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Trader Workstation Key Enhancements

Over the past few months, we've significantly enhanced our platform TWS for Desktop.

To Help Avoid Liquidation, TWS Considers Net Liquidating Value Uncertainty Due to After Hours Market Moves

At IB, our real-time margin system allows you to see your trading risk at any moment of the day. We apply margin requirements throughout the day and when necessary, liquidate positions instead of making delayed margin calls. This approach allows us to maintain our low commissions because it helps control the cost of credit losses.

We are starting the rollout of a new feature that will be of particular interest to our clients whose portfolios have some positions for which the market is open and others for which it is closed. This new system will value your portfolio using two different mark prices - real and forecasted. For the instruments that are open for trading, the two prices are identical and the same as today; i.e., they reflect the currently prevailing market prices. For the instruments that are closed for trading, the real mark price reflects the prevailing market prices and the forecasted one is an estimate based on correlated contracts that are currently trading in other markets.

You can see the forecasted mark prices for a particular instrument by mousing over its Market Price in the Portfolio Section of the Account Window (TWS version 957 and higher).

Your portfolio Net Liquidation Value (NLV) continues to be calculated using the real mark prices. The positions where the two mark prices differ contribute to the Net Liquidation Value Uncertainty, which is displayed in the Account Window (TWS version 957 and higher).

If the NLV Uncertainty is positive (i.e., your actual NLV may be lower than what is displayed in the Account Window), you may not be able to open some new positions. The aim is to prevent new positions that may need to be liquidated when the market reopens and the forecast mark prices get replaced with the real ones.

If the NLV Uncertainty is negative (i.e., your NLV may be higher than what is displayed in the Account Window), we may prevent auto-liquidation of positions in your account.

Adaptive Algo Supports Futures

The newest member of our IB Algo family, the Adaptive Algo, strives to achieve the fastest fill at the best all-in price by adapting to market conditions as it works. This flexible and popular algo can now also be used to trade futures, in addition to stocks and options.

Specify Cash Amount to Calculate Order Quantity for IB Algos

The new Cash Quantity parameter for IB Algo orders allows you to specify the cash value you want to invest or receive, instead of specifying the order size in shares. Once you specify your desired cash amount in the Cash Quantity field, TWS respects this value and attempts to buy or sell enough shares to reach that amount without going over. Once the user-defined cash quantity value is achieved, cancellation requests are sent for any remaining shares and the order is considered filled. Note that this feature is not available for all IB Algos.

Full Flexibility to Change the Order Type for Multiple Working Orders
We have significantly improved the "Update Orders" feature to let you quickly change multiple orders to a new order type or algo. You can pick from a list of order types or algo and immediately update the order type for a whole page or basket of orders with two quick clicks. Use this feature on selected orders in a quote monitor from the Trade menu, or on a basket of orders in the BasketTrader using the Edit menu.

Personalize your Trading Platform

Recent TWS enhancements give you even more ways to customize your platform and save time creating and submitting orders.

Customize the Product Display to Show Only What You Trade
IB's direct market access to stocks, options, futures, forex, bonds, ETFs and CFDs worldwide helps our clients take advantage of global trading opportunities around the clock. But we know you may not trade in all of these products. With the Contract Selector, you can personalize your trading experience by configuring TWS to filter out the products, regions and exchanges that you don't use. With filters in place, you can enter new contracts more quickly without having to pick through a large selection list. But don't worry, everything is still there and easily accessible. Simply press the Alt + Enter keys after you type a symbol to see the full Contract Selector list.

To make your Contract Selector more efficient, open the Contract Selector page in the Display section of Global Configuration. Check both check boxes and use the Exchange Groups and /or Direct Exchanges table to check the product and exchanges you want to see when you enter a symbol in a trading page. For example, if you check both check boxes and then check only United States Stocks and Underlying – Stocks, the next time you enter a stock symbol (for example IBKR), the market data line appears instantly without presenting a pick list of available instruments.

