Electronic trading major Interactive Brokers LLC has agreed to pay a fine of $475,000 as a part of a settlement with Nasdaq.
This matter arose from an investigation initiated by Nasdaq Enforcement based on referrals received by Nasdaq MarketWatch.
As a result of its investigation, Nasdaq Enforcement determined that between January 1, 2020 and June 2, 2021 (the “Relevant Period”), the firm incorrectly processed five corporate actions due to a combination of system and supervisory deficiencies, in violation of Nasdaq Rule General 9, Sections 20(a) and 1(a).
In addition, in certain scenarios, Interactive Brokers’ risk management controls and supervisory procedures were not reasonably designed to prevent the entry of erroneous orders, in violation of Section 15(c)(3) of the Securities Exchange Act of 1934 (“Section 15(c)(3)”);…
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