The recent turmoil affecting global financial markets courtesy of the Swiss National Bank has had a net positive impact on operating metrics at listed multi-asset financial trading broker, Interactive Brokers.
The US-based firm reported strong overall metrics for the month. DARTs and client numbers were higher on a monthly and yearly basis with a slight reduction in the ending client margin loan balances and ending client credit balances which were both lower by 3% in January, from figures reported in December 2014. The current figures reinforce the correlation between trader behavior and market volatility.
Interactive Brokers, a leading broker-dealer on global financial exchanges, reported its electronic broking and market-making metrics for the month. In the firm’s official notification it outlined full details of the key metrics. The daily average revenue trades (DARTs) figures totalled 676 thousand in January, which were 16% higher than January 2014 and and 15% higher than figures reported in December 2014. The DARTs metric is a prominent identifier of the profit and loss a broker makes or is expected to earn, the figure is defined as the number of trades from which a given broker can expect to generate revenue through commissions or fees on any given day.
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Other key figures for the month include: Ending client equity of $56.6 billion, 24% higher than prior year and flat to prior month. Ending client margin loan balances of $16.4 billion, 18% higher than prior year and 3% lower than prior month.
Interactive Brokers was one of the few brokers that reported its actual client losses as a result of the January 15 crisis, thus impacting its end of month client credit balances. Although the figure was higher on a YoY basis, it was lower than December’s figures ending at $30.5 billion, which was 3% MoM. The broker reported $120 million in client losses as a result of the SNB’s actions.
New traders were not affected negatively by the news with client figures rising 1% MoM to 285,000, a 17% rise YoY. The multi-asset firm earned the highest amount of commission in dollar terms on its future product segment, reaching $6.70 with an average trade size of 3.8 contracts, thus boosting the overall average commission per cleared client earned to $4.27 including all fees.