Interactive Brokers Removes Options Trading Restrictions Following SEC Statement

Interactive Brokers LLC (NASDAQ:IBKR) has published a tweet saying that it has removed all previously announced options trading restrictions.

In response to the extraordinary volatility in the markets, Interactive Brokers put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only on 28 January 2021. In addition, the brokerage firm introduced a higher margin requirement of 100% for long stock positions and 300% for short stock positions.

Interactive Brokers changed its stance on appropriate response to markets volatility following the issuing of the United States Securities and Exchange Commission's statement regarding recent market volatility.   

In SEC's statement, the Commission said that it will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities. Additionally, the SEC is working closely with other regulatory bodies, both across the government and at FINRA and other self-regulatory organizations, including the stock exchanges, to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing. The US securities regulator warned that market participants should be careful to avoid abusive or manipulative trading activity that is prohibited by the federal securities laws.