滬港通

滬港通是一項互聯互通機制,香港和國際投資者可以通過香港聯交所(以下簡稱“SEHK”)及其清算所交易並清算上海證券交易所(以下簡稱“SSE”)的上市股票。盈透作為SEHK會員,您可通過盈透快速穩定地訪問SSE並交易其上市產品。

參與者
當前所有具備香港股票交易許可的盈透客戶均可通過滬港通交易SSE的證券。
 
通過滬港通交易的產品類型
SSE擁有不同類型的掛牌證券,但滬港通初始階段只能交易A股。這包括所有上證180指數與上證380指數的成分股,以及雖不在相關指數成分股內但有股票同時在SSE以及SEHK上市的H股。
您可以通過下方鏈接查看產品列表及股票代碼:
 
在IB交易SSE證券的佣金
與交易港股的佣金相同,IB只向客戶收取交易額的0.08%作為佣金費用,每筆定單的最低佣金為15元人民幣。
 
客戶需要另外支付交易所費用,清算費用以及印花稅:
固定式和階梯式佣金結構對比:
 
清算和結算週期
SSE交易的結算週期為T+1。股票可在當日進行結算。
 
交易時段(香港時間)

交易時段 SSE交易時間
開盤集合競價 09:15 – 09:25
連續競價(上午) 09:30 – 11:30
連續競價(下午) 13:00 – 15:00

09:20 – 09:25:SSE不受理取消定單的請求

 

限價
SSE證券的限價範圍為在前一日收盤價的基礎上上下波動10%(特殊的股票可上下波動5%)。所有定單必須在限價範圍之內(包括限價)。價格上限和下限當日保持不變。
請注意,SEHK擬於滬港通初始階段將動態價格檢查定為3%(該數值可能偶爾會被調整) 
 
其他應該注意的交易限制
a)       大陸的A股市場不能進行日內交易。因此,購買SSE證券的香港和海外投資者只能在T+1當天或之後賣出股票。
b)       SSE股票沒有大宗交易機制。
c)        滬港通初始階段,SSE股票不能進行賣空交易。
d)       滬港通初始階段,IB不提供保證金交易。
 
 
如果您對滬港通有更多疑問請聯繫IB客戶服務獲取進一步的信息。
電話 +852-2156-7907 / +86(21)6086 8586
郵件: cnhelp@interactivebrokers.com
 

沪港通

沪港通是一项互联互通机制,香港和国际投资者可以通过香港联交所(以下简称“SEHK”)及其清算所交易并清算上海证券交易所(以下简称“SSE”)的上市股票。盈透作为SEHK会员,您可通过盈透快速稳定地访问SSE并交易其上市产品。 

参与者
当前所有具备香港股票交易许可的盈透客户均可通过沪港通交易SSE的证券。
 
通过沪港通交易的产品类型
SSE拥有不同类型的挂牌证券,但沪港通初始阶段只能交易A股。这包括所有上证180指数与上证380指数的成分股,以及虽不在相关指数成分股内但有股票同时在SSE以及SEHK上市的H股。
您可以通过下方链接查看产品列表及股票代码:
 
在IB交易SSE证券的佣金
与交易港股的佣金相同,IB只向客户收取交易额的0.08%作为佣金费用,每笔定单的最低佣金为15元人民币。
 
客户需要另外支付交易所费用,清算费用以及印花税:
固定式和阶梯式佣金结构对比:
 
清算和结算周期
SSE交易的结算周期为T+1。股票可在当日进行结算。
 
交易时段(香港时间)

交易时间 SSE交易时间
开盘集合竞价 09:15 – 09:25
连续竞价(上午) 09:30 – 11:30
连续竞价(下午) 13:00 – 15:00

09:20 – 09:25:SSE不受理取消定单的请求

限价
SSE证券的限价范围为在前一日收盘价的基础上上下波动10%(特殊的股票可上下波动5%)。所有定单必须在限价范围之内(包括限价)。价格上限和下限当日保持不变。
请注意,SEHK拟于沪港通初始阶段将动态价格检查定为3%(该数值可能偶尔会被调整)
 
其他应该注意的交易限制
a)       大陆的A股市场不能进行日内交易。因此,购买SSE证券的香港和海外投资者只能在T+1当天或之后卖出股票。
b)       SSE股票没有大宗交易机制。
c)        沪港通初始阶段,SSE股票不能进行卖空交易。
d)       沪港通初始阶段,IB不提供保证金交易。
 
如果您对沪港通有更多疑问,请联系IB客户服务获取进一步的信息。
电话: +852-2156-7907 / +86(21)6086 8586
邮件: cnhelp@interactivebrokers.com

Shanghai – Hong Kong Stock Connect

Shanghai – Hong Kong Stock Connect is a mutual market access program through which Hong Kong and international investors can trade shares listed on the Shanghai Stock Exchange (SSE) via the Stock Exchange of Hong Kong (SEHK) and their existing clearing house. As a member of SEHK, IB provides you with direct access to SSE and help you to trade with all listed products on the Shanghai Stock Exchange.

