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Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for July 2018, Includes Reg.-NMS Execution Statistics

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Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global
electronic broker, today reported its Electronic Brokerage monthly
performance metrics for July.

Brokerage highlights for the month included:

  • 748 thousand Daily Average Revenue Trades (DARTs), 8% higher than
    prior year and 6% lower than prior month.
  • Ending client equity of $138.2 billion, 26% higher than prior year and
    3% higher than prior month.
  • Ending client margin loan balances of $28.2 billion, 19% higher than
    prior year and 2% lower than prior month.
  • Ending client credit balances of $46.9 billion, 1% higher than prior
    year and 1% lower than prior month.
  • 555 thousand client accounts, 27% higher than prior year and 2% higher
    than prior month.
  • 314 annualized average cleared DARTs per client account.
  • Average commission per cleared client order of $3.76 including
    exchange, clearing and regulatory fees. Key products:
July 2018     Average Commission per     Average
Cleared Client Order Order Size
Stocks $2.30 1,946 shares
Equity Options $5.18 7.6 contracts
Futures $6.29 3.5 contracts
 

Futures include options on futures. We estimate exchange, clearing and
regulatory fees to be 57% of the futures commissions.

Other financial information for Interactive Brokers Group:

  • GLOBAL1: The value of the GLOBAL, reported in U.S. dollars,
    was even with the prior month. Year to date, the value of the GLOBAL
    decreased 0.69%.

In the interest of transparency, we quantify our clients' all-in cost
of trade execution below.

For the full multimedia release with graph see link:

https://www.interactivebrokers.com/MonthlyMetrics

  • In July, clients' total cost of executing and clearing U.S. Reg.-NMS
    stocks through IB was a net rebate, 0.8 basis points of trade money2,
    as measured against a daily VWAP3 benchmark (0.9 basis
    points net cost for the rolling twelve months).
           
Interactive Brokers Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except %          
  Previous
Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18 12 Months
#1a - Number of orders
Buys 2.56 2.21 2.62 2.81 2.41 3.19 2.97 2.96 2.64 2.74 2.78 2.49 32.38
Sells 2.31     1.99     2.31     2.49     2.14     2.80     2.68     2.62     2.37     2.49     2.53     2.20   28.93  
Total 4.87 4.20 4.93 5.30 4.55 5.99 5.65 5.58 5.01 5.23 5.31 4.69 61.31
 
#1b - Number of shares purchased or sold
Shares bought 1,362 1,132 1,338 1,458 1,229 1,545 1,443 1,439 1,225 1,358 1,372 1,189 16,091
Shares sold 1,342     1,104     1,272     1,416     1,195     1,481     1,438     1,419     1,181     1,295     1,374     1,152   15,669  
Total 2,703 2,236 2,610 2,874 2,425 3,026 2,880 2,859 2,406 2,653 2,746 2,341 31,760
 
#2 - Trade money including price, commissions and fees
2a Buy money $52,861 $43,069 $48,216 $52,730 $44,598 $61,682 $70,697 $71,123 $60,343 $58,472 $58,612 $53,305 $675,708
2b Sell money $52,151     $41,959     $46,505     $51,090     $43,199     $59,149     $71,336     $70,972     $59,990     $56,843     $59,055     $52,347   $664,596  
2c Total $105,013 $85,027 $94,720 $103,821 $87,797 $120,831 $142,033 $142,095 $120,332 $115,316 $117,667 $105,652 $1,340,304
 
#3 - Trade value at Daily VWAP
3a Buy value $52,852 $43,060 $48,209 $52,717 $44,594 $61,672 $70,764 $71,101 $60,330 $58,477 $58,603 $53,329 $675,707
3b Sell value $52,157     $41,959     $46,517     $51,096     $43,209     $59,157     $71,379     $70,980     $59,975     $56,852     $59,069     $52,363   $664,712  
3c Total $105,009 $85,019 $94,726 $103,813 $87,803 $120,829 $142,143 $142,081 $120,304 $115,329 $117,672 $105,692 $1,340,419
 
#4 - Total trade expense, including commissions and fees,
relative to Daily VWAP
4a Buys (2a-3a) $9.1 $8.7 $6.6 $13.6 $3.9 $10.0 ($66.7 ) $22.7 $13.0 ($5.0 ) $8.7 ($24.0 ) $0.6
4b Sells (3b-2b) $5.5     $0.4     $12.2     $6.0     $9.5     $8.1     $43.1     $8.4     ($15.1 )   $8.8     $13.8     $15.5   $116.2  
4c Total trade expense $14.7 $9.1 $18.8 $19.6 $13.4 $18.1 ($23.6 ) $31.1 ($2.2 ) $3.8 $22.5 ($8.4 ) $116.9
 
Trade expense as percentage of trade money
4c/2c 0.014 % 0.011 % 0.020 % 0.019 % 0.015 % 0.015 % -0.017 % 0.022 % -0.002 % 0.003 % 0.019 % -0.008 % 0.009 %
 
#5 - Trade expense categories
5a Total commissions & fees $10.9 $9.3 $10.8 $11.8 $10.1 $12.8 $12.7 $12.4 $10.6 $11.4 $11.8 $10.2 $134.8
5b Execution cost (4c-5a) $3.7 ($0.2 ) $7.9 $7.8 $3.3 $5.3 ($36.4 ) $18.7 ($12.8 ) ($7.6 ) $10.8 ($18.6 ) ($18.1 )
 
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c) 0.010 % 0.011 % 0.011 % 0.011 % 0.012 % 0.011 % 0.009 % 0.009 % 0.009 % 0.010 % 0.010 % 0.010 % 0.010 %
Execution cost (5b/2c) 0.004 %   0.000 %   0.009 %   0.008 %   0.003 %   0.004 %   -0.026 %   0.013 %   -0.011 %   -0.007 %   0.009 %   -0.018 % -0.001 %
Net Expense to IB Clients 0.014 % 0.011 % 0.020 % 0.019 % 0.015 % 0.015 % -0.017 % 0.022 % -0.002 % 0.003 % 0.019 % -0.008 % 0.009 %
 

The above illustrates that the rolling twelve months' average all-in
cost of a client U.S. Reg.-NMS stock trade was 0.9 basis points.

_________________
Note 1: In connection with our currency
diversification strategy, we have determined to base our net worth in
GLOBALs, a basket of 14 major currencies in which we hold our equity.
The total effect of the currency diversification strategy is reported in
Comprehensive Income; the components are reported in (1) Other Income in
the corporate segment 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 2: Trade money is the total amount of money clients spent or
received, including all commissions and fees.

Note 3: 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 120 markets in
numerous countries and currencies, from a single IB Universal AccountSM
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 at the lowest cost according to Barron's Best
Online Brokers review, March 26, 2018. 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.

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.

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