Good day, everyone, and welcome to the Interactive Brokers' Fourth Quarter 2013 Earnings Results Conference Call. This call is being recorded. At this time, for opening remarks and introduction, I would like to turn the call over to Ms. Deborah Liston, Director of Investor Relations. Please go ahead.

Thank you, operator and welcome everybody. Hopefully, by now you’ve seen our fourth quarter earnings release, which was released today after the market closed, and which is also available on our website. Our speakers today are Thomas Peterffy, our Chairman and CEO and Paul Brody, our Group CFO. Today, we’ll start the call with some prepared remarks about the quarter and then we'll take questions. Today's call may include forward-looking statements, which represent the Company's belief regarding future events and by the nature are not certain and outside the Company's control. Our actual results and financial condition may differ possibly materially from what's indicated in these forward looking statements. We ask that you refer to the disclaimers in our press release. You should also review a description of the risk factors contained in our financial reports filed with the SEC. I'd now like to turn the call over to Thomas Peterffy.

Good afternoon everyone and thanks for joining us to review our fourth quarter performance. We ended 2013 on an upbeat note with strong performance from our Brokerage business which continues to fill this pipeline from the Market Making segment and drive the Company’s growth. Despite a typical seasonal slowdown we would normally see at the end of the year, we added more Brokerage account in the fourth quarter than each of the prior three quarters giving further credence to our growth momentum and the ability to outperform our industry peers in the long-term. This rising trend can be attributed not only through the steady flow of positive dogma of referrals we receive from our expanding customer base, but also through the success of our latest initiatives including segments both in marketing campaign and our determination to continue bolstering the value of our platform with new technological innovation. Case in point in the second half of 2013 we had rolled out a number of exciting new option trading tools that not only complement the extensive suite of tools we currently have, but that further solidify our reputation as the premier broker and the only options broker for the investors who are concerned with the execution prices which we know is an important determinant of overall investment performance. We basically review the operating environment of the fourth quarter we are pleased to see higher trading volume, regarding far by rising investor confidence, allowing us to record our highest quarterly commissions ever, persistently low interest rate also encouraged customers to take advantage of our industrial marginal lending rate, which currently range from 0.5% to 1.58% depending upon the size of the loan driving our margin balance to a record high. While we witness rising volatility levels early in the quarter fueled by it…

Thank you Thomas, good afternoon and thanks for joining the call, as visual arch we view the summary results, just join on get segment highlights before we take questions. Fourth quarter results shows continuing strength in the brokerage business and separate earnings in the Market Making segments. As compared to the year ago quarter net revenue for this quarter was driven by raising brokerage commissions and net interest income partially offset by declines in trading games and a loss on the Singapore stocks in there. Full year results showed similar strength in brokerage and spend Market Making profits further buffeted by adverse currency improvements, our net fee tax arty $451 million represented the return on average equity of 9%, and cost of margin of 42%. Our national statement includes the GAAP accounting presentation known as comprehensive income. Comprehensive income reports all currency translation in terms of losses including those that reflect changes in the U.S. dollar of the companies the U.S. dollar value of the companies of non-U.S. subsidiaries known as Other Comprehensive Income or OCI. These are reported in the statement of comprehensive income. The performance to the U.S. dollar relative to other currencies is quite mixed in 2013, bout third and the larger components in the currency basket, you call the global strengthened against the U.S. dollar and a number of other components weakened 4% to 10% against the dollar. In aggregate the GLOBAL as expected in U.S. dollar terms funds the 0.5% for the fourth quarter and 2.4% for this year. OCI is a component of the total global effect paying off the ordinate income increased our reported diluted net earnings per share $0.06 for the quarter and increases by $0.06 for the full year. The unusual loss was about $74 million related to the Singapore stocks…

Thank you. (Operator Instructions) Our first question comes from the line of Collin Cook from Sandler O'Neill. Mr. Cook your line is open. Would you please press your mute button? It seems he is away from his phone, we can move on. Our next question comes from the line of Sean Brown from Teton Capital. Sean Brown – Teton Capital Group, LLC: Hi, guys. Thanks for taking my question. Just real quick, I wanted to focus on Brokerage for a second and just comparing against sort of a watermark Q2 that had very high revenues, so it seems like versus Q2 commission and execution fees are down about $14 million, but on the expense side it doesn’t seem like commission and execution and clearing expenses really went down if I heard you correctly and thinking it went up a little bit. And then DARTs are still almost flat versus Q2 maybe down only 1%, but commission and execution fees were down a lot more than that, like 10%. So I am just wondering, puts and takes against a very good high Q2 and so the reasons for I guess revenue shrinking much of the date, commissions revenue shrinking and then expenses not early shrinking that much?

