Good day, everyone, and welcome to the Interactive Brokers’ First Quarter 2012 Earnings Results Conference Call. This call is being recorded. At this time for opening remarks and introductions, I’d like to turn the call over to Ms. Deborah Liston, Director of Investor Relations. Please go ahead.

Thanks operator. Welcome everyone and thanks for joining us today. Just after the close of regular trading, we released our first quarter financial results. We’ll begin the call today with some prepared remarks on our performance that compliments the material included in the press release and I’ll keep the remaining time to Q&A. Our speakers are Thomas Peterffy, our Chairman and CEO; and Paul Brody, Group CFO. I just want to remind everybody, the discussion might include forward-looking statements. These statements represent the company’s beliefs regarding future events that by their nature are not certain and outside of the company’s control. The company’s actual results and financial conditions may differ possibly materially from what’s indicated in these statements. For a discussion of some of the risks and factors that can affect our future results, please see a description of the risk factors in our filings made with the SEC and I’d also direct you to read the forward-looking disclaimers in our quarterly earnings release. With that, I’ll turn the call over to Thomas Peterffy.

2012 is off to a slow start compared to the results we posted last year. Exchange traded stock and options volumes continued to decrease well into the first quarter and stabilized only towards the end of the period. This affected our customers’ trading activities along with market making which also became subject to other pressures that I will elaborate on during the segment discussion. Despite these cyclical factors, our brokerage business continues to dominate the competition in the areas of customer account growth and trading technology. As a testament to the latter, Interactive Brokers has been rated number one in several categories by the Wall Street Letter and Barron’s, for Best Options Broker, Best Use of Technology in the Industry, Best for International Investors, Best for Portfolio Analysis and Reports and Best for Trading Experience and Technology. Most importantly we remain recognized as the Least Expensive Broker. I am still waiting for a reviewer who would rank brokers by what I think should be the most important criteria, which is execution quality. Traders and investors often pay more in inferior execution prices than in commissions but this remains a hidden charge that is often overlooked even by some of the most sophisticated market participants. Our distinction as being the broker of choice for financial professionals is driving strong growth in this business, with the number of customer accounts approaching 200 thousand and the equity they hold just shy of $30 billion. We also maintain our position as the largest eBroker by number of trades, thanks to our highly active base of sophisticated traders and investors. Before I review the performance of our business segments, I’ll briefly mention the results of our currency hedging strategy. As you know, we maintain our equity in a self-defined basket of 16 currencies that we…

Thank you, Thomas. Welcome everyone to the call. And as usual, I’ll review first the summary results and then get segment highlights before we take questions. As we discussed in prior quarterly calls, our financial statements include the new GAAP accounting presentation known as Comprehensive Income. Comprehensive Income reports all currency translation gains and losses including those that reflect changes in the US dollar value of the company’s non-U.S. subsidiaries, which is known as Other Comprehensive Income or OCI. These are reported in the statement of Comprehensive Income, which replaces the traditional income statements. Previously, OCI was reported only in the balance sheet. Beginning with the first quarter of 2012, this presentation is now required, although we adopted early beginning our reporting in the second quarter of 2011. You can expect to see a similar presentation in the financial statements of all U.S. companies with foreign subsidiaries. You will also notice that we have changed the order of presenting these income measures in our earnings release placing Comprehensive Income first. We feel that is appropriate as it represents the full measure of the change in our capital. In light of the weakening of the US dollar against the number of other currencies heading OCI to net income increases our reported earnings per share on $0.06 for the quarter. Overall operating metrics of the latest quarter were mixed. Average overall daily trading volume was 926,000 trades per day up 1% for the first quarter of 2011. Electronic brokerage metrics showed healthy increases in the number of customer accounts and customer equity. Total and clear customer DARTs were both up from the year-ago quarter though down sequentially. Orders from clear customers who clear and carry their positions and cash with us and contribute more revenue continues to account for over 90% of…

(Operator Instructions) Our first question comes from the line of Rich Repetto from Sandler O'Neill, your question please. Richard Repetto – Sandler O'Neill & Partners L.P.: Yeah, good evening Thomas and Paul, I guess, the question is on the brokers continuous to outperform. On the margin loan balances, just trying to see what the average gross yield? A lot of the competitors have seen drops in the first quarter I am just trying to see whether I know yours is well below theirs, but whether yours has been steady given the spread you’re trying to maintain.

