Registered: Aug 2002
04-03-12 10:45 PM
Quote from Options12:
You trade via IB's Canadian subsidiary? If so, then your futures and futures options should be covered by CIPF. Please let us know what CIPF says in their response to your inquiry.
However, IB's Canada page does still suggest your cash swept from your commodities account may be SIPC covered, so please let us know what SIPC says regarding that issue.
In addition to CIPF coverage, customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically so as to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.
I got a response from CIPF -- they did say that futures are indeed covered which is complete shock to me but a very pleasant surprise.
Here is their full response
"CIPF coverage applies to any combination of assets, including futures and options, as long as it is held in an account at a CIPF Member. For a list of our current Members, please visit our website at http://www.cipf.ca/Public/MemberDir...ntMembers.aspx.
CIPF does not cover customer losses that result from changing market values of securities, unsuitable investments, or the default of an issuer of securities.
CIPF covers eligible customers, within defined limits, of Members who have suffered or may suffer financial loss solely as a result of the insolvency of a Member. Such loss must be in respect of a claim for the failure of the Member to return or account for securities, cash balances, commodities, futures contracts, segregated insurance funds [or other property] received, acquired or held by the Member in an account for the customer. "