SLCG Blog 4th Circuit Court Reinstates $1.5 Million VXX Arbitration Award Against Interactive Brokers

In August 2020, the US 4th Circuit Court of Appeals reversed the US District Court for the Eastern District of Virginia's Order vacating and remanding for hearing before a new arbitration panel a modified arbitration award against Interactive Brokers. You can read the Appeals Court's Order here. Previously in January 2018, a FINRA panel in Richmond, VA ordered Interactive Brokers to pay at least $1,544,843 in compensatory damages and attorneys' fees. You can read the modified award here. Dr. McCann testified on liability and damages over Interactive Broker's application of portfolio margin rules to a portfolio of VXX ETNs and options on VXX ETNs.