Interactive Brokers Fined $1.75 Million for Lapses When Oil Fell
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Interactive Brokers Group Inc. will pay a $1.75 million fine after the U.S.’s futures regulator alleged it failed to adequately prepare its electronic trading system before oil’s historic plunge in April 2020.
When the price of oil dropped below zero on April 20, 2020, the negative price wasn’t displayed for Interactive Brokers customers nor could they place limit orders to buy or sell, according to a Tuesday statement from the Commodity Futures Trading Commission. The flaw impacted hundreds of customer accounts that held oil futures, triggering losses that exceeded $80 million.