Interactive Brokers Launches Stock Yield Enhancement Program Derivatives for Australian Investors

Interactive Brokers​, an US-based automated global electronic broker, yesterday announced the introduction of the Stock Yield Enhancement Program (SYEP) Derivatives for investors in Australia, offering its clients a new way to earn extra income from their stock portfolios without sacrificing control or transparency.

The SYEP Derivatives program is available to clients who have been approved for a margin account or have a cash account with equity greater than USD 50,000 (or equivalent). Clients who agree to lend their shares of stock to Interactive Brokers Australia in connection with the SYEP Derivatives program can expect to receive cash collateral deposits and returns equivalent to the revenue that may have been earned if the shares were lent out.

Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said, "We are always looking for ways to deliver more value to our clients, and the SYEP Derivatives program fits that bill. Our clients can enjoy extra income without having to sacrifice control over their stock, and we are proud to offer this innovative program."

Besides, clients who have their shares loaned out in connection with SYEP Derivatives will continue to own the stock as the beneficial owner. They retain market risk and will recognize any profit or loss if the stock price changes. Further, they can sell their shares or withdraw the authority to enter into SYEP Derivatives at any time without restriction.