67 WALL STREET, New York - March 28, 2014 - The Wall Street Transcript has just published its Investment Banks and Asset Management Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investing in Financial Services - Regulatory Outlook Gains Clarity - Asset Growth - Capital Flow Into Equities - Active Management - Alternative Asset Management
Companies include: Interactive Brokers Group, Inc (IBKR) and many more.
In the following excerpt from the Investment Banks and Asset Management Report, the Chairman and CEO of Interactive Brokers Group, Inc. (IBKR) discusses company strategy and the outlook for this vital industry:
TWST: What kinds of technological innovations and new tools have you launched since we last spoke in 2012, and are there some that you currently have in development?
Mr. Peterffy: We introduce new innovations every quarter. In the last quarter of 2013, we focused on option traders and introduced three analytical tools: the Probability Lab, Volatility Lab and Option Strategy Lab. Each of these helps traders to visualize and understand option theory, and to analyze various combinations of potential trades and their consequences. Having been in the option business for the past 40 years, I can safely say that these are currently the best option tools available anywhere in the industry, and they are free to our customers.
As far as new technology in development, we are in the process of releasing our Mutual Fund Replicator. Millions of people own mutual funds, and tens of thousands of financial advisers carry them in their clients' accounts. Few of them are focusing on the fact that these mutual funds often charge management fees equal to 1% to 2% of the value of the fund.
If you put the name or symbol of your mutual fund into our Replicator engine, we will find an ETF or a combination of two ETFs that have a very high correlation of returns with your mutual fund. If you sell the mutual fund and buy the ETF, you can improve your returns by 1% or more depending on fund management fees. In addition while you can buy or sell mutual funds only at the end of the day, you can trade ETFs any time the exchange is open, and you can borrow money against your ETF holdings at a rate as low as 1% at Interactive Brokers.
TWST: You recently launched the next phase of your global marketplace, can you tell us a bit about that?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.