583   |   |   | $      | 7.50   |   |   |         |   |   |   |
|                            |   | $                            | 12.50  | -               | 18.75  |                            |   |          | 94,420    |            |   | 1            |   | $                          | 15.05  |         |   |      | 95,020    |   |   | $      | 15.05  |   |   |         |   |   |   |
|                            |   | $                            | 21.25  | -               | 33.75  |                            |   |          | 18,100    |            |   | 1            |   | $                          | 32.90  |         |   |      | 18,100    |   |   | $      | 32.90  |   |   |         |   |   |   |
|                            |   |                         |   |            |   |                            |   |          |           |            |   |         |   |                       |   |         |   |      |           |   |   |   |   |   |   |         |   |   |   |
|                            |   |                         |   |            |   |                            |   |          | 1,271,490 |            |   |         |   |                       |   |         |   |      | 1,077,373 |   |   |   |   |   |   |         |   |   |   |
|                            |   |                         |   |            |   |                            |   |          |      |            |   |         |   |                       |   |         |   |      |           |   |   |   |   |   |   |         |   |   |   |
| Canceled                        |   | $                            | 5.00   | -               | 27.50  |                            |   |          | (219,190  | )               |   | 1            |   | $                          | 11.35  |         |   |      |      |   |   |   |   |   |   |         |   |   |   |
| Exercised                       |   | $                            | 5.00   | -               | 7.50   |                            |   |          | (1,800    | )               |   | 3            |   | $                          | 5.95   |         |   |      |      |   |   |   |   |   |   |         |   |   |   |
| Granted                         |   | $                            | 7.50   |            |   |                            |   |          | 289,930   |            |   | 4            |   | $                          | 7.50   |         |   |      |      |   |   |   |   |   |   | $            | 6.25   |   |   |
|                            |   |                         |   |            |   |                            |   |          |           |            |   |         |   |                       |   |         |   |      |      |   |   |   |   |   |   |         |   |   |   |
| Balance                12/31/04 |   | $                            | 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   |   |   |         |   |   |   |
|                            |   |                         |   |            |   |                            |   |          |           |            |   |         |   |                       |   |         |   |      |           |   |   |   |   |   |   |         |   |   |   |

**K.****Retirement      Plan **

**L.****Sale      of Minority Interest **

----

**M.****Investment      in Private Companies**

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

**O.      Income (Loss) Per Share (in thousands, except per      share)**

|                                                      |   |                                      |   |     |   |     |    |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|-------------------------------------------|--------|----------|--------|----------|---------|--------|--------|--------|--------|--------|--------|
|                                                      |   | **Year                Ended December 31** |   |
|                                                      |   | **2006**                                  |   | **2005** |   | **2004** |    |
| Net                income (loss)                          |   | $                                         | 1,549  |     |   | $        | (37     | )      |   | $      | 5,200  |   |   |
|                                                      |   |                                           |        |     |   |          |         |   |   |        |        |   |   |
|                                                      |   |                                      |   |     |   |     |    |   |   |   |   |   |   |
| Weighted                average common shares outstanding |   |                                      | 8,382  |     |   |     | 9,221   |   |   |   | 9,732  |   |   |
| Dilutive                effect of outstanding options     |   |                                      | 19     |     |   |     |  - |   |   |   | 8      |   |   |
|                                                      |   |                                           |        |     |   |          |         |   |   |        |        |   |   |
| Adjusted                for dilutive computation          |   |                                      | 8,401  |     |   |     | 9,221   |   |   |   | 9,740  |   |   |
|                                                      |   |                                           |        |     |   |          |         |   |   |        |        |   |   |
|                                                      |   |                                      |   |     |   |     |    |   |   |   |   |   |   |
| Basic                income (loss) per share              |   |                                      | $.18   |     |   |     | $(.00   | )      |   |   | $.53   |   |   |
|                                                      |   |                                      |   |     |   |     |    |   |   |   |   |   |   |
| Diluted                income (loss) per share            |   |                                      | $.18   |     |   |     | $(.00   | )      |   |   | $.53   |   |   |

