IBKR tightening margin

Chubbly · Mar 3, 2017

truetype said:
Upcoming Change Margin Change (Implied-Volatility) (.. )

A component of Interactive Brokers House Margin is implied-volatility stresses of +/-15%; the results of these stresses are factored into margin requirement calculations. This communication is to inform you of an upcoming change to this algorithm with respect to these implied volatility stresses.

• Broad Based Index: The implied Volatility Stress will be increased to +/- 75%

• All remaining classes: The implied Volatility Stress will be increased to +/- 150%

This change in the margin calculations is scheduled to be implemented in a series of 20% daily increments over a 5-business-day period. The first change will be made before the US open on March 20, 2017 and will conclude before the US open on March 24, 2017. (.. )

Consistent with our stated policy, accounts that are unable to carry the positions under these new margin requirements are subject to automated liquidations in order to bring the account into margin compliance.

I just checked my account and I did not get this notice and I am short index all the time.
I also checked the website and did not see this posted anywhere

Where did you see this posted?

algofy · Mar 3, 2017

truetype said:
Upcoming Change Margin Change (Implied-Volatility) (.. )

A component of Interactive Brokers House Margin is implied-volatility stresses of +/-15%; the results of these stresses are factored into margin requirement calculations. This communication is to inform you of an upcoming change to this algorithm with respect to these implied volatility stresses.

• Broad Based Index: The implied Volatility Stress will be increased to +/- 75%

• All remaining classes: The implied Volatility Stress will be increased to +/- 150%

This change in the margin calculations is scheduled to be implemented in a series of 20% daily increments over a 5-business-day period. The first change will be made before the US open on March 20, 2017 and will conclude before the US open on March 24, 2017. (.. )

Consistent with our stated policy, accounts that are unable to carry the positions under these new margin requirements are subject to automated liquidations in order to bring the account into margin compliance.

Hey surf

Chubbly · Mar 3, 2017

algofy said:
Hey surf

Yes, this looks like Surf again... I looked at his posting history and mot of his posts are in the Surf report thread

Baron can you ban Surf and his alias please. Posting fake information like this should get a ban

dunleggin · Mar 4, 2017

The notice as reproduced by truetype is entirely accurate. It was issued as a bulletin on the trading platform as well as a message in the Account Management center. My account is with IB in HK. I trade options on HK & US exchanges.

I share the surprise that the notice hasn't (apparently) been more widely disseminated, since the upcoming action appears broad in its application. Also a touch surprising there hasn't been an IB person confirming here.

lucky trader · Mar 4, 2017

I also got this message. It seems margin increase is intended only for some subgroup of traders with portfolio margin.

MoreLeverage · Mar 4, 2017

I also got the message. Will try to figure out exactly what it means for me this weekend. Sounds like short options margin requirements may be going up, not sure if this impacts equities or ETFs also.

Chubbly · Mar 4, 2017

dunleggin said:
The notice as reproduced by truetype is entirely accurate. It was issued as a bulletin on the trading platform as well as a message in the Account Management center. My account is with IB in HK. I trade options on HK & US exchanges.

I share the surprise that the notice hasn't (apparently) been more widely disseminated, since the upcoming action appears broad in its application. Also a touch surprising there hasn't been an IB person confirming here.

My account is IB Canada. All I do is short index and futures options. Checked again and no notice for me.

Are you using portfolio margin?

truetype · Mar 4, 2017

dunleggin said:
as reproduced by truetype is entirely accurate. It was issued as a bulletin on the trading platform as well as a message in the Account Management center.

Thank you.

Fonz · Mar 4, 2017

You should call them and ask (best of luck). I have a portfolio margin account, and I didn't receive this notice.

daniel5198 · Mar 4, 2017

Fonz said:
You should call them and ask (best of luck). I have a portfolio margin account, and I didn't receive this notice.

I also have a PM account (IB-US), I trade many short naked SPX options every month, and havent seen any notice.