IB Communiqué - September 11, 2009

Interactive Brokers - IB Communique
 
Quarterly enhancements to our trading platform along with expanded product offerings result in more unique advantages for IB customers. We've highlighted several of our recent developments below, and invite you to visit us at interactivebrokers.com to learn more.
  
iTWS for the iPhone
iTWS for the iPhoneTM
We are pleased to announce the beta release of our iTWS trading app for the iPhone. Trade your IB account directly from your iPhone. iTWS lets you enter and manage orders, view executions and real-time market data and monitor your account balance directly from your iPhone. iTWS supports trading stocks, options and futures worldwide.We are also planning a new mobile trading application for our customers who use the BlackBerry®.

For more details, visit the iTWS software page at interactivebrokers.com
IB Execution Quality for US Stocks and Options Continues to Top Industry
Based on independent measurements, the Transaction Auditing Group, Inc. (TAG), a third-party provider of transaction analysis, has determined that during the first half of 2009, Interactive Brokers' US stock executions (for all market orders of 100 shares or more up to 10,000 shares) showed price improvement of 53 cents per 100 shares better than the rest of the industry1, and US option executions (for all market orders with order size of 1-50 contracts during the first half of 2009) showed price improvement of 22 cents per contract better.

For complete details, please click to see the Smart Routing Overview.
Net Dollar Price Improvement2
TAG Statistics
Lower Commissions
We have recently lowered our commissions for products trading on SWB, FWB and Xetra/Chi-X, and for the Spanish Mini IBEX futures and Mini IBEX options (bundled) on MEFF. Watch for more rate reductions coming soon.

For a comprehensive listings of all commissions, see the Commissions page.
PortfolioAnalyst
PortfolioAnalyst is an online tool that allows investors to evaluate the performance of their portfolio and save their analyses as reusable templates. We have recently included the beta release of the Cumulative Performance Table, which allows investors to analyze the performance of their portfolio over a user-defined cumulative time period.

PortfolioAnalyst is available on the Report Management menu in Account Management. We encourage our customers to try out this beta version and send us your feedback at portfolioanalyst@interactivebrokers.com
New Products and Exchanges 
We are pleased to announce TWS integration of the following:
  • State Street Global Advisors mutual fund family.
  • Support for Money Market Funds on all of our existing fund families, including Allianz, American Century, Dreyfus, Fidelity, Janus, SSgA, T Rowe Price and Vanguard (minimum size $200,000).
  • Stock trading on the Vienna Stock Exchange.
  • MSCI Singapore Free Index on SGX.
  • Alpha ATS for trading Canadian stocks.
  • Coming late September: Support for trading Spanish stock options on MEFF.
To help keep you up to date on all of our new product and exchange offerings, we have recently added the New Products page to the Trading menu. This list is updated daily and includes all new products sorted by the date they were added.
New Interactive Tours
We have recently added two new Flash-based tutorials to our suite of interactive tours:
  • Introduction to Technical Analysis - Explores the important role of the chart analyst and looks at how technical and fundamental analyses differ. Participants will learn how to identify areas of support and resistance on a chart, the role of different time frames and how to interpret basic trend formation.
  • TWS for Advisors - Our Advisor accounts allow you to easily allocate shares to multiple clients, and track activity for each account and for the master account. This tour shows you how to set up allocation methods, create orders and track activity for Advisor accounts.
Introducing the IB Student Trading Lab
The IB Student Trading Lab enables professors and teachers to use our simulated trading platform, the TWS PaperTrader, as a teaching tool in their classrooms. The program highlights the growing need for students in the fields of financial engineering/computational finance/financial mathematics, and is open to all college and high school professors and their students within and outside the US. The Trading Lab functions as an educational partnership between an instructor and IB. The sponsoring instructor applies for accounts on behalf of his/her students, and supervises the trading projects within the guidelines of the lab.

We believe that through this partnership, students will gain an in-depth understanding of developing and applying trading strategies, improve their risk-management skills, and obtain hands-on experience in trading and hedging.

Visit the IB Student Trading Lab page for more details.
IB Student Trading Lab
Statement Enhancements
Recent enhancements to our statements include:
  • Email and FTP delivery of user-created Activity Statement templates.
  • The ability to specify the language in which you want your statement to appear. Choose from English, Chinese (Simplified or Traditional), French, German, Italian, Japanese or Spanish.
  • Statement of Funds section in ledger format that includes all cash-related transactions for the given statement time period.
  • Detailed security Information section sorted by asset class.
For a complete list of enhancements and changes, see the Statements and Reports Release Notes.
Improved TWS Charts
Over the past several months we have significantly enhanced the TWS charting feature by making the charts sharper and easier to read, adding a slider bar to the bottom of the charts to allow easy zoom in and zoom out, allowing user-defined time periods and providing more configuration flexibility for users. In addition we have also added more historical data, which allows our bar charts to go back as far as 1990, and have implemented the ability to set alerts from within a chart.