----

**P.****QUARTERLY      RESULTS OF OPERATIONS      (UNAUDITED)**

|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|-------------|-----------------------------------------------------|-------------|--------|-------------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                         |   | **First**   |                                                | **Second**  |   | **Third**   |   | **Fourth**  |   |
|                                                         |   | **Quarter** |                                                | **Quarter** |   | **Quarter** |   | **Quarter** |   |
|                                                         |   |        | **(in                thousands, except per share)** |        |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
| **2006**                                                     |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
| Revenues                                                     |   | $           | 10,524                                              |        |   | $           | 11,995 |        |   | $      | 10,323 |   |   | $      | 9,144  |   |   |
| Net                income (loss)                             |   |        | 701                                                 | (A)         |   |        | 914    | (A)         |   |   | 224    |   |   |   | (290   | )      |   |
| Basic                and diluted net income (loss) per share |   |        | $.08                                                | (A)         |   |        | $.11   | (A)         |   |   | $.03   |   |   |   | $(.03  | )      |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
| **2005**                                                     |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
| Revenues                                                     |   | $           | 10,109                                              |        |   | $           | 8,478  |        |   | $      | 8,798  |   |   | $      | 8,709  |   |   |
| Net                income (loss)                             |   |        | 286                                                 |        |   |        | (305   | )           |   |   | (274   | )      |   |   | 256    | (B)    |   |
| Basic                and diluted net income (loss) per share |   |        | $.03                                                |        |   |        | $(.03  | )           |   |   | $(.03  | )      |   |   | $.03   | (B)    |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |
|                                                         |   |        |                                                |        |   |        |   |        |   |   |   |   |   |   |   |   |   |

| (A)   | 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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | Includes                $247, net of income taxes, or $.03 per share, from                the sale of investment in private                companies. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM 9.  ****CHANGES IN AND DISAGREEMENTS WITH      ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES**

**ITEM        9A.  ****CONTROLS AND        PROCEDURES**

----

**PART      III**

**ITEM        10.  ****DIRECTORS, EXECUTIVE        OFFICERS AND CORPORATE GOVERNANCE**

**Officers      and Directors**

| **Name**                           |   | **Age** |   | **Position**                                                        |
|------------------------------------|--------|---------|--------|---------------------------------------------------------------------|
|                               |   |    |   |                                                                |
| Martin                Kaye         |   | 59      |   | Chief                Executive Officer since March 16, 2007,        |
|                               |   |    |   | Chief                Financial Officer, Secretary and Director      |
|                               |   |    |   |                                                                |
| Stanley                Stern       |   | 56      |   | Chief                Compliance Officer, TDSC, Director             |
|                               |   |    |   |                                                                |
| Albert                Drillick     |   | 60      |   | Senior                Systems Analyst, Director                     |
|                               |   |    |   |                                                                |
| Abraham                Biderman    |   | 58      |   | Director                                                            |
|                               |   |    |   |                                                                |
| E.                Bruce Fredrikson |   | 68      |   | Chairman                of the Board since March 16, 2007           |
|                               |   |    |   |                                                                |
| Philip                Ort          |   | 57      |   | Director                                                            |
|                               |   |    |   |                                                                |
| Shaya                Sofer         |   | 57      |   | Director                                                            |
|                               |   |    |   |                                                                |
| Key                Employees       |   |    |   |                                                                |
|                                    |   |    |   |                                                                |
| Barry                Hertz         |   | 56      |   | Chief                of Technology, served as Chairman of the Board |
|                               |   |    |   | and                Chief Executive Officer until March 16, 2007     |
| David                Drillick      |   | 35      |   | Chief                Operating Officer, TDSC                        |

**Martin      Kaye**

**Stanley      Stern**

**Albert      Drillick**

**Abraham      Biderman**

----

**Dr.      E. Bruce Fredrikson**

**Philip      Ort**

**Shaya      Sofer**

**Barry      Hertz **

**David      Drillick**

**Audit      Committee**

----

**Code of Ethics**

**Compliance      With Section 16(a) of the Securities Exchange      Act of 1934**

**ITEM      11. EXECUTIVE COMPENSATION**

**COMPENSATION      DISCUSSION AND ANALYSIS **

**Overview**

**Compensation      Program Objectives and Philosophy**

***In      General.***

***Competitive      Market.***

***Compensation      Process.***

----

***Regulatory      Considerations.***

**Base      Salaries **

***In      General.***

***Total      Compensation Comparison.***

**Annual      Cash Incentives **

***In      General.***

**Long-term      Equity Incentives **

***In      General.***

***Stock      Options.***

----

| **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                         |

