Does IB "Stock Yield Enhancement Program" presents additional risks to the client?

Discussion in 'Interactive Brokers' started by Daal, Dec 9, 2011.

  1. Daal

    Daal

    http://institutions.interactivebrok...ockYieldEnhancementProgram.php?ib_entity=inst

    "This plan allows IB to borrow shares from you in exchange for cash collateral, and then lend the shares to traders who want to sell them short and are willing to pay a fee to borrow them. Each day that your stock is on loan, you will be paid a loan fee based on market rates. You share a percentage of this with IB (currently 50%) as a fee for managing the program."

    I wonder if that affects the SPIC insurance in anyway and what kinds of risks does IB take on when they do this transaction
     
  2. DAV

    DAV ET Sponsor


  3. IB ?