Interactive Brokers Group, Inc. Annual Report, Year Ended Dec 31, 2014

Interactive Brokers Group, Inc. (IBKR) reported its financial results for the year ended December 31, 2014. The company, a global electronic broker and market maker, saw its total net revenues slightly decrease by 3% to $1,043.3 million compared to the previous year. This was primarily driven by lower trading gains due to intense competition and low market volatility, partially offset by an increase in commissions and execution fees, as well as net interest income. The electronic brokerage segment demonstrated strong growth, with net revenues increasing by 16% to $952.3 million, largely due to higher customer trading volumes and increased customer balances and borrowings, leading to a significant improvement in pre-tax profit margin. Conversely, the market making segment experienced a 21% decline in net revenues to $284.4 million, reflecting the challenging environment for market makers. The company maintained a strong liquidity position and remained in compliance with all regulatory capital requirements, ending the year with $3.27 billion in aggregate excess regulatory capital. Looking ahead, IBKR highlighted the impact of the Swiss National Bank's action on January 15, 2015, which resulted in an estimated $129 million in net unsecured receivables after hedging, underscoring ongoing risks in volatile currency markets.