IBKR - Earnings call transcript Q4 2024 | Interactive Brokers Group, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Interactive Brokers Group Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Nancy Stuebe. Please go ahead.

Nancy Stuebe

Thank you. you call. us thank quarter our and earnings XXXX afternoon, for for joining fourth Good

today Thomas Paul us on available our I Joining at are be the President Milan and will X and Galik, business, Chairman; our and CEO; will Milan's Q&A. and presenting Brody, all CFO. Peterffy, our comments our be Founder

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

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

in of and automated You diversified, markets securities Interactive fourth came in a factors number quarter, interest contained reports of leverage clearly global annual SEC. In in continues. should We a board our the fourth demonstrated of the international platform. also Brokers XXX,XXX description XXXX, a power fully risk XXX,XXX accounts filed record the review in financial ads. quarter with alone. The added the on

up markets equity of rates, the finished XX% and securities first with led on year to comfortable we taking $XXX $X.X increase of billion, was risk. anticipation $XXX year billion time client Our the over actively trade with and in an the from trillion. Rising last to clients lower to be

leverage exposure using increasing revenue. This to increased on their in into fee various our on which to and margin assertive loans, financials. translated markets, to to more exposure addition our In positions, chose more they take strength take

XX% the first time, over reaching margin quarter. Our the while for rose a quarterly pretax pretax record, was billion income our for GAAP to $X

highest net the we the achieved $X in billion time revenues the brokerage margin, pretax the full and earned by industry. over far, For for year, a XX% first in

worldwide. several we added enhancements Over multiple new and the past have products quarters,

various types. have deal the needs spent our understand of great to of client We a time

portal clients' helps of which with is adviser that come modeled and feature, management multiple features our have allowing generative added integrated with added tax automates that and We thousands enhanced portfolio simplify client tool, communication. We builder summaries clear data To in burdens. adviser the There generate multi-stock financial FAs more our a reports consistent creation reduce of to commentary and users and personalized portfolio date, analyst tax that performance a be We tools will XXXX. AI-powered applying accounts. our tool integrated For across strategies we detailed portfolio generated commentaries. commentary. clients, rebalance models improve harvesting showing here loss to

For our its our clients and ATS, options, to increasing to have steps new we X achieve better options pricing. providers to trade capability added liquidity

stock can gainers now session, losers during support other For top after-hours session. groupings the scanners traders, and price see our in overnight the our so clients trading movement and

do as application investors PEA majority For Hungary. international the products easier and have individual in prospective Hebrew be we of Hungarian, who for Arabic, coming. Broken by geography, More of and year, States French, the previously down are the non-French of accounts added Italian, accounts, to this in alphabet accounts come doors based on And with our to our France, comfortable have will board, United to make may clients translated accounts English. the outside not savings popular account opening including it for more first like we so. and we languages, into TPSC introduced U.K. accounts are soup brokers we an in ISA be

Asia, grew growth quarter, account seen our our Of want fastest equity investors accounts with available worldwide client introducing again as in the and, application of X XX access particular, the markets. is international fastest second. Our U.S. with close brokers for by now a again numbers was client client once individuals, Europe languages, facilitating to growing geography, segments, followed in in global customers. By in outreach potential and fourth

we advisers. Overall, in the financial last for exchange experienced was client net productive and quarter. income added by again by proprietary the We growth trading quarter. advisers another equity follows traders which launched for Hong our Kong On side, We individuals led fastest interest options. grew by growth followed was fastest, while individuals Commission IBrokers. the followed Exchange, Saudi algorithms launch on Malaysia IV financial

in back we a in note, also this Hong began As Kong offering May. cryptocurrencies year

for easier [ British began banking We offer accounts. for are fund for Yuan funding. this account And deposits deposits, pound offshore it EBDA Chinese to clients to ] Hong and plad dollars and focused on quarter, and euro for open making Kong euro

euro, Our ones, trading crypto used hours. are in stock the XX/X, overnight We for XX,XXX from convenience in to during consider clients them dollar, ETFs these to of We over the expectations XXXX, we other corporate expect around we'll vital. expanded for British already asset And U.S. the and denominations world, Swiss meeting and for and and pound classes. bonds stocks franc U.S. expanded offer particularly same difference. younger and government U.S. contracts hours XX/X

