Interactive Brokers announced three new programs at Interactive Brokers Securities Japan Inc. designed to help investors manage trading costs and earn income on eligible cash and shares. The centerpiece is a more cost-efficient approach to margin financing in which clients who contribute cash toward a position are charged interest only on the amount financed rather than the full position value, an approach widely used in margin financing globally that Interactive Brokers is now bringing to investors in Japan. The other two programs follow the same principle: Gaika+ allows eligible non-JPY cash balances to generate income in yen through automatic overnight currency swaps, applying only when the non-JPY currency interest rate is higher than the yen interest rate, while the Stock Yield Enhancement Program lets eligible clients earn income by lending fully paid shares, with IBSJ paying clients 50% of the market-based borrow rate and disclosing both the market rate and the client's share. As an illustration, a ¥10 million position funded with ¥5 million in client cash and held for 12 months at IBSJ's interest rate of 2.466% would cost ¥246,600 annually if interest were charged on the full position, but costs ¥123,300 because interest applies only to the ¥5 million financed, a savings of ¥123,300, or 50%. Ramir Roque Cimafranca, Head of Interactive Brokers Securities Japan Inc., said the goal has always been to help Japanese clients get more from every yen they invest, and that the three programs put more of a client's portfolio to work across margin, cash and shares. Interactive Brokers Group is Nasdaq-listed, is a member of the S&P 500, serves more than 5.4 million client accounts and reports more than USD 960 billion in client equity worldwide.
Interactive Brokers Group IncInteractive Brokers Securities Japan launched three new client programs (margin financing, Gaika+ currency swaps, Stock Yield Enhancement), expanding its product offerings.
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