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IB Fined by CFTC
- Thread starter LondonUSTrader
- Start date
Stick with TDA and Optionsxpress.
Quote from zdreg:
there will be a time that the CFTC will regret its rules about segregation ONLY in $US.
the CFTC is behind the times.
"Exactly," said Corzine, "I have customers' money in European bonds. Customers' money is still there, it's just not in US dollars, but in European bonds."
stick with JP Morgan and Goldman SachsQuote from tickmagnet:
Stick with TDA and Optionsxpress.
or better yet start investing in the CFTC (or at least start bribing them)
you guys crack me up
I get fined 100k because I built a barbeque smoke house on a wetland, and you all side with the EPA?
Quote from IB-AN:
Below is our response which hopefully provides some prospective as to this press release. In particular, it's worth noting that this matter was uncovered by IB itself and self reported immediately thereafter and that IB at all times maintained segregated assets well in excess of that required.
Interactive Brokers LLC recently agreed with the Commodity Futures Trading Commission ("CFTC" or "Commission") to pay a fine of $225,000 in connection with the denomination of currency in which segregated funds were held at several clearinghouses and banks prior to June 2012.
Interactive Brokers conducts a global customer business on U.S. and non-U.S. exchanges, and its U.S. and worldwide customers transact business on over 100 different markets in 20 different countries and in 19 different currencies.
Because of the unusual interest rate environment beginning in late 2011, Interactive Brokers began to hold a portion of segregated funds in Japanese yen and Swiss francs, rather than in U.S. dollars. Interactive Brokers was not aware at the time that this was a violation of CFTC rule 1.49.
The funds were always held in proper segregated accounts and were calculated daily to be the correct amount in U.S. dollar equivalents, but should not have been held in yen and francs.
Interactive Brokers discovered the violation itself during a review of its procedures. Interactive Brokers immediately corrected the error and self-reported the issue to the CFTC in May 2012. Interactive also agreed to settle certain related books and records and supervisory charges with the Commission.
In the Settlement Order, the CFTC noted that "Interactive Brokers independently implemented corrective measures after discovering the violations; and IB cooperated with the Division in investigating the circumstances."
The CFTC also noted there was never any deficiency in segregated funds. To the contrary, the CFTC stated: "During the time period of the violations* * * IB had excess segregated funds on deposit * * * of between $ 48.4 MM and $ 455.3 MM."
Interactive Brokers General Counsel David Battan stated: "We discovered this issue during a review of our procedures and we immediately corrected it by converting certain funds held in non-US currencies back into dollars. We self-reported the issue to the CFTC right away and cooperated with their staff during its inquiry. During the entire period, we had large amounts of excess funds segregated for our customers. We kept anywhere from $48 million to over $400 million more than we were required to in customer-protected accounts."
Interactive Brokers was recently named 2013 Best Online Broker and Best for International Traders by Barron's Magazine. Interactive Brokers' parent company has over $4.8 billion in equity capital and is publicly traded under the symbol IBKR.
If this is happening to you guys, I've got things to worry about with regard to some of my ambitions.
wft IB...
please explain why customer segregated funds had to put into anything but what the customer was in.
Until this is explained... I think we all should have a trust issue.
I remember when this corzine thing came about there was an accusation you all were hypothecating (spelling - tense) too.
Those words on the account...
"customer segregated"
do they not mean anything.
Its seems like regulators have allowed a complete fraud.
Please explain... in in clear language.
And by the way... who got the profits these nightly trades.
please explain why customer segregated funds had to put into anything but what the customer was in.
Until this is explained... I think we all should have a trust issue.
I remember when this corzine thing came about there was an accusation you all were hypothecating (spelling - tense) too.
Those words on the account...
"customer segregated"
do they not mean anything.
Its seems like regulators have allowed a complete fraud.
Please explain... in in clear language.
And by the way... who got the profits these nightly trades.