Interactive Brokers (U.K.) Limited Disclosure under the Capital Requirements IV Directive

Interactive Brokers (U.K.) Limited ("IBUK") is authorised and regulated by the Financial Conduct Authority (FCA), registration number 208159 and is a part of the Interactive Brokers Group of companies ("IB Group"). 

The senior management of the firm is made up of a Board of Directors (the "Board"). The Board is comprised of experienced individuals that have an appropriate and diverse set of skills in the areas of compliance, management, trading, operations and finance.  

The Board has overall responsibility over the management of IBUK. The Board is composed of a Chairman, three directors plus a company secretary. The Chairman and the CEO are distinct individuals. Our Chairman provides overall leadership to enhance the effectiveness of the Board and has a firm understanding of the mission of the company and IB Group and of the operational challenges of our business. The Board's directive consists of, but is not limited to, creating and implementing the company's strategy and governance and assessing the firm's risks. 

The Board makes use of a variety of resources and persons from within our firm and the IB Group companies to oversee, operate, manage risk and implement the firm's strategy through separate committees (e.g., CASS, Compliance and Audit). Implementation is carried out primarily by developing systems that monitor our risks and run our operations, and by creating automatic reporting tools and analysis that assist us in determining the appropriate measure of capital sufficient to meet operating, regulatory and risk factors faced by IBUK.

On an as needed basis, directors may seek independent professional (legal, regulatory and financial) to help them deal more effectively with challenges that may arise and to be well informed by industry experts. To ensure the integrity of IBUK's accounting and financial reporting, the Board engages independent, qualified auditors and makes use of internal auditors to conduct audits and oversee its operations. 

Quarterly, the Board meets to assess and evaluate its risks, operations, governance, capital requirements, systems and controls and to determine overall business strategy. 

The corporate governance framework adopted by IBUK is sufficiently robust for the management of the risks to which the firm is exposed. The Board believes that IBUK adequately identifies and controls its risks based on its size and internal organization as well on the nature and complexity of IBUK's activities.  Through IBUK's real-time risk management processes the firm is able to identify and curtail threats to its business. Risk measurement and risk control tools are integrated into the processes and software used to run the business.  

IBUK has been consistently profitable over the past seven years.  It maintains low fixed expenses and the firm's variable expenses are proportional to the volume of the business it conducts and, therefore, are correlated to the revenues IBUK earns.  IBUK maintains a liquid balance sheet with excess capital. 

IBUK values its reputation and conducts business with integrity. Through a series of debriefings and educational efforts, both internally and externally (e.g., through our IB Group affiliates and advisors), our Board members keep up to date on the latest regulatory requirements and best practices in the industry. Since acquiring its regulatory registration in 2002, IBUK and all of its Board members have been in good standing with its regulator, the FCA (and its predecessors). 

In conclusion, it is the opinion of senior management of IBUK that the IBUK complies with the Capital Requirements Directive (CRD).