How to calculate the interest on margin financing and securities lending

Interest on financing is calculated on the actual amount of the account after settlement, interest = the amount owed on the account after settlement * daily interest rate, minimum of $0.01. There is no interest if less than $0.01.

If a customer uses financing to purchase a stock, he or she owes cash. Since the U.S. stock market settles on T+1 day, the account actually owes money on the first trading day after the transaction is completed.

1. There are two ways to repay the financing arrears

First, selling shares. After selling shares, settlement needs to be completed on T+1 days, so on T days after selling shares, the account will still be in arrears, and interest will accrue (4.8% annualized), minimum $0.01.

Second, deposit. Customers will be given priority to deposit funds to cover the outstanding balance, and interest will not accrue on the T-day for the amount of the outstanding balance.

2. Repayment of securities financing methods

Repurchase of shares corresponding to the facility is required for repayment, and no interest will accrue upon completion of settlement if the shares are still in the settlement period.

Note: The financing rate may be adjusted periodically toaccommodate changes in currency exchange rates.