Interesting info from IB's quarterly conference call

[freedinner]

call transcript:

https://seekingalpha.com/article/43...ibkr-q3-2020-results-earnings-call-transcript

- Peterffy will start selling 20k shares every day from November, to pay for taxes only. With this pace, he would have sold all his holdings in 60 years..
- They have been working on getting a US bank charter. This has been delayed by the SEC-CFTC AML issue, but Peterffy seems to expect having a bank charter in 2-3 quarters.
- IB might be forced to temporarily stop the opening of new accounts from EU countries if the UK leaves without a deal in January and IB's new subsidiaries in Ireland and Central Europe do not get a local license in time.
- IB now has roughly 1 million accounts. Their next target is having 80m accounts or 1pc of the world population... direct quote from the call: "There is 1 country today where Interactive Brokers has a nearly 1% share of the population, clearly indicating that 1% or 80 million worldwide is not an impossible dream."


Unfortunately, nobody asked on the call which country this is? What is your guess?

Cayman Islands? Singapore? Estonia?

 

[JamesJ]

call transcript:

https://seekingalpha.com/article/43...ibkr-q3-2020-results-earnings-call-transcript

- Peterffy will start selling 20k shares every day from November, to pay for taxes only. With this pace, he would have sold all his holdings in 60 years..
- They have been working on getting a US bank charter. This has been delayed by the SEC-CFTC AML issue, but Peterffy seems to expect having a bank charter in 2-3 quarters.
- IB might be forced to temporarily stop the opening of new accounts from EU countries if the UK leaves without a deal in January and IB's new subsidiaries in Ireland and Central Europe do not get a local license in time.
- IB now has roughly 1 million accounts. Their next target is having 80m accounts or 1pc of the world population... direct quote from the call: "There is 1 country today where Interactive Brokers has a nearly 1% share of the population, clearly indicating that 1% or 80 million worldwide is not an impossible dream."


Unfortunately, nobody asked on the call which country this is? What is your guess?

Cayman Islands? Singapore? Estonia?

More like Monaco or San Marino imo...

 

[BKR88]

call transcript:

https://seekingalpha.com/article/43...ibkr-q3-2020-results-earnings-call-transcript

- Peterffy will start selling 20k shares every day from November, to pay for taxes only. With this pace, he would have sold all his holdings in 60 years..
- They have been working on getting a US bank charter. This has been delayed by the SEC-CFTC AML issue, but Peterffy seems to expect having a bank charter in 2-3 quarters.
- IB might be forced to temporarily stop the opening of new accounts from EU countries if the UK leaves without a deal in January and IB's new subsidiaries in Ireland and Central Europe do not get a local license in time.
- IB now has roughly 1 million accounts. Their next target is having 80m accounts or 1pc of the world population... direct quote from the call: "There is 1 country today where Interactive Brokers has a nearly 1% share of the population, clearly indicating that 1% or 80 million worldwide is not an impossible dream."


Unfortunately, nobody asked on the call which country this is? What is your guess?

Cayman Islands? Singapore? Estonia?

They would be closer to 1% if they had purchased Ninjatrader 10 years ago as I suggested

 

[newwurldmn]

call transcript:

https://seekingalpha.com/article/43...ibkr-q3-2020-results-earnings-call-transcript

- Peterffy will start selling 20k shares every day from November, to pay for taxes only. With this pace, he would have sold all his holdings in 60 years..
- They have been working on getting a US bank charter. This has been delayed by the SEC-CFTC AML issue, but Peterffy seems to expect having a bank charter in 2-3 quarters.
- IB might be forced to temporarily stop the opening of new accounts from EU countries if the UK leaves without a deal in January and IB's new subsidiaries in Ireland and Central Europe do not get a local license in time.
- IB now has roughly 1 million accounts. Their next target is having 80m accounts or 1pc of the world population... direct quote from the call: "There is 1 country today where Interactive Brokers has a nearly 1% share of the population, clearly indicating that 1% or 80 million worldwide is not an impossible dream."


Unfortunately, nobody asked on the call which country this is? What is your guess?

Cayman Islands? Singapore? Estonia?

Cayman, Bermuda or Bahamas where 90% of the account holders don't live on the island.

Certainly not a country in Africa.

 

[scalpi]

Switzerland

they have a large office, there defacto european headqarter, in Switzerland

 

[newwurldmn]

Switzerland

they have a large office, there defacto european headqarter, in Switzerland

8 million people in Switzerland. So that would be 80k accounts or 8percent of the total. Unlikely.

cayman only has like 30k people.

 

[Obelixtrader]

call transcript:
- IB might be forced to temporarily stop the opening of new accounts from EU countries if the UK leaves without a deal in January and IB's new subsidiaries in Ireland and Central Europe do not get a local license in time.

If they fail to obtian licences in time what that would mean for EU clients,which they active accounts by IB.

 

[luisHK]

If they fail to obtian licences in time what that would mean for EU clients,which they active accounts by IB.

IB sent this email a few weeks ago



Brexit Planning – Overview of IBKR Account Migration
Dear Client,

Interactive Brokers Group (“IBKR”) and its UK affiliate Interactive Brokers (U.K.) Limited (“IBUK”) have been planning for the end of the Brexit transition period, currently scheduled for 31st December 2020, and have been preparing alternative arrangements for our European customers. Our priority is to ensure a seamless transition and continuation in the provision of brokerage services to our customers with minimal disruption and minimal changes.

WHAT HAS HAPPENED SO FAR
In 2018 IBKR established Interactive Brokers Luxembourg SARL (“IBLUX”) and undertook an authorisation process in Luxembourg. IBLUX was approved in November 2019, albeit with some important constraints on the permitted scale of the business.

In consideration of our fast-growing brokerage business, we expanded our European footprint and are in the process of creating an additional broker based in the European Union: Interactive Brokers Ireland Limited (“IBIE”). This licensing process for IBIE with the Central Bank of Ireland is well underway and we expect to enter its final stages shortly.

WHAT IS CHANGING
Over the next few weeks, IBKR will be seeking your permission to transfer your account(s) from IBUK to one of the IBKR brokers based in the European Union. We will specify, in our next communication, whether your account is eligible for transfer to IBIE or IBLUX (“EU Brokers”). Transfer to IBIE is subject to IBIE obtaining a licence from the Central Bank of Ireland.

WHAT THIS MEANS FOR YOU
You will be provided with the following options:

1. Migration of all of your IBUK accounts and the applicable Customer Agreements to either IBLUX or IBIE, as determined by IBKR; or
2. Opportunity to decline the transfer.

There will be some important regulatory changes, which will be detailed in a Frequently Asked Questions (“FAQ”) document. A preliminary version of this document is available on our Knowledge Base. A final version, which will include a clear statement of the differences between your old account and new account capabilities, and a description of any services or protections that may be substantively different, will be provided when you receive your updated Customer Agreement.

If you do not consent to the transfer of your account to the indicated EU Broker or do nothing, your account may be restricted from opening new transactions or transferring new assets. You always have the ability to transfer your account to a broker of your choice outside the IBKR Group.

Our goal is to provide a service with minimum interruption during this account migration, and minimal changes to your IBKR experience.

NOTIFICATION OF TRANSFER
We will communicate with you prior to the actual transfer of your account(s) and provide any information that might be applicable (although we do not expect anything of substantial nature being communicated with this notification).

WHO YOU CAN CONTACT
You do not need to take any action in response to this letter. If you have any questions and/or you would like to discuss the matter further, please do not hesitate to contact our Client Service Center.
Interactive Brokers Client Services
Interactive Brokers (U.K.) Limited, FCA