the key elements of our strategy are : to innovate and efficiently add new functionality and product offerings to the marketaxess platform that we believe will help to increase our market share with existing clients , as well as expand our client base ; to leverage our technology , as well as our strong broker-dealer and institutional investor relationships , to deploy our electronic trading platform into additional product segments within the fixed-income securities markets , deliver fixed-income securities-related technical services and products , and deploy our electronic trading platform into new client segments ; to continue building our existing service offerings so that our electronic trading platform is fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; -44- to add new content and analytical capabilities to corporate bondticker in order to improve the value of the information we provide to our clients ; and to continue to supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . on october 26 , 2012 , we entered into an agreement to acquire all of the outstanding shares of xtrakter limited ( xtrakter ) from euroclear s.a./n.v . xtrakter is a u.k.-based provider of regulatory transaction reporting , financial market data and trade matching services to the european securities markets . the acquisition of xtrakter will provide us with an expanded set of technology solutions ahead of incoming regulatory mandates from the markets in financial instruments directive in europe . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and consolidation or contraction of broker-dealers . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage , in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer trading companies . competitors , including companies in which some of our broker-dealer clients have invested , have developed electronic trading platforms or have announced their intention to explore the development of electronic platforms that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . our u.s. subsidiary , marketaxess corporation , is a registered broker-dealer with the sec and is a member of finra . our u.k. subsidiary , marketaxess europe limited , is registered as a multilateral trading facility dealer with the fsa in the u.k. marketaxess canada limited , a canadian subsidiary , is registered as an alternative trading system dealer under the securities act of ontario and is a member of the investment industry regulatory organization of canada . relevant regulations prohibit repayment of borrowings from these subsidiaries or their affiliates , paying cash dividends , making loans to us or our affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources , without prior notification to or approval from such regulated entity 's principal regulator . -45- in july 2010 , the dodd-frank wall street reform and consumer protection act ( the dodd-frank act ) was signed into law . u.s. financial regulators are in the midst of an intense period of rulemaking that is required to implement the provisions of the dodd-frank act , and market participants will need to make strategic decisions in an environment of regulatory uncertainty . among the most significant aspects of the derivatives section of the dodd-frank act are mandatory clearing of certain derivatives transactions ( swaps ) through regulated central clearing organizations and mandatory trading of those swaps through either regulated exchanges or swap execution facilities , in each case , subject to certain key exceptions . as with other parts of the dodd-frank act , many of the details of the new regulatory regime relating to swaps are left to the regulators to determine through rulemaking . story_separator_special_tag income taxes income taxes are accounted for using the asset and liability method . deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in the consolidated statements of operations . business combinations , goodwill and intangibles assets business combinations are accounted for under the purchase method . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we perform an impairment review of goodwill on an annual basis and more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from five to ten years . intangible assets are assessed for impairment when events or circumstances indicate a possible impairment . segment results as an electronic , multi-dealer platform for trading fixed-income securities , our operations constitute a single business segment . because of the highly integrated nature of the financial markets in which we compete and the integration of our worldwide business activities , we believe that results by geographic region , products or types of clients are not necessarily meaningful in understanding our business . