LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
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.