U.S. futures regulator fines Interactive Brokers $1.75 million By Reuters
(Reuters) – The U.S. regulator for futures fined Interactive Brokers (1.75M) on Tuesday. This was in response to charges it had failed to properly prepare the electronic trading system prior to last year’s oil crisis.
On April 20, last year, customers were not able to see negative oil prices and were therefore unable to place limit order to purchase or sell. The Commodity Futures Trading Commission, (CFTC), said that the problem was found.
Interactive Brokers also aided in reducing penalties.
Vincent McGonagle, Acting Director for Enforcement, stated in a statement that “this enforcement action demonstrates the CFTC’s commitment to holding registrants accountable for how they handle customer accounts.”
On April 20, futures turned negative for the first time in history, crushed by a collapse in oil demand as the COVID-19 pandemic derailed the global economy.
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