For details on enhancements to our charts and other TWS features, see the TWS Release Notes page.
TraderWorkstation
Technology Enhancements
Over the past months we have continued to enhance the TWS trading platform and our trading technology. Major changes include:
  • Significant enhancements to the ScaleTrader including a new Scale summary page which provides real-time status for each parent order, including filled and total quantity, filled, remaining, and total value, and the percent filled for each scale.
  • Advisors can now allocate bonds and mutual fund trades filled through our trading tools.
  • Advisors can now allocated trades filled via the Accumulate/Distribute algo.
  • Simplified option chain headers in the OptionTrader, and the ability to load single-side chains.
  • Support for additional non-US Smart routed non-guaranteed combos, including CAD, CHF, HKD, AUD and JPY products.
  • A completed orders filter that allows you to specify the types of completed orders you want to display on a trading page, including Filled, Cancelled (by user and/or system), Expired, or all of these.
  • Addition of a Moving Average field for the Quote panel.
  • The ability to use IBAlgos for trading Canadian stock.
  • The ability to route combination orders as SMART, which allows users to get the best execution for their large, multi-leg orders. In addition, we now support simulated stop orders (including trailing stop, stop limit etc) for combination orders.

For a complete list of all new TWS features, see the TWS Release Notes. TWS Release Notes .
New Third-Party Commercial Tool Providers
We have recently added the following third-party integrated software solutions to our Commercial Tools program:
  • Tradesignal Standard Edition
  • Pyramid decision-making analysis software
  • ATrader
  • MetaStock Analysis Platform
  • Reuters QuoteCenter
  • Portfolio Maestro
  • The Wealth Portal
Find out more about our Commercial Tools and Technology Partner Programs on the IB web site.
Traders Edge
As our customers know, IB's TraderWorkstation™ is a comprehensive and versatile platform that lets you trade multiple products on numerous exchanges around the world from a single screen. The Traders' Edge focuses on one of our existing TWS tools that we think is worth a second look. This quarter we reintroduce you to the OptionTrader.

OptionTrader
The self-contained OptionTrader displays customizable streaming option chain data with access to pricing tools, risk analytics and our daily options commentary, and provides quick-click order entry with complete order management.

OptionTrader

This TWS component functions independently, yet shares common TWS elements allowing you to view market data and monitor the change in price of the underlying, submit and manage orders, monitor activity logs, and view execution reports and your positions from this stand alone window.

The OptionTrader allows you to:
  • Monitor price variations of the underlying in the Quote panel.
  • View all available chains or filter for specific contracts. Option chains are organized by strike and expiry, with calls on the left and puts on the right.
  • Open the Statistics panel to view open interest, volatility and volume changes, and other option-related statistics.
  • Trade in terms of volatility rather than option premium prices.
  • Get an automatic calculation on the required stock position to hedge an option's delta risk for delta neutral trades.
  • Create multiple pages for different underlying securities.
  • Configure the layout by adding or removing columns for calculated model prices, implied volatilities, open interest and the Greeks.
For more information on using the OptionTrader, see the TWS Users' Guide.
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Interactive Brokers - 2 Pickwick Plaza - Greenwich CT 06830

Interactive Brokers LLC - member NYSE, FINRA, SIPC

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Options involve risk and are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy call (203) 618-5800 or click here. Supporting documentation for any claims and statistical information will be provided upon request.

1Source: The Transaction Auditing Group (TAG). Industry as a whole for the referenced periods according to TAG.

About TAG
Since 1996, TAG has been the leader in independent Best Execution analysis throughout the US and now, Europe. Its products offer comprehensive assessment of execution quality for equities and options, utilizing massive real time market data and archival capabilities with proprietary measurement tools to create standardized and custom reports. TAG provides business intelligence to gain market share, differentiate from competitors, and validate performance.

For more information visit www.tagaudit.com. The Transaction Auditing Group, Inc. (TAG), an independent company, is not affiliated with Interactive Brokers. The statistics provided by TAG are from sources believed to be reliable, but TAG makes no representation as to the completeness or fitness for any particular purpose. Information produced by TAG is copyrighted and any unauthorized use, duplication, redistribution or disclosure is prohibited.

2Net $ Improvement per Share Definition

((# of Price Improved Shares * Price Improvement Amount) - (# of Price Disimproved Shares*Price Disimprovement Amount))
Total Number of Executed Shares

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