Amounts to a small slap on the wrist for Interactive Brokers, but shows the CFTC is cracking down on safety-of-client-fund issues.
The CFTC has assessed a $225,000 fine against Interactive Brokers (Nasdaq:IBKR), a leading U.S.-based online brokerage which also is the #5 retail FX brokerage in the U.S. The CFTC cited Interactive Brokers for:
- failing to calculate the amount of customer funds on deposit,
- failing to calculate the amount of funds required to be on deposit in customer segregated accounts,
- failing to maintain sufficient U.S. dollars in customer segregated accounts in the United States to meet all USD-denominated obligations, and
- supervision failures.
While the $225,000 fine to IBKR amounts to a small slap on the wrist for the company which has a market value of $700 million, it is a loud message to IBKR and other regulated firms that they had better cross all T’s and dot all I’s when it comes to securing client funds.
For the full CFTC press release click here.
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