Interactive Brokers Group, Inc. (Nasdaq: IBKR) released its Electronic Brokerage performance data for November. The company reported a notable increase in daily trading activity, with Daily Average Revenue Trades (DARTs) reaching 3.3 million, up 74% year-over-year.
DARTs Surge, Equity Rises
Client equity stood at $575.9 billion in November, reflecting a 42% year-over-year increase. Client margin loan balances grew to $60.2 billion, while client credit balances totalled $118.8 billion, including $4.7 billion in insured bank deposit sweeps.
The firm also saw the number of client accounts rise to 3.25 million, with clients averaging 227 annualized cleared DARTs per account.
Earlier, Finance Magnates reported that Interactive Brokers Group is among the firms considering the acquisition of Saxo Bank. The Danish trading platform has attracted interest from investors such as Altor Equity Partners, Centerbridge Partners, and Interactive Brokers.
Preliminary bids have been submitted by these firms, prompting speculation about a potential transaction. Sources indicate that Altor and Centerbridge have made a non-binding offer for Saxo Bank. However, Saxo Bank has not yet confirmed any commitment to a deal, and the situation remains open for further developments.
Average Commission of $2.7
The firm reported an average commission of $2.7 per cleared Commissionable Order, including exchange , clearing, and regulatory fees. Exchange, clearing , and regulatory fees accounted for approximately 56% of the commissions on futures products, including options on futures.
Peterffy Predicts Future of Prediction Markets
Thomas Peterffy, Founder and Chairman of Interactive Brokers, appeared on CNBC to discuss the market rally following Donald Trump's election victory. Broker stocks, including Interactive Brokers, experienced significant gains.
While acknowledging that the surge may not be fully justified, Peterffy highlighted a more favourable regulatory environment as a key factor for future market growth.
He also addressed the rise of overnight trading, predicting that liquidity would soon match daytime trading. Additionally, Peterffy discussed the potential of prediction markets, suggesting they could surpass equities markets in size within 15 years, though liquidity remains a challenge.
