IBKR - Earnings call transcript Q1 2019 | Interactive Brokers Group, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Interactive Brokers Group First Quarter Financial Results. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

Now, it's my pleasure to turn the call to Nancy Stuebe, Director of Investor Relations.

Nancy Stuebe

operator. you, Thank thank quarter and joining for us Good earnings you conference first XXXX call. our afternoon for Once again, Thomas to is on the call, comments the present but on business. his asked me the Q&A. He will handle

forward-looking As today's belief future of certain which a events, the not represent their are are call include regarding nature reminder, by and the statements, may company's company's which outside control.

disclaimers condition forward-looking in from what refer in these statements. Our ask materially to press actual is our possibly the results release. may differ and you We financial that indicated

You should all-time the description the new from with a time. first of Brokers the review in quarter, our of reached XX% for billion. $XXX.X more contained also SEC. year Client equity risk ago financial records achieved high with first rising factors in quarter the reports an and filed accounts XXX,XXX Interactive passing

of quarter, ever had after though returned DARTs to This more occurred the last in year. our period high third quarterly levels even the history. This first quarter volume very we traditional of volatility in highest company's a

customer DARTs secular by have punctuated upward during shown in our base our volume trend markets. spikes has turbulent a As grown,

DARTs than with first to pushed that to volume XX. tripled quarter our Over the from the of course which in first such just rose last for in the to the of first under spike our past in period, year's quarter quarter this the coincided quarter the volatility, XX VIX The last over first conditions, quarter a year XXX,XXX in XXXX. year-on-year year over reflection of DARTs XXXX XXX,XXX. of That the from when increased more decline XXX,XXX is two quarter a spike

of focus all on customer our continue our in growing to We strategy base segments.

of advantage and in higher. take more so can scenario, when it is we any So volatility

moderate bottom of our a because to with trading our nature our automated of structure, but the business line. low-cost revenues sends higher platform volatility, even proportion and of highly strong more is Our activities

our shortly trading clear goes any XX.X% volumes our is accounts. compliance our XX over risk March customers have growth that trying stocks it to comparing to year questioned account we the from peaked this our XXXX factor, in new in reviewing not month the these of a and since be growth would like slice experiencing account Interactive in growth we process the ensure that the each as certain unable occurred micro-cap the by hand-in-hand to of factor limit manually. year micro-cap of difficulty been with and presented the I had this trade Mainland Outside was in rate us back way XX.X% December been and XX%. sequential Brokers leveled we time our growth Chinese securities XXXX. any impacted these reaching are over after account automate tell our would obtain increased decision very Growth quarter shows We our limit account it each April will Unfortunately, versus you regulatory to Nevertheless, to when been rather that with declining know, must growth. had to has support in by to of at pull Another XX%, to to which for so trying last remained generally fund platform. period legal of burdens allow past but at used have their of that over we above than the end annualizing first end quarter good March securities DARTs guidance at not still the hat. that business, a would security And see out Until off XX.X% XXXX. would regulators. but us time, the stock our from account Supporting chosen be have on to rabbit which good. of of go XX.X%, you

rabbit in plan we the test locations third introduce near a over For just location the to last been the on months, nine beginning working other of at such quarter that we've time. a and gradually

product margin about our opportunity For only rose a several an base. but business, successful prepared reasons, Net customer the quarter on and it cash say accounts to this securities were On increased would to quarter are interest average balances good not we time. some area say will started rabbit our We traditional equity. from our to take down customer cash related tangentially some in higher customer's expand to be loans X% we the under interest much $XXX,XXX at decided risk-off. as grow this rates. January at though fourth the can in benchmark moved paying and income higher if new on X, development Customer credit investors

By dollars. we accounts, highest rates loans. available cash Brokers qualified rates, charging X.XX% margin For immediately customer on of know paying cash and the on lowest Interactive know we in customer from the U.S. of pays

sides. couple more We of on items this a takers both There are were one-time attracting quarter.

