Interactive Brokers Group, LLC

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Interactive Brokers Group
InteractiveBrokers.jpg
Founded 1993
Headquarters Greenwich, Connecticut
Key People Thomas Peterffy, Chairman, CEO
Products brokerage for stocks, futures, options, Forex
Website www.interactivebrokers.com

Interactive Brokers Group is a futures commission merchant and broker-dealer that provides professional traders and investors with direct access to stocks, options, futures, bonds, and forex on more than 60 market centers worldwide from a single IB Universal Account.

History

Interactive Brokers Group began in 1982 as Timber Hill, Inc., an equity options trading group at the AMEX, led by founder Thomas Peterffy.[1] The following year, Timber Hill introduced the first handheld computers used for trading. The system allowed traders to track and reprice positions in real-time. By 1985, Timber Hill's trading system allowed for the central pricing and management of risk on a derivatives portfolio across multiple locations around the country.

In 1990, Timber Hill began trading equity derivatives at the fully-automated Deutsche Terminborse (DTB) (now Eurex). The company would continue to expand into all of the major equity and futures exchanges.

In 1993, Peterffy incorporated Interactive Brokers, Inc. as a U.S. broker-dealer, which opened Timber Hill's electronic network and trade execution systems to customers.

In 1999, the company provides a "smart routing" linkage for equity options listed on multiple venues. This would become the standard order routing model for the industry. Also in 1999, Interactive Brokers begins clearing online orders for stocks and equity derivatives.

In 2001, the company name was officially changed from Timber Hill Group LLC to Interactive Brokers Group LLC.

On May 3, 2007, the company sold 40 million shares in an initial public offering.

In 2011, IB becomes the largest online broker in terms of daily average revenue trades.

In July of 2012, the U.S. Commodity Futures Trading Commission (CFTC) issued an order filing and settling charges against Interactive Brokers LLC for "filing inaccurate large trader reports and failing to diligently supervise the handling and reporting of accounts." The CFTC order required Interactive to pay a $700,000 civil monetary penalty and prohibited Interactive from violating Section 4g of the Commodity Exchange Act and CFTC Regulations 17.00, 17.01, and 166.3, as charged.[2]

Products and Services

Key People

Registration

References

  1. IB Group History. Interactive Brokers.
  2. Press Release. Interactive Brokers LLC.

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