有關客戶資產保護的信息

下列信息適用於非美國指數期權、場外(OTC)差價合約(CFD)及非美國指數期貨(與非美國指數期權相結合時)的交易

 

盈透證券(英國)有限公司


客戶資產
盈透證券(英國)有限公司("IBUK")由金融市場行為監管局(FCA)授權並規管,註冊號碼208159。 IBUK是由盈透證券集團(IBG LLC)全資擁有的子公司。 IBUK按照FCA客戶資產規則"CASS"提供客戶資金與客戶資產服務。

客戶資金受到下列保護:
客戶資金規則適用於所有在從事金融工具市場法規(MiFID)業務及/或指定投資業務的過程中從客戶處收取資金,或持有客戶資金的規管公司。

客戶資金與IBUK自有資金完全分離。如果出現授權公司破產的情況,在分離賬戶中持有的客戶資金將被歸還給客戶而不是被債權人看做可收回資產。如果出現差額,客戶可能有資格向金融服務補償計劃("FSCS")要求補償。

客戶資金圈定在獨立銀行賬戶中,以信託形式在客戶名義下持有。這些賬戶分散在多家具有投資等級評級的銀行中,以避免一家機構的風險集中性。 IBUK選擇並指定持有客戶資金的銀行時會考慮銀行的專業性、市場聲譽、財務狀況及任何可能對客戶權利有負面影響的有關客戶資金持有的法律要求及市場慣例。

IBUK僅在以下情況下允許交易所、清算所或中介經紀商在客戶交易賬戶中持有客戶資金:向其轉賬資金是用於交易或用於滿足客戶提供交易抵押的義務。

IBUK每天對在客戶資金銀行賬戶及客戶交易賬戶中持有的客戶資金及其對客戶的負債作詳細的對賬,確保客戶資金被恰當隔離,且足夠滿足FCA的CASS規則要求的所有債務。所有計入這些銀行賬戶的資金公司均作為受託人持有(或者如果相關,作為代理)。

FCA規則還要求IBUK維持CASS決議,以確保萬一公司發生清算的情況下,破產管理人能夠查找信息以便向公司客戶及時歸還客戶資金及資產。

金融服務補償計劃

盈透證券(英國)有限公司("IBUK")是由金融市場行為監管局("FCA")授權並規管的投資公司,以及金融服務補償計劃("FSCS")成員。按照FCA補償規則,某些合格客戶有資格獲得補償。

有關合格性的要點為:

  • FSCS僅在授權公司欠款的情況下才向合格申請人支付賠償並將調查是否存在該事實。
  • FSCS僅賠償財務損失,對UK投資公司的限制在下面列出。
  • FSCS的設立主要為了幫助個人,儘管小型公司也包括在內。
  • 大型公司通常排除在外。

投資

如果授權投資公司無法滿足索賠,則FSCS提供保護——例如,如果一家授權投資公司破產,不能將資產返還給其客戶。 FSCS授權投資公司歸類為投資的資產包括股票與股份、期貨、期權、CFD及其他由客戶投入的規管金融工具及資金。

賠償限制

您收到的實際賠償水平將基於您的索賠。 FSCS僅支付金融損失賠償。賠償限制限各授權公司,各個人。

當前對投資的最高賠償水平為各公司各人5萬英鎊(向從2010年一月1日起被宣布欠款的公司提出的索賠)。賠償水平可能變化,要獲取最新詳情請見FSCS網站://www.fscs.org.uk / 。
 

下列信息適用於所有曾經或繼續通過IB LLC交易所有產品(除金屬及OTC CFD)的客戶。

 

盈透證券有限公司("IBLLC")


客戶資產
客戶資產隔離在指定給IBLLC客戶的專用特殊銀行或託管賬戶中。該保護(SEC稱為“儲備”,CFTC稱為“隔離”)是證券和商品經紀的核心原則。通過妥善分離客戶資產,如果客戶沒有借入資金或股票,且未持有期貨頭寸,那麼倘若經紀商違約或破產,客戶資產可以返還給客戶。


無借貸現金或證券的證券賬戶
證券客戶資金保護如下:

