Stock Yield Enhancement Program
The Stock Yield Enhancement Program (SYEP) provides you with the ability to lend your shares in exchange for an interest-based fee. Below, you will find the instructions explained step by step. As a shortcut it is possible to be redirected directly to the LYNX+ Settings page by this link.
Login LYNX+
- Open your browser and visit the LYNX+ website
- Enter your username and your password
- Authenticate yourself via two-factor authentication
Open LYNX+ settings
To open the Settings in LYNX+, click on the profile icon in the top right corner and select Settings.
Request activation
You can select Request activation in the account settings. This opens the request form you have to sign for subscribing to the Stock Yield Enhancement Program.
If you do not find the Request activation button, your account might not meet all the requirements for participation in the Stock Yield Enhancement Program. You may see the message non eligible if the account does not meet the required criteria. Alternatively enable/disable if the account is already participating or has previously participated in the program.
Please find the more information in the FAQ section.
Sign SYEP request form
Up next, you see the request form. Starting with a short introduction that clarifies what the Stock Yield Enhancement Program is.
Followed by a risk disclosure that needs to be accepted by sending the request. To do so, please sign the request by typing in your name as shown.
Herewith, you enroll to the Stock Yield Enhancement Program. The program is turned on the next business day.
If you unsubscribe from the Stock Yield Enhancement Program, you will have to wait 90 days before you can apply for the program again.
FAQ
Interest is accrued daily and is paid out on the 3rd day of the following month. You can see interest received in the platform LYNX+ by following these instructions:
- At the bottom of the Portfolio page, you will find all Cash Movements in your account for the selected period.
- Navigate to the Inflow column. A detailed overview of all incoming cashflows for the indicated period will be displayed. If your overall interest payments were negative for selected time period, then the SYEP Interest details will be found in Outflow column.
- Click on the arrow next to Interest to view all of the interest(s) received for the indicated period and it will be displayed per month.
More detailed information can be also found in the Activity statement. In this statement you can find 3 dedicated sections to the SYEP: Stock Yield Enhancement Program Securities Lent, Stock Yield Enhancement Program Securities Lent Activity and Stock Yield Enhancement Program Securities Lent Interest Details.
Alternatively it is still possible to subscribe to the Stock Yield Enhancement Program within the Client Portal. First of all you need to open the Client Portal. After logging in you select Welcome in the menu at the top right corner and select Settings.
Search the left section for the Trading Section and then click on Stock Yield Enhancement Program. You can now select and continue to subscribe to the program. Then, you will be presented a risk disclosure and ask to confirm it. Please acknowledge the warnings and sign by typing in your name as shown. Herewith, you enroll to the SYEP. The program is turned on the next business day.
Follow the aforementioned steps to navigate to the Settings and then unsubscribe from within the settings section.
When the following conditions are met, accounts can participate:
- Cash account with a minimum equity of $50,000 at the time of subscribing or an equivalent amount in another currency)
- Margin account
The Stock Yield Enhancement Program does not guarantee that all eligible shares in a specific account will be lent. Certain securities may not have a market at an advantageous price, IB may not have access to a market with willing borrowers, or IB may choose not to lend your shares.
Of course, there are some aspects you should consider before deciding to participate in the Stock Yield Enhancement Program lending program. Lent shares are not protected by the Securities Investor Protection Act of 1970. From the SEC, this requires the broker to be able to provide cash collateral of the same value as your shares for protection.
Lent shares are also commonly used to go short, or speculate in a drop in the price of the stock. This can potentially affect the value of your shares. Also, you no longer have voting rights over your loaned shares; these are held by the borrower of your shares.
As soon as you sell your shares, you lose the right to receive consideration for the previously loaned shares; after all, you no longer own your shares. This is also the case if you purchase additional shares (or repurchase funds) and, as a result, your shares are no longer fully funded.
Disclaimer:
The author’s remuneration is not directly or indirectly related to his/her viewpoints or ideas.
Neither do any other conflicts of interest apply in accordance with the policy around the conflicts of interests of LYNX.
The information on this webpage is neither considered as investment advice nor an investment recommendation. The page shows data that has been prepared by LYNX as general information / marketing information for private use by investors but is not intended as a personal recommendation of particular financial instruments or strategies and does not take into account the individual investor’s particular financial situation, investment knowledge and experience, investment objectives and horizon, or risk profile and preference.
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