SEC Rule 10b5-1 allows insiders of publicly traded companies to set up a trading plan for the purpose of selling a predetermined quantity of shares at predetermined dates. IBKR will allow clients to open an account to facilitate such transactions subject to the following:
- The account will not be designated as a special Rule 10b5-1 account;
- IBKR will not monitor the account to ensure that the trading complies with the Rule 10b5-1 plan; and
- IBKR will not prepare or send any of the required regulatory filings associated with the account, including filing of SEC Form 4.