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 for 10 months after the date the sanction became effective-i.e., December 1, January 9, or January 15-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. 

準備清單：

開始設置IP限制前，您需要：

• 知道自己的WAN IP地址。這是您暴露在外部網絡（因特網）的IP地址，不是本地IP地址（也叫LAN IP地址）。如果是使用公司網絡交易，您可向IT或網絡部門詢問電腦的WAN IP地址。如果是通過私人寬帶/電纜/衛星連接因特網，則您可從網絡服務供應商處獲取此信息。
• 確保您的IP地址為靜態IP地址。這意味著您的IP地址始終保持不變，路由器/貓重啟後也不會改變。為您提供WAN IP地址信息的部門/ 人士可以告訴您IP地址是靜態還是動態。
• 注意，IP限制不是立即生效的。我們的系統會在每日夜間重啟時應用此類條件設置。該等限制最長需要24小時才會生效，具體取決於您提交IP限制請求的時間。修改和移除現有IP限制也是一樣。計劃設置此類限制時請務必考慮這一時間因素。
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注意：

請注意，技術上可以對IP地址進行篡改，因此，只有SLS雙因素驗證（ibkr.com/sls）能夠為賬戶提供全方位保護。

如果對此有任何疑問，請聯繫IBKR的技術支持中心。

如何設置IP限制：

1. 登錄客戶端，點擊左上角的菜單圖標。
2. 從左側菜單欄點擊設置>使用者設置。然後點擊IP限制旁邊的齒輪（配置）圖標。
   
3. 您將會看到IP限制的簡要介紹。要設置新的IP限制，點擊添加IP限制。
4. 從下拉列表選擇交易者，然後輸入您想為其開放的IP地址（格式：xxx.xxx.xxx.xxx）。然後點擊繼續。
5. 如果登錄客戶端時沒有使用雙因素驗證，這時您會收到一封包含確認碼的郵件¹。將其輸入到確認碼框內。完成後，點擊繼續提交請求。如果登錄客戶端時使用了安全設備，請直接進入第6條。
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仙股交易者IP限制：

選擇退出SLS、只對客戶端使用雙因素驗證的客戶必須啟用IP限制才能激活仙股交易許可。

保護您電腦和網絡的其它最佳做法： 

• 登錄TWS時，在登錄界面勾選“使用SSL”。SSL（安全套接字層）可確保您電腦和我們的服務器之間交換的所有信息均採用128位加密予以保護。
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