**Executive      Benefits and Perquisites **

**Summary      Compensation Table**

|                                                                 |   |       |   |       |   |      |   |      |   |
|----------------------------------------------------------------------|--------|------------|--------|------------|--------|-----------|--------|-----------|--------|
|                                                                 |   | **Fiscal** |   | **Annual** |   |      |   |      |   |
| **Name                and Position**                                 |   | **Year**   |   | **Salary** |   | **Bonus** |   | **Total** |   |
|                                                                 |   |       |   |       |   |      |   |      |   |
| Barry                Hertz                                           |   | 2006       |   | $454,500   |   | -         |   | $454,500  |   |
| Chairman,                CEO until his resignation on March 16, 2007 |   |       |   |       |   |      |   |      |   |
|                                                                 |   |       |   |       |   |      |   |      |   |
| Martin                Kaye                                           |   | 2006       |   | $303,000   |   | -         |   | $303,000  |   |
| Chief                Executive Officer since March 16, 2007,         |   |       |   |       |   |      |   |      |   |
| Chief                Financial Officer                               |   |       |   |       |   |      |   |      |   |
|                                                                 |   |       |   |       |   |      |   |      |   |
| **Key                Employees**                                     |   |       |   |       |   |      |   |      |   |
| Stanley                Stern                                         |   | 2006       |   | $154,500   |   | -         |   | $154,500  |   |
| Senior                Vice President until December 1, 2005,         |   |       |   |       |   |      |   |      |   |
| Chief                Compliance Officer of TDSC since                |   |       |   |       |   |      |   |      |   |
| April                1, 2005                                         |   |       |   |       |   |      |   |      |   |
|                                                                 |   |       |   |       |   |      |   |      |   |
|                                                                 |   |       |   |       |   |      |   |      |   |
| David                Drillick                                        |   | 2006       |   | $165,000   |   | $9,000    |   | $174,000  |   |
| Chief                Operating Officer of TDSC                       |   |       |   |       |   |      |   |      |   |
| since                December 1, 2005                                |   |       |   |       |   |      |   |      |   |
|                                                                 |   |       |   |       |   |      |   |      |   |

----

**Outstanding      Equity Awards at December 31,      2006**

|   |                          |   |                                                                                      |   |                                     |   |                                      |   |     |   |   |
|--------|-------------------------------|--------|-------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|-------------------------------------------|--------|----------|--------|--------|
|   | **Name**                      |   | **Number                of Securities Underlying Unexercised Options                (1)** |   | **Option                Exercise Price** |   | **Option                Expiration Date** |   |
|   | Barry                Hertz    |   | 50,000                                                                                    |   |                                     | $5.00  |                                      |   | 01/22/08 |   |   |
|   |                          |   | 50,000                                                                                    |   |                                     | $6.25  |                                      |   | 01/22/08 |   |   |
|   |                          |   | 100,000                                                                                   |   |                                     | $7.50  |                                      |   | 03/11/09 |   |   |
|   |                          |   |                                                                                      |   |                                     |   |                                      |   |     |   |   |
|   | 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 |   |   |
|   |                          |   |                                                                                      |   |                                     |   |                                      |   |     |   |   |
|   | 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 |   |   |
|   |                          |   |                                                                                      |   |                                     |   |                                      |   |     |   |   |

**Directors      Compensation Table**

|                               |   |                                           |   |                                      |   |      |   |
|------------------------------------|--------|------------------------------------------------|--------|-------------------------------------------|--------|-----------|--------|
| **Name**                           |   | **Fees                Earned or Paid in Cash** |   | **All                Other Compensation** |   | **Total** |   |
| E.                Bruce Fredrikson |   | $15,000                                        |   | $1,500                                    |   | $16,500   |   |
| Abraham                Biderman    |   | $15,000                                        |   | $1,500                                    |   | $16,500   |   |
| Philip                Ort          |   | $15,000                                        |   | $1,000                                    |   | $16,000   |   |
| Shaya                Sofer         |   | $15,000                                        |   | $1,000                                    |   | $16,000   |   |