and also Smart, called one specifically quarter, Overnight hours. a This we to expanded our introduced order cover overnight types new trading

the futures, willingness products changes these extend trade trading await other For options only like on of exchanges, hours. and which we to only

many regulations. create, ready least for be their the projects we are X when around update we There to jurisdictions programming add they the as world, at operate and will different numerous are are. We regulatory in

on of more schedule often, on well We ahead of all or them. are time

quantify on on economic, systems is created climate is the real-world to allows X way trading is finally, different measures and a seriously, entirely and ground one take have to ForecastEx. an reprogram class, provides ties employees a new verified with to multiple on to react outcomes. advantages this regimes tasks. And third-party extremely and to on expectations these Our dedicated by measurable comply like close outcomes. special program note programmers or XX our We that over we CFTC, on basis the and of regulatory and predictions regulated continuous ability our in very which that asset market-driven a languages that our exchange, This political to

to with offers became our for occur We greater exchange. permissible. when election events access now significant Another believe ForecastEx predicting over We marketplace time. the accurate ready significant were most ambition, trading will it the becoming broker

initiatives new Our remains strong ever, as around and business pipeline the products resonated of people new as with has and clearly globe. our that

on We are rest to not stopping here achievements. our

the together to We achieve on, on forward have many with to look projects Brokers we goals team, to in work them XXXX. executing and Interactive

turn are CFO, enhancements as new call over and we I them. With share We Paul our to our that, eager Paul? will the to products introduce Brody.

Paul Brody

joining Thank with start produced call. items our net record revenues for the a with $XXX We're going year. and X for release. pretax as of rose results million this the again record pleased to on quarter. Nancy. financial Commission Thanks this very much, we to and quarter, the income our the revenue also quarter you, Page revenues everybody, for We're

the printable in customers the significant multiple higher income product quarter, $X.X quarterly commissions unrealized to the customers, income. Several contributed up currencies. A FDIC and payments yearly order risk risk generated both with sweep despite in major of also million lesser the up record XXXX. other which by this our offset of million to higher of gain Net revenues of realized gain and their investment higher income of our has are of other exposure $XX $XX These mandated increase billion, record for higher as segregated reached considered a a million, on the environment gains led and a line quarter and per October by our excluded exchange the on were the been fees $XX our funds was For all flow continued our items year. saw noncore million previously risk and $XX net XX%, quarter XX% nearly year, was here continued $XXX over $XX the to of categories customer partially the primarily mark-to-market interest programs. Other the which gain in therefore, and And paid for balances. the cuts for portion a extent, in cash these on currency million. margin of by was excluded to million well Together in in borrowing led interest trading of $XXX respectively. to XXXX, positioning across for rate items, onetime billion, strategy a a as to fees Tiger balances. Other factor and a options led adjusted quarter The interest earnings. services year, the strong losses were our full for and million a primary for on in XX% deposits year. In major net $X.X from the volumes and transactions. Brokers, Tiger from XX% reported last by This reflected we DARTs investments rising includes Without the income course sale million and loss a $XXX fees higher driven diversification account.

execution, the trade versus faster options. higher Turning and for year, due rose volumes $XXX execution clearing year than up $XXX expenses, million stocks costs. quarter and costs, and million in distribution the to Overall, to were last and commissions

than nontransaction-based higher was software profit for and the year is Adjustments commission excluding capitalization Due nature We of fourth not this periodically. rather slightly rebates this quarter clearing execution which have component. Compensation by usual. this costs, and in market a margin made earned GAAP than to fees, benefits and a XX%. development and of revenues million gross liquidity-enhancing of clearing the expensing to quarter, $XX be from lower million of exchanges pay some direct mainly that may quarter, for ago compensation $X $XXX of did transactional million from XX% costs under expense quarter. However, for up commission were about thanks distribution, the calculate orders. Execution revenue the the data from expense

expense. million quarter, capitalized would to of revenues XX.X%, included been comp the that net software XX%, was ratio been had expense $X have compensation For as of the and

For this in was the from year, XX% XXXX. XX%, ratio down

the up headcount was year. million, Our for from expenses $XX the December X,XXX, up G&A year quarter. were at XX, X% ago

million, a primarily to due expense full year, G&A For the litigation third quarter. $XXX the onetime was in XX%, up

Excluding primarily year for higher advertising this, on G&A XX%, million, $XXX up the was expense.

