Automated program enables clients to earn income by lending shares
GREENWICH, Conn. & MONTRÉAL–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24IBKR&src=ctag” target=”_blank”gt;$IBKRlt;/agt; lt;a href=”https://twitter.com/hashtag/IBKR?src=hash” target=”_blank”gt;#IBKRlt;/agt;–Interactive Brokers Group, Inc. (IEX:IBKR) today announced that
Interactive Brokers Canada (IBC) clients participating in its Stock
Yield Enhancement Program can now lend Canadian fully-paid shares of
stock as part of the program. This first to the market service gives IBC
clients the opportunity to lend their Canadian shares to IBC in exchange
for a portion of the interest borrowers are willing to pay to borrow the
shares.
IBC cash accounts with equity equivalent to US $50,000 and all IBC
margin accounts are eligible to participate in the new program.
Enrollment is easily completed online and program activation generally
takes place overnight. After enrolling, IBC handles all program
activities with no restriction on a client’s ability to trade their
shares.
“At Interactive Brokers we strive to offer clients ways to make and save
money,” said Jean-François Bernier, Managing Director at Interactive
Brokers Canada. “In addition to being the only broker in Canada to offer
a securities lending program, we provide complete transparency about the
market rate and gross amount earned from each transaction.”
IBC clients can monitor in real-time indicative rates by configuring
their Trader Workstation platform to display the Fee Rate column.
Clients can also search IBC’s
list of shortable Canadian stocks on the IB Canada website.
While the stock is loaned, clients maintain the ability to sell their
stock anytime, and continue to recognize any profits and losses. Stocks
listed on US or Canadian exchanges can be loaned.
Interactive Brokers uses its highly automated systems to identify the
shares in client accounts which others are attempting to borrow. The
company credits loan income to clients and provides daily activity
statements detailing the quantity of shares loaned, collateral amount,
market interest rate, IBC charges and net interest.
At the end of each day, IBC pays the client half of the gross amount
earned by IBC from lending the shares to borrowers and retains half as
compensation for coordinating the program and guaranteeing the return of
the shares.
Interactive Brokers has operated its Stock Yield Enhancement Program in
the United States since 2011 and in Canada (for US stocks) since 2017.
Additional information about Interactive Brokers’ Stock Yield
Enhancement Program is available here.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution
and custody of securities, commodities and foreign exchange around the
clock on over 120 markets in numerous countries and currencies, from a
single IBKR Integrated Investment Account to clients worldwide. We
service individual investors, hedge funds, proprietary trading groups,
financial advisors and introducing brokers. Our four decades of focus on
technology and automation has enabled us to equip our clients with a
uniquely sophisticated platform to manage their investment portfolios at
the lowest cost according to Barron’s Best Online Brokers review,
February 25, 2019. We strive to provide our clients with advantageous
execution prices and trading, risk and portfolio management tools,
research facilities and investment products, all at low or no cost,
positioning them to achieve superior returns on investments.
Contacts
For Interactive Brokers Group, Inc.
Investors: Nancy Stuebe,
203-618-4070
or
Media: Kalen Holliday, 203-913-1369 [email protected].
