8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):  October 20, 2015

INTERACTIVE BROKERS GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-33440	30-0390693
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

One Pickwick Plaza, Greenwich, CT 06830

(Address of Principal Executive Offices) (Zip Code)

(203) 618-5800

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  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))

Item 2.02. Results of Operations and Financial Condition.

On October 20, 2015, the Registrant issued a press release reporting its financial results for the third quarter ended September 30, 2015.  A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

All of the information furnished in this report (including Exhibit 99.1 hereto) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and unless expressly set forth by specific reference in such filings, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 8.02. Other Events.

On October 20, 2015, Interactive Brokers Group, Inc. (the “Company”) declared a quarterly cash dividend of $0.10 per share on the Company’s common stock.  The Company’s Board of Directors has declared that the dividend will be paid on December 14, 2015 to shareholders of record as of December 1, 2015.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits.
99.1	Press Release dated October 20, 2015.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 20, 2015

INTERACTIVE BROKERS GROUP, INC.
By:	/s/ Paul J. Brody
Name:	Paul J. Brody
Title:	Chief Financial Officer, Treasurer and Secretary

EXHIBIT INDEX

99.1 Press Release dated October 20, 2015.

EX-99.1

Exhibit 99.1

INTERACTIVE BROKERS GROUP ANNOUNCES 3Q2015 RESULTS

— — —

REPORTS COMPREHENSIVE EARNINGS PER SHARE OF $0.23,

INCOME BEFORE TAXES OF $202 MILLION ON $359 MILLION IN NET REVENUES,

AND EARNINGS PER SHARE ON NET INCOME OF $0.35.

DECLARES QUARTERLY DIVIDEND OF $0.10 PER SHARE.

GREENWICH, CONN, October 20, 2015 — Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.23 for the quarter ended September 30, 2015, compared to a diluted loss per share on a comprehensive basis of $0.13 for the same period in 2014.

Excluding other comprehensive income, the Company reported diluted earnings per share of $0.35 for the quarter ended September 30, 2015, compared to diluted earnings per share of $0.05 for the same period in 2014.

Net revenues were $359 million and income before income taxes was $202 million this quarter, compared to net revenues of $171 million and income before income taxes of $40 million for the same period in 2014.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share.  This dividend is payable on December 14, 2015 to shareholders of record as of December 1, 2015.

Business Highlights

· 61% Electronic Brokerage pretax profit margin for this quarter, down from 63% in the year-ago quarter.

· 51% Market Making pretax profit margin for this quarter, up from 14% in the year-ago quarter.

· Customer equity grew 13% from the year-ago quarter to $62.1 billion while customer debits decreased by 9% to $15.8 billion.

· Customer accounts increased 18% from the year-ago quarter to 322 thousand.

· Total DARTs increased 28% from the year-ago quarter to 683 thousand.

· Brokerage segment equity was $3.4 billion. Total equity was $5.3 billion.

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Segment Overview

Electronic Brokerage

Electronic Brokerage segment income before income taxes increased 19%, to $184 million, in the quarter ended September 30, 2015 compared to the same period last year, due to higher commissions revenue and net interest income.  Customer accounts grew 18% to 322 thousand and customer equity increased 13% to $62.1 billion from the year-ago quarter.

Commissions and execution fees increased 26% from the year-ago quarter, to $168 million.  Net interest income grew 11% from the year-ago quarter, to $102 million.  Pretax profit margin was 61% in quarter ended September 30, 2015, down from 63% in same period last year.

Total DARTs(1) for cleared and execution-only customers increased 28% from the year-ago quarter to 683 thousand.  Cleared DARTs were 620 thousand, 28% higher than the same period last year.

Market Making

Market Making segment income before income taxes increased 557%, to $46 million, in the quarter ended September 30, 2015 compared to the same period last year, driven by higher volatility and active trading in the late-August period.  Pretax profit margin increased to 51% in the current quarter from 14% in same period last year.

Effects of Foreign Currency Diversification

In connection with our currency strategy, we have determined to base our net worth in GLOBALs, a basket of 16 major currencies in which we hold our equity.  In this quarter, our currency diversification strategy decreased our comprehensive earnings by $76 million, as the U.S. dollar value of the GLOBAL decreased by approximately 1.5%.  The effects of the currency diversification strategy are reported as components of (1) Other Income in the Corporate segment and (2) Other Comprehensive Income (“OCI”).  As previously disclosed, certain reclassifications have been made to previously reported amounts to conform to the current presentation of currency translation gains and losses related to our currency diversification strategy.

 (1)           Daily average revenue trades (DARTs) are based on customer orders.

_____________________

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Conference Call Information:

Interactive Brokers Group will hold a conference call with investors today, October 20, 2015, at 4:30 p.m. ET to discuss its quarterly results.  Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call.  Ask for the “Interactive Brokers Conference Call.”

