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 15, 2013.
|
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 15, 2013.
|
·
|
60% pretax profit margin for this quarter.
|
·
|
56% Electronic Brokerage pretax profit margin for this quarter.
|
·
|
Customer equity grew 31% from the year-ago quarter to $41.4 billion and customer debits increased by 38%, to $12.7 billion.
|
·
|
Customer accounts grew 13% from the year-ago quarter to 231 thousand.
|
·
|
Total DARTs increased 21% from the year-ago quarter to 471 thousand.
|
·
|
Brokerage segment equity surpassed $2.4 billion. Total equity was $5.1 billion.
|
(1)
|
Daily average revenue trades (DARTs) are based on customer orders.
|
(2)
|
Approximately 10% of the increase in customer equity was due to the reclassification of certain related accounts from “non-customer” to “customer”, which are regulatory distinctions.
|
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
|
2009
|
93,550
|
127,338
|
13,636
|
234,524
|
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
|
2012
|
60,421
|
-5%
|
150,000
|
-7%
|
16,118
|
-16%
|
226,540
|
-7%
|
904
|
3Q2012
|
14,405
|
36,246
|
3,435
|
54,086
|
865
|
||||
3Q2013
|
15,522
|
8%
|
42,597
|
18%
|
4,586
|
34%
|
62,705
|
16%
|
987
|
CONTRACT AND SHARE VOLUMES:
|
|
|||||||||||
(in 000's, except %)
|
||||||||||||
TOTAL
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2009
|
643,380
|
82,345
|
75,449,891
|
|||||||||
2010
|
678,856
|
6%
|
96,193
|
17%
|
84,469,874
|
12%
|
||||||
2011
|
789,370
|
16%
|
106,640
|
11%
|
77,730,974
|
-8%
|
||||||
2012
|
698,140
|
-12%
|
98,801
|
-7%
|
65,872,960
|
-15%
|
||||||
3Q2012 |
|
169,745
|
24,020
|
15,364,650
|
||||||||
3Q2013
|
|
153,153
|
-10%
|
29,666
|
24%
|
22,989,713
|
50%
|
|||||
MARKET MAKING
|
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2009 **
|
428,810
|
15,122
|
26,205,229
|
|||||||||
2010 **
|
|
435,184
|
1%
|
15,371
|
2%
|
19,165,000
|
-27%
|
|||||
2011 **
|
|
503,053
|
16%
|
15,519
|
1%
|
11,788,769
|
-38%
|
|||||
2012 **
|
|
457,384
|
-9%
|
12,660
|
-18%
|
9,339,465
|
-21%
|
|||||
3Q2012 **
|
|
110,549
|
3,007
|
2,347,903
|
||||||||
3Q2013 **
|
|
93,254
|
-16%
|
4,263
|
42%
|
3,169,320
|
35%
|
|||||
BROKERAGE TOTAL
|
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2009
|
214,570
|
67,223
|
49,244,662
|
|||||||||
2010
|
243,672
|
14%
|
80,822
|
20%
|
65,304,874
|
33%
|
||||||
2011
|
286,317
|
18%
|
91,121
|
13%
|
65,942,205
|
1%
|
||||||
2012
|
240,756
|
-16%
|
86,141
|
-5%
|
56,533,495
|
-14%
|
||||||
3Q2012
|
|
59,196
|
21,013
|
13,016,747
|
||||||||
3Q2013
|
|
59,899
|
1%
|
25,403
|
21%
|
19,820,393
|
52%
|
|||||
* 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
|
2009
|
93,868
|
66,241
|
46,627,344
|
|||
2010
|
103,054
|
10%
|
79,144
|
19%
|
62,077,741
|
33%
|
2011
|
145,993
|
42%
|
89,610
|
13%
|
63,098,072
|
2%
|
2012
|
144,539
|
-1%
|
84,794
|
-5%
|
54,371,351
|
-14%
|
3Q2012
|
37,174
|
20,686
|
12,594,066
|
|||
3Q2013
|
42,668
|
15%
|
25,017
|
21%
|
18,820,414
|
49%
|
* Includes options on futures
|
BROKERAGE STATISTICS
|
|||
(in 000's, except % and where noted)
|
|||
3Q2013
|
3Q2012
|
% Change
|
|
Total Accounts
|
231
|
205
|
13%
|
Customer Equity (in billions) *
|
$41.4
|
$31.5
|
31%
|
Cleared DARTs
|
426
|
369
|
15%
|
Total Customer DARTs
|
471
|
390
|
21%
|
Cleared Customers (in $'s, except DART per account)
|
|||
Commission per DART
|
$4.32
|
$4.23
|
2%
|
DART per Avg. Account (Annualized)
|
469
|
456
|
3%
|
Net Revenue per Avg. Account (Annualized)
|
$3,291
|
$3,216
|
2%
|
* Excludes non-customers. Approximately 10% of the increase in customer equity was due to the reclassification of certain related accounts
|
|||
from “non-customer” to “customer”, which are regulatory distinctions.
