What are IBKR Notes?

IBKR notes are short term debt securities issued periodically by IBG LLC. Interactive Brokers LLC (IB), a broker-dealer affiliate of IBG LLC is the sole placement agent for the Notes. The U.S. dollar denominated Notes are issued at face value in $1,000 increments and the minimum subscription is $10,000. The Notes mature no later than the 30th day following issuance but may be redeemed sooner. The Notes pay a fixed rate of interest, which is set by adding a spread to the effective Federal Funds rate as reported by the New York Federal Reserve Bank on the morning of the date the Notes are sold to the purchaser. The minimum Rate is 0.50% per annum, and all interest is due and payable upon the earlier of the date of redemption or maturity of the Notes.

Who is eligible to invest in IBKR Notes?

Clients who are Accredited Investors are eligible to subscribe to IBKR Notes. If you are interested in further information about this private placement, you may confirm your Accredited Investor status and access the restricted IBKR Notes Program section of the Client Portal, which contains the confidential Offering Memorandum, Subscription Agreement and other information about the IBKR Notes Program.

Only US persons will be able to participate at this time.

Additional Information

• How do I know if I am an Accredited Investor?

Where can I sign up for IBKR Notes?

SIGN UP FOR IBKR NOTES

Qualified clients can use the button above or follow the below procedure to request to participate in the IBKR Notes program:

1. Log in to Client Portal
2. Select Settings followed by Account Settings
3. In the Configuration section, next to Invest in IBKR Notes, you can see your account’s enrollment status in the program.
4. If you are not enrolled, you can sign up by clicking the Configure (gear) icon next to Invest in IBKR Notes.
5. You must read the agreement, sign your name, and click Submit to enroll.

How are the rates determined for IBKR Notes?

The issuer sets the interest rate for each Notes issuance at its discretion. The minimum interest rate for a Notes issuance is 0.50%. When there is a new Notes issuance, IBG LLC announces a Spread rate at least two days in advance. The Interest Rate on the Note is the Spread Rate plus the Benchmark Rate, which is the Federal Funds Rate on the morning of the new issuance.

Can I choose which IBKR Notes to invest in?

Yes. So long as you are enrolled in the IBKR Notes Program and have indicated via the Client Portal your intention to participate in future Notes Program issuances, you have a standing order to automatically purchase Notes from the Issuer, if and when offered by the Issuer, with free credit balances in your IBKR account (the “Free Cash Balance” is generally defined as cash in your IBKR account in excess of margin requirements and short stock value). IBKR provides controls to allow you to place parameters on your standing order, including, a maximum amount of Notes to purchase (in dollars) and a minimum Free Cash Balance to leave in your account after purchasing the Notes.

What are the minimum and maximum investment sizes for IBKR Notes?

Investors must purchase a minimum of $10,000 in aggregate principal amount of Notes and may not purchase more than $25,000,000 in aggregate principal amount. Notes are issued only in book-entry form, in denominations of $1,000 and integral multiples of $1,000.

Can IBKR Notes be redeemed early?

The Notes are redeemable prior to maturity only at the option of the Issuer. If the Issuer redeems the Notes prior to maturity, you will receive a notice of redemption. The principal and accrued and unpaid interest to and excluding the date of redemption will be credited to your IBKR account. Notes holders do not have the option to redeem their Notes holdings early.

Can I change my investment preferences in IBKR Notes?

Yes, you may change your Maximum Investment Amount and Minimum Uninvested Cash amount at any time by notifying us through Client Portal. You may also temporarily or permanently suspend your participation by setting the “Invest in All Upcoming Notes” preference to Off.

If you suspend your participation in the Notes Program, IBKR will not sell you Notes during any future issuances, but you will continue to hold existing Notes in your account until the earlier of their maturity or redemption. You may re-activate your participation in the Notes Program though the Client Portal at any time by setting the “Invest in All Upcoming Notes” preference to On.

Can I terminate my participation in the IBKR Notes program?

