Interactive Brokers is hypothecating my fully paid shares between the date that I buy and the settlement date. Does anyone know any rules on this? My understanding is that they cannot hypothecate the shares at all unless I owe margin. This is problematic for me because I am sometimes buying the day before the ex-div which according to the SEC gives me the right to the div. IB is loaning out my shares so that on the record date, someone else has them and I get a payment in lieu. Then I have to pay a higher tax rate. Regardless, I object to IB loaning out my shares for their profit when I have fully paid for them.