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Interactive Brokers Group Strength and Security

Investor Protection at Interactive Brokers Central Europe

Interactive Brokers Central Europe ("IBCE") takes a proactive approach to customer protection. IBCE determines the amount of cash and securities owed to customers daily and segregates funds for the exclusive benefit of customers in bank accounts correctly identified as client segregated accounts.

IBCE performs a reconciliation of customer money at least daily to ensure that customer monies are properly segregated from the IBCE’s own funds. Customer-owned, fully-paid securities are protected in accounts at depositories and custodians that are specifically identified for the exclusive benefit of customers. IBCE reconciles positions in securities owned by customers daily to ensure that these securities have been received at the depositories and custodians.

IBCE applies real-time risk margin requirements to customer accounts. If a customer is deemed to have insufficient assets to cover the risk of their open positions, IBCE typically will perform real-time liquidations of their positions to return the account to margin compliance.

IBCE's real-time risk margin requirement and protective liquidations minimise customers’ exposure to losses attributable to other customers’ trading, and the risk that customer losses pose to IBCE.

Another major benefit of doing business with IBCE is that it does not carry any proprietary inventory. IBCE solely acts as a facilitator for customer trading and does not make any directional bets. Two of the most significant bankruptcies of the past decade (Lehman Brothers and MF Global) were caused by the risk generated from proprietary holdings.

Since IBCE does not make proprietary bets, the risk of IBCE going bankrupt and customer funds being tied up in a liquidation is significantly reduced.

Finally, IBCE is not affiliated with a bank. This provides IBCE with a more stable platform for its customers should a market-wide crisis arise.

Since IBCE is not a bank, it is likely that customers' assets would be returned in a more timely fashion than for bank-owned entities..