The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patrick Moley - Pipler Sandler - Analyst
: So I thought, we'd start with the macro, lots of uncertainty right now. Geopolitical tensions are rising, interest rate uncertainties persist, and we
have a US presidential election coming up. What are your thoughts on the current state of the global economy and what do you think is in store
for markets?
Question: Patrick Moley - Pipler Sandler - Analyst
: Very different take from someone we had up here earlier. But so maybe keeping it high level, big picture, how do you assess the regulatory landscape
in retail trading right now? And we kind of know what we're going to get with both candidates, but do you, how do you think about regulation
changing based on the outcome of the presidential election and just the overall regulators' thoughts on retail trading?
Question: Patrick Moley - Pipler Sandler - Analyst
: All right. So digging into IBKR's business itself. We've seen sort of an odd dynamic in May with this kind of retail trading spike, could you just sort
of talk about what you're seeing across your platform? I see it doesn't look like you've think there was a retail trading spike.
But in the news, we've seen this kind of like mini meme stock rally, what have you seen among your-the traders on your platform, what's the appetite
been like?
Question: Patrick Moley - Pipler Sandler - Analyst
: Was still 20%, 24%, I think annualized?
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JUNE 05, 2024 / 1:30PM, IBKR.OQ - Interactive Brokers Group Inc at Piper Sandler Global Exchange and
Trading Conference
Question: Patrick Moley - Pipler Sandler - Analyst
:
Question: Patrick Moley - Pipler Sandler - Analyst
: 30%, okay. So what do you think is driving these traders to your platform over other platforms? And how do you kind of expect that to play out
through the end of the year? And then after that, I do want to touch on some introducing broker relationships, but I'll leave it there.
Question: Patrick Moley - Pipler Sandler - Analyst
: And then touching on the introducing brokers, any update on where you're at? I know there was two that you were working to onboard. Any
update there and have those had any impact at all on overall account growth this year? When do you expect that to kind of show up?
Question: Patrick Moley - Pipler Sandler - Analyst
: Alright, moving on. I want to touch on the competitive landscape in the US. One of your US competitors just completed, I think the largest integration
of customers in the industry's history. Another has recently started matching deposits and lowered their margin rates to be more competitive to
the platforms like yours.
Can you just speak to the competitive landscape and your thoughts on some of these competitive moves from your peers recently?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
JUNE 05, 2024 / 1:30PM, IBKR.OQ - Interactive Brokers Group Inc at Piper Sandler Global Exchange and
Trading Conference
Question: Patrick Moley - Pipler Sandler - Analyst
: I don't think you're alone there.
Question: Patrick Moley - Pipler Sandler - Analyst
: Sure. Staying on the topic of competition, both Schwab and Robinhood, like you mentioned have recently either launched in Europe or said that
they're trying to take a more deliberate approach there.
You talked about in the US how competition is good, it brings more people into the system and you end up benefiting from that. So can you talk
about the moves by your competitors to move overseas and what that means? Does that impact your approach to competing abroad at all?
Question: Patrick Moley - Pipler Sandler - Analyst
: So that's maybe a good segue into my next question, which was on options appetite internationally. I think in the past, you've talked about how
international investors are maybe at the earlier stages of options adoption relative to the US, how do you think about that kind of evolving over
time? You think there's a lot of runway for derivatives trading with some of the APAC and European investors?
Question: Patrick Moley - Pipler Sandler - Analyst
: Sure, alright. I want to ask you about capital return and M&A. You're sitting on a healthy pile of cash. Last quarter you increased the dividend for
the first time since initiating it, you've also indicated that M&A is a possibility if the right opportunity presents itself. So can you just kind of give
your updated thoughts on M&A and is there anything you've looked at recently? And what are you thinking in terms of the criteria for any potential
targets at this point?
Question: Patrick Moley - Pipler Sandler - Analyst
: Are you saying you would be willing to take a look at those opportunities?
Question: Patrick Moley - Pipler Sandler - Analyst
: And it's still realistic to think that, given some of the dynamics you mentioned, there still are opportunities out there?
Question: Patrick Moley - Pipler Sandler - Analyst
: All right. So we have a couple of minutes left, maybe a big picture. I know that you, maybe aren't much of a believer in AI, but you're--
Question: Patrick Moley - Pipler Sandler - Analyst
: You didn't say that.
Question: Patrick Moley - Pipler Sandler - Analyst
: Okay. So that's going to be my question. You're obviously someone who has driven technological change in markets. What do you sort of see as
the next big catalyst that's going to drive--
Question: Patrick Moley - Pipler Sandler - Analyst
: Good. I'm glad we cleared that up and I apologize for mishearing you. (laughter) But I think we're out of time. But Thomas, thank you so much, that
was great. I really enjoyed it.
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