  • 一部分存在14家大型美國銀行的IBLLC客戶專用特殊儲備賬戶中。這些存款分佈在多家具投資等級評級的銀行,以避免任何單個機構帶來的集中風險。每間銀行持有的資金不超過IBLLC所持客戶資產的5%。
  • 一部分投資於美國國債,包括直接投資短期國債和以美國國債作為抵押的反向回購協議。這些交易與第三方進行並通過中央對手方清算所(固定收益結算公司,即“FICC”)擔保。抵押為IBLLC所有並存放在託管銀行客戶專用的隔離儲備保管賬戶。美國國債也可質押給清算所用以支持客戶所持證券期權頭寸的保證金要求。
  • 客戶現金在儲備賬戶中以淨值為基礎,反映超出客戶借方餘額的淨貸方餘額。已達到任一客戶在IBLLC有保證金借貸,該借貸都有價值借貸額度200%的股票進行擔保的程度。
  • 目前美國證券交易委員會(SEC)要求經紀交易商至少每週對客戶的資金和證券進行詳細核對(也稱為“儲備計算”),以確保客戶的資金準確地與經紀交易商的基金分離。

客戶擁有的、全額支付的證券在明確認定的客戶專用存管和託管賬戶中受到保護。 IBLLC每日核對客戶擁有的證券頭寸,確保存管和託管機構已收到這些證券。

商品帳戶

商品客戶資金保護如下:

  • 一部分質押給期貨清算所用以支持客戶所持期貨及期貨期權頭寸的保證金要求,或在確定為用於隔離IB客戶資金的託管賬戶中持有。
  • 一部分存放在確定為隔離IBLLC客戶資金的商品清算銀行/經紀商賬戶中,以支持客戶保證金要求。
  • 按商品法規定,客戶資金受到實時保護。 IBLLC每日對客戶資產進行詳細核對,以確保客戶資金被恰當分離。計算結果每日提交給監管機構。

有保證金借貸的證券帳戶

向IBLLC借款買入證券的客戶,證券法規允許IBLLC最高抵押或借入價值借貸價值140%的股票。通常,IBLLC借出其獲許借出股票總數中的一小部分。

  • 例如,在2011年6月30日,IBLLC從保證金客戶提供的130億美元股票中藉出8億美元。
  • 當IBLLC借出客戶的股票時,必須將額外資金存入指定儲備賬戶,為客戶設置預留金額。在上面的例子中,借出的客戶股票的總價值8億美元隔離在特殊儲備金賬戶中。

帳戶保護

IBLLC客戶證券賬戶受到證券投資人保護公司("SIPC")最高達50萬美元(現金額度25萬美元)的保護,且根據IBLLC與倫敦勞埃德保險公司(Lloyd's of London)承銷商協定的超SIPC賠額政策,證券賬戶還享有額外最高達3000萬美元(現金額度90萬美元)的保護,總限額一億五千萬。期貨、期貨期權不包含在內。與所有證券公司相同,此類保險在經紀交易商倒閉時為客戶提供保護,而不是針對證券市場價值的損失。

出於確定客戶賬戶的目的,有相似的名字和名稱的賬戶被合併在一起(例如:John和Jane Smith與Jane和John Smith),但名稱不同的賬戶不合併(例如:個人/John Smith和個人退休賬戶/John Smith)。

SIPC是一個非盈利性質,由SIPC成員經紀交易商集資的成員性質的公司。查看關於SIPC的更多信息和常見問題解答(例如SIPC怎樣運作,什麼受到保護,怎樣索賠,等等),請參見以下網站:


http://www.SIPC.org

http://www.finra.org/InvestorInformation/InvestorProtection/SIPCProtecti...

或聯繫SIPC,地址如下:

Securities Investor Protection Corporation
805 15th Street, N.W. - Suite 800
Washington, D.C. 20005-2215
電話:(202) 371-8300
傳真:(202) 371-6728

 

Information Regarding SIPC Coverage

1. Interactive Brokers LLC is a member of SIPC.    

2. SIPC protects cash and securities held with Interactive Brokers.   

3. SIPC does not generally cover commodity futures or options on futures.

4. SIPC protects cash, including US dollars and foreign currency, to the extent that the cash was "deposited with Interactive Brokers for the purpose of purchasing securities."