The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc., together with its subsidiaries, is an automated global electronic broker that specializes in catering to financial professionals by offering state-of-the-art trading technology, superior execution capabilities, worldwide electronic access, and sophisticated risk management tools at exceptionally low costs.  The brokerage trading platform utilizes the same innovative technology as the Company’s market making business, which specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds and funds on more than 100 electronic exchanges and trading venues around the world.  As a market maker, we provide liquidity at these marketplaces and, as a broker, we provide professional traders and investors with electronic access to stocks, options, futures, forex, bonds and mutual funds from a single IB Universal AccountSM.  Employing proprietary software on a global communications network, Interactive Brokers is continuously integrating its software with a growing number of exchanges and trading venues into one automatically functioning, computerized platform that requires minimal human intervention.

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.

For Interactive Brokers Group, Inc. Media: Caitlin Duffy, 203-913-1369 or Investors: Patrick Brennan, 203-618-4070.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

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
2012	60,421		150,000		16,118		226,540		904
2013	65,320	8%	173,849	16%	18,489	15%	257,658	14%	1,029
2014	64,530	-1%	206,759	19%	18,055	-2%	289,344	12%	1,155
3Q2014	17,864		49,636		4,282		71,782		1,130
3Q2015	18,696	5%	65,333	32%	5,266	23%	89,295	24%	1,395
2Q2015	14,852		58,458		4,060		77,370		1,228
3Q2015	18,696	26%	65,333	12%	5,266	30%	89,295	15%	1,395

CONTRACT AND SHARE VOLUMES:

(in 000's, except %)

TOTAL

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	698,140		98,801		65,872,960
2013	659,673	-6%	121,776	23%	95,479,739	45%
2014	631,265	-4%	123,048	1%	153,613,174	61%
3Q2014	151,768		29,352		36,040,255
3Q2015	179,786	18%	38,960	33%	41,999,917	17%
2Q2015	144,188		34,661		60,255,458
3Q2015	179,786	25%	38,960	12%	41,999,917	-30%

MARKET MAKING

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	457,384		12,660		9,339,465
2013	404,490	-12%	18,184	44%	12,849,729	38%
2014	344,741	-15%	15,668	-14%	12,025,822	-6%
3Q2014	81,395		3,542		3,137,329
3Q2015	95,754	18%	3,868	9%	4,458,343	42%
2Q2015	74,533		3,652		4,270,738
3Q2015	95,754	28%	3,868	6%	4,458,343	4%

BROKERAGE TOTAL

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	240,756		86,141		56,533,495
2013	255,183	6%	103,592	20%	82,630,010	46%
2014	286,524	12%	107,380	4%	141,587,352	71%
3Q2014	70,373		25,810		32,902,926
3Q2015	84,032	19%	35,092	36%	37,541,574	14%
2Q2015	69,655		31,009		55,984,720
3Q2015	84,032	21%	35,092	13%	37,541,574	-33%

* Includes options on futures

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

BROKERAGE CLEARED

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	144,539		84,794		54,371,351
2013	180,660	25%	101,732	20%	78,829,785	45%
2014	225,662	25%	106,074	4%	137,153,132	74%
3Q2014	56,824		25,559		31,814,664
3Q2015	68,018	20%	34,635	36%	36,475,917	15%
2Q2015	57,867		30,717		55,144,248
3Q2015	68,018	18%	34,635	13%	36,475,917	-34%

* Includes options on futures

BROKERAGE STATISTICS

(in 000's, except % and where noted)

Year over Year	3Q2015		3Q2014		% Change
Total Accounts		322		272	18%
Customer Equity (in billions) *	$	62.1	$	54.9	13%
Cleared DARTs		620		485	28%
Total Customer DARTs		683		534	28%
Cleared Customers (in $'s, except DART per account)
Commission per DART	$	4.10	$	4.21	-3%
DART per Avg. Account (Annualized)		493		455	8%
Net Revenue per Avg. Account (Annualized)	$	3,652	$	3,532	3%
Consecutive Quarters	3Q2015		2Q2015		% Change
Total Accounts		322		310	4%
Customer Equity (in billions) *	$	62.1	$	66.0	-6%
Cleared DARTs		620		565	10%
Total Customer DARTs		683		616	11%
Cleared Customers (in $'s, except DART per account)
Commission per DART	$	4.10	$	4.31	-5%
DART per Avg. Account (Annualized)		493		469	5%
Net Revenue per Avg. Account (Annualized)	$	3,652	$	3,749	-3%

* Excludes non-customers.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

(UNAUDITED)

		Three Months				Nine Months
		Ended September 30,				Ended September 30,
		2015		2014		2015		2014
		(in millions)
Electronic Brokerage	Net revenues (1)	$	300	$	245	$	878	$	691
	Non-interest expenses		116		90		455		269
	Income before income taxes	$	184	$	155	$	423	$	422
	Pre-tax profit margin		61%		63%		48%		61%
Market Making	Net revenues (1)	$	90	$	49	$	229	$	231
	Non-interest expenses		44		42		126		132
	Income before income taxes	$	46	$	7	$	103	$	99
	Pre-tax profit margin		51%		14%		45%		43%
Corporate (2)	Net revenues (1)	$	(31)	$	(123)	$	(189)	$	(87)
	Non-interest expenses		(3)		(1)		6		2
	Income (loss) before income taxes	$	(28)	$	(122)	$	(195)	$	(89)
Total	Net revenues (1)	$	359	$	171	$	918	$	835
	Non-interest expenses		157		131		587		403
	Income before income taxes	$	202	$	40	$	331	$	432
	Pre-tax profit margin		56%		23%		36%		52%

