Interactive's July Metrics Fall - Analyst Blog

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Interactive Brokers Group, Inc .'s ( IBKR ) Electronic Brokerage segment witnessed a sequential fall in brokerage metrics for Jul 2013. However, the company reported a year-over-year rise in the metrics. The segment clears and settles trade globally for both individual and institutional clients.

Total customer Daily Average Revenue Trades (DARTs) improved 13.1% from Jul 2012, but declined 12.4% from Jun 2013 to 465,000. However, total customer accounts climbed 12.4% from the prior-year month and 1.0% from the prior month to 226,500 currently.

Interactive recorded Cleared Customer DARTs of 419,000, increasing 9.4% from Jul 2012 but declining 13.0% from Jun 2013. Moreover, on an annualized basis, Cleared Average DART per customer account of 466,000 declined 2.7% from the comparable prior-year period and 14.0% from the previous month.

Additionally, Interactive's total option contracts decreased 0.8% from the year-ago month and 6.5% from the prior-month level to 19,853. Moreover, future contracts surged 17.6% from Jul 2012 but declined 18.7% from Jun 2013 to 8,210.

Interactive also reported period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Jul 2013, customer equity stood at $39.3 billion, augmenting 34.6% year over year and 5.1% from the prior month.

Further, Interactive recorded customer credit balances of $23.6 billion in the month, increasing 26.2% from the Jul 2012 figure and 4% from the prior-month level. Also, the company's customer margin loan balances of $11.5 billion at the end of Jul 2013 surged 33.7% from $8.6 billion at the end of Jul 2012, and increased 2.7% from $11.2 billion at the end of Jun 2013.

Lower trading activities and fluctuating interest rates are expected to impact the company's financials in the near term. Additionally, the company's dependence on IBG LLC and its wide international exposure remain looming concerns.

Currently, Interactive carries a Zacks Rank #3 (Hold). Some better performing investment brokers include FXCM Inc . ( FXCM )) and TD Ameritrade Holding Corporation ( AMTD ) with a Zacks Rank #1 (Strong Buy) and E*TRADE Financial Corporation ( ETFC ) with a Zacks Rank #2 (Buy).

TD AMERITRADE (AMTD): Free Stock Analysis Report

E TRADE FINL CP (ETFC): Free Stock Analysis Report

FXCM INC-A (FXCM): Free Stock Analysis Report

INTERACTIVE BRK (IBKR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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