Category Archives: IBKR

QUICK BLURBS [ADS, AXP, BAC, IBKR, KMX, SVU]

(4,146 words) [IBKR] Partly due to an exceptionally low volatility trading environment, which has made it difficult to earn profits and which Petterfy says may continue “indefinitely,” the company is winding down its options market making operations. While the company will use the excess capital from market making to further support its brokerage operations, the latter […]
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[IBKR] LOW VOLATILITY WEIGHING ON COMMISSIONS; VALUATION STILL ATTRACTIVE

(960 words) IBKR began as an electronic market making platform for professional traders at a time when market making was still mostly being conducted via open outcry.  Its foundation of technology and automation ensured transactions at the lowest cost and fulfillment at the best possible price, core capabilities that it later brought to bear in launching […]
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IBKR IS IN CONVERSATIONS ABOUT SELLING OR JV’ING ITS MARKET MARKING BIZ

(917 words) IBKR (12/7/2016: GS US Financial Services Conference) In 1990, electronic exchanges began to appear in Europe and Asia while the US remained on open outcry.  Petterfy interfaced its systems to those foreign exchanges and made markets in those exchanges.  Three years later the co. was running a large electronic network that included most […]
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[IBKR] SOME OPINIONS ON AMTD / SCOTTRADE / IBKR

(675 words) Before NPV’ing the tax shield, AMTD is paying around 3.8x revenue for Scottrade’s non-bank assets, implying Scottrade revenue of $710mn.  Co. says the “addressable expense base” at Scott is a whopping $750mn, which expense base can be cut by 60% within 3 years of close (w/ the biggest source of synergy coming from […]
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