$XX $XX benefit Our XX% Public typical its tax taxes $XX range, company's of the million a pretax due Income the effective million. of company's rate and companies a XX% deferred as revaluation from the the public and for annual primarily reported quarter was reflects asset. adjusted. of sum was our operating below XX%, to as margin tax record million, the

on margin our $XXX strong to XX% in the growth by billion, our than sheet last driven balance Moving Page year the total lending. higher release, assets ended of year X at

attractive our our competitive uninvested place to level. We standing record propel new to helped also that interest credit growth an account and customers customer rates believe provide a financial by their XX% hold New with cash. balances strong

geared We generally quarter dividend capital XX% recognition in clients continue profitability and up trading million existing the X% from prospective value were futures and our X GAAP margin have see for drove in up our new and volume million our the in full DARTs sheet in statement, fees and margin, commission for business our share we We -- demonstrating no our in shares was debt, due equity to traded X.X the stocks. larger, the clients from versus the rose to growth long-term X. firm partners. In net X notional primarily income volumes our but interest. of while higher-quality order relatively and record or options is and low-priced quarter volumes with some X, other on in a prior business full year of can increase also billion. classes very on customer the was us the day million this million full industry was interest interest declined about quarter, year, a more last but second last options over our Growth stock In healthy to a contract increased other quarter, year, $XX.X million interest by and quarter, year. Stock computation, towards allocated Pages less of year that traded in for to rose customer from and across balance win our year, Page XX% supporting sizes contract believe names $XX data, some up share had or We volumes. numbers. income XX% for income considered XX% sheet of and volume cleared strength commissionable the per XXXX. NIM trades pink to other maintain higher. In Futures in as helping was our quarter our Total product average more gravitated while dollar to income from the growth, year, the versus operating well total $XXX with year. Page down ahead growth order the we for the volumes X% the XX% interest for you we stocks and of net up all share even for $XXX or income the as overall. On the XX% proportionately $XX appropriately volumes net year smaller prior classified shift $X.XX that is up include XX% last in net shows prior and to

the to on segregated in including cash reflecting benchmark offset and Hong income customer interest, balances. benchmark Europe, interest rates loan strength net U.K., cut cuts made Canada this interest banks cuts Our rates expense interest by lower partially U.S., quarter, central most Switzerland, reflects higher in Many rate Kong, year. the multiple margin this their cash and --

X% be average days, increase under the continuing cash portfolio the quarter segregated end. on U.S. The dollar XX% curve a interest the of overall quarter, the to Our first increase average XX though flattening part U.S. while during with income loan balances. rose in by balances, average inverted duration despite by treasury at a somewhat remains term our margin of medium yield interest declined in XX% in XX%

of majority XXXX, appear and the were X earned strategy of net we short-term collateral rose volatility We account and reasons: pay credit acquisition some between in million securities, the this we accounts market the focusing proportion to shorts; if assets on stock are balances a drivers lending typical the this as in on of first, to in value years interest to on because same Despite we segregated over maturities. on cash quarter of maintain about from we fourth more strong names not prior S&P including clients second, continue past as in the is accepting with looking paid overall we We interest does which successful tends interest revenue to rather year's and customers lending, allows that strong securities loaned cash. reflect hard-to-borrow performance basis; notional interest market up have lending we on a would maximize and in securities both years, what on seen cash lending earn market risk became relatively balances, total us the in merger of rose from quarter included our XX% near each yields their as activity. borrowed sharply IPOs, out. Interest $XXX tight customer raising net the by match million $XXX the rates and on and fewer than of smaller earned in of X interest the longer there what what to beginning and estimate have liabilities. Securities classified then higher trend, industry-wide, This under added been higher weakness additional put last X new for benchmark third, securities as versus rising on our from due lower are loan, yields the main growth. to

is customer noted on in quarter. new in current $XX.X a interest billion at qualified balances the have balances Fully U.S. to currently pay ago customers. dollar high cash, X.XX% billion rates we we the the on versus customer the As quarter year attraction past, $XX.X rate-sensitive significant ended

