| 01 March 2010

We're happy to hear from Interactive Brokers (IBKR) this afternoon, checking in on an otherwise slow Monday with their February monthly metrics. Trading activity for the company was slightly higher than year ago figures, but down 6% versus last month.

Our last report on Interactive Brokers highlighted the dismal 2009 results they turned in, hampered mostly by a 68% drop in market-making income. The company has also been squeezed by ever-tightening spreads. What they do have going for them is a hyper-active customer base that can generate commission income. That is, as long as they keep trading.

While the first of the year started off strong, February numbers indicate a flattening in trading activity. Highlights for the month:

• 137.7 thousand customer accounts, 21% higher than prior year.
• Ending customer equity of $15.9 billion, 79% higher than prior year and 5% higher than prior month.
• 369 thousand Daily Average Revenue Trades (DARTs), 3% higher than prior year and 6% lower than January.
• 617 annualized average cleared DARTs per customer account.

We're not too concerned with the trading activity, given the short month . In a good sign, that last number (DARTs per customer) is a 17% increase over the run rate we saw at year-end. We'll continue to keep an eye on overll trading levels and trades per customer, two key sources of revenue and income.