On July 27, 2018, IBG Holdings acquired 1,537,727 shares of Class A Common Stock in exchange for 1,537,727 membership interests owned by IBG Holdings in IBG LLC and certain tax benefit payments as described in the TRA. There were no other transactions in the Class A Common Stock by the Reporting Persons during the last sixty days.
Paragraph (d) of Item 5 is hereby supplemented by adding the following paragraph:
Certain current and former employees of the Company and its subsidiaries also elected the redemption of a portion of their membership interests in IBG Holdings and therefore have an interest in the balance of the shares to be sold under the Plans. Neither Mr. Thomas Peterffy nor his affiliates have elected to redeem any of their IBG Holdings membership interests and therefore have no interest in the proceeds of sale of the shares of Class A Common Stock acquired by IBG Holdings on July 27, 2018. Mr. Thomas A.J. Frank, Executive Vice President of the Company, has an interest in the proceeds from the sale of 1,000,000 shares of Class A Common Stock included in the 2018 Plans – see discussion below under Item 6.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.
The first paragraph under subheading "Voting" of Item 6 is hereby amended and restated to read as follows:
Pursuant to the Restated Charter, IBG Holdings, as the sole holder of the 100 outstanding shares of the Class B Common Stock, is entitled to the number of votes equal to the number of IBG LLC membership interests held by it at any given time. Except as otherwise provided by law and the Restated Charter, the Company's shares of Class A Common Stock and Class B Common Stock vote together as a single class. As of the date of this statement, IBG Holdings holds 338,691,717 IBG LLC membership interests, and, as a result, the Class B Common Stock held by IBG Holdings represents approximately 81.9% of the voting power of the Company. Such percentage voting power is anticipated to decrease over time as a result of the exchange and redemption pursuant to the Exchange Agreement. Mr. Thomas Peterffy, through his revocable trust's ownership of the voting membership interests in IBG Holdings, beneficially owns all of the outstanding shares of the Class B Common Stock which represent approximately 81.9% of the voting power of the Company.
The following paragraphs are hereby added to Item 6 under the subheading "Voting":
On July 27, 2018, IBG Holdings acquired 1,537,727 shares of Class A Common Stock for sale for the benefit of certain of its members who elected to redeem a portion of their IBG Holdings membership interests. The shares of Class A Common Stock were acquired in exchange for 1,537,727 membership interests owned by IBG Holdings in IBG LLC and represent approximately 0.4% of the voting power of the Company. We anticipate a proportional reduction in the voting power of IBG Holdings as a result of the intended sales in open market transactions of such shares pursuant to the 2018 Plans. Mr. Thomas Peterffy, through his revocable trust's ownership of the voting membership interests in IBG Holdings, beneficially owns such 1,537,727 shares of Class A Common Stock, which represent approximately 0.4% of the voting power of the Company.
In the aggregate, IBG Holdings holds approximately 82.2% of the voting power of the Company. Mr. Thomas Peterffy, through his revocable trust's ownership of the voting membership interests in IBG Holdings, holds in the aggregate approximately 82.2% of the total voting power of the Company.
The following paragraph is hereby added to Item 6:
Rule 10b5-1 Trading Plans
On July 27, 2018, IBG Holdings entered into Rule 10b5-1 trading plans (the "2018 Plans") providing for the sale of 1,537,727 shares of Class A Common Stock in open market transactions. Under the terms of the 2018 Plans, IBG Holdings intends to sell the 1,537,727 shares of Class A common stock over time at prevailing market prices. Mr. Thomas A.J. Frank, Executive Vice President of the Company, has an interest in the proceeds from the sale of 1,000,000 shares of Class A Common Stock included in the 2018 Plans. The sales will occur until the earlier of the date on which all shares are sold, July 23, 2019 or the plans are terminated in accordance with their terms and Rule 10b5-1 of the Exchange Act and will be disclosed publicly in accordance with applicable securities laws, rules and regulations through appropriate filings with the Securities and Exchange Commission, as applicable. IBG Holdings and its members will have no control over the stock sales under the 2018 Plans.
Item 7. Material to be Filed as Exhibits
None