Interactive Brokers (IBKR) September DARTs Decline 13%

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

Brokerage highlights for the month included:

• 1.961 million Daily Average Revenue Trades (DARTs)1, 13% lower than prior year and about even with prior month.
• Ending client equity of $287.1 billion, 19% lower than prior year and 7% lower than prior month.
• Ending client margin loan balances of $40.5 billion, 19% lower than prior year and 6% lower than prior month.
• Ending client credit balances of $94.7 billion, including $2.3 billion in insured bank deposit sweeps2, 10% higher than prior year and 1% lower than prior month.
• 2.01 million client accounts, 31% higher than prior year and 1% higher than prior month.
• 221 annualized average cleared DARTs1 per client account.
• Average commission per cleared Commissionable Order3 of $3.05 including exchange, clearing and regulatory fees. Key products:

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 $7.6 million for the quarter ended September 30th.
• GLOBAL5: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.71% in September and decreased by 1.46% for the quarter ended September 30th.

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

• Average U.S. Reg-NMS stock trade was $20,635 in September (dividing 2c by 1a in table below)
• In September, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 2.3 basis points of trade money6, as measured against a daily VWAP7 benchmark (3.0 basis points net cost for the rolling twelve months).

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.0 basis points.

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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 10 major currencies 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.

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