 
Who can participate?
All current IB clients with Hong Kong stock trading permissions will be eligible to trade SSE securities through Shanghai-Hong Kong Stock Connect.
 
What kind of products can I trade through Shanghai-Hong Kong Stock Connect?
Among the different types of SSE-listed securities, only A shares will be included in the initial stage of the Shanghai-Hong Kong Stock Connect implementation. This includes all the constituent stocks of the SSE 180 Index, SSE 380 Index and all the SSE-listed A shares that are not included as constituent stocks of the relevant indices but have corresponding H shares listed on the SEHK.
 
The product list and stock codes can be found under the following link:
 
What is the commission for trading SSE securities at IB?
Same as trading Hong Kong stocks, IB charges only 0.08% of trade value as a commission with a minimum CNH 15 per order.
 
Exchange fees, clearing fees and stamp duty are passed through to customers as follows:
Fixed and tiered commission structure comparison as follows:
 
What is the clearing and settlement cycle?
Cash settlement for SSE trades takes place on T+1. Stocks settlement is within the same day.
 
What are the trading hours for SSE (Hong Kong Time)?

Trading Session
SSE Trading Hours
Opening Call Auction
09:15 – 09:25
Continuous Auction (Morning)
09:30 – 11:30
Continuous Auction (Afternoon)
13:00 – 15:00

09:20 – 09:25: SSE will not accept order cancellation
 
What is the price limit?
For SSE securities, there is a general price limit of +/-10% (+/-5% for stocks under special treatment) based on the previous day closing price. All orders must be at or within the price limit. The upper and lower price limit will remain the same intra-day.
 
Please also note that during the initial phase of the launch, SEHK intends to set the dynamic price checking at 3% (the percentage maybe adjusted periodically)
 
Are there any other trading limitations I should pay attention to?
a)      Day trading is not allowed for the Mainland A shares market. Therefore HK and overseas investors buying SSE securities on day-T can only sell the shares on or after T+1.
b)      For SSE Securities, block trade facility will not be available.
c)       For SSE Securities, shorting is not allowed during the initial phase of the launch.
d)      IB will not be facilitating margin trading during the initial phase of the launch.
 
If you have any questions regarding Shanghai – Hong Kong Stock Connect, please contact IB customer service for further information. 
Tel: +852-2156-7907 / +86(21)6086 8586
Email: cnhelp@interactivebrokers.com

Foreign Acount Tax Compliance Act (FATCA)

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) represents the United States efforts to combat tax evasion and abuse by US persons holding investments outside of the United States.  The Act establishes a new set of tax information reporting and withholding procedures.  While not expressly aimed at non-US persons, the regulations do impose withholding taxes on certain non-US entities that decline to disclose their US investors or account holders.

Under FATCA, US persons must report to the US tax authority, Internal Revenue Service (IRS), their assets held in offshore accounts.  In addition, the regulations seek to require non-US financial institutions to report to the US tax authority certain information about financial accounts of US or US-owned investors and account holders.

 

How does this impact US Brokers, including Interactive Brokers?

As a broker based in the United States, Interactive Brokers is required to report information and make payment of withholding taxes to the IRS, for all of our customers.  FATCA simply creates additional practices and withholdings to the current requirements for all US brokers.

Interactive Brokers will comply with the new rules.  This may require additional disclosures by investors during the account application process, as well as expanded tax reporting.  For all US institutions, FATCA becomes effective January 1, 2013.  Any FATCA tax withholding requirements begin on January 1, 2014.

Additional aspects of the regulations will be phased-in over the next few years, including an expansion of US brokers reporting on US source income to non-US accounts through Form 1042-S.

 

What action is required for US persons?

No additional action is required for US persons holding Interactive Brokers accounts.   US persons, who include US citizens, Green Card holders and other legal residents,  need only to complete Form W-9 during the account application process to certify their tax status. 

 

Does FATCA affect non-US accounts?  

Yes.  FATCA requires foreign financial institutions (FFIs) to furnish certain data directly to the IRS about any of their US taxpayer accounts or foreign entity accounts in which US taxpayers hold a certain level of ownership.  FFI compliance with the new regulations becomes effective July 1, 2013 with the submission of electronic FFI applications to the IRS.  The application forms are scheduled to be available through the IRS in January 2013.

All non-US persons and entities applying for and maintaining Interactive Broker accounts will continue to be  required to fully disclose and indentify the identity of their account's beneficial owner(s).  Through the IRS Form W-8, our account holders certify the beneficial owner's country of tax residence.  If you fail to provide a Form W-8, or do not resubmit a new W-8 when prompted upon the three-year expiration, additional withholding will apply.

Some entities not ordinarily considered to be financial institutions may be categorized under FATCA as an FFI.  Therefore, it is important to review the details outlined by the IRS.

 

Is there a summary of FFI requirements? 

While the regulations and compliance are far more complex than a brief FAQ can describe, the following offers a short summary of actions required by those defined foreign financial institutions.

