NOTICE OF SUMMARY ACTION

FILE NO.:

CME DQA-23-1196 

MEMBER:

INTERACTIVE BROKERS LLC

RULE VIOLATIONS:

536.B GLOBEX ORDER ENTRY

1.  GENERAL REQUIREMENT

Each Globex terminal operator entering orders into Globex shall accurately input for each Application Message all fields required to be populated by the CME iLink® Message Specifications set forth in the CME Group Client Systems Wiki in effect at the time, including, but not limited to the: operator ID; price; quantity; product; expiration month; CTI code; manual order indicator; and account number (except as provided in Section C), and, for options, put or call and strike price.

Rule 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS 

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID. 

FINDINGS:

During the period of January 1 through March 31, 2023, Interactive Brokers, LLC violated Rule 536.B.1 by submitting inaccurate Manual Indicator values on Globex messaging.  Additionally, Interactive Brokers, LLC violated Rule 576 by submitting Operator IDs representing multiple Individual users, utilizing a Team Operator ID across shifts, submitting an incorrect Operator ID, and failing to demonstrate an effective means to monitor an automated trading system at all times while in operation.

PENALTY:

On September 13, 2023, Interactive Brokers LLC, pursuant to Rule 512 (“Reporting Infractions”), was issued a $10,000 fine for its violations of Rule 536.B.1 and Rule 576. 

EFFECTIVE DATE:

September 29, 2023