Interactive Brokers (IBKR) DARTs Fell 2% in Sept. 2016

October 3, 2016 12:21 PM EDT

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Interactive Brokers Group, Inc. (NASDAQ: IBKR) reported its Electronic Brokerage monthly performance metrics for September.

Highlights for the month included:

  • 651 thousand Daily Average Revenue Trades (DARTs), 2% lower than prior year and 13% higher than prior month.
  • Ending client equity of $82.7 billion, 33% higher than prior year and 3% higher than prior month.
  • Ending client margin loan balances of $18.1 billion, 15% higher than prior year and 11% higher than prior month.
  • Ending client credit balances of $42.0 billion, 20% higher than prior year and 1% higher than prior month.
  • 370 thousand client accounts, 15% higher than prior year and 1% higher than prior month.
  • 413 annualized average cleared DARTs per client account.
  • Average commission per cleared client order of $3.93 including exchange, clearing and regulatory fees. Key products:
September 2016 Average Commission per Average
Cleared Client Order Order Size
Stocks $2.16 1,829 shares
Equity Options $6.06 9 contracts
Futures $6.68 3.8 contracts

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

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

For the full multimedia release with graph see link:

https://www.interactivebrokers.com/MonthlyMetrics

  • In September, clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was 0.9 basis points of trade money1, as measured against a daily VWAP2 benchmark (0.4 basis point for the rolling twelve months).
Interactive Brokers Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except %
Previous
Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 12 Months
#1a - Number of orders
Buys 2.29 1.93 2.03 2.27 2.25 2.18 2.09 2.06 2.05 1.79 2.01 2.04 24.99
Sells 2.19 1.79 1.91 2.15 2.13 2.07 1.98 1.92 1.90 1.66 1.87 1.90 23.47
Total 4.48 3.72 3.94 4.42 4.38 4.25 4.07 3.98 3.95 3.45 3.88 3.94 48.46
#1b - Number of shares purchased or sold
Shares bought 1,252 1,144 1,276 1,434 1,422 1,405 1,257 1,254 1,344 1,088 1,234 1,254 15,364
Shares sold 1,227 1,089 1,240 1,465 1,420 1,385 1,256 1,229 1,307 1,071 1,201 1,223 15,113
Total 2,479 2,233 2,516 2,899 2,842 2,790 2,513 2,483 2,651 2,159 2,435 2,477 30,477
#2 - Trade money including price, commissions and fees
2a Buy money $57,085 $44,082 $48,552 $54,502 $48,708 $44,510 $41,354 $40,467 $45,068 $36,938 $39,945 $45,001 $546,212
2b Sell money $56,526 $43,093 $47,724 $55,194 $49,340 $43,623 $41,052 $40,435 $44,503 $36,371 $38,793 $43,886 $540,540
2c Total $113,611 $87,175 $96,276 $109,696 $98,048 $88,133 $82,406 $80,902 $89,571 $73,309 $78,738 $88,887 $1,086,752
#3 - Trade value at Daily VWAP
3a Buy value $57,064 $44,069 $48,533 $54,486 $48,703 $44,506 $41,357 $40,465 $45,068 $36,935 $39,942 $45,001 $546,129
3b Sell value $56,492 $43,085 $47,718 $55,180 $49,341 $43,624 $41,058 $40,436 $44,507 $36,371 $38,800 $43,893 $540,505
3c Total $113,556 $87,154 $96,251 $109,666 $98,044 $88,130 $82,415 $80,901 $89,575 $73,306 $78,742 $88,894 $1,086,634
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a) $21.3 $12.8 $19.1 $15.7 $4.8 $3.8 ($3.3) $1.5 ($0.3) $2.8 $2.7 $0.5 $81.4
4b Sells (3b-2b) ($33.6) ($8.0) ($6.3) ($13.9) $0.7 $1.5 $6.2 $0.7 $4.5 ($0.5) $6.9 $7.5 ($34.3)
4c Total trade expense ($12.3) $4.8 $12.8 $1.8 $5.5 $5.3 $2.9 $2.2 $4.2 $2.3 $9.6 $8.0 $47.1
Trade expense as percentage of trade money
4c/2c -0.011% 0.006% 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 0.003% 0.012% 0.009% 0.004%
#5 - Trade expense categories
5a Total commissions & fees $10.0 $9.0 $9.8 $11.5 $11.3 $11.1 $10.0 $9.9 $10.7 $8.9 $9.8 $9.9 $121.9
5b Execution cost (4c-5a) ($22.3) ($4.2) $3.0 ($9.7) ($5.8) ($5.8) ($7.1) ($7.7) ($6.5) ($6.6) ($0.2) ($1.9) ($74.8)
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c) 0.009% 0.011% 0.010% 0.011% 0.012% 0.013% 0.013% 0.013% 0.012% 0.012% 0.012% 0.011% 0.011%
Execution cost (5b/2c) -0.020% -0.005% 0.003% -0.009% -0.006% -0.007% -0.009% -0.010% -0.007% -0.009% 0.000% -0.002% -0.007%
Net Expense to IB Clients -0.011% 0.006% 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 0.003% 0.012% 0.009% 0.004%

The above illustrates that the rolling twelve months’ average all-in cost of a client U.S. Reg.-NMS stock trade was 0.4 basis point.

_________________
Note 1: Trade money is the total amount of money clients spent or received, including all commissions and fees.
Note 2: 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.



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