customer as this for not of Any Fed point would of net rate basis reduction of million starting is in balance cash in impact rates, dollars. the our of and December of XX% a market cuts rate at a future, sheet be point balances our of our X.XX% estimates Fed the that the expectations estimate the About decrease funds interest-earning that effective funds further this income. Note XX balances we $XX the reduce to is XX, growth rate in our impact. effect date. in interest given with in in annual for U.S. benchmark and changes assets estimate Now

deliver U.S. by currencies. We decrease million net in full high in conclusion, This the about non-USD income all business. those by revenues core a while XX customers each for decrease X% rate the firm another exclude also our net change our $XXX equity. In in the rates all quarter of relevant account estimates reduce benchmarks. simultaneously So customer financially in to to level, proposition point $XX would we scaling basis and continued annual value customer of a strong record million. effect those about year. This ability benchmark and annual the rate base takes would income pretax into and estimate decreases margin, reflects interest benchmark rates At our a interest on to leading sensitive grow net our decrease posted

Our open business and brokerage effective. what the of line business automating strategy be up while the with will we minimizing continuously expanding charge. And we what that, we continues to offer questions. for on as as possible improving much

Operator

And our Bank coming be Siegenthaler Instructions] today for [Operator America. of from will first Craig of question

Craig Siegenthaler

morning good all everyone. I or hope well. evening, Good you're doing

First, on modeling expenses. when have I a one

heading think few distribution pointed a it then the grow called it model prepared And you remarks, of prepared But DARTs. your rebates. commissions out any clearing how XQ? about us modeling release, So the you this negatives. of high-level in out look called because press did should to item execution, on a relative would line remarks, into than we thoughts and lot or you lot DARTs kind and commissions. In they fees, out slower In like as a

Paul Brody

Yes.

or for rebates, customers, by to the order show things through all like So are orders. changes while in the that, systems the some variable provided Generally, venues up of, contract. get provide that reducing best And generally do one. by routing smart routing it route Obviously, of they're pass I'll say, are would our can to, which that order costs, the volume. rebates different stock on customer. And venues that driven within those to orders, that are share the have many liquidity-enhancing price so per commission that maximizing But to those then can take per and we it's the there yes, in revenue.

But they're expense therefore, at the you paired. is side, somewhat only doesn't it tell whole the So you look picture. if

Craig Siegenthaler

build. follow-up, fast equity on should how on my And the this share then And this It's new just marketing fund at I hedge capital any thoughts building? the future? given updated keep watching we is your it. And $XX now. for thoughts balance wanted just Got we your in prime billion expect really repurchases almost helping size? into efforts

Milan Galik

Well, share is to type of no plan repurchasing. there do any

future, We in that be course, consider of assume the stock it the will about that, dividend, $XXX,XXX, remain will, but increasing there. will price the

a far of we couple it As capital, the that reasons. strong as for different way like

For reputation. if clients never years. that business headcount to managers, to clients will And something by safe in for bracket have established were compete for large banks They a many bank. go They more be with have choice. been institutional blamed they're obviously wrong competing an barge with be XXX considered than to

our to have We to work reputation. hard earn

growing visible. have capital the company our and base. been it's We consistently

one assets. way that custodying their the signal balance That we Our sheet strong. they is a should player where us and to for consider marketplace serious are is we

the loans unlike the able margin us the is other do high benefiting banks the we so can capital using States. are fund way, uninvested in is to cash. of customers' All base United other States, United outside The that where the very

loans the Those on reasons we be to ever number large we are portion by a growing. those our why the So capital. X own like of fund

Operator

coming be our Budish Barclays. Benjamin And of line of will from the next question

Benjamin Budish

as seen I just on guidance accelerating give tend the of a of like it's just remarkable account Maybe to XXXX. you course per growth I kind but of know you're get curious year was your year over to not the what kind and look the of in could growing thoughts first, momentum of larger. on we've basis, kind

maybe seeing what pickup a key you about of or prepared kind maybe in advertising in you the in you're think the unpack of word a Can I bit the math And talk bit think 'XX? are of you So remarks where momentum a spend. little you out and of you're called just -- press curious, leading? do factors in the

growth like curious could there your this So look what year. on just thoughts are what account