5. SIPC does not generally cover cash or foreign currency that is not "deposited with Interactive Brokers for the purpose of purchasing securities."  For example, SIPC does not generally cover cash in commodity futures trading accounts.

6. Interactive Brokers is not able to make any statements or representations about how cash deposited into a securities account in connection with forex trading or swept from a commodities account would be treated by SIPC. SIPC protection would depend in part on whether the cash was considered to be "deposited with Interactive Brokers for the purpose of purchasing securities." Interactive Brokers expects that at least one factor in deciding this would be whether and the extent to which the customer engages in securities trading in addition to or in conjunction with forex or commodities trading.  

Account holders seeking further information should refer such inquiries to their own legal counsel or SIPC.

Excess Margin Securities

The term "excess margin securities" refers to margin securities carried for the account of a customer having a market value in excess of 140 percent of the total debit balance in the customer's account. These securities are in excess of the securities held in a customer's margin account that are pledged by the customer as collateral for the margin loan and can be used to support the purchase of additional securities on margin

Example:

A customer whose account equity consists solely of a cash balance of USD 10,000 on Day 1 purchases 400 shares of stock ABC at USD 50 per share on Day 2.

Account Balance Day 1 Day 2
Cash $10,000 ($10,000)
Stock $0 $20,000 
Total $10,000 $10,000 

On Day 2, the customer's excess margin securities total USD 6,000. This is calculated by subtracting 140% of the margin debit or loan balance from the market value of the stock position ($6,000 = $20,000 - {1.4 * $10,000}).

The term is relevant from a regulatory perspective as the SEC requires that U.S. broker dealers segregate and maintain in a good control location (e.g., DTC or bank) all customer securities which are deemed excess margin securities. Such securities cannot be pledged or loaned to finance the activities of the firm or other customers without specific written permission from the customer. The portion of the securities classified as margin securities ($20,000 - $6,000 or $14,000 in this example) are subject to a lien and may be pledged or loaned by the broker to others to assist in financing the loan made to the customer.

Note that securities which were excess margin at the date of acquisition may later be reclassified as margin securities based upon the customer's subsequent trade and/or margin borrowing activity. For example, if the loan value of excess margin securities is subsequently used to acquire additional securities on margin, a portion of securities will then be reclassified as margin securities and subject to a lien. If the customer subsequently deposits cash or sells securities to reduce or eliminate the margin loan, the securities will be reclassified as excess margin or fully paid and are required to be segregated.
See also "fully paid securities".

Fully Paid Securities

The term "fully paid securities" refers to securities held in a customer's margin or cash account that have been completely paid for and are not being pledged as collateral to support the purchase of other securities on margin. The term is relevant from a regulatory perspective as the SEC requires that U.S. broker dealers segregate and maintain in a good control location (e.g., DTC or bank) all customer securities which are fully paid.  Such securities cannot be pledged or loaned to finance the activities of the firm or other customers.

Note that securities which were fully paid at the date of acquisition may later be reclassified as margin or excess margin securities based upon the customer's subsequent trade and/or borrowing activity. For example, if the loan value of fully paid securities is subsequently used to acquire additional securities on credit, a portion of securities will then be classified as margin securities and subject to a lien and potential pledge or hypothecation by the broker.

See also "excess margin securities".

Comparison of U.S. Segregation Models

INTRODUCTION
The regulation of securities and commodities products and brokers1 in the U.S. is administered by two distinct federal agencies, the Securities and Exchange Commission (SEC) for securities including stocks, ETFs, bonds, options and mutual funds and the Commodities Futures Trading Commission (CFTC) for commodities including futures and options on futures.2 While both agencies seek to safeguard customer assets by restricting their use and “segregating” them from assets of the broker, the regulations and manner in which they accomplish this differs. The following article provides a basic overview of two segregation models and additional considerations relating to IB accounts.


