Interactive Brokers Takes Action on Actively Traded Symbols

Rhea-AI Summary

Interactive Brokers Group (Nasdaq: IBKR) has announced a liquidation only status for options trading on AMC, BB, EXPR, GME, and KOSS due to extreme market volatility. Additionally, a 100% margin is now required for long stock positions and 300% for short positions. This situation is expected to persist until exchanges and regulators take further action. The company emphasizes its commitment to monitoring market conditions closely and may adjust the list of impacted symbols as necessary.

Positive

• None.

Negative

• Implementation of liquidation only status for several popular stocks may reduce trading volume and revenue.
• High margin requirements (100% for long, 300% for short) could deter retail investors and impact trading activity negatively.

Interactive Brokers Group (Nasdaq: IBKR), a global brokerage firm, today announced that as of midday yesterday, it has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets.

In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice. We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange 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/20210128005689/en/

FAQ

Why has Interactive Brokers put AMC, GME, and other stocks into liquidation only?

Due to extraordinary market volatility, Interactive Brokers has restricted trading for AMC, GME, and other stocks to liquidation only.

What are the new margin requirements for stock positions at Interactive Brokers?

Long stock positions now require a 100% margin, while short stock positions require a 300% margin.

How long will the liquidation status for AMC, GME, and others last?

The liquidation status will remain in effect until exchanges and regulators take further action to stabilize the market.

What stocks have been affected by Interactive Brokers' new trading policies?

The affected stocks include AMC, BB, EXPR, GME, and KOSS.

What risks are associated with the new margin requirements from Interactive Brokers?

The significant increase in margin requirements may restrict trading activity and could lead to reduced participation from retail investors.