Interactive Brokers’ June DARTs Flat Compared to May as Client Equity Rises

DARTs flat for IB in May, GLOBAL basket re-weighted with real and renminbi.

Interactive Brokers Group, Inc (IB), a global electronic multi-asset broker and market-maker listed on the Nasdaq under ticker IBKR, today reported its monthly performance metrics for June, as per an official update.

The number of Daily Average Revenue Trades (DARTs) reported by IB for June 2016 was 643,000 and 7% higher than June 2015 when compared year-over-year, yet was described as even when compared to the prior month. The slight uptick of 2,000 DARTs from May’s total of 641,000 was barely 3/10ths of a percent, indicating a negligible change in June.

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Client equity up 2% to $73.7b

Although DARTs were practically flat month-over-month, client equity at the end of the June was $73.7 billion, and 2% higher from May, and higher by 12% compared to June 2015. IB reported 357,000 client accounts in June, indicating a rise of 1% from May’s total, and higher by 16% YoY.

The number of DARTs cleared per customer account for June was 419 on an annualized basis, while the average commission per cleared client order was $4.11 including pass-through costs such as exchange, clearing and regulatory fees.

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The average commission charged per cleared client order by IB in June, for stocks, was $2.27 based on an average order size of 1,667 shares per trade. For equity options, an average commission of $6.19 was charged per 8.6 contracts on average. Finally, an average order size of 3.8 futures contracts saw $6.67 in commission charged on average during June.

Last month Finance Magnates reported when IB’s May metrics had reached a 2016 low, and June appears to be little-changed across key metrics such as its DARTs total.

GLOBAL gets renminbi and real

The company also said that it made changes to the weighting and holdings in its GLOBAL currency basket which is used for risk-management purposes and diversifying its currency exposure, with nearly half of its capital held in currencies other than the USD.

The main changes IB made to its GLOBAL basket was the addition of the Chinese renminbi (CNH) also known as RMB, while the company removed the South Korean won (KRW) and Brazilian real (BRL) components.

This resulted in the basket having one fewer currencies for a total of 15, and required the basket to be reweighted. A table below excerpted from the company’s update for June shows the breakdown of the GLOBAL basket as of June 30th, with the new changes set to take place going into the next month and the target conversions reached over time.

source: Interactive Brokers June 2016 monthly metrics
source: Interactive Brokers June 2016 monthly metrics
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