Because of the new PRIIPS EU regulation you may not be able to trade some ETF’s via Interactive Brokers such as SPY SH, XLF etc…

I’ve been onto IB and they are working on some compliance issues in order to open up the ETF’s to retail clients. They have not specified a timeline as of yet.

If you have existing positions you do not have to worry as you can close the positions and manage them at anytime. However, you will be unable to open new positions until further notice.

The issuer of the ETF must provide a document that must be accepted by the retail client. This hasn’t been done as of yet is some instances.

Alternatives to SPY are:

SPY5 – quoted in Euros. This is an ETF run by State Street Bank…it is traded on the London Exchange in Sterling or on European exchanges in Euro’s. Please note that the returns will not match the SPY etf because of currency fluctuations. For example a weakening USD will have a negative impact on SPY5. So in other words…some days S&P 500 could be up but the SPY% could be down if the USD is substantially weaker on that particular day. Over time it tends to even itself out but it makes shorter term trading more difficult.

As ever please contact us if you have any questions.