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TMCNet:  Interactive Brokers Canada Launches Stock Yield Enhancement Program

[April 04, 2017]

Interactive Brokers Canada Launches Stock Yield Enhancement Program

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.


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