• NOTICE OF DISCIPLINARY ACTION

      • #
      • 17-CH-1704
      • Notice Date
      • 28 July 2017
      • Effective Date
      • 28 July 2017
    • CHICAGO MERCANTILE EXCHANGE

      NOTICE OF DISCPLINARY ACTION

      FILE NO.: 17-CH-1704                              

      MEMBER FIRM: Interactive Brokers LLC

      CME RULES:

      930.E. CALLS FOR PERFORMANCE BOND

      1. Clearing members must issue calls for performance bond that would bring an account up to the initial performance bond requirement: a) when performance bond equity in an account initially falls below the maintenance performance bond requirement; and b) subsequently, when performance bond equity plus existing performance bond calls in an account is less than the maintenance performance bond requirement.

      Such calls must be made within one business day after the occurrence of the event giving rise to the call. Clearing members may call for additional performance bond at their discretion.  Notwithstanding the foregoing, a clearing member is not required to call for or collect performance bond for day trades.

      930.F. RELEASE OF EXCESS PERFORMANCE BOND

      Subject to exceptions granted by Exchange staff, clearing members may only release performance bond deposits from an account if such deposits are in excess of initial performance bond requirements.

      FINDINGS: Pursuant to an offer of settlement in which Interactive Brokers LLC neither admitted nor denied the rule violations upon which the penalty is based, on July 27, 2017, the Clearing House Risk Committee found that Interactive Brokers LLC violated CME Rules 930.E.1. and 930.F.

      PENALTY: In accordance with the settlement offer, the Clearing House Risk Committee imposed a $50,000 fine.

      EFFECTIVE DATE: July 28, 2017