Friday, July 17, 2009

Interactive Brokers Having A Really Tough Day With Locates, Meg_C Wishes It Was Tomorrow

"Based upon information available through 14:30 today, we remain unable to locate and borrow / re-borrow the shares necessary to meet delivery obligations on certain short stock positions in your account. As current SEC regulations now strictly enforce delivery obligations, these short stock positions will be subject to forced buy-in by IB should our continued efforts to borrow or re-borrow the necessary shares today be unsuccessful.

A list of stocks in your account UXXXXXX that may be at risk to a forced buy-in, based on current settlement information is provided below. You may wish to consider repurchasing your position(s) in these stocks in order to control your portfolio/risk at any time prior to the end of the current regular trading session (16:00 EST). Transactions occurring after 16:00 cannot be considered against the delivery obligation.

ACWI (XYZ shares)

As noted above, we will continue to make every effort to locate and borrow the shares necessary to allow you to maintain these short positions, however, given the limited time available in the current trading session we will be unable to provide any further updates as to your account status until delivery of your daily activity statement.

Now the oddest thing is that according to the below screen capture, IB had quite a few shares available at any given moment during the day, and definitely at 14:30.

So which was it IB - recall or available?

Also, in a separate issue, Zero Hedge is starting to feel bad for Megan_C?

Megan C: Hello, this is 'meganc'. How may I help you?
traderxxx:I'd like a thourough explanation of why a fully funded cash postion was liquidated, namely AMSC
Megan C: alright
Megan C: your account was in margin violation
Megan C: and our system is automatic
Megan C: andliquidates a position to free up your margin
traderxxx: there were no margin postioins how is that possible
traderxxx: no margin should have been required for any postions in my account
traderxxx: hello??
Megan C: yes I am still here
Megan C: I am looking at your account information
traderxxx: ok
Megan C: alright
Megan C: you were charged a fee of -.01
Megan C: which caused you to have a negative cash balance
Megan C: and whenever there is a negative cash balance
Megan C: the account is immediatley liquidated to make up for that
traderxxx: gee, what did you charge me a penny for?
traderxxx: and this implies my cahs balance was zero
Megan C: I understandyour frustration
Megan C: I'm looking at your account statement from last night
traderxxx: I'm not frustrated
Megan C: and there was a charge for settle cash
traderxxx: what's that
Megan C: well I apologize for saying that then, but the charge is shown on your daily statement for yesterady
Megan C: your starting cash yesterday was .19
Megan C: there was an interest charge of 20 cents
Megan C: which caused you to go negative
traderxxx: I'm looking at yesterdays statement and seeing that I was
charged 20 cents interest against a 19 cent balance, whay was I charged
Megan C: and that is where the -.01 comes from
traderxxx: when did I ever have debit balance to charge interst for?
traderxxx: you stillthere?
Megan C: yes I am still here
Megan C: you were charge interest on the cash that you had
Megan C: .19
Megan C: it is a monthly charge
traderxxx: you chrged me interest on a positive balance??
traderxxx: what is this charge called and where is diclosed?
Megan C: i am getting that information to you righ tnow
Megan C: IB collects interest on a daily basis, and charges them at the end of the month. Cash in the account is charged interest on a daily basis for holding it over night etc. Megan C:and then the charges are all done at the end of the month
Megan C: if you go to
Megan C: and under fees
Megan C: go to interest and financing
Megan C: there is a breakdown of these fees
Megan C: and it shows you how it allots for these charges each day and tehn each
traderxxx: still I don't understand how apositive balance could
charged interest?
Megan C: cash balances are charged intrest
traderxxx: what? that is insane it is supposed to work the other way! HELLO? are we on the same planet?
traderxxx: can you please cite exactly where in theuser agreement, or exactly where n your website it states that actually charge interest for a oistive balance?
Megan C: on the website
Megan C: go to fees
Megan C: and then interest and financing
traderxxx: I'm there and I can't find it
Megan C: what are you seeing?
traderxxx: interest is typically charged on negative balances not on positive balances!!!
traderxxx: I'm seeing a very long page with lots of example and I want to
know where i ever agreed to pay interest on a postivie balance
Megan C: alright
MeganC: there is interest charged in ending settled cash
Megan C: it is all right there on this page for you
Megan C: you were charge a monthly fee for your cash balance
traderxxx: where exactly on that page are you referring to? section, line number paragraph heading
Megan C: then go toexamples on how we calculate intereset
Megan C: click on that link
Megan C: and the information is there
traderxxx: whcih one there are many
Megan C: well look at the calulations sections
Megan C: and then the final
Megan C: the final posting information I think is what you would
be most interested in
Megan C: can i help you with anything else today?
traderxxx: I'll have to hire an accountant to figure that one out. Well if you take a look at my permissions you'll I just updated and broadened them with the intent increasing my balance with company and increasing my trading with your firm, but until I figure out what sort bamboozelment you folks are pulling here. I've had many trading accounts over the years and never ever been charged interest ona positive balance
traderxxx: this is ludicrous!!
Megan C: if you need any additional clarification please let us know
Megan C: have a nice evening
traderxxx: yes ineed additional clarifiaction, I jsut don't understand it

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