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 18, 2016.
|
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 18, 2016.
|
·
|
56% Electronic Brokerage pretax profit margin for this quarter, down from 61% in the year-ago quarter.
|
·
|
16% Market Making pretax profit margin for this quarter, down from 51% in the year-ago quarter.
|
·
|
Customer equity grew 33% from the year-ago quarter to $82.7 billion and customer debits increased 15% to $18.1 billion.
|
·
|
Customer accounts increased 15% from the year-ago quarter to 370 thousand.
|
·
|
Total DARTs decreased 11% from the year-ago quarter to 609 thousand.
|
·
|
Brokerage segment equity was $3.9 billion. Total equity was $5.9 billion.
|
Brokerage
|
|
|||||||||||||||||
Market
|
Brokerage
|
|
Non
|
Avg. Trades
|
||||||||||||||
Making
|
%
|
Cleared
|
%
|
Cleared
|
%
|
Total
|
%
|
per U.S.
|
||||||||||
Period
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trading Day
|
|||||||||
2013
|
65,320
|
173,849
|
18,489
|
257,658
|
1,029
|
|||||||||||||
2014
|
64,530
|
-1%
|
206,759
|
19%
|
18,055
|
-2%
|
289,344
|
12%
|
1,155
|
|||||||||
2015
|
65,937
|
2%
|
242,846
|
17%
|
18,769
|
4%
|
327,553
|
13%
|
1,305
|
|||||||||
3Q2015 |
|
18,696
|
65,333
|
5,266
|
89,295
|
1,395
|
||||||||||||
3Q2016 |
|
15,474
|
-17%
|
61,181
|
-6%
|
3,736
|
-29%
|
80,391
|
-10%
|
1,256
|
||||||||
2Q2016 |
|
16,056
|
64,531
|
4,114
|
84,701
|
1,323
|
||||||||||||
3Q2016
|
|
15,474
|
-4%
|
61,181
|
-5%
|
3,736
|
-9%
|
80,391
|
-5%
|
1,256
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
|||||||
Period
|
(contracts)
|
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|||||
2013
|
659,673
|
121,776
|
95,479,739
|
|||||||||
2014
|
631,265
|
-4%
|
123,048
|
1%
|
153,613,174
|
61%
|
||||||
2015
|
634,388
|
0%
|
140,668
|
14%
|
172,742,520
|
12%
|
||||||
3Q2015
|
179,786
|
38,960
|
41,999,917
|
|||||||||
3Q2016
|
138,767
|
-23%
|
32,521
|
-17%
|
38,515,753
|
-8%
|
||||||
2Q2016
|
140,461
|
35,355
|
36,768,094
|
|||||||||
3Q2016
|
138,767
|
-1%
|
32,521
|
-8%
|
38,515,753
|
5%
|
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
|||||
2013
|
404,490
|
18,184
|
12,849,729
|
|||||||||
2014
|
344,741
|
-15%
|
15,668
|
-14%
|
12,025,822
|
-6%
|
||||||
2015
|
335,406
|
-3%
|
14,975
|
-4%
|
15,376,076
|
28%
|
||||||
3Q2015
|
95,754
|
3,868
|
4,458,343
|
|||||||||
3Q2016
|
74,966
|
-22%
|
3,338
|
-14%
|
2,874,332
|
-36%
|
||||||
2Q2016
|
76,223
|
3,042
|
3,340,316
|
|||||||||
3Q2016
|
74,966
|
-2%
|
3,338
|
10%
|
2,874,332
|
-14%
|
||||||
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
|
Change
|
(contracts)
|
|
Change
|
(shares)
|
Change
|
||||
2013
|
255,183
|
103,592
|
82,630,010
|
|||||||||
2014
|
286,524
|
12%
|
107,380
|
4%
|
141,587,352
|
71%
|
||||||
2015
|
298,982
|
4%
|
125,693
|
17%
|
157,366,444
|
11%
|
||||||
3Q2015
|
84,032
|
35,092
|
37,541,574
|
|||||||||
3Q2016
|
63,801
|
-24%
|
29,183
|
-17%
|
35,641,421
|
-5%
|
||||||
2Q2016
|
64,238
|
32,313
|
33,427,778
|
|||||||||
3Q2016
|
63,801
|
-1%
|
29,183
|
-10%
|
35,641,421
|
7%
|
||||||
|
Options
|
%
|
Futures*
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
|
Change
|
(shares)
|
Change
|
|||||
2013
|
180,660
|
101,732
|
78,829,785
|
|||||||||
2014
|
225,662
|
25%
|
106,074
|
4%
|
137,153,132
|
74%
|
||||||
2015
|
244,356
|
8%
|
124,206
|
17%
|
153,443,988
|
12%
|
||||||
3Q2015
|
|
68,018
|
34,635
|
36,475,917
|
||||||||
3Q2016
|
|
55,579
|
-18%
|
28,986
|
-16%
|
34,817,202
|
-5%
|
|||||
2Q2016
|
|
53,951
|
32,037
|
32,491,500
|
||||||||
3Q2016
|
|
55,579
|
3%
|
28,986
|
-10%
|
34,817,202
|
7%
|
Year over Year
