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Interactive Brokers Group Reports Brokerage Metrics for June 2016 and New “GLOBAL” Composition

July 1, 2016 12:37 PM EDT

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group, Inc. (NASDAQ GS: IBKR), an automated global electronic broker and market maker, today reported its Electronic Brokerage monthly performance metrics for June, and changes in the composition of its currency exposure management unit.

Highlights for the month included:

  • 643 thousand Daily Average Revenue Trades (DARTs), 7% higher than prior year and even with prior month.
  • Ending client equity of $73.7 billion, 12% higher than prior year and 2% higher than prior month.
  • Ending client margin loan balances of $15.0 billion, 21% lower than prior year and 1% lower than prior month.
  • Ending client credit balances of $38.7 billion, 16% higher than prior year and 1% lower than prior month.
  • 357 thousand client accounts, 15% higher than prior year and 1% higher than prior month.
  • 419 annualized average cleared DARTs per client account.
  • Average commission per cleared client order of $4.11 including exchange, clearing and regulatory fees. Key products:
June 2016       Average Commission per     Average
Cleared Client Order Order Size
Stocks $2.27 1,667 shares
Equity Options $6.19 8.6 contracts
Futures $6.67 3.8 contracts
 

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

Changes in the composition of the “GLOBAL” currency exposure management unit

The Company actively manages its global currency exposure by maintaining its equity in proportion to a defined basket of currencies, which it refers to as the "GLOBAL". Approximately half of the firm’s equity is denominated in currencies other than the U.S. dollar. The composition of the GLOBAL is based on the relative importance of the constituent currencies in the Company’s business and the world economy. As a result of a periodic assessment, and in light of the increasing importance of China to our company’s business, the Company has determined to add the Chinese renminbi (CNH), remove the South Korean won (KRW) and Brazilian real (BRL) components, and realign the relative weights of the U.S. dollar (USD) and Japanese yen (JPY) components to better reflect the global diversification of its businesses.

The new composition contains 15 currencies, one fewer than the prior composition. The Company currently transacts business and is required to manage balances in each of these 15 currencies. The new composition is effective as of the close of business on June 30, 2016 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
  6/30/2016 GLOBAL GLOBAL in % of GLOBAL   GLOBAL in   % of % of
Currency FX Rates Composition USD Equiv. Comp. Composition USD Equiv. Comp. Comp.
USD 1.0000 0.41 0.410 41.9% 0.45 0.450 45.9% 4.1%
EUR 1.1107 0.17 0.189 19.3% 0.17 0.189 19.3% 0.0%
JPY 0.0097 10.00 0.097 9.9% 8.00 0.078 7.9% -2.0%
GBP 1.3312 0.03 0.040 4.1% 0.03 0.040 4.1% 0.0%
HKD 0.1289 0.26 0.034 3.4% 0.26 0.034 3.4% 0.0%
CAD 0.7738 0.04 0.031 3.2% 0.04 0.031 3.2% 0.0%
CHF 1.0242 0.03 0.031 3.1% 0.03 0.031 3.1% 0.0%
INR 0.0148 2.00 0.030 3.0% 2.00 0.030 3.0% 0.0%
CNH 0.1499 0.00 0.000 0.0% 0.19 0.028 2.9% 2.9%
AUD 0.7451 0.03 0.022 2.3% 0.03 0.022 2.3% 0.0%
MXN 0.0547 0.30 0.016 1.7% 0.30 0.016 1.7% 0.0%
SEK 0.1182 0.09 0.011 1.1% 0.09 0.011 1.1% 0.0%
SGD 0.7423 0.01 0.007 0.8% 0.01 0.007 0.8% 0.0%
NOK 0.1196 0.06 0.007 0.7% 0.06 0.007 0.7% 0.0%
DKK 0.1493 0.04 0.006 0.6% 0.04 0.006 0.6% 0.0%
BRL 0.3112 0.08 0.025 2.5% 0.00 0.000 0.0% -2.5%
KRW 0.0009 28.00 0.024   2.5% 0.00 0.000   0.0%   -2.5%
Total GLOBALS, measured in USD   $ 0.980   100.0%       $ 0.980   100.0%   0.0%
 

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 June, clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was 0.5 basis points 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
Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 12 Months
#1a - Number of orders
Buys 2.20 2.31 2.08 2.29 1.93 2.03 2.27 2.25 2.18 2.09 2.06 2.05 25.74
Sells 2.10   2.27   1.97   2.19   1.79   1.91   2.15   2.13   2.07   1.98   1.92   1.90   24.38
Total 4.30 4.58 4.05 4.48 3.72 3.94 4.42 4.38 4.25 4.07 3.98 3.95 50.12
 
