PRIIPS KID on IB

[Hittfeld]

The risk for US firms to release KIDs is the fact that KIDs might be "interpretable" and under EU prospectus liability laws they might be sued just because of wordings or paper size etc....

When you accept EU regulations you are already in a minefield.

 

[SumZero]

Just got an E-mail from State Street Global Advisors that they have no intention to release KID for their US SPDR ETFs.

Me too. This is it:

Information Classification: ll Limited Access


XXXXX,


Thank you for your query regarding the availability of PRIIPs Key Information Documents (KIDs) for our US domiciled range of SPDR ETFs. As you may know, KIDs were introduced by EU Regulation in January 2018. The requirement to prepare a KID arises where certain products are offered or sold to European retail investors.


As the ETF issuer, it is not our intention to offer the US domiciled SPDR ETFs to retail investors in Europe. Accordingly, we have not released KIDs for our US range of SPDR ETFs.


Your broker or financial adviser is best placed to provide you with information regarding other products which are available to European retail investors.


Best,

Fund Inquiry



State Street Global Advisors

SPDR

One Iron Street, CCB/7

Boston, MA 02210-2900

 

[Hittfeld]

With CFDs I see 2 major problems (from own experience):

After a fat finger event equity trades will be corrected - CFD trades won`t.
CFDs don`t consider volume. So trade spikes are used for haircuts and stop fishing.

 

[Obelixtrader]

With CFDs I see 2 major problems (from own experience):

After a fat finger event equity trades will be corrected - CFD trades won`t.
CFDs don`t consider volume. So trade spikes are used for haircuts and stop fishing.

and for me no tax benefits since in my country when you buy stocks on eu exchanges or on non-eu exchanges and hold longer than 1 year are profits tax free and ( CFDs on US ETF) are otc derivatives no tax benefits. I am pissed stupid EU

 

[JSOP]

The risk for US firms to release KIDs is the fact that KIDs might be "interpretable" and under EU prospectus liability laws they might be sued just because of wordings or paper size etc....

When you accept EU regulations you are already in a minefield.

Paper size??!!! You are kidding me???!! You can be sued for paper size??!! But yeah I can see the minefield especially when these KID have to be translated. Meanings can be distorted or lost in translations. OMG!! So the prospectus that those American ETF's are not in Europe so they cannot be sued? I was thinking if they want to sue , they can sue lot easier on a 85-page prospectus from SPY issuer rather than on a 2-page KID?

 

[JSOP]

and for me no tax benefits since in my country when you buy stocks on eu exchanges or on non-eu exchanges and hold longer than 1 year are profits tax free and ( CFDs on US ETF) are otc derivatives no tax benefits. I am pissed stupid EU

Ah another reason why EU wants the KID requirement. $$$$ for them.

 

[nzbryant]

Yes but all of the UK traders of IBUK would all be saved.

Not yet. I was UK and IBUK. Still in EU.

 

[JSOP]

Not yet. I was UK and IBUK. Still in EU.

Go May go!!!

 

[cruisecontrol]

Pretty shocking and disturbing that they just went ahead and implemented this without any warning. IB really dropped the ball here.

 

[burggraben]

To be fair, they did send an email on 22 Dez 2017 explaining that PRIIPs will be taking effect on 3rd Jan 2018. The only thing they could have done, is add another sentence in that email to state explicitly that any packaged retail product that does not publish a KID will not be tradeable anymore. But if you googled to find out what the (unnecessary and annoying) PRIIPs legislation is about you could have found that out as well. I don't think IB was able to know at the time whether or not SPY will publish the information in time.