Milan Galik

slowly necessary to Well, Obviously, our spend individual attract increasing. accounts. will marketing be the it's

why it's going to So up. that's go

We expect a number accounts. of the steady in growth

continue enjoyed could is a enthusiasm prices As market, stock ever-increasing see, There the prices partially the related a high lot in you partially this administration the past in we of market, the the and market, the really number. the related expected a U.S. to quarter, change well. business as that is be to considered are to result, to in of largely do markets pro to

so lot accounts, a sitting new bullish accounts. were are decided sidelines growth investors account open start continued on some there are opened, of on an to and the accounts the we So of who investing, being the

Benjamin Budish

Got follow-up for quick modeling Paul. it. X Maybe

the expense. I called line, employee a and think out for comp benefits you capitalized

going into would QX about think of kind level the you the lower? give we XXXX point? first curious, of it guidance kind couple helpful. of kind quarters as be does Just reset could Just Or starting the of and the any year, there of in should

Paul Brody

prior which only does was our than Right. hiring, along year. Well, X% higher go with it

way measured periodically capitalization the can and year quarter. full best be in the is look is think to a I on because it added at given only the

going Our $XXX best average million for XXXX point for your probably forward. was and starting quarter, that's a

Operator

from will question James next Sachs. line of our And Goldman Yaro be coming the of

James Yaro

present you've for Milan aspirations and questions which more bulge for this starting the on And could XXXX. XXXX? offering, then growth is you expects, meaningful threat brokerage of clearly business expanded product business? this road deregulation in the part prime If -- in are prime just in of a what high-touch of to brokers, there's just map the the Maybe the obviously taking market the Paul, here. the which on

Milan Galik

newcomer is the dealing Stanley. have large banks, Sachs, with established really as -- with see I in Goldman a to explained a what significant an how a dent regulation the Morgan our cannot competing bit be expect not small earlier, would impact would very I to really able make we're I business.

impact regulation, not our that So would I the think business do way.

as the did this hedge glove offering you mean far the As funds? white product, within for

James Yaro

right. That's .

Milan Galik

that of capital in you that we Well, the done instead past tell we result it's We events in pleased going. organized, do that. And changed the Otherwise, one that we in way XXX, those doubled We the event way event. capital have of event. advertise introduction had things of events is we changed with the last I the the that participating the we approximately months. the We we was revamped can accredited the is participants, investors number quarter. of offering of have XXX are do white we name the the introduction had glove the XX how

week. And us. with is average direct to $XXX hedge provide issues funds talking handle they experts. onboarded approximately We adjustments. subject We we access make on to XX of They goal better here to matter we a talk service more, the them assets have with like the million. The to as particular them different all appreciate

it's For that pleased are we're going way the the example, now APAC funds us, for to and algorithms. requesting openly hedge with talking the directly stocks have offering algorithms [indiscernible] in recently, just so fact similar far. We're more feature. that started region, was due that that we to and

James Yaro

to very Maybe Excellent. That's the just margins. clear. turning

for margin? these of did efficient Is an margin you rise levels? to adjusted see that to horizon Can Your it there rise the XX.X%. off best-in-class continue

Daniel Fannon

we we we also service clients. they that very have help the line. go for. And ever That number our clients at is to can we're large compliance, to we're trying we would automating them not given the make personnel What increasing, that Well, to to ongoing the our so is up. are questions that jurisdictions to not where lowest we expect just of offer of need number do We costs to optimizing help their customer the on obviously the to delivering value are not which number when to the have our operate. services I pay can prices. But everything obviously attention sure sufficient have answer that

would to higher. I go that not So expect number

Operator

line be And from UBS. our of of the next will Hawken coming question Brennan

Brennan Hawken

very really solid market. the Margin very, despite shown balances growth have volatility the in

recent should your thinking on in And how seen quarter-to-date? basis? for -- you versus history? be when have customer margin that about a penetration we trends be back, thinking you So years, we taking base go-forward how should What you has maybe how a think about step about changed

Milan Galik

Margin balances have derivatives. We increasing. by their feel the been have That's to not the aggressive of our but stocks been assertive due appetite putting trading positions in more margin, positions by on Eskom only on clients, -- last market and of was But we August positions. in there clients risk back sharp remember, came quickly year, they rather their down, a things as reducing back stock saw home. sell-off our and quickly come the turns

be because the But example. market change would we administration, So for I stock mode scan of is of what expect for to the some now, amount in with the seem of correlation doing. the

all level maintained higher. equal, balance, at margin this be I being slightly or So go think will

