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

Rhea-AI Summary

Interactive Brokers Group (Nasdaq: IBKR) reported its January 2022 performance metrics, revealing 2.621 million Daily Average Revenue Trades (DARTs), a 20% decline from the previous year but an 18% increase from December. Client equity stood at $352.5 billion, a 12% increase year-over-year yet 6% lower month-over-month. Client margin loan balances rose 23% year-over-year to $50.1 billion, while client credit balances increased 8% to $89.3 billion. The firm now has 1.73 million client accounts, up 45% year-over-year.

Positive

• Client equity increased by 12% year-over-year to $352.5 billion.
• Client margin loan balances rose by 23% year-over-year to $50.1 billion.
• Credit balances increased by 8% year-over-year to $89.3 billion.
• Total client accounts reached 1.73 million, up 45% from the previous year.

Negative

• Daily Average Revenue Trades (DARTs) decreased by 20% compared to the prior year.
• Ending client equity declined by 6% compared to the previous month.
• Ending client margin loan balances fell by 8% month-over-month.
• Average commission per cleared order was $2.47, which may indicate pricing pressure.

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

Brokerage highlights for the month included:

• 2.621 million Daily Average Revenue Trades (DARTs)¹, 20% lower than prior year and 18% higher than prior month.
• Ending client equity of $352.5 billion, 12% higher than prior year and 6% lower than prior month.
• Ending client margin loan balances of $50.1 billion, 23% higher than prior year and 8% lower than prior month.
• Ending client credit balances of $89.3 billion, including $2.3 billion in insured bank deposit sweeps², 8% higher than prior year and 3% higher than prior month.
• 1.73 million client accounts, 45% higher than prior year and 3% higher than prior month.
• 344 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.47 including exchange, clearing and regulatory fees. Key products:

January 2022

Average Commission per

Average

Cleared Commissionable Order

Order Size

Stocks

$1.70

1,191 shares

Equity Options

$3.41

6.2 contracts

Futures

$3.84

2.9 contracts

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 55% of the futures commissions.

Other financial information for Interactive Brokers Group:

• GLOBAL⁴: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.22% in January.

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 January, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 4.6 basis points of trade money⁵, as measured against a daily VWAP⁶ benchmark (3.9 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
	Feb '21	Mar '21	Apr '21	May '21	Jun '21	July '21	Aug '21	Sep '21	Oct '21	Nov '21	Dec '21	Jan '22	12 Months
#1a - Number of orders
Buys	18.42	16.82	10.52	10.04	12.60	10.98	9.98	9.55	9.52	11.57	9.36	9.96	139.32
Sells	13.19	12.34	7.67	7.50	10.00	8.10	7.61	6.99	7.08	8.52	6.71	7.14	102.85
Total	31.61	29.16	18.19	17.54	22.60	19.08	17.59	16.54	16.60	20.09	16.07	17.10	242.17
#1b - Number of shares purchased or sold
Shares bought	6,417	5,327	3,267	3,325	4,261	3,785	3,263	3,412	3,595	3,764	3,169	3,012	46,599
Shares sold	6,052	5,163	3,072	3,265	4,157	3,608	3,202	3,300	3,390	3,667	3,074	2,994	44,944
Total	12,469	10,491	6,339	6,590	8,418	7,393	6,465	6,713	6,984	7,432	6,243	6,006	91,543
#2 - Trade money including price, commissions and fees
2a Buy money	$171,280	$189,334	$129,198	$128,083	$140,218	$135,106	$127,454	$125,954	$133,647	$160,251	$141,591	$155,559	$1,737,673
2b Sell money	$167,064	$185,529	$124,045	$125,904	$139,592	$133,527	$125,694	$124,808	$128,438	$158,604	$140,613	$157,885	$1,711,705
2c Total	$338,344	$374,863	$253,243	$253,987	$279,810	$268,633	$253,148	$250,762	$262,085	$318,855	$282,204	$313,444	$3,449,378
#3 - Trade value at Daily VWAP
3a Buy value	$171,092	$189,194	$129,131	$128,053	$140,148	$135,050	$127,439	$125,905	$133,631	$160,132	$141,498	$155,495	$1,736,767
3b Sell value	$167,032	$185,588	$124,030	$125,969	$139,648	$133,552	$125,747	$124,841	$128,515	$158,616	$140,656	$157,966	$1,712,158
3c Total	$338,124	$374,782	$253,160	$254,022	$279,795	$268,602	$253,186	$250,746	$262,146	$318,747	$282,153	$313,461	$3,448,925
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	$187.9	$139.3	$67.1	$29.2	$69.9	$56.2	$15.1	$48.4	$15.8	$119.9	$93.8	$63.9	$906.4
4b Sells (3b-2b)	($32.5)	$58.6	($15.9)	$64.1	$55.7	$25.0	$52.8	$32.4	$76.9	$11.9	$43.0	$81.1	$453.1
4c Total trade expense	$155.5	$197.8	$51.2	$93.3	$125.6	$81.2	$67.9	$80.8	$92.7	$131.8	$136.7	$145.0	$1,359.5
Trade expense as percentage of trade money
4c/2c	0.046%	0.053%	0.020%	0.037%	0.045%	0.030%	0.027%	0.032%	0.035%	0.041%	0.048%	0.046%	0.039%
#5 - Trade expense categories
5a Total commissions & fees	$49.1	$41.4	$26.2	$27.0	$33.5	$28.7	$26.1	$27.1	$27.8	$31.4	$26.0	$26.6	$370.9
5b Execution cost (4c-5a)	$106.4	$156.4	$25.0	$66.4	$92.1	$52.5	$41.8	$53.7	$64.9	$100.5	$110.8	$118.3	$988.8
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)	0.015%	0.011%	0.010%	0.011%	0.012%	0.010%	0.010%	0.011%	0.010%	0.009%	0.009%	0.008%	0.010%
Execution cost (5b/2c)	0.031%	0.042%	0.010%	0.026%	0.033%	0.020%	0.017%	0.021%	0.025%	0.032%	0.039%	0.038%	0.029%
Net Expense to IB Clients	0.046%	0.053%	0.020%	0.037%	0.045%	0.030%	0.027%	0.032%	0.035%	0.041%	0.048%	0.046%	0.039%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.9 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 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account 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. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 26, 2021, Best Online Broker 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/20220201006011/en/

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

Source: Interactive Brokers Group, Inc.

FAQ

What were the Daily Average Revenue Trades for IBKR in January 2022?

The Daily Average Revenue Trades (DARTs) for IBKR in January 2022 were 2.621 million, which is a 20% decline compared to the previous year.

How much did Interactive Brokers' client equity increase in January 2022?

In January 2022, Interactive Brokers' client equity increased by 12% year-over-year to $352.5 billion.

What percentage increase did IBKR see in client margin loan balances year-over-year?

IBKR reported a 23% year-over-year increase in client margin loan balances, reaching $50.1 billion.

How many client accounts did IBKR report in January 2022?

As of January 2022, IBKR reported having 1.73 million client accounts, which is a 45% increase from the prior year.

What was the average commission per cleared order for IBKR in January 2022?

The average commission per cleared order for IBKR in January 2022 was $2.47.