Interactive Brokers Group (IBKR) 10-K risk factor changes: FY2024 vs FY2023

We currently have approximately [removed: 107.0] [added: 108.9] million outstanding shares of common stock.

Assuming no anti\-dilution adjustments based on combinations or divisions of our common stock, the offerings referred to above could result in the issuance by us of up to an additional approximately [removed: 314.0] [added: 313.6] million shares of common stock.

Mr. Thomas Peterffy, our founder and Chairman, and his affiliates beneficially own approximately [removed: 91.3%] [added: 91.4%] of the economic interests and all of the voting interests in Holdings, which owns all of our Class B common stock, representing approximately [removed: 74.6%] [added: 74.2%] of the combined voting power of all classes of our voting stock.

We are a holding company and our primary assets are our approximately [removed: 25.4%] [added: 25.8%] equity interest in IBG LLC and our controlling interest and related rights as the sole managing member of IBG LLC and, as such, we operate and control all of the business and affairs of IBG LLC and are able to consolidate IBG LLC’s financial results into our financial statements.

The tax savings that we would actually realize as a result of this increase in tax basis likely would be significantly less than this amount multiplied by our effective tax rate due to a number of factors, [removed: including] [added: including, for example,] the allocation of a portion of the increase in tax basis to foreign or non\-depreciable fixed assets, the impact of the increase in the tax basis on our ability to use foreign tax credits and the rules relating to the amortization of intangible [removed: assets, for example.][added: assets.]

Based on facts and assumptions as of December 31, [removed: 2023,] [added: 2024,] including that subsequent purchases of IBG LLC interests will occur in fully taxable transactions, the potential tax basis increase resulting from the historical and future purchases of the IBG LLC interests held by Holdings could be as much as [removed: $12.4] [added: $31.2] billion.

The tax basis increase of [removed: $12.4] [added: $31.2] billion assumes that (a) all remaining IBG LLC membership interests held by Holdings are purchased by us in one or more taxable transactions and (b) such purchases in the future are made at prices that reflect the closing share price as of December 31, [removed: 2023.][added: 2024.]

[removed: Since] [added: From] the second quarter of [removed: 2011,] [added: 2011 through the first quarter of 2024,] we [removed: have] declared and paid a quarterly cash dividend of $0.10 per share.

Although not required, we currently intend to pay quarterly dividends of [removed: $0.10] [added: $0.25] per share to our common stockholders for the foreseeable future.

During [removed: 2023,] [added: 2024,] approximately [removed: 30%] [added: 31%] of our net revenues were generated by our operating subsidiaries outside the U.S. We are exposed to risks and uncertainties inherent in doing business in international markets, particularly in the heavily regulated brokerage industry.

We may not have the financial resources necessary to consummate any acquisitions in the future or [removed: the ability to obtain the necessary funds on satisfactory terms.]

Interactive Brokers Canada, Inc., Interactive Brokers (U.K.) Limited, Interactive Brokers Ireland Limited, IBKR Financial Services AG, Interactive Brokers [removed: Central Europe Zrt., Interactive Brokers] Hong Kong Limited, and Interactive Brokers Singapore Pte.

Ltd. are subject to similar change in control regulations promulgated by the CIRO in Canada, the FCA in the United Kingdom, the CBI in Ireland, the FINMA in Switzerland, the [removed: MNB in Hungary, the] SFC in Hong Kong, and the MAS in Singapore, respectively.

Regulatory bodies include, in the U.S., the SEC, FINRA, the Board of Governors of the Federal Reserve System, the Chicago Board Options Exchange, the CME, the CFTC, and the NFA; in Canada, the CIRO and various Canadian securities commissions; in the United Kingdom, the FCA; in Ireland, the CBI; in Switzerland, the FINMA; in [removed: Hungary, the MNB; in] India, the Securities and Exchange Board of India; in Hong Kong, the SFC; in Japan, the Financial Supervisory Agency and the Japan Securities Dealers Association; in Singapore, the MAS; and in Australia, the Australian Securities and Investment Commission.

We are required to interpret and implement extensive and frequently changing regulatory and legislative requirements in the U.S. and other jurisdictions in which we do business resulting in substantial compliance, regulatory and other risks and costs, including the [removed: hiring] [added: cost] of [added: hiring] additional personnel.

A failure to comply with these requirements and expectations, even if inadvertent, [removed: or resolve any identified deficiencies,] could result in increased regulatory oversight and restrictions, enforcement proceedings, penalties and fines.

We are subject to the tax laws and regulations of the [removed: U.S. and] [added: U.S.,] its states and municipalities, [removed: as well as] [added: and] numerous foreign [removed: jurisdictions in which we do business.][added: jurisdictions.]

These [added: tax] laws, regulations and treaties are complex, and the manner they apply to us is sometimes open to interpretations, therefore significant judgments are required in determining our provision for income taxes, deferred tax assets and liabilities balances, and other tax liabilities.

[removed: In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the countries in which we do business (e.g.,] [added: For example,] on December 15, 2022, the EU formally adopted the EU’s Pillar Two Directive, effective January 1, 2024, which provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Cooperation and Development (“OECD”) Pillar Two [removed: Framework;] [added: Framework,] and a significant number of other countries have either already or are expected to also implement similar legislation with varying effective [removed: dates), the possibility of tax controversy related to adverse determinations with respect to the application of existing laws, changes in our business or structure, and changes in the valuation of our deferred tax assets and liabilities.][added: dates.]

In the U.S., we are subject to rules including the Gramm-Leach-Bliley Act of 1999 and Section 5(c) of the Federal Trade Commission Act; internationally, we are subject to the [removed: EU’s] General Data Protection Regulation [removed: (“GDPR”),] [added: (“GDPR”) of] the [removed: Data Protection Act 2018 in] [added: EU and] the [removed: U.K,] [added: U.K.,] the Personal Information Protection Law of the People’s Republic of China, and other [added: applicable] data privacy [removed: rules.][added: rules and regulations.]

Rules regarding data privacy and security worldwide are continuously evolving and developing, increasing [added: in] complexity and, as a result, interpretation and implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future.

Eligible customers of IB LLC [added: or IBUK] can enroll to access a digital asset exchange and custody services provided by one or more CSPs to buy, sell and hold Cryptocurrency Assets in an account in the customer’s name at the CSP.

IB LLC [removed: does] [added: and IBUK do] not provide execution, custody or safeguarding services for the customers’ Cryptocurrency Assets and [removed: does] [added: do] not maintain (or have access to) the cryptographic key information and wallets necessary to access the Cryptocurrency Assets, nor [removed: does] [added: do] IB LLC [added: or IBUK] have any legal title or claim to those Cryptocurrency Assets.

\[Customer\] acknowledges and agrees that \[IB LLC\] is not responsible for any trading or other losses (including, without limitation, losses due to theft, fraud, cybersecurity breach, loss of control of private keys, or any other loss arising from [removed: trading] [added: trading, transferring,] or holding digital assets with \[the CSP\]) resulting directly or indirectly from or in connection with \[Customer’s\] relationship with \[the CSP\] and/or \[Customer’s\] trading or holding of digital assets, including activity or holdings in the \[CSP\] Account.

Starting in the second quarter of 2024, we increased the quarterly cash dividend from $0.10 per share to $0.25 per share.

the ability to obtain the necessary funds on satisfactory terms.

In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the countries in which we do business, the possibility of tax controversy related to adverse determinations with respect to the application of existing laws, changes in our business or structure, and changes in the valuation of our deferred tax assets and liabilities.

These new tax law changes bring significant risks and uncertainties.

‎

Customers of IBUK sign an agreement containing a substantially identical provision prior to being permitted to access the CSP’s services through IBUK’s platform.

[A loss event incurred by the CSP may adversely impact our operating results.](#CSPLossEvent)

[](#CSPLossEvent)

A loss event incurred by a CSP may adversely impact our operating results.

In March 2022, the SEC published Staff Accounting Bulletin No. 121 (“SAB 121”), which provides interpretive accounting and disclosure guidance to entities that have obligations to safeguard crypto-assets held for their platform users, whether directly or through an agent or another third party acting on its behalf.

SAB 121 requires an entity to recognize a liability to reflect its obligation to safeguard the crypto-assets held for its platform users and a corresponding safeguarding asset on its balance sheet, even when the entity does not control the crypto-assets.

Even though we are not responsible for the safeguarding of crypto-assets at the CSPs, our customers’ crypto-assets held at the CSPs are deemed to be in scope of SAB 121.

Pursuant to SAB 121, we measure the crypto-asset safeguarding liability and the corresponding safeguarding asset at the fair value of the crypto-assets held by the CSPs for our customers.

Because, under the guidance, the measurement of the safeguarding asset shall take into account any potential loss events, if a CSP were to suffer a loss event that impacted our customers’ crypto-assets held by that CSP, then (subject to consultation with the SEC’s Office of the Chief Accountant) we may be required to recognize a reduction in the value of the safeguarding asset at the time of the CSP’s loss event, without recognizing a corresponding reduction in the value of the safeguarding liability, even though we have no legal obligation to our customers with respect to the crypto-assets held by the CSPs.

The recognition of such loss event could have a material adverse effect on our results of operations.

We custody and service accounts for hedge and mutual funds, ETFs, registered investment [removed: advisers,] [added: advisors,] proprietary trading groups, introducing brokers and individual investors.

We specialize in routing orders and executing and processing trades in stocks, options, futures, forex, bonds, mutual funds, ETFs and precious metals on more than [removed: 150] [added: 160] electronic exchanges and market centers in [removed: 34] [added: 36] countries and [removed: 27] [added: 28] currencies [removed: seamlessly] around the world.

The proliferation of electronic exchanges and market centers has allowed us to integrate our software with an increasing number of trading [removed: venues,] [added: venues – as well as with market data sources, securities lending platforms and regulatory reporting facilities –] creating one automatically functioning, computerized platform that requires minimal human intervention.

Currently, approximately [removed: 81%] [added: 83%] of our customers reside outside the U.S. in over 200 countries and territories, and over [removed: 80%] [added: 85%] of new customers come from outside the U.S. Approximately [removed: 57%] [added: 55%] of our customers’ equity is in institutional accounts such as hedge funds, financial advisors, proprietary trading firms and introducing brokers.

In [removed: 2023,] [added: 2024,] most world equities markets, including the U.S., [added: Canada,] Europe, [removed: Japan] [added: Japan,] and Australia, [removed: reached] [added: continued to reach] all-time [removed: highs (one notable exception was Hong Kong, which was down on the year).][added: highs.]

[removed: In the second half, however, the expectation of lower interest] [added: Lower] rates [removed: and] [added: helped moderate economic conditions toward] a “soft landing” for global [removed: economies drove markets higher,] [added: economies,] despite [removed: the] [added: an] ongoing backdrop of geopolitical uncertainty.

The following is a summary of the key economic drivers that affect our business and how they compared to the [removed: prior-year quarter:][added: prior year:]

[removed: *Global trading volumes.*] Worldwide, equities volumes at most major [removed: exchanges declined] [added: trading venues increased] in the current year, while major market [removed: indexes] [added: indices] reached all-time [removed: highs.][added: highs in the U.S., Canada, Europe, U.K., Germany, Japan, and Australia.]

In the U.S., according to industry data, average daily volume in exchange-listed equity-based options increased by [removed: 8% and futures by 5%, while] [added: 10%,] listed cash equities volume [removed: decreased] by [removed: 7%,] [added: 10%, and futures by 9%,] compared to [removed: 2022.][added: 2023.]

These factors led to mixed [added: but generally positive] results across our major product types.

Our customer [removed: options] [added: options, equities,] and futures volumes were up [removed: 12%] [added: 32%, 22%,] and [removed: 1%,] [added: 4%,] respectively, while [removed: stock and] foreign exchange volumes declined [removed: 24% and 29%, respectively,] [added: 9%,] compared to the prior year.

