Examples
For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu of Account Management.
For all below examples assume benchmark rates as follows:
| Benchmark (BM) |
Rate |
| US Dollar Fed Funds Effective |
1.70% |
| EONIA (Euro Overnight Index Average) |
2.080% |
| CHF LIBOR (Overnight Rate) |
(0.70)% |
| GBP LIBOR (Overnight Rate) |
4.439% |
Example 1 - Interest Paid To You (USD)
When you hold excess positive cash balances, we'll pay interest as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
10,000 |
10,000 |
10,000 |
| Commodity Margin Deficit |
|
5,000 |
|
| Adjusted Balance |
10,000 |
5,000 |
10,000 |
| Adjusted for Securities Balance |
|
|
|
| Cash for Interest |
10,000 |
5,000 |
10,000 |
| Combine Securities + IBUKL |
20,000 |
|
|
| Commodity |
5,000 |
|
|
Calculate interest on Combined Securities + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 10,000 |
0.00 |
0.00 |
0.00 |
| Next 10,000 |
0.33 |
0.00 |
0.00 |
| Pay/Charge to Securities |
0.17 |
|
|
| Pay/Charge to UKL |
0.17 |
|
|
| Pay/Charge to Commodity |
0.00 |
* interest is not paid to free cash held in the commodity sub-account |
|
Example 2 - Interest Paid to You on Net Positive Balances
When you hold a positive cash balance in your securities account and a negative cash balance in the IBUKL segement, interest will be paid as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
25,000 |
5,000 |
(10,000) |
| Commodity Margin Deficit |
|
5,000 |
|
| Adjusted Balance |
25,000 |
0.00 |
(10,000) |
| Adjusted for Securities Balance |
|
|
|
| Cash for Interest |
25,000 |
0.00 |
(10,000) |
| Combine Securities + IBUKL |
15,000 |
|
|
| Commodity |
0.00 |
|
|
Calculate interest on Combined Equity + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 10,000 |
0.00 |
0.00 |
0.00 |
| Next 5,000 |
0.17 |
0.00 |
0.00 |
| Pay/Charge to Securities |
0.17 |
|
|
| Pay/Charge to UKL |
0.00 |
|
|
| Pay/Charge to Commodity |
0.00 |
|
|
Example 3 - Interest Calculated on Net Balances
If both the securities and UKL segments have negative cash and the commodity segment holds excess cash, interest will be calculated as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
(30,000) |
150,000 |
(10,000) |
| Commodity Margin Deficit |
|
10,000 |
|
| Adjusted Balance |
(30,000) |
140,000 |
(10,000) |
| Adjusted for Securities Balance |
40,000 |
|
|
| Cash for Interest |
10,000 |
100,000 |
(10,000) |
| Combine Securities + IBUKL |
0.00 |
|
|
| Commodity |
100,000 |
|
|
Calculate interest on Combined Securities + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 10,000 |
0.00 |
0.00 |
0.00 |
| Next 0 |
0.00 |
0.00 |
0.00 |
| Pay/Charge to Securities |
0.00 |
|
|
| Pay/Charge to UKL |
0.00 |
|
|
| Pay/Charge to Commodity |
0.00 |
* interest is not paid to free cash held in the commodity sub-account |
|
Example 4 - Interest Paid to You on Net Positive Balances
If the securities segment holds excess cash and the commodities segment holds negative cash, interest will be calculated as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
50,000 |
(10,000) |
0.00 |
| Commodity Margin Deficit |
|
0.00 |
|
| Adjusted Balance |
50,000 |
(10,000) |
0.00 |
| Adjusted for Securities Balance |
(10,000) |
|
|
| Cash for Interest |
40,000 |
0.00 |
0.00 |
| Combine Securities + IBUKL |
40,000 |
|
|
| Commodity |
0.00 |
|
|
Calculate interest on Combined Securities + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 10,000 |
0.00 |
0.00 |
0.00 |
| Next 30,000 |
1.00 |
0.00 |
0.00 |
| Pay/Charge to Securities |
1.00 |
|
|
| Pay/Charge to UKL |
0.00 |
|
|
| Pay/Charge to Commodity |
0.00 |
|
|
Example 5 - Interest Calculation on Excess Commodity Segment Funds
When you have positive funds in the commodity segment but do not meet the 10,000 payment threshold for interest in the securities segment, interest will be calculated as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
2,500 |
200,000 |
0.00 |
| Commodity Margin Deficit |
|
10,000 |
|
| Adjusted Balance |
2,500 |
190,000 |
0.00 |
| Adjusted for Securities Balance |
|
|
|
| Cash for Interest |
2,500 |
190,000 |
0.00 |
| Combine Securities + IBUKL |
2,500 |
|
|
| Commodity |
190,000 |
|
|
Calculate interest on Combined Securities + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 10,000 |
0.00 |
0.00 |
0.00 |
| Next 0 |
0.00 |
0.00 |
0.00 |
| Pay/Charge to Securities |
0.00 |
|
|
| Pay/Charge to UKL |
0.00 |
|
|
| Pay/Charge to Commodity |
0.00 |
* interest is not paid to free cash held in the commodity sub-account. |
|
Example 6 - Interest Calculation on Positive CHF Cash Balances
When you have an excess positive cash balance in CHF, daily interest will be calculated as follows:
Statement Reflects
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| |
220,000 |
0.00 |
10,000 |
| Commodity Margin Deficit |
|
0.00 |
|
| Adjusted Balance |
220,000 |
0.00 |
10,000 |
| Adjusted for Securities Balance |
|
|
|
| Cash for Interest |
220,000 |
0.00 |
10,000 |
| Combine Securities + IBUKL |
230,000 |
|
|
| Commodity |
0.00 |
|
|
Calculate interest on Combined Securities + IBUKL balance, allocate to accounts on a pro-rata basis.
| |
Securities Settled Cash |
Commodities Settled Cash |
UKL Settled Cash |
| First 100,000 |
0.00 |
0.00 |
0.00 |
| Next 130,000 |
(3.43) |
0.00 |
0.00 |
| Pay/Charge to Securities |
(3.28) |
|
|
| Pay/Charge to UKL |
(0.15) |
|
|
| Pay/Charge to Commodity |
0.00 |
|
|
