The rule of buoyancy (see Archimedes Principle) is that the buoyant force on an object is equal to the weight of the fluid it displaces.
When an ice cube with weight $W_{ice}$ is floating in water, the buoyant force (which again, is equal to the weight of the displaced water) must be equal to $W_\text{ice}$. Therefore, the amount of water being displaced has the same weight as the ice cube. If $\rho_\text{water}$ is the density of water and $V_\text{disp}$ is the displaced volume, then $\rho_\text{water}gV_\text{disp} = W_\text{ice}$, and so $V_\text{disp} = \frac{W_\text{ice}}{\rho_\text{water}g}$, where $g=9.8 \frac{\text{m}}{\text{s}^2}$ is the acceleration due to gravity.
When the cube melts, its volume decreases so its density becomes that of water. However, the volume of glass-water being displaced by the cube-water is the same as before, because the cube-water weighs the same as the original ice cube did (no weight is lost by melting), so $V_\text{disp} = \frac{W_\text{cube-water}}{\rho_\text{water}g}=\frac{W_\text{ice}}{\rho_\text{water}g}$.
If the volume of water being displaced is the same, then the water level stays the same.