See [removed: “Trading] [added: ‘‘Trading] Volumes and Customer [removed: Statistics”] [added: Statistics’’] below in this Item 7 for additional details regarding our trade volumes, contract and share volumes, and customer statistics.

[removed: *Volatility.*] U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index [removed: (“VIX®”),] [added: (‘‘VIX®’’),] declined [removed: 35%,] [added: by 8%,] from an average of [removed: 26.0] [added: 16.8] in [removed: 2022] [added: 2023] to [removed: 16.8] [added: 15.6] in the current year.

[removed: *Interest Rates.* The] [added: After holding rates steady since July 2023, the] U.S. Federal Reserve [removed: increased] [added: cut] the benchmark federal funds rate [removed: four] [added: three] times in [removed: 2023, in February, March, May] [added: 2024 (in September, November] and [removed: July, which raised rates cumulatively] [added: December),] by [added: a cumulative] 100 basis points.

In most countries with developed financial markets, benchmark interest rates also [removed: rose] [added: declined] over the [added: course of the] year as central [removed: banks continued to take steps to control inflation.][added: banks’ concerns over inflation abated.]

[removed: Higher] [added: Lower] U.S. benchmark rates [removed: have boosted] [added: reduce] the interest we earn on our segregated cash, the majority of which is invested in short-term U.S. government securities and related instruments.

Higher short-term rates, and uncertainty over future U.S. Federal Reserve rate policy, have led us to maintain a short duration portfolio, [added: substantially] all of which matured within three months at December 31, [removed: 2023,] [added: 2024,] to more closely match our asset and liability maturities on our interest-sensitive assets.

Further, our margin balances are tied to benchmark rates, so [removed: higher] [added: lower] rates [removed: in 2023 have] also [removed: improved] [added: limit] the interest we earn on margin lending to our customers.

[removed: Rising] [added: As an offset, lower] rates also [removed: increase] [added: reduce] our interest expense.

Net interest income on customer [removed: cash and margin loan balances] [added: balances, for the current year,] increased [removed: significantly] [added: $497 million,] compared to the prior [removed: year as] [added: year, driven by a $12.3 billion increase in average customer margin loans, a $9.8 billion increase in average customer credit balances, and an increase in] the average federal funds effective rate [removed: increased] to [removed: 5.03% in the current year] [added: 5.14%] from [removed: 1.68%] [added: 5.02%] in the prior [removed: year.][added: year and.]

[removed: *Currency fluctuations.*] As a global electronic broker trading on exchanges around the world in multiple currencies, we are exposed to foreign currency risk.

We actively manage this exposure by keeping our equity in proportion to a defined basket of 10 currencies we call the [removed: “GLOBAL”] [added: ‘‘GLOBAL’’] to diversify our risk and to align our hedging strategy with the currencies that we use in our business.

During the current year, the value of the GLOBAL, as measured in U.S. dollars, [removed: increased 0.41%] [added: decreased 1.45%] compared to its value at December 31, [removed: 2022,] [added: 2023,] which had a [removed: positive] [added: negative] impact on our comprehensive earnings for the current year.

A discussion of our approach for managing foreign currency exposure is contained in Part I, Item 7A of this Quarterly Report on Form 10-Q entitled [removed: “Quantitative] [added: ‘‘Quantitative] and Qualitative Disclosures about Market Risk.”

Diluted earnings per share were [removed: $5.67] [added: $6.93] for the year ended December 31, [removed: 2023] [added: 2024] (“current year”), compared to [removed: $3.75] [added: $5.67] for the year ended December 31, [removed: 2022] [added: 2023] (“prior year”).

Adjusted diluted earnings per share were [removed: $5.75] [added: $7.03] for the current year, compared to [removed: $4.05] [added: $5.75] for the prior year.

For the current year, our net revenues were [removed: $4,340] [added: $5,185] million and income before income taxes was [removed: $3,069] [added: $3,695] million, compared to net revenues of [removed: $3,067] [added: $4,340] million and income before income taxes of [removed: $1,998] [added: $3,069] million in the prior year.

Adjusted net revenues were [removed: $4,367] [added: $5,257] million and adjusted income before income taxes was [removed: $3,101] [added: $3,767] million, compared to adjusted net revenues of [removed: $3,213] [added: $4,367] million and adjusted income before income taxes of [removed: $2,144] [added: $3,101] million in the prior year.

Net interest income increased [removed: 68%] [added: 13%] from the prior year to [removed: $2,794] [added: $3,148] million, driven by higher [removed: benchmark interest rates] [added: average customer margin loans] and customer credit balances.

Commission revenue increased [removed: 3%] [added: 25%] from the prior year to [removed: $1,360] [added: $1,697] million on higher [removed: options] [added: options, stock] and futures [removed: volumes, partially offset by lower customer stock trading] volumes.

Other fees and services increased [removed: 7%] [added: 42%] from the prior year to [removed: $197] [added: $280] million on higher risk exposure [removed: fees] [added: fees, payments for order flow from exchange-mandated programs,] and Insured Bank Deposit Sweep Program fees (“FDIC sweep fees”).

Other income increased [removed: $96] [added: $71] million from the prior year to a [removed: loss] [added: gain] of [removed: $11] [added: $60] million.

Execution, clearing and distribution fees expenses increased [removed: 19%] [added: 16%] to [removed: $386] [added: $447] million, driven by higher customer trading volume in [removed: options] [added: options, stocks] and futures.

[removed: Pretax] [added: Adjusted pretax] profit margin was [removed: 71%,] [added: 72%,] up from [removed: 65%] [added: 71%] in the prior year.

[removed: Adjusted pretax] [added: Pretax] profit margin was [removed: 71%, up from 67%] [added: 71%] in [added: both] the [added: current and] prior year.

In connection with our currency diversification strategy as of December 31, [removed: 2023,] [added: 2024,] approximately [removed: 25%] [added: 23%] of our equity was denominated in currencies other than the U.S. dollar.

In the current year, our currency diversification strategy [removed: increased] [added: decreased] our comprehensive earnings by [removed: $42] [added: $222] million (compared to [removed: a decrease] [added: an increase] of [removed: $211] [added: $42] million in the prior year), as the U.S. dollar value of the GLOBAL [removed: increased] [added: decreased] by approximately [removed: 0.41%,] [added: 1.45%,] compared to its value as of December 31, [removed: 2022.][added: 2023.]

The effects of our currency diversification strategy are reported as (1) a component of [removed: other income] [added: “Other Income”] (loss of [removed: $80] [added: $15] million) in the consolidated statements of comprehensive income and (2) other comprehensive income (“OCI”) [removed: (gain] [added: (loss] of [removed: $122] [added: $207] million) in the consolidated statements of financial condition and the consolidated statements of comprehensive income.

[removed: Price competition] [added: Competition] among broker-dealers may continue to intensify.

[removed: The] [added: The] impact of [added: another pandemic or] a public health emergency [removed: going forward] will depend on numerous evolving factors that cannot be accurately predicted, including the duration and spread of the pandemic, governmental regulations in response to the pandemic, and the effectiveness of vaccinations and other medical advancements.

In August 2024, we began offering trading in forecast contracts, which are event-based contracts traded on ForecastEx, a CFTC-registered exchange and clearinghouse we established.

The S&P 500 index led major world indices with a 23% year-over-year gain.

The dominance of a small number of technology stocks (the so-called “Magnificent 7”) diminished somewhat, with these stocks accounting for half of the S&P’s index’s gains in the current year, down from 63% in the prior year.

Inflationary pressures eased gradually over the course of 2024 and, as a result, central banks in most countries cut their policy rates.

Lower rates and the expectation of further rate reductions also contributed to higher market levels and volumes, with individual investors continuing their engagement with the securities markets, particularly in options and equities.

*Global trading volumes*.

Options trading volumes have risen with the growing popularity of shorter-dated options contracts.

In futures markets, volumes increased across all product segments, particularly in commodities such as the metals, energy and agriculture sectors, as investors sought to mitigate their exposure to ongoing economic and geopolitical uncertainties.

*Volatility*.

Volatility levels remain below the levels reached in 2020 through 2022, as the world economic outlook has improved and recession fears have waned.

*Interest Rates*.

After a period of inversion, the U.S. Treasury yield curve began to revert toward a historically typical upward slope by year end, with long-term rates becoming higher than short-term rates.

With benchmark rates at higher levels than they were during an extended period during and after the pandemic, we are able to earn our full 0.50% spread.

Net interest income on margin loan balances rose compared to the prior year.

This increase was due to the average federal funds effective rate increasing to 5.14% in the current year from 5.02% in the prior year, and the growth in margin loan balances in the current active market environment.

Higher average balances contributed to a 13% rise in net interest income over the prior year, and our net interest margin held fairly steady, dipping slightly from 2.36% in the prior year to 2.35% in the current year.

*Currency fluctuations*.

Scrutiny in the use of artificial intelligence (AI) and information security by regulatory and legislative authorities has increased.

EXECUTED ORDER VOLUMES:

| 2021 | | 646,440 | | 4% | | 27,334 | | 1% | | 673,774 | | (4%) |

| 2022 | | 532,064 | | (18%) | | 26,966 | | (1%) | | 559,030 | | (17%) |

| 2023 | | 483,015 | | (9%) | | 29,712 | | 10% | | 512,727 | | (8%) |

| 2024 | | 661,666 | | 37% | | 63,348 | | 113% | | 725,014 | | 41% |

| 2024 | | 1,344,855 | | 32% | | 218,327 | | 4% | | 307,489,711 | | 22% |

CUSTOMER

| 2024 | | 1,290,770 | | 32% | | 214,864 | | 4% | | 302,040,873 | | 22% |

| 2024 | | 54,085 | | 37% | | 3,463 | | 17% | | 5,448,838 | | 31% |

| Net income available for common stockholders | | $ | 755 | | $ | 600 | | $ | 380 |

Average commission per commissionable order for cleared customers, for the current year, decreased 9% to $2.86, compared to $3.14 for the prior year, due to smaller order sizes across all products, lower average commissions per order in stocks, options and forex, and greater capture of exchange liquidity rebates passed through to customers.

This increase was mainly comprised of $65 million related to our currency diversification strategy; $48 million from our principal trading and investment activities; and $23 million related to million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”); partially offset by a $48 million loss on positions taken over as customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024, as previously disclosed; and $16 million related to the remeasurement of our Tax Receivable Agreement liability, payable to Holdings, which went from a gain of $7 million in the prior year to a loss of $9 million in the current year, primarily due to changes in the Company’s effective tax rates.

During the current year, net interest earned from securities lending transactions decreased $184 million, or 67%, compared to the prior year, driven by lower demand for selling stocks short, as the stock market rose steadily in the current year, and by fewer so-called “hard to borrow” stocks industry wide.

We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under “Securities borrowed and loaned, net” in the table below, the total net interest income related to our securities lending activities would have been $699 million in the current year, compared to $718 million in the prior year.

Such additional interest attributed to our securities lending activities would be reclassified from net interest income on “Segregated cash and securities, net” and “Customer credit balances, net” in the table below, so it would have no effect on our overall net interest income or net interest margin.

| | | $ | 136,913 | | $ | 119,242 | | $ | 110,235 |

We continued to add staff worldwide to support our business expansion.

Communications expenses, for the current year, decreased $2 million, or 5%, compared to the prior year, to $39 million.

General and administrative expenses, for the current year, increased $103 million, or 49%, compared to the prior year, to $314 million, primarily due to a $57 million increase related to legal and regulatory matters, a $20 million increase in advertising expenses, and a one-time charge of $12 million related to the consolidation of our European subsidiaries.

| | 2024 | | | 2023 | | | 2022 | |

| | | 2024 | | | 2023 | | | 2022 | |

| Currency diversification strategy, net | | | 15 | | | 80 | | | 100 |

Elevated inflation, and the tighter monetary policy and resulting higher interest rates deployed to fight it, led to recession fears early in the year.

