StockFetcher Forums · General Discussion · Interactive Brokers gets tagged by CFTC<< >>Post Follow-up
3,839 posts
msg #112707
Ignore Kevin_in_GA
4/9/2013 3:42:11 PM

WASHINGTON (MarketWatch) - The nation' s commodity regulator on Tuesday ordered online brokerage firm Interactive Brokers of Connecticut to pay a $225,000 fine for failing to maintain enough U.S. dollars in its customer accounts, the second time in a year the firm was fined by the agency.

The Commodity Futures Trading Commission allegedly found that between Sept. 21, 2011 and May 8, 2012, Interactive Brokers "improperly" covered its commodity futures and options customer obligations with Japanese yen and Swiss francs to "maximize its interest earnings."

The CFTC also allegedly found that before May 2012, Interactive Brokers, which has over 140,000 customer accounts, failed to train its employees and officers to prevent the violations. Interactive Brokers settled CFTC charges in July, 2012, for failing to diligently supervise the handling and reporting of accounts.

268 posts
msg #112714
Ignore novacane32000
4/10/2013 1:38:02 PM

Anyone with an IB acct concerned about this?

I just opened an acct recently.

352 posts
msg #112715
Ignore BarTune1
4/10/2013 9:00:36 PM

I don't think this much of an issue and the fine is only minor. Margin requirements generally allow for a relatively significant cushion before the brokerage would ever risk losing money as a result of client losses. They often allow some leeway with larger clients before making margin calls .... maybe they were a little too lose with their policy. I've run negative margin several times without a call - however, the negative margin has not been significant nor have I been in that position for more than 2 days.

StockFetcher Forums · General Discussion · Interactive Brokers gets tagged by CFTC<< >>Post Follow-up

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