Follow-Up Notice of Margin Increase (Interactive Brokers)

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To clarify last week's communication regarding U.S. Election Day volatility concerns, IBKR’s principal focus is on products having the lowest percent margin rates, in particular, U.S. equity index futures and their derivatives. Stocks generally have higher percent margin rates and will therefore not be affected by the announce changes.

IBKR plans to increase equity index futures and derivatives margins by the aforementioned 35%. By example, ES futures and similar products based on the S&P 500 index would go from a scanning range of approximately 7% to 9.6%.

Stocks, however -- both those under Portfolio Margin and those under the U.S. Reg. T margining model -- will not be impacted as their margin rates already exceed 20%. ETF’s on equity indices are already at margin rates higher than their futures equivalents, and will be similarly unaffected. Other asset classes including commodity products, foreign exchange, bonds, etc. will also not be affected.

As a reminder, this increase will be implemented gradually over a 20 calendar day period with the increase to Initial margin having started September 28, 2020 and the Maintenance starting October 5, 2020. You may project the impact of this change on your portfolio using the Risk Navigator Alternative Margin feature (“U.S. Election Margin” mode).

A list of the most widely held products affected by this change is available on our Knowledge Base.

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