FINRA Fines Interactive Brokers $125,000 for Alleged Violations 

Interactive Brokers LLC has agreed to a $125,000 fine and a censure as part of a settlement with the Financial Industry Regulatory Authority (FINRA) for failing to maintain an adequate supervisory system and written procedures to ensure compliance with time of trade disclosure obligations between January 2022 and October 2024. The firm did not properly disclose that certain municipal bonds were traded at a market discount, nor did it inform customers that the accretion of such discounts could be taxable as ordinary income. This oversight affected 1,918 transactions involving 130 customers, with a total principal value of approximately $40 million.