  • Identify US taxpayers.  If US taxpayers refuse to waive your non-US country's privacy or secrecy rules, then the US taxpayer account must be closed.
  • Report to the IRS on the related US taxpayer activity within defined financial accounts.
  • Withhold 30% US tax on US source income against any US taxpayer or foreign entity failing to disclose information or comply with the FATCA regulations.

 

Additional Information & Resources

The IRS remains the most comprehensive and up-to-date resource about FATCA compliance, implementation, and document filing.  The IRS continues to issue news releases and forms.  Please feel free to visit the IRS FATCA Website for details. 

 

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.

IRA: Retirement Account Resource Center

IMPORTANT NOTE: This article has been customized for use by self-directed Individual Retirement Account (IRA) owners for information purposes only.  Persons are encouraged to consult a qualified tax professional with the investments and elections within the IRA.   IB does not provide tax advice.  For detailed information regarding IRAs, you may consult the IRS Publication 590.

Through Delaware Charter and Trust Company, doing business as Principal Trust Company, Interactive Brokers offers a variety of Individual Retirement Accounts (IRAs).  This resource center provides a central navigation into the resources, procedures and Account Management navigation of the retirement accounts below. 

Important IRA dates to consider are listed below.

Important Notice - Select 2012 Tax Reporting for key information with 2012 transactions and tax reporting in your IRA.

 

Account Management IRA Reference

Account Management IRA Tab

Beneficiary Options

Charitable Distributions

Conversions to a Roth IRA

Direct Rollovers - How & When

Frequently Asked Questions

Recharacterizations from a Roth IRA

Required Minimum Distributions

Rollover Rules & Conditions

Understanding Tax Forms

 

 

Important Dates To Consider   

Please check the calendar often.  Some dates subject to change.

Jan. 31:  RMD Notice - Required Minimum Distribution notices sent to account holders age 70 1/2 by December 31.   

                Tax Form 1099-R - IB posts the tax forms which confirm prior year distributions.

                2012 Charitable Distribution - Last date for eligible distributions to to be recharacterized as made on December 31, 2012.  Also, the final date to transfer December 2012 distributions to a qualified charity as a qualified charitable distribution.

Apr. 15:  Excess Contributions - IRS Deadline to withdraw excess IRA contributions for the prevous tax year.

                IRA Open/Funding - Deadline to establish and fund an IRAs for the previous tax year.

                Roth/Traditional Contribution - Deadline for prior tax year IRA contributions.

                SEP - Deadline for prior tax year employer and employee non-elective contributions.

May 31:  Tax Form 5498 - IB posts the tax forms which confirm prior year contributions.

Sept. 30: IRA Beneficiary - IRS cutoff to identify "designated beneficiary" of previous year deceased IRA owners.

Dec. 27:  RMD- Interactive Brokers cut-off to submit a Required Minimum Distribution as 2012 distribution.

                Distributions - Interactive Brokers cut-off to submit a 2012 IRA distribution.

 

 

 IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.

Aktivierung einer Online Sicherheitscodekarte

概観: 

Die Online Sicherheitscodekarte dient als temporäre Lösung für Kunden, die keinen Zugriff auf Ihr permanentes Sicherheitsgerät besitzen und einen temporären Token zum Einloggen beantragt haben.

Hintergrund:

Die Online Sicherheitscodekarte dient als temporäre Lösung für Kunden, die keinen Zugriff auf Ihr permanentes Sicherheitsgerät besitzen und einen temporären Token zum Einloggen beantragt haben. Nach Aktivierung des temporären Tokens empfiehlt IB den Kunden sich in die Kontoverwaltung einzuloggen und die Online Sicherheitscodekarte zu aktivieren, die folgende Vorteile mitbringt:

- Erhöhte Sicherheit vor Internethackern durch die Abfrage zufälliger Codes beim Login;

- Verlängert das Zeitfenster (21 Tage ggü. 2 für temporären Token) zum Erhalt und zur Reaktivierung des permanenten Sicherheitsgeräts, wodurch die Online Sicherheitscodekarte deaktiviert wird;

- Erlaubt Rücküberweisungen und Informationsänderungen ohne die Restriktionen, die durch die Aktivierung des temporären Tokens entstehen;

- Kann direkt in der Kontoverwaltung erstellt und aktiviert werden und erlaubt die Reaktivierung des permanenten Sicherheitsgeräts ohne Kontakt zum Kundendienst.

 

Die Schritte zur Aktivierung der Online Sicherheitscodekarte lauten wie folgt:

(Falls die Menüs der Kontoverwaltung oben angezeigt werden):

1. Wählen Sie Konto verwalten, Sicherheit und Sicherheitsloginsystem;

 

2. Wählen Sie 'Ja, ich möchte am Sicherheitsloginsystem teilnehmen' und auf 'Fortfahren'

 

3. Nun wird Ihnen ein Bild der Online Sicherheitscodekarte angezeigt. Bitte drücken Sie auf die 'Drucken' Option, die sich oberhalb der angezeigten Karte befindet (oder machen Sie einen Rechtsklick mit der Maus auf die Karte um dieses Bild auf Ihrem Desktop zu speichern).

