"IB-UK vs US?" & "CFTC & SEC Customer Protection, Recordkeeping & Bankrup

Discussion in 'Retail Brokers' started by 2cents, Oct 26, 2005.

  1. ... loads of questions asked in numerous threads in the wake of the Refco debacle... this 2-pager seems to sum things up rather nicely fyi, with all the necessary data, facts etc one cld wish for...:
    http://www.sec.gov/rules/proposed/s71701/sexton1.htm#P122_25856
    ... now getting to the point...

    hi Steve (IB)!...
    ... need yr help again sir... where do i start?...
    ... too long to even attempt to summarize why - partly EurexUS FX products related and them advising me 6 weeks ago to open an acct specifically with u guys for painless & proven API connectivity!, partly the attraction of the Universal Acct, yr ok FX spreads, ECN model, new rates etc, the EurexUS freebee offer... also the gutsy PR effort along with the Refco bid whatever the real motives... - hey not such a bad summary actually innit?! ... anyway... all this to say that, and perhaps you and/or i will live to regret this, lets hope not but who knows?, i am now seriously considering opening an acct with IB... there, said it!!!... therefore the following dilemna and my question to you:

    . as a non-US non-UK national nor resident, attempting to determine whether i / my monies wld be best served / protected under the UK FSA/FSCS or the US SEC/CFTC/NFA/FDIC/SIPC frameworks, I have read and re-read, as carefully as my limited abilities allow, the following (IB's) Notice of Execution and Clearing Agreement, that applies notably to persons who have opened an account ("IB UK Account") with Interactive Brokers (U.K.) Limited ("IB UK Customers"):
    http://www.interactivebrokers.com/c...ile=registration_1/uk_customer_agreement.html

    sadly, i am still unable to determine how much of a, say, $200K acct, primarily used for leveraged spot fx transactions, but also for CME eFX and EurexUS currency futures & options transactions, wld be 'protected' by either the US or UK schemes, in the unlikely event that IB US, or IB UK, shld become insolvent...

    cld you plse help?... sorry for the perhaps 'tough' question, but this is one i am also trying to answer for my clients, not just for me...

    many thanks in advance?
    2cents
     
  2. Xenia

    Xenia

    AFAIK there is no EurexUS currency futures with IB.
     
  3. for IB to clarify, but just fyi this is what i got (actually 3 weeks ago, not 6... felt like 6 tho'...):
    ----- Original Message -----
    From: Matthew Haraburda
    At: 10/ 7 1:58

    Mr ,

    Thanks for the interest in Eurex US FX products.For quick access I would
    take a look at Interactive Brokers. They fully support Eurex US currency
    products and have both a API and web based access.

    http://www.interactivebrokers.com/cgi-pub/exchange_display_web.pl?einfo=usEurex2
    &file=EUREXUS.html

    Are you interested in a more customized solution? Most major brokerage
    houses are members of Eurex US and can provide you access via a front end
    or various APIs. Is there any house you are currently dealing with or
    would like to work with? I would be more than happy to get in touch with
    the right people that are familiar with our products and make sure you
    access to them. The below link is the complete member list.

    http://www.eurexus.com/marketaccess/search/findaMemberResults.html

    Also, you may wish to consider membership with Eurex US. Membership is
    free, and we have various direct connectivity options. Please let me know
    if you would want more information in regards to membership.

    Below is all my direct contact information.

    Thanks,
    Matt Haraburda

    +++++++++++++++++++++++++++++++++++++
    Eurex / Eurex US
    US Business Development
    233 S. Wacker, Suite 2450
    Chicago, IL 60606
    +++++++++++++++++++++++++++++++++++++
    direct: 312 544 1063
    mobile: 312 404 1780
    private fax: 312 544 1563
    fax: 312 544 1101
    +++++++++++++++++++++++++++++++++++++

    FX Futures are now trading on Eurex US!
    http://www.eurexus.com/dollarpairs
    http://www.eurexus.com/crosscurrencies
     
  4. Steve - sorry to make things more complicated perhaps, how about with IB Canada and CIPF protection (of up to CAD1mio) http://www.cipf.ca/c_explore_coverage.htm#determination ?
     
  5. Steve_IB

    Steve_IB Interactive Brokers

    2 cents, I really don't know the intricacies of Canada vs US vs UK protection. However, if you open an account with IB, the entity is determined by the information you provide. If you are in Canada then it will be with IB Canada, in Europe with IBUK, otherwise it will be IB in the US.

    Account Protection is detailed here:

    http://www.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc
     
  6. Xenia

    Xenia

    Request for comment from IB:

     
  7. Steve_IB

    Steve_IB Interactive Brokers

    Soon.
    Sooner if you promise to trade lots of them :D
     
  8. many thanks for the honest answer Steve,

    don't want to give anybody any 'bad' ideas here but i suppose i cld set up a paper corporate vehicle in Can. for instance and open a corp acct from Can. if it appears the deposit protection scheme is more favourable there... but i must say, this:

    [ 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 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.

    This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloyd’s policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million. ]

    is pretty impressive!

    how are fx spot positions covered under this please? same as for fx futures? and if yes, how often the sweeps? daily, weekly? also, can i assume acct holders can receive a copy of the Lloyds policy upon request?

    many thanks!

    anybody's seen anything better, plse speak up!?
     
  9. just bumped into this and still in total disbelief!: http://www.interactivebrokers.com/en/general/about/about.php?ib_entity=llc

    wish i'd seen this earlier... this is setting pretty high disclosure standards methinks... sorry to suddenly sound like an IB groupie with the hots - still haven't opened the acct yet... - but... anybody seen anything similar from yr top-10 brokers list???
     
  10. Steve_IB

    Steve_IB Interactive Brokers

    The currency positions are kept in the securities part of the account. Sweeps are made every day. Excess cash in the commodities account is swept into the securities account.

    Lloyds policy copy, I guess so. I'm not sure, I've never been asked for it. You may prefer to contact me directly if you have specific questions about account opening and operation it's: skelsey at interactivebrokers.
     
    #10     Oct 27, 2005