The interest income which a client receives in exchange for shares lent through the Stock Yield Enhancement Program depends on the market-based rate. The market-based rate is determined by taking into account the rates on shares IBKR has loaned to or borrowed from others, and third-party market data. The rate can vary significantly, not only by the particular security loaned but also by the loan date. To determine the customer’s portion of these fees, the market-based rate (%) is applied to the loan collateral. The resulting amount is then split equally between IBKR and the client. IBKR is allocated a portion of the amount in exchange for initiating, managing, and terminating transactions.
For example, assume loan collateral of $10,000 and an annualized market-based rate of 15%. The daily interest accrual would be $2.08 accrual
Warning: These figures are estimates only. They are not a reliable guide to the future performance of this program.