PRIIPS KID on IB

Discussion in 'Interactive Brokers' started by d08, Jun 17, 2018.

  1. For market data subscription I am continuing to be a non-professional user.
     
    #161     Aug 2, 2018
    nzbryant likes this.
  2. #162     Oct 21, 2018
  3. bjw

    bjw

    did you actually get yours approved? i've send them in, but have been waiting for ages.

    edit: never mind, i see yours were approved
     
    Last edited: Oct 21, 2018
    #163     Oct 21, 2018
  4. luisHK

    luisHK

    Had to fill the form about professional/non professional market data recently through account management, it clearly asks whether one is considered professional by any exchange worldwide, implying imo if that's the case one would need to pay professional market data.
    Geissbock or anyone else who got professional status related to Europe, did you renew your market data non professional form yet ? Did that change anything to your market data costs ?
     
    #164     Oct 22, 2018
  5. d08

    d08

    Market data rates are determined differently and are not connected to MiFiD status. Especially since one of the possible MiFID requirements is that one has worked in the financial sector as a professional for some time in the past, irrelevant of current employment.
     
    #165     Oct 22, 2018
    Maverick2608 likes this.
  6. luisHK

    luisHK

    Thanks, that's what I understood first, but no longer sure. Do you still answer as NO when asked whether you are considered in any market as professional or YES, which seems more honest, than ask IB to keep you at non pro rates, which might not work ?
    I'm still waiting to see consequences on those applying for the professional status, as I don't need ETFs asap but sure wouldn't mind having a fuller access to listed products.
    Btw as a EU citizen based outside Europe, with non european brokers I noticed no issue, but all non European ETFs seem out of reach through IB.
     
    #166     Oct 22, 2018
  7. d08

    d08

    That's an interesting question but when I talked with IB, according to them I'd still be non-pro for data purposes. I assume the difference is whether one currently is a professional or if one has had professional experience.
     
    #167     Oct 22, 2018
    nzbryant, Maverick2608 and luisHK like this.
  8. kassad

    kassad

    Hi all,

    I haven't seen it mentioned in this thread but it might be relevant to some:

    There are actually not just one but two ways a client can become categorized as 'Professional' under the current MiFID regulation.

    The first possibility is the way that most are already familiar with and is widely discussed on forums is 'Professional client by request' which means one has to fulfill two of the following three criterias:

    - the Client has carried out transactions, of significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
    - the size of the Client's financial instrument portfolio, defined as including cash deposits and financial instruments exceeds 500’000 Euro;
    - the Client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.

    The other one is 'Professional client by Financial Authority Regulation'.

    These are individuals or entities authorised or regulated by either an EU member state or by a non member State. So if the client has a registration number with any relevant government financial authority it automatically makes the client categorized as a Professional client without having to fulfill any further criterias.

    The reason I know this is I myself am an EU resident working as an Investment Advisor which made me automatically qualify as a Professional client under MiFID.

    As an advisor I also have EU resident clients who couldn't fulfill the criterias to become 'Professional clients by request' but still wanted to be able to trade US equities. I have simply arranged for them to receive a registration number from the same financial authority I am regulated by and they all became categorized as Professional clients.

    Nice writeups covering the MiFID client categorization regulation can be found with a simple google search for example here:

    https://www.fxdd.com/fileadmin/user_upload/pdfs/mt/en/MIFID_CLIENT_CATEGORISATION.pdf
     
    #168     Nov 1, 2018
  9. SumZero

    SumZero

    Becoming categorized as Professional increases quite a lot the data fees, right ?
     
    #169     Nov 1, 2018
  10. Not if you are categorized according to what is referred above as "the first possibility." The second I believe the answer is yes.
     
    #170     Nov 1, 2018
    SumZero likes this.