September 28, 2021

Interactive Brokers LLC has been ordered to pay $1.75 million in civil monetary penalty and $82.57 million in restitution for violating CFTC Regulation 166.3 in failing to supervise the handling of customer accounts.  According to the CFTC, Interactive Brokers was aware of the possibility of negative oil futures prices but failed to prepare and configure its electronic trading system to display those prices or allow customers to place buy and sell orders with negative-priced limits.  Subsequently, customers suffered losses in excess of $82.57 million.  CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets,