Profile: Interactive Brokers Group Inc (IBKR.N)
Interactive Brokers Group, Inc. (IBG, Inc.), incorporated on November 14, 2006, is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 120 electronic exchanges and market centers around the world and offering custody, prime brokerage, securities and margin lending services to customers. It operates in two segments: electronic brokerage and market making. In the United States, it conducts its business from Greenwich, Connecticut and Chicago, Illinois. Outside the United States, it conducts business in Canada, England, Switzerland, Liechtenstein, China (Hong Kong and Shanghai), India, Australia and Japan. Its primary assets are its membership interests in IBG LLC (the Group), the holding company for its businesses. It is the sole managing member of IBG LLC. As a direct market access broker, it serves the customers of both traditional brokers and prime brokers. It provides its customers with order management, trade execution and portfolio management platform. As of December 31, 2016, as a market maker, it provided continuous bid and offer quotations on over one million securities and futures products listed on electronic exchanges around the world.
The Company conducts its electronic brokerage business through its Interactive Brokers (IB) subsidiaries. As an electronic broker, it executes, clears and settles trades globally for both institutional and individual customers. IB's systems provide its customers with the solutions to monitor multiple markets around the world simultaneously and to execute trades electronically in these markets in multiple products and currencies from a single trading account. Throughout the trading day, it calculates margin requirements for each of its customers on a real-time basis across all product classes (stocks, options, futures, bonds, forex and mutual funds) and across all currencies. Its customers are alerted to approaching margin violations and if a customer's equity falls below what is required to support that customer's margin, it attempts to liquidate positions on a real-time basis to bring the customer's account into margin compliance.
As of December 31, 2016, from a single point of entry in one IB Universal Account, its customers were able to transact in 23 currencies, across multiple classes of tradable, primarily exchange-listed products, including stocks, options, futures, bonds, forex and mutual funds traded on over 120 exchanges and market centers in 24 countries around the world. IB SmartRouting retains control of the customer's order, continuously searches for the available price, and routes and re-routes all or parts of a customer's order to achieve execution. It also provides Transaction Cost Analysis reporting to allow customers to track execution performance by criteria, including trade date, trade price, underlying and exchange.
The Company's system is configured to remember the user's preferences and is specifically designed for multi-screen systems. When away from main workstations, customers can access their accounts through its IB WebTrader or MobileTrader interfaces. As of December 31, 2016, it offered its customers with tools, Interactive Analytics and IB Options Analytics, which include a customizable trading platform, analytic tools, over 60 order types and algorithms. IB also provides a real-time option analytics window, which displays values that reflect the rate of change of an option's price with respect to a unit change in each of a number of risk dimensions. The Probability Lab provides clients with a visual method to analyze market participants' future stock price forecasts based on current option prices. This tool compares a client's stock price forecast versus that of the market, and scans the entire option universe for the highest Sharpe ratio multi-leg option strategies. It offers IB Risk Navigator free to all customers, which is a real-time market risk management platform that unifies exposure across multiple asset classes around the globe.
The Company offers a suite of automated Stock Borrow and Lending tools, including IB's depth of availability, transparent rates, global reach and service representatives. The Investors' Marketplace is an expansion of its Money Manager Marketplace and its Hedge Fund Capital Introduction program. This program is an electronic meeting place that brings together individual investors, financial advisors, money managers, fund managers, research analysts, technology providers, business developers and administrators, allowing them to interact to form connections and conduct business. IB offers broker-assisted trading through its block trade desk.
The Company conducts its market making business through its Timber Hill (TH) subsidiaries. As of December 31, 2016, it provided liquidity by offering bid/offer spreads over a base of over one million tradable, exchange-listed products, including equity derivative products, equity index derivative products, equity securities and futures. Its United States market making activities are conducted through Timber Hill LLC (TH LLC), a securities broker-dealer that conducts market making in equity derivative products, equity index derivative products and equity securities. As of December 31, 2016, TH LLC held specialist, primary market maker or market maker designations in options on approximately 940 underlying securities listed in the United States. TH LLC is a member of the Boston Options Exchange, Chicago Board Options Exchange, Chicago Mercantile Exchange, Chicago Board of Trade, International Securities Exchange, OneChicago and the New York Mercantile Exchange, among others. TH LLC also conducts market-making activities in Mexico at Bolsa Mexicana de Valores (BMV) and MexDer, a subsidiary of BMV.
The Company conducts market making activities in Canada through its Canadian subsidiary, Timber Hill Canada Company (THC) at the Toronto Stock Exchange and Canadian Derivatives Exchange Bourse de Montreal Inc. In addition, it participate in stock trading at various Electronic Communications Networks (ECNs) in both the United States and Canada. As of December 31, 2016, its European, Asian, and Australian market making subsidiaries, the Timber Hill Europe AG (THE), conducted operations in 19 countries, consisting of the securities markets in these regions.
The Company competes with TD Ameritrade, The Charles Schwab Corporation, Goldman Sachs, Bank of America Merrill Lynch, JP Morgan Securities, Morgan Stanley, Citigroup, Citadel, Susquehanna, Wolverine Trading, Group One Trading, IMC and Optiver.
Interactive Brokers Group Inc
1 Pickwick Plz
GREENWICH CT 06830-5551