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 16, 2012.
|
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 16, 2012.
|
·
|
54% pretax profit margin for this quarter.
|
·
|
$5.15 billion in equity.
|
·
|
48% Electronic Brokerage pretax profit margin for this quarter.
|
·
|
59% Market Making pretax profit margin for this quarter.
|
·
|
Customer equity grew 35% from the year-ago quarter to $31.5 billion and customer accounts increased 11% to 205 thousand.
|
·
|
Cleared DARTs decreased 19% from the year-ago quarter to 369,000.
|
(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
|
2007
|
99,086
|
72,931
|
16,638
|
188,655
|
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
|
2011
|
63,602
|
-15%
|
160,567
|
20%
|
19,187
|
2%
|
243,356
|
7%
|
968
|
3Q2011
|
19,602
|
45,879
|
5,273
|
70,754
|
1,106
|
||||
3Q2012
|
14,405
|
-27%
|
36,246
|
-21%
|
3,435
|
-35%
|
54,086
|
-24%
|
865
|
CONTRACT AND SHARE VOLUMES:
|
|||||||||
(in 000's, except %)
|
|||||||||
TOTAL
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|||
2007
|
673,144
|
83,134
|
47,324,798
|
||||||
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%
|
|||
2011
|
789,370
|
16%
|
106,640
|
11%
|
77,730,974
|
-8%
|
|||
3Q2011
|
254,904
|
31,835
|
20,598,631
|
||||||
3Q2012
|
169,745
|
-33%
|
24,020
|
-25%
|
15,364,650
|
-25%
|
|||
MARKET MAKING
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|||
2007
|
447,905
|
14,520
|
24,558,314
|
||||||
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%
|
|||
2011 **
|
503,053
|
16%
|
15,519
|
1%
|
11,788,769
|
-38%
|
|||
3Q2011 **
|
171,731
|
4,835
|
3,921,841
|
||||||
3Q2012 **
|
110,549
|
-36%
|
3,007
|
-38%
|
2,347,903
|
-40%
|
|||
BROKERAGE TOTAL
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|||
2007
|
225,239
|
68,614
|
22,766,484
|
||||||
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%
|
|||
2011
|
286,317
|
18%
|
91,121
|
13%
|
65,942,205
|
1%
|
|||
3Q2011
|
83,173
|
27,000
|
16,676,790
|
||||||
3Q2012
|
59,196
|
-29%
|
21,013
|
-22%
|
13,016,747
|
-22%
|
|||
* 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.
|
CONTRACT AND SHARE VOLUMES, continued:
|
|||||||
(in 000's, except %)
|
|||||||
BROKERAGE CLEARED
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|
2007
|
51,586
|
66,278
|
20,353,584
|
||||
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%
|
|
2011
|
145,993
|
42%
|
89,610
|
13%
|
63,098,072
|
2%
|
|
3Q2011
|
43,994
|
26,601
|
15,846,432
|
||||
3Q2012
|
37,174
|
-16%
|
20,686
|
-22%
|
12,594,066
|
-21%
|
|
* Includes options on futures
|
BROKERAGE STATISTICS
|
|||
(in 000's, except % and where noted)
|
|||
3Q2012
|
3Q2011
|
% Change
|
|
Total Accounts
|
205
|
184
|
11%
|
Customer Equity (in billions) *
|
$31.5
|
$23.3
|
35%
|
Cleared DARTs
|
369
|
457
|
-19%
|
Total Customer DARTs
|
390
|
495
|
-21%
|
Cleared Customers (in $'s, except DART per account)
|
|||
Commission per DART
|
$4.23
|
$4.29
|
-1%
|
DART per Avg. Account (Annualized)
|
456
|
640
|
-29%
|
Net Revenue per Avg. Account (Annualized)
|
$3,216
|
$4,024
|
-20%
|
* Excludes non-customers
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
(in millions)
|
||||||||||||
Electronic Brokerage
|
