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Interactive Brokers Group, Inc. Message Board

  • edgar_reader edgar_reader Jul 30, 2009 2:30 PM Flag


    This writer is a huge fan of Hogan's Heroes, the late 60s-early 70s sitcom, and has always loved its anti-Nazi and anti-totalitarian humor, and comedic portrayal of the ineptitude and dishonesty of functionaries and bureaucrats. In a particular episode of the show, Stalag 13's bungling commandant, Colonel Wilhelm Klink, is trying to explain away one of his ever present screwups to his commanding officer, General Albert Burkhalter. "Klink! Stop taking credit for a disaster," Burkhalter replied!

    In 2006, IBKR's market share in US options was around 23%, and its competitors were scrambling in their efforts to figure out why IBKR was surging ahead and halt the options market making business from moving even more decisively away from them than it already had. In the second quarter of 2009, as Thomas "Wilhelm" Peterffy stated about IBKR in its earnings conference call, "our market share of global and US option volumes fell to 11.1% and 13.5% respectively during the second quarter." Later in that call, IBKR CFO Paul Brody characterized how dismal a situation that drop in market share represents by revealing that "pretax income was $192 million, down 26% in the same quarter last year." Thomas "Wilhelm" Peterffy also said in that same conference call that "increase in exchange volumes and the compression of spreads were the result of new competitors, high frequency traders entering the market in ever-increasing numbers." Thomas "Wilhelm" Peterffy also said a bit later that "the fact is that more of this volume being inflated by computers, and it’s not necessarily the kind of volume in which you want to participate."

    KLINK, STOP TAKING CREDIT FOR A DISASTER! Your 2nd quarter pre-tax income FELL BY TWENTY SIX PERCENT in an environment where your industry is growing! The fact is that over the past 3 and 1/2 years, your competitors in options trading have blown you out of the water. They are simply better at pricing options now than you are. Where 3 and 1/2 years ago, hedge fund and automated trading activity in listed options was business you were eager to do, today you are a bungling bureaucrat, making excuses to General Burkhalter that your pulling away from your bread and butter market is desirable, and about how you don't want to do business that you were excellent at doing 3 and 1/2 years ago. 3 and 1/2 years ago, your “computers” were smarter than those of your competitors. That situation has obviously been reversed.

    Here is a suggestion for Thomas "Wilhelm" Peterffy: reverse the slide in your competitive stance, or admit that you can't and fire yourself and your senior staff.

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    • one company having 25% of options market smells of market collusion with another market maker.

    • wow the options market is flea market.. a two bit shit company owning 23% of volume.

    • This situation just keeps getting funnier...

    • Still no word from IBKR concerning their disatrous decline in market share? How many CEOs would be allowed to stonewall a 26% drop year over year in their core business income before income taxes?

    • Well, where is it? Where is the IBKR board of directors assuring the common shareholder that market share declines will be reversed, and that there is a concrete plan for doing so? Do they have a clue?

    • The recent pop in this PoS can not last. All it was is short covering, which will now get unraveled as the shorts get put back on. The story about this stock is completely negative. There is no reason to believe that IBKR's senior management has a clue abut how to even get back the numbers of a year ago, let alone 3 1/2 years ago. The business has slipped through their fingers.

    • It took you all week to come up with that! I was hoping you'd do better once you came out of your shell. They've made several billion dollars since they've canned your sorry arse for what must have been incompetence. Your jealously little bailyman is so desperate it's pathetic. The market seems to disagree with your comments as the stock is only up over 16% since you encouraged all to play the earnings flip. I'd feel bad for you for all the money that you would have lost but we all know that you have never backed your words with any action. I'd encourage you to try to get over your obsession - it may help with all those sleepless nights you've had tossing and turning over how much money you could have made with them.

      • 1 Reply to baileycantprogram
      • Two observations...

        1) A pump and dump IBKR employee posting has occurred that isn't laden with homosexual/pathological references! Yes, it actually happened. No references to the men's room, or sucking something! True, the word "arse" actually happened, but hey, progress is being made.

        2) As always, the root of the issue at hand is not being addressed. IBKR's best days are far behind it. The core market making business is rapidly shrinking on them, and IBKR's senior management has no idea of any kind how to reverse the trend. Take a look at Thomas "Wilhelm" Peterffy's latest conference call, and you will not see one solid word pertaining to plans to halt IBKR's rapid decline in competitive capability. What does Herr Commandant Thomas Klink plan to do to get back all of the market share he has lost? He has no idea. As Sargent Hans Shultz would say, "I SEE NOTHING, I KNOW NOTHING!"

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