Delaware
|
001-33440
|
30-0390693
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d)
|
Exhibits.
|
99.1
|
Press Release dated October 20, 2011.
|
INTERACTIVE BROKERS GROUP, INC.
|
|||
By:
|
/s/ Paul J. Brody
|
||
Name:
|
Paul J. Brody
|
||
Title:
|
Chief Financial Officer, Treasurer
and Secretary
|
99.1
|
Press Release dated October 20, 2011.
|
·
|
56% pretax profit margin for this quarter.
|
·
|
55% Electronic Brokerage pretax profit margin for this quarter.
|
·
|
63% Market Making pretax profit margin for this quarter.
|
·
|
Customer equity increased 23% from the year-ago quarter to $23.3 billion and customer accounts increased 22%.
|
·
|
Cleared DARTs increased 43% from the year-ago quarter to 457,000.
|
·
|
Electronic Brokerage pretax income increased 66% from the year-ago quarter to $106 million.
|
·
|
Market Making pretax income increased 24% from the year-ago quarter to $129 million.
|
(1)
|
Daily average revenue trades (DARTs) are based on customer orders.
|
(2)
|
Accounting Standards Update 2011-05, Comprehensive Income.
|
TRADE VOLUMES:
|
|||||||||
(in 000's, except %)
|
Brokerage
|
||||||||
Market
|
Brokerage
|
Non
|
Avg. Trades
|
||||||
Making
|
%
|
Cleared
|
%
|
Cleared
|
%
|
Total
|
%
|
per U.S.
|
|
Period
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trading Day
|
2006
|
66,043
|
51,238
|
12,828
|
130,109
|
518
|
||||
2007
|
99,086
|
50%
|
72,931
|
42%
|
16,638
|
30%
|
188,655
|
45%
|
752
|
2008
|
101,672
|
3%
|
120,195
|
65%
|
16,966
|
2%
|
238,833
|
27%
|
944
|
2009
|
93,550
|
-8%
|
127,338
|
6%
|
13,636
|
-20%
|
234,524
|
-2%
|
934
|
2010
|
75,169
|
-20%
|
133,658
|
5%
|
18,732
|
37%
|
227,559
|
-3%
|
905
|
3Q2010
|
17,796
|
31,894
|
4,746
|
54,436
|
851
|
||||
3Q2011
|
19,602
|
10%
|
45,879
|
44%
|
5,273
|
11%
|
70,754
|
30%
|
1,106
|
CONTRACT AND SHARE VOLUMES:
|
||||||
(in 000's, except %)
|
||||||
TOTAL
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
2006
|
563,623
|
62,419
|
34,493,410
|
|||
2007
|
673,144
|
19%
|
83,134
|
33%
|
47,324,798
|
37%
|
2008
|
757,732
|
13%
|
108,984
|
31%
|
55,845,428
|
18%
|
2009
|
643,380
|
-15%
|
82,345
|
-24%
|
75,449,891
|
35%
|
2010
|
678,856
|
6%
|
96,193
|
17%
|
84,469,874
|
12%
|
3Q2010
|
163,298
|
24,094
|
18,665,413
|
|||
3Q2011
|
254,904
|
56%
|
31,835
|
32%
|
20,598,631
|
10%
|
MARKET MAKING
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
2006
|
371,929
|
14,818
|
21,180,377
|
|||
2007
|
447,905
|
20%
|
14,520
|
-2%
|
24,558,314
|
16%
|
2008 **
|
514,629
|
15%
|
21,544
|
48%
|
26,008,433
|
6%
|
2009 **
|
428,810
|
-17%
|
15,122
|
-30%
|
26,205,229
|
1%
|
2010 **
|
435,184
|
1%
|
15,371
|
2%
|
19,165,000
|
-27%
|
3Q2010 **
|
107,602
|
4,225
|
4,411,226
|
|||
3Q2011 **
|
171,731
|
60%
|
4,835
|
14%
|
3,921,841
|
-11%
|
BROKERAGE TOTAL
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
2006
|
191,694
|
47,601
|
13,313,033
|
|||
2007
|
225,239
|
17%
|
68,614
|
44%
|
22,766,484
|
71%
|
2008
|
243,103
|
8%
|
87,440
|
27%
|
29,836,995
|
31%
|
2009
|
214,570
|
-12%
|
67,223
|
-23%
|
49,244,662
|
65%
|
2010
|
243,672
|
14%
|
80,822
|
20%
|
65,304,874
|
33%
|
3Q2010
|
55,696
|
19,869
|
14,254,187
|
|||
3Q2011
|
83,173
|
49%
|
27,000
|
36%
|
16,676,790
|
17%
|
* Includes options on futures
|
** In Brazil, an equity option contract typically represents 1 share of the underlying stock; however, the typical minimum
|
trading quantity is 100 contracts. To make a fair comparison to volume at other exchanges, we have adopted a policy
|
of reporting Brazilian equity options contracts divided by their trading quantity of 100.