Ours is smaller you are right and it has been relatively steady because effectively credit interest rates has been zero for a long time.

The question as to what it, is I think it’s something like 1.3% right?

That is probably a little less than that.

Less than that. Richard Repetto – Sandler O'Neill & Partners L.P.: Okay. And then on the market-making Thomas, we’ve talked a lot about the competition from HFT prior, it seems like the exchange is doing a little bit, I don’t know whether they are doing a lot or not, but we are putting some rules to limit the quotes. I am just trying to see, do you see that have any real impact on constraining or having any impact on the HFT or exchanges if not done, have they not done enough I guess.

I think that HFT competition has been fairly stable. And it’s been the same as last quarter or even the quarter before. So it’s stable and it’s intense. Richard Repetto – Sandler O'Neill & Partners L.P.: And the impact that this limiting the quotes, is that meaningful do you think or is it just, as I said, it’s enough we might have some impact on the HFT?

I don’t think it has had much impact at all. Richard Repetto – Sandler O'Neill & Partners L.P.: Okay. And then the very last question is just on your capital, Thomas and Paul. Could you give out the split between, I know it’s around I think $2.8 billion at the market maker, but could you give sort of how you segment out your capital between the broker and the market-maker?

You’re close. Maybe the market-making is a little bit higher, but the brokerage has about...

It’s 1.7 and change and 2.9 and change.

Yeah, yeah.. Richard Repetto – Sandler O'Neill & Partners L.P.: Got it. Okay, thank you, that’s helpful. That’s all I have.

Thank you. our next question comes from the line of Niamh Alexander from KBW. Your question, please. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Hi, thanks for taking my questions. Thomas, I saw something on the tape here from an interview, being quoted that you were talking about maybe retiring in the next couple of years. Can you expand a little bit on that? I don’t know what interview and it was quoting there, but this is the first time we’ve heard you talk about retiring in the next few years, can you expand a little bit more in this context with this audience?

It didn’t say in the next two years, they asked me if I ever think about retiring and I said sure, I think about my future all the time, and then they said so, how do you see this? And I said it would be a gradual process and as the years go by, I intend to become less and less involved, and hand more and more of my duties over to the capable hands around me. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: But, we shouldn't expect any change in the next two years.

Okay. Look I mean, as I said, the changes are gradual and that been going down for a year or two already. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay. I guess we are not familiar with the succession planning within the organization or who it is, that you're kind of looking to, to follow you on. So, it will be helpful for us to kind of understand a little bit more about that process. And then, I guess during the interview also did ask you about your, indicate your interest in continuing to own the company if you are no longer running it, but I understand that you're still very much interested in remaining a big shareholder?

That's exactly what I said. The interview is written correctly. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay.

It says what I said to him. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Fair enough, Thomas. All right and can I just take a few things on the special grant to the employees you said it was a special grant that mean it’s going to be your first quarter every year or is it a one-off? And then the second...

No. It's a one-off. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: It's a one-off.

Yeah. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: And then Paul is this going to be accrued or are we done in the first quarter?

It goes in as of normal grant, which means that the accrued over a long period of time because it's subject to the same six-year investing schedule at all of our other grants are.

It’s front loaded.

It's the recognition method is more front loaded than it is used to be. But, it's still fully recognized over six years. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay. So, should we expect to kind of see the comp level to be more elevated than it has been, because this has been steadily increasing or almost flat. So, what's the good run rate you think about going forward?

Well, the answer to that is where are you in the cycle of grants? And what grants do we put out every year. And so, hypothetically if we were to put out the same number of grants every year and we had started this in 2007, we would be five years through, a six year grant cycle, which means that it would be fairly stable going forward, if we were to continue to grant the same amount of number of shares every year. Now we tend to grant more shares as our staff, maybe grows and so forth, and to some extent they’re more front-loaded in terms of expense recognition. So you’ll see some increase, but over time it should be relatively stable.

Because, of the one time grants.

Right.

Yes, but not because…

So I don’t think that you should expect the same level in the coming quarters, it is going to be less.

