Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for August 2022, includes Reg.-NMS Execution Statistics

Rhea-AI Summary

Interactive Brokers Group reported August metrics indicating a decline in Daily Average Revenue Trades (DARTs), with 1.968 million trades, down 9% year-over-year but up 8% from the prior month. Client equity reached $310.1 billion, a 15% decrease from the previous year. Conversely, ending client credit balances improved by 13% year-over-year to $95.9 billion. The firm also noted a 33% increase in client accounts, totaling 1.99 million. Average commissions per cleared order stood at $2.87.

Positive

• Client accounts increased by 33% year-over-year, reaching 1.99 million.
• Ending client credit balances rose by 13% year-over-year to $95.9 billion.

Negative

• Daily Average Revenue Trades (DARTs) fell by 9% year-over-year to 1.968 million.
• Client equity declined by 15% year-over-year, totaling $310.1 billion.
• Ending client margin loan balances decreased by 13% year-over-year to $43.1 billion.

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for August.

Brokerage highlights for the month included:

• 1.968 million Daily Average Revenue Trades (DARTs)¹, 9% lower than prior year and 8% higher than prior month.
• Ending client equity of $310.1 billion, 15% lower than prior year and 1% lower than prior month.
• Ending client margin loan balances of $43.1 billion, 13% lower than prior year and 2% higher than prior month.
• Ending client credit balances of $95.9 billion, including $2.1 billion in insured bank deposit sweeps², 13% higher than prior year and 2% higher than prior month.
• 1.99 million client accounts, 33% higher than prior year and 2% higher than prior month.
• 222 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.87 including exchange, clearing and regulatory fees. Key products:

August 2022	Average Commission per		Average
	Cleared Commissionable Order		Order Size
Stocks	$1.98		1,161 shares
Equity Options	$4.23		6.8 contracts
Futures	$3.81		3.0 contracts

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:

• GLOBAL⁴: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.56% in August.

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 $18,785 in August (dividing 2c by 1a in table below)
• In August, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 2.0 basis points of trade money⁵, as measured against a daily VWAP⁶ benchmark (3.0 basis points net cost for the rolling twelve months).

IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except %
													Previous
	Sep '21	Oct '21	Nov '21	Dec '21	Jan '22	Feb '22	Mar '22	Apr '22	May '22	Jun '22	Jul '22	Aug '22	12 Months
#1a - Number of orders
Buys	9.55	9.52	11.57	9.36	9.96	8.74	9.84	8.10	8.30	6.78	5.66	7.28	104.66
Sells	6.99	7.08	8.52	6.71	7.14	6.22	7.24	5.47	5.96	5.20	4.43	5.72	76.68
Total	16.54	16.60	20.09	16.07	17.10	14.96	17.08	13.57	14.26	11.98	10.09	13.00	181.34
#1b - Number of shares purchased or sold
Shares bought	3,412	3,595	3,764	3,169	3,012	2,699	4,104	2,855	3,097	2,983	2,554	3,123	38,367
Shares sold	3,300	3,390	3,667	3,074	2,994	2,653	4,044	2,738	3,055	2,884	2,447	3,031	37,277
Total	6,713	6,984	7,432	6,243	6,006	5,353	8,147	5,592	6,152	5,867	5,001	6,154	75,645
#2 - Trade money including price, commissions and fees
2a Buy money	$125,954	$133,647	$160,251	$141,591	$155,559	$145,013	$159,411	$130,359	$142,460	$123,938	$107,963	$121,655	$1,647,799
2b Sell money	$124,808	$128,438	$158,604	$140,613	$157,885	$143,868	$159,805	$129,809	$144,641	$125,425	$106,681	$122,556	$1,643,133
2c Total	$250,762	$262,085	$318,855	$282,204	$313,444	$288,881	$319,215	$260,168	$287,101	$249,362	$214,644	$244,211	$3,290,932
#3 - Trade value at Daily VWAP
3a Buy value	$125,905	$133,631	$160,132	$141,498	$155,495	$144,989	$159,394	$130,287	$142,417	$123,875	$107,993	$121,639	$1,647,255
3b Sell value	$124,841	$128,515	$158,616	$140,656	$157,966	$143,913	$159,861	$129,793	$144,686	$125,409	$106,747	$122,590	$1,643,592
3c Total	$250,746	$262,146	$318,747	$282,153	$313,461	$288,902	$319,255	$260,080	$287,103	$249,284	$214,740	$244,229	$3,290,847
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	$48.4	$15.8	$119.9	$93.8	$63.9	$23.7	$16.4	$71.5	$42.8	$62.8	($30.1)	$15.6	$544.3
4b Sells (3b-2b)	$32.4	$76.9	$11.9	$43.0	$81.1	$44.8	$56.3	($16.3)	$44.9	($15.7)	$66.0	$33.5	$458.8
4c Total trade expense	$80.8	$92.7	$131.8	$136.7	$145.0	$68.5	$72.7	$55.2	$87.7	$47.1	$35.9	$49.1	$1,003.1
Trade expense as percentage of trade money
4c/2c	0.032%	0.035%	0.041%	0.048%	0.046%	0.024%	0.023%	0.021%	0.031%	0.019%	0.017%	0.020%	0.030%
#5 - Trade expense categories
5a Total commissions & fees	$27.1	$27.8	$31.4	$26.0	$26.6	$24.2	$32.9	$24.0	$28.2	$27.3	$23.2	$28.7	$327.4
5b Execution cost (4c-5a)	$53.7	$64.9	$100.5	$110.8	$118.3	$44.3	$39.8	$31.2	$59.4	$19.8	$12.7	$20.4	$675.8
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)	0.011%	0.010%	0.009%	0.009%	0.008%	0.008%	0.010%	0.009%	0.010%	0.011%	0.011%	0.012%	0.010%
Execution cost (5b/2c)	0.021%	0.025%	0.032%	0.039%	0.038%	0.016%	0.013%	0.012%	0.021%	0.008%	0.006%	0.008%	0.020%
Net Expense to IB Clients	0.032%	0.035%	0.041%	0.048%	0.046%	0.024%	0.023%	0.021%	0.031%	0.019%	0.017%	0.020%	0.030%

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.

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: 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 5: Trade money is the total amount of money clients spent or received, including all commissions and fees.

Note 6: 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 affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single integrated platform to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. For the fifth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its March 25, 2022, Best Online Brokers Review.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005701/en/

Interactive Brokers Group, Inc.: Rob Garfield - media@ibkr.com.

Source: Interactive Brokers Group, Inc.

FAQ

What were Interactive Brokers' DARTs for August?

Interactive Brokers reported 1.968 million Daily Average Revenue Trades (DARTs) for August, which represents a 9% decline year-over-year.

How much client equity did Interactive Brokers have in August?

As of August, Interactive Brokers reported ending client equity of $310.1 billion, a 15% decrease compared to the same period last year.

What was the increase in client accounts for Interactive Brokers in August?

Interactive Brokers saw a 33% increase in client accounts, bringing the total to 1.99 million as of August.

What was the average commission per cleared order at Interactive Brokers?

The average commission per cleared Commissionable Order at Interactive Brokers was $2.87 in August.

How did ending client margin loan balances change for Interactive Brokers in August?

Ending client margin loan balances at Interactive Brokers decreased by 13% year-over-year, totaling $43.1 billion in August.