You may terminate your participation in the IBKR Notes Program at any time by notifying us through the Client Portal. IBKR may also terminate your participation in the Notes Program at any time and for any reason, including if you no longer meet the eligibility requirements or if you do not reaffirm that you meet such requirements upon our request. If your participation in the program is terminated, IBKR will not sell you Notes in any future issuance, but you will continue to hold existing Notes in your account until the earlier of their maturity or redemption. In addition, you will not be permitted to re-activate your participation in the Notes program without re-enrollment.

How are IBKR Notes reported on my Activity Statement?

IBKR Notes will be reported like a Bond on your Activity Statement. You will see Bond activity in various sections of your statement including the Performance Summary, Open Positions, Trades, and Financial Instrument Information sections. During the holding period, accrued interest is not reflected on the statement. Interest payments will be reflected upon redemption or maturity.

What happens if an IBKR Notes offering is oversubscribed?

In the event that an IBKR Notes offering is oversubscribed, IBKR will allocate notes to potential investors at its sole discretion. There is no guarantee that any potential investor, including you, will be allocated Notes.

Will the returns for IBKR Notes be included in Portfolio Analyst?

Yes, returns for IBKR Notes will be included in your Portfolio Analyst reports.

Are Notes Transferable?

No. Notes cannot be transferred between accounts at IBKR or to an external account. Notes must remain in the account they were initially allocated to until they mature (unless redeemed early by IBKR).

What happens if I close my account before my IBKR Note matures?

Clients must hold the Notes until they mature (unless redeemed early by IBKR). If you would like to close your account while you hold Notes, you may submit a close account request and request a transfer of your assets. However, Notes are non-transferrable, and the account will remain open until the Notes have matured and all assets have been transferred out of your account. During this period, account fees and charges may continue to apply. Please contact Customer Service should your account closure request be pending due to an existing Notes position before processing.

Can an advisor invest in IBKR Notes on behalf of their clients?

Yes. Advisors with trading discretion over their client accounts can invest in IBKR Notes on behalf of eligible clients through the IBKR CRM.

Are IBKR Notes included in the Net Liquidation Value calculation for fee-based advisor clients?

Yes. The value of the IBKR Notes in an IBKR account will be included in the calculation of Net Liquidation Value (NLV) fees. Interest will also be included in the calculation.

If I place a trade that uses the minimum required spare cash to invest in IBKR Notes, will my notes be liquidated?

The minimum spare cash requirement to invest in IBKR Notes is checked only when placing the initial Notes investment. It is not required to be maintained while the Note is outstanding.

Are IBKR Notes included in my Equity with Loan Value?

Yes, IBKR Notes are included in calculating your Equity with Loan Value.

If my account is in a margin deficit, will IBKR liquidate IBKR Notes?

If your account is in a margin deficit, IBKR will not liquidate your investment in IBKR Notes.

Additional Information

• How do you choose what to liquidate and why?

Where can I find the IBKR Notes Offering Memorandum?

The IBKR Notes Offering Memorandum is available at the time of enrollment as well as within the IBKR Notes page in the Client Portal. You may access this page by selecting Settings followed by Account Settings and Invest in IBKR Notes within the configuration section, and clicking the download Offering Memorandum link.

Are IBKR Notes marginable?

No. IBKR Notes are non-marginable and are ineligible for use as margin collateral. Additionally, the Initial Purchase will be capped to the USD cash balance in an account. An investment in IBKR Notes is not allowed if the purchase causes a USD debit balance.

Does the interest rate on an IBKR Note vary by amount invested?

No. All holders of a specific Note receive the same interest rate regardless of their individual investment amount.

How liquid are IBKR Notes?

The Notes are illiquid. No public market exists for the Notes. They are non-transferable and cannot be traded.

Are IBKR Notes “cash equivalents”?

No. IBKR Notes are illiquid short term debt investments. Cash equivalents generally are highly liquid instruments which are readily convertible into known amounts of cash.

How often are IBKR Notes issued?

Notes are issued at the discretion of the issuer.

What is the notice period for new IBKR Notes issuances?