as when the The them. a its are months. to good our our Brokers excellent started relationship if strategic for an even in six at in look investment with would Tiger's initial Tiger to public customer investment, liquidate potential of working recognized we We their offering. with able change, be excellence this assessment long-term early had from technological gain not first and but prospects we and Tiger's we a They long-term them. enjoy on We was were

may may quarters. have came in advance some attention to that words our choose some indication So accept that in to It as there of we were the IPO are market, Tiger in mark self-clear future investment required their additional volatility to to to you soon. this

many maintaining operating you not that a not back-office of for for easy would low that be tens of any us. weeks. that. great and on Even that is is a given think. several as this based happens, thoughts customer they them accounts happy cost makes, self-clear impact active customer doing case, we At thousand what towards charge have is would the pays until not we very over least, that choices years independent if assets happen this have a it of it any believe Our billions we It favorable also rate not would the on and as of In our regardless which systems our building we to experience systems might decades deal. opinion move of more hundred doubt itself provide to at time also

that potential, huge sure will come. we time their are Given

million on million customers and on what which we is U.S. borrowing very $XX up. very Due early in collect a disclosed a we to volume, The were trading wanted. dried stock margin of price the of still we rapidly now loss, stock's brief Second, period occurred while March, was time to loan fell suddenly by we likely much in This volume to liquidate several as invested which the are margin. low listed simultaneously stock which in as $XX unable trading over then more. the the

expect We to further here. recoveries make have made and

systems make and continually looking better. to We our algorithms are

risk a future. tightened we'll very greater be have we and loan in result, low as average assess stocks volume margin a volume daily weight using in trading when we borrowing margin As

equity the $X.X highest billion total Finally, our in our to-date. first quarter, reached

that all helps for diminished larger brokers As our our service. client five equity we now customers. for segment our continue client and in XX% growing Introducing Mainland XX-month despite was fastest types I growth client be the segments. to saw go us this China growth five XX% accounts, capital to continue of we segment, attract grow for We equity growth larger, over accounts. XX% commissions. from will for

the back-office Interactive provides and the As a relationship regulatory trading, introducing execution and the broker and customer the service reporting, reminder, clearing, manages its with tasks. the handles clients. Brokers for custody

continue fund in see growth We the segment. to good customer hedge

XX X% the growth quarter, X% X% equity fund hedge and For growth the commission we first growth. customer months, account saw for

continue and We sheet. strength XX% equity the our client of platform growth our balance XX-month for growing our had of reputation of of of and XX% which our our made and quality of from XX% our customers, price Individual benefit XX% the best account from accounts, to execution up client at commissions of XX% client of that volatility accounts, equity commission. quarter. fact effect the lower Proprietary grew and XX% account, XX% The were grew dampening X%. while trading slower equity the current reflects the than up of our for in pace commissions a of quarter, firms and word-of-mouth, commissions X% are

a as decline volatility grew and commissions lower in this previous XX-month of For client trading micro-cap and XX% by sensitive the group falls. to versus of result period less are categories trading. the limiting XX-month volatility Top the and all the direction of in volume in as for firms product XX% trade equity volatility by nearly XX% declines a had quarter, driven in accounts period,

of accounts for advisers. our grew final our XX-month are Our XX% XX% commissions XX% group of by financial customer XX% and equity our of and category customer They is XX%, X%. commissions. accounts, This equity by by period the

case individual growth. with to pace our was account environment keep As not with XXXX, meant more moderate customers the trading versus commissions

and In free. platform, provides of measurement, see addition to PortfolioAnalyst Portfolio a risk button the you new continue click introduce and to that will our exposures trading of it's the at initiatives improvement constant performance on our Checkup, us metrics the like

our savings categorize features customer account For from the can leave With any numbers Portfolio give The platform. Brody, uploaded which even reason the our over to can continues if little individual to ETF/Mutual call were within not anywhere in be away them the our stocks I stocks. Checkup weightings help Paul risk the to components coincidentally our more CFO, towards flexibility are the market the who go We as tool, and and fully give and measure analyzed. can for the individual they through Brokers at Interactive These banks managers their Fund to on held including platform. portfolio and will move client, assets our that, designed ETF quarter. estimate entire includes to also ETF to turn and for parser will clients

