GREENWICH, Conn. & MONTRÉAL--(BUSINESS WIRE)--
Automated program enables clients to earn income by lending shares
Interactive Brokers Group, Inc. (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.