Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q2 2022 Earnings Conference Call July 19, 2022 4:30 PM ET
Company Participants
Nancy Stuebe - Director of Investor Relations
Paul Brody - Chief Financial Officer
Thomas Peterffy - Chairman
Conference Call Participants
Richard Repetto - Piper Sandler & Co.
Kyle Voigt - Keefe, Bruyette & Woods, Inc.
Craig Siegenthaler - Bank of America Merrill Lynch
Ryan Bailey - Goldman Sachs Group, Inc.
Operator
Thank you for standing by, and welcome to the Interactive Brokers Group Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded.
I would now like to introduce your host for today's program, Nancy Stuebe, Director of Investor Relations. Please go ahead.
Nancy Stuebe
Thank you. Good afternoon, and thank you for joining us for our second quarter 2022 earnings conference call. Once again, Thomas is on the call, but has asked me to present his comments on the business. Also joining us today are Milan Galik, our CEO and Paul Brody, our CFO. After prepared remarks, we will have a Q&A.
As a reminder, today's call may include forward-looking statements, which represent the Company's belief regarding future events, which by their nature, are not certain and are outside of the Company's control.
Our actual results and financial condition may differ possibly materially from what is indicated in these forward-looking statements. We ask that you refer to disclaimers in our press release. You should also review a description of risk factors contained in our financial reports filed with the SEC.
I will start today's call with the bad news. In the first half of 2022, circumstances did not evolve in our favor. First, starting at the end of last year, activity diminished in Asia because of China's crackdown on large privately owned companies, and many of our clients from that region suffered outsized losses. Then late in the first quarter, the impact of the war in Ukraine began to be felt on the European economy, chilling the mood of our customers in that region. Finally, early in the second quarter, the delayed response by the Fed to inflationary pressures created fears of a recession in the U.S., sending prices into bear market territory.
Deficit spending in the U.S. has limited the government's ability to respond to rising inflation with increasingly higher interest rates. As for each 1% hike, interest on U.S. debt increases by $300 billion as it gets refinanced. So inflation is likely to stay with us. The same difficulty in raising rates in the face of higher inflation and the same causes are also occurring in Europe.