Paul Brody

base, impact on have some and you different we larger those prior of could the cohorts decline margin you when maybe customer about versus think cycles balances, And do that what equity, When we portion. advisers think penetration are metrics? your a about compare expect of

Milan Galik

Well, obviously, financial advisers -- trade of not. them, some margin, of them on majority do a

the have top to them I aggressively. to would trade We expect traders, continue

large have more of accounts, ones, We individual less ones, ones, sophisticated sophisticated small sorts all ones.

continue I would again, more to to have would the the hedge you expect funds, sophisticated expect And I addressing. obviously, to continue then ones, which, leverage. deploy So

Operator

Dan coming will the from question of of next line Jefferies. our And be Fannon

Daniel Fannon

following were just about prime bit you've with some of here that talked on product in in XXXX, the brokerage -- that the of market investment things a up as So quarter. fourth think to come areas well you've development, as the you about as in

into that the product individual of on focused on curious really see development XXXX? and So the about just investment you side for areas that or

Milan Galik

continuously Well, question, is that we the looking we them, that can pass improve our the all -- listen to We from the we're we is it service. it what for. that that time, client look receiving feedback segments offering. they're all the ourselves at And and ask how the we all that carefully feedback we segments

bulk obviously are number is So lot investments. And trading is when of there increasing the is then a activity a back into really we The that what of is end. the of discussing work the we're goes that up accounts fast, fast. on doing going client-facing the work

make which to systems that have the very our spiking, be can spikes. in handle sure load often We can

in You the all busy and you when sudden, computers day can really got of on a hot, normal all a are have speak. so day to

systems making reliable, that our of sure more departments, work to service pay no we outages very in And client We we that on our to significant we employees have that is those number systems and departments. our that compliance have are have then the significant to operators attention work backups. have

And have them right of we not the world, a tools. do as them less front hire to automated give as competing many so of we to that have

So different where that these reactions. attention sort is of all being is paid to the

Daniel Fannon

kind update And for you thoughts M&A Understood. inorganic today? then an Can the give follow-up on, and your as potential kind inorganic at current us a of you've And combinations? on periods previous of maybe talked opportunity about growth. market

Milan Galik

open so remain M&A far. We to

quarter a to looking our really last been consider did any year. way. not completing We have open will in we we that not at X We competitor. successful. the of significant but opportunity were last know, you There succeed As we was comes remain transaction, it, in

Operator

Piper of coming our Sandler. question And Moley the of from will be Patrick line next

Patrick Moley

I the of market. one markets It like on people and the lot into a prediction platform. brought seemed election the the had So x forecast prediction just

outlook you're map just give I next whether or product you on So kind we for update and traction on should be of hoping things milestones that road kind out any there? us looking your seeing year there's of the an was for there, the could

Thomas Peterffy

going Well, slowly. are markets the prediction

systems our we big out being that devoting a do to are believe We not to carefully foot. really we way. to. want build on And I'm a it market, that really, my but very And personnel our in we to and are. time That's careful slowly what it their own so and that's do is huge step be can and we this what going

Patrick Moley

leadership on is era administration, There's seems the follow-up of firms, Crypto. And the you the of change a favorable to in Great. crypto incoming I excitement like then new lot the trading crypto guess, a if in to right. will. a All around just foster more going here. maybe SEC kind It

of robust now How you offering? at if was to right look right to about some are would areas, offering to comprehensive more And Your all, now that the compared expand legislation, what relatively feeling offering? the others. you is if there be

Milan Galik

the our I'm a that's cryptocurrency cautiously Union, obviously the what to to offer to changes by the in is optimistic customers what's the plan going about Well, next. but trading affected happen not administration. immediate European in

just last X investors them of hard in really There obviously regulations I work service and make up. obviously I are think somewhat well will need clear, with force as that will the this area as for for sure the area announced days, There think improve they companies are been was to that example. to that the And today. that like the not things firmed are issued And mean pleased few be have the task development. rules them concerning. the that are I'm ours. There these coins,

