The Securities and Futures Commission (SFC) has issued notices to Interactive Brokers LLC (IBLLC) and Interactive Brokers Hong Kong Limited (IBHK) prohibiting them from dealing with or processing certain assets held in a client account which the SFC suspects are the proceeds of market manipulation and/or fraud conducted in conjunction with unauthorized internet trades in hacked securities accounts at other firms between 7 and 15 October 2015 (Notes 1 & 2).
The SFC is not investigating either IBLLC or IBHK, which have cooperated with the SFC’s ongoing investigation. The notices do not affect the operations of IBLLC and IBHK or their other clients.
The notices prohibit IBLLC and IBHK, without the SFC’s prior written consent, from dealing with the suspected proceeds or processing any instructions from the client, or any authorized representative, for those proceeds, including: (i) entering into securities or futures transactions; (ii) withdrawing securities, futures or cash; and/or (iii) transferring sales proceeds of securities or futures. IBLLC and IBHK must notify the SFC if they receive any account instructions.
The SFC considers that the issue of the notices is desirable in the interest of the investing public or in the public interest.
The SFC’s investigation is continuing.
The SFC acknowledges the assistance provided by the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force.
Notes:
- The SFC issued the notices under sections 204 and 205 of the Securities and Futures Ordinance (SFO).
- Both IBLLC and IBHK are corporations licensed under the SFO to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 3 (leveraged foreign exchange trading) regulated activities.