Individual investors, who helped drive equities market volumes higher in prior years, were more engaged in 2023 with the options markets and less so in equities markets.

Within U.S. equities, a small number of technology stocks (the so-called “Magnificent 7”) were responsible for a large portion of market index gains during the year.

While stock trading volumes remained higher than pre-pandemic levels, they were lower in the current year versus a year ago as investors chose to maintain their holdings in these technology stocks.

Options trading volumes have risen with the growing popularity of shorter-dated options contracts, while in futures, market volumes increased in agriculture, interest rate, metals and energy products, in part as investors sought to mitigate exposure to persistent inflation, higher interest rates and geopolitical uncertainties.

Volatility levels had been elevated for most of 2022 in light of geopolitical events such as regional conflicts; more unpredictable world economies and markets; and consistent, significant interest rate hikes.

In contrast, the current level of volatility has dipped below long-term trends.

In particular, the current year did not exhibit the brief spikes in volatility that were more frequently seen in prior years.

The U.S. Treasury yield curve remained inverted, with long-term rates markedly lower than short-term.

Central banks in many other countries have also increased their interest rates in recent months.

During an extended period prior to and including part of 2022, the interest we paid on customer cash balances and earned on customer margin loans and investment of customer segregated funds resulted in spreads that were compressed at low benchmark rates.

Now that benchmark interest rates are over 50 basis points and spread compression has been eliminated, we earn higher net interest income.

Higher interest rates contributed to a 68% rise in net interest income over the prior year.

Combined with increases in average interest-earning assets, particularly in segregated cash balances, these higher rates led to a widening of our net interest margin from 1.53% in the prior year to 2.36% in the current year.

This increase was mainly comprised of (1) $20 million related to our currency diversification strategy, (2) $52 million related to our U.S. government securities portfolio, and (3) $25 million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”).

Scrutiny of payment for order flow and order routing practices by regulatory and legislative authorities has increased.

The COVID-19 pandemic precipitated unprecedented market conditions with equally unprecedented social and community challenges.

We continue to monitor the war and assess any potential impact to our business, including effects relating to currency control restrictions imposed by the Central Bank of Russia and restrictions by the Moscow Stock Exchange regarding the sale of assets by non-Russian residents.

TRADE VOLUMES:

| | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | Cleared | | | | Non-Cleared | | | | | | | | | | | | Avg. Trades |

| Period | | Trades | | Change | | Trades | | Change | | Trades | | Change | | Trades | | Change | | Trading Day |

| 2019 | | 302,289 | | | | 26,346 | | | | 17,136 | | | | 345,771 | | | | 1,380 |

| 2021 | | 871,319 | | 40% | | 78,276 | | 38% | | 32,621 | | 21% | | 982,216 | | 39% | | 3,905 |

| 2022 | | 735,619 | | (16%) | | 70,049 | | (11%) | | 32,863 | | 1% | | 838,531 | | (15%) | | 3,347 |

| 2023 | | 670,263 | | (9%) | | 58,580 | | (16%) | | 36,725 | | 12% | | 765,568 | | (9%) | | 3,075 |

| | | Options | | % | | Futures 1 | | % | | Stocks | | % |

| 2019 | | 390,739 | | | | 128,770 | | | | 176,752,967 | | |

ALL CUSTOMERS

| 2019 | | 349,287 | | | | 126,363 | | | | 167,826,490 | | |

CLEARED CUSTOMERS

| 2019 | | 302,068 | | | | 125,225 | | | | 163,030,500 | | |

| 2020 | | 518,965 | | 72% | | 163,101 | | 30% | | 320,376,365 | | 97% |

| 2021 | | 773,284 | | 49% | | 151,715 | | (7%) | | 752,720,070 | | 135% |

| 2022 | | 781,373 | | 1% | | 202,145 | | 33% | | 314,462,672 | | (58%) |

| 2023 | | 834,866 | | 7% | | 204,691 | | 1% | | 240,270,617 | | (24%) |

(1)Futures contract volume includes options on futures.

| 2019 | | 41,452 | | | | 2,407 | | | | 8,926,477 | | |

| | | | | | | | | |

As a result of our international activities and accumulated earnings in our [removed: foreign] [added: non-U.S.] subsidiaries, our income and equity are exposed to fluctuations in foreign exchange rates.

At the end of each accounting period, [removed: IBKRFS’] [added: these non-U.S. subsidiaries’] assets and liabilities are revalued into [removed: Swiss francs] [added: their respective functional currencies] for presentation in [removed: its] [added: their] financial statements.

The resulting foreign currency gains or losses are reported in [removed: IBKRFS’] [added: their] income [removed: statement] [added: statements] and, as translated into U.S. dollars for U.S. GAAP purposes, in our consolidated statements of comprehensive [removed: income] [added: income,] as a component of [removed: other income.][added: “Other income.”]

[removed: At] [added: For U.S. GAAP purposes, at] the end of each accounting period, [removed: IBKRFS’] [added: each non-U.S. subsidiary’s] equity is translated at the then prevailing exchange rate into U.S. dollars and the resulting translation gain or loss is reported as OCI in our consolidated statements of financial condition and consolidated statements of comprehensive income.

[removed: Historically, we] have taken the approach of not hedging [added: our consolidated foreign currency exposures to] the [removed: above exposures,] [added: U.S. dollar,] based on the notion that the cost of constantly hedging over the years would amount to more than the random impact of rate changes on our non\-U.S. dollar balances.

[removed: Because] [added: Instead, because] we conduct business in many countries and many currencies and because we consider ourselves a global enterprise based in a diversified basket of currencies rather than a U.S. dollar-based company, we actively manage our global currency exposure by maintaining our equity in [removed: GLOBALs.][added: GLOBALs, a basket of currencies.]

The U.S. dollar value of the GLOBAL [removed: increased 0.41%] [added: decreased 1.45%] as of December 31, [removed: 2023] [added: 2024] compared to December 31, [removed: 2022.][added: 2023.]

As of December 31, [removed: 2023,] [added: 2024,] approximately [removed: 25%] [added: 23%] of our equity was denominated in currencies other than the U.S. dollar.

| USD | | 0.72 | | 1.0000 | | | 0.720 | | [removed: 75.8%] [added: 75.5%] | | $ | [removed: 8,803] [added: 10,619] | | 1.0000 | | | 0.720 | | [removed: 75.5%] [added: 76.6%] | | $ | [removed: 10,619] [added: 12,714] | | [removed: \-0.3%] [added: 1.1%] |

| GBP | | 0.02 | | [removed: 1.2099] [added: 1.2731] | | | [removed: 0.024] [added: 0.025] | | [removed: 2.5%] [added: 2.7%] | | | [removed: 296] [added: 376] | | [removed: 1.2731] [added: 1.2513] | | | 0.025 | | 2.7% | | | [removed: 376] [added: 442] | | [removed: 0.1%] [added: 0.0%] |

| CHF | | 0.02 | | [removed: 1.0816] [added: 1.1881] | | | [removed: 0.022] [added: 0.024] | | [removed: 2.3%] [added: 2.5%] | | | [removed: 265] [added: 350] | | [removed: 1.1881] [added: 1.1019] | | | [removed: 0.024] [added: 0.022] | | [removed: 2.5%] [added: 2.3%] | | | [removed: 350] [added: 389] | | [removed: 0.2%] [added: \-0.1%] |

| CNH | | 0.13 | | [removed: 0.1445] [added: 0.1404] | | | [removed: 0.019] [added: 0.018] | | [removed: 2.0%] [added: 1.9%] | | | [removed: 230] [added: 269] | | [removed: 0.1404] [added: 0.1363] | | | 0.018 | | 1.9% | | | [removed: 269] [added: 313] | | [removed: \-0.1%] [added: 0.0%] |

| INR | | 1.10 | | [removed: 0.0121] [added: 0.0120] | | | 0.013 | | 1.4% | | | [removed: 163] [added: 195] | | [removed: 0.0120] [added: 0.0117] | | | 0.013 | | 1.4% | | | [removed: 195] [added: 227] | | 0.0% |

| CAD | | 0.02 | | [removed: 0.7385] [added: 0.7549] | | | 0.011 | | 1.2% | | | [removed: 135] [added: 167] | | [removed: 0.7549] [added: 0.6953] | | | [removed: 0.011] [added: 0.010] | | [removed: 1.2%] [added: 1.1%] | | | [removed: 167] [added: 184] | | [removed: 0.0%] [added: \-0.1%] |

| AUD | | 0.02 | | [removed: 0.6816] [added: 0.6811] | | | 0.010 | | 1.1% | | | [removed: 125] [added: 151] | | [removed: 0.6811] [added: 0.6188] | | | [removed: 0.010] [added: 0.009] | | [removed: 1.1%] [added: 1.0%] | | | [removed: 151] [added: 164] | | [removed: 0.0%] [added: \-0.1%] |

| HKD | | 0.04 | | 0.1281 | | | 0.004 | | 0.5% | | | [removed: 55] [added: 66] | | [removed: 0.1281] [added: 0.1287] | | | [removed: 0.004] [added: 0.005] | | 0.5% | | | [removed: 66] [added: 80] | | 0.0% |

| | | | | | | | [removed: 0.950] [added: 0.954] | | 100.0% | | $ | [removed: 11,615] [added: 14,067] | | | | | [removed: 0.954] [added: 0.940] | | 100.0% | | $ | [removed: 14,067] [added: 16,597] | | 0.0% |

The effects of our currency diversification strategy appear in two places in the consolidated financial statements: (1) as a component of [removed: other income] [added: “Other income”] in the consolidated statements of comprehensive income and (2) as OCI in the consolidated statements of financial condition and the consolidated statements of comprehensive income.

We had no variable\-rate debt outstanding as of December 31, [removed: 2023.][added: 2024.]

In [removed: currencies] [added: currencies, if any,] with negative rates, we pass through the cost of holding certain cash balances to our customers; therefore, we charge our customers interest on these cash balances.

In a normal rate environment, we typically invest a portion of these funds in U.S. government securities with maturities of up to two years, although given the current interest rate environment, at this time [added: substantially] all such investments mature within three months.

Based on customer balances and investments outstanding as of December 31, [removed: 2023,] [added: 2024,] and assuming reinvestment of maturing instruments in instruments of short-term duration, an [removed: unexpected] increase of 0.25% over current U.S. dollar interest rate levels would increase our net interest income by approximately [removed: $56] [added: $64] million on an annualized basis, assuming the full effect of reinvestment at higher rates.

A 0.25% increase in all the relevant non-U.S. dollar benchmark rates would increase our net interest income by approximately [removed: $18 million to $20] [added: $24] million on an annualized basis.

Based on customer balances and investments outstanding as of December 31, [removed: 2023,] [added: 2024,] and assuming reinvestment of maturing instruments in instruments of short-term duration, [removed: an unexpected] [added: a] decrease in U.S. dollar interest rates of 0.25% would decrease our net interest income by approximately [removed: $56] [added: $64] million on an annualized basis, assuming the full effect of reinvestment at lower rates.

A 0.25% decrease in all the relevant non-U.S. dollar benchmark rates would decrease our net interest income by approximately [removed: $18 million to $20] [added: $22] million on an annualized basis.

As of December 31, [removed: 2023,] [added: 2024,] we [removed: extended $44.5] [added: had $64.4] billion in margin loans [added: extended] to our customers.

Our [added: Market] Risk [removed: Management] Committee continually monitors and evaluates our risk management policies, including the implementation of policies and procedures to enhance the detection and prevention of potential events to mitigate margin loan losses.

| Market Risk Category | | | [removed: 2023] [added: 2024] | | | [removed: 2022] [added: 2023] | | | [removed: 2023] [added: 2024] | | | [removed: 2023] [added: 2024] |

| Equities and Currencies (2) | | $ | [removed: 10] [added: 8] | | $ | [removed: 8] [added: 10] | | $ | 9 | | $ | [removed: 10] [added: 9] |

| Trading Total | | $ | [removed: 10] [added: 8] | | $ | [removed: 8] [added: 10] | | $ | 9 | | $ | [removed: 10] [added: 9] |

| Equities and Currencies | | $ | 28 | | $ | [removed: 26] [added: 28] | | $ | [removed: 29] [added: 30] | | $ | [removed: 30] [added: 34] |

| Fixed Income, Other (3) | | | [removed: 3] [added: 2] | | | [removed: 9] [added: 3] | | | [removed: 3] [added: 2] | | | [removed: 5] [added: 3] |

| Non-Trading Total | | $ | [removed: 31] [added: 30] | | $ | [removed: 35] [added: 31] | | $ | 32 | | $ | [removed: 35] [added: 37] |

The average and high VaR amounts are based on the four quarter ending calculations performed in [removed: 2023.][added: 2024.]

For example, our non-U.S. subsidiaries are exposed to foreign exchange risks as described below:

Some of our non-U.S. subsidiaries support customer transactions in financial instruments, carry bank balances, and borrow and lend securities in various currencies in their regular course of business.

These non-U.S. subsidiaries’ financial statements are presented in their respective functional currencies, as noted above.

By periodically converting currency balances into functional currency, we substantially reduce the foreign currency exposures for each of these non-U.S. subsidiaries, which minimizes the impact of exchange rate changes to its income statement.

However, historically, we

| | | | | As of 12/31/2023 | | | | | | | | | | As of 12/31/2024 | | | | | | | | | | |

| EUR | | 0.09 | | 1.1037 | | | 0.099 | | 10.4% | | | 1,465 | | 1.0353 | | | 0.093 | | 9.9% | | | 1,645 | | \-0.5% |

| JPY | | 3.91 | | 0.0071 | | | 0.028 | | 2.9% | | | 409 | | 0.0064 | | | 0.025 | | 2.6% | | | 439 | | \-0.3% |

For example, some of our European and Asian operations are conducted by our Swiss subsidiary, IBKRFS.

IBKRFS is regulated by the Swiss Financial Market Supervisory Authority as a securities dealer and its financial statements are presented in Swiss francs.

Accordingly, IBKRFS is exposed to certain foreign exchange risks as described below:

IBKRFS buys and sells securities denominated in various currencies and carries bank balances and borrows and lends such currencies in its regular course of business.

IBKRFS’ financial statements are presented in Swiss francs (i.e., its functional currency) as noted above.

OCI is also produced by our other non\-U.S. subsidiaries.

For instance, an increase in the value of the Swiss franc would be unfavorable to the earnings of IBKRFS but would be counterbalanced to some extent by the fact that the translation gain or loss into U.S. dollars is likely to move in the opposite direction.

In connection with the development of our currency diversification strategy, we determined to base our equity in GLOBALs, a basket of currencies.

| | | | | As of 12/31/2022 | | | | | | | | | | As of 12/31/2023 | | | | | | | | | | |

| EUR | | 0.09 | | 1.0704 | | | 0.096 | | 10.1% | | | 1,178 | | 1.1037 | | | 0.099 | | 10.4% | | | 1,465 | | 0.3% |

| JPY | | 3.91 | | 0.0076 | | | 0.030 | | 3.1% | | | 365 | | 0.0071 | | | 0.028 | | 2.9% | | | 409 | | \-0.2% |

Reported results on a comprehensive basis reflect the U.S. GAAP convention that requires the reporting of currency translation results contained in OCI as part of reportable earnings.

At negative or near-

zero benchmark rates, such as during 2021, our interest sensitivity to rate increases is limited to the extent that a higher benchmark rate plus a spread may still be below the minimum charge.

We specialize in routing orders and executing and processing trades in stocks, options, futures, foreign exchange instruments (“forex”), bonds, mutual funds, [removed: ETFs and] [added: ETFs,] precious [removed: metals] [added: metals, and forecast contracts] on more than [removed: 150] [added: 160] electronic exchanges and market centers in [removed: 34] [added: 36] countries and [removed: 27] [added: 28] currencies [removed: seamlessly] around the world.

As of December 31, [removed: 2023,] [added: 2024,] we had [removed: 2,932] [added: 2,998] employees worldwide.

IBG, Inc. is a holding company whose primary asset is the ownership of approximately [removed: 25.4%] [added: 25.8%] of the membership interests of IBG LLC, the current holding company for our businesses.

[removed: Description automatically generated](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231x10kg001.jpg)][added: AI-generated content may be incorrect.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231x10kg001.jpg)]

Our primary assets are our ownership of approximately [removed: 25.4%] [added: 25.8%] of the membership interests of IBG LLC, the current holding company for our businesses, and our controlling interest and related contractual rights as the sole managing member of IBG LLC.

The remaining approximately [removed: 74.6%] [added: 74.2%] of IBG LLC membership interests are held by IBG Holdings LLC (“Holdings”), a holding company that is owned directly and indirectly by our founder and Chairman, Mr. Thomas Peterffy and his affiliates, management and other employees of IBG LLC, and certain other members.

The table below presents the amount of IBG LLC membership interests held by IBG, Inc. and Holdings as of December 31, [removed: 2023.][added: 2024.]

From 2011 through [removed: 2023,] [added: 2024,] the Company issued [removed: 40,111,445] [added: 40,444,445] shares of common stock (with a fair value of [removed: $1.9] [added: $2.0] billion) to Holdings in exchange for an equivalent number of shares of member interests in IBG LLC.

We offer our customers access to all tradable classes of primarily exchange\-listed products, including stocks, options, futures, forex, bonds, mutual funds, ETFs, precious [removed: metals] [added: metals, cryptocurrencies,] and [removed: cryptocurrencies] [added: forecast contracts] traded on more than [removed: 150] [added: 160] electronic exchanges and market centers in [removed: 34] [added: 36] countries and in [removed: 27] [added: 28] currencies [removed: seamlessly] around the world.

Since the launching of our electronic brokerage business in 1993, we have grown to approximately [removed: 2.6] [added: 3.3] million institutional and individual brokerage customers.

*IBKR Universal AccountSM* – From a single point of entry in their IBKR Universal1 Account*SM*, our customers are able to transact in [removed: 27] [added: 28] currencies, across multiple classes of tradable, primarily exchange\-listed products traded on more than [removed: 150] [added: 160] electronic exchanges and market centers in [removed: 34] [added: 36] countries around the world seamlessly.

*Request for Payment Service* – Through this [removed: new] banking service, U.S. customers can make instant deposits, 24 hours a day, from their mobile banking app or other bank portal to fund their brokerage account with us.

*Investors’ MarketplaceSM* – The Investors’ MarketplaceSM is [removed: the first] [added: an] electronic [removed: meeting place] [added: marketplace] that brings together individual investors, financial advisors, money managers, fund managers, research analysts, technology providers, business developers and administrators, allowing them to interact to form connections and conduct business.

*Mutual Fund Marketplace* – The Mutual Fund Marketplace offers our customers access to more than [removed: 48,000] [added: 43,000] mutual funds worldwide, including more than [removed: 19,000] [added: 18,000] no-transaction-fee funds from more than [removed: 550] [added: 600] fund families*.*

*Bond Marketplace* – The Bond Marketplace allows customers to search for the best yields from a vast universe of over one million bonds from issuers in the Americas, Europe and [removed: Asia.][added: Asia/Pacific.]

*Cryptocurrency* – [removed: Customers,] [added: Customers of Interactive Brokers LLC,] including both individuals and advisors, can trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) through Paxos Trust Company or Zero Hash LLC, which execute, clear and custody the cryptocurrencies, alongside other asset classes on a single unified platform.

[removed: *Event] [added: *Forecast and Event] Contracts* – IBKR [removed: EventTraderSM] [added: ForecastTraderSM] is our web-based platform for trading [added: forecast contracts from ForecastEx LLC (“ForecastEx”), a CFTC-registered exchange and our wholly-owned subsidiary, as well as] event contracts on select CME futures markets.

*Overnight Trading Hours* – Customers can trade over 10,000 U.S. stocks and [removed: ETFs] [added: ETFs, U.S. Equity Index futures and options, U.S. Treasurys, global corporate bonds, European government bonds, and United Kingdom (“U.K.”) gilts] nearly 24 hours a day, five days a week, enabling them to react immediately to market-moving news and conveniently trade at almost any time.

The [removed: desks help] [added: desk helps] traders execute large or complex orders and [removed: monitor] [added: monitors] trades when customers are unable to do so.

[removed: The desks source] liquidity, [removed: bring] [added: brings] SPX [added: market] color from the [added: exchange trading] pit, [removed: offer] [added: offers] price discovery services, and [removed: help] [added: helps] customers calibrate and execute complex [removed: algo] [added: algorithmic] trading strategies.

*IBKR GlobalAnalystSM* *–* [removed: Our] IBKR GlobalAnalystSM [removed: tool,] [added: is] designed for investors who are interested in [removed: international portfolio diversification, helps find] new opportunities to diversify [removed: an investor’s] [added: their] portfolio and [removed: discover] [added: in discovering] undervalued companies that may have greater growth potential.

The IMPACT App [removed: allows] [added: is intended to allow] customers to select their personal investment criteria from thirteen impact [removed: values] [added: goals] and [removed: principles,] [added: principles] and [removed: also allow customers] to exclude investments based on business practices they would like to avoid.

*Impact Dashboard* – The Impact Dashboard [removed: helps customers] [added: is intended] to [added: help customers] evaluate and invest in companies that align with their [removed: values.][added: principles.]

Customers can select [removed: the values] [added: investments] they care about [removed: from a list ranging from clean air to consumer safety] and [removed: racial equality, and] [added: can] measure how both individual securities and their overall portfolio measure up against their criteria.

*Tax Loss Harvesting* – [removed: IBKR’s] [added: Our] Tax Loss Harvest tool helps advisors to potentially reduce their customers’ tax liabilities by harvesting losses across multiple assets for multiple customers at the same time.

*Interactive Advisors* – Interactive Advisors [added: evaluates and] recruits registered financial advisors, [removed: vets them,] analyzes their investment track records, and groups them by their risk profile.

Our customers can trade on more than [removed: 150] [added: 160] electronic exchanges and market centers in [removed: 34] [added: 36] countries around the world.

Specifically, our customers receive electronic access worldwide via our Trader WorkstationSM (real\-time Java\-based trading platform), our [added: Next Gen IBKR Desktop, our] proprietary Application Programming Interface (“API”), our IBKR Mobile app, our Client Portal-based Quick Trade feature or industry standard Financial Information Exchange (“FIX”) connectivity.

diverse order [removed: types] [added: types, algorithms] and analytical tools offered to customers;

[removed: *Operational] [added: Operational] Risk and [removed: Controls*][added: Controls]

Our integrated software tracks other important activities, such as dividends, corporate actions, options exercises, securities lending, margining, risk [removed: management] [added: management,] and funds receipt and disbursement.

As the system continues to gain more users, IB SmartRoutingSM and the IBKR ATS facilities become more important for customers in a world of multiple exchanges, market centers [removed: and penny-priced orders because it increases the possibility of best possible executions for our customers ahead of customers of other brokers.]

Cleared customers, the large majority of our customers, use our trade execution and clearing services, low financing rates, high interest paid (when [removed: available)] [added: benchmark rates are sufficiently above zero)] and, under our IBKR LiteSM offering, commission-free trades.

We currently service approximately [removed: 2.56] [added: 3.34] million cleared customer accounts and have customers residing in over 200 countries and territories around the world.

Our target customer is one who requires the latest in trading technology and worldwide access, and who expects low overall transaction and financing costs and market rate interest on [removed: idle] [added: uninvested] cash balances.

No single customer represented more than [removed: 1%] [added: 2%] of our commissions in [removed: 2023.][added: 2024.]

As of December 31, [removed: 2023,] [added: 2024,] we had [removed: 2,932] [added: 2,998] employees across [removed: 27] [added: 28] locations globally.

[removed: *Social Initiatives*][added: Social Initiatives]

[removed: *Employee] [added: Employee] and Leadership [removed: Development*][added: Development]

Topics include Anti-Money Laundering, [added: Anti-Sexual Harassment,] Anti-Bribery and Corruption, Sanctions, [removed: Cybersecurity] [added: Cybersecurity,] and Data Privacy.

Available Information

| Ownership % | | 25.8% | | 74.2% | | 100.0% |

| Membership interests | | 108,931,614 | | 313,643,354 | | 422,574,968 |

*IBKR Desktop* – IBKR Desktop is our newest trading platform, built from the ground up using modern technology and a fresh user interface design.

This new platform provides a clean, intuitive experience, making it easy for traders of all levels to navigate.

It offers a highly customizable trading experience with a broad array of tools for technical and fundamental analysis, sophisticated charting capabilities and advanced order types, including conditional and algorithmic orders.

*Non-U.S. Dollar Currency Deposits* – We support a host of deposit types using local payment systems outside the U.S. to facilitate convenient account funding for non-U.S. customers.

Customers of Interactive Brokers (U.K.) Limited can trade BTC, ETH, LTC, and BCH through Paxos Trust Company.

IBKR ForecastTraderSM allows customers to trade their opinion on a specific question with a “yes” or “no” outcome while earning an interest-like incentive coupon based on the daily closing price of each contract.

*Global Outsourced Trading Desk* – We offer broker\-assisted trading through our Global Outsourced Trading Desk.

The desk sources

*Automated Currency Conversions* – Customers can execute trades in any of our supported currencies, even if they do not have the corresponding cash balance in that currency, and can elect us to automatically perform the necessary forex transaction to settle the trade.

*Recurring Investments* – Customers can use our Recurring Investments tool to setup and execute a predetermined investment strategy by automatically investing funds on a recurring schedule.

Customers can create recurring investments for almost any U.S., Canadian or European stock or ETF.

*Dividend Reinvestments* – Customers can reinvest cash dividends into additional full or fractional shares of U.S. and Canadian shares of stock held in their account.

The tool’s World Map Screener lets customers easily find stocks that match their strategies from across a universe of over 70,000 stocks worldwide, while the World Data Screener lets customers compare the relative value of global stocks in the same currency and find new opportunities.

PortfolioAnalyst® includes Retirement Planning and Budgeting tools, and provides U.S.-based advisors with an AI Commentary Generator designed to help advisors with customer portfolio performance reporting, market updates and ticker-specific news.

*AI News Summaries* – Customers outside the U.S. have access to AI News Summaries that use generative AI to quickly summarize the key points of news published by select providers, saving time and allowing them to react rapidly to changing market conditions.

*ESG Scores* – ESG Scores from Refinitiv give customers a separate set of tools to help them make investment decisions.

*Rebalance Tool* – The Rebalance Tool lets advisors automatically rebalance all their accounts, a single sub-account or a user-defined Account Group, which includes a subset of accounts, by redistributing percentages of positions in their sub-portfolio(s) that make up the current net liquidation value.

*Commentary Generator –* Our AI-powered Commentary Generator helps U.S.-based financial advisors streamline workflow and improve efficiency by creating customer-specific performance reports and summarizing the latest and ticker-specific news from select providers.

For hedge funds, we offer:

*High-Touch Prime Brokerage Services –* We offer a High-Touch Prime Brokerage service for hedge funds, with benefits that include a dedicated Relationship Manager; access to experts in risk/margin, compliance, securities finance, corporate actions, proxy, clearing, transfers and tax; expedited request handling; and 24/5 access to a Global Outsourced Trading Desk for order execution.

and penny-priced orders because it increases the possibility of best possible executions for our customers ahead of customers of other brokers.

Additionally, we are members of ForecastEx, a CFTC- registered Designated Contract Market and Derivatives Clearing Organization.

We conducted an employee experience survey and had a 76% companywide participation rate.

The results indicated high engagement and confidence from our employees in our business.

As a follow up to the survey, we are taking several actions including enhanced leadership communications and additional opportunities for career development.

We believe these changes will continue to foster a collaborative team and strong culture.

Our Mentorship Program fosters connection and development.

This program is open to all employees globally, and each mentor is carefully selected by our talent team to complement the mentee’s unique development profile.

The mentors were provided training and guidance on how to best support their mentees.

Our 2024 Intern Class has representation from a range of universities.

We created an extensive program for the interns to allow them to network within and outside the Company.

We continue to support our employees and the communities where we operate.

This year, we donated to the Food Bank of Lower Fairfield County in Connecticut, which is where our headquarters are located.

Worldwide, we have supported numerous causes that are important to our communities and our employees.

Our employees continue to donate to causes of their choosing through our corporate giving program, which is matched by the Company.

We focus on equipping employees with essential skills for current and future success.

We continue investing in our IBKR Training Portal, now hosting over 1,000 on-demand and live courses, alongside specialized external training providers and certification bodies.

| Ownership % | | 25.4% | | 74.6% | | 100.0% |

| Membership interests | | 107,049,483 | | 313,976,354 | | 421,025,837 |

*American Express® International Dollar Card –* The American Express®2 International Dollar card allows non-U.S. residents to transact in U.S. dollars.

Customers enjoy the convenience of paying their bills directly from their Interactive Brokers account.

Currently available for eligible customers in Latin America and the Caribbean (excluding Puerto Rico and the U.S. Virgin Islands).

2 American Express® is a trademark registered to the American Express Company, 200 Vesey Street, New York, New York 10285.

IBKR EventTraderSM allows customers to trade their opinion about a specific question with a “yes” or “no” outcome.

*Block Trade Desk* – We offer broker\-assisted trading through our *Corporate Bond* and *Stock and Option* block order desks.

The relative value of global stocks by region, country, industry or individually can be compared, and metrics displayed in one of 31 currencies.

IBKR GlobalAnalystSM can search across business sectors and allows for filtering by region, country and market capitalization.

PortfolioAnalyst® can consolidate data from a customer’s investment, checking, savings and annuity accounts, as well as incentive plans, credit card accounts, mortgages and student loans.

*Carbon Offsets –* Using the IMPACT App, U.S. customers can offset their carbon emissions by purchasing carbon offsets and can use the Carbon Offsets tool to select from either greenhouse-gas emitting activities related to household, transportation and food, or enter a specific amount of carbon to offset.

We source and retire the carbon credits at the appropriate registries enabling customers to fully or partially offset their carbon footprints.

*Charitable Giving –* IBKR GIVESM supports U.S. customers in making charitable donations directly from the IMPACT App.

Using a comprehensive directory of U.S. charities and non-profit organizations from GuideStarTM by Candid, IBKR GIVESM lets customers easily donate to a charity matching their values, or search for a non-profit organization of their choice.

*ESG Scores* – ESG Scores from Refinitiv give customers a new set of tools for making investment decisions based on more than just financial factors.

We believe that communication and connectivity are critical to creating a culture of inclusion, and in 2023 we implemented a new digital platform with over 60 employee-led communities that employees use to engage in shared interests ranging from philanthropy and sports to innovative technologies.

In response to the results of our 2023 Employee Engagement Survey, we rolled out new programs to support the well-being of our employees.

We implemented a global mental health program operated by an external specialist, which includes peer-to-peer, interactive group sessions and one-on-one sessions to facilitate awareness and education on mental health topics.

We also launched a global Steps Challenge to motivate our employees to build fitness into their work routine.

We continued to expand our global mentorship program, with more than 120 mentors providing peer-to-peer career support.

We believe philanthropic giving is a personal and powerful tool to connect to local communities and causes that matter most to our employees.

To facilitate employee giving, we partner with a workplace giving platform in a program that features matching contributions from the Company.

We support career and skill development for our employees through online and in-person training.

Our IBKR Training Portal offers over 900 courses encompassing market and industry knowledge building, technical skills, and soft-skills training that supports managers and employees in developing in their roles.

We believe managers have an outsized impact on employee experience and careers, so we have invested in supporting managers with content and training focused on coaching, giving and receiving feedback, managing unconscious bias, performance management, and interview skills.

We launched the New Manager Development Program to help first-time managers transition and learn from each other.

Over 175 leaders completed one of our programs in 2023.

In addition, all employees must complete compliance training in many role-relevant areas, meeting or exceeding all regulatory requirements.

*Diversity, Equity and Inclusion*

We believe a diverse workforce enriches our employees’ and customers’ experience.

We are dedicated to promoting a culture of inclusion and attracting and developing a diverse global workforce.

To broaden the pool of applicants who apply to our jobs and internships, we partner with organizations like 100 Women in Finance and Girls Who Code.

We continue to support our employee resource groups to promote personal growth and professional development for women, minorities and others at the Company.

These include our Women’s Resource Group, Military Veterans and Families Group, and Pride Network.

We continue to support these communities by running networking events and skills workshops, such as:

Panels with our Non-Executive Board and female members of our Board of Directors;

International Women’s Day events;

Learning sessions on Neurodiversity and other topics;

Pride Month awareness and events; and

Most of our companies are regulated under some or all of the following: state securities laws, U.S. and foreign securities, commodities and financial services laws and the rules of the more than [removed: 150] [added: 160] exchanges, market centers and self\-regulatory organizations of which one or more of our companies may be members.

For the year ended December 31, [removed: 2023][added: 2024]

The aggregate market value of the voting and non\-voting common equity stock held by non\-affiliates of the registrant was approximately [removed: $8,396,870,712] [added: 12,885,708,490] computed by reference to the [removed: $83.07] [added: $122.60] closing sale price of the common stock on the Nasdaq Global Select Market, on June [removed: 30, 2023,] [added: 28, 2024,] the last business day of the registrant’s most recently completed second fiscal quarter.

As of February 21, [removed: 2024,] [added: 2025,] there were [removed: 107,062,321] [added: 108,931,614] shares of the issuer’s Class A common stock, par value $0.01 per share, outstanding and 100 shares of the issuer’s Class B common stock, par value $0.01 per share, outstanding.

Documents Incorporated by Reference: Portions of Registrant’s definitive proxy statement for its [removed: 2024] [added: 2025] annual meeting of shareholders are incorporated by reference in Part III of this Form 10\-K.