|
BROKERAGE CLEARED
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
2006
|
32,384
|
45,351
|
12,492,870
|
|||
2007
|
51,586
|
59%
|
66,278
|
46%
|
20,353,584
|
63%
|
2008
|
77,207
|
50%
|
85,599
|
29%
|
26,334,752
|
29%
|
2009
|
93,868
|
22%
|
66,241
|
-23%
|
46,627,344
|
77%
|
2010
|
103,054
|
10%
|
79,144
|
19%
|
62,077,741
|
33%
|
3Q2010
|
22,930
|
19,399
|
13,455,306
|
|||
3Q2011
|
43,994
|
92%
|
26,601
|
37%
|
15,846,432
|
18%
|
BROKERAGE STATISTICS
|
|||
(in 000's, except % and where noted)
|
|||
3Q2011
|
3Q2010
|
% Change
|
|
Total Accounts
|
184
|
151
|
22%
|
Customer Equity (in billions) *
|
$23.3
|
$18.9
|
23%
|
Cleared DARTs
|
457
|
320
|
43%
|
Total Customer DARTs
|
495
|
355
|
39%
|
Cleared Customers (in $'s, except DART per account)
|
|||
Commission per DART
|
$4.29
|
$4.17
|
3%
|
DART per Avg. Account (Annualized)
|
640
|
544
|
18%
|
Net Revenue per Avg. Account (Annualized)
|
$4,024
|
$3,251
|
24%
|
Three Months
|
Nine Months
|
||||||||
Ended September 30,
|
Ended September 30,
|
||||||||
2011
|
2010
|
2011
|
2010
|
||||||
(in millions)
|
(in millions)
|
||||||||
Electronic Brokerage
|
Net revenues
|
$191.7
|
$129.3
|
$525.1
|
$401.1
|
||||
Non-interest expenses
|
86.2
|
65.9
|
240.5
|
201.0
|
|||||
Income before income taxes
|
$105.5
|
$63.4
|
$284.6
|
$200.1
|
|||||
Pre-tax profit margin
|
55
|
% |
49
|
% |
54
|
% |
50
|
% | |
Market Making
|
Net revenues
|
$204.3
|
$170.7
|
$532.4
|
$335.2
|
||||
Non-interest expenses
|
75.8
|
66.8
|
210.0
|
221.9
|
|||||
Income before income taxes
|
$128.5
|
$103.9
|
$322.4
|
$113.3
|
|||||
Pre-tax profit margin
|
63
|
% |
61
|
% |
61
|
% |
34
|
% | |
Corporate*
|
Net revenues
|
($10.4
|
) |
($0.9
|
) |
($7.1
|
) |
($0.5
|
) |
Non-interest expenses
|
5.8
|
4.5
|
11.0
|
14.0
|
|||||
Income before income taxes
|
($16.2
|
) |
($5.4
|
) |
($18.1
|
) |
($14.5
|
) | |
Total
|
Net revenues
|
$385.6
|
$299.1
|
$1,050.4
|
$735.8
|
||||
Non-interest expenses
|
167.8
|
137.2
|
461.5
|
436.9
|
|||||
Income before income taxes
|
$217.8
|
$161.9
|
$588.9
|
$298.9
|
|||||
Pre-tax profit margin
|
56
|
% |
54
|
% |
56
|
% |
41
|
% | |
* Corporate includes corporate related activities as well as inter-segment eliminations.
