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Geographically, Europe has seen the fastest account growth, followed by Asia, then the Americas. Generally, activity on our government and corporate bond platform has picked up appreciably. It remains the case that investors globally are looking to the markets to stay ahead of inflation and uncertainty. More people want to invest in securities markets, hold their choice of currency in their accounts, and gain exposure to different countries, particularly the US, as a way to build wealth and security. Turning to expenses, Execution, Clearing & Distribution costs rose 14% versus last year, led by higher volumes in options, which carry higher fees than equities.

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This is where Introducing Brokers, or in trading vernacular, “IBs”, become the unsung heroes of your Forex journey. In Europe, it has a somewhat longer history, but much more subdued history.So it — in Europe, the traditionally people who are investing in the stock market were a very small layer of society. They turn on balance to be smaller funds in the $10 million to $50 million range, and so we get them regularly and quite often. So your question was whether we are already seeing the benefits in the numbers of the consolidation. The migration of the accounts to our Irish entity as well as consolidation of the 2 entities into 1 is going to take anywhere between 6 and 9 months.

• In addition, we are seeing more and more investors getting into US treasuries.
• Use our broad suite of integrated tools to execute your trading strategy.
• And in stocks, the drop off of 22% was largely attributable to investors moving to higher quality stocks, as trading in pink sheet and other very low-priced stocks declined the most.
• In 2001, the corporate name of the Timber Hill Group LLC was changed to Interactive Brokers Group LLC, which at the time handled 200,000 trades per day.
• So a lot of the trading we do in these zero-day options, we have an institution on one side and a customer on the other side.

With one more 25 basis point hike in the latest quarter, the average Federal funds rate was over 300 basis points higher this year than last. Our robust operating metrics once again translated into strong financial results this quarter. Our account growth remained strong at 21%, while our client equity was up 29%. Net interest income reached a record, as did our total adjusted net revenues, which were over $1 billion for the third consecutive quarter. On the other hand, markets were down in nearly every country in the quarter, and trading volumes dropped. However, options volumes continue to be strong and option commissions were up the most this quarter, then came futures, while stock commission revenue dropped.

Broker clients can electronically trade or the broker may input trades for the client. Manage taxes and corporate actions, learn about T+1 settlement and trade allocations, and read about additional tools and services available to clients. So there are several banks and brokerage firms around the world that have a relatively small customer base— it doesn’t pay for them to develop the technology that’s necessary to compete in this world today. So they are relatively easy to get onto our platform.

The European exchanges were obviously observing this phenomenon in the United States with NV, and they are going to be listing a zero-day options or 5-day options that are listed every day. So every day you will have an expiring option in cash settled index options, and that’s what they really are. So I think that options activity has a tremendous future because what has been going on in the United States, as you all know, is generally followed introducing broker by other places around the world with a lag of 10, 20, 30 years. And so we see more and more interest outside of the United States, and we also — there is no options trading overnight. So it’s basically 24 hours a day, even though overnight, is still very little volume, but it’s catching on. And I see everyone in 5 to 10 years from when options volume will be the same 24 hours, no matter what time of the day, you’re looking at it.

But as long as nearby rates are higher, we will not do so. So we believe that by far, we have the most efficient operation and our technology is by far the best. So it would make sense that other firms that have less are less automated would benefit — I mean overall day operation with benefit coming on to our platform. To be quite frank, I was so enthusiastic when they first showed up and the C&I estimated that we would have several million accounts. That is true, but European option volume — option volume and European exchanges is very, very tiny percentage of the total. I’m guessing that the relative proportion of 0-date and very short date options is going to probably remain the same, but overall option volume will keep increasing.

Commissions were $333 million, up 4% from the year-ago quarter despite industry-wide declines in equities volume. Our options volumes, in particular, came in at a quarterly high, doubling the pace of industry volume growth. Stock share volumes declined from last year’s quarter, once again driven by a drop in trading of lower-priced stocks, but also reflective of lower industry volumes. On the hedge fund side, the most recent Preqin statistics show us moving into the number 5 position in terms of number of hedge funds for which we serve as prime broker. We were once again the fastest-growing of the top prime brokers this year. We plan to be #4 next year, behind only Goldman Sachs, Morgan Stanley, and JP Morgan.

Invest globally in stocks, options, futures, currencies, bonds and funds from a
single unified platform. Fund your account in multiple currencies and trade assets denominated in multiple currencies. Access market data 24 hours a day and six days a week. Our Cleared IBKR Pro Customers paid an average of $3.11 Commission per Cleared Commissionable Order, up 5% from last year as our clients’ volume mix included higher per order contributions from options and futures.

Unlike other brokers with separate bank accounts in which you have to transfer cash back and forth, IBKR’s cash management is integrated into your broker account. Earn income on your fully-paid stock shares in our Stock Yield Enhancement Program. The program lets us borrow your shares in exchange for cash collateral, and then lend the shares to traders https://www.xcritical.in/ who are willing to pay a fee to borrow them. You will be paid a loan fee each day that your stock is on loan. The Investors’ Marketplace lets individual traders and investors, institutions and third-party service providers meet and do business together. Create Watchlists to monitor real-time market quotes based on your market data subscriptions.

They tend—on balance to be smaller funds in the $10 million to $50 million range, and so we get them regularly and quite often. Just wanted to know on the hedge fund size, are you seeing new hedge fund wins or the existing customer base… We’ve done some research into this and determined that we can measure this annually instead of quarterly. Sort of anticipating that it does go up and down and employees do, in fact, take their vacations annually. So we’re going to adopt that next year, starting with 2024 and you should stop seeing the quarter-to-quarter variations. And that accounted for $4-$5 million of the change upside and then downside— upside in the second quarter, downside in the third quarter.

All this is to say – when that “other” i-broker starts to onboard, I will let you know. Until then, I cannot put a date on it – I have been wrong on the date for a while now, so it is unclear to me why you would want me to keep giving one! But unfortunately, it is not only the date I have been wrong on. I have also misestimated the size of these operations. They now, both appear to be smaller than I originally expected and accordingly, I need to reduce my estimate of long term account growth from 30% to the low 20% area. In the grand tapestry of Forex trading, an Introducing Broker is your ally, guiding you through the intricacies, ensuring your voyage is not only lucrative but also informed and secure.