Interactive Brokers Fined $150,000 by FINRA Over Market Data Display Violations

The Financial Industry Regulatory Authority (FINRA) has fined electronic trading firm Interactive Brokers LLC $150,000 and issued a censure as part of a settlement related to violations of the Vendor Display Rule.

According to FINRA, between December 2017 and March 2022, the firm failed to provide certain customers with a consolidated display containing all required market data elements, as mandated under Rule 603(c) of Regulation NMS. The issue affected users of the firm's desktop, web-based, and mobile trading platforms who did not subscribe to real-time market data or purchase on-demand "snapshots."

For these customers, Interactive Brokers displayed incomplete information—such as last sale prices without corresponding volume, market identification, or the national best bid and offer (NBBO)—and the displayed data was delayed by 15 minutes. FINRA said this meant the firm's data did not reflect real-time prices, sizes, or market identifications as required.

In March 2022, Interactive Brokers began providing all customers with a real-time consolidated display for NMS stocks at the point of order entry. However, FINRA found the firm also failed to maintain adequate supervisory systems and written supervisory procedures (WSPs) to ensure compliance with the Vendor Display Rule between December 2017 and December 2022.

The firm reportedly had no supervisory system or WSPs in place until May 2021 and did not review all order entry points until early 2023. FINRA concluded that these failures constituted violations of both FINRA Rules 3110 and 2010.

Interactive Brokers agreed to the settlement without admitting or denying the findings.