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Showing posts with the label Interactive Brokers

Help us and complete a short survey regarding problems with Sberbank ADR cash distribution

EAHCISS has been following the cash distribution by JPMorgan, as a result of the liquidation of the shares underlying the Sberbank ADRs (see https://news.eahciss.org/2026/06/jp-morgan-liquidated-shares-underlying.html?m=1 ), closely. We decided to give the process various weeks and many investors have now received the cash distribution. However many brokers have not yet credited the cash or wrongfully claim that the cash has been frozen due to sanctions. EAHCISS has set up a small survey to get a more precise overview of the current issues and will help us to determine which parties should be contacted by EAHCISS to increase pressure to distribute the payments. Please complete the survey if you possessed Sberbank ADRs at the time of liquidation by JPMorgan and share the survey with other investors. The survey can be accessed via this link: https://forms.gle/HRjTDbpKMrZDgBFP7 We plan to publish the results next week.
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Compensation from broker for Russian CFD (contract for difference)

The UK Financial Ombudsman has ordered Interactive Brokers (IB) to compensate an investor that invested in a Russian CFD (contract for difference). In this case the CFD was for 10.000 Sberbank ordinary shares. Interactive Brokers refused to close the position because they could not trade the underlying Sberbank shares Interactive Brokers had bought to cover the CFD contract. From March 2022 onwards, IB raised the margin required for the position to 100%. By August 2024 the interest alone charged on the position had amounted to around USD $12,000.  The European Securities and Markets Authority (ESMA) introduced a margin close-out rule in 2018 that states that CFD providers have to close positions once the net asset value in the investor's account drops to 50% of the required margin. The Financial Ombudsman ruled that Interactive Brokers was required to stop charging interest and other charges on the CFD position once they had to close the position on the basis of the ESMA 50% margin...
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Payment of Sberbank dividends displayed in Interactive Brokers

Interactive Brokers has today started to display the payment of Sberbank dividends in the accounts of investors that hold ordinary Sberbank shares via Interactive Brokers (not ADRs). We have confirmed that the dividends over 2024 today showed up in these accounts of clients of Interactive Brokers. The process in which Interactive Brokers displays the dividends confirms the procedure following from the Central Bank of Russia decision that mandates that dividends that are not claimed via the Russian custodian (which is Raiffeisenbank Russia for Interactive Brokers) are forcefully credited to the type C account of the Western nominee holder (in this case Interactive Brokers LLC).
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