IBPrime
A C C O U N T    H I G H L I G H T S


IBPrime provides institutions with the ability to execute their US stock and option trades at a broker of choice while clearing with Interactive Brokers. Using Interactive Brokers as your Prime Broker offers our clients the following benefits:

Each away trade is charged the low clearing fee of USD 1.00 per line item. All trades executed away from Interactive Brokers are cleared through the DTC-ID system utilizing Continuous Net Settlement (CNS) or the CMTA system with instructions entered through the Executing Broker.

IBPrime Setup
  1. Client, Executing Broker and Interactive Brokers sign a DTC-ID or CMTA clearing agreement.
  2. Client's Executing Broker (or client) sends Interactive Brokers a file format for communicating executed trades (notification file). Your IB Sales Representative can provide a preferred file format.
  3. Client sets up DTC-ID executing broker instructions (Agent ID, Firm ID, Account ID, and Agent Name). Type is DTC or CMTA, Frequency is On Demand, and either Compressed or Uncompressed trading grouping will work.
  4. Client sets up an FTP account with their IB Sales Representative for transmission of notification files.
  5. Client notifies their Sales Representative when they make their first transaction.
IBPrime Trade Execution for US Stocks
  1. Execute stock trades with executing brokers.
  2. At the end of the trade day the executing broker will send notification to Interactive Brokers.
  3. Transactions are booked into the DTC-ID system by the executing broker.
  4. Transactions received through the DTC-ID system on Trade Date +1 will be credit checked, matched against the notification file, and compared to the DTC-ID executing broker instructions. Those transactions matching the check will be accepted through CNS and marked pending. Margin requirements will be computed on a worst-case basis (all assets settle or fail). Interactive Brokers will notify the executing broker of any rejected transactions.
  5. Transactions are affirmed by Interactive Brokers on Trade Date +1.
  6. The executing broker confirms the transaction. The transactions are locked in at Settlement Date -1 at 10am ET.
  7. Trades settle on the settlement date, three days after the trade date.
IBPrime Trade Execution for US Options
  1. Execute option trades with executing brokers.
  2. At the end of the trade day the executing broker will send notification to Interactive Brokers.
  3. Transactions are booked into the CMTA system by the executing broker.
  4. Transactions received through the CMTA system on Trade Date +1 will be credit checked and matched against the CMTA executing broker instructions. Those transactions matching the check will be accepted into the client account, and those that fail will be sent back through the CMTA system to the executing broker.