#1b - Number of shares purchased or sold
Shares bought 1,303 1,432 1,190 1,252 1,144 1,276 1,434 1,422 1,405 1,257 1,254 1,344 15,713
Shares sold 1,281   1,484   1,191   1,227   1,089   1,240   1,465   1,420   1,385   1,256   1,229   1,307   15,574
Total 2,584 2,916 2,381 2,479 2,233 2,516 2,899 2,842 2,790 2,513 2,483 2,651 31,287
 
#2 - Trade money including price, commissions and fees
2a Buy money $58,413 $63,316 $54,503 $57,085 $44,082 $48,552 $54,502 $48,708 $44,510 $41,354 $40,467 $45,068 $600,560
2b Sell money $58,319   $65,756   $53,890   $56,526   $43,093   $47,724   $55,194   $49,340   $43,623   $41,052   $40,435   $44,503   $599,455
2c Total $116,732 $129,072 $108,393 $113,611 $87,175 $96,276 $109,696 $98,048 $88,133 $82,406 $80,902 $89,571 $1,200,015
 
#3 - Trade value at Daily VWAP
3a Buy value $58,382 $63,303 $54,477 $57,064 $44,069 $48,533 $54,486 $48,703 $44,506 $41,357 $40,465 $45,068 $600,413
3b Sell value $58,301   $65,767   $53,875   $56,492   $43,085   $47,718   $55,180   $49,341   $43,624   $41,058   $40,436   $44,507   $599,384
3c Total $116,683 $129,070 $108,352 $113,556 $87,154 $96,251 $109,666 $98,044 $88,130 $82,415 $80,901 $89,575 $1,199,797
 
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a) $30.8 $12.8 $25.5 $21.3 $12.8 $19.1 $15.7 $4.8 $3.8 ($3.3) $1.5 ($0.3) $144.5
4b Sells (3b-2b) ($17.6)   $11.0   ($15.2)   ($33.6)   ($8.0)   ($6.3)   ($13.9)   $0.7   $1.5   $6.2   $0.7   $4.5   ($70.0)
4c Total trade expense $13.2 $23.8 $10.3 ($12.3) $4.8 $12.8 $1.8 $5.5 $5.3 $2.9 $2.2 $4.2 $74.5
 
Trade expense as percentage of trade money
4c/2c 0.011% 0.018% 0.010% -0.011% 0.006% 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 0.006%
 
#5 - Trade expense categories
5a Total commissions & fees $10.5 $11.7 $9.6 $10.0 $9.0 $9.8 $11.5 $11.3 $11.1 $10.0 $9.9 $10.7 $125.1
5b Execution cost (4c-5a) $2.7 $12.1 $0.7 ($22.3) ($4.2) $3.0 ($9.7) ($5.8) ($5.8) ($7.1) ($7.7) ($6.5) ($50.6)
 
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c) 0.009% 0.009% 0.009% 0.009% 0.011% 0.010% 0.011% 0.012% 0.013% 0.013% 0.013% 0.012% 0.010%
Execution cost (5b/2c) 0.002% 0.009% 0.001% -0.020% -0.005% 0.003% -0.009% -0.006% -0.007% -0.009% -0.010% -0.007% -0.004%
Net Expense to IB Clients 0.011% 0.018% 0.010% -0.011% 0.006% 0.013% 0.002% 0.006% 0.006% 0.004% 0.003% 0.005% 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.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc., together with its subsidiaries, is an automated global electronic broker that specializes in catering to financial professionals by offering state-of-the-art trading technology, superior execution capabilities, worldwide electronic access, and sophisticated risk management tools at exceptionally low costs. The brokerage trading platform utilizes the same innovative technology as the Company’s market making business, which executes and processes trades in securities, futures and foreign exchange instruments on more than 100 electronic exchanges and trading venues around the world. As a market maker, we provide liquidity at these marketplaces and, as a broker, we provide professional traders and investors with electronic access to stocks, options, futures, forex, bonds and mutual funds from a single IB Universal AccountSM. Employing proprietary software on a global communications network, Interactive Brokers Group continuously integrates its software with a growing number of exchanges and trading venues into one automatically functioning, computerized platform that requires minimal human intervention.

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.

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

Source: Interactive Brokers Group, Inc.



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