 

4. Drücken Sie auf die 'Bestätigen' Option um die Kartenaktivierung zu initialisieren. Zwei Kartenindexwerte erscheinen auf dem Bildschirm.

 

5. Geben Sie den drei-stelligen alphanummerischen Code der Karte, die zur ersten Indexnummer auf der Karte angezeigt wird, in das 'Kartenwerte' Feld ein und wiederholen Sie diesen Vorgang mit der zweiten Indexnummer ohne ein Leerzeichen zwischen den Codes einzugeben.

 

6 Drücken Sie auf 'Übermitteln'

 

7. Nach Aktivierung der Karte wird Ihnen das Ablaufdatum zusammen mit Optionen für weiterführende Aufgaben angezeigt.

 

Schauen Sie KB1042 für Videoinstruktionen zum Login mit der Sicherheitscodekarte.

Schauen Sie KB1942 für Instruktionen zur Reaktivierung des permanenten Sicherheitslogingeräts

Schauen Sie KB1943 für Instruktionen zur Beantragung eines Ersatzsicherheitsgeräts

 

(Falls die Menüs der Kontoverwaltung links angezeigt werden)

1. Wählen Sie User Management und Secure Login System;

2. Wählen Sie 'Yes, I want to participate in the Secure Login System'

3. Nun wird Ihnen ein Bild der Online Sicherheitscodekarte angezeigt. Bitte drücken Sie auf die 'Print' Option, die sich rechts oberhalb der angezeigten Karte befindet (oder machen Sie einen Rechtsklick mit der Maus auf die Karte um dieses Bild auf Ihrem Desktop zu speichern).

4. Drücken Sie auf die 'Confirm' Option um die Kartenaktivierung zu initialisieren. Zwei Kartenindexwerte erscheinen auf dem Bildschirm.

5. Geben Sie den drei-stelligen alphanummerischen Code der Karte, die zur ersten Indexnummer auf der Karte angezeigt wird, in das 'Card values' Feld ein und wiederholen Sie diesen Vorgang mit der zweiten Indexnummer ohne ein Leerzeichen zwischen den Codes einzugeben.

6. Drücken Sir auf 'Submit'

7. Nach Aktivierung der Karte wird Ihnen das Ablaufdatum zusammen mit Optionen für weiterführende Aufgaben angezeigt.

How to send documents to IB using your smartphone

概観: 

Interactive Brokers allows you to send us a copy of a document even if you do not currently have access to a scanner. You can take a picture of the requested document with your smartphone.

Below you will find the instructions on how to take a picture and send it to IB per email with the fllowing smartphone operating systems:

iOS (iPhone)

Android (i.e. Samsung Galaxy, HTC One X, Sony Xperia, Motorola Droid)

Windows Phone (i.e. Nokia Lumia, HTC Titan, Samsung Focus)

 If you already know how to do so, please consult the instructions about the information you will need to send us aside from the document picture. Click HERE - Where to send the email to and what to include in the subject.

iOS
1. Press the power button to turn your iPhone screen on. Tap, hold and slide upwards the
Camera icon on the bottom right of your screen then drag it upwards to access the Camera.

slide up from the lock screen to take a picture

- If you do not have the Camera icon, you may access the Camera app from the home screen
of your iPhone.
2. Place your iPhone above the document and take the desired portion or page of the document
and tap on the Camera button (designated with 1 on the below illustration - Fig. 3) to take a
photo. Then you need to access the picture - tap the image in the lower left-hand corner (number 2 in the
illustration)

Tap here to take a picture

3. Exit to the home screen by pressing the round Home button on the face of the iPhone.
4. Open the Photos app
5. Next, tap the album ‘Camera Roll’. Make sure that the picture is clear and the document
is well legible, if it isn’t, please repeat the previous two steps.
6. Touch once the picture to make the menus appear and tap the share icon
designated with 1 in the illustration below.

Share button iOS

5. Select the first option - Email Photo. Please consult the following instructions for the next step - what address you should send the picture to and what else to include aside from the document, HERE.
Note: to send emails your phone has to be configured for that. Please contact your email
provider if you are not familiar with this procedure.


Android
1. Open your applications list and start the camera app. Depending on your phone model, make or setup it might be called differently.
2. Place your phone over the document and take the desired portion or page of the document and
tap the icon for the camera. (The generic button will look like the one shown below.)

Tap to take a picture
3. Press the Home key to go back to the idle screen. Go back to the apps list and start the Gallery
application. On some phones it may be called Pictures or Photos.
4. Open the album called Camera or All pictures. The last image in either of those should be the
document you just took a picture of. Tap the screen once to bring up the buttons and tap the share
icon, which generically should look as shown below.

Share on Android
5. In the sharing menu that will be displayed now tap on Email. Please consult the following instructions for the next step - what address you should send the picture to and what else to include aside from the document, HERE.
Note: to send emails your phone has to be configured for that. Please contact your email
provider if you are not familiar with this procedure.

