Hi, through IB account management this only shows up in the daily account statement for me, not if I check several days statement, under the : Collateral for Customer Borrowing I get Securities Segregated Securities Not Segregated Securities Not Segregated: Third Party "Right to Use" Securities Not Segregated: Subject to Stock Yield Enhancement Program My understanding is the securities included in Securities Not Segregated: Third Party "Right to Use"are loaned by IB yet I don´t get a share of the income from that loan. Everytime I check, not so often to be fair, that part shows several 100Ks worth of stocks. I don´t quite get it as afaik all shares are supposed to be paid for by cash, and I do get paid daily interests on idle cash balance by IB. Probably related when i wired out funds recently, on sevral occasions, the system showed me I could only withdraw a small amount before using margin, less than margin requirement and cash available would indicate. I´ve only withdrawn smallish amounts in that period anyway, nowhere the several 100Ks showing up under Securities Not Segregated: Third Party "Right to Use" and I´ve constantly seen interest accrual paid on iddle cash balance. Anyone could shed some light on the issue ? That means I don´t get paid on the first few 100ks loaned, and i seldom see much more than that loaned out Thanks !
I am not an IB customer, but the industry practice known as Hypothecation and Re-hypothecation is what you are referring to. Stock available for shorting is a simple example. There are others. HTH
Also futures, I thought I was familiar with the future margin requirements, which must be deducted from the cash balance, but IB would pay interest on cash balance only if the cash was superior to futures margin requirements. A bit confused here, I also hold quite a bit of Tbill, could buy less of those as well, might be worth it getting paid a bit less on idle cash than on Tbill but more on loaned stocks (can´t figure out how much I should sell either, the margin numbers coming up when I wire money out are way different than the amount in : Thirt party right toi use). The way I understand it, is if some hard to short stock is loaned out, IB would put it in Securities Not Segregated: Third Party "Right to Use" and I wouldn´t get paid anything. Tiddlywinks, thanks for your reply, I need to read about hypothecation, but not sure it would explain the margin problem here (it might well do just tyhat, will try to have look later on today) As anyone checked the Collateral for customer borrowing part of their account statement ? Does it make sense to them ?
The answer to all your questions can be found in this topic: https://www.elitetrader.com/et/thre...ositions-are-no-stocks-are-being-lent.330722/
If you’re trading futures it is possible that you have a positive cash position but at the same time that you have a loan outstanding. IB does not take the futures maintenance margin from your cash position, but keeps track of it separately. The result can be that you, unknowingly, buy stocks on margin. It is a confusing topic as the margin value is not easily visible.
Do you have short options positions? The conclusion in the thread qwerty11 mentioned was basically that your net liquidation value has to cover the value of your long positions plus the margin requirement of your short positions. Another I can think of is the setting in account management for sweeping funds between your securities and futures subaccounts. Sweeping to securities might help. FWIW, IB's docs say "this section will only appear on accounts affected by the European Alternative Investment Fund Management Directive (AIFMD)." That's too bad; it's something I'd like to be able to see as well.