OVERVIEW
Differences between the CFTC and SEC segregation models originate largely from the products themselves, whose characteristics are fundamentally unique. Commodity products, by nature, do not involve an extension of credit by the broker to the customer as a futures contract is not an asset but rather a contingent liability which is marked-to-market and a long futures option, while an asset, must be paid for in-full. Consequently, non-option assets in a commodities account are generally comprised of funds deposited as margin to secure performance on the contracts therein. Since the broker may not use the funds of one customer to margin or guarantee the transactions of another, the commodities segregation requirement (CFTC Rules 1.20 – 1.30) is equal to the gross assets of all customers and the broker needs to add its own funds to segregation to cover customers whose net equity is in deficit.

A securities margin account, in contrast, can facilitate the extension of credit for the purpose of long securities (e.g., stocks, bonds) purchases or short securities sales on a secured basis. The segregation or reserve requirement rules recognize this through special provisions for the protection of each of the cash and securities components, further distinguishing fully-paid securities from those whose purchase the broker has financed and maintains a lien upon. Here, the broker must deposit into a separate bank account the net amount of customer cash balances3, in accordance with a formula set forth in SEC Rule 15c3-3. In addition, the broker must identify and segregate in a good control location (e.g., depository, bank) customer securities which meet the definition of “fully paid” or “excess margin”.

The table below provides a comparison of the main principals of each model.

COMPARISON OF CFTC & SEC SEGREGATION MODELS
PRINCIPAL CFTC SEC

Separation of Customer Balances

 

 

 

 

 

 

 

Commodity customer balances must be maintained separate from firm assets and cannot be used to finance proprietary business activities or to satisfy firm debts.

Funds used for trading on non-US commodity exchanges must be kept separate from those used for trading on U.S. exchanges (even for the same customer).

Commodity customer balances must also be maintained separate from securities customer balances (even for the same customer).

Securities customer balances must be maintained separate from firm assets and cannot be used to finance proprietary business activities or to satisfy firm debts.

Securities customer balances must also be maintained separate from commodity customer balances (even for the same customer).

 

 

Priority in the Event of Broker Default

 

 

 

 

 

 

Commodity customers maintain priority and equal claim over assets in each of their respective U.S. segregated and non-U.S. secured pools.

No claim on assets in a commodity pool in which one is not a participant and no claim on securities customer assets.

If commodity segregated assets are insufficient to meet claims and broker is insolvent, customers share equally in shortfall and become general creditors for residual claims.

Securities customers maintain priority and equal claim over assets.4

No claim on commodity segregated assets.

If securities segregated assets are insufficient to meet claims, broker is insolvent and claims exceed SPIC coverage, customers share equally in shortfall and become general creditors for residual claims.

 

Segregation Style

Gross – the broker may not use the funds of one customer to margin or guarantee the transactions of another and must segregate assets in an amount at least equal to the sum of all customer credit balances.

Net – broker may use customer cash credit balances to finance, on a secured basis, margin loans to other customers and may lend or pledge a portion of customer securities purchased on margin to other customers selling short.

 

Investment of Cash Balances  

Broker is allowed to reinvest commodity customer’s cash balances and retain an interest in the income generated.

Permissible investments include: U.S. government securities, municipal securities, government sponsored enterprise securities, bank CDs, corporate obligations (commercial paper, notes and bonds) fully guaranteed as to principal and interest by the U.S. under the Temporary Liquidity Guarantee Program and money market mutual funds.

Securities which are the subject of reinvestment must be maintained in a segregated account.
 

Broker is allowed to reinvest securities customer’s cash balances and retain an interest in the income generated.

Permissible investments limited to “qualified securities” defined as securities which are guaranteed as to both interest and principal by the U.S. government.

Securities which are the subject of reinvestment must be held in Special Reserve Bank Account (i.e., segregated).
Computation Frequency Daily Weekly
Insurance None Securities Investor Protection Corporation (SIPC) provides insurance of up to USD 500,000 with a cash sublimit of USD 250,000.

 

ADDITIONAL CONSIDERATIONS
In addition to the safeguards afforded through segregation, IB employs a number of policies and practices which serve to enhance the safety and security of accounts beyond that outlined above. These include the following:

- IB computes its securities segregation or reserve requirement on a daily rather than weekly basis as allowed by regulation, thereby ensuring timely determination as to the amount required to be reserved and the deposit of funds necessary to satisfy the requirement.