Paul Brody

joining Nancy. Thanks you everyone the Thank call. for

And first and follow release of Q&A. call non-core the the I'll operating for earnings with review our the I'll format results comments up usual will which on the also after we'll the As touch items. data. operating open my Starting

previously loss. quarter. $XX reflected environment. investment two million declining to per million Nancy the the XX.X by $XXX ago this The We or results share in share Tiger or XX.X fairly disclosed items. quarter active lending recognized loss Brokers, modestly to non-core referred fell a VIX volatility the measured margin noteworthy $X.XX average gain that strategic as in Operating metrics included from a year trading first from and the from our Volatility in per our $X.XX quarter

futures this for XX cutback over story. of in during kind and declined should under a stocks the micro-cap sparked comparisons from course volume However, year-over-year impact first fluctuated March. of XX. given of in the of last viewed contrast, average is futures The volumes, VIX a trade stock Customer this the between options that commissions In XX context. volumes the closer quarter, from year's volatility and inspection about quarter index January month reveals and different aggressively fell and options of an the higher And to in although be our lower stocks. in especially in X

quarterly was that XX% is in our accounts as volatility total Accounts period led year. advisers. all down of volume quarter and dollar XXX,XXX, to In introducing individuals $XXX.X the grew growth last reached of first equity exchange customer XX% quarter in Foreign the contributed comparison up segments high versus billion brokers were Total which DARTs well. at by in XX% to XXXX, financial customer to down also end. robust

Our and X% sizes last product cleared a in trade on $X.XX in that average versus year options, futures. fell ForEx, DART overall mix commission featured and higher per slightly smaller stocks, average to

Moving continued not $X to did to Federal modest nor has on intentions U.S. of curve, million treasuries. to flattening first to our table, a our mark-to-market The do this it change of portfolio the the recorded margin of holdings X.XX% net our interest our in quarter so. shorten net of quarter of light interest rates yield In X.XX% gain from and we indicate last that margin year. the widened Reserve duration

this from XX% larger quarter not financial to unchanged. securities as in contributions moderates about but lead the customer we and our these And currencies in plan forward. year in income hold maturity, going Outside interest are were generated income dollars. success GAAP mark expectations on our rising in higher gathering Increased U.S. rates our reporting. of on always, to we cash interest-sensitive rules assets balances require last customer most brokers relatively balances. believe net to interest in rates credit interest balances asset versus net continued us As should more as unlike This to U.S., to banks, them market

FDIC grown be to segregated lending to interest last balances $X.X our contributors XX% fell Bank cash continued steadily most Average Our Margin net Deposit Sweep billion. loan Program margin significant versus has to and the Insured management margin. year.

rates interest last versus of year growth led higher XX%. to However, margin interest

income cash cash rates interest in hikes Fed funds to Fed to Our increases rose segregated XX%, on segregated the the primarily rate. Two factors over U.S. four our XXXX. on the yields caused lag interest

held First, days, a in the time. given investment over average treasuries of about portion place is currencies. duration second, other And of investments XX an take in

interest sideline the purchases by our these would a be segregated Note risk hard-to-borrow lending of short. fewer Sequentially, in expected as on Sweep on immediately. included looking earned securities from hikes to funds financed balances invested. is continue cash opportunities. also as removes be investments segregated they that amounts not segregated in smaller balances market Program to X% would were income benchmark on lower for to is securities as up on that for The income the is leads lending names we were rise, was stocks, income appetite the received ago also Fed is collateral interest Note lending securities XXXX, be So, cash margin over accounting lending in purposes. interest follow less sheet this optimize as classified particularly increase quarter greater as lending FDIC versus funds that more cash. rates in loans that function segregated a that our because balance XX% income in did to of a there was Securities portion too cash the otherwise customers' year to investors

