• A majority is invested in U.S. Treasury securities, including direct investments in Treasury bills, Treasury Notes and reverse repurchase agreements, where the collateral received is in the form of U.S. Treasury securities. These transactions are conducted with third parties and guaranteed through a central counterparty clearing house (Fixed Income Clearing Corp., a subsidiary of the Depository Trust & Clearing Corp.), which marks the collateral to market prices daily, thereby ensuring that Finalto Global Au holds full collateral value. The collateral remains in the possession of Finalto Global Au and held at a custody bank in a segregated Reserve Safekeeping Account for the exclusive benefit of clients. U.S. Treasury securities may also be pledged to a clearing house to support client margin requirements on securities options positions.
• Client cash is maintained on a net basis in the reserve accounts, which reflects the long balances of some clients and loans to others. To the extent any one client maintains a margin loan with Finalto Global Au, that loan will be fully secured by stock valued at up to 140% of the loan. The security of the loan is enhanced by Finalto Global Au’s conservative margin policies, which do not allow the borrower to correct a margin deficiency within days, as permitted by regulation. Instead, Finalto Global Au monitors and acts on a real-time basis to automatically liquidate positions and repay the loan. This brings the borrower back into margin compliance without putting Finalto Global Au and other clients at risk.
• A portion is deposited primarily with large U.S. banks in special reserve accounts for the exclusive benefit of Finalto Global Au’s clients. These deposits are distributed across a number of banks with investment-grade ratings so that we can avoid a concentration risk with any single institution. No single bank holds more than 5% of total client funds held by Finalto Global Au. As of January 2025, the following banks held deposits from Finalto Global Au (this list is subject to change over time at Finalto Global Au’s discretion). Certain banks, which are affiliates or branches of foreign financial institutions, are subject to regulatory oversight by the Federal Reserve and the Office of the Comptroller of the Currency.
  • BMO Bank, N.A.
  • CIBC Bank US
  • Citizens Bank
  • Standard Chartered Bank
  • Truist Bank
  • US Bank, N.A.

Current SEC regulations require broker-dealers to perform a detailed reconciliation of client money and securities (known as the “reserve computation”) at least weekly to ensure that client monies are properly segregated from the broker-dealer’s own funds. In order to further enhance our protection of our clients’ assets, Finalto Global Au sought and received approval from FINRA (the Financial Industry Regulatory Authority), to perform and report the reserve computation on a daily basis, instead of once per week. Finalto Global Au initiated daily computations in December 2011 along with daily adjustments of the money set aside in safekeeping for our clients. Reconciling our accounts and client reserves daily instead of weekly is just another way that Interactive Brokers seeks to provide state-of-the-art protection for our clients.

Client-owned, fully-paid securities are protected in accounts at depositories and custodians that are specifically identified for the exclusive benefit of clients. Finalto Global Au reconciles positions in securities owned by clients daily to ensure that these securities have been received at the depositories and custodians.