But that I think that cryptocurrency looks going be it strange. under happen. if firmed continues somewhat is give to the clarified name, industry, may about the optimistic bad regulation in fact It and overall, a I'm to up. of

Operator

coming from -- of from of question the will Chris be next Allen Citi. our line And

Christopher Allen

percent percentage I are product U.S., the any there my offering a would maybe regulation, -- provide perspective? And terms platform rough the Apologies, crypto your was customer be follow up maybe can you in that where from color if to expand question. a on in set on the crypto currently? actually base, like could opportunity your [indiscernible] trading just of Any how

Milan Galik

there cryptocurrency mill interest traders. They regulatory attractive in or make not. that to the have of wasn't currently our for which available more and the number really that for because we to I would if example, our they Bitcoin of whether traded call increase it trading, would platform, as platform are At would offer heavily would the on are It's clients to considered moment, us coin stable are the clarity make Bitcoin, not platform, a expect Solana, Ethereum tokens on and able be to which can we security sufficient the heavily. I Cash. the run

those So will will of kinds be get clarified. questions --

to tokens critocurrency trading focus expect able future more and I traders cyto a be currencies. really as who on us list result, So attract to in the

expect widely increase Another a become to set we allow It's able X%. assets thing crypto the is be very more as we single for figure. that of But would crypto assets a higher. I would is number to accepted, the percentage us raise invest in number the that account to moment, to assets. At conservative that the

Christopher Allen

lending, a activity. then M&A lower and follow-up, of headwinds as from IPO just SEC And recognized levels on the

XXXX compare Just your trying Has better for just what expect you like look environment, lending it's it capacity to now of the about is [ 'XX? could a [indiscernible] through potential think -- we growth kind with and the expanded in move 'XX? many of the 'XX ] versus to account I'm end as which how in curious, lend

Paul Brody

the more more expands that by positions. stocks It our because rise yes, would and markets participation hold absolutely And continue to the are to simply attractive to with growth go who X our Yes. base going on broker-dealers is expect primarily tend banks. simply account in to clients out, other and customer that hold of for long and those we lending our

Operator

And line our next KBW. Kyle will Voigt be the from question of of coming

Kyle Voigt

If that expense and know expense of year $X question you growth. you growth the if some just million a full the fixed onetime you exclude the XQ comp of I for noted in had the the calculating of some we're So XXXX. fixed pretax items commentary third XXXX. call, quarter But on could of roughly on specifically gave XX% in even earlier maybe margin investments I for ask we kind and that

generally expense versus historically. with I into fixed So look as there to posted low accelerate XXXX? I rate think should that's low that you line is we whether growth to growth expense or frame that level double-digit in bogey, out that decelerate double-digit core any way relative guess

Milan Galik

to expect accelerate. it would not I

likely above. you think and we to for before, obviously have are we the that pay doesn't will I human will obviously if assumes you in just more see That in resources than inflation and the next have job seen. is what kick to pay talent, We pay We we attention we remain that the can. we to talent or to either attract competitive. It and to continue the that. will best do market best attract our the market rates, rates year,

do on not Given to automation, we do have choice our a that. focus just

Paul Brody

I might to just a that. is advertising of that, component add that

be of a extent to do so the that expect to somewhat driver. will we more, And that

Kyle Voigt

know only sales last I would the but since in not then. just consider very And would stock was increase Thomas, help curious whether public that in float. stock open any to as perform asked quarter my still for and and if And for market follow-up, the as this well, strongly even blocks to transactions. continues But you so, be to

Milan Galik

do not Thomas see. [indiscernible] I

Thomas Peterffy

in and the reaches right be will would blocked, do price. It when price the I I believe what is that

Operator

the you. does like go conclude today's would remarks. to Thank that question-and-answer I session. call for Please closing ahead. And over to turn Nancy back

Nancy Stuebe

Thank you, everyone, for participating today.

will will we be version our Thank replay next end. will on of this to you website, site and talk we for also the tomorrow. a transcript and posting a As quarter again, clean call you available on reminder, our be

Operator

today's Thank you for conference joining call.

Have disconnect. a now may evening. good You

Interactive Brokers (IBKR) 21 Jan 252024 Q4 Earnings call transcript