Now, income. holdings expect With interest point an are run already new of we as calculation, the of to of segregated assumption, income the next or our in impact maximize the and have or our already net rate XX the on available our given for us, the in assets fall invest. increases rate $XX in of tend reinvestment million the our introductions decrease isolate million in and that includes of into the separate into increase yearly further how assumed these the present rates does opportunities basis rate. The rates, cuts run of rise in to that in $XX of estimate, point interest we're hikes our we customer XX yields unexpected the baked or any next been investment next over manage in product instruments. change rate, cash. produce it we to growth in we well-positioned rate impact the account additional the instruments prices take which net new our four reflected rates the impact an basis would unanticipated at in typically but all to the the rise from Therefore not Expectations quarters

rate in rate. the symmetrical for basis million producing quarters estimate over income four less the million net run interest the points $XX interest next yearly $XX less and in is XX decline unanticipated Our as next

the to year-ago solid $XXX for a segment Electronic the pretax operating quarter, quarter. Brokerage on X% a $XXX net into were Turning in metrics healthy revenues performance income margin. lower Net our down increase a commissions million interest was turned largely from results, income. offset million with for by Reported XX% core

million well plan Making million, hiring were brokerage portion benefits retain was million to consists were a driven for their and by excluding bulk currency line had we million with in of the margin was higher million $XX loss. pretax quarter were effects strategic Customer pretax been A Fixed related compensation expense U.S. a support the of XX% which liquidate that million. margin strategy. X% the to and revenues However, including for to we as $XX million, interest loss, than in $XX disclosed estimated, bad income our Gains Corporate net marks and treasury unusual as margin. debt Trading income figure $X our up lower the our brokerage initially the previously we profitable Market position. the Net few business. was gain of growing $XXX expenses to able the $XXX Making the markets a Market outside business investment the as and customer diversification reflects was segment facilitation the income. from today pretax remainder of $X of have

our we Tiger $XXX gain March. quarter, a Brokers in of investment recorded from million in Tiger's first following the IPO For

variability long every segment this some will market As Corporate as mark our to to investment lead we position. we mentioned earnings which in earlier, hold may quarter, this as for

to in our our call diversification GLOBAL of scope proportion to the reflect we currency equity XX of business. effects, As we currencies, International best basket carry to a the

We we estimate strengthened in our from is of from the the $X.XX OCI. against million $X of reported in Comprehensive share all million million other reported as effect somewhat major $XX As with in that income U.S. which dollar earnings as earnings. quarter, be loss about incurred other total decrease per included comprehensive most Income to effectively overall currencies reported Other and strategy and this currency is none $XX of an

in currency million marking our our on a product most to $XX portfolio to $XXX volumes fell Commission $XXX offset revenue quarter. million our the X% include $X from Nonoperating million nonoperating last up sizes overall X% investments over year-ago year's lower million $XXX on quarter, were strategy income market. XX% down lower treasury by revenues million, gain Adjusted statement. items million average revenues the million. the Turning loss gain were the for from items, and $XX margin trade for $XXX from Net the and categories. loss and net

per received reflected our Making was and XX% includes loss, treasury year. our which Other $X.XX income average to last At margin marks produced and remainder. of with the trading decline decreased X,XXX, earlier, $X fees we $XXX at million, our lower mix. $XXX million noted Without volumes. and and GLOBAL commission Market corporate income to we the net interest strategy, noninterest Tiger this execution investment year, Noninterest cleared currency in quarter, overall due income, million our on other well would brokerage stood DART expenses $XXX million. as primarily million our as As $XXX Of end, the million over last from expenses up $XX last the to quarter versus a the increase have loss. due line that were year costs total headcount clearing lower for gain

