Interactive Brokers (IBKR) Reports 14% Increase in DARTs for Nov. 2016

December 1, 2016 12:21 PM EST

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

Highlights for the month included:

  • 728 thousand Daily Average Revenue Trades (DARTs), 14% higher than prior year and 21% higher than prior month.
  • Ending client equity of $84.7 billion, 26% higher than prior year and 3% higher than prior month.
  • Ending client margin loan balances of $18.0 billion, 9% higher than prior year and 3% higher than prior month.
  • Ending client credit balances of $42.1 billion, 13% higher than prior year and 1% higher than prior month.
  • 380 thousand client accounts, 15% higher than prior year and 1% higher than prior month.
  • 449 annualized average cleared DARTs per client account.
  • Average commission per cleared client order of $4.06 including exchange, clearing and regulatory fees. Key products:
November 2016 Average Commission per Average
Cleared Client Order Order Size
Stocks $2.25 1,958 shares
Equity Options $6.22 9.2 contracts
Futures $6.72 3.9 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 November, clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was 0.3 basis point of trade money1, as measured against a daily VWAP2 benchmark (0.6 basis point for the rolling twelve months).
Interactive Brokers Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except %
Previous
Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 12 Months
#1a - Number of orders
Buys 2.03 2.27 2.25 2.18 2.09 2.06 2.05 1.79 2.01 2.04 1.95 2.29 25.01
Sells 1.91 2.15 2.13 2.07 1.98 1.92 1.90 1.66 1.87 1.90 1.79 2.13 23.41
Total 3.94 4.42 4.38 4.25 4.07 3.98 3.95 3.45 3.88 3.94 3.74 4.42 48.42
#1b - Number of shares purchased or sold
Shares bought 1,276 1,434 1,422 1,405 1,257 1,254 1,344 1,088 1,234 1,254 1,156 1,415 15,539
Shares sold 1,240 1,465 1,420 1,385 1,256 1,229 1,307 1,071 1,201 1,223 1,126 1,391 15,314
Total 2,516 2,899 2,842 2,790 2,513 2,483 2,651 2,159 2,435 2,477 2,282 2,806 30,853
#2 - Trade money including price, commissions and fees
2a Buy money $48,552 $54,502 $48,708 $44,510 $41,354 $40,467 $45,068 $36,938 $39,945 $45,001 $39,957 $46,215 $531,217
2b Sell money $47,724 $55,194 $49,340 $43,623 $41,052 $40,435 $44,503 $36,371 $38,793 $43,886 $38,564 $45,536 $525,021
2c Total $96,276 $109,696 $98,048 $88,133 $82,406 $80,902 $89,571 $73,309 $78,738 $88,887 $78,521 $91,751 $1,056,238
#3 - Trade value at Daily VWAP
3a Buy value $48,533 $54,486 $48,703 $44,506 $41,357 $40,465 $45,068 $36,935 $39,942 $45,001 $39,951 $46,220 $531,167
3b Sell value $47,718 $55,180 $49,341 $43,624 $41,058 $40,436 $44,507 $36,371 $38,800 $43,893 $38,561 $45,543 $525,032
3c Total $96,251 $109,666 $98,044 $88,130 $82,415 $80,901 $89,575 $73,306 $78,742 $88,894 $78,512 $91,763 $1,056,199
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a) $19.1 $15.7 $4.8 $3.8 ($3.3) $1.5 ($0.3) $2.8 $2.7 $0.5 $6.6 ($4.4) $49.5
4b Sells (3b-2b) ($6.3) ($13.9) $0.7 $1.5 $6.2 $0.7 $4.5 ($0.5) $6.9 $7.5 ($3.0) $6.7 $11.0
4c Total trade expense $12.8 $1.8 $5.5 $5.3 $2.9 $2.2 $4.2 $2.3 $9.6 $8.0 $3.6 $2.3 $60.5
Trade expense as percentage of trade money
4c/2c 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 0.003% 0.012% 0.009% 0.005% 0.003% 0.006%
#5 - Trade expense categories
5a Total commissions & fees $9.8 $11.5 $11.3 $11.1 $10.0 $9.9 $10.7 $8.9 $9.8 $9.9 $9.1 $11.0 $123.0
5b Execution cost (4c-5a) $3.0 ($9.7) ($5.8) ($5.8) ($7.1) ($7.7) ($6.5) ($6.6) ($0.2) ($1.9) ($5.5) ($8.7) ($62.5)
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c) 0.010% 0.011% 0.012% 0.013% 0.013% 0.013% 0.012% 0.012% 0.012% 0.011% 0.012% 0.012% 0.012%
Execution cost (5b/2c) 0.003% -0.009% -0.006% -0.007% -0.009% -0.010% -0.007% -0.009% 0.000% -0.002% -0.007% -0.009% -0.006%
Net Expense to IB Clients 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 0.003% 0.012% 0.009% 0.005% 0.003% 0.006%

The above illustrates that the rolling twelve months’ average all-in cost of a client U.S. Reg.-NMS stock trade was 0.6 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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