Interactive Brokers Group, Inc. (NASDAQ GS:IBKR) today
announced Interactive Brokers Canada has launched a Stock Yield
Enhancement Program. The program provides clients with the opportunity
to earn additional income on shares they own by lending those shares to
Interactive Brokers Canada (IBC) in exchange for a portion of the fees
short sellers are willing to pay to borrow them.
Clients with USD 50,000 or more held at IBC in any cash or margin
account are eligible to participate in the new program. Clients can
enroll easily online and activation generally takes place overnight.
After clients enroll, IBC handles all program activities.
"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 contrast to the securities lending programs others
offer, we provide complete transparency about the market rate and gross
amount earned from each transaction."
Clients maintain full control of their stock, can sell anytime, and
continue to recognize any profits and losses. Stocks listed on U.S.
exchanges can be loaned.
Interactive Brokers uses its highly automated systems to identify the
shaes in client accounts which short sellers 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 fee rate, IBC charges and net fees.
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.
The Canadian program is modeled after a Stock Yield Enhancement Program
Interactive Brokers introduced in the United States in 2011. More
information on Interactive Brokers' new 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 IB Universal Account? to customers 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 customers with a
uniquely sophisticated platform to manage their investment portfolios at
extremely low cost relative to the financial services industry. We
strive to provide our customers with advantageous execution prices and
trading, risk and portfolio management tools, research facilities and
investment products, all at unusually low prices, positioning them to
achieve superior returns compared to our competitors. Established in
December 2000, Interactive Brokers Canada Inc. is a member of the
Interactive Brokers Group.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170404005186/en/
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