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Note that Interactive Brokers LLC and its affiliates are owned by IBG LLC.
Client money is segregated in special bank accounts (Client Money Accounts held in Trust with Authorised Deposit-taking Institutions ("ADI")) which are designated for the exclusive benefit of Australian clients of IBKR. This segregation is a requirement of Australian Financial Services License ("AFSL") holders and, Interactive Brokers Australia ("IBKR Australia"), as an AFSL holder, fully complies with these principles.
By properly segregating the client's assets, if no money or stock is borrowed and no futures positions are held by the client, then the client's assets are available to be returned to the client in the event of a default by or bankruptcy of the broker.
Client money is NOT invested by IBKR Australia, and is at all times held in these Client Money Accounts held in Trust. In addition, IBKR Australia does NOT hold any excess amount of its own money in these Client Money Accounts held in Trust.
For certain clients who borrow money from IBKR Australia to purchase securities, IBKR Australia is permitted to utilize for financing purposes a portion of the loan value of the stock these clients hold with IBKR Australia. In simple terms, IBKR Australia borrows money from a third party (such as a bank or broker-dealer), using the client's margin stock as collateral, and it lends those funds to the client to finance the client's margin purchases. Click here for more information on which clients are affected by this.