Send per email

 

Windows Phone
1. Press the camera button in the Desktop menu of Windows phone. (If you do
not see the camera in the desktop menu, please scroll to the right and choose
camera in the listed applications)
2. Take a picture by pressing the trigger button on the side of the phone.
3. Open the picture by scrolling to the left and press the ‘...’ menu item
at the bottom task bar to see the available options.
4. Please choose send and the configured Email account you would like to use.
5. In the upcoming email, please add the destination email address, the
subject and the text you would like to send and press the ‘Send email’ button in
the bottom menu. Please consult the following instructions for the next step - what address you should send the picture to and what else to include aside from the document, HERE.
Note: to send emails your phone has to be configured for that. Please contact your email
provider if you are not familiar with this procedure.


WHERE TO SEND THE EMAIL AND WHAT TO INCLUDE IN THE SUBJECT
The email has to be created observing the below instructions:
1. In the ‘To:’ field type...
a. newaccounts@interactivebrokers.com if your you are a resident of a non-European country
b. newaccounts.uk@interactivebrokers.co.uk if you are a European resident
2. The subject field must contain all of the below:
a. Your account number (it usually has the format Uxxxxxxx, where x are numbers) or your
username
b. The purpose of sending the document. Please use the below convention:
i. PoRes for a proof of residential address
ii. PID for a proof of identity

Stock Yield Enhancement Program FAQs

What is the purpose of the Stock Yield Enhancement Program?
The Stock Yield Enhancement program provides customers with the opportunity to earn additional income on securities positions which would otherwise be segregated (i.e., fully-paid and excess margin securities) by permitting IB to lend out those securities to third parties. Customers who participate in the program will receive a portion of the fee paid by the borrower as loan compensation for any day the loan exists and will receive cash collateral to secure the return of the stock loan at its termination.

 

What are fully-paid and excess margin securities?
Fully-paid securities are securities in a customer’s account that have been completely paid for. Excess margin securities are securities that have not been completely paid for, but whose market value exceeds 140% of the customer’s margin debit balance.

 

How is the income received by a customer on any given Stock Yield Enhancement Program loan transaction determined?
The income which a customer receives in exchange for shares lent depend upon loan rates established in the over-the-counter securities lending market. These rates can vary significantly not only by the particular security loaned but also by the loan date. In addition, IB assesses a Management Fee equal to 50% of the net loan fees paid in exchange for initiating, terminating and managing transactions. In determining the customer’s portion of these fees, the Market Fee Rate % is applied to the loan collateral and this daily Gross Lending Fee is split equally between IB and the customer.  For example, assume loan collateral of $10,000 and an annualized Market Fee Rate of 15%. In this example the daily Gross Lending Fee would be $4.16 (($10,000 *.15)/360), of which $2.08 would accrue to the customer and $2.08 to IB as its Management Fee. Lending fees are calculated and accrued daily similar to interest credits.

 

How is the amount of cash collateral for a given loan determined?
The cash collateral underlying the security loan and used for determining interest payments is determined using standard industry convention whereby the closing price of the stock is multiplied by 102% and then rounded up to the nearest whole dollar. For example, a loan of 100 shares of a stock which closes at $59.24 would be equal to $6,100 ($59.24 * 1.02 = $60.4248; round to $61, multiply by 100).

 

What are the eligibility requirements for participation in the IB Stock Yield Enhancement Program?
All IB LLC and IB UK margin accounts or IB LLC and IB UK cash accounts with equity over $50,000 at the time of application are eligible. IB Canada, IB Japan and IB India customers are not eligible. Japanese and Indian clients maintaining accounts with IB LLC are eligible.


In addition, Financial Advisor client accounts, fully disclosed IBroker clients, non-disclosed IBroker clients and Omnibus Brokers who meet the above requirements can participate. In the case of Financial Advisors and fully disclosed IBrokers, the clients themselves must sign the agreements. For non-disclosed IBroker and Omnibus Brokers, the broker signs the agreement.

 

Are IRA accounts eligible to participate in the Stock Yield Enhancement Program?
Yes.

 

How do I enroll in the IB Stock Yield Enhancement Program?
Clients who are eligible and who wish to enroll in the Stock Yield Enhancement Program may do so by selecting Trading Access and then Trading Configuration from Account Management and then checking the box on the Trading Permissions matrix titled "United States (Stock Yield Enhancement Program)".

 

What happens if equity in a participating cash account falls below the $50,000 qualifying threshold?
The cash account must meet this minimum equity requirement solely at the point of signing up for the program. If the equity falls below that level thereafter there is no impact upon existing loans or the ability to initiate new loans.

 

What is the difference between AQS and the IB Stock Yield Enhancement Program?
Clients lending through AQS participants self-direct their activity based upon information provided via AQS’ automated centralized market. In contrast, loans transacted through the Stock Yield Enhancement Program are determined and managed by IB.

