Electronic trading major Interactive Brokers Inc (NASDAQ:IBKR) has announced the launch of the Stock Yield Enhancement Program (SYEP) Derivatives for investors in Australia, aimed at providing eligible clients with the opportunity to earn extra income in their accounts.

Clients who agree to lend their shares of stock to Interactive Brokers Australia in connection with the SYEP Derivatives program can expect to receive cash collateral deposits and returns equivalent to the revenue that may have been earned if the shares were lent out.

“We are always looking for ways to deliver more value to our clients, and the SYEP Derivatives program fits that bill,” says Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “Our clients can enjoy extra income without having to sacrifice control over their stock, and we are proud to offer this innovative program.”

The SYEP Derivatives program is available to clients who have been approved for a margin account or have a cash account with equity greater than USD 50,000 (or equivalent). Once clients grant Interactive Brokers Australia the authority to enter into SYEP Derivatives, the company will manage everything from there. Interactive Brokers Australia will examine clients’ stock portfolios and enter into SYEP Derivatives with eligible clients, depositing cash collateral in their accounts and paying them a fee reflected as interest.

Transparency is key with SYEP Derivatives. Clients will see the rate they are being paid on the collateral value and the fee paid to Interactive Brokers Australia for its services, which will generally not exceed 50% of the revenue that could have been earned if the shares were onward lent.

Clients who have their shares loaned out in connection with SYEP Derivatives will continue to own the stock as the beneficial owner, meaning they retain market risk and will recognize any profit or loss if the stock price changes. The loaned shares will appear on the clients’ account statements, and they can sell their shares or withdraw the authority to enter into SYEP Derivatives at any time without restriction.

The SYEP Derivatives program offers Interactive Brokers clients a new way to earn extra income from their stock portfolios without sacrificing control or transparency.