I am not sure what this has to do with the future I think that’s overall through our future volume, results over the year. I think that must be the nature of goal. Sean Brown – Teton Capital Group, LLC: Got it. So we had sort of strong stocks and a weak futures and it sounds like maybe futures are just like more profitable on a gross profit basis?

Strong stocks and weaker future than the second quarter volume-wise, stock-wise, but generally speaking because the exchange fees are so high and future is our gross profit. If one were to just look at the commissions versus the variable cost, the exchange fees, it’s well over future. Sean Brown – Teton Capital Group, LLC: Right, right. So that’s….

That’s not telling the whole picture. We have a product mix that contributes to both the revenue stream and the number of DARTs every quarter.

Also as we get larger accounts, the rate on this year, in other words, our commissions or fee, people who very few trades, they have developed more than people who do a larger number of pay. It is also through that introducing brokers and financial advisors, we take all their orders together to find their peers. So I think they’re using broker who have to concentrate just a few times to get a very low rate because with takeover there, I can’t really charge them based on their total count number of phase that we get from making business with them. Sean Brown – Teton Capital Group, LLC: Got it. So just new one toward larger accounts and sort of increase in account scheme volume discounts, should that continue to sort of adversely impact brokerage gross profit going forward?

I don’t think it adversely impacts gross profit, it reduces the commissions per trade and I very much hope that this spend is going to continue because overall the profits are increasing. Sean Brown – Teton Capital Group, LLC: Right, right, I guess, what I am looking at is commission and execution fees minus execution and clearing expenses and then some how like on a per share basis or on a per DART basis some combination of that, is that the right way to look at it?

You see I always look at the total profit, that’s what matters to me. Sean Brown – Teton Capital Group, LLC: Okay, fair enough and then my second question is on the renewal of the $10 account minimum fee on I guess, first this was the first that I’d heard that I don’t know if you could market that at all or not, but do you have plans to market that and so could this sort of be a catalyst for additional market share gains among sort of retail investors that really care about that $10 in minds?

It is surprising it’s not so much of the typical retail investor, it’s people who are tend to have large accounts and sometimes they sit on positions for a long time and almost they get $10 charge and they say that didn’t do any trade, how can you charge me and they can get really angry. And so we collect the information from people who moved their accounts and we ask them why you did that and there is two favorite response results that are changed financial advisors or are don’t want to pay in their activity. Sean Brown – Teton Capital Group, LLC: Got it. Increase in the promoter score and where to north of 40, last just quick question. I guess I was surprised that it seems like the average options trade size seem to decline some in the quarter, do you have any notion of why that may have occurred?

That I have no idea, sorry.

Down a little bit year-over-year, but it’s actually fairly consistent with the prior quarter up. Sean Brown – Teton Capital Group, LLC: All right, fair enough, thanks a lot guys.

Thank you. And our next question comes from the line of Rich Repetto from Sandler O'Neill. Richard H. Repetto – Sandler O'Neill & Partners LP: Yes hi, good evening Thomas, good evening Paul. My question is on the capital, I know you said 70% is with the broker, but could you go through the equity capital, the exact number at the broker what it was in the prior quarter as well at the market maker?

The 70% number was with asset on the balance sheet meaning because the customer business has grown in….

It’s not the capital it’s.

That’s quite housekeeping. Richard H. Repetto – Sandler O'Neill & Partners LP: Okay, well good then, can you give me the equity capital of the $5.1 billion, what’s at the broker and what’s at the Market Making and product that’s changed quarter-to-quarter?

It does split roughly 51% with the broker and 49% with the market maker. Richard H. Repetto – Sandler O'Neill & Partners LP: Okay. And 49% of, so it’s $2.5 billion, right around $2.5 billion, yes again, it is there well. The next question is, it looks like in the U.S. Thomas you pulled up on a quarter-to-quarter basis the market share pulled back and is that from a more conservative I think you might have mentioned it a little bit, but of a more conservative strategy?