 

Can I participate in both AQS and the IB Stock Yield Enhancement Program?
Clients can only lend in one program at a time. If, for example, a client signs up for the Yield program and is already approved for AQS lending, we will disable their ability to lend at AQS and recall their loans. They will still, however, retain the ability to borrow through AQS and can see market data. If the client disables the Yield Enhancement Program, their AQS loan permissions will be re-enabled. In sum, the yield program always takes precedence.

 

If my account is eligible for AQS am I automatically eligible to participate in the IB Stock Yield Enhancement Program?
No.

 

If my account is eligible for the IB Stock Yield Enhancement Program am I automatically eligible to participate in AQS?
No.

 

How does one terminate Stock Yield Enhancement Program participation?
Clients who wish to terminate participation in the Stock Yield Enhancement Program may do so by selecting Trading Access and then Trading Configuration from Account Management and then removing the check from the box on the Trading Permissions matrix titled "United States (Stock Yield Enhancement Program)".
Requests to terminate are typically processed at the end of the day.

 

What types of securities positions are eligible to be lent?
Eligible securities include U.S. common stocks (exchange listed, PINK and OTCBB), ETFs, preferred stocks and corporate bonds. Municipal bonds and non-U.S. securities are not eligible.

 

Is there any restriction on lending stocks which are trading in the secondary market following an IPO?
No, as long as IB is not part of the selling group.

 

How does IB determine the amount of shares which are eligible to be loaned?
The first step is to determine the value of securities, if any, which IB maintains a margin lien upon and can lend without client participation in the Stock Yield Enhancement Program. A broker who finances client purchases of securities via margin loan is allowed by regulation to loan or pledge as collateral that client’s securities in an amount up to 140% of the cash debit balance. For example, if a client maintaining a cash balance of $50,000 buys securities having a market value of $100,000, the debit or loan balance will be $50,000 and the broker holds a lien on 140% of that balance or $70,000 of securities. Any securities held by the client in excess of that amount are referred to as excess margin securities ($30,000 in this example) and are required to be segregated unless the client provides IB the authorization to lend through the Stock Yield Enhancement Program.

The debit balance is determined by first converting all non-USD denominated cash balances to USD and then backing out any short stock sale proceeds (converted to USD as necessary). If the result is negative then we free up 140% of that negative number. In addition, cash balances maintained in the commodities segment or for spot metals and CFDs are not considered.

EXAMPLE 1: Customer is long EUR 100,000 in a USD Base Currency account with a EUR.USD rate of 1.40. Customer purchases USD denominated stock valued at $112,000 (EUR 80,000 equivalent). All securities are deemed fully-paid as cash balance as converted to USD is a credit.

Component EUR USD Base (USD)
Cash 100,000 (112,000) $28,000
Long Stock   $112,000 $112,000
NLV     $140,000

EXAMPLE 2: Customer holds long USD of 80,000, long USD denominated stock of $100,000 and short USD denominated stock of $100,000. Long securities totaling $28,000 are deemed margin securities and the remainder of $72,000 excess margin securities. This is determined by subtracting the short stock proceeds from the cash balance ($80,000 - $100,000) and multiplying the resultant debit by 140% ($20,000 * 1.4 = $28,000)

Component Base (USD)
Cash $80,000
Long Stock $100,000
Short Stock ($100,000)
NLV $80,000

 

Will IB lend out all eligible shares?
There is no guarantee that all eligible shares in a given account will be loaned through the Stock Yield Enhancement Program as there may not be a market at an advantageous rate for certain securities, IB may not have access to a market with willing borrowers or IB may not want to loan your shares.

 

Are Stock Yield Enhancement Program loans made only in increments of 100 (similar to AQS)?
No. Loans can be made in any whole share amount although externally we only lend in multiples of 100 shares. Thus the possibility exists that we would lend 75 shares from one client and 25 from another should there be external demand to borrow 100 shares.

 

How are loans allocated among clients when the supply of shares available to lend exceeds the borrow demand?
In the event that the demand for borrowing a given security is less than the supply of shares available to lend from participants in our Yield Enhancement Program, loans will be allocated on a pro rata basis (e.g. if aggregate supply is 20,000 and demand is 10,000, each client will be eligible to have 50% of his/her shares lent)

 

Are shares loaned only to other IB clients or to other third parties?
Shares may be loaned to any counterparty and is not limited solely to other IB clients.

 

Can the Stock Yield Enhancement Program participant determine which shares IB can lend?
No. The program is entirely managed by IB who, after determining those securities, if any, which IB is authorized to lend by virtue of a margin loan lien, has the discretion to determine whether any of the fully-paid or excess margin securities can be loaned out and to initiate the loans.

 

Are there any restrictions placed upon the sale of securities which have been lent through the Stock Yield Enhancement Program?
Loaned shares may be sold at any time, without restriction. The shares do not need to be returned in time to settle your sale of the share and proceeds from the sale are credited to the client’s account on the normal settlement date. In addition, the loan will be terminated on the open of the business day following the security sale date.

