IB Margin Increases Tomorrow Afternoon

Discussion in 'IB Technical Issues' started by JackR, Oct 6, 2008.

  1. JackR


    In the interest of ensuring the continued safety of IB clients, IB is modifying certain margin policies to adjust for the unprecedented volatility in financial markets. The changes will promote reduction of leverage in client portfolios and help ensure that clients’ accounts are appropriately capitalized.

    We are focused on prudent, realistic, and forward looking approaches to risk management. In order to provide the broadest notification to our clients, we will be posting regular announcements to the IB System Status page, http://www.interactivebrokers.com/en/software/systemStatus.php. We strongly encourage all clients to monitor this web page for advance alerts regarding margin policy changes.
    In the interest of ensuring the continued safety of IB clients, IB is modifying certain margin policies to adjust for the unprecedented volatility in financial markets. Please monitor this web page for alerts and updates regarding margin policy changes.

    Stock margin increase (7-8 October 2008)
    The minimum margin requirement for stocks held in regular (non-Portfolio Margin) accounts will increase from 25% to 30%. This will affect all stocks offered by IB globally: US, Canada, Mexico, Germany, UK, Switzerland, Sweden, Spain, France, Netherlands, Belgium, Hong Kong, Australia. The changes are expected as follows:

    * US and Canadian stocks: increases will commence 14:00 EST, Tuesday, 7 October 2008.

    * European and Asian stocks: increases will commence Wednesday, 8 October 2008

    Stocks whose margin already exceeds 30% will not be affected.

    Currency margin increase (7 October 2008)
    The minimum margin requirement for currency positions will increase from 2% to 2.5%. This will have greatest affect on cash/spot foreign currency positions in USD, EUR, AUD, GBP, CAD, CHF. It will also affect portfolios with other asset classes denominated in these currencies as well. For example, if your base currency is USD, and you hold 100'000 EUR worth of EUR denominated stock, the margin requirement relating to the currency component of the portfolio will increase from 2000 EUR to 2500 EUR in addition to any margin requirement for the stock risk itself. This change is expected to go into effect at 16:30 EST on Tuesday, 7 October 2008.

    OK IB bashers - go to it!

  2. cszulc


    If this doesn't signal a bottom I don't know what does. (other than our good old CRAMER of course calling everyone to sell).
  3. They could have done it at any time and they decide to do it when the market reaches a steep bottom :D , and very clever, they give almost no time for people to make adjustments.
    It's not the first time from IB, and instead of bragging about their Risk Navigator feature all year long and instead of changing the terms of a contract when it's better for them maybe they could set the rules once and stick to them.

    IB is a member of FINRA
    you know "investor protection, market integrity". what a joke.
  4. Tums


    no change for futures... mmm...
  5. cszulc


    They already did the obligatory taking away intra-day margins last month.
  6. This is a very modest margin increase.

    Anyone who has a problem with it is clearly an idiot.
  7. rickf


    Funny I saw a few IB commercials on Bloomberg today ... not the 'bouncing balls' one on CNBC talking about cheaper commissions and throwing "blah point blah blah percent" figures out there, but rather a quieter, more professional one aimed at a more serious investor looking for an online broker like an Etrade or Ameritrade.
  8. bxptone


    Yeah but you know the amount of employees they'll have to add to their customer service, if their aiming at the segment of investors lol. Oh boy.

    I only call IB's customer service once every like 2 years and they sound annoyed they have to pick up the phone! Imagine if they get flooded with calls, lol I can see a walk out at IB offices.
  9. you clearly are an idiot, this basicaly renders margin investing using IB a futile endeavour, they are simply not reliable, you can send more money, but what comes next, this is the 5th margin increase affecting me, there is no reason to expect this to be the last.
  10. rtp100


    I agree with you,

    IB is BIG now, that is why they can do what they please

    if they start shrinking, you'll see different policy
    #10     Oct 7, 2008