The regulation of securities and commodities products and brokers in the U.S. is administered by two distinct federal agencies: the Securities and Exchange Commission (SEC) for securities including stocks, ETFs, bonds, options and mutual funds and the Commodities Futures Trading Commission (CFTC) for commodities including futures and options on futures. While both agencies seek to safeguard customer assets by restricting their use and “segregating” them from the assets of the broker, the regulations and manner in which they accomplish this differs. Find an overview of the two segregation models and additional considerations relating to IBKR accounts in our Knowledge Base.
Where can I find more information on the U.S. segregation models of SEC and CFTC?
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Margin treatment for foreign stocks carried by a U.S. broker
As a U.S. broker-dealer registered with the Securities & Exchange Commission (SEC) for the purpose of facilitating client securities transactions, IB LLC is subject to various regulations relating to the extension of credit and margining of those transactions. In the case of foreign equity securities (i.e., non-U.S. issuer), Reg T. allows a U.S. broker to extend margin credit to those which either appear on the Federal Reserve Board's periodically published List of Foreign Margin Stocks, or are deemed to have a have a "ready market" under SEC Rule 15c3-1 or SEC no-action letter…
Comparison of U.S. segregation models
INTRODUCTION
The regulation of securities and commodities products and brokers1 in the U.S. is administered by two distinct federal agencies, the Securities and Exchange Commission (SEC) for securities including stocks, ETFs, bonds, options and mutual funds and the Commodities Futures Trading Commission (CFTC) for commodities including futures and options on futures…
What is the commodities segment of my account?
For accounts contracted by the triparty agreement and carried by IBLLC, the account has two segments: securities segment and commodities segment. The regulation of securities and commodities products and brokers in the U.S. is administered by two distinct federal agencies, the Securities and Exchange Commission (SEC) for securities including stocks, ETFs, bonds, options and mutual funds and the Commodities Futures Trading Commission (CFTC) for commodities including futures and options on futures. Please see…
Why is interest not payable on cash held in the commodities segment of my account?
For accounts contracted by the triparty agreement and carried by IBLLC in the US the account is authorized to trade both securities products and commodities/futures products and therefore consists of two underlying accounts or account segments: a securities account ("IBKR securities") governed by rules of the U.S. Securities and Exchange Commission (SEC) and a futures account ("IBKR futures") governed by rules of the U.S. Commodity Futures Trading Commission (CFTC)…