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 January 21, 2014.
|
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 January 21, 2014.
|
·
|
42% pretax profit margin for 2013, or 48% without unusual item.
|
·
|
48% Electronic Brokerage pretax profit margin for 2013, or 56% excluding unusual item.
|
·
|
26% Market Making pretax profit margin for 2013.
|
·
|
Customer equity grew 39% from 2012 to $45.7 billion.
|
·
|
Customer accounts increased 14% in 2013 to 239,000.
|
·
|
Total DARTs increased 18% from 2012 to 486,000.
|
·
|
Brokerage segment equity was $2.5 billion. Total equity was $5.1 billion.
|
(1)
|
Approximately 9% of the increase in customer equity was due to the reclassification of certain related accounts from “non-customer” to “customer”, which are regulatory distinctions.
|
(2)
|
Daily average revenue trades (DARTs) are based on customer orders.
|
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
|
2013
|
65,320
|
8%
|
173,849
|
16%
|
18,489
|
15%
|
257,658
|
14%
|
1,029
|
4Q2012
|
14,477
|
37,300
|
3,532
|
55,309
|
878
|
||||
4Q2013
|
14,437
|
0%
|
45,167
|
21%
|
4,585
|
30%
|
64,189
|
16%
|
1,019
|
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%
|
2013
|
659,673
|
-6%
|
121,776
|
23%
|
95,479,739
|
45%
|
4Q2012
|
159,048
|
25,591
|
17,278,459
|
|||
4Q2013
|
155,216
|
-2%
|
28,724
|
12%
|
27,042,356
|
57%
|
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%
|
2013 **
|
404,490
|
-12%
|
18,184
|
44%
|
12,849,729
|
38%
|
4Q2012 **
|
102,703
|
3,203
|
2,361,442
|
|||
4Q2013 **
|
87,498
|
-15%
|
4,245
|
33%
|
2,776,564
|
18%
|
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%
|
2013
|
255,183
|
6%
|
103,592
|
20%
|
82,630,010
|
46%
|
4Q2012
|
56,345
|
22,388
|
14,917,017
|
|||
4Q2013
|
67,718
|
20%
|
24,479
|
9%
|
24,265,792
|
63%
|
* 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%
|
2013
|
180,660
|
25%
|
101,732
|
20%
|
78,829,785
|
45%
|
4Q2012
|
36,602
|
21,952
|
14,348,785
|
|||
4Q2013
|
49,181
|
34%
|
24,020
|
9%
|
23,208,208
|
62%
|
* Includes options on futures |
BROKERAGE STATISTICS
|
|||
(in 000's, except % and where noted)
|
|||
4Q2013
|
4Q2012
|
% Change
|
|
Total Accounts
|
239
|
210
|
14%
|
Customer Equity (in billions) *
|
$45.7
|
$32.9
|
39%
|
Cleared DARTs
|
453
|
378
|
20%
|
Total Customer DARTs
|
499
|
407
|
23%
|
Cleared Customers (in $'s, except DART per account)
|
|||
Commission per DART
|
$4.23
|
$4.24
|
0%
|
DART per Avg. Account (Annualized)
|
483
|
457
|
6%
|
Net Revenue per Avg. Account (Annualized)
|
$3,375
|
$3,233
|
4%
|
* Excludes non-customers. Approximately 9% 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
|
Twelve Months
|
||||||||||||
Ended December 31,
|
Ended December 31,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions) | |||||||||||||
Electronic Brokerage
|
Net revenues
|
$211.5
|
$172.1
|
$814.0
|
$670.4
|
||||||||
Non-interest expenses
|
162.9
|
84.8
|
422.7
|
328.7
|
|||||||||