- IB’s does not avail itself of the generally more permissive rules with respect to the investment of commodity customer cash balances. These balances are instead invested in a manner similar to that of securities cash balances (i.e., U.S. government securities) with the exception of an occasional investment in money market funds.

- All customer securities positions are held in the securities segment of the Universal Account as opposed to the commodities (commodities margin met with cash and/or futures options), thereby limiting their hypothecation to the more restrictive rules of the SEC.

- In addition to SIPC coverage, IB maintains an excess SIPC policy with Lloyd's of London which, in aggregate with SIPC, offers insurance totaling $30 million (with a cash sublimit of $900,000), subject to an aggregate firm limit of $150 million.

- IB offers account holders the ability to sweep cash balances in excess of that required for margin purposes in either the securities or commodities segment to the other segment. Details as to this feature may be found in KB1851.

- For additional information regarding IB strength and security, please review the following website page.

 

Other Relevant Knowledge Base Articles:

Cash Sweeps

Information Regarding SIPC Coverage

 

Footnotes:

1The term broker as used in this article is intended to refer to an organization registered with both the SEC as a Broker-Dealer and the CFTC as a Futures Commission Merchant for the purpose of conducting customer transactions

2Single stock futures are a hybrid product jointly regulated by the SEC and CFTC and allowed to be carried in either account type.

3Including cash obtained through the use of customer securities such bank pledges or stock loans less cash required to finance customer transactions (e.g., stock borrows, customer fails to deliver of securities, or margin deposited for short option positions with OCC).

4Assets, or customer property, which securities customers share in proportion to their net equity claim, include cash, margin securities and fully-paid securities held in “street name”. IB does not hold securities in the customer’s name which are not considered bulk customer property.

How to request a Digital Security Card+ (DSC+) replacement

The following steps are required in order to replace a Digital Security Card+ which has been lost, stolen or became inoperable

1. Notify IB Client Services - Contact IB Client Services to obtain a temporary account access (Temporary Code). This service can only be provided via telephone and requires the identity of the account holder to be verified, as detailed in KB70

2. Obtain an Online Security Code Card - Activate an Online Security Code Card, which offers enhanced protection and full Account Management functionality for an extended period of 21 days. Please consult KB1873 should you need guidance for this specific step

3. Request the DSC+ replacement - Once you have completed the Online Security Code Card activation, please remain in the Secure Login System section of your Account Management and order your replacement DSC+ as follows

4. Click on the button Request Physical Device

5. The shipping address will be shown in the device information screen. If your address is outdated or invalid, you can amend it by clicking on Change Address and following the on-screen instructions. If you do not need to update your address, please proceed to step 6.

6. Enter a four-digit numeric  Soft PIN1 for your DSC+. Please make sure to remember the PIN you are typing since it will be necessary to activate and to operate your device. When applicable and desired, you may change the account on which the 20 USD deposit will be kept on hold2.  Click then on Continue

7. The system will show you a summary of your order. Please make sure of the correctness of all the information displayed. Should you need to perform changes, click on the button Back, otherwise submit the request by clicking on Continue

8. You will receive a final confirmation containing the estimated shipment date3. Click on Ok to finalize the procedure

 


Notes

1. For PIN guidelines, please consult KB2269

2. The Security token and the shipment are both free of charge. Nevertheless, when you order your device, we will freeze a small amount of your funds (20 USD).  If your device is lost, intentionally damaged, stolen or if you close your account without returning it to IB, we will use that amount as a compensation for the loss of the hardware. In any other case, the hold will be released once youre device has been returned to IB. More details on KB1861

3. For security reasons, the replacement device is set to auto-activate within three weeks from the shipment date. IB will notify you when the auto-activation is approaching and when it is imminent.

