Why am I required to obtain employer approval to open an account?

In order for an employer to be set up to receive duplicate statement information, you will need to have them prepare a FINRA Rule 3210 (formerly NYSE Rule 407) letter which confirms your employment and which serves as their request to receive duplicate statements and trade confirms. The Form 407/Employer Email can be downloaded and then uploaded on your account using the…

As a US registered broker-dealer, we are subject to Regulation SHO, a collection of US Securities & Exchange Commission rules relating to short-selling of equity securities. Rule 204 of Regulation SHO places certain requirements on clearing brokers in the event that they fail to deliver securities on settlement date in connection with a sale of those securities. This can happen for a variety of commonplace operational reasons, and does not indicate a problem at the clearing broker. In certain circumstances, Rule 204 may require a clearing broker to not permit shorting a security for a certain period of time (unless sufficient shares of that security are pre-borrowed to cover the order marked as a short sale)…

FINRA Rule 3210 (formerly NYSE Rule 407) requires that certain employees of financial institutions obtain written consent from their employer prior to opening an account in which the employee maintains a beneficial interest and through which securities transactions may be effected. The rule also places certain requirements upon the executing broker to transmit duplicate copies of confirmations and statements to the employer…

An open market purchase refers to a securities transaction which takes place in the secondary market on a registered securities exchange.  IBKR may ask for documentation establishing that a security was obtained via an open market purchase transaction if a client attempts to transfer a low-priced security to their IBKR account from another broker or transfer agent. The document may consist of a brokerage statement or confirmation evidencing the purchase and its purpose is to ensure that the securities have been properly registered and can be sold without restriction…