There is a two-day notice period prior to newly issued Notes being allocated to your account. For example, if a new issuance notification is sent on Monday, the Note will post to your account on Wednesday evening. Interest begins accruing on settlement date (T+1), which would be Thursday.

How is interest calculated for IBKR Notes?

IBKR conforms to international standards for day-counting when calculating the interest paid on IBKR Notes.

IBKR utilizes the 30/360-day count convention, which means that interest income is determined based on a 360-day year. The actual number of calendar days each Note will be outstanding for is 30. But the number of days which accrue interest may be greater or lesser than 30 based on the specific time period Notes are issued, redeemed or mature.

Are Notes insured by SIPC, FDIC or any other entity?

No, the Notes are not insured by SIPC, FDIC or any other entity.

Any information provided about the IBKR Notes Program by Interactive Brokers LLC should not be construed as a solicitation or recommendation of any investment product. Each investor should review and determine independently whether or not IBKR Notes is suitable for them to invest in. In addition, all investors interested in IBKR Notes should review the details and associated risks found within the offering memorandum, accessible through the Client Portal.

Who will the sanctions apply to?

Currently, the sanctions only apply to "U.S. persons." A U.S. person includes, "any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States." The definition of U.S. Persons includes IBKR clients who are resident in, citizens of or incorporated in the U.S, or owned by U.S. persons.

What restrictions will the sanctions place on IBKR Customers who are U.S. Persons?

U.S. Persons may not buy any of the sanctioned securities after the effective date of the sanctions-February 1, March 9, or March 15 as listed below-unless the purchase is to close an existing short position. They may close existing positions in these securities up until June 2, 2022 assuming the listing exchanges offer trading and the clearinghouse will settle the trades. In recognition of these actions, opening orders and inbound transfers of sanctioned securities will not be accepted, effective immediately.

What types of securities do the sanctions cover?

The sanctions cover all securities, including stocks, bonds, warrants, options and other derivatives such as ADRs. The sanctions also cover ETFs, index funds and mutual funds that include the CCMC securities.

What individual securities are subject to the sanctions?

As we noted above, sanctions on the first wave of CCMC securities went into effect on January 11, 2021. We have listed below all of the CCMC issuers whose securities are subject to sanctions and the effective date of those sanctions.

CCMC Securities

We will provide you with an update if the U.S. government issues additional guidance.  For reference, the U.S. Executive Order announcing the sanctions is available here and guidance provided to date is available here. 

Lista delle cose da fare:

Prima di impostare le Restrizioni IP, verifica di avere svolto quanto elencato qui di seguito:

• Conoscere il tuo indirizzo WAN IP. Si tratta dell'indirizzo IP esposto sul lato esterno (Internet) della tua rete ed è diverso dal tuo indirizzo IP locale (anche noto come indirizzo LAN IP). Se fai trading da un ufficio appartenente ad una data azienda, puoi chiedere al dipartimento IT o Reti Informatiche maggiori dettagli sull'indirizzo WAN IP del tuo computer. Se ti colleghi a Internet attraverso una connessione privata a banda larga/via cavo/satellite puoi ottenere questa informazioni dal tuo ISP (Internet Service Provider, ossia il tuo provider).
• Assicurati che il tuo indirizzo IP sia statico. Il tuo indirizzo IP rimarrà sempre lo stesso e non cambierà riavviando il router/modem e subirà variazioni dopo un certo periodo di tempo. La stessa entità che ti ha fornito l'indirizzo WAN IP potrà inoltre fornire chiarimento per capire se il tuo indirizzo sia statico o dinamico.
• Ti ricordiamo che le Restrizioni IP non saranno immediatamente attive. I nostri sistemi applicano i filtri durante il riavvio giornaliero che avviene durante la notte. L'attivazione di questa misura alternativa potrebbe diventare effettiva nell'arco di 24 ore. Molto dipenderà dall'orario relativo a quando hai inviato la richiesta per le Restrizioni IP. Lo stesso varrà per eventuali modifiche o per la rimozione di Restrizioni IP esistenti. Ti invitiamo a tenere conto di questi aspetti quando pianifichi di eseguire delle operazioni relative a questo tipo di restrizioni.
• Le Restrizioni IP verranno applicate a TUTTE le piattaforme di trading offerte da IBKR. L'accesso al Client Portal non sarà vincolato a queste restrizioni. Sarà infatti possibile accedere al Client Portal da qualunque indirizzo IP.