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in millions)
|
||||||||||||
Electronic Brokerage
|
Net revenues
|
$194.7
|
$167.6
|
$602.5
|
$498.3
|
|||||||
Non-interest expenses
|
86.3
|
86.8
|
259.8
|
243.9
|
||||||||
Income (loss) before income taxes
|
$108.4
|
$80.8
|
$342.7
|
$254.4
|
||||||||
Pre-tax profit margin
|
56%
|
48%
|
57%
|
51%
|
||||||||
Market Making
|
Net revenues
|
$130.9
|
$154.1
|
$221.9
|
$387.8
|
|||||||
Non-interest expenses
|
43.4
|
63.9
|
155.8
|
207.6
|
||||||||
Income (loss) before income taxes
|
$87.5
|
$90.2
|
$66.1
|
$180.2
|
||||||||
Pre-tax profit margin
|
67%
|
59%
|
30%
|
46%
|
||||||||
Corporate*
|
Net revenues
|
$0.7
|
($3.1
|
)
|
$1.9
|
($2.7
|
)
|
|||||
Non-interest expenses
|
0.2
|
(4.7
|
)
|
(1.8
|
)
|
1.1
|
||||||
Income (loss) before income taxes
|
$0.5
|
$1.6
|
$3.7
|
($3.8
|
)
|
|||||||
Total
|
Net revenues
|
$326.3
|
$318.6
|
$826.3
|
$883.4
|
|||||||
Non-interest expenses
|
129.9
|
146.0
|
413.8
|
452.6
|
||||||||
Income (loss) before income taxes
|
$196.4
|
$172.6
|
$412.5
|
$430.8
|
||||||||
Pre-tax profit margin
|
60%
|
54%
|
50%
|
49%
|
||||||||
* Corporate includes corporate related activities as well as inter-segment eliminations.
|
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions, except share and per share data)
|
|||||||||||
Revenues:
|
|||||||||||
Trading gains
|
$123.3
|
$149.7
|
$201.4
|
$372.0
|
|||||||
Commissions and execution fees
|
120.4
|
100.5
|
378.0
|
309.5
|
|||||||
Interest income
|
74.0
|
65.4
|
220.6
|
200.6
|
|||||||
Other income
|
20.8
|
17.2
|
65.0
|
50.8
|
|||||||
Total revenues
|
338.5
|
332.8
|
865.0
|
932.9
|
|||||||
Interest expense
|
12.2
|
14.2
|
38.7
|
49.5
|
|||||||
Total net revenues
|
326.3
|
318.6
|
826.3
|
883.4
|
|||||||
Non-interest expenses:
|
|||||||||||
Execution and clearing
|
56.0
|
61.7
|
180.3
|
192.5
|
|||||||
Employee compensation and benefits
|
44.3
|
57.7
|
148.6
|
180.2
|
|||||||
Occupancy, depreciation and amortization
|
9.3
|
9.0
|
28.6
|
28.9
|
|||||||
Communications
|
6.2
|
6.0
|
17.4
|
17.2
|
|||||||
General and administrative
|
14.1
|
11.6
|
38.9
|
33.8
|
|||||||
Total non-interest expenses
|
129.9
|
146.0
|
413.8
|
452.6
|
|||||||
Income before income taxes
|
196.4
|
172.6
|
412.5
|
430.8
|
|||||||
Income tax expense
|
10.4
|
14.7
|
31.2
|
34.4
|
|||||||
Net income
|
186.0
|
157.9
|
381.3
|
396.4
|
|||||||
Net income attributable to noncontrolling interests
|
169.5
|
145.4
|
347.9
|
364.8
|
|||||||
Net income (loss) attributable to common stockholders
|
$16.5
|
$12.5
|
$33.4
|
$31.6
|
|||||||
Earnings (loss) per share* :
|
|||||||||||
Basic
|
$0.33
|
$0.26
|
$0.68
|
$0.70
|
|||||||
Diluted
|
$0.32
|
$0.26
|
$0.67
|
$0.70
|
|||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
49,966,050
|
47,488,459
|
48,807,321
|
46,588,213
|
|||||||
Diluted
|
50,988,214
|
47,679,818
|
49,981,664
|
46,865,770
|
|||||||
Comprehensive income:
|
|||||||||||
Net income (loss) attributable to common stockholders
|
$16.5
|
$12.5
|
$33.4
|
$31.6
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
3.7
|
3.0
|
(4.0
|
) |
1.3
|
||||||
Income taxes related to items of other comprehensive income
|
0.1
|
1.1
|
(0.3
|
)
|
0.5
|
