UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM
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(Mark One) | |||
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| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the quarterly period ended
OR | |||
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| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the transition period from to |
Commission File Number:
(Exact name of registrant as specified in its charter)
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(Address of principal executive office)
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(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
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Accelerated filer o | Non-accelerated filer o | Smaller reporting company | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o
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Title of each class | Trading Symbol | Name of the exchange on which registered |
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As of November 3, 2022, there were
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2022
Table of Contents
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PART I | FINANCIAL INFORMATION |
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ITEM 1. | Financial Statements (Unaudited) |
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ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 39 | |
ITEM 3. | 63 | ||
ITEM 4. | 67 | ||
PART II. | OTHER INFORMATION |
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ITEM 1. | 68 | ||
ITEM 1A. | 68 | ||
ITEM 2. | 68 | ||
ITEM 3. | 69 | ||
ITEM 5. | 69 | ||
ITEM 6. | 71 | ||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(Unaudited)
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| September 30, |
| December 31, | ||
(in millions, except share amounts) |
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| 2021 | ||
Assets |
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Cash and cash equivalents |
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Cash - segregated for regulatory purposes |
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Securities - segregated for regulatory purposes |
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Securities borrowed |
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Securities purchased under agreements to resell |
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Financial instruments owned, at fair value |
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Financial instruments owned |
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Financial instruments owned and pledged as collateral |
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Total financial instruments owned, at fair value |
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Receivables |
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Customers, less allowance for credit losses of $ |
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Brokers, dealers, and clearing organizations |
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Interest |
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Total receivables |
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Other assets |
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Total assets |
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Liabilities and equity |
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Short-term borrowings |
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Securities loaned |
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Financial instruments sold, but not yet purchased, at fair value |
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Payables |
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Customers |
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Brokers, dealers, and clearing organizations |
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Affiliate |
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Accounts payable, accrued expenses and other liabilities |
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Interest |
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Total payables |
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Total liabilities |
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Commitments, contingencies and guarantees (see Note 13) |
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Equity |
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Stockholders’ equity |
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Common stock, $ |
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Class A – Authorized – |
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Class B – Authorized, Issued and Outstanding – |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income, net of income taxes of $ |
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Treasury stock, at cost, |
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Total stockholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities and equity |
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See accompanying notes to the condensed consolidated financial statements.
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(in millions, except share or per share amounts) |
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Revenues |
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Commissions |
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Other fees and services |
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Other income (loss) |
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Total non-interest income |
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Interest income |
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Interest expense |
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Total net interest income |
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Total net revenues |
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Non-interest expenses |
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Execution, clearing and distribution fees |
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Employee compensation and benefits |
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Occupancy, depreciation and amortization |
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Communications |
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General and administrative |
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Customer bad debt |
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Total non-interest expenses |
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Income before income taxes |
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Income tax expense |
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Net income |
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Less net income attributable to noncontrolling interests |
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Net income available for common stockholders |
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Earnings per share |
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Basic |
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Diluted |
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Weighted average common shares outstanding |
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Basic |
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Diluted |
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Comprehensive income |
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Net income available for common stockholders |
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Other comprehensive income |
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Cumulative translation adjustment, before income taxes |
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Income taxes related to items of other comprehensive income |
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Other comprehensive income (loss), net of tax |
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Comprehensive income available for common stockholders |
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Comprehensive income attributable to noncontrolling interests |
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Net income attributable to noncontrolling interests |
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Other comprehensive income - cumulative translation adjustment |
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Comprehensive income attributable to noncontrolling interests |
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See accompanying notes to the condensed consolidated financial statements.
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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| Nine Months Ended September 30, | ||||
(in millions) |
| 2022 |
| 2021 | ||
Cash flows from operating activities |
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Net income |
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Adjustments to reconcile net income to net cash from operating activities |
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Deferred income taxes |
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Depreciation and amortization |
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Amortization of right-of-use assets |
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Employee stock plan compensation |
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Unrealized (gain) loss on other investments, net |
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Gain on remeasurement of Tax Receivable Agreement liability |
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Bad debt expense |
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Impairment loss |
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Shares distributed to customers under IBKR Promotions |
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Change in operating assets and liabilities |
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Securities - segregated for regulatory purposes |
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Securities borrowed |
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Securities purchased under agreements to resell |
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