Interactive Brokers launches three new programs for Japan investors

Interactive Brokers Group (NASDAQ: IBKR) announced three new programs at its Japanese subsidiary, Interactive Brokers Securities Japan Inc. (IBSJ), aimed at reducing margin financing costs and generating income on cash and shares.

The first program charges margin interest only on the amount borrowed rather than the full position value. Under this structure, a ¥10 million position funded with ¥5 million in client cash at an interest rate of 2.466% would cost ¥123,300 annually, compared with ¥246,600 if interest were charged on the full position.

The second program, called Gaika+, allows eligible clients to earn daily income in yen on non-JPY cash balances through automatic overnight currency swaps. The program applies only when the non-JPY currency interest rate exceeds the yen interest rate and has no effect on cash available for trading.

The third program, the Stock Yield Enhancement Program, allows eligible clients to lend fully paid shares to IBSJ, which then lends them to short sellers. IBSJ pays clients 50% of the market-based borrow rate and discloses both the market rate and the client's share. At a market borrow rate of 4%, a client lending ¥1,000,000 in shares would receive approximately ¥20,000 in annual income.

"Our goal has always been to help Japanese clients get more from every yen they invest," said Ramir Roque Cimafranca, Head of Interactive Brokers Securities Japan Inc. "These three programs put more of a client's portfolio to work — margin, cash, and shares — so every part earns its keep."

Interactive Brokers Group serves more than 5.4 million client accounts and reports more than $960 billion in client equity worldwide.

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