CORRECTING and REPLACING Investment Technology Group Reports Third Quarter 2009 Results

The corrected release reads:

INVESTMENT TECHNOLOGY GROUP REPORTS THIRD QUARTER 2009 RESULTS

Investment Technology Group, Inc. (NYSE: ITG), a leading agency broker and financial technology firm, today announced that for the third quarter ended September 30, 2009, net income was $17.5 million, or $0.40 per diluted share, versus net income of $27.2 million and earnings of $0.62 per diluted share in the third quarter of 2008. ITG's revenues for the third quarter of 2009 were $158.4 million versus $188.3 million for the third quarter of 2008. Pre-tax margins in the third quarter of 2009 were 17.7 percent compared to 24.2 percent in the third quarter of 2008.

"The third quarter saw mutual fund flows directed largely towards international funds and index funds, with flows to our core active domestic clients turning negative in August," said Bob Gasser, ITG's Chief Executive Officer and President. "While this made for a challenging environment, we are confident that the market will see a recovery in these fund flows and that we will benefit from the strong operating leverage of our platform. We continue to manage costs aggressively while investing selectively in markets and products that hold promise for our top and bottom lines with the return of improved market conditions."

ITG's non-US revenues were $43.8 million in the third quarter of 2009 versus $47.2 million in the third quarter of 2008. Non-US operations posted net income of $0.2 million in the third quarter of 2009, compared to $0.6 million of net income in the third quarter of 2008.

"Our European business benefited from product parity with North America as well as declining transaction processing costs, and we are well positioned to benefit from additional market recovery. In Europe, ITG posted its second consecutive quarter of revenue growth and profitability," said Mr. Gasser. "While our core client business in Canada remains strong, revenues were pressured by declining market volumes and a rapidly changing market structure. In the Asia Pacific region, better stock price performance did not correlate with higher turnover across the region, yet we did grow our revenue and gain market share. We continue to invest heavily in people, products and relationships as we position the firm for a greater role in the Asia Pacific markets."

Year to Date results

For the nine months ended September 30, 2009, revenues were $482.1 million compared to $572.9 million in the prior year period. Net income was $50.6 million and diluted earnings per share were $1.15 in the first nine months of 2009 versus net income of $85.9 million and diluted earnings per share of $1.95 in the first nine months of 2008.

Conference Call

ITG has scheduled a conference call today at 11:00 a.m. ET to discuss third quarter results. Those wishing to listen to the call should dial 800-295-3991 and enter the pass code 79761413 at least 10 minutes prior to the start of the call to ensure connection. The conference call and webcast will also be accessible through ITG's web site at www.itg.com. For those unable to listen to the live broadcast of the call, a replay will be available for one week by dialing 888-286-8010 and entering the pass code 48014893. The replay will be available starting approximately two hours after the completion of the conference call.

About ITG

Investment Technology Group, Inc., is a specialized agency brokerage and financial technology firm that partners with asset managers globally to provide innovative solutions spanning the investment continuum. A leader in electronic trading since launching POSIT(R) in 1987, ITG's integrated approach now includes a range of products from portfolio management and pre-trade analysis to trade execution and post-trade evaluation. Asset managers rely on ITG's independence, experience, and agility to help mitigate risk, improve performance and navigate increasingly complex markets. The firm is headquartered in New York with offices in North America, Europe and the Asia Pacific region. For more information on ITG, please visit www.itg.com.

In addition to historical information, this press release may contain "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors are noted throughout ITG's 2008 Annual Report, on its Form 10-K, and on its Form 10-Qs and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, changes in commission pricing, evolving industry regulations, errors or malfunctions in our systems or technology, rapid changes in technology, cash flows into or redemptions from equity funds, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate companies we have acquired, changes in tax policy or accounting rules, fluctuations in foreign exchange rates, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally.

