Why does Interactive Brokers shut down Direct Market Access to the CSE exchange? It's the only brokerage in Canada with this limitation @def All of the Competition (Wealthsimple, Questrade, RBC, TD, NB,) allows trades butIBKR is the sole Trading platform to limit access. To clarify as well. Sell Orders are accepted but Buy orders are rejected.
Yes, I have asked the CEO of the Exchange as well and he has no idea why they won't allow Buys on the exchange. He's been trying for ages to get this policy reversed.
Pretty much. Nobody knows that rationale or who the decision maker was that decided it. I called out the @def so we will see if he can find an answer.
What Is the Canadian Securities Exchange (CSE)? The term Canadian Securities Exchange (CSE) refers to an electronic alternative stock exchange for small-cap and microcap firms and emerging companies in Canada. If only sells, perhaps the answer from Investopedia provides the reason. Microcap's probably cause more problems for brokers than they are worth.
Lumping in Canadian Micro-caps with the US ones is a fallacy as the issues affecting US OTCs don't affect Canadian ones. Hence why all IBKR competitors can offer buys on the CSE without issue.
In my opinion, it's because of Regulatory Compliance.IBKR may have encountered regulatory challenges or compliance issues related to executing buy orders on the CSE. Certain regulatory requirements or restrictions could have prompted IBKR to implement this limitation.
There is no real reason identified. And hard to see why IBKR is facing a unique regulatory problem that no other brokerage has to deal with. IBKR has had these Gaps before in other areas where they suddely fix them after many years with no explanation.