How Interactive Brokers Protects Its Customers' Assets
First, for cash in your IB account, IB is subject to strict "reserve" and "segregation"
requirements imposed by the Securities and Exchange Commission ("SEC") and the Commodity
Futures Trading Commission ("CFTC"), under which cash in IB customer accounts is kept in
segregated accounts that are separate from the proprietary assets of IB. IB is required to
perform daily (CFTC) and weekly (SEC) calculations to ensure that the proper amount of
customer funds is set aside in these separate accounts.- As of mid-2009, IB customer cash is held to a large extent in deposits with multiple large banks,
U.S. Treasury bills, FDIC-backed corporate bonds and federally-approved AAA rated money
market funds (less than 2% of customer assets) -- all subject to continual review by IB's senior
management. The majority of the bank deposits are held with JP Morgan, Deutsche Bank
and Bank of America, and to a lesserextent with Citibank, HSBC, Royal Bank of Canada and
U.S. Bank.
- 100% of customer stock not held on margin is held in segregated depository accounts at The
Depository Trust Company in the U.S. or, outside the U.S., in equivalent "good control locations"
under SEC rules. Again, this stock is separate from the proprietary stock positions of IB or its
affiliates and cannot be used for any purpose other than for customers, and is not subject to any liens.
To get to know more, please visit How Interactive Brokers Protects Its Customers' Assets