 

References
  • See KB1131 for an overview of the Secure Login System
  • See KB2636 for information and procedures related to Security Devices
  • See KB2481 for instructions about sharing the Security Login Device between two or more users
  • See KB2545 for instructions on how to opt back in to the Secure Login System
  • See KB975 for instructions on how to return your security device to IB
  • See KB2260 for instructions on activating the IB Key authentication via IBKR Mobile
  • See KB2895 for information about Multiple 2Factor System (M2FS)
  • See KB1861 for information about charges or expenses associated with the security devices
  • See KB69 for information about Temporary passcode validity

 

Cash Sweeps

Background
Underlying the IB Universal account are two separate sub-accounts or segments, one for the securities positions and balances which are subject to the customer protection rules of the SEC and another for the commodities positions and balances which are subject to the customer protection rules of the CFTC. This Universal account structure is designed to minimize the administrative overhead that customers would otherwise be exposed to were they to maintain two distinct accounts (e.g., transferring of cash between accounts, login and order submission through separate accounts, multiple statements, etc.) while preserving the separation required by regulation.

These regulations further require that all securities transactions be effected and margined in the securities segment of the Universal account and commodities transactions in the commodities segment.1  While the regulations allow for the custody of fully-paid securities positions in the commodities segment as margin collateral, IB does not do so, thereby limiting their hypothecation to the more restrictive rules of the SEC. Given the regulations and policies which direct the decision to hold positions in one segment vs. the other, cash remains the only asset eligible to be transferred between the two and for which customer discretion is provided.

Outlined below is a discussion as to the cash sweep options offered, the process for selecting an option as well as selection considerations.

 
Cash Sweep Options
Customers are provided with 3 sweep options, descriptions for which are provided below:
 
 1. Do not sweep excess funds – under this election, excess cash does not move from one segment to another unless necessary to:
a. Eliminate/reduce a margin deficiency in the other segment;
 
b. Minimize a cash debit balance and therefore interest charges in a given segment.  Note that this is the default option and sole option for account holders having only one of securities or commodities trading permissions.
 
2. Sweep excess funds into my IB securities account – here, cash balances are only held in the commodities segment to the extent necessary to satisfy the current commodities margin requirement. Any cash in excess of the margin requirement, generated as a result of either an increase in cash (e.g., favorable variation and/or transaction related) or decrease in the margin requirement (e.g., changes in the SPAN risk arrays and/or transaction related) will be automatically transferred from the commodities segment to the securities segment. Note that the account holder must have permissions to trade securities in order to select this option.
 
3. Sweep excess funds into my IB commodities account – here, cash balances are only held in the securities segment to the extent that they, along with any other securities positions having loan value, are needed to satisfy the current securities margin requirement. Note that the account holder must have permissions to trade commodities in order to select this option. 
 
Other items of note:
-  As the Universal account allows for cash balances to be held in a variety of denominations, a hierarchy exists for the purpose of determining which particular currency to transfer first when long balances in multiple currencies exist. In these situations the procedure is to first transfer balances denominated in the Base Currency, then USD and then the remaining long currency balances in order of highest to lowest.
 
- To minimize the likelihood of one segment incurring a margin deficiency following the sweep of excess cash to the other, the full excess will not be transferred and a buffer equal to 5% of the maintenance margin requirement will be retained. Similarly, to minimize the operational overhead of transferring nominal balances, balances will only be transferred if, after giving effect to the 5% margin cushion, the excess, if any, is not less than 1% of account equity or $200.
 
- When performing the pre-trade credit check to determine whether an account maintains sufficient equity to support a new order, excess cash maintained in one segment will be considered for trades conducted in the other (although a sweep will not occur until the trade has executed and only if it then remains necessary for margin compliance).  Accounts which are designated as a Pattern Day Trader and which are subject pre-trade credit check that takes into account the prior as well as current day's equity should pay particular attention to the Selection Considerations section below.
 
 
Selecting a Sweep Option
If your Account Management version contains a series of menu options on the left-hand side, select the Account Administration and then Excess Funds Sweep menu options. If your version has menu options across the top, select the Manage Account/Settings and then the Configure Account/Excess Funds Sweep menu options. Regardless of your version, you will be presented with a screen which appears as follows:
 

You may then select the radio button alongside the option of your choice and select the Continue button. Your choice will take effect as of the next business day and will remain in effect until a different option has been selected. Note that subject to the trading permission settings noted above, there is no restriction upon when or how often you may change your sweep method. 

