Euro Pacific Bank

Margin Requirement — New Calculation: April 28, 2022

Effective 29 April 2022, Interactive Brokers1 will implement a new methodology to measure margin requirements for accounts holding a concentrated position in a low cap stock(s), including all holdings under the same issuer.

New Methodology

Currently, margin requirements for accounts holding a concentrated position in a low cap stock are determined using a proprietary Value at Risk (VAR) methodology, which calculates the theoretical worst-case loss of the position, given a range of price and implied volatility changes. The price scanning range for a given security is the greater of an individual portfolio’s concentration margin rate and the result of a stress test that simulates a price change reflective of a $500 million decrease in market capitalization.

The new methodology applies the same VAR framework, but Interactive Brokers will apply the greater of the individual concentration margin rate or low cap stress test to each asset.

For example, below are two assets held in a single account, issued by the same issuer with the same value, where the market capitalization of the issuer is $715 million.

  • Asset A: Concentration rate is 100%
  • Asset B: Concentration rate is 30%

Under the present calculation, the margin requirement for the portfolio would be based on the $500 million decrease in market capitalization, or approximately 70% of the market value of the 2 assets. Under the new concentration methodology, Asset A minimum price scan would remain at 100% and Asset B would increase to 70%, with an effective margin rate of 85%.

Recommended Actions

To evaluate the new change’s full impact on your portfolio and ensure the accounts remains margin compliant, please see KB Article 2957: Risk Navigator: Alternative Margin Calculator, and/or from the margin mode setting in Risk Navigator, select “MARGIN 20220429”.

Accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance. Therefore, please make necessary adjustments to your portfolio to comply with Interactive Brokers’ new policy.


1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

LAST UPDATED: OCTOBER 31, 2024

October 31, 2024: Receiver's Report.

October 16, 2024: Receiver's Notice.

October 04, 2024: Migration Update.

April 16, 2024: Receiver's Reports.

April 13, 2024: Migration & Liquidation update.

March 11, 2024: Receiver's Reports.

March 03, 2024: Migration & Liquidation update.

February 19, 2024: Migration & Liquidation update.

February 02, 2024: Migration & Liquidation update.

November 21, 2023: Migration Update (Opt-in Only).

November 20, 2023: Progress Report (Opt-out Only).

September 22, 2023: Report & Communication Portal.

September 01, 2023: Migration & Liquidation update.

July 20, 2023: Migration & Liquidation update.

June 23, 2023: Migration & Liquidation update.

June 17, 2023: Receiver's report.

May 31, 2023: Migration & Liquidation update.

May 05, 2023: Migration & Liquidation update.

April 20, 2023: Liquidation update- Action required.

March 31, 2023: Migration & Liquidation update.

March 8, 2023: Migration & Liquidation update.

January 27, 2023: Correspondent bank update.

December 16, 2022: Comprehensive FAQ is published.

December 05, 2022: Migration & liquidation update.

November 01, 2022: Mutual funds & outgoing wire requests update.

October 21, 2022: Update on Opt-out deadline - Extended.

October 14, 2022: Customer Update & Townhall.

October 8, 2022: Update on opt-out deadline for EPB clients who do not wish to migrate their account to Qenta Inc.

September 30, 2022: Update on bank liquidation, pending transactions, and migration of assets to Qenta Inc.

September 28, 2022: Update on pending transactions for clients opting out of Qenta Inc. migration.

September 16, 2022: Update on pending transactions for clients opting out of Qenta Inc. migration.

September 8, 2022: Qenta has emailed a welcome letter to all EPB clients. You can read a copy of it here.

September 2, 2022: Update on pending transactions, brokerage, and account migration.

August 29, 2022: Euro Pacific Bank liquidation has commenced. Please read our formal instructions here as it is time-sensitive.