**Compensation Committee Interlocks and Insider Participation**

----

**Compensation      Committee Report**

**Board      of Directors:**

**Stock      Price Performance Graph**

----

**ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT **

|   |                                                 |   |                                             |   |                          |   |   |   |
|--------|------------------------------------------------------|--------|--------------------------------------------------|--------|-------------------------------|--------|--------|--------|
|   |                                                 |   | **Shares                Owned Beneficially (1)** |   |
|   | **Name**                                             |   | **No.                of Shares**                 |   | **%                of Class** |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Barry                Hertz (2)                  |   | 4,902,775                                        |   |                          | 57.    | 1%     |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Martin                Kaye (3)                  |   | 137,680                                          |   |                          | 1.     | 6%     |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Stanley                Stern (4)                |   | 27,953                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Albert                Drillick (5)                   |   | 38,180                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Abraham                Biderman (6)                  |   | 24,000                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | E.                Bruce Fredrikson (7)               |   | 27,600                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Philip                Ort (6)                        |   | 18,000                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | Shaya                Sofer (6)                       |   | 18,000                                           |   |                          | *      |   |   |
|   |                                                 |   |                                             |   |                          |   |   |   |
|   | All                Officers and Directors as a Group |   |                                             |   |                          |   |   |   |
|   | (eight                persons)(8)               |   | 5,194,188                                        |   |                          | 58.    | 8%     |   |

| (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                shares                outstanding. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Consists                of 3,985,906 shares owned by Mr. Hertz, 697,880                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 200,000                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 130,000 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 18,000 shares                issuable upon the exercise of presently exercisable options granted                under                the Company's Stock Option Plans. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Consist                of 30,220 shares owned of record jointly with his                wife, 660 shares owned by a trust in the name of his child, and 7,300                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 22,000 shares                issuable upon the exercise of presently exercisable options granted                under                the Company's Stock Option Plans. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Consists                of 4,756,888 outstanding shares and 437,300 shares                issuable upon exercise of options described in footnotes 2 through                7                above. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Potential      Change in Control**

----

**Equity      Compensation Plan Information**

|   |                                                                                         |                                      |      |   |   |
|--------|----------------------------------------------------------------------------------------------|-------------------------------------------|-----------|--------|--------|
|   |                                                                                         |  At                December 31, 2006 |      |
|   |                                                                                         |                                      |      |   |   |
| a)     | Number                of securities to be issued upon exercise of                outstanding |                                      |      |   |   |
|   | options                                                                                      |                                      | 686,000   |   |   |
|   |                                                                                         |                                      |      |   |   |
| b)     | Weighted-average                exercise price of outstanding options                        |                                      | $5.67     |   |   |
|   |                                                                                         |                                      |      |   |   |
| c)     | Number                of securities remaining available for future issuance                  |                                      |      |   |   |
|   | under                equity compensation plans (excluding securities reflected               |                                      |      |   |   |
|   | in                (a) above)                                                                 |                                      | 1,299,000 |   |   |
|   |                                                                                         |                                      |      |   |   |

**ITEM        13. ****CERTAIN RELATIONSHIPS AND        RELATED TRANSACTIONS, AND DIRECTOR        INDEPENDENCE**** **

----

**Corporate Governance**

**ITEM        14. ****PRINCIPAL ACCOUNTANT FEES        AND SERVICES**** **

----

**PART      IV**

**ITEM        15. ****EXHIBITS AND FINANCIAL STATEMENT        SCHEDULES.**

| (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, 2000 (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) |
|                                         |   | 23.1                                                                                                                                              |   | Consent                of Marcum & Kliegman LLP filed herewith |
|                                         |   | 23.2                                                                                                                                              |   | Consent                of Grant Thornton 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          |
|                                         |   |                                                                                                                                              |   |   |

----

**SIGNATURES**

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

| **Signature**                          |   | **Title**                                                                                                  |   | **Date**                      |
|----------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|-------------------------------|
|                                        |   |                                                                                                            |   |                               |
|                                   |   |                                                                                                       |   |                          |
| /s/                Martin Kaye         |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Martin                Kaye             |   | Chief                  Executive Officer, Chief Financial Officer, Secretary and                  Director |   |                          |
|                                   |   | (principal                Financial and Accounting Officer)                                                |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                Stanley Stern       |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Stanley                Stern           |   | Director                                                                                                   |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                Albert Drillick     |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Albert                Drillick         |   |  Director                                                                                             |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                Abraham Biderman    |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Abraham                Biderman        |   |  Director                                                                                             |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                E. Bruce Fredrikson |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| E.                Bruce Fredrikson     |   |  Director                                                                                             |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                Philip Ort          |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Philip                Ort              |   |  Director                                                                                             |   |                          |
|                                   |   |                                                                                                       |   |                          |
| /s/                Shaya Sofer         |   |                                                                                                       |   | March                26, 2007 |
|                                        |   |                                                                                                       |   |                          |
| Shaya                Sofer             |   |  Director                                                                                             |   |                          |
|                                   |   |                                                                                                       |   |                          |