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 overview total revenues increased by $ 17.1 million or 9.4 % to $ 198.2 million for the year ended december 31 , 2012 from $ 181.1 million for the year ended december 31 , 2011. this increase in total revenues was primarily due to an increase in commissions of $ 18.8 million . total expenses increased by $ 9.2 million or 8.9 % to $ 111.5 million for the year ended december 31 , 2012 from $ 102.4 million for the year ended december 31 , 2011. the increase was primarily due to higher professional and consulting fees of $ 2.9 million , technology and communications expense of $ 1.9 million , employee compensation and benefits expense of $ 1.6 million and amortization and depreciation expenses of $ 1.5 million . -50- income before taxes increased by $ 8.0 million or 10.1 % to $ 86.7 million for the year ended december 31 , 2012 from $ 78.7 million for the year ended december 31 , 2011. net income increased by $ 12.4 million or 25.9 % to $ 60.1 million for the year ended december 31 , 2012 from $ 47.7 million for the year ended december 31 , 2011. revenues our revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th commissions . our commission revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_5_th due in part to the continuing sovereign debt concerns and the competitive environment in europe , trading volume in our eurobond product significantly decreased over the past several years . monthly distribution fees paid by most of our european broker-dealer market makers were reduced effective march 1 , 2012 , but the dealer variable fee schedule remained unchanged . several additional european broker-dealer market-makers remain on the original fee plan and may move to the new fee plan in the future . -51- the following table shows the extent to which the increase in commissions for the year ended december 31 , 2012 was attributable to changes in transaction volumes , variable transaction fees per million and distribution fees : replace_table_token_6_th our trading volume for each of the years presented was as follows : replace_table_token_7_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 13.6 % increase in u.s. high-grade volume was principally due to an increase in the company 's estimated market share of total u.s. high-grade corporate bond volume as reported by trace from 11.1 % for the year ended december 31 , 2011 to 12.4 % for the year ended december 31 , 2012. estimated trace u.s. high-grade volume for the year ended december 31 , 2012 was $ 3.0 trillion , an increase of approximately 1.6 % from the year ended december 31 , 2011. our eurobond volumes decreased by 6.5 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 due , in part , to unfavorable market conditions in the european region . emerging markets , high-yield and other volume increased by 13.9 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 , primarily due to higher emerging markets and high-yield bond volumes . our average variable transaction fee per million for the years ended december 31 , 2012 and 2011 was as follows : replace_table_token_8_th -52- the u.s. high-grade average variable transaction fee per million increased to $

liquidity and capital resources during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and securities available-for-sale totaled $ 180.1 million at december 31 , 2012. on january 14 , 2013 , we entered into a three-year credit agreement that provides for revolving loans and letters of credit up to an aggregate of $ 50.0 million . subject to satisfaction of certain specified conditions , we are permitted to upsize the credit facility by an additional $ 50.0 million in total . our cash flows were as follows : replace_table_token_18_th we define free cash flow as cash flow from operating activities less expenditures for furniture , equipment and leasehold improvements and capitalized software development costs . for the years ended december 31 , 2012 , 2011 and 2010 , free cash flow was $ 71.2 million , $ 58.3 million and $ 57.0 million , respectively . free cash flow is a non-gaap financial measure . we believe that this non-gaap financial measure , when taken into consideration with the corresponding gaap financial measures , is important in gaining an understanding of our financial strength and cash flow generation . -60- cash flows for the year ended december 31 , 2012 compared to year ended december 31 , 2011 net cash provided by operating activities was $ 81.6 million for the year ended december 31 , 2012 compared to $ 65.5 million for the year ended december 31 , 2011. the $ 16.1 million increase was due to higher net income of $ 12.4 million and an increase in cash provided by working capital of $ 17.5 million , offset by a decrease in deferred taxes of $ 16.8 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and securities available-for-sale totaled $ 180.1 million at december 31 , 2012. on january 14 , 2013 , we entered into a three-year credit agreement that provides for revolving loans and letters of credit up to an aggregate of $ 50.0 million . subject to satisfaction of certain specified conditions , we are permitted to upsize the credit facility by an additional $ 50.0 million in total . our cash flows were as follows : replace_table_token_18_th we define free cash flow as cash flow from operating activities less expenditures for furniture , equipment and leasehold improvements and capitalized software development costs . for the years ended december 31 , 2012 , 2011 and 2010 , free cash flow was $ 71.2 million , $ 58.3 million and $ 57.0 million , respectively . free cash flow is a non-gaap financial measure . we believe that this non-gaap financial measure , when taken into consideration with the corresponding gaap financial measures , is important in gaining an understanding of our financial strength and cash flow generation . -60- cash flows for the year ended december 31 , 2012 compared to year ended december 31 , 2011 net cash provided by operating activities was $ 81.6 million for the year ended december 31 , 2012 compared to $ 65.5 million for the year ended december 31 , 2011. the $ 16.1 million increase was due to higher net income of $ 12.4 million and an increase in cash provided by working capital of $ 17.5 million , offset by a decrease in deferred taxes of $ 16.8 million .
