Interactive Brokers LLC (NASDAQ:IBKR) has informed the US Securities and Exchange Commission () that Thomas Peterffy, Founder and Chairman of the brokerage group, will sell 10 million shares of the company.
The 8K form submitted with the regulator last Friday detailed that the Class A common stocks will be sold in the open market under the Rule 10b5-1 trading plan. This plan will put a daily selling limit of up to 20,000 shares and the transactions will occur until the earlier of the date on which all shares are sold, July 31, 2022, or if the trading plan is terminated.
If expired earlier, the remaining holdings of Peterffy “will be sold pursuant to a new Rule 10b5-1 plan, although that cannot be assured.”
“In the interim, it is expected these volume limitations will cause the TP Plan to sell less than 20,000 shares per day subject to the limitations in the TP Plan. Mr. Peterffy will have no control over the timing of the stock sales under the TP Plan,” the 8K form stated.
The Billionaire Shareholder of Interactive Brokers
Peterffy founded in 1978 and is still its largest shareholder. The discount brokerage became one of the largest electronic trading platforms in the United States.
“Mr. Peterffy entered into the TP Plan as part of his personal long-term investment strategy for tax, asset diversification, and liquidity,” the filing detailed.
Additionally, the brokerage’s Chief Financial Officer, Paul J. Brody, and Executive Vice President and Chief Information Officer, Dr. Thomas A.J. Frank, will also sell 253,332 and 1,815,458 shares of the company respectively under similar trading plans.
Finance Magnates recently reported on the trading demand on Interactive Brokers, showing a in DARTs. However, the October figures were 120 percent higher than last year.