Print Friendly

	Create a PDF of this page for easy printing or saving.

Interactive Brokers offers an Execution Account for those institutional clients who wish to execute their trades with IB and clear with another broker. The IB Execution Account offers the following benefits:

• Automatic DTCID or CMTA give-ups of all stock and option trades in the US.
• The ability to execute trades for options, futures, stocks, forex and bonds from a single interface.
• Single account or master account with multiple sub accounts.

Customers have the choice of applying for an IB guaranteed credit line and/or depositing cash or treasuries to cover trades during the settlement period. Guaranteed credit lines are based on the following guidelines:

• 0.25% of Net Asset Value Under Management.
• Minimum Net Asset Value Under Management for consideration is $20 million.
• Limits could be increased with the deposit of cash or treasuries as collateral.

Under the guidelines an institution with $100 million would have a credit line of $250,000.

Trades are executed through the Trader Workstation and credit managed utilizing Reg T or Portfolio Margin requirements as with a cleared account during the settlement period. You may not withdraw funds against your IB credit line.All executed trades are then available for US stock (DTCID DVP/RVP) or US option/single stock future transfer (CMTA). Transfers may be accomplished in one of two ways:

• Standing, where all trades in the account are automatically given up for execution.
• On Demand, in which you manually specify which trades you want to give up. The following picture shows the On Demand Screen available through the Trader Workstation.

Funds must be available at the time of settlement. Executions will be reflected in the TWS Executions window and transfers in progress will be displayed in the DVP in Transit (or CMTA) section of the Account Window.

For more information on transfers see the TWS Users' Guide.

1. Client applies for a credit line and/or deposit funds.
2. Client, Interactive Brokers, and the clearing broker sign a DTC-ID or CMTA agreement.
3. Client sets up DTC-ID or CMTA executing broker instructions (Agent ID, Firm ID, Account ID, and Agent Name). Type is DTC or CMTA, Frequency is On Demand or Standing, and grouping is Compressed or Uncompressed.
4. Client sets up an FTP account with their IB Sales representative for the deposit of notification files.

1. Executive stock trades with Interactive Brokers
2. Interactive Brokers will make a notification report of all trades available to the client.
3. Transactions are booked into the DTC-ID system by Interactive Brokers.
4. Trades are credit managed against the IB credit line and/or cash in the account.
5. Clearing broker affirms the trades.
6. Interactive Brokers confirms the trades.
7. Trades are locked in at settlement date -1 and margin is no longer required.
8. Trades settle on settlement date, three days after the trade date. Funds for settlement must be available at this time.

1. Execute stock trade with Interactive Brokers.
2. Interactive Brokers will make a notification report of all trades available to the client.
3. Transactions are booked into the CMTA system by Interactive Brokers.
4. Trades are credit managed against the IB credit line and/or cash in the account.
5. Clearing broker settles the trade on Trade Date +1 and margin is no longer required. Funds for settlement must be available at this time.