@zdreg, thanks for the link to the article. I guess I did not realize that European residents cannot trade US ETFs anymore since 2018 because I reside in HK and am not subject to such regulations. By the way the reason is not because of prohibitions in Europe but because AGAIN American Financials (ETF sponsors) refuse to issue a simple document required to sell those ETFs in Europe. https://www.google.com/amp/s/www.fi...y-europeans-cannot-have-us-funds-anymore/amp/
So in general I completely agree with you and hate this specific restriction. On a practical level, the theory is that if they don't have the ability to add a security to their surveillance/monitoring system then the whole system effectively becomes worthless. If folks can effectively trade the same security in a world that they can't see and in the U.S. financial system, then they're unable to actually do their job because they won't ever have a full picture of what's going on. Most of the criminal activity they catch involves them being able to see multiple trades by the same party in multiple accounts, take away half that picture and they stop catching that activity. Now does that mean that American's shouldn't be able to trade sheep head futures options on the Ulan Bator commodity exchange, the only place such a product is traded? Probably not. Does it mean that allowing Americans to trade S&P 500 options on an exchange that they can't see has no impact on their ability to do their job? A little more sympathetic to their position on that. As far as protecting Americans from themselves, hate the concept but it's pervasive and almost unavoidable in a democratic system when representatives will inevitably hear sad stories about Ma and Pa Kettle losing their life's savings and their farm on 'dem foreigners and their derivatives and feel the need to act. Kind of one of those "democracy is the worst form of government, except every other form we've tried" kind of things.
Possibly this depends on the broker and your qualification as “sophisticated investor”? https://www.justetf.com/uk/news/etf/us-domiciled-etfs.html “Qualification under this exception depends on your broker deciding that you meet the UK definition of a sophisticated investor.” and “Each European territory implements PRIIPs according to its own interpretation of the standard, so it is possible that some EU-based brokers open to UK investors will make US-domiciled ETFs available under a less strict regime.”
Has to do with the fact that UK does not follow the European financial regulatory framework. They got a carve out. And they will be completely out in a few months.