Why can’t I buy this security?
Retail clients residing in the European Economic Area (EEA) are restricted from buying certain securities on their Euro Pacific Trader accounts because they do not comply with one or more of the European Union legislative acts called MiFID II, MiFIR, and PRIIPs, described below.
As a result, it is the responsibility of firms like us and our brokerage custodian, Interactive Brokers1, to enforce these regulations when serving retail investors, and unfortunately certain securities will not be available to European Economic Area residents.
Most popularly, restricted securities include US-listed exchange-traded funds, or ETFs.
In general, the objective of these EU regulations is to help consumers properly evaluate investment products and services and make more informed investment decisions. They do this by requiring manufacturers and intermediaries of trading products (such as ETF issuers) to disclose specific information on the costs, risks, and performance of those products.
What are my options?
Although Interactive Brokers allows you to apply for MiFID Professional status and trade certain restriction US securities, we are currently not offering this option. You are welcome to open an account at Interactive Brokers directly and apply for MiFID Professional status, or simply look for alternative securities on your Euro Pacific Trader account.
Markets in Financial Instruments Directive (MiFID II)
Created in 2014 and going into effect in 2018, MiFID II replaced the original 2004 MiFID legislation and is a much wider ranging. In addition, much of the trade reporting requirements were published in a separate document called, Markets in Financial Instruments and Amending Regulation (MiFIR) that has 55 articles of its own.
Markets in Financial Instruments Regulation (MiFIR)
The main focus of MiFIR is related to rules and reporting requirements of executions. Although MiFIR was technically passed as its own regulation, it is nearly always referred to in connection to MiFID II. This is due to much of MiFIR’s content being an updated version of reporting rules in the original 2004 MiFID legislation.
Packaged Retail & Insurance-based Investment Products (PRIIPs)
The PRIIPs regulation requires every products manufacturer and distributor to provide retail investors with a Key Information Document (KID). KIDs are standardised, three page documents that provide specific information such as the aggregated charges associated with a PRIIP as well a breakdown of costs, its perceived riskiness, and a variety of performance scenarios.
If no KID is available from the manufacturer, the PRIIP will be restricted from trading for EEA retail customers.
1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.
Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.
Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.
For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.