Well, we keep dropping products that and hence that are very marginal and we feel that it really there is, the profit is not paying for the risk and work, but I must repeat that we are not going to go under the $5 billion capital. So since we are going to continue to carry that amount of capital and they do something with it even if it’s not giving us as bigger use as we would like. Richard H. Repetto – Sandler O'Neill & Partners LP: Okay. Maybe come back to a question that I started with. Can you just give the change in the capital amount at the market make quarter-to-quarter? I know it’s inclined for the dimmer [ph] on the 10%, but it went – you said, once the 49% of the total capital, was it prior?

Rich, we do not have this number at our fingers. I’m sorry. Richard H. Repetto – Sandler O'Neill & Partners LP: Okay, okay. And…

If you call in I’ll give it to you, right.

We can give it to some person.

We could really [indiscernible] Richard H. Repetto – Sandler O'Neill & Partners LP: What? We did not…

We pay a dividend every quarter and you know how much it is. It’s this $0.01 a share and we disclosed that pre-tax income was about $6 million in marketing. Richard H. Repetto – Sandler O'Neill & Partners LP: Okay. And I guess very last thing. Is the loss, the $73 million securities loss, I’m just trying to – how that ran through because the SG&A total line was not much more than $73 million. I guess – I’m trying to see the SG$A was $76.2 million. So was there some currency if you normally run at, whatever 14, 12 to 14 SG&A with the $73 million run through and why SG&A was $76 million?

It’s a mix of other items that go up and down a little bit every quarter. That’s right in the ballpark. Richard H. Repetto – Sandler O'Neill & Partners LP: But are we saying that $76 million – $73 million was the trading loss?

$64 million recognized in the brokerage unit at the time we close the customers out. It’s in that line and coming brokerage. The additional $9 million or $10 million bond taken on the positions that we took, we just spoke earlier, is up in the other income line. Richard H. Repetto – Sandler O'Neill & Partners LP: Understood, okay. Thank you very much. Thomas and Paul, thank you.

Thank you, Rich.

Thank you. Our next question comes from the line of Mac Sykes from Gabelli. Macrae Sykes – Gabelli & Company, Inc.: Good evening, gentlemen. Congratulation on the progress of prime brokerage. My question is, in terms of conversations with larger hedge funds that would say I’m the traditional investment bank brokerage platforms, what is the value proposition that IBG has at this point given those competitors? Is it access to markets, cheap executions, stock loan, other services, just trying to understand your competitive position with the upper segment given the progress?

All these very important, but the most important is that our executions are done. That’s the major proposition. Our executions are better, our charges are lower, our stock loan is competitive with [indiscernible] probably better than anybody else. Our margin rates are equally low if not better. We are not among the 16 banks that according to the paper have still dangers counterparty credit risk. So, and people often want to have for the one-time broke. Macrae Sykes – Gabelli & Company, Inc.: You had the terrific execution costs for I mean, it’s been, just curious as is it the same sort of a branding issue now with the hedge funds and you’re getting more adoption on that in understanding the value proposition there or what are some of the things that going faster?

We got to keep pushing the name so people sooner or later is not that – it’s not the institutions we have the problems which is the investor in the institutions that still don’t know the name and don’t recognize it as being as colleagues as some of the big banks. Macrae Sykes – Gabelli & Company, Inc.: Then on your margin balances, are there any concentrations, certain products or stocks, we heard from the competitor this morning that they were impacted by having large concentration in Apple earlier last year when their stock sold off they had a kind of material impact on their large balances, I was just curious if you’re seeing any of that or just more pretty diversified in the margin balance?

Well, we did have some concentration in the most popular stocks that ran off. So, when we instituted these modification to our margin policy we have succeeded in cutting that – those concentrated levels. Macrae Sykes – Gabelli & Company, Inc.: Okay. Thank you very much sir.

Thank you.

Thank you. And our next question comes from the line of Niamh Alexander from KBW. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Hi, thanks for taking my questions. If I could – start with the brokerage and when we met I think here in the summer and you talked about the next stage of your expansion in addition to kind of from a customer perspective because fairly you are doing a lot on the institutional side, you were thinking about maybe different regional perspective and go in kind of fully 24/7 maybe to the Middle Eastern markets. Can you expand on may be the progress or the – have you made a decision there or is it something that we should be looking forward as a whole new regional expansion via the institutional brokerage and build markets?

Our sales in the Middle East has begun – we are investigating, but still at the investigation phase of joining some of the Middle Eastern exchanges not as easy as the other areas are, but we have made a decision that we are – and we’ll be willing to be open on Sunday – trading, we showed our primary barrier to going into to the Middle East exchanges. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: So that’s something that maybe we should expect some more gradual expansion now that you’ve kind of made the decision to do the 24/7, is there something that we should expect to roll out in the second quarter or is something more gradual through the year?

