PRIIPS KID on IB

Will those who qualify than be charged professional data fees ? Besides We Are talking us based etfs but are all non european based etfs equally unavailable for trading ? Wondering what more products We will discover Are unavailable to ibuk traders
 
HappyTrader said:
Some articles on the topic:
https://www.bloomberg.com/news/arti...t-to-europe-s-etfs-as-spy-no-longer-an-option

https://www.justetf.com/uk/news/etf/us-domiciled-etfs.html

https://www.jdsupra.com/legalnews/are-you-kid-ing-new-eu-rules-require-38108/

I've talked to IB:

  1. If you are dealing with IB-UK (not IBLLC-US) then you can NOT buy these products anymore.
  2. You CAN still hold them.
  3. You CAN still sell them.

  1. There is the possibility to switch to Professional Status -- But it does not appear they have paperwork ready for this.
  2. There is the possibility to switch to 'Sophisticated Investor' status (Account size > 500k) -- But they do not have paperwork ready for this.
  3. If you switch to a non-EU address, you also need to switch from IB-UK to IBLLC-US (which requires opening a new account as the two entities are quite separate)

Also of note:
You can still trade options for ETFs, and in the event you are ASSIGNED options it will be auto-liquidated instead of ending in your account (effectively, cash settled at presumably close price or perhaps the after-hours price or pre-market price, it was not made clear). (This should make the argument of options in SPY vs SPX interesting).

So, effectively, for the moment: If you are in the EU you can not trade these products anymore.

I am NOT sure if this is restricted to IB only (any non-IB EU/UK based brokerage users out there with feedback)?

I am NOT sure if KIDs have actually been produced for these ETFs and simply not displayed on IB (anyone with more insight into MIFIID know how to actually check this?)
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too bad US brokerage firms didn't think to inform their clients. these articles are up
to 6 months old.
 
Humble Investor said:
Retail traders have to satisfy two out of 3 conditions listed below:

1. The investor has carried out 10 or more significant transactions a quarter over the past year
2. The size of the investor's portfolio exceeds EUR 500,000
3. The investor works or has worked in the financial sector for at least one year

IB will probably come up with a questionnaire over the next few days and we should be back to normal!
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You mean *Professional* traders have to satisfy two out of 3 conditions?
 
bjw said:
it's a weird reply. the topic wasn't about actually registering the ETF's in the EU, just realeasing the KID. are you sure they understood your question?
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The question I made was this (I didn't know what they had to do to make it available - and I still don't, except what is mentioned here in the thread - so I was very generic in the question, describing the problem and asking if there were plans to fix it):

I'm an european customer of Interactive Brokers and from today I'm not allowed to negotiate some of the BlackRock ETFs any longer (example: TLT). The reason is because BlackRock does not comply with european PRIIPS regulation.


As far as I know a lot of european customers, both in other brokers and banks, have been prevented from trading your ETFs during 2018.


Any plans to become available any time soon to european customers ?


Thanks

XXXXXX
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