INVESTMENT TECHNOLOGY GROUP,INC.
Consolidated Statements of Income (unaudited)
(In thousands, except per share amounts)
                                                              Three Months Ended        Nine Months Ended
                                                              September 30,             September 30,
                                                              2009         2008         2009         2008
Revenues:
Commissions and fees (1)                                      $   132,069  $   162,083  $   407,113  $   491,527
Recurring                                                     22,145       21,958       65,290       65,888
Other                                                         4,224        4,237        9,667        15,498
Total revenues                                                158,438      188,278      482,070      572,913
Expenses:
Compensation and employee benefits                            56,758       64,640       175,833      194,038
Transaction processing                                        24,204       24,421       72,050       73,103
Occupancy and equipment                                       14,958       14,986       44,696       42,741
Telecommunications and data processing services               13,770       14,026       41,052       39,214
Other general and administrative                              20,307       23,004       60,705       69,537
Interest expense                                              407          1,637        2,220        5,593
Total expenses                                                130,404      142,714      396,556      424,226
Income before income tax expense                              28,034       45,564       85,514       148,687
Income tax expense                                            10,556       18,393       34,887       62,788
Net income                                                    $   17,478   $   27,171   $   50,627   $   85,899
Earnings per share:
Basic                                                         $   0.40     $   0.63     $   1.16     $   1.97
Diluted                                                       $   0.40     $   0.62     $   1.15     $   1.95
Basic weighted average number of common shares outstanding    43,627       43,463       43,479       43,598
Diluted weighted average number of common shares outstanding  44,126       43,869       43,859       44,122

(1) We have changed the income caption commissions revenues to commissions and fee revenues to better reflect the commission equivalent fees earned on spread based trades.

INVESTMENT TECHNOLOGY GROUP,INC.
Consolidated Statements of Financial Condition
(In thousands, except share amounts)
                                                                   September 30, 2009    December 31, 2008
                                                                   (unaudited)
Assets
Cash and cash equivalents                                          $         354,050     $        352,960
Cash restricted or segregated under regulations and other          92,962                73,218
Deposits with clearing organizations                               21,253                43,241
Securities owned, at fair value                                    6,736                 6,399
Receivables from brokers, dealers and clearing organizations       590,138               328,528
Receivables from customers                                         857,125               300,158
Premises and equipment, net                                        40,577                48,321
Capitalized software, net                                          72,059                62,821
Goodwill                                                           425,598               423,896
Other intangibles, net                                             29,047                31,094
Deferred taxes                                                     6,455                 2,591
Other assets                                                       14,023                12,226
Total assets                                                       $         2,510,023   $        1,685,453
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses                              $         221,591     $        221,582
Short-term bank loans                                              --                    24,900
Payables to brokers, dealers and clearing organizations            854,382               232,527
Payables to customers                                              476,899               287,515
Securities sold, not yet purchased, at fair value                  49                    2,479
Income taxes payable                                               9,313                 25,646
Deferred taxes                                                     19,890                8,924
Long term debt                                                     58,800                94,500
Total liabilities                                                  1,640,924             898,073
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no  --                    --
shares issued or outstanding
Common stock, $0.01 par value; 100,000,000 shares authorized;      517                   516
51,682,153 and 51,582,306 shares issued at September 30, 2009 and
December 31, 2008, respectively, and 43,683,428 and 43,244,184
shares outstanding at September 30, 2009 and December 31, 2008,
respectively
Additional paid-in capital                                         230,234               219,830
Retained earnings                                                  816,946               766,319
Common stock held in treasury, at cost; 7,998,725 and 8,338,122    (185,204            ) (193,206           )
shares at September 30, 2009 and December 31, 2008, respectively
Accumulated other comprehensive income (net of tax)                6,606                 (6,079             )
Total stockholders' equity                                         869,099               787,380
Total liabilities and stockholders' equity                         $         2,510,023   $        1,685,453

SOURCE: Investment Technology Group, Inc.

ITG: 
J.T. Farley, 212-444-6259