Note:

Ti invitiamo a tenere conto del fatto che resta possibile clonare o riprodurre l'indirizzo IP di un utente. Per una protezione completa del conto è garantita solo attraverso l'Autenticazione SAS a due livelli (ibkr.com/sls).

In caso di domande su questo argomento, potrai contattare in qualunque momento il Centro di Assistenza tecnica di IBKR.

Come impostare le Restrizioni IP:

1. Accedi al Client Portal e clicca sull'icona del menu
2. Dal menu clicca su Impostazioni e successivamente su Impostazioni Utente. Quindi clicca sull'icona rotellina (configura) accanto a Restrizioni IP.
   
3. Comparirà una breve descrizione sugli effetti delle Restrizioni IP. Per impostare una nuova Restrizione IP clicca su Aggiungi Restrizione IP.
   
4. Seleziona la voce Trader dal menu a tendina e inserisci l'Indirizzo IP per il quale desideri consentire l'accesso (nel formato xxx.xxx.xxx.xxx) . Quindi clicca su Continua.
   
5. Se hai effettuato l'accesso al Client Portal senza usare l'autenticazione a 2 livelli, riceverai una email¹ che contiene un Numero di Conferma. Inserisci il numero ricevuto nel campo Numero di Conferma . Una volta completato questo passaggio, clicca su Continua per inviare la richiesta. Se hai effettuato l'accesso al Client Portal utilizzando un dispositivo di sicurezza, prosegui direttamente al punto 6.
   
6. Se l'operazione è andata a buon fine, comparirà un messaggio di conferma sullo schermo. Clicca su OK.
   
7. Adesso il sistema mostrerà l'elenco delle Restrizioni IP attive. Se desideri aggiungere un'altra restrizione, clicca di nuovo su Aggiungi Restrizione IP, in caso contrario puoi lasciare questa sezione.
   

Rimozione e Restrizioni IP per i trader di Penny Stocks:

I clienti che hanno scelto di non usare il SAS (Sistema di Accesso Sicuro) e che quindi utilizzano l'Autenticazione a due livelli solo per il Client Portal, devono attivare le Restrizioni IP in modo da poter attivare i permessi relativi al trading di Penny Stocks.

Ulteriori pratiche virtuose per proteggere il tuo computer e la tua rete: 

• Quando accedi a TWS, attiva l'opzione “Utilizza SSL” dalla schermata di accesso. L'SSL (Secure Socket Layer) garantisce che tutte le informazioni scambiate tra il tuo computer e i server siano protette tramite criptaggio a 128 bit .
• Usa un firewall per prevenire accessi non autorizzati ai servizi non protetti sul tuo network e/o computer. Quando stabilisci le impostazioni del firewall, assicurati di autorizzare l'host/le porte elencate nella sezione DESKTOP TWS dell'articolo KB2816.
• Usa un software antivirus per identificare ed eliminare virus che potrebbero infettare il tuo computer.  Dato che nuovi virus vengono creati di continuo, è importante aggiornare regolarmente il database delle minacce del tuo software antivirus.
• Ti consigliamo di usare un software anti-malware per identificare e rimuovere programmi spyware/malware. Attualmente molte soluzioni antivirus includono una protezione contro i malware.
• Evita di accedere a connessioni wireless pubbliche (Wi-Fi), non protette o che non coincidono con quelle del tuo operatore. Nel caso sia necessario ricorrere ad una rete non protetta (ad es. una postazione Wi-Fi pubblica) ti suggeriamo di non accedere a qualunque conto di tua proprietà presso delle istituzioni finanziarie, incluso il tuo conto IBKR.