 

Selection Considerations
While the decision to elect one segment vs. the other for the purposes of maintaining excess cash may involve subjective decisions and preferences unique to each customer (e.g. customer maintains assets which are significant and concentrated in one segment vs. the other), outlined below are several factors warranting consideration:
 
1. Pattern Day Trading Equity - The securities buying power of accounts designated by regulation as Pattern Day Traders (i.e., 4 or more day trades within a 5 business day period) is limited by the lesser of the current or prior day’s closing equity in the securities segment. As such, an election to sweep excess funds to the commodities segment will prevent the inclusion of such funds in this calculation, thereby potentially limiting the capacity to enter new orders. To maximize the use of equity for purposes of entering securities orders, one would need to elect to sweep excess fund to the securities segment.  Note that an election to the securities segment will not impair the ability to enter commodities orders as the pattern day trading rules do not apply to such accounts.
 
2. Insurance – SIPC protection is afforded to assets in the securities segment and there is no commensurate insurance scheme in place for the commodities segment. That being said, balances in excess of the SIPC $250,000 cash sub-limit ($900,000 Lloyd’s cash sub-limit, where applicable) are not afforded coverage. Customers of IB Canada and IB UK are also subject coverage rules as specified by CIPF and the FSCS, respectively.
 
3. Interest Income – all other things being equal, customers are likely to receive the most optimal interest income on long cash balances that have not been partitioned between the securities and commodities segments as they are not aggregated for interest credit purposes (since they are subject to distinct segregation pools and reinvestment rules). This, along with the fact that credits require maintenance of a minimum cash balance and that higher balances are afforded preferential rates are factors to be considered when making a sweep election.2
 
Other Relevant Knowledge Base Articles:
A Comparison of U.S. Segregation Models
 
 
Footnotes:
1As OneChicago single stock futures are a hybrid product jointly regulated by the SEC and CFTC, they can be purchased and sold in either account type. IB, however, conducts such transactions in the securities segment of the Universal account as this is necessary to provide margin relief between the single stock future and any qualifying stock or option position.
 
2Consider, for example, an account which maintains a long USD balance of $9,000 in each of the securities and commodities segments. Depending upon the benchmark Fed Funds Effective rate, the account would be eligible to earn interest on $8,000 ($18,000 - $10,000) if the two balances were held in a single segment, but since balances below $10,000 in either of the two segments are not eligible for interest, could not earn anything without electing a sweep option. Similarly, one would be eligible to earn interest at a higher tier if as a result of a sweep election the account holder was then able to achieve a long USD cash balance above $100,000 in a given segment. For additional information regarding interest calculations including a link to current benchmark interest rates, refer to KB39.

 

Securities Account Protection for Interactive Brokers India Customers

Customer accounts domiciled under Interactive Brokers India Pvt. Limited,(IBI) are awarded different account protection services than our IB-LLC and IB-UK clients. There are two major exchanges, the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), each one has established their own guidelines for investor grievances against exchange members and/or sub –brokers.

National Stock Exchange of India (NSE)

The NSE has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of registered Trust created for the purpose. The Investor Protection Fund Trust is managed by Trustees comprising of Public representative, investor association representative, Board Members and Senior officials of the Exchange.

The Investor Protection Fund Trust, based on the recommendations of the Defaulters' Committee, compensates the investors to the extent of funds found insufficient in Defaulters' account to meet the admitted value of claim, subject to a maximum limit of Rs. 11 lakhs (1.1 million USD) per investor per defaulter/expelled member.

Bombay Stock Exchange (BSE)

Currently trading is not offered on the BSE by Interactive Brokers.

Determining SIPC coverage where multiple accounts exist

Multiple accounts maintained in the same name and taxpayer ID number are grouped for purposes of applying the maximum per client protection limits of $500,000 by SIPC and $29.5 million under Lloyd’s supplementary protection. However, if you hold accounts with IBKR in separate capacities (for example, an account in your name, a trust account of which you are the trustee or a beneficiary, or a joint account), then each account would be protected by SIPC and the supplementary protection up to the stated limits.

Links:

Account Protection

SIPC

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