Add Tools as Layout Tabs for Quicker Access
You can now add many TWS tools as new tabs that display alongside the Classic TWS and Mosaic layout tabs. Once you have added the tool as a tab, simply click to open the tool. This means you can now add your favorites like the Probability Lab or Portfolio Builder as quick-click tabs for easier access. To add a tool as a new layout tab, select the tool from the New Window dropdown and slide your mouse over to far right. Select the Add as new tab icon.

Add Tools as Mosaic Tiles
Tools that were traditionally available only as standalone features can now be added to a Mosaic workspace layout as a tile. For example, you could include a tool such as the ScaleTrader or Rebalance window in a layout grouped with the Activity panel, a chart, and a Time & Sales window. To add these or any new tiles to a layout, remember to first unlock the layout by clicking the Lock icon in the upper right corner of the Anchor window to the left of the Search field.

Account Management Updates

So far in 2016, we've added the following Account Management features:

Log In to Live or Paper Account
When you log in to Account Management, you can now use your live or paper trading account username and password to log in to your paper trading account. You can still use your paper trading account username and password to log in to your paper trading account.
Link Existing Account to an Advisor/Broker Managed Account Under a Single Username
You can now link your individual, joint, trust or IRA account to an existing Advisor- or Broker-managed account under a single username. Previously when you linked an existing account to an Advisor- or Broker-managed account, you had different usernames for each linked account. Link existing accounts on the Manage Account > Add or Link Accounts > Link Existing Accounts page.

For Institutions, we've added these features:

Expanded Access to Money Managers
Advisors (RIA's under a Fully Disclosed Broker account), and Friends and Family Advisors can now access the Money Manager Marketplace, link to Money Managers and assign client accounts to Money Managers.
Use Soft Dollars to Pay for Market Data
Registered Investment Advisors and Hedge Fund Investment Managers who use soft dollars to pay for market data can elect to use soft dollars to pay for market data on the Funding > Soft Dollars Disbursement page in Account Management.
Advisor Client Invoicing
We've updated advisor client invoicing with the following features:
- Percentage Caps on Monthly/Quarterly Advisor Client Invoices - Advisors can now specify a monthly or quarterly maximum invoice amount as a percentage of a client's Net Asset Value when they configure client fees on the Manage Clients > Fees > Configure page in Account Management. Advisors can specify an absolute amount in the Amount field, the new percentage cap in the Cap field, or both.
- Advisors Can Include Model Fees in Uploaded Invoices - Advisors who upload invoices for multiple clients in a .CSV (comma-separated values) file can now include model fees in their .CSV file. Add the Model field to your .CSV file to include model fees in your client invoices. Advisors upload invoices on the Manage Clients > Fees > Invoicing page in Account Management.

IB's Block Trading Desk

If you need an outsourced trading solution, our Block Trading Desk may be just what you are looking for. Contact our experienced agency Block Trading Desk for assistance with large size stock, ETF, and options orders. Our Block Trading Desk offers instant access to live brokers who will work your orders of at least 10,000 shares or 100 option contracts (per leg), with no phone queue or hold time. Other benefits of our Block Trading Desk include:

Potential price improvement on options trades, including pit-traded SPX & VIX;
Pre-trade quotes available for any option strategy.

If you would like a higher level of service or want to learn more about IB's block trade executions, please (203) 618-4009 or (203) 618-4030.

