Why did we introduce the Margin Financing Charge?

The Margin Financing Charge is calculated as follows:

• For the portion of the statutory margin requirement covered by HKD cash, the charge is computed using a rate equal to the difference between the HKD credit interest rate for the respective entity and the clearinghouse rate. The statutory margin requirement below HKD 78,000 covered by HKD cash would not be charged…

Interactive Brokers may deposit cash to cover margin requirements for positions held in Hong Kong Futures Exchange (HKFE) or Hong Kong Stock Exchange (SEHK) contracts. The interest earned on that cash may be less than what is earned on other investments. To account for this difference, Interactive Brokers computes a Margin Financing Charge. This is a monthly charge in HKD that accrues on overnight HKFE and SEHK margin balances. To the extent that an account holds sufficient HKD cash to cover the margin balance, the charge is computed using a rate equal to the difference between the HKD credit interest rate and the rate that Interactive Brokers earns on margin deposits. The remaining margin balance, if any, is charged at a rate equal to the difference between the standard HKD benchmark rate and the rate that Interactive Brokers earns on margin deposits…

Interactive Brokers Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission, and is a member of the SEHK and the HKFE.

Registered Office: Suite 1512, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong SAR…

Derivative products on SEHK and HKFE, which include stock options, index options and futures, are subject to the Margin Financing Charge. If you only trade stocks, you are not subject to the charge.

Additional Information…