Interactive Brokers Ireland ("IBIE") takes a proactive approach to customer protection. IBIE determines on a daily basis the amount of cash and securities owed to a customer and holds these funds separately in bank accounts, identified as segregated customer accounts, for the exclusive benefit of the customer.

IBIE reconciles customer funds at least daily to ensure that customer assets are properly segregated from IBIE's deposits. Fully paid securities owned by customers are protected in accounts with custodians and securities depositories that are expressly invested for the sole benefit of customers. IBIE reconciles securities positions held by customers on a daily basis to ensure that these securities have arrived at the custodians and securities depositories.

IBIE applies real-time based risk margin requirements to all customer accounts. If it is determined that a customer does not have sufficient assets to cover the risk of open positions in their account, IBIE typically performs real-time liquidations to bring the account back into compliance with applicable margin requirements.

IBIE's real-time based risk margin requirements and pre-emptive liquidations minimize the extent to which our clients are exposed to losses caused by the trading activities of other clients, as well as the risk to IBIE from losses incurred by clients.

Another key advantage of doing business with IBIE is that IBIE does not hold proprietary inventory. IBIE acts solely as an intermediary for clients' trading activities and does not engage in directional speculative trading. Two of the most significant insolvencies of the past decade (Lehman Brothers and MF Global) were caused by risks from proprietary position holdings.

Since IBIE does not engage in speculative transactions for its own account, there is a significantly lower risk that IB will become insolvent and that assets will be tied up in liquidation.

Finally, it should be mentioned that IBIE is not affiliated with any bank. This means that in the event of a market-wide crisis, IBIE can provide its clients with a more stable platform.

Since IBIE is not a bank, we assume that assets would be repaid by customers more quickly than would be the case for entities belonging to a bank.

Certain customers of Interactive Brokers Ireland Limited are protected by the Irish Investor Compensation Scheme ("ICS").

The ICS is designed to support individuals and does not cover institutional or professional clients. Compensation under the ICS is limited to 90% of the amount lost, with each investor subject to a maximum of €20,000. The insurance provides protection in the event of bankruptcy of the investment company, but not against the loss of market value of financial products.

The ICS is administered by the Investor Compensation Company DAC ("ICCL"), which is an independent agency established under the Irish Investor Compensation Act of 1998. For more information about the ICS and answers to frequently asked questions (e.g., about how the ICS works, what its protection extends to, how to make a claim, etc.), please visit the following website:

Irish Investor Compensation Scheme

Or contact the Investor Compensation Company DAC at:
The Investor Compensation Company DAC
c/o Central Bank of Ireland
PO Box 11517
Spencer Dock, North Wall Quay Dublin 1, Ireland
Email: info@investorcompensation.ie
Phone: +353 1 244 4485

IB is a regulated broker under SEC and CFTC standards. As such, IB is subject to the regulatory requirements that apply to investments with its own client funds. Permitted investment vehicles include deposits and a variety of prime government bonds and other related financial instruments. IB's current investment policy, meanwhile, reflects a much narrower, more risk-averse corporate philosophy. IB invests customer funds exclusively in government bonds and repos (money market instrument), cash bank deposits with major banks and A-rated money market funds (in which IB invests less than 2% of customer funds).

In addition, IB further limits its exposure to customer funds through the following credit policies:

• holding investments in highly liquid, short-term instruments.
• spreading customer funds across different major banks and parties so as not to be overly exposed to individual counterparties.
• analyzing risk factors through our Credit Committee of Counterparty Financial Conditions and, if circumstances permit, permitting investment enforcement with or through a counterparty.

IB's investment policy is very conservative. Their strict adherence to guidelines when investing client funds minimizes our and your risk in uncertain credit environments.