Net revenues
|
$167.6
|
$191.7
|
$498.3
|
$525.1
|
|||||||
Non-interest expenses
|
86.8
|
86.2
|
243.9
|
240.5
|
||||||||
Income before income taxes
|
$80.8
|
$105.5
|
$254.4
|
$284.6
|
||||||||
Pre-tax profit margin
|
48
|
% |
55
|
% |
51
|
% |
54
|
% | ||||
Market Making
|
Net revenues
|
$154.1
|
$204.3
|
$387.8
|
$532.4
|
|||||||
Non-interest expenses
|
63.9
|
75.8
|
207.6
|
210.0
|
||||||||
Income (loss) before income taxes
|
$90.2
|
$128.5
|
$180.2
|
$322.4
|
||||||||
Pre-tax profit margin
|
59
|
% |
63
|
% |
46
|
% |
61
|
% | ||||
Corporate*
|
Net revenues
|
($3.1
|
) |
($10.4
|
) |
($2.7
|
) |
($7.1
|
) | |||
Non-interest expenses
|
(4.7
|
) |
5.8
|
1.1
|
11.0
|
|||||||
Income (loss) before income taxes
|
$1.6
|
($16.2
|
) |
($3.8
|
) |
($18.1
|
) | |||||
Total
|
Net revenues
|
$318.6
|
$385.6
|
$883.4
|
$1,050.4
|
|||||||
Non-interest expenses
|
146.0
|
167.8
|
452.6
|
461.5
|
||||||||
Income before income taxes
|
$172.6
|
$217.8
|
$430.8
|
$588.9
|
||||||||
Pre-tax profit margin
|
54
|
% |
56
|
% |
49
|
% |
56
|
% | ||||
* Corporate includes corporate related activities as well as inter-segment eliminations.
|
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
(in millions, except share and per share data)
|
|||||||||||
(As Restated)
|
(As Restated)
|
||||||||||
Revenues:
|
|||||||||||
Trading gains
|
$149.7
|
$193.8
|
$372.0
|
$514.7
|
|||||||
Commissions and execution fees
|
100.5
|
130.6
|
309.5
|
346.3
|
|||||||
Interest income
|
65.4
|
73.8
|
200.6
|
211.8
|
|||||||
Other income
|
17.2
|
10.7
|
50.8
|
43.1
|
|||||||
Total revenues
|
332.8
|
408.9
|
932.9
|
1,115.9
|
|||||||
Interest expense
|
14.2
|
23.3
|
49.5
|
65.5
|
|||||||
Total net revenues
|
318.6
|
385.6
|
883.4
|
1,050.4
|
|||||||
Non-interest expenses:
|
|||||||||||
Execution and clearing
|
61.7
|
82.1
|
192.5
|
214.4
|
|||||||
Employee compensation and benefits
|
57.7
|
56.2
|
180.2
|
161.2
|
|||||||
Occupancy, depreciation and amortization
|
9.0
|
9.0
|
28.9
|
27.3
|
|||||||
Communications
|
6.0
|
5.7
|
17.2
|
17.8
|
|||||||
General and administrative
|
11.6
|
14.8
|
33.8
|
40.8
|
|||||||
Total non-interest expenses
|
146.0
|
167.8
|
452.6
|
461.5
|
|||||||
Income before income taxes
|
172.6
|
217.8
|
430.8
|
588.9
|
|||||||
Income tax expense
|
14.7
|
15.3
|
34.4
|
46.5
|
|||||||
Net income
|
157.9
|
202.5
|
396.4
|
542.4
|
|||||||
Net income attributable to noncontrolling interests
|
145.4
|
180.0
|
364.8
|
494.1
|
|||||||
Net income (loss) attributable to common stockholders
|
$12.5
|
$22.5
|
$31.6
|
$48.3
|
|||||||
Earnings (loss) per share :
|
|||||||||||
Basic
|
$0.26
|
$0.48
|
$0.70
|
$1.10
|
|||||||
Diluted
|
$0.26
|
$0.48
|
$0.70
|
$1.09
|
|||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
47,488,459
|
44,832,545
|
46,588,213
|
43,370,291
|
|||||||
Diluted
|
47,679,818
|
45,208,557
|
46,865,770
|
43,832,558
|
|||||||
Comprehensive income:
|
|||||||||||
Net income (loss) attributable to common stockholders
|
$12.5
|
$22.5
|
$31.6
|
$48.3
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
3.0
|
(10.1
|
) |
1.3
|
(2.1
|
) | |||||
Income taxes related to items of other comprehensive income
|
1.1
|
(3.7
|
) |
0.5
|
(0.8
|
) | |||||