|
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||
(in millions, except share and per share data)
|
|||||||||||
Revenues:
|
|||||||||||
Trading gains
|
$193.8
|
$168.7
|
$514.7
|
$326.9
|
|||||||
Commissions and execution fees
|
130.6
|
90.1
|
346.3
|
289.4
|
|||||||
Interest income
|
73.8
|
42.4
|
211.8
|
120.0
|
|||||||
Other income
|
10.7
|
13.9
|
43.1
|
48.4
|
|||||||
Total revenues
|
408.9
|
315.1
|
1,115.9
|
784.7
|
|||||||
Interest expense
|
23.3
|
16.0
|
65.5
|
48.9
|
|||||||
Total net revenues
|
385.6
|
299.1
|
1,050.4
|
735.8
|
|||||||
Non-interest expenses:
|
|||||||||||
Execution and clearing
|
82.1
|
61.9
|
214.4
|
207.1
|
|||||||
Employee compensation and benefits
|
56.2
|
49.6
|
161.2
|
149.6
|
|||||||
Occupancy, depreciation and amortization
|
9.0
|
9.1
|
27.3
|
27.5
|
|||||||
Communications
|
5.7
|
5.9
|
17.8
|
17.6
|
|||||||
General and administrative
|
14.8
|
10.7
|
40.8
|
35.1
|
|||||||
Total non-interest expenses
|
167.8
|
137.2
|
461.5
|
436.9
|
|||||||
Income before income taxes
|
217.8
|
161.9
|
588.9
|
298.9
|
|||||||
Income tax expense
|
15.3
|
13.1
|
46.5
|
25.7
|
|||||||
Net income
|
202.5
|
148.8
|
542.4
|
273.2
|
|||||||
Net income attributable to non-controlling interests
|
180.0
|
137.7
|
494.1
|
254.4
|
|||||||
Net income available for common shareholders
|
$22.5
|
$11.1
|
$48.3
|
$18.8
|
|||||||
Earnings per share:
|
|||||||||||
Basic
|
$0.50
|
$0.26
|
$1.11
|
$0.45
|
|||||||
Diluted
|
$0.50
|
$0.26
|
$1.10
|
$0.44
|
|||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
44,832,545
|
42,222,449
|
43,370,291
|
41,750,973
|
|||||||
Diluted
|
45,208,557
|
42,784,799
|
43,832,558
|
42,401,307
|
|||||||
Comprehensive income:
|
|||||||||||
Net income available for common stockholders
|
$22.5
|
$11.1
|
$48.3
|
$18.8
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
(10.1
|
) |
17.4
|
(2.1
|
) |
9.5
|
|||||
Income taxes related to items of other comprehensive income
|
(3.7
|
) |
6.4
|
(0.8
|
) |
3.5
|
|||||
Other comprehensive income (loss), net of tax
|
(6.4
|
) |
11.0
|
(1.3
|
) |
6.0
|
|||||
Comprehensive income available for common stockholders
|
$16.1
|
$22.1
|
$47.0
|
$24.8
|
|||||||
Comprehensive income attributable to non-controlling interests:
|
|||||||||||
Net income attributable to non-controlling interests
|
$180.0
|
$137.7
|
$494.1
|
$254.4
|
|||||||
Other comprehensive income (loss) - cumulative translation adjustment |
(75.9
|
) |
144.7
|
(9.2
|
) |
76.5
|
|||||
Comprehensive income attributable to non-controlling interests
|
$104.1
|
$282.4
|
$484.9
|
$330.9
|
September 30, 2011 |
December 31, 2010
|
|||
(in millions)
|
||||
Assets
|
||||
Cash and cash equivalents
|
$1,555.7
|
$1,354.2
|
||
Cash and securities - segregated for regulatory purposes
|
10,302.8
|
7,888.1
|
||
Securities purchased under agreements to resell
|
463.4
|
336.3
|
||
Securities borrowed
|
3,385.3
|
3,292.3
|
||
Trading assets, at fair value
|
8,884.9
|
7,422.4
|
||
Receivables from customers, net of allowance
|
6,815.5
|
6,973.0
|
||
Receivables from brokers, dealers and clearing organizations
|
1,149.0
|
732.9
|
||
Other assets
|
594.5
|
499.6
|
||
Total assets
|
$33,151.1
|
$28,498.8
|
||
Liabilities and equity
|
||||
Liabilities
|
||||
Trading liabilities - financial instruments sold but not yet purchased, at fair value
|
$8,360.8
|
$6,125.2
|
||
Securities loaned
|
1,572.4
|
1,659.6
|
||
Short-term borrowings
|
151.8
|
187.4
|
||
Other payables:
|
||||
Customers
|
17,277.1
|
15,060.5
|
||
Brokers, dealers and clearing organizations
|
499.1
|
248.7
|
||
Other payables
|
530.7
|
702.3
|
||
18,306.9
|
16,011.5
|
|||
Senior notes payable and senior secured credit facility
|
125.9
|
294.6
|
||
Equity
|
||||
Stockholders' equity
|
565.7
|
487.8
|
||
Non-controlling interests
|
4,067.6
|
3,732.7
|
||
Total equity
|
4,633.3
|
4,220.5
|
||
Total liabilities and equity
|
$33,151.1
|
$28,498.8
|
Three months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||
(in millions) | |||||||||||
Net income available for common stockholders
|
$22.5
|
$11.1
|
$48.3
|
$18.8
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
(10.1
|
) |
17.4
|
(2.1
|
) |
9.5
|
|||||
Income taxes related to items of other comprehensive income
|
(3.7
|
) |
6.4
|
(0.8
|
) |
3.5
|
|||||
Other comprehensive income (loss), net of tax
|
(6.4
|
) |
11.0
|
(1.3
|
) |
6.0
|
|||||
Comprehensive income available for common stockholders
|
$16.1
|
$22.1
|
$47.0
|
$24.8
|
|||||||
Comprehensive income per share:
|
|||||||||||
Basic
|
$0.36
|
$0.52
|
$1.08
|
$0.59
|
|||||||
Diluted
|
$0.36
|
$0.52
|
$1.07
|
$0.58
|
|||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
44,832,545
|
42,222,449
|
43,370,291
|
41,750,973
|
|||||||
Diluted
|
45,208,557
|
42,784,799
|
43,832,558
|
42,401,307
|