Interactive Brokers Group Inc
) Electronic Brokerage segment announced an increase in brokerage
metrics for the month of September 2012. The segment clears and
settles trades globally for both individual and institutional
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Interactive's total customer Daily Average Revenue Trades (DARTs)
declined 19.6% from September 2011 but increased 15.2% from August
2012 to 410,000. However, total customer accounts improved 11.6%
from the prior-year month and 0.8% from the prior month to 205,300.
Interactive recorded Cleared Customer DARTs of 390,000, declining
17.7% from September 2011 but improving 15.0% from August 2012.
Further, on an annualized basis, the company reported Cleared
Average DART per customer account of 479,000, plunging 26.8% from
654,000 in the comparable month last year but jumped 14.0% from
420,000 in the previous month.
Moreover, Interactive's total options contracts plummeted 25.8%
from the prior-year month but inched up 0.5% from the prior month
to 19,645 in the month under review. Futures contracts totaled
6,807, decreasing 23.3% from 8,878 in September 2011 and 5.8% from
7,223 in August 2012.
Interactive also reported period-end statistics for customer
equity, customer credit balances and customer margin loan balances.
For the period ended September 2012, customer equity stood at $31.5
billion, augmenting 35.2% year over year and 3.6% sequentially.
Additionally, Interactive's Electronic Brokerage segment recorded
customer credit balances of $20.4 billion in the month, increasing
23.6% year over year and 5.2% sequentially. However, the company's
customer margin loan balances of $9.2 billion at September 2012-end
jumped 35.3% from $6.8 billion at September 2011-end, and 4.5% from
$8.8 billion at August 2012-end.
Although improvement is witnessed in overall brokerage metrics from
the last month, it is anticipated that lower trading activities and
fluctuating interest rates will continue to impact the company's
financials in the near term. In addition, Interactive's dependence
on IBG LLC and its wide international exposure make us
apprehensive. However, we are impressed with Interactive's
better-than-peer positioning, technological excellence, stable
balance sheet and robust capital base.
One of Interactive's peers -
Knight Capital Group, Inc.
) - is expected to announce its September metrics in the first half
of this month.
Currently, Interactive retains a Zacks #4 Rank, which translates
into a short-term Sell rating.