Interactive Brokers
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Headquarters at One Pickwick Plaza | |
Public | |
Traded as | NASDAQ: IBKR |
Industry | Financial services |
Founded | 1993 |
Headquarters |
Greenwich, Connecticut, United States |
Area served | Worldwide |
Key people |
Thomas Peterffy (Founder, Chairman & CEO) |
Products | Direct market access to stocks, options, futures, forex, bonds, ETFs and CFDs |
Services | Online brokerage, direct-access trading |
Parent | Interactive Brokers Group |
Website |
www |
![](../I/m/PeterffyHandheld2016.png)
Interactive Brokers LLC (IB) is a U.S.-based electronic brokerage firm. It is the largest U.S. electronic brokerage firm by number of daily average revenue trades;[1] it also is the leading forex broker.[2] The company is headquartered in Greenwich, Connecticut and has offices in Chicago, Hong Kong, Shanghai (a representative office), Sydney, and Zug. It is a subsidiary of Interactive Brokers Group, Inc.,[3] which has offices in thirteen countries.
In May 2016, client equity with the broker was $ 72 billion.[4] According to Thomas Peterffy, CEO of Interactive Brokers Group, Inc., a majority of it is managed by IB's institutional client base: Hedge Funds, Proprietary Trading Groups, Advisors and Introducing Brokers/Banks.[5]
According to research firm Preqin in 2015, Interactive Brokers figures in the list of top 10 prime brokers servicing Hedge Funds in the world.[6]
IB is regulated by the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA), New York Stock Exchange, Financial Conduct Authority and foreign regulatory agencies.[7] The company is a provider of fully disclosed and non-disclosed broker accounts and provides correspondent clearing services to 200 introducing brokers worldwide.[8] It has offered direct market access on Australian contracts for difference since 2008.[9]
History
Interactive Brokers was founded in 1993 by Thomas Peterffy, an early innovator in computer-assisted trading. He introduced electronic devices to options floor trading at the Chicago Board of Trade and went on to develop related trading technologies before entering the electronic brokerage business.[10][11][12]
In 1983, the company created the first handheld computers used for trading. As Peterffy explained in a 2016 interview, the battery-powered units had touch screens for the user to input a stock price and it would produce the recommended option price,[13] and it also tracked positions and continually repriced options on stocks.[14]
Litigation and arbitration decisions
In July 2012, Interactive Brokers paid $700,000 to settle charges (by CFTC) that it has "violated reporting rules" and "failed to 'diligently' supervise the handling of accounts".[15]
In February 2015, a FINRA arbitration panel ruled that the firm must pay $667,000 for customer losses resulting from the way the firm handled margin calls.[16]
In April 2015, the trading firm was required by an arbitrator to pay $1,200,000 in damages to a customer because the firm failed to stop “reckless trading” by a trust fund overseer which reduced $800,000 to $75,000.[17]
See also
References
- ↑ "Press Release: Interactive Brokers Adds IEX as an Electronic Trading Venue". The New York Times. Business Wire. April 3, 2014. Retrieved July 2, 2014.
- ↑ "Press Release: Interactive Brokers Leads Industry in Percentage of Profitable Customer Forex Accounts". The Wall Street Journal. Business Wire. February 6, 2013. Retrieved July 2, 2014.
- ↑ "Interactive Brokers". Retrieved 21 July 2015.
- ↑ "Interactive Brokers". Retrieved 30 May 2016.
- ↑ "Interactive Brokers Group's (IBKR) CEO Thomas Peterffy On Q1 2016 Results". Retrieved 22 April 2016.
- ↑ "Improving Prime Brokerage Market Share Should Lift Profits At Goldman, Morgan Stanley". Retrieved 28 May 2016.
- ↑ "IB Fact Sheet". Interactive Brokers. Interactive Brokers Group. Retrieved June 23, 2014.
- ↑ "Press Release: Interactive Brokers Rated #1 Online Broker by Barron's for the Third Year in a Row". The Wall Street Journal. Business Wire. March 19, 2014. Retrieved July 2, 2014.
- ↑ "Press Release: Interactive Brokers Launches Contracts for Difference in Australia". Bloomberg News. Business Wire. October 21, 2008. Retrieved July 2, 2014.
- ↑ McGee, Susan (November 10, 2005). "A Breed Apart". Institutional Investor Magazine (November 2005). Institutional Investor LLC. Retrieved June 27, 2014.
- ↑ Electronic trading innovator predicts brokerage industry cull Financial Times, 17 May 2016
- ↑ Company Overview of Interactive Brokers LLC, Bloomberg.com; retrieved 22 May 2016
- ↑ Peterffy, Thomas (April 25, 2016). "Pro Talks: Billionaire Wall Street Pioneer Peterffy" (Interview). Interview with Mike Santoli. CNBC. Retrieved June 21, 2016.
- ↑ "About the Interactive Brokers Group". Interactive Brokers Group. January 1, 2016. Retrieved June 21, 2016.
- ↑ "UPDATE 2-Interactive Brokers to pay $700,000 to settle charges". Reuters. 2012-07-25. Retrieved 2016-05-20.
- ↑ Barlyn, Suzanne (2015-02-18). "Interactive Brokers must pay $667,000 for portfolio selloff mishap". Reuters.
- ↑ Barlyn, Suzanne (2015-04-28). "Interactive Brokers ordered to pay $1.2 million for trustee's 'reckless' trades". Reuters.
External links
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- Business data for Interactive Brokers LLC: Google Finance
- Yahoo! Finance
- Hoover's
- Reuters
- SEC filings
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