Interactive Brokers

Company Background:
Interactive Brokers Group, Inc. (NASDAQ: IBKR) is an automated electronic broker and market maker in equities, options, futures, bonds and foreign exchange around the world. With over $13 billion in market capitalization, IBKR trades 9% of the listed equity options volume worldwide, executing, clearing, settling and accounting for over one million trades per day. The Company’s brokerage operations are conducted by its Interactive Brokers subsidiaries and its proprietary market-making operations are conducted by its Timber Hill subsidiaries. IBKR employs approximately 960 people and is based in Greenwich, Connecticut.[1]

Interactive Brokers (“IB”) is the largest U.S. broker, measured by trades, offering direct-access electronic trade execution and clearing for active traders, institutional investors, financial advisors and introducing brokers. IB serves more than 280 thousand customers in trading securities, commodities and foreign exchange in 21 currencies on over 100 market centers in 24 countries around the world. The firm leverages highly automated systems it builds for all aspects of its business to maintain a low cost base as the business expands. The business is in a stage of rapid growth.

Timber Hill is a market maker in equity options, futures and index products around the world. Timber Hill was founded on the principle that a computerized trading system that could process pricing and integrated risk exposure information quickly would allow the firm to profitably make markets in many different listed financial instruments simultaneously. The Company’s market making is focused on capturing bid/offer spreads in the course of providing liquidity in listed financial instruments. Timber Hill has revolutionized trading in exchange-traded equity options and equity-index options and futures through the use of technology to automate and integrate trading and risk management functions.