Sept 28 (Reuters) - U.S. futures regulator said on Tuesday
online brokerage Interactive Brokers LLC had agreed to pay a
penalty of $1.75 million to settle charges over its failure to
"adequately" prepare its electronic trading system before last
year's historic oil plunge.
The problem was discovered on April 20 last year when
negative oil futures prices were not displayed to customers, who
were also unable to place limit orders to buy or sell, the
Commodity Futures Trading Commission (CFTC) said.
The regulator also said it had reduced the penalty due to
"substantial cooperation and systems remediation" by Interactive
"This enforcement action demonstrates that the CFTC will
hold registrants responsible for their handling of customer
accounts," Acting Director of Enforcement Vincent McGonagle said
in a statement.
On April 20, U.S. crude futures turned negative for the
first time in history, crushed by a collapse in oil demand as
the COVID-19 pandemic derailed the global economy.
(Reporting by Niket Nishant in Bengaluru;
Editing by Vinay Dwivedi)