IB: NYSE disciplinary action

Discussion in 'Retail Brokers' started by rayl, Oct 11, 2007.

  1. rayl

    rayl

    I noticed yesterday in a Reuters article that:

    NEW YORK, Oct 10 (Reuters) - NYSE Regulation said on Wednesday it disciplined nine member firms and eight individuals in October for various securities violations.
    ....
    Interactive Brokers (IBKR.O: Quote, Profile, Research) was fined $250,000 for trading violations and financial and operational deficiencies.
    ....

    http://www.reuters.com/article/marketsNews/idUKN1024448220071010?rpc=44


    But have not been able to find further details. Anyone know the fuller story?
     
  2. HSBC Securities, Citigroup Global Markets, RBC Capital Markets, Merrill Lynch, Susquehanna and UBS also fined.

    We probably won't get much more detail on this. Given the other names on the list, it's just a matter of business as usual - try this or that knowing that if they get caught, it's a slap on the wrist and a wink.
     
  3. rayl

    rayl

    Unlike that 2004 NYSE disciplinary action over failure to supervise abusive odd-lot trading practices and failing to track oral customer complaints.... So I am not a NYSE rules expert to know exactly when an action gets reported with full details vs. no details. Perhaps that's the other question I had.
     
  4. JackR

    JackR

    Most of the complaints seem like administrative ommissions or the need to get their software tweaked. I like this one.

    In addition, during the period March 2003 through August 2003 (“the Second Relevant Period”), Interactive introduced for execution on the NYSE thousands of odd-lot orders that aggregated 100 shares or more without having those orders consolidated into round-lots as far as possible. Specifically, five of Interactive’s customers entered odd-lot market orders in the same security on the same side of the market in quick succession, the majority of which were entered within the same second, thereby circumventing the round-lot market.

    Seems to me I read about that scheme here on ET.

    Jack
     
  5. rayl

    rayl

    Thanks.

    So it's almost the same as the 2004 action (minus the lack of tracking of orally received reportable customer complaints)!

    Funny thing -- I recall a thread where someone was complaining about too many restrictions on odd lots.... Seems like NYSE is saying IB is still too loose.