Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q1 2018 Earnings Conference Call Transcript

Apr 17, 2018 • 04:30 pm ET

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Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day ladies and gentlemen, and welcome to the Interactive Brokers Group First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder this conference call is being recorded.

I would now like to introduce your host for today's conference, Director of Investor Relations, Ms. Nancy Stuebe. Ms. Stuebe, you may begin.

Executive
Nancy Stuebe

Thank you, operator, and welcome everyone to our first quarter earnings call. Our earnings were released today after the market closed and are also available on our website. Our speakers today are Thomas Peterffy, our Chairman and CEO; and Paul Brody, our Group CFO.

As a reminder, today's call may include forward-looking statements, which represent the Company's beliefs regarding future events, which by their nature are not certain and are outside of the Company's control. Our actual results and financial condition may differ possibly materially from what is indicated in these forward-looking statements. We ask that you refer to the disclaimers in our press release. You should also review a description of risk factors contained in our financial reports filed with the SEC. I'd now like to turn the call over to Thomas Peterffy. Thomas?

Executive
Thomas Peterffy

Good afternoon and thank you for your attention today. Even though I know it is hard to follow the accent and on every occasion, it takes a long time for us to correct the record. Therefore to make this process easier on you, starting this quarter, we are going to do something new. My script, which is the result of a joint effort between myself and our able (ph) representative for shareholder, sorry, investor relations, Nancy Stuebe, I am asking Nancy, to read the script. As in the past, I'll remain on the call and attempt to answer any questions addressed to me. Nancy?

Executive
Nancy Stuebe

Good afternoon and thank you for joining us for our first quarter 2018 earnings conference call. This quarter saw the long awaited return of volatility to world markets. We have said for several quarters that our strategy has been to grow our business in all segments to get as many accounts on our platform as possible, so we could take advantage of volatility when it returned. In this quarter, it did.

The VIX volatility index rose to an average of 17.2 this quarter, up from 11.7 last year. Volume in our brokerage business rose 48% in options and 53% in futures over the last year. This compares with overall Options Clearing Corporation volume growth of 33%. Our stock share volume rose 28%. The strength and scale of our platform, which we designed to handle trading volumes many multiples of what we have currently helped us take advantage of this activity. This also explains why, while many of our peers had service interruptions during the busiest times in February, our customers had no such issues on our platform.

Our cleared DARTs rose to a record 876,000 this