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July 08, 2013
NFA fines Connecticut firm Interactive Brokers $300,000 in settlement of two Complaints
July 8, Chicago - National Futures Association (NFA) has issued a $300,000 fine against Interactive Brokers (Interactive), a futures commission merchant Forex Dealer Member of NFA located in Greenwich, Conn. The Decision, issued by NFA's Business Conduct Committee, is based on Complaints filed on November 2, 2012 and July 5, 2013 and a settlement offer submitted by Interactive.
The 2012 Complaint alleged that Interactive violated NFA Bylaw 1101 by conducting futures business with non-NFA Members and violated NFA Compliance Rule 2-4 by allowing an introducing broker to act as a de facto FCM. In addition, the 2012 Complaint alleged that Interactive violated NFA Compliance Rule 2-9(a) by failing to diligently supervise its operations.
The 2013 Complaint alleged that Interactive violated NFA Financial Requirements Section 4 by failing to ensure balances held in a customer secured amount account--identified under Commodity Futures Trading Commission Regulation 30.7--were reported in the form and manner prescribed by NFA.
In addition to agreeing to pay a fine of $300,000, Interactive agreed to adopt and implement enhanced written procedures to ensure compliance with NFA Bylaw 1101. Also, the firm agreed to undertake a review of its open futures and retail forex accounts to determine whether Interactive is in full compliance with NFA Bylaw 1101 with respect to the account holders of all accounts opened prior to the date of Interactive's settlement offer and take prompt and appropriate action in those instances where the firm finds that it did not fully comply with the requirement of NFA Bylaw 1101.
Interactive neither admitted nor denied the allegations.