According to FINRA, Interactive Brokers LLC was censured and fined $150,000 for violating Rule 603(c) of Regulation National Market System by failing to provide certain customers with required consolidated market data displays at the point of order entry.

The Vendor Display Rule requires broker-dealers to provide customers with a consolidated display of market data that includes all required elements at the point where they enter orders. This requirement ensures that investors have access to the information they need to make informed trading decisions.

Interactive Brokers displayed incomplete market data through its desktop, web-based, and mobile trading platforms to customers who did not pay for real-time market data through a subscription service or by purchasing on-demand static views. This meant that customers making trading decisions did not have access to complete market information.

The firm's supervisory failures were also significant. From December 2017 through May 2021, the firm had no supervisory system or written supervisory procedures and conducted no reviews of its order entry points for compliance with the Vendor Display Rule.

After implementing procedures in June 2021 requiring review of order entry points, the firm still failed to review all entry points across its trading platforms. Between June 2021 and December 2022, reviews did not cover all relevant areas. The firm ultimately identified 22 order entry points that had not been included in prior reviews and began comprehensive reviews in January 2023.

Following remediation, the firm now provides all customers with real-time consolidated displays for NMS stocks containing all required market data elements at the point of order entry.

For investors, this case highlights the importance of having access to complete market data when making trading decisions. Incomplete or delayed data can result in trades executed at suboptimal prices. Investors should ensure they understand what market data their broker provides and whether additional subscriptions are needed for comprehensive information.