IB Communiqué - January 26, 2007

2006 Year-End Annual Statement and Tax Information

It is that time of year again, and we have made major upgrades to our statement and tax reporting systems that should greatly benefit all of you. Your year-end Annual 2006 statement will be available in Account Management by the end of day February 5, 2007. This re-designed statement features a new format which is expandable and contractible and includes click-down detail. The year-end statement will display, by product, the beginning, change, and ending balance detail, as well as profit and loss performance under First In, First Out (FIFO) and Mark-to-Market (MTM) calculation methodologies. For those customers trading in multiple currencies, we will also be calculating FX translation gains and losses from holding positions and cash in non-base currencies. In-depth information and explanations for our new statements will be made available on our Statement Details page when the annual statements are posted.

Over the coming months, we plan to utilize our new statement format for both daily and monthly statements, as well as to let you pick a range of dates to see your activity. In addition we will be providing all customers with a new daily Margin Report which will show individual margin requirements for each underlying or combination position.

A US IRS Form 1099 will be made available in Account Management by the end of day January 31, 2007 for all US residents or citizens. This new 1099 will be available in an IRS-approved PDF format for easier reading. In addition, supplemental Gain & Loss and Dividend reports will be provided that can be used as Schedule B and D reports when filing your US tax return.

On February 28, 2007 we will be providing Canadian residents with revamped Forms T5 and T5008, and on March 15th we will be providing all non-US residents and citizens with an IRS Form 1042S.

It is important to note that Interactive Brokers may not be aware of all the details surrounding your individual trading activity and therefore does not warrant the accuracy of its profit and loss calculations. Profit and loss calculations are provided for informational purposes and it is the responsibility of each of our customers to check the details and assumptions behind our calculations. We recommend that all our customers consult a tax expert for further guidance.

For details on our Year-end Annual Statement and Tax Reports please visit our Important Year-end Information web page.

Trading to Be Available for Hong Kong Stocks and Warrants

By mid-February we will be introducing trading in Hong Kong Stocks and Warrants on the Stock Exchange of Hong Kong. We have also recently introduced Forex cash index options on the PHLX, and cocoa, coffee, cotton, orange juice and sugar soft commodity future contracts on the NYMEX. Information for Hong Kong Stocks and Warrants will be posted to our Exchange Listings web page when available, and details for PHLX Forex cash index options and NYMEX soft commodities is now available on our Exchange Listings web page.

Lower Commissions for VWAP and Forex Trades

Guaranteed Volume Weighted Average Price (VWAP) commissions have been lowered to $.01 per share. A VWAP trade allows you to specify a time period for US stock pricing with Interactive Brokers guaranteeing you the Volume Weighted Average Price of the market as reported by Bloomberg for this time period. For more information on VWAPs, click here.

We also now provide lower volume tiered pricing for cash forex trades that starts at .10 of a basis point for over $200 million in daily trade volume and works its way up to the current rate of .20 of a basis point. See our Forex Commissions page for more details.

Friends and Family Accounts

For those individual customers who would like to trade multiple accounts (individual, IRA, joint, wife, child, relative or family friend account) from a single interface, we encourage you to consider a Friends and Family account. This account allows a single individual to log into TWS or Account Management and have access to all accounts. We also make transfers easy by providing a utility that will transfer all positions and cash balances from your old account to your new account over the weekend. For more information on opening a Friends and Family account, click here.

Trader Workstation Enhancements

We have been busy at work on the following Trader Workstation enhancements:

For more information on these and all TWS changes, see our Release Notes.

TWS API (Application Program Interface)

We are constantly at work enhancing our TWS API technology and its supporting documentation. The APIs let you trade the same products you can trade using TWS, including stocks, options, futures, forex, and bonds, and support multiple programming languages, including DDE for Excel, Java, Visual Basic 6.0 and .NET for ActiveX, and C++.

The latest beta release 9.1 of the TWS API includes full support for Exchange for Physical (EFP) trading on all of our API platforms.

For more information on TWS API-supported features, see the API Release Notes, the API Reference Guide and the Getting Started with the DDE for Excel API Guide.

New Market Data Fees

For 2007 a number of exchanges have modified their market data fees as follows:

Subscription Previous New
US Options Exchange Professional USD 32.35 USD 20
Euronext Cash Market Level I EUR 18 EUR 19
Euronext Cash Market Level II EUR 58 EUR 61
Euronext.Liffe Equity Derivatives and Indices - Level I EUR 32 EUR 30
Euronext.Liffe Equity Derivatives and Indices - Level II EUR 37 EUR 36
IDEM Level II Non-Professional EUR 10 EUR 16.50
IDEM Level II Professional EUR 35 EUR 40

If you wish to view or modify your market data subscriptions, please log into the market data subscription page via Account Management/Market Data Subscriptions.