(1)	To provide meaningful comparisons, all prior period amounts have been revised for the changes in presentation of currency translation classifications.
(2)	Corporate includes corporate related activities as well as inter-segment eliminations.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

				Three Months				Nine Months
				Ended September 30,				Ended September 30,
				2015		2014		2015		2014
				(in millions, except share and per share data)
Revenues:
	Trading gains  (1)		$	87	$	42	$	216	$	211
	Commissions and execution fees			167		133		473		394
	Interest income (1)			122		123		356		306
	Other income (loss) (1)			(1)		(102)		(78)		(25)
		Total revenues		375		196		967		886
	Interest expense			16		25		49		51
		Total net revenues		359		171		918		835
Non-interest expenses:
	Execution and clearing			63		52		177		158
	Employee compensation and benefits			56		49		171		156
	Occupancy, depreciation and amortization			12		9		33		29
	Communications			6		6		19		18
	General and administrative			13		14		42		40
	Customer bad debt			7		1		145		2
		Total non-interest expenses		157		131		587		403
Income before income taxes				202		40		331		432
Income tax expense				20		9		37		39
Net income				182		31		294		393
Net income attributable to noncontrolling interests				160		28		262		356
Net income available for common stockholders			$	22	$	3	$	32	$	37
Earnings per share :
	Basic		$	0.35	$	0.06	$	0.53	$	0.67
	Diluted		$	0.35	$	0.05	$	0.52	$	0.65
Weighted average common shares outstanding:
	Basic			62,458,655		57,099,052		60,152,525		55,956,615
	Diluted			64,028,731		58,220,070		61,646,928		57,196,113
Comprehensive income:
	Net income available for common stockholders		$	22	$	3	$	32	$	37
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes		(8)		(11)		(5)		(9)
		Income taxes related to items of other comprehensive income		-		-		-		-
	Other comprehensive income (loss), net of tax			(8)		(11)		(5)		(9)
Comprehensive income (loss) available for common stockholders			$	14	$	(8)	$	27	$	28
Comprehensive income attributable to noncontrolling interests:
Net income  attributable to noncontrolling interests			$	160	$	28	$	262	$	356
Other comprehensive income  - cumulative translation adjustment				(44)		(66)		(29)		(54)
Comprehensive income (loss) attributable to noncontrolling interests			$	116	$	(38)	$	233	$	302

(1) To provide meaningful comparisons, all prior period amounts have been revised for the changes in presentation of currency translation classifications.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

				September 30, 2015		December 31, 2014
				(in millions)
Assets
Cash and cash equivalents				$	1,588	$	1,269
Cash and securities - segregated for regulatory purposes					20,911		15,404
Securities borrowed					3,384		3,660
Securities purchased under agreements to resell					215		386
Trading assets, at fair value					3,840		3,934
Receivables from customers, net of allowance					15,879		17,051
Receivables from brokers, dealers and clearing organizations					859		1,131
Other assets					550		550
	Total assets			$	47,226	$	43,385
Liabilities and equity
Liabilities
Short-term borrowings				$	4	$	34
Securities loaned					2,724		3,199
Trading liabilities - financial instruments sold but not yet purchased, at fair value					3,052		2,561
Other payables:
	Customers				35,315		31,796
	Brokers, dealers and clearing organizations				454		234
	Other payables				395		377
					36,164		32,407
	Total liabilities				41,944		38,201
Equity
Stockholders' equity					841		766
Noncontrolling interests					4,441		4,418
	Total equity				5,282		5,184
	Total liabilities and equity			$	47,226	$	43,385
		September 30, 2015			December 31, 2014
Ownership of IBG LLC Membership Interests		Interests	%		Interests		%
IBG, Inc.		63,739,271	15.7%		58,473,186		14.5%
Noncontrolling interests (IBG Holdings LLC)		343,290,504	84.3%		346,062,282		85.5%
	Total IBG LLC membership interests	407,029,775	100.0%		404,535,468		100.0%

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

EARNINGS PER SHARE ON COMPREHENSIVE INCOME

(UNAUDITED)

			Three Months				Nine Months
			Ended September 30,				Ended September 30,
			2015		2014		2015		2014
			(in millions, except share and per share data)
Comprehensive income (loss) available for common stockholders, net of tax		$	14	$	(8)	$	27	$	28
Comprehensive income (loss) per share:
	Basic	$	0.23	$	(0.13)	$	0.45	$	0.51
	Diluted	$	0.23	$	(0.13)	$	0.44	$	0.50
Weighted average common shares outstanding:
	Basic		62,458,655		57,099,052		60,152,525		55,956,615
	Diluted		64,028,731		58,220,070		61,646,928		57,196,113

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