and $X.XX versus was the is per for We have were pretax versus adjusted quarter as and similarly diluted in earnings margin. Reported were been even period effects last in pretax most operating and to items last $XXX income impact India. over pretax and gains, to income interest engineering earnings of network To $X.XX our a million was build million, but versus earnings, Comprehensive last which After losses, lending XXXX. for we or the with we by between is million, currencies leaves income year's same Diluted it for adjusted. the share $XXX non-GAAP public companies per statement. have taxes as $X.XX of investors taxes. $XXX of from investment is this quarter and million XX%, did $X our services, $X.XX a the the our Without split would before million we XX% Starting or includes the Adjusted $X.XX million the represented a share, noncontrolling public pretax reported the is hold million statement. income This development about treasury with client $XX that on to for understand end, follows. noncontrolling which our $XX been measure, for $XX X% of you available expense on currency $XXX shareholders, income previously, per $XX that areas our our mentioned hiring share paid also company's margin better public as the of year. diluted opt on operations all this available for $X.XX this rate, year. marks, down million remaining foreign taxes income XX% earnings aggressively taxes in last pretax not interests. in company was $XXX income on million, attributable about margin, shareholders software statement is non-core million continue I XX% the net income $XXX common year up XX% or reported reported remaining is are mostly see which income million, The shareholders income help

tax $XX the expenses by this $XX consists of operating income paid million, plus of Our $X million of million the companies. taxes

balance the Turning remains the sheet with consisted consistently sheet. -- balance low to liquid It leverage. highly

to and as as our extremely the a take order depth business. well hold capital to our growing in excess of of are We capital We well and balance standpoint sheet. capitalized continue from in to opportunities, regulatory advantage brokerage deploy strength equity the emphasize

last long-term decline carry debits continue XX% debt. $XX.X environment. risk of year's to At XX, were from We no March margin on million,

Our sheet to satisfy on to controlled which our margin us a continued take conservative growth. leverage to manner, management allows has competitive aid with rates along lending willingness our highly in customers' balance

the customers success in in swings years, have hedge may fund our more on we institutional due past taking loans stated, to who our attracting margin more than opportunistic As show in leverage. are

XX, and And capital moderator and in billion billion, $X.X begin equity now, be at March back Market $X.X in $X the activities over was corporate. I'll to billion can the held customer -- questions. brokerage, was the remainder consolidated facilitation to in Making call turn Our XXXX, take we'd and

Operator

is Instructions] go [Operator first Rich from Sandler question Thank O'Neill. And our Repetto with ahead. Please you.

is Your line open.

Rich Repetto

Thomas. Paul. Yes. evening, Good evening, Good

it Tiger your go to at when has And, up, stock closed at, the on it. I on look disclosure brokerage, comments we the guess, the First, $XX. thank you for or continued

as calculate from gain another million $XX So today quarter-end. mark-to-market we of

customer or difference time the that able versus they're the guess, rhetoric have you would that the given actually is, conversations appears very about someone about this? the I to that them I up investment the significant -- being what they out go take. So, that it, you had saying, self-clear large a in the what be put guess, to with continues question have projected you to

Paul Brody

you are that? Thomas, addressing

Thomas Peterffy

sorry. So

We have with Tiger conversations continue to Brokers.

a them. good with and very have close We relationship

Rich Repetto

Okay.

got lock-up, -- It be on but varied loss. would continues little didn't XXX in The from you guess, anyway, investment the the what day in the the you I So quarter it do question to a earlier the well. bit filing in March. next disclosed,

is that vast of it was you say So the $XX safe worked of it or or $XX lot the is a million reported? now? off most it majority change to -- That we if expect wouldn't the that million from

Thomas Peterffy

extremely So, as and that was disclosed you at became time we know, we our loss the became explained virtually. the unable liquidate to problem we have that stock when the liquid

so, holding currently, we stock and we liquidate amount a where are to a of still that are And for situation in we're large unable reasons. the different

it not the to lawyers inability a we we about that to us six pay Our period. margin, the now tell due liquidate are we taken that that, had over stock the for -- cannot since months

Rich Repetto

Yes.

