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Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for June 2020, includes Reg.-NMS Execution Statistics

·11 mins read

Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for June.

Brokerage highlights for the month included:

  • 1,862 thousand Daily Average Revenue Trades (DARTs)1, 131% higher than prior year and 13% higher than prior month.

  • Ending client equity of $203.2 billion, 33% higher than prior year and 7% higher than prior month.

  • Ending client margin loan balances of $24.9 billion, 3% lower than prior year and 7% higher than prior month.

  • Ending client credit balances of $71.0 billion, including $3.1 billion in insured bank deposit sweeps2, 30% higher than prior year and 1% higher than prior month.

  • 876 thousand client accounts, 36% higher than prior year and 4% higher than prior month.

  • 487 annualized average cleared DARTs1 per client account.

  • Average commission per cleared Commissionable Order3 of $2.83 including exchange, clearing and regulatory fees. Key products:

June 2020

Average Commission per

Average

Cleared Commissionable Order

Order Size

Stocks

$2.03

1,139 shares

Equity Options

$4.40

7.5 contracts

Futures

$4.06

2.8 contracts

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 57% of the futures commissions.

Other financial information for Interactive Brokers Group:

  • Mark to market on U.S. government securities portfolio4 was a loss of $12 million for the quarter, and a loss of $2 million year to date.

  • GLOBAL5: The value of the GLOBAL, reported in U.S. dollars, increased by 0.22% in June. Year to date, the value of the GLOBAL decreased 0.47%.

    The composition of the GLOBAL is based on the relative importance of the constituent currencies in the world economy and the Company’s business. As a result of a periodic assessment, the Company has determined to reduce the number of currencies in the GLOBAL and realign the relative weights of each component to better reflect the global diversification of its business going forward.

    The new composition contains 10 currencies, down from 14 in the prior composition. The Company currently transacts business and is required to manage balances in each of these 10 currencies. The new composition is in effect as of the close of business on June 30, 2020 and the conversion to the new targeted currency holdings is taking place over a short time period.

The table below displays the component changes in detail.

GLOBAL

NEW

CHANGE

6/30/2020

GLOBAL

GLOBAL in

% of

GLOBAL

GLOBAL in

% of

Change in

Currency

FX Rates

Composition

USD Equiv.

Comp.

Composition

USD Equiv.

Comp.

% of Comp.

USD

1.0000

0.680

0.680

70.7%

0.720

0.720

74.8%

4.2%

EUR

1.1233

0.090

0.101

10.5%

0.090

0.101

10.5%

0.0%

JPY

0.0093

4.410

0.041

4.2%

3.910

0.036

3.8%

-0.5%

GBP

1.2401

0.020

0.025

2.6%

0.020

0.025

2.6%

0.0%

HKD

0.1290

0.140

0.018

1.9%

0.035

0.005

0.5%

-1.4%

CAD

0.7366

0.020

0.015

1.5%

0.015

0.011

1.1%

-0.4%

CHF

1.0557

0.020

0.021

2.2%

0.020

0.021

2.2%

0.0%

INR

0.0132

1.100

0.015

1.5%

1.100

0.015

1.5%

0.0%

CNH

0.1414

0.100

0.014

1.5%

0.130

0.018

1.9%

0.4%

AUD

0.6903

0.020

0.014

1.4%

0.015

0.010

1.1%

-0.4%

MXN

0.0435

0.170

0.007

0.8%

0.000

0.000

0.0%

-0.8%

SEK

0.1073

0.050

0.005

0.6%

0.000

0.000

0.0%

-0.6%

NOK

0.1039

0.030

0.003

0.3%

0.000

0.000

0.0%

-0.3%

DKK

0.1507

0.020

0.003

0.3%

0.000

0.000

0.0%

-0.3%

Total GLOBALS, measured in USD

$ 0.962

100.0%

$ 0.962

100.0%

0.0%

In the interest of transparency, we quantify our IBKR PRO clients’ all-in cost of trade execution below.

For the full multimedia release with graph see link: https://www.interactivebrokers.com/MonthlyMetrics

  • In June, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 2.0 basis points of trade money6, as measured against a daily VWAP7 benchmark (1.4 basis points net cost for the rolling twelve months).

IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail

All amounts are in millions, except %

Previous

Jul '19

Aug '19

Sep '19

Oct '19

Nov '19

Dec '19

Jan '20

Feb '20

Mar '20

Apr '20

May '20

Jun '20

12 Months

#1a - Number of orders

Buys

2.81

3.19

2.58

2.82

2.61

2.56

3.53

4.36

8.15

7.22

6.19

7.15

53.17

Sells

2.46

2.74

2.25

2.45

2.26

2.18

2.84

3.43

6.37

5.64

4.82

5.57

43.01

Total

5.27

5.93

4.83

5.27

4.87

4.74

6.37

7.79

14.52

12.86

11.01

12.72

96.18

#1b - Number of shares purchased or sold

Shares bought

1,317

1,499

1,263

1,368

1,308

1,322

1,663

1,856

3,835

3,530

2,726

3,317

25,003

Shares sold

1,256

1,480

1,256

1,278

1,257

1,299

1,581

1,824

3,698

3,258

2,494

3,127

23,806

Total

2,573

2,979

2,519

2,646

2,565

2,620

3,244

3,679

7,533

6,787

5,220

6,443

48,809

#2 - Trade money including price, commissions and fees

2a Buy money

$55,152

$63,619

$50,931

$55,674

$47,905

$52,093

$71,487

$94,581

$146,660

$121,940

$99,270

$110,643

$969,954

2b Sell money

$53,681

$63,682

$50,469

$54,572

$47,117

$51,350

$69,685

$94,073

$149,232

$118,489

$95,206

$107,469

$955,024

2c Total

$108,832

$127,301

$101,400

$110,246

$95,022

$103,444

$141,171

$188,654

$295,892

$240,429

$194,475

$218,112

$1,924,978

#3 - Trade value at Daily VWAP

3a Buy value

$55,149

$63,601

$50,916

$55,686

$47,907

$52,084

$71,480

$94,552

$146,684

$121,907

$99,267

$110,602

$969,836

3b Sell value

$53,691

$63,687

$50,470

$54,585

$47,131

$51,373

$69,705

$94,117

$149,238

$118,459

$95,244

$107,472

$955,172

3c Total

$108,840

$127,288

$101,386

$110,271

$95,039

$103,457

$141,186

$188,669

$295,921

$240,366

$194,511

$218,075

$1,925,008

#4 - Total trade expense, including commissions and fees, relative to Daily VWAP

4a Buys (2a-3a)

$2.5

$17.9

$15.8

($12.5)

($2.1)

$9.0

$6.2

$28.2

($23.5)

$33.5

$2.6

$40.8

$118.3

4b Sells (3b-2b)

$10.0

$4.9

$1.6

$12.9

$14.5

$22.8

$20.7

$43.8

$5.2

($29.3)

$38.1

$3.0

$148.2

4c Total trade expense

$12.5

$22.8

$17.4

$0.4

$12.3

$31.8

$27.0

$72.0

($18.3)

$4.2

$40.7

$43.8

$266.5

Trade expense as percentage of trade money

4c/2c

0.011%

0.018%

0.017%

0.000%

0.013%

0.031%

0.019%

0.038%

-0.006%

0.002%

0.021%

0.020%

0.014%

#5 - Trade expense categories

5a Total commissions & fees

$11.5

$13.4

$11.1

$11.7

$11.1

$11.3

$14.3

$16.7

$31.9

$27.8

$22.7

$26.5

$210.0

5b Execution cost (4c-5a)

$1.0

$9.4

$6.3

($11.3)

$1.2

$20.4

$12.7

$55.3

($50.2)

($23.6)

$18.0

$17.2

$56.4

#6 - Trade expense categories as percentage of trade money

Total commissions & fees (5a/2c)

0.010%

0.011%

0.011%

0.010%

0.012%

0.011%

0.010%

0.009%

0.011%

0.012%

0.012%

0.012%

0.011%

Execution cost (5b/2c)

0.001%

0.007%

0.006%

-0.010%

0.001%

0.020%

0.009%

0.029%

-0.017%

-0.010%

0.009%

0.008%

0.003%

Net Expense to IB Clients

0.011%

0.018%

0.017%

0.000%

0.013%

0.031%

0.019%

0.038%

-0.006%

0.002%

0.021%

0.020%

0.014%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 1.4 basis points.

________________

Note 1: Daily Average Revenue Trades (DARTs) – customer orders divided by the number of trading days in the period.

Note 2: FDIC insured client bank deposit sweep program balances with participating banks. These deposits are not reported in the Company’s statement of financial condition.

Note 3: Commissionable Order – a customer order that generates commissions.

Note 4: Mark to market gains and losses on investments in U.S. government securities and associated hedges are included in Other Income. In the general course of business, we hold these investments to maturity. As a result, accumulated mark to market gains or losses should converge to zero at maturity. Accounting conventions require broker-dealers, unlike banks, to mark all investments to market.

Note 5: In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 14 major currencies (10 major currencies effective close of business June 30) in which we hold our equity. The total effect of the currency diversification strategy is reported in Comprehensive Income and the components are reported in (1) Other Income and (2) Other Comprehensive Income ("OCI") on the balance sheet. The effect of the GLOBAL on our comprehensive income can be estimated by multiplying the total equity for the period by the change in the U.S. dollar value of the GLOBAL during the same period.

Note 6: Trade money is the total amount of money clients spent or received, including all commissions and fees.

Note 7: Consistent with the clients’ trading activity, the computed VWAP benchmark includes extended trading hours.

_________________

More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.: Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 24, 2020, Best Online Broker Review.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200701005789/en/

Contacts

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, 203-618-4070 or Media: Kalen Holliday, 203-913-1369.