[indiscernible] negotiations at the moment, so I don’t really want to say anything about that.. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay, fair enough Thomas and thank you for that. And I guess the other thing is, did you get the comments about not wanting to go below $5 billion in capital and, is there a built-in to that unless the broker that continues to grow as it has which isn’t quite strong I mean, is there a chance that you saw the dividend in the market maker because you are not earning it for a awhile so, why the $5 billion number one, why that much for the Group and then if you help me think about potential risk to the dividends?

If the dividend, there is no risk to the dividend. You mean -- I can’t imagine a situation in which we would not earn the dividend. But if that were to happen then we would go under $5 billion because there is no risk to the dividend. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay then you would in that scenario, but it’s just like – it’s bulk for some reason has some unusual quarter or something like that and it wasn’t offsetting the decline in the market maker and okay. So why the $5 billion why that level?

Why $5 billion? Nice round number. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Big round number.

It’s all people’s perception. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: I see. Okay. It’s not rating agency or anything like that. You got ton of excess capital.

That’s right. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay, fair enough. And then just lastly, if I can come back to the market maker and you’ve been persistently pulling back the profitability, it seems that kind of leveled out, if we look at it just per option traded, but is there anything that you are saying kind of you are pulling back from marginal products, but we are seeing it more in terms of bigger volume pull back closer to the market and sequentially. So, is there any kind of step function change we should be looking at or is the kind of the next phase of withdrawal or pull back maybe a particular regional market or is the kind of just more of kind of a grind of incremental marginal products that we should be looking toward?

We are continuously pre-examining almost on a daily basis everything we do a market making and we keep adjusting of the edge. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Now if volatility picks up and in fact the actual volatility improved after several years of decline, it’s something that you could kind of get back into those colors relatively quickly if you wanted.

We could yes. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay, all right, fair enough. I will get back in line. Thanks.

Thank you. And our next question comes from the line of Fang Li from Baleen Capital.

Hey guys. Thanks for taking my question.

[indiscernible]

Yes, I have two questions. My first question is on the brokerage even if you add back the one-time, the $64 million one-time loss from the Singapore customer, it looks like your margins have come down to kind of 53% pretax, whereas in the first couple of quarters of the year you have $56 million, $58 million, $56 million. Could you talk a little bit about what drove the margin decline there?

I’m sorry I missed the question. What was the question, Paul?

It is profit margin declined over the quarters in brokerage.

Yes.

That even after adjusting for the Singapore loss.

Right.

Those would be 53% versus say 56% or later in the year.

That’s say because people are pulling into lower tier commissioning categories.

Right, per willing and happy to do more business with more overall profit at lower margins? Fang Li – Baleen Capital: Okay, got it.

And every now and then we open to negotiation.

Okay, fair. That’s helpful. Thanks. The second I had the $10 fee that you used to charge are no longer are charging, how much revenue did that account for – or does that account for in your historic financials.

I do not know the answer. I do know that more than 50% – or more than 70% customers have less than $100,000. So if not we will continue to be hit by that.

I see, I see, got you. Okay, thanks for the answer. I appreciate it.

Thank you. And our next question is a follow-up from the line of Macrae Sykes of Gabelli. Macrae Sykes – Gabelli & Company, Inc.: Oh just one quick following question, share estimates at the end of the year and then the holding validity percentage ownership.

I think what is disclosed is the weighted average shares in the quarter and it’s in the earnings release. Macrae Sykes – Gabelli & Company, Inc.: Okay, all right thank you, J. Thanks.

It’s okay.

I’ve got to leave.

One more, one more follow-up.

One more, one more question.

All right, our final question is a follow-up from the line of Niamh Alexander from BW. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Hi, thank a lot. Those are the same questions I was just trying to get a sense of the current share count at the end of period share counts because do you have that shell out with the 4.7 and you know, it’s bumped up a little bit in third quarter, or is there anything you can share little bit? Thank you.

Now that’s exciting.

Sorry guys, I didn’t know that.

Thank you and that concludes our question-and-answer session for today. Do you have any concluding remarks?

No, thanks everyone for participating today. And just a reminder this call will be available on replay on our website and we’ll be posting a clean version of our transcript on the website tomorrow. Thanks again for your time.

Ladies and gentlemen, thank you for your participation in today’s conference. This does conclude the program and you may now disconnect. Everyone have a good day.