Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for December 2022, includes Reg.-NMS Execution Statistics
January 03 2023 - 12:35PM
Business Wire
Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated
global electronic broker, today reported its Electronic Brokerage
monthly performance metrics for December.
Brokerage highlights for the month included:
- 1.751 million Daily Average Revenue Trades (DARTs)1, 21% lower
than prior year and 10% lower than prior month.
- Ending client equity of $306.7 billion, 18% lower than prior
year and 3% lower than prior month.
- Ending client margin loan balances of $38.9 billion, 29% lower
than prior year and 1% lower than prior month.
- Ending client credit balances of $95.2 billion, including $2.4
billion in insured bank deposit sweeps2, 9% higher than prior year
and 1% lower than prior month.
- 2.09 million client accounts, 25% higher than prior year and 1%
higher than prior month.
- 189 annualized average cleared DARTs1 per client account.
- Average commission per cleared Commissionable Order3 of $3.17
including exchange, clearing and regulatory fees. Key
products:
December 2022 Average Average Commission per
Order Size Cleared Commissionable Order Stocks 1,380
shares
$2.23
Equity Options 7.0 contracts
$4.53
Futures 3.0 contracts
$3.87
Futures include options on futures. We estimate exchange,
clearing and regulatory fees to be 56% of the futures
commissions.
Other financial information for Interactive Brokers
Group:
- Mark to market on U.S. government securities portfolio4 was a
loss of $0.6 million for the quarter, and a loss of $44.4 million
for the year ended December 31st.
- GLOBAL5: The value of the GLOBAL, reported in U.S. dollars,
increased by 0.51% in December and decreased by 1.85% for the year
ended December 31st
In the interest of transparency, we quantify our IBKR PRO
clients’ all-in cost of trade execution below.
For the full multimedia release with graph see link:
https://www.interactivebrokers.com/MonthlyMetrics
- Average U.S. Reg-NMS stock trade was $20,078 in December
(dividing 2c by 1a in table below)
- In December, IBKR PRO clients’ total cost of executing and
clearing U.S. Reg.-NMS stocks through IB was about 1.6 basis points
of trade money6, as measured against a daily VWAP7 benchmark (2.4
basis points net cost for the rolling twelve months).
IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except % Previous
Jan '22 Feb '22 Mar
'22 Apr '22
May '22 Jun '22 Jul
'22 Aug '22
Sep '22 Oct '22 Nov
'22 Dec '22
12 Months #1a - Number of
orders Buys
9.96
8.74
9.84
8.10
8.30
6.78
5.66
7.28
6.29
6.26
6.10
5.76
89.07
Sells
7.14
6.22
7.24
5.47
5.96
5.20
4.43
5.72
4.60
4.77
4.76
4.23
65.74
Total
17.10
14.96
17.08
13.57
14.26
11.98
10.09
13.00
10.89
11.03
10.86
9.99
154.81
#1b - Number of shares purchased or sold Shares
bought
3,012
2,699
4,104
2,855
3,097
2,983
2,554
3,123
2,625
2,726
2,803
2,704
35,286
Shares sold
2,994
2,653
4,044
2,738
3,055
2,884
2,447
3,031
2,532
2,632
2,681
2,522
34,213
Total
6,006
5,353
8,147
5,592
6,152
5,867
5,001
6,154
5,157
5,358
5,484
5,226
69,499
#2 - Trade money including price, commissions and
fees 2a Buy money
$155,559
$145,013
$159,411
$130,359
$142,460
$123,938
$107,963
$121,655
$111,851
$117,260
$116,590
$99,937
$1,531,994
2b Sell money
$157,885
$143,868
$159,805
$129,809
$144,641
$125,425
$106,681
$122,556
$112,867
$117,092
$115,319
$100,639
$1,536,587
2c Total
$313,444
$288,881
$319,215
$260,168
$287,101
$249,362
$214,644
$244,211
$224,718
$234,352
$231,909
$200,576
$3,068,581
#3 - Trade value at Daily VWAP 3a Buy value
$155,495
$144,989
$159,394
$130,287
$142,417
$123,875
$107,993
$121,639
$111,806
$117,318
$116,603
$99,874
$1,531,691
3b Sell value
$157,966
$143,913
$159,861
$129,793
$144,686
$125,409
$106,747
$122,590
$112,874
$117,179
$115,399
$100,608
$1,537,025
3c Total
$313,461
$288,902
$319,255
$260,080
$287,103
$249,284
$214,740
$244,229
$224,680
$234,497
$232,003
$200,481
$3,068,716
#4 - Total trade expense, including commissions and fees,
relative to Daily VWAP 4a Buys (2a-3a)
$63.9
$23.7
$16.4
$71.5
$42.8
$62.8
