Interactive Brokers launches Securities Class Action Recovery solution

Maria Nikolova

The new automated service aims to remove the administrative burden of participating in a securities class action lawsuit.

Online trading major Interactive Brokers has announced the release of a new product which has the purpose of reducing the administrative burden of participating in a securities class action lawsuit.

Interactive Brokers’ clients can participate in the service if they are eligible to trade US or Canadian stocks or bonds, hold an individual, joint or separate trading limit (STL) account with IBKR, or are a client of a fully disclosed introducing broker (IBroker) or a client of a Financial Advisor.

Eligible clients can quickly and easily enroll or leave the service at any time by logging in to Client Portal and clicking the Settings > Account Settings menu. Click the “Configure” icon next to Securities Class Action Recovery to review the Terms & Conditions, subscribe to or unsubscribe from the service.

Once enrolled, Interactive Brokers will notify clients when a security they bought or sold is subject to a class action lawsuit and inform them of when a claim is filed. Any monetary compensation received in connection to these claims will be electronically deposited to their IBKR account. On the downside, there could be a significant period of time between filing a claim and receiving compensation.

In terms of payments, there is no upfront fee to subscribe to the service. However, all recovered amounts are subject to a 20% contingency fee deducted from the recovered funds.

If a client unsubscribes from the Interactive Brokers Securities Class Action Recovery service while a lawsuit is active, this client will be eligible to receive compensation for any settled claims as long as this client’s activity and holdings for involved securities were transmitted to Interactive Brokers’ service provider before the client unsubscribed from the service.

Read this next

Opinion

The FX Algo Wheel, is it wheels up and ready to take flight?

by David Catterick, Sales Director, BidFX Australia

Retail FX

eToro users now can trade underlying Italian stocks

Israeli social trading and multi-asset brokerage company eToro has expanded its service offering and trading products by incorporating new markets, namely Italian stocks listed at underlying exchanges.

Digital Assets

BlackRock bets on crypto bank Silvergate despite drastic fall

BlackRock, the world’s largest asset manager, has increased its stake in Silvergate Bank, a crypto-friendly lender that counts major crypto exchanges like Coinbase and Kraken as clients.

Opinion

A viewpoint from Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, on SEC regulation of the digital asset sector

The SEC’s latest episode comes across as more of a PR performance rather than an act of investor protection.

Digital Assets

Tether denies receiving any loans from Celsius, the opposite is true

World’s largest stablecoin issuer, Tether dismissed reports suggesting that it received a $2 billion loan from the bankrupt cryptocurrency lender Celsius.

Institutional FX

Cboe FX volume makes strong rebound in January

Cboe’s institutional spot FX platform today announced its trading volume for the month ending January 2023, which marks a mild rebound after a steep fall in December.

Uncategorized

XS.com appoints Exness alumni Mohamad Ibrahim as CEO

XS.com, the multi-regulated financial services provider, has appointed Mohamad Ibrahim as the group’s newest chief executive officer (CEO).

Technology

B2Broker Integrates Match-Trader Solution to Expands Its White Label Liquidity Offering

A global provider of technology and liquidity for the FX and cryptocurrency markets, B2Broker recently announced the extension of its white label liquidity offering by merging with Match-Trader.

Digital Assets

UK launches open consultation to regulate crypto exchanges, custody, and lending

The government’s proposed measures have been informed by recent market events – including the failure of FTX – which reinforce the case for effective regulation and sector engagement.

<