|
3Q2016
|
3Q2015
|
% Change
|
||||
Total Accounts
|
370
|
322
|
15%
|
||||
Customer Equity (in billions) *
|
$
|
82.7
|
$
|
62.1
|
33%
|
||
Cleared DARTs
|
564
|
620
|
-9%
|
||||
Total Customer DARTs
|
609
|
683
|
-11%
|
||||
Cleared Customers (in $'s, except DART per account)
|
|||||||
Commission per DART
|
$
|
3.91
|
$
|
4.10
|
-5%
|
||
DART per Avg. Account (Annualized)
|
390
|
493
|
-21%
|
||||
Net Revenue per Avg. Account (Annualized)**
|
$
|
3,191
|
$
|
3,584
|
-11%
|
||
Consecutive Quarters
|
3Q2016
|
2Q2016
|
% Change
|
||||
Total Accounts
|
370
|
357
|
4%
|
||||
Customer Equity (in billions) *
|
$
|
82.7
|
$
|
73.7
|
12%
|
||
Cleared DARTs
|
564
|
597
|
-6%
|
||||
Total Customer DARTs
|
609
|
648
|
-6%
|
||||
Cleared Customers (in $'s, except DART per account)
|
|||||||
Commission per DART
|
$
|
3.91
|
$
|
3.91
|
0%
|
||
DART per Avg. Account (Annualized)
|
390
|
428
|
-9%
|
||||
Net Revenue per Avg. Account (Annualized)**
|
$
|
3,191
|
$
|
3,256
|
-2%
|
Three Months | Nine Months | ||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(in millions) | |||||||||||||
Electronic Brokerage
|
Net revenues
|
$
|
288
|
$
|
300
|
$
|
945
|
$
|
878
|
||||
Non-interest expenses
|
126
|
116
|
357
|
455
|
|||||||||
Income before income taxes
|
$
|
162
|
$
|
184
|
$
|
588
|
$
|
423
|
|||||
Pre-tax profit margin
|
56%
|
61%
|
62%
|
48%
|
|||||||||
Market Making
|
Net revenues
|
$
|
43
|
$
|
90
|
$
|
145
|
$
|
229
|
||||
Non-interest expenses
|
36
|
44
|
113
|
126
|
|||||||||
Income before income taxes
|
$
|
7
|
$
|
46
|
$
|
32
|
$
|
103
|
|||||
Pre-tax profit margin
|
16%
|
51%
|
22%
|
45%
|
|||||||||
Corporate (1)
|
Net revenues
|
$
|
14
|
$
|
(31)
|
$
|
113
|
$
|
(189)
|
||||
Non-interest expenses
|
-
|
(3)
|
-
|
6
|
|||||||||
Income (loss) before income taxes
|
$
|
14
|
$
|
(28)
|
$
|
113
|
$
|
(195)
|
|||||
Total
|
Net revenues
|
$
|
345
|
$
|
359
|
$
|
1,203
|
$
|
918
|
||||
Non-interest expenses
|
162
|
157
|
470
|
587
|
|||||||||
Income before income taxes
|
$
|
183
|
$
|
202
|
$
|
733
|
$
|
331
|
|||||
Pre-tax profit margin
|
53%
|
56%
|
61%
|
36%
|
Three Months | Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||
(in millions, except share and per share data) | ||||||||||||||
Revenues:
|
||||||||||||||
Trading gains
|
$
|
38
|
$
|
87
|
$
|
124
|
$
|
216
|
||||||
Commissions and execution fees
|
144
|
167
|
462
|
473
|
||||||||||
Interest income
|
157
|
122
|
446
|
356
|
||||||||||
Other income (loss)
|
27
|
(1)
|
228
|
(78)
|
||||||||||
Total revenues
|
366
|
375
|
1,260
|
967
|
||||||||||
Interest expense
|
21
|
16
|
57
|
49
|
||||||||||
Total net revenues
|
345
|
359
|
1,203
|
918
|
||||||||||
Non-interest expenses:
|
||||||||||||||
Execution and clearing
|
62
|
63
|
183
|
177
|
||||||||||
Employee compensation and benefits
|
58
|
56
|
174
|
171
|
||||||||||
Occupancy, depreciation and amortization
|
13
|
12
|
38
|
33
|
||||||||||
Communications
|
7
|
6
|
23
|
19
|
||||||||||
General and administrative
|
19
|
13
|
46
|
42
|
||||||||||
Customer bad debt
|
3
|
7
|
6
|
145
|
||||||||||
Total non-interest expenses
|
162
|
157
|
470
|
587
|
||||||||||
Income before income taxes
|
183
|
202
|
733
|
331
|
||||||||||
Income tax expense
|
15
|
20
|
55
|
37
|
||||||||||
Net income
|
168
|
182
|
678
|
294
|
||||||||||
Net income attributable to noncontrolling interests
|
148
|
160
|
598
|
262
|
||||||||||
Net income available for common stockholders
|
$
|
20
|
$
|
22
|
$
|
80
|
$
|
32
|
||||||
Earnings per share:
|
||||||||||||||
Basic
|
$
|
0.30
|
$
|
0.35
|
$
|
1.22
|
$
|
0.53
|
||||||
Diluted
|
$
|
0.30