Income (loss) before income taxes
|
$48.6
|
$87.3
|
$391.3
|
$341.7
|
|||||||||
Pre-tax profit margin
|
23%
|
51%
|
48%
|
51%
|
|||||||||
Market Making
|
Net revenues
|
$52.6
|
$71.8
|
$274.5
|
$459.6
|
||||||||
Non-interest expenses
|
46.8
|
63.4
|
202.6
|
271.0
|
|||||||||
Income (loss) before income taxes
|
$5.8
|
$8.4
|
$71.9
|
$188.6
|
|||||||||
Pre-tax profit margin
|
11%
|
12%
|
26%
|
41%
|
|||||||||
Corporate*
|
Net revenues
|
($14.2
|
) |
$3.2
|
($12.3
|
) |
$0.5
|
||||||
Non-interest expenses
|
1.4
|
2.7
|
(0.4
|
) |
3.8
|
||||||||
Income (loss) before income taxes
|
($15.6
|
) |
$0.5
|
($11.9
|
) |
|
($3.3
|
) | |||||
Total
|
Net revenues
|
$249.9
|
$247.1
|
$1,076.2
|
$1,130.5
|
||||||||
Non-interest expenses
|
211.1
|
150.9
|
624.9
|
603.5
|
|||||||||
Income (loss) before income taxes
|
$38.8
|
$96.2
|
$451.3
|
$527.0
|
|||||||||
Pre-tax profit margin
|
16%
|
39%
|
42%
|
47%
|
|||||||||
* Corporate includes corporate related activities as well as inter-segment eliminations.
|
Three Months
|
Twelve Months
|
|||||||||||
Ended December 31,
|
Ended December 31,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in millions, except share and per share data)
|
||||||||||||
Revenues:
|
||||||||||||
Trading gains
|
$43.8
|
$63.1
|
$245.2
|
$435.1
|
||||||||
Commissions and execution fees
|
124.1
|
103.1
|
502.1
|
412.6
|
||||||||
Interest income
|
79.1
|
67.8
|
299.7
|
268.4
|
||||||||
Other income
|
15.9
|
25.6
|
80.9
|
76.4
|
||||||||
Total revenues
|
262.9
|
259.6
|
1,127.9
|
1,192.5
|
||||||||
Interest expense
|
13.0
|
12.5
|
51.7
|
62.0
|
||||||||
Total net revenues
|
249.9
|
247.1
|
1,076.2
|
1,130.5
|
||||||||
Non-interest expenses:
|
||||||||||||
Execution and clearing
|
62.2
|
58.5
|
242.5
|
251.0
|
||||||||
Employee compensation and benefits
|
56.7
|
64.3
|
205.3
|
244.5
|
||||||||
Occupancy, depreciation and amortization
|
10.3
|
9.9
|
38.9
|
38.8
|
||||||||
Communications
|
5.7
|
6.1
|
23.1
|
23.3
|
||||||||
General and administrative
|
76.2
|
12.1
|
115.1
|
45.9
|
||||||||
Total non-interest expenses
|
211.1
|
150.9
|
624.9
|
603.5
|
||||||||
Income before income taxes
|
38.8
|
96.2
|
451.3
|
527.0
|
||||||||
Income tax expense
|
2.5
|
(4.4
|
) |
33.7
|
30.0
|
|||||||
Net income
|
36.3
|
100.6
|
417.6
|
497.0
|
||||||||
Net income attributable to noncontrolling interests
|
32.7
|
91.5
|
380.6
|
456.3
|
||||||||
Net income (loss) attributable to common stockholders
|
$3.6
|
$9.1
|
$37.0
|
$40.7
|
||||||||
Earnings (loss) per share:
|
||||||||||||
Basic
|
$0.07
|
$0.19
|
$0.74
|
$0.89
|
||||||||
Diluted
|
$0.07
|
$0.19
|
$0.73
|
$0.89
|
||||||||
Weighted average common shares outstanding:
|
||||||||||||
Basic
|
52,517,259
|
47,489,141
|
49,742,428
|
46,814,676
|
||||||||
Diluted
|
53,729,140
|
47,680,329
|
50,924,736
|
47,070,522
|
||||||||
Comprehensive income:
|
||||||||||||
Net income (loss) attributable to common stockholders
|
$3.6
|
$9.1
|
$37.0
|
$40.7