||||||
Other comprehensive income (loss), net of tax
|
3.6
|
1.9
|
(3.7
|
)
|
0.8
|
||||||
Comprehensive income (loss) attributable to common stockholders
|
$20.1
|
$14.4
|
$29.7
|
$32.4
|
|||||||
Comprehensive income attributable to noncontrolling interests:
|
|||||||||||
Net income attributable to noncontrolling interests
|
169.5
|
$145.4
|
$347.9
|
$364.8
|
|||||||
Other comprehensive income (loss) - cumulative translation adjustment
|
26.0
|
22.0
|
(29.6
|
)
|
9.9
|
||||||
Comprehensive income attributable to noncontrolling interests
|
$195.5
|
$167.4
|
$318.3
|
$374.7
|
|||||||
* EPS is based on Net income (loss) available for common stockholders, please see table below. "Earnings per Share on Comprehensive Income" table. |
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions, except share and per share data)
|
|||||||||||
Net income (loss) attributable to common stockholders
|
$16.5
|
$12.5
|
$33.4
|
$31.6
|
|||||||
Add (deduct) net income attributable to non-fair value redemption rights
|
0.0
|
0.0
|
0.0
|
1.1
|
|
||||||
Net income (loss) available for common stockholders
|
$16.5
|
$12.5
|
$33.4
|
$32.7
|
|||||||
Other comprehensive income:
|
|||||||||||
Cumulative translation adjustment, before income taxes
|
3.7
|
3.0
|
(4.0
|
)
|
1.3
|
||||||
Income taxes related to items of other comprehensive income
|
0.1
|
1.1
|
(0.3
|
)
|
0.5
|
|
|||||
Other comprehensive income (loss), net of tax
|
3.6
|
1.9
|
(3.7
|
)
|
0.8
|
|
|||||
Comprehensive income (loss) available for common stockholders
|
$20.1
|
$14.4
|
$29.7
|
$33.5
|
|
||||||
Comprehensive income (loss) per share:
|
|||||||||||
Basic
|
$0.40
|
$0.30
|
$0.61
|
$0.72
|
|
||||||
Diluted
|
$0.39
|
$0.30
|
$0.59
|
$0.71
|
|
||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
49,966,050
|
47,488,459
|
48,807,321
|
46,588,213
|
|||||||
Diluted
|
50,988,214
|
47,679,818
|
49,981,664
|
46,865,770
|
September 30, 2013 |
|
December 31, 2012
|
|
(in millions)
|
|||
Assets
|
|||
Cash and cash equivalents
|
$1,548.5
|
$1,614.6
|
|
Cash and securities - segregated for regulatory purposes
|
12,681.1
|
12,482.4
|
|
Securities purchased under agreements to resell
|
487.8
|
428.9
|
|
Securities borrowed
|
3,363.2
|
2,833.1
|
|
Trading assets, at fair value
|
4,425.3
|
4,544.7
|
|
Receivables from customers, net of allowance
|
12,727.6
|
9,851.0
|
|
Receivables from brokers, dealers and clearing organizations
|
490.9
|
844.6
|
|
Other assets
|
552.6
|
600.3
|
|
Total assets
|
$36,277.0
|
$33,199.6
|
|
Liabilities and equity
|
|||
Liabilities
|
|||
Trading liabilities - financial instruments sold but not yet purchased, at fair value
|
$3,593.3
|
$4,286.3
|
|
Securities loaned
|
2,193.0
|
1,839.3
|
|
Short-term borrowings
|
2.6
|
110.4
|
|
Other payables:
|
|||
Customers
|
24,809.3
|
21,422.0
|
|
Brokers, dealers and clearing organizations
|
234.8
|
361.8
|
|
Other payables
|
371.1
|
366.7
|
|
25,415.2
|
22,150.5
|
||
Senior notes payable and senior secured credit facility
|
0.0
|
0.0
|
|
Equity
|
|||
Stockholders' equity
|
642.6
|
598.5
|
|
Noncontrolling interests
|
4,430.3
|
4,214.6
|
|
Total equity
|
5,072.9
|
4,813.1
|
|
Total liabilities and equity
|
$36,277.0
|
$33,199.6
|