|
$
|
0.35
|
$
|
1.20
|
$
|
0.52
|
||||||
Weighted average common shares outstanding:
|
||||||||||||||
Basic
|
67,083,654
|
62,458,655
|
65,351,842
|
60,152,525
|
||||||||||
Diluted
|
68,470,224
|
64,028,731
|
66,738,754
|
61,646,928
|
||||||||||
Comprehensive income:
|
||||||||||||||
Net income available for common stockholders
|
$
|
20
|
$
|
22
|
$
|
80
|
$
|
32
|
||||||
Other comprehensive income:
|
||||||||||||||
Cumulative translation adjustment, before income taxes
|
-
|
(8)
|
3
|
(5)
|
||||||||||
Income taxes related to items of other comprehensive income
|
|
-
|
-
|
-
|
-
|
|||||||||
Other comprehensive income (loss), net of tax
|
-
|
(8)
|
3
|
(5)
|
||||||||||
Comprehensive income available for common stockholders
|
$
|
20
|
$
|
14
|
$
|
83
|
$
|
27
|
||||||
Comprehensive income attributable to noncontrolling interests:
|
||||||||||||||
Net income attributable to noncontrolling interests
|
$
|
148
|
$
|
160
|
$
|
598
|
$
|
262
|
||||||
Other comprehensive income (loss) - cumulative translation adjustment |
|
2
|
(44)
|
19
|
(29)
|
|||||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
150
|
$
|
116
|
$
|
617
|
$
|
233
|
||||||
September 30,
2016
|
|
December 31,
2015
|
||||||||
(in millions) | ||||||||||
Assets
|
||||||||||
Cash and cash equivalents
|
$
|
1,550
|
$
|
1,601
|
||||||
Cash and securities - segregated for regulatory purposes
|
25,250
|
21,309
|
||||||||
Securities borrowed
|
4,785
|
3,924
|
||||||||
Securities purchased under agreements to resell
|
148
|
195
|
||||||||
Financial instruments owned, at fair value
|
3,823
|
3,420
|
||||||||
Receivables from customers, net of allowance for doubtful accounts
|
18,223
|
17,050
|
||||||||
Receivables from brokers, dealers and clearing organizations
|
764
|
692
|
||||||||
Other assets
|
521
|
543
|
||||||||
Total assets
|
$
|
55,064
|
$
|
48,734
|
||||||
Liabilities and equity
|
||||||||||
Liabilities
|
||||||||||
Short-term borrowings
|
$
|
24
|
$
|
-
|
||||||
Securities loaned
|
3,617
|
2,894
|
||||||||
Financial instruments sold but not yet purchased, at fair value
|
2,459
|
2,617
|
||||||||
Other payables:
|
||||||||||
Customers
|
42,486
|
37,084
|
||||||||
Brokers, dealers and clearing organizations
|
210
|
423
|
||||||||
Other payables
|
398
|
372
|
||||||||
43,094
|
37,879
|
|||||||||
Total liabilities
|
49,194
|
43,390
|
||||||||
Equity
|
||||||||||
Stockholders' equity
|
981
|
863
|
||||||||
Noncontrolling interests
|
4,889
|
4,481
|
||||||||
Total equity
|
5,870
|
5,344
|
||||||||
Total liabilities and equity
|
$
|
55,064
|
$
|
48,734
|
||||||
September 30, 2016
|
December 31, 2015
|
|||||||||
Ownership of IBG LLC Membership Interests
|
Interests
|
%
|
Interests
|
%
|
||||||
IBG, Inc.
|
67,987,957
|
16.6%
|
63,991,705
|
15.7%
|
||||||
Noncontrolling interests (IBG Holdings LLC)
|
341,444,304
|
83.4%
|
343,040,504
|
84.3%
|
||||||
Total IBG LLC membership interests
|
409,432,261
|
100.0%
|
407,032,209
|
100.0%
|
||||||
Three Months | Nine Months | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||
(in millions, except share and per share data) | ||||||||||||||
Comprehensive income available for common stockholders, net of tax
|
$
|
20
|
$
|
14
|
$
|
83
|
$
|
27
|
||||||
Comprehensive earnings per share:
|
||||||||||||||
Basic
|
$
|
0.31
|
$
|
0.23
|
$
|
1.27
|
$
|
0.45
|
||||||
Diluted
|
$
|
0.30
|
$
|
0.23
|
$
|
1.25
|
$
|
0.44
|
||||||
Weighted average common shares outstanding:
|
||||||||||||||
Basic
|
67,083,654
|
62,458,655
|
65,351,842
|
60,152,525
|
||||||||||
Diluted
|
68,470,224
|
64,028,731
|
66,738,754
|
61,646,928
|