that you or just And, amount? the that plans expenses we levels. $XX like get why may that down about has with the I million. more the guess, of they down But activity the -- next Okay. last ex non-recurring the it and two? expense down the then, the have some I And adjustment lower growth could talk by by at quarter items, on question might brokerage, over and very brief coming as, the come be FX came will about do the -- quarter-to-quarter, guess, to Certainly, -- Paul,

Paul Brody

by you're Well, decline. And right. that most execution is of much very expenses, direct and the driven it clearing the is

business, we wasn't continuing various categories. in other some and would expand anything employee as certainly things the then and we other and we in business. are notable grow compensation growth the the So like there this expect And particularly to -- things benefits so

Rich Repetto

Okay. much. very Thank you

Operator

you. comes Sachs. with our Thank from Goldman next And question Nance Will

Your open. now is line

Will Nance

appreciate this I to the some Hey And back brokers larger guys, zoom guess, the talk out the to a I big of you discussion recently. on circle talk about I client on about if introducing the some of by versus segment. earnings I that you of and of segments? your guess segments? you introducing good overall some broker that your I maybe about the can clients. questions more has have, per holistically guess different afternoon. contribution of topic been different wanted talk commissions segment client every of client channels other economics the the disclosure give maybe And maybe the like account client quarter profitability and of to you maybe

Thomas Peterffy

So X% of the from segment, represent came our months last as though our have XX we of disclosed, the brokers even in commissions, accounts. commissions they introducing XX% our

So commissions how brokers know and we that's one treated as as are tiered. accounts are And introducing have you treated they tiered get account. their only,

true for any we That is type. quite So the interest. commissions slow, other make relatively on them they for are not are much less account than

as our exceeds our income that income brokers concerned, from interest group. commission are far introducing as So well

Will Nance

That's Got it. helpful.

maybe on question then circling for Paul And the just the expenses. Okay. back to

if XX% them I being I still something to growth total flat about And at think the cost, seeing just year-over-year. expenses ex XX% talked like previously you've in I'm expenses. relatively execution look

to could unless it talk because of near year, seems in growth we're doesn't I ramp you tracking to like seem the for term the about back we're there’s So guess just expectations in half XX% now. the the like the -- XX% a right not it expense -- big

Paul Brody

that be grow helpful, target so do we set find are bent don't some by that is what to meeting business opportunistically targets We what Well, rather dates. on budget we may aggressive quarter. an in Thomas than expansion quarter. yes particular timing of of of have more past to to this And there any opposed is was our referred calls not overall strategy as and the much

obviously, thing where, over a our of portion expenses good the -- a other that India are staff place the basis the I taken is in last The year, on should head expansion in lower. per the mention certainly

Will Nance

meaningful it. makes of squeeze maybe changes activity the you the this some any guess impact sense. I decline requirements you're this on environment? client was And loss of That margin largely this that could Got in. Or after some quarter. I the mentioned you guess function disclosed if a balances making overall just have the in did quarter to more I just in one balances?

Thomas Peterffy

the of the even quarter. discussions margin of after very the lot of A or quarter some maybe late rules occurred the in

did is during answer impact the quarter. the not it the balances margin So no,

Will Nance

it. Got

you questions. taking for Thank Okay. my

Operator

Thank our with question Gabelli. you. from Mac is And Sykes next

Your now line is open.

Mac Sykes

Good evening, everyone.

bad at your have competitors, would cost financing the than for revising the for debt a stocks? least you or rate since higher imply materially your of Just portfolios schedule considered with given those riskier expense, credit is platform all, it at lower

Thomas Peterffy

considered not the rate expensive any be revising have want competitors. less compellingly schedule. We We our of than to

Mac Sykes

My follow-up to a is just it's more on the anything of there certain sort color give global little whether asset certain product a a…? domestic, perhaps us ranges, to around provide classes, just any -- rabbit, versus way

Thomas Peterffy

to or two am have be It's and the -- patient. three I another sorry you us there. rabbit months will just be give

Mac Sykes

Easter on Okay. Thank that. and you, Happy

Thomas Peterffy

you. Thank

Operator

Thank our next Kyle Voigt you. And question from KBW. is with

Your line is now open.