New Products

We have added the following products, exchanges and funding currencies:

New Products

HKFE: RMB futures (USD.CNH)
SGX Bank Nifty index futures (NSEBANK)
CES G10 Index
Ultra 10-Year US Treasury Note Futures (TN) on ECBOT
Mini FTSE 100 Index Options (UKXM) on CBOE
Mini FTSE China 50 Index Options (FXTM) on CBOE
Portuguese stocks
Commission-free ETFs:
- Infrastructure ETFs
- O'Shares ETFs

Exchange

ISE Mercury

Funding Currency

Polish Zloty (PLN)

New Mutual Fund Families
We currently offer 7,011 mutual funds from 116 families, including 2,734 NTF funds. In 2016, we have added 1,679 funds from 26 families:

Columbia Funds
Exceed Funds
Alger Funds
Schooner Funds
Azzad Funds
Cedar Ridge Funds
Calamos
Longboard
Buffalo Funds
TIAA-CREF
US Global Investors
Ridgeworth
FPA Funds
Neuberger Berman
Prudential
ZEO Capital
Marketfield
AlphaCentric
Alpine
Northpoint
Lyons
Metropolitan West
Eventide
Good Harbor
Leland
Monte Chesapeake

The Interactive Brokers
RIA Compliance Center

Investment advisors are subject to a variety of compliance obligations, including registering with the SEC and/or states, making regulatory filings, providing customer disclosures and navigating a maze of other state and federal rules. The Interactive Brokers RIA Compliance Center offers tools to help advisors identify and meet compliance rules and requirements. We offer a variety of resources to help advisors understand and meet their compliance obligations and help those considering becoming an advisor get started:

A Transition Guide for starting your own independent advisory practice, which includes an overview of major legal and compliance considerations new advisors should consider.
A Webinar discussing advisors' registration and compliance obligations.
A series of Spotlights providing detailed overviews of major compliance issues advisors may face.
An extensive list of Preferred Providers that offer RIA Compliance-related services, many of whom have agreed to give discounts to advisors who trade through IB. These providers offer everything from compliance software, hands-on consulting and cyber security to GIPS verification and insurance.
Templates that advisors can use to draft and customize documents needed to meet their compliance obligations and conduct their business.
Links to key regulatory sites and other third-party sites.
Information advisors can use to conduct due diligence (or provide to regulators) on Interactive Brokers' strong record as a custodian and best execution advantage.

The RIA Compliance Center also includes an online tool through which advisors trading through IB - or those thinking about becoming advisors - can ask questions about third-party providers, the IB platform and general compliance subjects. We have dedicated, experienced professionals who can steer advisors in the right direction. If we cannot help you directly, we will help identify the third-party providers that can help you and help set up those arrangements.

Visit the RIA Compliance Center

Solium and Interactive Brokers Take Employee Stock and Option Plans to the Next Level

Solium Capital Inc. provides cloud-enabled services for global equity-based incentive plans, including administration, financial reporting and compliance. Our partnership with Solium allows us to invite employees whose award shares are administered by Solium to open IB accounts and automatically receive their vested shares in those accounts. When the new accounts have been approved for these employees, we can automatically load their employee share data and move their vested shares. These new IB clients will be able to see their unvested and vested shares as well as other broker accounts in PortfolioAnalyst.

For those organizations with a need to monitor the trading of their key employees, we offer our free compliance add-on, EmployeeTrack. EmployeeTrack allows you to view the trading of specified employees, create exception reports, and even limit the trading of your employees if they open Interactive Brokers accounts.

Advisors Can View Client's
External Accounts in PortfolioAnalyst

IB clients can use PortfolioAnalyst to see the current performance of all of their financial accounts, including investment, checking, savings, annuity, incentive plan and credit card accounts held at financial institutions outside of Interactive Brokers.

We've expanded this feature to include Registered Investment Advisors, who can now get permission from their clients to view those clients' external accounts in PortfolioAnalyst.

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Mailing address: Two Pickwick Plaza - Greenwich CT 06830

Interactive Brokers LLC - member NYSE, FINRA, SIPC

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

No offer or solicitation to buy or sell securities or investment products of any kind, and no recommendation or advice is made, given or in any manner endorsed by Interactive Brokers LLC ("Interactive Brokers") or any of its affiliates.

Options involve risk and are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy, call 312 542-6901.

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