Benzinga | Jan 3, 2022 12:11PM EST

Interactive Brokers Group Reports For Dec. 2021 2.229M Daily Average Revenue Trades

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:

* 2.229 million Daily Average Revenue Trades (DARTs)1, 3% lower than prior year and 20% lower than prior month.

* Ending client equity of $373.8 billion, 30% higher than prior year and about even with prior month.

* Ending client margin loan balances of $54.6 billion, 40% higher than prior year and about even with prior month.

* Ending client credit balances of $87.1 billion, including $2.2 billion in insured bank deposit sweeps2, 12% higher than prior year and about even with prior month.

* 1.68 million client accounts, 56% higher than prior year and 2% higher than prior month.

* 299 annualized average cleared DARTs1 per client account.

* Average commission per cleared Commissionable Order3 of $2.37 including exchange, clearing and regulatory fees. Key products:

December 2021 Average Commission per Average

Cleared Commissionable Order Order Size

Stocks $1.68 1,349 shares

Equity Options $3.14 6.4 contracts

Futures $4.15 3.0 contracts

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 55% of the futures commissions.

Other financial information for Interactive Brokers Group:

* Mark to market on U.S. government securities portfolio4 was a gain of $0.4 million for the quarter, and a gain of $0.1 million for the year ended December 31st.

* GLOBAL5: The value of the GLOBAL, reported in U.S. dollars, increased by 0.08% in December and decreased by 1.31% 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

* In December, IBKR PRO clients' total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 4.8 basis points of trade money6, as measured against a daily VWAP7 benchmark (3.8 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 '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 July '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 12 Months#1a - Number of orders Buys 15.46 18.42 16.82 10.52 10.04 12.60 10.98 9.98 9.55 9.52 11.57 9.36 144.82

Sells 11.33 13.19 12.34 7.67 7.50 10.00 8.10 7.61 6.99 7.08 8.52 6.71 107.04

Total 26.79 31.61 29.16 18.19 17.54 22.60 19.08 17.59 16.54 16.60 20.09 16.07 251.86

#1b - Number of shares purchased or sold Shares 5,907 6,417 5,327 3,267 3,325 4,261 3,785 3,263 3,412 3,595 3,764 3,169 49,494 boughtShares sold 5,488 6,052 5,163 3,072 3,265 4,157 3,608 3,202 3,300 3,390 3,667 3,074 47,438

Total 11,395 12,469 10,491 6,339 6,590 8,418 7,393 6,465 6,713 6,984 7,432 6,243 96,931

#2 - Trade money including price, commissions and fees 2a Buy $161,779 $171,280 $189,334 $129,198 $128,083 $140,218 $135,106 $127,454 $125,954 $133,647 $160,251 $141,591 $1,743,894 money2b Sell $156,739 $167,064 $185,529 $124,045 $125,904 $139,592 $133,527 $125,694 $124,808 $128,438 $158,604 $140,613 $1,710,558 money2c Total $318,518 $338,344 $374,863 $253,243 $253,987 $279,810 $268,633 $253,148 $250,762 $262,085 $318,855 $282,204 $3,454,452

#3 - Trade value at Daily VWAP 3a Buy $161,613 $171,092 $189,194 $129,131 $128,053 $140,148 $135,050 $127,439 $125,905 $133,631 $160,132 $141,498 $1,742,885 value3b Sell $156,683 $167,032 $185,588 $124,030 $125,969 $139,648 $133,552 $125,747 $124,841 $128,515 $158,616 $140,656 $1,710,875 value3c Total $318,296 $338,124 $374,782 $253,160 $254,022 $279,795 $268,602 $253,186 $250,746 $262,146 $318,747 $282,153 $3,453,760

#4 - Total trade expense, including commissions and fees, relative to Daily VWAP4a Buys $166.5 $187.9 $139.3 $67.1 $29.2 $69.9 $56.2 $15.1 $48.4 $15.8 $119.9 $93.8 $1,008.9 (2a-3a)4b Sells ($55.7 ) ($32.5 ) $58.6 ($15.9 ) $64.1 $55.7 $25.0 $52.8 $32.4 $76.9 $11.9 $43.0 $316.3 (3b-2b)4c Total $110.8 $155.5 $197.8 $51.2 $93.3 $125.6 $81.2 $67.9 $80.8 $92.7 $131.8 $136.7 $1,325.3 trade expense Trade expense as percentage of trade money 4c/2c 0.035 % 0.046 % 0.053 % 0.020 % 0.037 % 0.045 % 0.030 % 0.027 % 0.032 % 0.035 % 0.041 % 0.048 % 0.038 %

#5 - Trade expense categories 5a Total $45.8 $49.1 $41.4 $26.2 $27.0 $33.5 $28.7 $26.1 $27.1 $27.8 $31.4 $26.0 $390.1 commissions & fees5bExecution $64.9 $106.4 $156.4 $25.0 $66.4 $92.1 $52.5 $41.8 $53.7 $64.9 $100.5 $110.8 $935.4 cost(4c-5a) #6 - Trade expense categories as percentage of trade money Totalcommissions 0.015 % 0.015 % 0.011 % 0.010 % 0.011 % 0.012 % 0.010 % 0.010 % 0.011 % 0.010 % 0.009 % 0.009 % 0.011 %& fees (5a/2c)Execution 0.020 % 0.031 % 0.042 % 0.010 % 0.026 % 0.033 % 0.020 % 0.017 % 0.021 % 0.025 % 0.032 % 0.039 % 0.027 %cost (5b/ 2c)Net Expense 0.035 % 0.046 % 0.053 % 0.020 % 0.037 % 0.045 % 0.030 % 0.027 % 0.032 % 0.035 % 0.041 % 0.048 % 0.038 %to IB Clients

The above illustrates that the rolling twelve months' average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.8 basis points.

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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.