($30.1)
$15.6
$44.4
($58.5)
($13.5)
$63.6
$302.4
4b Sells (3b-2b)
$81.1
$44.8
$56.3
($16.3)
$44.9
($15.7)
$66.0
$33.5
$6.8
$86.8
$80.4
($31.3)
$437.3
4c Total trade expense
$145.0
$68.5
$72.7
$55.2
$87.7
$47.1
$35.9
$49.1
$51.2
$28.3
$66.9
$32.3
$739.7
Trade expense as percentage of trade money
4c/2c
0.046%
0.024%
0.023%
0.021%
0.031%
0.019%
0.017%
0.020%
0.023%
0.012%
0.029%
0.016%
0.024%
#5 - Trade expense categories 5a Total commissions
& fees
$26.6
$24.2
$32.9
$24.0
$28.2
$27.3
$23.2
$28.7
$24.5
$25.3
$25.6
$23.8
$314.3
5b Execution cost (4c-5a)
$118.3
$44.3
$39.8
$31.2
$59.4
$19.8
$12.7
$20.4
$26.7
$3.0
$41.2
$8.5
$425.3
#6 - Trade expense categories as percentage of trade
money Total commissions & fees (5a/2c)
0.008%
0.008%
0.010%
0.009%
0.010%
0.011%
0.011%
0.012%
0.011%
0.011%
0.011%
0.012%
0.010%
Execution cost (5b/2c)
0.038%
0.016%
0.013%
0.012%
0.021%
0.008%
0.006%
0.008%
0.012%
0.001%
0.018%
0.004%
0.014%
Net Expense to IB Clients
0.046%
0.024%
0.023%
0.021%
0.031%
0.019%
0.017%
0.020%
0.023%
0.012%
0.029%
0.016%
0.024%
The above illustrates that the rolling twelve months’ average
all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 2.4
basis points.
Note 1: Daily Average Revenue Trades (DARTs) – customer
orders divided by the number of trading days in the period.
Note 2: FDIC insured client bank deposit sweep program
balances with participating banks. These deposits are not reported
in the Company’s statement of financial condition.
Note 3: Commissionable Order – a customer order that
generates commissions.
Note 4: Mark to market gains and losses on investments in
U.S. government securities and associated hedges are included in
Other Income. In the general course of business, we hold these
investments to maturity. As a result, accumulated mark to market
gains or losses should converge to zero at maturity. Accounting
conventions require broker-dealers, unlike banks, to mark all
investments to market.
Note 5: In connection with our currency diversification
strategy, we have determined to base our net worth in GLOBALs, a
basket of 10 major currencies in which we hold our equity. The
total effect of the currency diversification strategy is reported
in Comprehensive Income and the components are reported in (1)
Other Income and (2) Other Comprehensive Income (“OCI”) on the
balance sheet. The effect of the GLOBAL on our comprehensive income
can be estimated by multiplying the total equity for the period by
the change in the U.S. dollar value of the GLOBAL during the same
period.
Note 6: Trade money is the total amount of money clients
spent or received, including all commissions and fees.
Note 7: Consistent with the clients’ trading activity,
the computed VWAP benchmark includes extended trading hours.
_________________
More information, including historical results for each of the
above metrics, can be found on the investor relations page of the
Company’s corporate web site, www.interactivebrokers.com/ir.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade
execution and custody of securities, commodities and foreign
exchange around the clock on over 150 markets in numerous countries
and currencies, from a single integrated platform to clients
worldwide. We service individual investors, hedge funds,
proprietary trading groups, financial advisors and introducing
brokers. Our four decades of focus on technology and automation has
enabled us to equip our clients with a uniquely sophisticated
platform to manage their investment portfolios. We strive to
provide our clients with advantageous execution prices and trading,
risk and portfolio management tools, research facilities and
investment products, all at low or no cost, positioning them to
achieve superior returns on investments. For the fifth consecutive
year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars
in its March 25, 2022, Best Online Brokers Review.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230103005677/en/
Contacts for Interactive Brokers Group, Inc.: Rob
Garfield - media@ibkr.com.
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