No it will be the – it’s accrued over this first year ratably, so the effect of the special grant will take place, it will have the same effect on each quarter of this year. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay.

That’s only a piece of the total comp expense, just from the special grant.

That is correct for the special grant, but given we had to revamp.

Yes, the effect of the special grant is about $3 million a quarter for this year. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay, fair enough, thank you very much. And then, and just lastly if I could real quick on – the brokerage fee, you did mention sorry, what was driving that lower. There weren’t any explicit changes, it was more contract sizes or something, was it?

We didn’t make changes? No. Niamh Alexander – Keefe, Bruyette & Woods, Inc.: Okay, all right thank you.

Thank you. Our next question comes from the line of Matt Heinz from Stifel, Nicolaus. Your question, please? Matthew Heinz – Stifel, Nicolaus & Co.: Hi, good afternoon.

Hello. Matthew Heinz – Stifel, Nicolaus & Co.: I just had a question about your comments, about the market share in options, you said that given the high concentration in a couple of tickers, Apple and SPY that you don’t make markets in, that was one of the drivers behind your share losses this quarter?

I didn’t say that we do not make markets in it, but I said that if a large percentage of the overall volume gets bunched up in one underlying security. We usually have difficulty in maintaining our market share at the same level as we have in other products. Matthew Heinz – Stifel, Nicolaus & Co.: Okay.

In other words, you just visualize this, that instead of 10 market makers in a product, there are suddenly 100 market makers in the product right, that’s what happens; and therefore, we get diluted. Matthew Heinz – Stifel, Nicolaus & Co.: I see. Okay, thanks. And then sorry, just one more time on the revenue capture in brokerage, you said you didn’t make any changes in the pricing there, but was it more just mix that drove the rate down?

Well, it was – we had a fewer number of trades and the trades were smaller in size. And I think that we also had some changes in the futures business where we picked up some larger traders from MF, who quickly reached their lower tiers in commission, because we have a tiered commission rate. And so it goes down, it starts at something like $1.40, the contract that goes down to as low as $0.25. Matthew Heinz – Stifel, Nicolaus & Co.: Okay, so just like your cleared futures volume is up about 10% or 11% year-over-year, was that mainly just due to that, I mean, I guess industry volume was down closer to 10%. So there’s either very significant share gain in there or some new accounts that are already…

I think we’ve got some of the MF Global customers. Matthew Heinz – Stifel, Nicolaus & Co.: Okay, so do you think that had an impact on the – the revenue capture should be similar going forward?

Well, if we’ll not increase the same way as we’ve had at this time, but you must be aware that in futures brokerage, while we charge say $1.70 for a high volume trader, $1.45 of that goes to the exchange in fees, as we only get to keep the $0.25. But our brokerage charge reflects what we send to the exchange. Matthew Heinz – Stifel, Nicolaus & Co.: Okay, thanks for the information.

Thank you. (Operator Instructions) Our next question comes from the line of Ed Ditmire from Macquarie. Your question please? Ed Ditmire – Macquarie Research Equities: All right, good afternoon. From November through February, you guys have relatively lower net account and adds and what you guys are used to saying and of course in January you talked about the pressures on the account lists that were caused by the MF Global fiasco and how customers were worried about the safety of their funds. And then in March, it looks like you guys had a very healthy net account add number. Has there been a change? Are we getting past that period and has anything really changed that all of a sudden, the net account number became much more healthy?

We find that when we change, do small changes to our marketing program that is usually a positive response, whatever we do. And that it gets tired and it slows down and then we have to come up with something new. Ed Ditmire – Macquarie Research Equities: Maybe as a follow on, like I said at the last conference call you talked about having to address client concerns over the safety of their funds, has that pressure alleviated?

That’s alleviated, but if something disastrous happens to somebody in the industry again then we will be facing the same issues. Ed Ditmire – Macquarie Research Equities: Okay, thank you.

Thank you. This does conclude the question-and-answer session of today’s program. I’d like to turn the program back to management for any further remarks.

Thanks, operator. We just like to thank everyone for participating today. And as a reminder, this call will be available for replay on our website. Thanks again and have good evening.

Thank you, ladies and gentlemen for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.