Interactive Brokers continues to collect debts stemming from SNB “Black Swan” event

Maria Nikolova

As of December 31, 2019, Interactive Brokers has incurred cumulative losses, net of hedging activity and debt collection efforts, of $115 million.

Online trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has filed its 10-K annual report for 2019 with the Securities and Exchange Commission (SEC), with the document revealing that the company continues to pursue debt collection from customers who incurred losses in excess of their deposits on January 15, 2015.

On January 15, 2015, due to the sudden move in the value of the Swiss franc that followed an unprecedented action by the Swiss National Bank, which removed a previously instituted and repeatedly reconfirmed cap of the currency relative to the Euro, a number of Interactive Brokers’ customers who held currency futures and spot positions suffered losses in excess of their deposits with the company. Interactive Brokers says it took immediate action to hedge its exposure to the foreign currency receivables from these customers.

Interactive Brokers’ financial results for the first quarter of 2015 were negatively impacted by a $121 million net loss due to the sudden move in the value of the Swiss franc, causing several of its customers who held currency futures and spot positions to suffer losses in excess of their deposits with the company. The annual report for 2015 showed that the losses related to this “Black Swan” event, net of hedging activity and debt collection efforts, to be approximately $119 million.

As of December 31, 2018, Interactive Brokers has incurred cumulative losses, net of hedging activity and debt collection efforts, of $116 million.

In the annual report for 2019, Interactive Brokers explains the results for 2015 include an unusual loss of $137 million recorded as customer bad debt. As of December 31, 2019, Interactive Brokers has incurred cumulative losses, net of hedging activity and debt collection efforts, of $115 million.

“We continue to actively pursue collection of the debts. The ultimate effect of this incident on our results will depend upon the outcome of our debt collection efforts”, the brokerage says.

Read this next

blockdag

BlockDAG’s $28.5M Presale Ignites Investor Frenzy! Dashboard Upgrade Unveils Top Rankings, Overshadowing Retik Finance Listings!

Learn how BlockDAG’s updated dashboard, featuring detailed community rankings, is diverting investor interest from Retik Finance’s anticipated market entries.

Digital Assets

Gala Games reportedly hacked for $200 million, token nosedives

The native token of crypto gaming project Gala Games (GALA) dropped sharply amid rumors of a massive transfer worth over $200 million that traders suspected might be a hack.

Digital Assets

Ether skyrockets amid rumors of spot ETF approval

The chances of the U.S. government approving spot Ether ETFs have increased, according to top Bloomberg ETF analysts. Initially viewed as unlikely, analysts James Seyffart and Eric Balchunas now see a 75% chance of approval, up from 25%, following recent developments.

Digital Assets

New York judge approves $2 billion settlement with Genesis

A New York bankruptcy judge has approved a $2 billion settlement between the New York State Attorney General’s office and crypto lender Genesis, marking the largest settlement against a crypto firm in the state’s history.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, ECB, Geopolitical Tensions, May 20 ,2024

Fed holding rates to fight inflation, ECB likely cuts June rates, geopolitical tensions favor safe-haven USD

Digital Assets

Grayscale CEO steps down, replaced by Goldman Sachs veteran

Grayscale CEO Michael Sonnenshein after 10 years with the digital asset investment firm, the company said on Monday.

blockdag

Influencers Fuel BlockDAG’s $28.4M Presale Amid Solana Price Surge & Kaspa Bull Run

Dive into BlockDAG’s presale success, boosted by influencer endorsements. Explore the Solana price surge and Kaspa’s bullish sentiments.

Market News, Tech and Fundamental, Technical Analysis

EURGBP Technical Analysis Report 20 May, 2024

EURGBP currency pair can be expected to fall further toward the next support level 0.8525, which is the low of the previous corrective wave ii.

Digital Assets

Pump.fun exec arrested for $1.9 million exploit, claims bail in UK

Jarett Dunn, a former employee of the memecoin creator and trading platform pump.fun, claims he was arrested and subsequently released on bail in the United Kingdom following a $1.9 million exploit on the platform.

<