Other comprehensive income (loss), net of tax
|
1.9
|
(6.4
|
) |
0.8
|
(1.3
|
) | |||||
Comprehensive income (loss) attributable to common stockholders
|
$14.4
|
$16.1
|
$32.4
|
$47.0
|
|||||||
Comprehensive income attributable to noncontrolling interests:
|
|||||||||||
Net income attributable to noncontrolling interests
|
145.4
|
$180.0
|
$364.8
|
$494.1
|
|||||||
Other comprehensive income (loss) - cumulative translation adjustment
|
22.0
|
(75.9
|
) |
9.9
|
(9.2
|
) | |||||
Comprehensive income attributable to noncontrolling interests
|
$167.4
|
$104.1
|
$374.7
|
$484.9
|
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
(in millions, except share and per share data)
|
|||||||||||
(As Restated)
|
(As Restated)
|
||||||||||
Net income (loss) attributable to common stockholders
|
$12.5
|
$22.5
|
$31.6
|
$48.3
|
|||||||
Add (deduct) net income attributable to non-fair value redemption rights
|
0.0
|
(0.8
|
) |
1.1
|
(0.4
|
) | |||||
Net income (loss) available for common stockholders
|
$12.5
|
$21.7
|
$32.7
|
$47.9
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
3.0
|
(10.1
|
) |
1.3
|
(2.1
|
) | |||||
Income taxes related to items of other comprehensive income
|
1.1
|
(3.7
|
) |
0.5
|
(0.8
|
) | |||||
Other comprehensive income (loss), net of tax
|
1.9
|
(6.4
|
) |
0.8
|
(1.3
|
) | |||||
Comprehensive income (loss) available for common stockholders
|
$14.4
|
$15.3
|
$33.5
|
$46.6
|
|||||||
Comprehensive income (loss) per share:
|
|||||||||||
Basic
|
$0.30
|
$0.34
|
$0.72
|
$1.07
|
|||||||
Diluted
|
$0.30
|
$0.34
|
$0.71
|
$1.06
|
|||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
47,488,459
|
44,832,545
|
46,588,213
|
43,370,291
|
|||||||
Diluted
|
47,679,818
|
45,208,557
|
46,865,770
|
43,832,558
|
September 30, 2012 |
|
December 31, 2011
|
|||
(in millions)
|
|||||
(As Restated)
|
|||||
Assets
|
|||||
Cash and cash equivalents
|
$1,659.5
|
$1,695.5
|
|||
Cash and securities - segregated for regulatory purposes
|
12,325.8
|
10,069.9
|
|||
Securities purchased under agreements to resell
|
344.2
|
375.4
|
|||
Securities borrowed
|
2,966.1
|
2,661.7
|
|||
Trading assets, at fair value
|
5,705.0
|
6,615.1
|
|||
Receivables from customers, net of allowance
|
9,391.0
|
7,024.8
|
|||
Receivables from brokers, dealers and clearing organizations
|
874.9
|
1,397.8
|
|||
Other assets
|
595.2
|
564.2
|
|||
Total assets
|
$33,861.7
|
$30,404.4
|
|||
Liabilities and equity
|
|||||
Liabilities
|
|||||
Trading liabilities - financial instruments sold but not yet purchased, at fair value
|
$4,547.2
|
$6,156.1
|
|||
Securities loaned
|
1,945.1
|
1,386.1
|
|||
Short-term borrowings
|
16.9
|
6.5
|
|||
Other payables:
|
|||||
Customers
|
21,281.3
|
17,300.1
|
|||
Brokers, dealers and clearing organizations
|
496.4
|
247.4
|
|||
Other payables
|
420.0
|
394.9
|
|||
22,197.7
|
17,942.4
|
||||
Senior notes payable and senior secured credit facility
|
0.0
|
101.4
|
|||
Reedeemable noncontrolling interests
|
0.0
|
5,269.6
|
|||
Equity
|
|||||
Stockholders' equity
|
629.6
|
(457.7
|
) | ||
Noncontrolling interests
|
4,525.2
|
0.0
|
|||
Total equity
|
5,154.8
|
(457.7
|
) | ||
Total liabilities and equity
|
$33,861.7
|
$30,404.4
|