Interactive Brokers Group, Inc. Receives NASDAQ Notice of Non-Compliance with Listing

Discussion in 'Retail Brokers' started by dsharp9000, May 24, 2012.

  1. i have an account with ib and ever since mf global i get concerned about reports like this:

    Interactive Brokers Group, Inc. (the "Company") received a letter from the NASDAQ staff, on May 17, 2012, notifying the Company that it is non-compliant with NASDAQ Listing Rule 5250(c)(1) because its Quarterly Report on Form 10-Q for the period ended March 31, 2012 ("Form 10-Q"), filed with the Securities and Exchange Commission ("SEC") on May 15, 2012, has not yet been reviewed in accordance with Statement on Auditing Standards No. 100 ("SAS 100"), as required by Rule 10-01 of Regulation S-X. The NASDAQ letter also stated that the filing is incomplete because of the absence of the certifications required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

    whats further concerning is the following:

    NASDAQ Listing Rule 5250(c)(1) requires the Company to timely file all required periodic financial reports with the SEC. The Company is required to submit a plan to regain compliance to NASDAQ by July 16, 2012. If NASDAQ accepts the Company’s plan, an additional cure period of up to 180 calendar days from the filing’s due date, or until November 12, 2012, can be provided to allow the Company to regain compliance.

    So it could be until November of 2012 until we know the true financial condition of interactive brokers.

    I dont know what to make of this; but is concerning to me given what happen to mf global... perhaps its nothing to worry about; but would like hear what others think.
  2. Check the SEC filings for IB and you'll find one recently where they notified the SEC that their current reporting (I think their 10Q) was going to be late. It doesn't say why and I don't think they've issued a public statement about it. It could be something as minor as a key employee suddenly went on disability to something more major like they have to restate their financials for some reason. But at this point, don't lose any sleep over it.
  3. Retired


  4. I wouldn't worry about it.

    The multibillion dollar consolidated audit trail will take care of all that.
  5. Options12

    Options12 Guest

    Deloitte has raised a question regarding IBKR's classification of equity attributed to non-controlling interests. IBKR is seeking guidance from the SEC regarding the unresolved accounting interpretation. IBKR has indicated that they hope to receive the SEC's reply by June 15.

    The issue is described in the 8-K filed on May 15:

    For a better understanding, see this organization chart:

  6. I've been looking at that 10Q ever since it was late and it has been burning the back of my mind ever since. I just transfered the majority of my accounts to IB so it would really suck for them to be in trouble right now. It's sounding less and less as a "minor concern" the more these reports come out. I might withdraw some of the funds. Don't they know how touchy everyone is after MF Global? You just don't do this kind of thing. I'll read the article in more detail though.

    Having somebody from IB posting a clarification on accounting, however, certainly helps. I know it did in the past.
  7. Labor


    I noticed a worrying trend with IB some time ago. Ever since they were the only ones in industry to change the definition of last price traded.

    behind closed doors this was done to make timberhill division more profitable, and there is more. IB is doing hypo-thetication

    #1 change in meaning of last traded price
    #2 change in the way IB sweeps the count funds, making 100 k insurance questionable
    #3 unaddressed problems with their compliance statements

    And last but not least, IB platform really Pis** me off.

    Their last version MOSAIC feature scared the living Jesus out of me until I figured out how to close the damn thing.

    These are not good trends for IB
  8. I have no dog in this fight. Way back I opened an IB acct, at the same time as I opened a TOS acct. After experiencing, in a very short time, the yawning gap between IB's customer service and TOS's, I closed the IB acct.
    The only observation I have is that companies where the public has 100% of the economic interest and only 10% of the voting power don't do well over time.
    Anyone ever heard of Wang Computers? There's a reason for that.
    Facebook may wind up being another outstanding example. In contrast to, say, Apple.
    Anyway, if this chart is correct, it's not good news.
  9. I always say its better to be safe than sorry.
  10. i continue to have concern.... especially now that ib has not wieghed in on this is concerning.

    im closing all my margin accounts with ib... only thing left will be cash... i dont trade futures anyway.

    But is wierd that ib continues to bring up screens that i have to verify that i trade futures even though i do not.... when logging on to account mangement... it asks me to reverify account status with no way to back out of it.... that is concerning account status lists that i trade futures though i do not
    #10     May 31, 2012