(Reuters) - A unit of Interactive Brokers Group Inc (IBKR.O) has been fined $5.5 million by the Financial Industry Regulatory Authority (FINRA), the Wall Street Journal reported on Monday.
The unit, Interactive Brokers LLC, was alleged to have broken federal rules on the “naked” short selling of stocks thousands of times over a three-year period, according to the report.
FINRA, Wall Street’s self-regulator, said Interactive Brokers LLC ignored repeated “red flags”, the WSJ said.
The Connecticut-based company neither admitted nor denied wrongdoing as part of the settlement, the report said.
Interactive Brokers was not immediately available for comment.
Reporting by Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila