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

Rhea-AI Summary

Interactive Brokers Group (Nasdaq: IBKR) reported its July performance metrics, revealing a decline in Daily Average Revenue Trades (DARTs) to 1.823 million, down 23% year-over-year and 10% month-over-month. Client equity stood at $314.4 billion, 10% lower than the prior year but up 7% from the previous month. Margin loan balances decreased by 12% year-over-year to $42.2 billion. In contrast, client credit balances rose 15% year-over-year to $94.3 billion. The firm also reported 1.95 million client accounts, a 34% increase from last year.

Positive

• Client credit balances increased by 15% year-over-year to $94.3 billion, reflecting strong customer engagement.
• Client accounts grew to 1.95 million, a significant 34% increase from the previous year, indicating market expansion.

Negative

• DARTs decreased 23% year-over-year and 10% month-over-month, signaling a decline in trading activity.
• Client equity decreased by 10% year-over-year to $314.4 billion, indicating potential challenges in attracting new funds.
• Margin loan balances were down by 12% year-over-year, reflecting reduced borrowing activity among clients.

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

Brokerage highlights for the month included:

• 1.823 million Daily Average Revenue Trades (DARTs)¹, 23% lower than prior year and 10% lower than prior month.
• Ending client equity of $314.4 billion, 10% lower than prior year and 7% higher than prior month.
• Ending client margin loan balances of $42.2 billion, 12% lower than prior year and 1% lower than prior month.
• Ending client credit balances of $94.3 billion, including $2.1 billion in insured bank deposit sweeps², 15% higher than prior year and 2% higher than prior month.
• 1.95 million client accounts, 34% higher than prior year and 1% higher than prior month.
• 210 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.97 including exchange, clearing and regulatory fees. Key products:

July 2022

Average Commission per

Average

Cleared Commissionable Order

Order Size

Stocks

$2.14

1,389 shares

Equity Options

$4.13

6.6 contracts

Futures

$3.65

2.8 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 0.19% in July.

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

• In July, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 1.7 basis points of trade money⁵, as measured against a daily VWAP⁶ benchmark (3.1 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
		Aug '21		Sep '21		Oct '21		Nov '21		Dec '21		Jan '22		Feb '22		Mar '22		Apr '22		May '22		Jun '22		Jul '22		12 Months
#1a - Number of orders
Buys		9.98		9.55		9.52		11.57		9.36		9.96		8.74		9.84		8.10		8.30		6.78		5.66		107.36
Sells		7.61		6.99		7.08		8.52		6.71		7.14		6.22		7.24		5.47		5.96		5.20		4.43		78.57
Total		17.59		16.54		16.60		20.09		16.07		17.10		14.96		17.08		13.57		14.26		11.98		10.09		185.93
#1b - Number of shares purchased or sold
Shares bought		3,263		3,412		3,595		3,764		3,169		3,012		2,699		4,104		2,855		3,097		2,983		2,554		38,507
Shares sold		3,202		3,300		3,390		3,667		3,074		2,994		2,653		4,044		2,738		3,055		2,884		2,447		37,449
Total		6,465		6,713		6,984		7,432		6,243		6,006		5,353		8,147		5,592		6,152		5,867		5,001		75,956
#2 - Trade money including price, commissions and fees
2a Buy money		$127,454		$125,954		$133,647		$160,251		$141,591		$155,559		$145,013		$159,411		$130,359		$142,460		$123,938		$107,963		$1,653,599
2b Sell money		$125,694		$124,808		$128,438		$158,604		$140,613		$157,885		$143,868		$159,805		$129,809		$144,641		$125,425		$106,681		$1,646,271
2c Total		$253,148		$250,762		$262,085		$318,855		$282,204		$313,444		$288,881		$319,215		$260,168		$287,101		$249,362		$214,644		$3,299,870
#3 - Trade value at Daily VWAP
3a Buy value		$127,439		$125,905		$133,631		$160,132		$141,498		$155,495		$144,989		$159,394		$130,287		$142,417		$123,875		$107,993		$1,653,055
3b Sell value		$125,747		$124,841		$128,515		$158,616		$140,656		$157,966		$143,913		$159,861		$129,793		$144,686		$125,409		$106,747		$1,646,749
3c Total		$253,186		$250,746		$262,146		$318,747		$282,153		$313,461		$288,902		$319,255		$260,080		$287,103		$249,284		$214,740		$3,299,804
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)		$15.1		$48.4		$15.8		$119.9		$93.8		$63.9		$23.7		$16.4		$71.5		$42.8		$62.8		($30.1)		$543.8
4b Sells (3b-2b)		$52.8		$32.4		$76.9		$11.9		$43.0		$81.1		$44.8		$56.3		($16.3)		$44.9		($15.7)		$66.0		$478.1
4c Total trade expense		$67.9		$80.8		$92.7		$131.8		$136.7		$145.0		$68.5		$72.7		$55.2		$87.7		$47.1		$35.9		$1,021.9
Trade expense as percentage of trade money
4c/2c		0.027%		0.032%		0.035%		0.041%		0.048%		0.046%		0.024%		0.023%		0.021%		0.031%		0.019%		0.017%		0.031%
#5 - Trade expense categories
5a Total commissions & fees		$26.1		$27.1		$27.8		$31.4		$26.0		$26.6		$24.2		$32.9		$24.0		$28.2		$27.3		$23.2		$324.8
5b Execution cost (4c-5a)		$41.8		$53.7		$64.9		$100.5		$110.8		$118.3		$44.3		$39.8		$31.2		$59.4		$19.8		$12.7		$697.2
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)		0.010%		0.011%		0.010%		0.009%		0.009%		0.008%		0.008%		0.010%		0.009%		0.010%		0.011%		0.011%		0.010%
Execution cost (5b/2c)		0.017%		0.021%		0.025%		0.032%		0.039%		0.038%		0.016%		0.013%		0.012%		0.021%		0.008%		0.006%		0.021%
Net Expense to IB Clients		0.027%		0.032%		0.035%		0.041%		0.048%		0.046%		0.024%		0.023%		0.021%		0.031%		0.019%		0.017%		0.031%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.1 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/20220801005635/en/

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

Source: Interactive Brokers Group, Inc.

FAQ

What were the July DARTs for Interactive Brokers (IBKR)?

In July, Interactive Brokers reported Daily Average Revenue Trades (DARTs) of 1.823 million, a 23% decrease year-over-year.

How did the client equity change in July for IBKR?

Client equity for Interactive Brokers in July was $314.4 billion, which is 10% lower than the previous year but up 7% from the prior month.

What is the current number of client accounts at Interactive Brokers (IBKR)?

Interactive Brokers reported 1.95 million client accounts in July, representing a 34% increase from the prior year.

How much did client margin loan balances decline for IBKR in July?

Client margin loan balances decreased by 12% year-over-year to $42.2 billion for Interactive Brokers.

What is the status of client credit balances for IBKR as of July?

As of July, client credit balances at Interactive Brokers increased by 15% year-over-year to $94.3 billion.