 

Can a client write covered calls against stock which has been loaned out through the Stock Yield Enhancement Program and receive the covered call margin treatment?
Yes. A loan of stock has no impact upon its margin requirement on an uncovered or hedged basis since the lender retains exposure to any gains or losses associated with the loaned position.

 

What happens to stock which is the subject of a loan and which is subsequently delivered against a call assignment or put exercise?
The loan will be terminated on T+1 of the action (trade, assignment, exercise) which closed or decreased the position.

 

What happens to stock which is the subject of a loan and which is subsequently halted from trading?
A halt has no direct impact upon the ability to lend the stock and as long as IB can continue to loan the stock, such loan will remain in place regardless of whether the stock is halted.

 

Can the cash collateral from a loan be swept to the commodities segment to cover margin and/or variation?
No. The cash collateral securing the loan never impacts margin or financing.

 

What happens if a program participant initiates a margin loan or increases an existing loan balance?
If a client maintains fully-paid securities which have been loaned through the Stock Yield Enhancement Program and subsequently initiates a margin loan, the loan will be terminated to the extent that the securities do not qualify as excess margin securities. Similarly, if a client maintaining excess margin securities which have been loaned through the program increases the existing margin loan, the loan may again be terminated to the extent that the securities no longer qualify as excess margin securities.

 

Under what circumstances will a given stock loan be terminated?
In the event of any of the following, a stock loan will be automatically terminated:

- If the client elects to terminate program participation
- Transfer of shares
- Borrowing of a certain amount against the shares
- Sale of shares
- Call assignment/put exercise
- Account closure

 

Do participants in the Stock Yield Enhancement Program receive dividends on shares loaned?
While the lender of the securities is entitled to receive the amount of all dividends and distributions made on loaned securities, they may receive cash payments, commonly referred to PILs, in lieu of dividends. Depending upon ones holding period for the shares loaned, the receipt of a PIL may have an adverse tax impact for certain U.S. taxpayers as such payments are taxed as ordinary income rather than at the reduced rate associated with qualified dividends.  IB will attempt to mitigate the payment of PILs by recalling shares prior to a dividend, however, IB cannot guarantee that the borrower will be able to return the shares within the necessary time frame to avoid PIL treatment.

 

Do participants in the Stock Yield Enhancement Program retain voting rights for shares loaned?

No. the borrower of the securities has the right to vote or provide any consent with respect to the securities if the Record Date or deadline for voting, providing consent or taking other action falls within the loan term.

 

How are loans reflected on the activity statement?

Loan collateral, shares outstanding, activity and income is reflected in the following 6 statement sections:


1. Cash Detail – details starting cash collateral balance, net change resulting from loan activity (positive if new loans initiated; negative if net returns) and ending cash collateral balance.
 

 

2. Net Stock Position Summary – for each stock details total Shares at IB, the number of Shares Borrowed, the number of Shares Lent (through AQS or the Stock Yield Enhancement Program) and the Net Shares (=Shares at IB + Shares Borrowed - Shares Lent).

 

3. IB Managed Securities Lent – lists for each stock loaned through AQS or the Stock Yield Enhancement Program the Quantity of shares loaned, the Net Fee Rate (%) and the Collateral Amount.

 

4. IB Managed Securities Lent Activity – details the loan activity for each security including Loan Return Allocations (i.e., terminated loans); New Loan Allocations (i.e., initiated loans); the share Quantity; the Net Fee Rate (%) and the Collateral Amount.

 

5. IB Managed Securities Lent Activity Fee Details – details on an individual loan basis the Market Fee Rate (%); the Gross Lend Fee (represents the total fee charged to the borrower which is equal to {Collateral Amount * Market Fee Rate}/360); the IB Management Charge (equals 50% of the Gross Lend Fee); the Net Lend Fee Rate (represents the half of the Market Fee Rate which the client earns) and the Net Lend Fee (represents the client’s portion of the fee income. Equals the Gross Lend Fee - IB Management Charge).
Note: This section will only be displayed if the Net Lend Fee accrual exceeds USD 1 for the statement period.  

 

6. Interest Accruals – the loan fee income is accounted for here as an interest accrual and is treated as any other interest accrual (aggregated but only displayed as an accrual when exceeding $1 and posted to cash monthly). For year-end reporting purposes, this fee income will be reported as miscellaneous income on the Form 1099 issued to U.S. taxpayers.

 

Selecting a billing account

Account holders who maintain multiple accounts which are linked together by a common may designate the account from which any monthly market data subscription fees are to be billed. This feature may be of benefit to individuals who wish to ensure that such fees are deducted from the account maintaining the greatest equity (to minimize the likelihood of a disruption in service due to insufficient funds and/or position liquidations to cover subscription fees) or are not deducted from accounts subject to contribution limits (e.g., IRAs).

To designate a billing account, you would need to first log in Account Management and select the Trading Access and then Market Data Subscriptions menu options. You will be presented with a screen similar to that below (Exhibit 1) which includes a drop-down list box of all accounts which are linked and from which a billing account may be designated. Select the desired account and then click on the 'Change Billing Account' button.