ANNUAL REPORT ON FORM 10\-K FOR THE YEAR ENDED DECEMBER 31, [removed: 2023][added: 2024]

| ITEM 1A | | [Risk Factors](#RiskFactors) | [removed: 20] [added: 19] |

| ITEM 1B | | [Unresolved Staff Comments](#UnresolvedStaffComments) | [removed: 35] [added: 34] |

| ITEM 2 | | [Properties](#Properties) | [removed: 37] [added: 36] |

| ITEM 3 | | [Legal Proceedings and Regulatory Matters](#LegalProceedings) | [removed: 38] [added: 37] |

| ITEM 4 | | [Mine Safety Disclosures](#MineSafety) | [removed: 38] [added: 37] |

| ITEM 5 | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#MarketForCommonEquity) | [removed: 39] [added: 38] |

| ITEM 7 | | [Management’s Discussion and Analysis of Financial Condition and Results of Operations](#MDA) | [removed: 41] [added: 40] |

| ITEM 7A | | [Quantitative and Qualitative Disclosures about Market Risk](#MarketRisk) | [removed: 60] [added: 61] |

| ITEM 8 | | [Financial Statements and Supplementary Data](#FinancialStatements) | [removed: 65] [added: 66] |

| ITEM 9 | | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ChangesAndDisagreements) | [removed: 107] [added: 111] |

| ITEM 9A | | [Controls and Procedures](#ControlsAndProcedures) | [removed: 107] [added: 111] |

| ITEM 9B | | [Other Information](#Other_Information) | [removed: 109] [added: 113] |

| ITEM 10 | | [Directors, Executive Officers and Corporate Governance](#DirectorsOfficers) | [removed: 109] [added: 113] |

| ITEM 11 | | [Executive Compensation](#ExecutiveCompensation) | [removed: 109] [added: 115] |

| ITEM 12 | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#BeneficialOwners) | [removed: 109] [added: 115] |

| ITEM 13 | | [Transactions with Related Persons, Promoters and Certain Control Persons](#TransactionsRelatedPersons) | [removed: 109] [added: 115] |

| ITEM 14 | | [Principal Accountant Fees and Services](#AccountantFees) | [removed: 109] [added: 115] |

| ITEM 15 | | [Exhibits and Financial Statement Schedules](#Exhibits) | [removed: 111] [added: 116] |

| ITEM 16 | | [10-K Summary](#Summary_10K) | [removed: 112] [added: 118] |

| | | [Overview](#Overview) | 2 |

| | | [Available Information](#Available_Info) | 2 |

| | | [Our Organizational Structure and Overview of Recapitalization Transaction](#Org_Structure)s | 3 |

| | | [Nature of Operations](#Nature_Operations) | 4 |

| | | [Technology](#Technology) | 10 |

| | | [Clearing and Margining](#Clearing_Margining) | 12 |

| | | [Risk Management Activities](#Risk_Mgmt_Activitie) | 12 |

| | | [Customers](#Customers) | 13 |

| | | [Human Capital](#Human_Capital) | 13 |

| | | [Competition](#Competition) | 14 |

| | | [Regulation](#Regulation) | 15 |

| ITEM 6 | | [Reserved](#Reserved) | |

| | | [Business Overview](#Business_Overview) | 40 |

| | | [Business Environment](#Business_Environment) | 40 |

| | | [Financial Overview](#Financial_Overview) | 41 |

| | | [Certain Trends and Uncertainties](#Certain_Trends_Uncertainties) | 43 |

| | | [Trading Volumes and Customer Statistics](#Trade_Volumes_Cust_Stats) | 44 |

| | | [Results of Operations](#Results_of_Ops) | 46 |

| | | [Liquidity and Capital Resources](#Liquidity_Cap_Resources) | 56 |

| | | [Critical Accounting Policies and Estimates](#Critical_Acct_Policy_Estimates) | 59 |

| ITEM 9C | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#Item_9C) | 113 |

| ITEMS 15 (a)(1) and 15 (a)(2) | | [Index to Financial Statements and Financial Statement Schedule](#Index) | 112 |

As part of our overall risk management framework, [removed: we have processes in place] [added: our cybersecurity program is designed] to identify, assess, and manage [removed: material risks from cybersecurity threats.][added: cyber risks.]

[removed: # Our cybersecurity program is designed to identify, assess, and manage cyber risks. The program involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks.] We continually evaluate the current threat landscape [removed: in an effort] to identify material risks arising from new and evolving cybersecurity threats.

[removed: Board] [added: Management and Board] Oversight of Cybersecurity Risks

Our Board of Directors receives periodic updates on cybersecurity matters [added: and the overall state of our cybersecurity program] from our [removed: Chief Executive Officer] [added: CEO] (based on consultation with our [removed: Chief Information Security Officer (“CISO”)] [added: CISO] and other senior members of our Information Security and/or Technology teams).

The Company’s management, including the Company’s [removed: Chief Information Officer,] Executive Vice President of [removed: Technology,] [added: Technology] and [removed: CISO,] [added: Chief Information Security Officer (“CISO”),] are responsible for assessing and managing material risks from cybersecurity threats.

The Company’s management, including through its oversight of the Company’s policies and procedures regarding cybersecurity, is actively involved in the prevention, detection, mitigation, and remediation of cybersecurity incidents impacting [added: or with] the [added: potential to impact the] Company.

Additionally, the Company’s Internal Audit Group periodically audits aspects of the Company’s cybersecurity program and [removed: provides] reports [added: the results of such audits] to the Board’s Audit Committee, and an external audit firm conducts an annual SOC 2 attestation of the Company’s information security controls.

During the reporting period and through the issuance of this Annual Report on Form 10-K, the Company has not identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that the Company believes have materially affected, or are reasonably likely to materially [removed: affect,] [added: affect] the Company, including its business strategy, operational results, and financial condition.

We are a global financial services firm, with a longstanding commitment to providing a reliable and secure trading environment for our customers.

Technology is at the core of our business, with customers, exchanges, clearing houses, counterparties, and third-party service providers interacting with our systems and applications on an ongoing basis.

As a consequence, we are subject to significant cybersecurity risks.

Moreover, such risks have been increasing over time, due to the growing sophistication of cyber threat actors, geo-political instability, and advances in technology, such as AI, which are known to have been misused in cyber-attacks.

The program involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks.

If a cybersecurity incident occurs, incident response procedures are in place to ensure that the occurrence is appropriately reported to the CISO and senior management.

Where necessary, business continuity plans are mobilized to minimize disruption to business operations.

The Company has established the Cyber Materiality Committee (“CMC”), whose purpose is to review cybersecurity incidents escalated to it by our Threat & Incident Management Team and determine whether they are material and thus require a disclosure on Form 8-K.

CMC’s membership includes the Chief Executive Officer (“CEO”), the Chief Financial Officer, the Executive Vice President of Technology, the CISO, and other senior leaders.

Cybersecurity Program Overview

# We engage external experts, including cybersecurity assessors, consultants, and auditors to evaluate cybersecurity measures and risk management processes.

# Where we engage or rely on third parties, including suppliers, vendors, and service providers, our information security personnel have processes in place to identify and manage risks from cybersecurity threats associated with our use of such third parties.

‎

In addition, a member of senior management responsible for the Company’s Information Security team provides an annual briefing to our Board of Directors regarding the overall state of our cybersecurity program, information on the current cybersecurity threat landscape, risks from cybersecurity threats and any cybersecurity incidents that are reasonably likely to materially affect, or which have materially affected, the Company.

Management's Role in Cybersecurity Risk Management

Specifically:

*Dr. Thomas Frank*, Executive Vice President and Chief Information Officer: Dr. Frank has been with the Company since 1985 and was instrumental in the development of the Company’s early market making systems.

Dr. Frank became Chief Information Officer in 2006.

Dr. Frank is responsible for the Company’s technical infrastructure and operations and information security, among other duties.

Dr. Frank is a member of the Board of Directors of OCC.

Dr. Frank received an S.B. and a Ph.D. in Physics from the Massachusetts Institute of Technology.

*Somayajulu (Soma) Bulusu*, Executive Vice President of Technology: Mr. Bulusu joined the Company as EVP of Technology in February 2024.

Mr. Bulusu has over 25 years of experience in engineering, product, and service delivery.

Mr. Bulusu joined the Company from Chewy, Inc., where he led the Information Technology and Engineering teams.

His previous roles include leadership positions at Amazon, Nuance, and TouchCommerce.

*Dr. Boris Kogan*, Chief Information Security Officer: Dr. Kogan has served as the Company’s Chief Information Security Officer since 2016.

Dr. Kogan has over 20 years of cybersecurity management experience in the financial services sector.

Earlier in his career, after obtaining a Ph.D. in Computer Science from Princeton University, Dr. Kogan served on the faculty of George Mason University, where he conducted government-sponsored research in cybersecurity.

We lease office and data center facilities in [removed: 27] [added: 34] cities throughout the world where we conduct our operations as set forth below.

The table below presents certain information with respect to our leased facilities as of December 31, [removed: 2023.][added: 2024.]

| | Other [removed: (9] [added: (11] locations) | 39,328 | | Office space and data center | | |

| | Budapest, Hungary | [removed: 36,782] [added: 32,829] | | Office space | | |

| | Zug, Switzerland | 36,635 | | Office space [removed: and data center] | | |

| | Dublin, Ireland | 17,982 | | Office space [added: and data center] | | |

| | Other [removed: (2] [added: (4] locations) | 2,769 | | Office space [added: and data center] | | |

| | Mumbai, India | 81,553 | | Office space [added: and data center] | | |

| | Other [removed: (6] [added: (9] locations) | [removed: 20,444] [added: 19,836] | | Office space [added: and data center] | | |

[removed: Common Stock Information][added: Market Information for Common Stock]

As of February [removed: 20, 2024,] [added: 19, 2025,] there were [removed: 35] [added: 39] holders of record, which does not reflect those shares held beneficially or those shares held in “street” name.

We currently intend to pay quarterly dividends of [removed: $0.10] [added: $0.25] per share to our common stockholders for the foreseeable future.

The graph below compares cumulative total stockholder return on our common stock, the S&P 500 Index and the Nasdaq Financial\-100 Index from December 31, [removed: 2018] [added: 2019] to December 31, [removed: 2023.][added: 2024.]

The comparison assumes $100 was invested on December 31, [removed: 2018] [added: 2019] in our common stock and each of the foregoing indices and assumes reinvestment of dividends before consideration of income taxes.

][added: 3](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231x10kg002.jpg)]

From 2019 through [removed: 2023,] [added: 2024,] the Company issued [removed: 420,000 shares and an additional 50,000] [added: 620,000] shares [removed: in January 2024] to IBG LLC for distribution to eligible customers of certain of its subsidiaries.

On July [removed: 27, 2023,] [added: 25, 2024,] the Company filed a Prospectus Supplement on Form 424B5 (File Number 333-273451) with the SEC to issue [removed: 2,632,748] [added: 333,000] shares of common stock (with a fair value of [removed: $229] [added: $39] million) in exchange for an equivalent number of shares of member interests in IBG [removed: LLC.][added: LLC, in accordance with the Exchange Agreement.]

As a consequence of [removed: these] redemption [removed: transactions,] [added: transactions in accordance with the Exchange Agreement, distribution of shares to customers under one or more promotions,] and distribution of shares to [removed: employees,] [added: employees pursuant to the Company’s amended 2007 Stock Incentive Plan,] IBG, Inc.’s interest in IBG LLC has increased to approximately [removed: 25.4%,] [added: 25.8%,] with Holdings owning the remaining [removed: 74.6%] [added: 74.2%] as of December 31, [removed: 2023.][added: 2024.]

The redemptions also resulted in an increase in the Holdings interest held by Mr. Thomas Peterffy and his affiliates from approximately 84.6% at the IPO to approximately [removed: 91.3%] [added: 91.4%] as of December 31, [removed: 2023.][added: 2024.]

The table below presents information about shares of common stock available for future awards under all the Company’s equity compensation plans as of December 31, [removed: 2023.][added: 2024.]

| approved by security holders | N/A | | N/A | | [removed: 9,996,406] [added: 9,420,112] |

There is no public trading market for our Class B common stock, which is held by Holdings.

Holders of Record

For more information regarding dividends see Note 4 – “Equity and Earnings per Share” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.

The Company has authorized a total of 1,000,000 shares of common stock to be issued under these promotions.

| Total | — | | — | | 9,420,112 |

| Total | — | | — | | 9,996,406 |

‎

‎

| [Report of Independent Registered Public Accounting Firm (PCAOB ID No.](#Audit_Opinion) 34) | [removed: 66] [added: 67] |

| [Consolidated Statements of Financial [removed: Condition as of December 31, 2023 and 2022](#BalanceSheet)] [added: Condition](#BalanceSheet)] | [removed: 68] [added: 69] |

[removed: | [Consolidated Statements] [added: Included in “Employee compensation and benefits” expense in the consolidated statements] of [removed: Comprehensive Income] [added: comprehensive income were $8 million, $7 million and $6 million of plan contributions] for the years ended December 31, [added: 2024,] 2023, [removed: 2022,] and [removed: 2021](#IS) | 69 |][added: 2022, respectively.]

| [Notes to Consolidated Financial Statements](#FinancialStatementNotes) | [removed: 72] [added: 73] |

We have audited the accompanying consolidated statements of financial condition of Interactive Brokers Group, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the related consolidated statements of comprehensive income, cash flows and changes in equity, for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] and the related [removed: notes and the schedules listed in the Index at Item 15] (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 26, 2024,] [added: 27, 2025,] expressed an unqualified opinion on the Company's internal control over financial reporting.

Performing audit procedures to evaluate the reasonableness of management’s interpretation of tax law in a multitude of jurisdictions across the Company’s global operations, and its estimate of the associated [added: income] tax expense and deferred tax assets and liabilities, required a high degree of auditor judgment and increased effort, including the need to involve our income tax specialists.

| (in millions, except share [added: or per share] amounts) | | [added: 2024 | | |] 2023 | | | 2022 | |

| Cash and cash equivalents | | [removed: $] | [added: 3,633 | | |] 3,753 | | [removed: $] | 3,436 |

| Cash [removed: -] segregated for regulatory purposes | | | [added: 36,600 | | |] 28,840 | | | 25,167 |

| Securities - segregated for regulatory purposes | | | [removed: 35,386] [added: 27,846] | | | [removed: 31,781] [added: 35,386] |

| Securities borrowed | | | [removed: 5,835] [added: 5,369] | | | [removed: 4,749] [added: 5,835] |

| Securities purchased under agreements to resell | | | [removed: 5,504] [added: 6,575] | | | [removed: 6,029] [added: 5,504] |

| Financial instruments owned | | | [removed: 1,422] [added: 1,847] | | | [removed: 396] [added: 1,422] |

| Financial instruments owned and pledged as collateral | | | [removed: 66] [added: 77] | | | [removed: 89] [added: 66] |

| Total financial instruments owned, at fair value | | | [removed: 1,488] [added: 1,924] | | | [removed: 485] [added: 1,488] |

| Customers, less allowance for credit losses of [removed: $10] [added: $25] and $10 as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | [removed: 44,472] [added: 64,432] | | | [removed: 38,760] [added: 44,472] |

| Brokers, dealers, and clearing organizations | | | [removed: 1,643] [added: 2,196] | | | [removed: 3,469] [added: 1,643] |

| Interest | | | [removed: 375] [added: 446] | | | [removed: 341] [added: 375] |

| Total receivables | | | [removed: 46,490] [added: 67,074] | | | [removed: 42,570] [added: 46,490] |

| Other assets | | [added: $] | 1,127 | | [added: $] | [removed: 926] [added: (172)] | [added: | $ | 955 |]

| Total assets | | $ | 128,423 | | $ | [removed: 115,143] [added: (172)] | [added: | $ | 128,251 |]

| Short-term borrowings | | $ | [removed: 17] [added: 14] | | $ | [removed: 18] [added: 17] |

| Securities loaned | | | [removed: 11,347] [added: 16,248] | | | [removed: 8,940] [added: 11,347] |

| Financial instruments sold, but not yet purchased, at fair value | | | [removed: 193] [added: 293] | | | [removed: 146] [added: 193] |

| Customers | | | [removed: 101,012] [added: 115,343] | | | [removed: 93,195] [added: 101,012] |

| Brokers, dealers, and clearing organizations | | | [removed: 590] [added: 476] | | | [removed: 291] [added: 590] |

| Affiliate | | | [removed: 210] [added: 195] | | | [removed: 214] [added: 210] |

| Accounts payable, accrued expenses and other liabilities | | [added: $] | 676 | | [added: $] | [removed: 531] [added: (172)] | [added: | $ | 504 |]

| Interest | | | 311 | | | [removed: 193] [added: 311] |

| Total payables | | [added: $] | 102,799 | | [added: $] | [removed: 94,424] [added: (172)] | [added: | $ | 102,627 |]

| Total liabilities | | [added: $] | 114,356 | | [added: $] | [removed: 103,528] [added: (172)] | [added: | $ | 114,184 |]

| Class A – Authorized - 1,000,000,000, Issued - [removed: 107,178,928] [added: 109,061,059] and [removed: 103,057,148] [added: 107,178,928] shares, Outstanding – [removed: 107,045,894] [added: 108,904,613] and [removed: 102,887,728] [added: 107,045,894] shares as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | 1 | | | 1 |

| Class B – Authorized, Issued and Outstanding – 100 shares as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | — | | | — |

| Additional paid-in capital | | | [removed: 1,726] [added: 1,816] | | | [removed: 1,581] [added: 1,726] |

| Retained earnings | | | [removed: 1,852] [added: 2,515] | | | [removed: 1,294] [added: 1,852] |

| Accumulated other comprehensive income, net of income taxes of $0 and $0 as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | [removed: 8] [added: (45)] | | | [removed: (22)] [added: 8] |

| Treasury stock, at cost, [removed: 133,034] [added: 156,446] and [removed: 169,420] [added: 133,034] shares as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] | | | [removed: (3)] [added: (7)] | | | [removed: (6)] [added: (3)] |

| Total stockholders’ equity | | | [removed: 3,584] [added: 4,280] | | | [removed: 2,848] [added: 3,584] |

| [Consolidated Statements of Comprehensive Income](#IS) | 70 |

| [Consolidated Statements of Cash Flows](#StatementOfCashFlows) | 71 |

| | |

| [Consolidated Statements of Change in Equity](#SSE) | 72 |

| | |

| | |

| [Note 1. Organization of Business](#FN1) | 73 |

| [Note 2. Significant Accounting Policies](#FN2) | 73 |

| [Note 3. Trading Activities and Related Risks](#FN3) | 83 |

| [Note 4. Equity and Earnings per Share](#FN4) | 84 |

| [Note 5. Comprehensive Income](#FN5) | 87 |

| [Note 6. Financial Assets and Financial Liabilities](#FN6) | 88 |

| [Note 7. Collateralized Transactions](#FN7) | 94 |

| [Note 8. Revenue from Contracts with Customers](#FN8) | 95 |

| [Note 9. Other Income (Loss)](#FN9) | 98 |

| [Note 10. Employee Incentive Plans](#FN10) | 98 |

| [Note 11. Income Taxes](#FN11) | 100 |

| [Note 12. Leases](#FN12) | 102 |

| [Note 13. Property, Equipment and Intangible Assets](#Note_13) | 103 |

| [Note 14. Commitments, Contingencies and Guarantees](#FN14) | 103 |

| [Note 15. Segment Reporting and Geographic Information](#FN15) | 106 |

| [Note 16. Regulatory Requirements](#FN16) | 107 |

| [Note 17. Related Party Transactions](#Related_Party) | 108 |

| [Note 18. Parent Company Condensed Financial Statements](#FN18) | 109 |

| [Note 19. Subsequent Events](#FN19) | 110 |

February 27, 2025

| Other assets | | | 1,121 | | | 955 |

| Total assets | | $ | 150,142 | | $ | 128,251 |

| Accounts payable, accrued expenses and other liabilities | | | 665 | | | 504 |

| Total payables | | | 116,990 | | | 102,627 |

| Total liabilities | | | 133,545 | | | 114,184 |

| Total liabilities and equity | | $ | 150,142 | | $ | 128,251 |

| Net income available for common stockholders | | $ | 755 | | $ | 600 | | $ | 380 |

| Cash, cash equivalents and restricted cash at end of period | | $ | 40,233 | | $ | 32,593 | | $ | 28,603 |

| Comprehensive income | | | | | | | | | | | | | | 755 | | | (53) | | | 702 | | | 2,498 | | | 3,200 |

| Balance, December 31, 2024 | | 109,061,059 | | $ | 1 | | $ | 1,816 | | $ | (7) | | $ | 2,515 | | $ | (45) | | $ | 4,280 | | $ | 12,317 | | $ | 16,597 |

(1)In April of 2024, the Company increased the quarterly dividend from $0.10 per share to $0.25 per share.

| | |

| | |

| | |

| [Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022, and 2021](#StatementOfCashFlows) | 70 |

| [Consolidated Statements of Change in Equity for the years ended December 31, 2023, 2022, and 2021](#SSE) | 71 |

Greenwich, CT

*‎*

February 26, 2024

| Issuances of senior notes | | | — | | | — | | | 1,428 |

| Redemptions of senior notes | | | — | | | — | | | (1,524) |

| Balance, December 31, 2020 | | 90,909,889 | | $ | 1 | | $ | 1,244 | | $ | (3) | | $ | 683 | | $ | 26 | | $ | 1,951 | | $ | 7,052 | | $ | 9,003 |

| Comprehensive income | | | | | | | | | | | | | | 308 | | | (22) | | | 286 | | | 1,253 | | | 1,539 |

(“IBCE”); Interactive Brokers (India) Private Limited (“IBI”); Interactive Brokers Hong Kong Limited (“IBHK”); Interactive Brokers Securities Japan, Inc. (“IBSJ”); Interactive Brokers Singapore Private Limited (“IBSG”); and Interactive Brokers Australia Pty Limited (“IBA”).

| | | $ | 35,386 | | $ | 31,781 |

| | | $ | 210 | | $ | 173 |

Staff Accounting Bulletin No. 121 (“SAB 121”) requires an entity to recognize a liability to reflect its obligation to safeguard the crypto-assets held for its platform users and a corresponding safeguarding asset on its balance sheet, even when the Company does not control the crypto-assets.

Both the crypto-asset safeguarding liability and the corresponding safeguarding asset shall be measured at the fair value of the crypto-assets held for the platform users with the measurement of the safeguarding asset taking into account any potential loss events.

The Company has entered into agreements with third-party Cryptocurrency Service Providers (“CSPs”), which provide (i) cryptocurrency exchange platforms and services whereby investors can buy and sell certain cryptocurrencies and (ii) custody services for certain cryptocurrencies, enabling some of our customers to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and potentially other cryptocurrencies via CSPs.

Even though the Company is not responsible for the safeguarding of crypto-assets at the CSPs, its customers’ crypto-assets held at the CSPs are deemed to be in scope of SAB 121.

As of December 31, 2023, the fair value of the Company’s customers’ crypto-assets held at the CSPs that the Company recognized on its balance sheet for both the crypto-asset safeguarding liability and the corresponding safeguarding asset, which are included in “accounts payable, accrued expenses and other liabilities” and “other assets,” respectively, in the consolidated statements of financial condition, was $172 million ($80 million as of December 31, 2022), which consisted of $120 million of Bitcoin, $50 million of Ethereum and $2 million of other crypto-assets.

Changes in the fair value of crypto-assets, held by our customers, do not impact our consolidated statements of comprehensive income unless a loss event is identified.

As of December 31, 2023, no loss events were identified.

| Business Combinations (Topic 805) ‎ ‎*Issued October 2021* | | Requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, “Revenue from Contracts with Customers”. At the acquisition date, the acquirer should account for the related revenue contracts as if it had originated the contracts. | | Effective date: January 1, 2023. The changes did not have a material impact on the Company’s consolidated financial statements. |

| Ownership % | | 25.4% | | 74.6% | | 100.0% |

| Membership interests | | 107,049,483 | | 313,976,354 | | 421,025,837 |

As of December 31, 2023 and 2022, 1,000,000,000 shares of Class A common stock were authorized, of which 107,178,928 and 103,057,148 shares have been issued; and 107,045,894 and 102,887,728 shares were outstanding, respectively.

In addition, 10,000 shares of preferred stock have been authorized, of which no shares are issued or outstanding as of December 31, 2023 and 2022.

| Crypto-asset safeguarding asset | | | — | | | 172 | | | — | | | 172 |

| Crypto-asset safeguarding liability | | | — | | | 172 | | | — | | | 172 |

| Crypto-asset safeguarding asset | | | — | | | 80 | | | — | | | 80 |

| Stocks | | $ | 121 | | $ | — | | $ | — | | $ | 121 |

| Crypto-asset safeguarding liability | | | — | | | 80 | | | — | | | 80 |

| | | | | | | | | | | | | | | | |

| Total financial liabilities, not measured at fair value | | $ | 102,637 | | $ | 102,637 | | $ | — | | $ | 102,637 | | $ | — |

| | | December 31, 2022 | | | | | | | | | | | | | | | |

| Securities borrowed | | | 4,749 | | | | — | | | | 4,749 | | | (4,597) | | | 152 |

| Total | | $ | 37,897 | | | $ | — | | | $ | 37,897 | | $ | (37,700) | | $ | 197 |

| Securities loaned | | $ | 8,940 | | | $ | — | | | $ | 8,940 | | $ | (8,260) | | $ | 680 |

| Total | | $ | 8,958 | | | $ | — | | | $ | 8,958 | | $ | (8,276) | | $ | 682 |

| Stocks | | $ | 8,837 | | $ | — | | $ | — | | $ | — | | $ | 8,837 |

| Foreign government securities | | | 2 | | | — | | | — | | | — | | | 2 |

| | | $ | 187,255 | | $ | 60,496 | | $ | 138,119 | | $ | 55,171 |

| U.S. and foreign government securities | | | 38 | | | 35 |

Management, including our CEO and our CFO, assessed the effectiveness of IBG, Inc.’s internal control over financial reporting as of December 31, [removed: 2023.][added: 2024.]

