Interactive Brokers Lifts All Trading Restrictions on Options

Rhea-AI Summary

Interactive Brokers Group (Nasdaq: IBKR) has removed all trading restrictions on options for volatile stocks including AMC, GME, and others. This decision comes after recent market fluctuations, though the options and underlying stocks are now subject to increased margin requirements that may vary with market conditions. The firm emphasizes its continuous monitoring of these volatile markets to ensure compliance and risk management.

Positive

• Lifted trading restrictions on options for high-volatility stocks like AMC and GME.
• Demonstrates commitment to liquidity and market participation.
• Increased margin requirements may enhance risk management.

Negative

• Options and underlying stocks are subject to increased margin requirements, potentially limiting trading activities for some investors.

Interactive Brokers Group (Nasdaq: IBKR), a global brokerage firm, announced today that on Friday it lifted all trading restrictions on options in AMC, BB, EXPR, GME, KOSS and other options that experienced recent market volatility. The options, as well as the underlying stocks, are currently subject to increased margin requirements, which are subject to change depending on market conditions. The firm continues to monitor these volatile markets.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange and their derivative products around-the-clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 24, 2020, Best Online Broker Review.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210130005024/en/

FAQ

What stocks had trading restrictions lifted by Interactive Brokers on January 30, 2021?

On January 30, 2021, Interactive Brokers lifted trading restrictions on options for stocks such as AMC, GME, BB, EXPR, and KOSS.

What are the new margin requirements for options after the removal of trading restrictions by IBKR?

After lifting trading restrictions, the options and underlying stocks are subject to increased margin requirements, which can change based on market conditions.

How does IBKR ensure compliance in volatile markets?

IBKR continuously monitors volatile markets to adjust trading conditions and ensure risk management protocols are maintained.

What is the significance of the removed trading restrictions for investors using IBKR?

The removal of trading restrictions allows investors to trade options on high-volatility stocks, potentially increasing investment opportunities.

Is there any monitoring mechanism in place for the lifted trading restrictions by IBKR?

Yes, Interactive Brokers is actively monitoring the volatile markets to recalibrate margin requirements and ensure effective risk management.