|
||||||||
Other comprehensive income:
|
||||||||||||
Cumulative translation adjustment, before income taxes
|
0.8
|
0.9
|
(3.2
|
) |
2.2
|
|||||||
Income taxes related to items of other comprehensive income
|
(0.2
|
) |
(9.6
|
) |
(0.5
|
) |
(9.1
|
) | ||||
Other comprehensive income (loss), net of tax
|
1.0
|
10.5
|
(2.7
|
) |
11.3
|
|||||||
Comprehensive income (loss) attributable to common stockholders
|
$4.6
|
$19.6
|
$34.3
|
$52.0
|
||||||||
Comprehensive income attributable to noncontrolling interests:
|
||||||||||||
Net income attributable to noncontrolling interests
|
32.7
|
$91.5
|
$380.6
|
$456.3
|
||||||||
Other comprehensive income (loss) - cumulative translation adjustment
|
4.9
|
7.1
|
(24.7
|
) |
17.0
|
|||||||
Comprehensive income attributable to noncontrolling interests
|
$37.6
|
$98.6
|
$355.9
|
$473.3
|
December 31,
|
December 31,
|
||
2013
|
2012
|
||
(in millions)
|
|||
Assets
|
|||
Cash and cash equivalents
|
$1,909.0
|
$1,614.6
|
|
Cash and securities - segregated for regulatory purposes
|
13,296.0
|
12,482.4
|
|
Securities purchased under agreements to resell
|
386.3
|
428.9
|
|
Securities borrowed
|
2,751.5
|
2,833.1
|
|
Trading assets, at fair value
|
4,448.8
|
4,544.7
|
|
Receivables from customers, net of allowance
|
13,596.7
|
9,851.0
|
|
Receivables from brokers, dealers and clearing organizations
|
858.2
|
844.6
|
|
Other assets
|
624.2
|
600.3
|
|
Total assets
|
$37,870.7
|
$33,199.6
|
|
Liabilities and equity
|
|||
Liabilities
|
|||
Trading liabilities - financial instruments sold but not yet purchased, at fair value
|
$3,153.7
|
$4,286.3
|
|
Securities loaned
|
2,563.7
|
1,839.3
|
|
Short-term borrowings
|
24.6
|
110.4
|
|
Other payables:
|
|||
Customers
|
26,319.4
|
21,422.0
|
|
Brokers, dealers and clearing organizations
|
331.0
|
361.8
|
|
Other payables
|
386.2
|
366.7
|
|
27,036.6
|
22,150.5
|
||
Senior notes payable and senior secured credit facility
|
0.0
|
0.0
|
|
Equity
|
|||
Stockholders' equity
|
707.3
|
598.5
|
|
Noncontrolling interests
|
4,384.8
|
4,214.6
|
|
Total equity
|
5,092.1
|
4,813.1
|
|
Total liabilities and equity
|
$37,870.7
|
$33,199.6
|
Three Months
|
Twelve Months
|
||||||
Ended December 31,
|
Ended December 31,
|
||||||
2013
|
2012
|
2013
|
2012
|
||||
(in millions, except share and per share data)
|
|||||||
Comprehensive income attributable to common stockholders, net of tax
|
$4.6
|
$19.6
|
$34.3
|
$52.0
|
|||
Add (deduct) net income attributable to non-fair value redemption rights
|
0.0
|
0.0
|
0.0
|
1.1
|
|||
Comprehensive income available for common stockholders
|
$4.6
|
$19.6
|
$34.3
|
$53.1
|
|||
Comprehensive income (loss) per share:
|
|||||||
Basic
|
$0.09
|
$0.41
|
$0.69
|
$1.13
|
|||
Diluted
|
$0.09
|
$0.41
|
$0.67
|
$1.13
|
|||
Weighted average common shares outstanding:
|
|||||||
Basic
|
52,517,259
|
47,489,141
|
49,742,428
|
46,814,676
|
|||
Diluted
|
53,729,140
|
47,680,329
|
50,924,736
|
47,070,522
|