Washington, D.C. – Interactive Brokers Corp. and Interactive Brokers LLC have agreed to a $20 million penalty for failing to comply with CFTC recordkeeping and supervisory regulations, the Commodity Futures Trading Commission announced Friday.
The CFTC order details that, from at least 2019 through the present, the firms failed to prevent employees – including those in senior positions – from using unapproved communication methods like personal text messages and WhatsApp for business-related correspondence. These communications, which pertained to the firms’ CFTC-registered businesses, were not properly maintained or preserved, hindering the CFTC’s ability to access them when requested.
According to the order, the use of these unapproved methods directly violated Interactive Brokers’ internal policies prohibiting such communication. Notably, some supervisory personnel responsible for enforcing these policies were also found to be utilizing these same unapproved channels for business dealings.
The settlement requires Interactive Brokers to cease and desist from further violations of recordkeeping and supervision requirements and to undertake specific remedial actions. The firm has admitted the facts detailed in the CFTC’s order.
This action is part of a broader CFTC crackdown on firms failing to maintain proper communication records. Since December 2021, the CFTC has levied $1.117 billion in civil monetary penalties against 20 financial institutions for similar violations of recordkeeping and supervision rules.
The Securities and Exchange Commission (SEC) also announced a parallel settlement with Interactive Brokers on Friday, imposing its own civil monetary penalty for related recordkeeping and supervision violations.
The CFTC’s enforcement team included Devin Cain, Alejandra de Urioste, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
Related Federal Cases
- Shelby Sherrod Petties, Failure to Register as Sex Offender, North … · Washington
- Joshua Lee Hernandez, Capitol Assault, District of Columbia 2021 · Washington
- Bryan Rice, Fentanyl & Gun Crimes, District of Columbia 2024 · Washington
- D.C. Woman, Covid-19 Relief Heist, District of Columbia 2024 · Washington
- DeAngelo Wayne McNeil, Gun & Crack Cocaine, District of Columbia 2024 · Washington