```    
 Suspicious Activity Report : the key elements of our strategy are : to innovate and efficiently add new functionality and product offerings to the marketaxess platform that we believe will help to increase our market share with existing clients , as well as expand our client base ; to leverage our technology , as well as our strong broker-dealer and institutional investor relationships , to deploy our electronic trading platform into additional product segments within the fixed-income securities markets , deliver fixed-income securities-related technical services and products , and deploy our electronic trading platform into new client segments ; to continue building our existing service offerings so that our electronic trading platform is fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; -44- to add new content and analytical capabilities to corporate bondticker in order to improve the value of the information we provide to our clients ; and to continue to supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . on october 26 , 2012 , we entered into an agreement to acquire all of the outstanding shares of xtrakter limited ( xtrakter ) from euroclear s.a./n.v . xtrakter is a u.k.-based provider of regulatory transaction reporting , financial market data and trade matching services to the european securities markets . the acquisition of xtrakter will provide us with an expanded set of technology solutions ahead of incoming regulatory mandates from the markets in financial instruments directive in europe . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and consolidation or contraction of broker-dealers . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage , in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer trading companies . competitors , including companies in which some of our broker-dealer clients have invested , have developed electronic trading platforms or have announced their intention to explore the development of electronic platforms that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . our u.s. subsidiary , marketaxess corporation , is a registered broker-dealer with the sec and is a member of finra . our u.k. subsidiary , marketaxess europe limited , is registered as a multilateral trading facility dealer with the fsa in the u.k. marketaxess canada limited , a canadian subsidiary , is registered as an alternative trading system dealer under the securities act of ontario and is a member of the investment industry regulatory organization of canada . relevant regulations prohibit repayment of borrowings from these subsidiaries or their affiliates , paying cash dividends , making loans to us or our affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources , without prior notification to or approval from such regulated entity 's principal regulator . -45- in july 2010 , the dodd-frank wall street reform and consumer protection act ( the dodd-frank act ) was signed into law . u.s. financial regulators are in the midst of an intense period of rulemaking that is required to implement the provisions of the dodd-frank act , and market participants will need to make strategic decisions in an environment of regulatory uncertainty . among the most significant aspects of the derivatives section of the dodd-frank act are mandatory clearing of certain derivatives transactions ( swaps ) through regulated central clearing organizations and mandatory trading of those swaps through either regulated exchanges or swap execution facilities , in each case , subject to certain key exceptions . as with other parts of the dodd-frank act , many of the details of the new regulatory regime relating to swaps are left to the regulators to determine through rulemaking . story_separator_special_tag income taxes income taxes are accounted for using the asset and liability method . deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in the consolidated statements of operations . business combinations , goodwill and intangibles assets business combinations are accounted for under the purchase method . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we perform an impairment review of goodwill on an annual basis and more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from five to ten years . intangible assets are assessed for impairment when events or circumstances indicate a possible impairment . segment results as an electronic , multi-dealer platform for trading fixed-income securities , our operations constitute a single business segment . because of the highly integrated nature of the financial markets in which we compete and the integration of our worldwide business activities , we believe that results by geographic region , products or types of clients are not necessarily meaningful in understanding our business . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 overview total revenues increased by $ 17.1 million or 9.4 % to $ 198.2 million for the year ended december 31 , 2012 from $ 181.1 million for the year ended december 31 , 2011. this increase in total revenues was primarily due to an increase in commissions of $ 18.8 million . total expenses increased by $ 9.2 million or 8.9 % to $ 111.5 million for the year ended december 31 , 2012 from $ 102.4 million for the year ended december 31 , 2011. the increase was primarily due to higher professional and consulting fees of $ 2.9 million , technology and communications expense of $ 1.9 million , employee compensation and benefits expense of $ 1.6 million and amortization and depreciation expenses of $ 1.5 million . -50- income before taxes increased by $ 8.0 million or 10.1 % to $ 86.7 million for the year ended december 31 , 2012 from $ 78.7 million for the year ended december 31 , 2011. net income increased by $ 12.4 million or 25.9 % to $ 60.1 million for the year ended december 31 , 2012 from $ 47.7 million for the year ended december 31 , 2011. revenues our revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th commissions . our commission revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_5_th due in part to the continuing sovereign debt concerns and the competitive environment in europe , trading volume in our eurobond product significantly decreased over the past several years . monthly distribution fees paid by most of our european broker-dealer market makers were reduced effective march 1 , 2012 , but the dealer variable fee schedule remained unchanged . several additional european broker-dealer market-makers remain on the original fee plan and may move to the new fee plan in the future . -51- the following table shows the extent to which the increase in commissions for the year ended december 31 , 2012 was attributable to changes in transaction volumes , variable transaction fees per million and distribution fees : replace_table_token_6_th our trading volume for each of the years presented was as follows : replace_table_token_7_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 13.6 % increase in u.s. high-grade volume was principally due to an increase in the company 's estimated market share of total u.s. high-grade corporate bond volume as reported by trace from 11.1 % for the year ended december 31 , 2011 to 12.4 % for the year ended december 31 , 2012. estimated trace u.s. high-grade volume for the year ended december 31 , 2012 was $ 3.0 trillion , an increase of approximately 1.6 % from the year ended december 31 , 2011. our eurobond volumes decreased by 6.5 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 due , in part , to unfavorable market conditions in the european region . emerging markets , high-yield and other volume increased by 13.9 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 , primarily due to higher emerging markets and high-yield bond volumes . our average variable transaction fee per million for the years ended december 31 , 2012 and 2011 was as follows : replace_table_token_8_th -52- the u.s. high-grade average variable transaction fee per million increased to $