Exhibit 1

 

You will then receive the following message confirming your selection (Exhibit 2). Note that changes will take place effective with the next monthly billing cycle (market data subscriptions fees for a given month are generally deducted in the first week of the successive month).

Exhibit 2

 

Account holders should also pay special attention to the notice provided through the 'Explain' mouse over (Exhibit 3) which details certain limitations with respect to this feature. Also note that this designation feature only serves to designate the account from which market data subscription fees are to be deducted and has no impact upon other fees such as the monthly minimum activity fee, interest and commissions, all of which are billed to the account in which they are incurred.

Exhibit 3

ACATS Transfer Guide (US brokerage account transfers)

ACATS Transfer Guide

Introduction

ACATS Transfer Benefits

Navigating The Process

Incoming Or Outgoing

Initiating Your Transfer

What To Expect

Who To Contact For Help

 

Introduction

Understanding the basic facts about transferring accounts between US brokerage firms can be help to avoid delays.  Through this article and other Knowledge Database resources, Interactive Brokers seeks to assist with your incoming and outgoing ACATS requests.

US brokerage firms utilize a standardized system to transfer customer accounts from one firm to another.  Known as the Automated Customer Account Transfer Service or ACATS, the process allows assets to move seamlessly between  brokerage firms in a unified time frame.   ACATS transfers are facilitated by a third party, the National Securities Clearing Corporation (NSCC), to assist participating members with timely asset transfers.

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ACATS Transfer Benefits

The majority of assets may be transferred between US brokerage firms and some banks through ACATS.  This standardized system includes stocks, US corporate bonds, listed options, unit investment trusts, mutual funds, and cash.  Information on assets eligible for transfer is provided at "Assets Eligible..."  Though impacted by multiple factors and time constraints, the accepted or rejected transfers finalize within 10 business days in most cases.

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Navigating The Process

4 simple steps of the ACATS process will help you understand the flow and minimize delays.  Familiarizing yourself with the transfer process helps to ensure a successful transition.

1.  Incoming or Outgoing

2.  Initiating Your Transfer

3.  What to Expect

4.  Who to Contact For Help 

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 1. Incoming or Outgoing

 

Incoming ACATS Transfers

The financial institution that is receiving your assets and account transfer is known as the "receiving firm."  Investors always work with and through the "receiving firm" to move full or partial account assets into a new broker. 

Contact the "receiving firm" (Interactive Brokers) to review the firm's trading policies and requirements.  You should verify that your assets are eligible for trading at the "receiving firm" before initiating the transfer request.   Not all ACATS transferable assets are acceptable for trading at every brokerage firm.

Outgoing ACATS Transfers

All outgoing ACATS transfers, full or partial, must be approved by the "delivering firm."  Investors, however, should work with and through the "receiving firm" in order to begin the the transfer process or to status the progress of the request.      

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2. Initiating Your Transfer

Investors must always begin the ACATS transfer with the "receiving firm."  An ACATS transfer form or Transfer Initiation Form (TIF) must be submitted.  The "receiving firm" takes your reqeust and communicates with the "delivering firm" via ACATS.  The process begins with this request for transfer of the account. 

For your Interactive Brokers Account, the transfer is usually submitted online.  Video instruction on submitting the transfer is provided at "How to deposit funds via a full ACATS/ATON Transfer."  or through Step-by-step instructions.

Note: Outgoing account transfers from your IB account should be directed to the other broker.  Your request will be submitted to IB from the other broker through the ACATS electronically.

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3. What to Expect

Your Account

Brokers ensure the safety and security of transfer requests by only authorizing requests between open accounts that meet the following criteria:

  • Same Account Title
  • Same Tax ID Number
  • Same Account Type

Transfer Approval

Ultimately responsible for validating the transfer,  the "delivering firm" may accept  information from the "receiving firm" correcting data originally entered.  Approved or validated requests result in the delivery of positions to the "receiving firm" for their acceptance.   Assets may not be accepted by the "receiving firm" for the following:

  • Non-marginable or Margin (credit) violation
  • Not Tradable
  • DTC Chill

Note: The most common reasons for ACATS rejections are outlined by clicking here.

Processing Time-frame

The processing time for each transfer request is fixed.  In general, approved transfers complete within 4 to 8 business days.  Almost all transfers complete within 10 business days.  Each firm is required to perform certain steps at specific intervals in the process.  Feel free to review the Full ACATS transfer process flow.

 

Fees

While Interactive Brokers does not charge a fee to transfer your account via ACATS, some brokers do apply a fee for full and partial transfers. Prior to initiating your transfer, you should contact the "delivering firm" to verify any charge.

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4.  Who To Contact For Help

Interactive Brokers Customer Service stands poised to assist with your incoming ACATS transfer reqeust.  Click here for Customer Service contact resources.

Note:  Outgoing or ACATS transfers sending accounts to another broker should be directed to the "receiving firm."  Their Account Transfer Group will work with Interactive Brokers directly to complete your outgoing request.

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