Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Interactive Brokers Could Benefit From Michael Lewis' Flash Boys

The world of high frequency trading ("HFT") was recently brought to light again by Michael Lewis' book, Flash Boys. While I won't opine on the practice of HFT, instead I want to focus on a business that could potentially benefit from additional regulatory scrutiny.

The business in question is Interactive Brokers (NASDAQ:IBKR), which I covered here, here and here [now exclusive to Seeking Alpha PRO subscribers].

Interactive Brokers is made of an electronic brokerage ("the brokerage") and market making ("the market maker") business.

IBKR is majority owned by Founder and CEO Thomas Peterffy, with the public float representing 13.6% of the underlying company's equity. A diagram of the arrangement is seen below:

Investment Thesis - Two...

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