Interactive Brokers leads the way in sanctions protection with SIX

The Interactive Brokers Group has become one of the first brokerage companies to commit to in-depth monitoring of securities globally, following its deployment of the SIX Sanctioned Securities Monitoring Service (SSMS).

The service, deployed in two waves between April 2019 (standard sanctions regime) and July 2019 (MRB –Marijuana-Related Business- Securities), has become essential to the internationally renowned brokerage firm from a risk management perspective. With regulatory responsibilities at both the state and federal level in the US, on top of ongoing geopolitical uncertainty, the ability to manage risk on behalf of clients has never been more critical.

Interactive Brokers’ clients can invest in confidence via the platform, which provides support to cover them against risks associated with sanctioned people, entities, countries to associated entities, and ultimately shareholdings (financial instruments). Their risk exposure is continuously being monitored under the UN, EU, US OFAC, UK, Australia, Canada, Switzerland, Singapore and the Hong Kong Sanctions Regimes. Last but not least, Interactive Brokers helps their clients stay compliant with the changing legal landscape around marijuana.

Yochai Korn, Global Head of Market Data and Research at Interactive Brokers, says: “As an internationally known and relied-upon brokerage firm, having the right data is vital to mitigate any level of risk or ambiguity for our clients. At the same time, we don’t want to be over-cautious and banishing stocks for no reason. Our partnership with SIX and their award-winning SSMS and MRB Securities solutions helps our clients walk this narrow line successfully. We look forward to continuing this partnership into 2020 and beyond as SIX continues to adapt to the changing landscape and bring on new services.”

Oliver Bodmer, Senior Product Manager, Financial Information, SIX, says: “Globalisation has seen the entire industry become more interconnected than ever before. This, coupled with rising geopolitical tensions, means traders face one of the most complex sanctions environments in history. Financial institutions need to ensure they aren’t getting tangled up with associated entities and financial instruments. Our relationship with Interactive Brokers delivers a data service that empowers clients to adapt quickly to regulatory demands and sanctions activity, enabling them to trade with confidence.”