Based on management’s assessment and those criteria, management concluded that IBG, Inc. maintained effective internal control over financial reporting as of December 31, [removed: 2023.][added: 2024.]

The effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which appears herein.

No changes to our internal control over financial reporting for the year ended December 31, [removed: 2023] [added: 2024] have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We have audited the internal control over financial reporting of Interactive Brokers Group, Inc. and subsidiaries (the “Company”) as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements as of and for the year ended December 31, [removed: 2023,] [added: 2024,] of the Company and our report dated February [removed: 26, 2024,] [added: 27, 2025,] expressed an unqualified opinion on those financial statements.

February 27, 2025

February 26, 2024

During the quarter ended December 31, [removed: 2023,] [added: 2024,] none of our directors or officers adopted, modified or terminated a contract, instruction or written plan for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a “non-Rule 10b5-1 trading arrangement”, as defined in Item 408(c) of Regulation S-K.

PART III

Not applicable.

PART III

Executive Officers and Directors of Interactive Brokers Group, Inc.

| | | | |

| --- | --- | --- | --- |

| Name | Age | | Position |

| Thomas Peterffy | 80 | | Chairman of the Board of Directors |

| Earl H. Nemser | 78 | | Vice Chairman and Director |

| Milan Galik | 58 | | Chief Executive Officer, President and Director |

| Paul J. Brody | 64 | | Chief Financial Officer, Treasurer, Secretary and Director |

| Thomas A. Frank | 69 | | Executive Vice President |

| Lawrence E. Harris | 68 | | Director (Independent) |

| William Peterffy | 35 | | Director |

| Nicole Yuen | 62 | | Director (Independent) |

| Jill Bright | 62 | | Director (Independent) |

| Richard Repetto | 66 | | Director (Independent) |

*Thomas Peterffy –* Mr. Peterffy, our founder, has been the Chairman of our Board since November 2006 and Chief Executive Officer from November 2006 to September 2019.

Mr. Peterffy has been at the forefront of applying computer technology to automate trading and brokerage functions since he emigrated from Hungary to the United States in 1965.

In 1977, after purchasing a seat on the American Stock Exchange and trading as an individual market maker in equity options, Mr. Peterffy was among the first to apply a computerized mathematical model to continuously value equity option prices.

By 1986, Mr. Peterffy developed and employed a fully integrated, automated market making system for stocks, options and futures.

As this pioneering system extended around the globe, online brokerage functions were added and, in 1993, Interactive Brokers was formed.

*Earl H.

Nemser –* Mr. Nemser has been our Vice Chairman since November 2006.

Mr. Nemser has been the Vice Chairman of IBG LLC and its predecessors since 1988 and serves as a director and/or officer for various subsidiaries of IBG LLC.

Mr. Nemser serves as an Independent Advisor to the law firm Dechert LLP.

Mr. Nemser served as Special Counsel to Dechert LLP from January 2005 to October 2018.

Prior to such time, Mr. Nemser served as Partner at the law firms of Swidler Berlin Shereff Friedman, LLP from 1995 to December 2004 and Cadwalader, Wickersham & Taft LLP prior to 1995.

Mr. Nemser received a Bachelor of Arts degree in economics from New York University in 1967 and a Juris Doctor, magna cum laude, from Boston University School of Law in 1970.

*Milan Galik –* Mr. Galik joined us in 1990 as a software developer and has served as the Chief Executive Officer of the Company since October 2019.

Mr. Galik has also served as President of the Company and IBG LLC since October 2014.

Mr. Galik served as Senior Vice President, Software Development of IBG LLC from October 2003 to October 2014.

In addition, Mr. Galik has served as Vice President of IBKR Securities Services LLC since April 1998 and served as a member of the board of directors of the Boston Options Exchange from October 2013 to May 2023.

Mr. Galik received a Master of Science degree in electrical engineering from the Technical University of Budapest in 1990.

*Paul J.

Brody –* Mr. Brody has been our Chief Financial Officer, Treasurer and Secretary since November 2006.

Mr. Brody joined the Company in 1987 and has served as Chief Financial Officer of IBG LLC since December 2003.

Mr. Brody serves as a director and/or officer for various of our subsidiaries.

From 2005 to 2012, Mr. Brody served as a director, and for a portion of the time as member Vice Chairman, of The Options Clearing Corporation, of which Interactive Brokers LLC and IBKR Securities Services LLC are members.

Mr. Brody also served as a director of Quadriserv Inc., an electronic securities lending platform provider, from 2009 to 2015.

Mr. Brody received a Bachelor of Arts degree in economics from Cornell University in 1982.

*Thomas A.

Frank –* Dr. Frank joined us in 1985 and has served since July 1999 as Executive Vice President of Interactive Brokers LLC.

[removed: 3.Exhibits][added: 2.Exhibits]

| 4.1 | [Description of the Registrant’s [removed: Securities.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex4_1.htm)] [added: Securities.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex4_1.htm)] |

| 19.1 | [Insider Trading Policies and [removed: Procedures.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex19_1.htm)] [added: Procedures.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex19_1.htm)] |

| 21.1 | [Subsidiaries of the [removed: registrant.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex21_1.htm)] [added: registrant.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex21_1.htm)] |

| 23.1 | [Consent of Independent Registered Public Accounting [removed: Firm.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex23_1.htm)] [added: Firm.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex23_1.htm)] |

| 31.1 | [Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes\-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex31_1.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex31_1.htm)] |

| 31.2 | [Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes\-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex31_2.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex31_2.htm)] |

| 32.1 | [Certification of Chief Executive Officer, pursuant to Section 906 of the Sarbanes\-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex32_1.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex32_1.htm)] |

| 32.2 | [Certification of Chief Financial Officer, pursuant to Section 906 of the Sarbanes\-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex32_2.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231xex32_2.htm)] |

| 97.1 | [Policy Relating to Recovery of Erroneously Awarded [removed: Compensation.](https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex97_1.htm)] [added: Compensation. (filed as Exhibit 97.1 to the Annual Report on Form 10-K for the Annual Period Ended December 31, 2023 filed by the Company on February 27, 2024)](http://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231xex97_1.htm)] |

* Attached as Exhibit 101 to this Annual Report on Form 10\-K for the annual period ended December 31, [removed: 2023,] [added: 2024,] are the following materials formatted in iXBRL (Inline eXtensible Business Reporting Language) (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Stockholders’ Equity and (v) Notes to the Consolidated Financial Statements tagged in detail levels 1\-4.

2.Financial Statement Schedule

The financial statement schedule required in the Annual Report on Form 10\-K is listed on page F\-1 hereof.

The required schedule appears on pages F\-1 through F\-5 hereof.

| | |

| --- | --- |

ITEMS.

15 (a)(1) and 15 (a)(2) INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE

Financial Statement Schedule

| Schedule I—Condensed Financial Information of Registrant (Parent Company Only) | |

| [Condensed Statements of Financial Condition as of December 31, 2023 and 2022](#PC_Balance_Sheet) | F - 1 |

| [Condensed Statements of Comprehensive Income for the Years ended December 31, 2023, 2022, and 2021](#PC_Income_Statement) | F - 2 |

| [Condensed Statements of Cash Flow for the Years ended December 31, 2023, 2022, and 2021](#PC_Cash_Flows) | F - 3 |

| [Notes to Condensed Financial Statements](#PC_Notes) | F \- 4 |

Date: February [removed: 26, 2024][added: 27, 2025]

| /s/ Thomas Peterffy Thomas Peterffy | | Chairman of the Board of Directors | | February [removed: 26, 2024] [added: 27, 2025] |

| /s/ Earl H. Nemser Earl H. Nemser | | Vice Chairman of the Board of Directors | | February [removed: 26, 2024] [added: 27, 2025] |

| /s/ Milan Galik Milan Galik | | Chief Executive Officer and President (Principal Executive Officer) | | February [removed: 26, 2024] [added: 27, 2025] |

| /s/ Denis mendonca Denis Mendonca | | Chief Accounting Officer (Principal Accounting Officer) | | February [removed: 26, 2024] [added: 27, 2025] |

| /s/ Lawrence E. Harris Lawrence E. Harris | | Director | | February [removed: 26, 2024] [added: 27, 2025] |

| /s/ NICOLE YUEN Nicole Yuen | | Director | | February [removed: 26, 2024] [added: 27, 2025] |

| | | | | |

| --- | --- | --- | --- | --- |

| /s/ RICHARD REPETTO Richard Repetto | | Director | | February 27, 2025 |

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

| INTERACTIVE BROKERS GROUP, INC. | | | | | | |

| (Parent Company Only) | | | | | | |

| CONDENSED STATEMENTS OF FINANCIAL CONDITION | | | | | | |

| | | December 31, | | | | |

| (in millions, except share amounts) | | 2023 | | | 2022 | |

| Assets | | | | | | |

| Cash and cash equivalents | | $ | 6 | | $ | 1 |

| Investments in subsidiaries, equity basis | | | 3,571 | | | 2,845 |

| Other assets | | | 230 | | | 231 |

| Total assets | | $ | 3,807 | | $ | 3,077 |

| Liabilities and Equity | | | | | | |

| Liabilities: | | | | | | |

| Payable to affiliates | | $ | 209 | | $ | 214 |

| Accrued expenses and other liabilities | | | 14 | | | 15 |

| | | | 223 | | | 229 |

| Stockholders' equity: | | | | | | |

| Common stock, $0.01 par value per share: | | | | | | |

| Class A – Authorized - 1,000,000,000, Issued - 107,178,928 and 103,057,148 shares, Outstanding – 107,045,994 and 102,887,728 shares as of December 31, 2023 and 2022 | | | 1 | | | 1 |

| Class B – Authorized, Issued and Outstanding – 100 shares as of December 31, 2023 and 2022 | | | — | | | — |

| Additional paid-in capital | | | 1,726 | | | 1,581 |

| Retained earnings | | | 1,852 | | | 1,294 |

| Accumulated other comprehensive income, net of income taxes of $0 and $0 as of December 31, 2023 and 2022 | | | 8 | | | (22) |

| Treasury stock, at cost, 133,034 and 169,420 shares as of December 31, 2023 and 2022 | | | (3) | | | (6) |

| Total equity | | | 3,584 | | | 2,848 |

| Total liabilities and equity | | $ | 3,807 | | $ | 3,077 |

See accompanying notes to the condensed financial statements.

F-1

| | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| INTERACTIVE BROKERS GROUP, INC. | | | | | | | | | |

| (Parent Company Only) | | | | | | | | | |

| CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | |

| | | Year-Ended December 31, | | | | | | | |

| (in millions) | | 2023 | | | 2022 | | | 2021 | |

| Income (loss) before income from subsidiaries | | $ | 5 | | $ | 4 | | $ | — |

| Undistributed gains of subsidiaries, net | | | 737 | | | 463 | | | 383 |

| Income tax expense | | | 142 | | | 87 | | | 75 |

| Net income | | $ | 600 | | $ | 380 | | $ | 308 |