Interactive Brokers

FINRA fined Interactive Brokers $5.5 million for violating Regulation SHO.

As a result of failing to act on Reg SHO red flags, Interactive Brokers did not timely close-out more than 2,300 fails-to-deliver, accepted and executed short orders in those securities without first borrowing (or arranging to borrow) the security approximately 28,000 times and permitted the execution or display of more than 4,700 short sale orders in covered securities at a price less than or equal to the current national best bid.