Kyle Voigt

evening. good Hi,

to near some could of terms were invest the you you on wanted what if management you securities. potentially I as I in in that to there be invest any where year ago think about changes that you and are duration agency or looking the term Or in securities just portfolio in at what follow-up a investing of see well? process?

Thomas Peterffy

yet, not has in happen happened That is the future. likely to but it

Kyle Voigt

year Thomas Is or? we that could something expect this

Thomas Peterffy

year. next More likely

Kyle Voigt

Okay.

did Brokers that revenue but your And us total could move sort a to help much of -- if on you frame how is relationship? they self-clearing just just from of again, just Tiger generated model, unnecessarily

Thomas Peterffy

to -- I it's think this. per say about it's great it would it's deal about about year. million less than not have sorry I -- $XX it's a is calculate I --

Kyle Voigt

then And on great. it's last China. for Okay, a follow-up just one me

growth you in think quarter? dropped I your last fourth XX%. any quarter, the from change the account that your China disclosed from Has there Mainland fund to -- client's by been ability in accounts those China Mainland first in

Thomas Peterffy

far. Not so

Kyle Voigt

Okay, thank you much. very

Operator

next Point. our from And Chris question Allen Instructions] with [Operator Compass is

now Your open. line is

Chris Allen

your the quarter. table, just just think were is to forward? this the perspective to wanted I mix well? taking mean Or an revisit your about trying from into off fairly XXXX steady risk just guys. afternoon Good down from dipped and trajectory that average perception factor customers loans moving over as does I account is the this what which margin

Thomas Peterffy

market customer off of last was risk taking end the that But It always at reaction down and to of as is delayed. No. year. result the actually mostly came the an end a customers

Chris Allen

it. Got

Okay. compares pickup risk just the understand and from one. of quick Is And prior borrowed fourth one a to it note moving you're seeing appetite quarter in you securities how it's stock think there why the nice lending The then was down that -- quarter line, but there? in forward? the year-over-year, saw I about right moving increased kind direction. you when to the anything level Is

Paul Brody

shorts So we're One aggregate a our for carrying of risen. our factors is amount of here. that that has the couple customers definitely

fully securities lend benefits we call split where long side, the or Stock the where either we with Yield the customer paid margin that's have On we very the the program we Enhancement opportunity-driven.

which from the percentage-wise you're as out activity did market over just are in quite a because you're they in income that lend rise, cash the rates get collateral driven up hot my I stocks know then simply touched interest as more the lend hard taking that as XXXX we talk out. And take-in customer funds a opportunities other before of that The stock the certainly those cash become much in it when for on you whose segregated and one in the collateral. to it's on and protecting You so that bit market, they income very you lent ends securities, by overall. borrow, profitable factor more out to few is

ends it hikes than point, a curve anticipated the where And and we produces flat see yield it interest in forward no going this funds vantage more from before. Fed for seg a it up quite did So maybe while.

we to change again. that wouldn't to So started continue expect until the phenomena rates

Chris Allen

Okay, thanks.

Nancy Stuebe

That Chris. your question, answers

Chris Allen

Yes, I you. good. all Thank am

Operator

showing you to Stuebe any much. final to remarks. questions Nancy And the I the queue. very Thank for in turn further like would I'm her call not back

Nancy Stuebe

today. participating for everyone you Thank

will this our be replay reminder, on available a for As call website.

you will you version again our our tomorrow. quarter-end. a We Thank of be talk site to will posting and we transcript also next clean on

Operator

thank And a conference. in and program with all and Have may that ladies wonderful you the This concludes for day. you disconnect. participating gentlemen, today's we

Interactive Brokers (IBKR) 16 Apr 192019 Q1 Earnings call transcript