In the case of listed securities options, the issuers of the options have developed the Key Information Documents (KIDs) for Packaged Retail and Insurance-based Investment Products (PRIIP). These options are therefore eligible for European clients classified as MiFID Retail to purchase and sell.
KID documents for these options are available in the client portal and via links upon order entry.
Exercise and Assignment
Non-European ETFs do not as a rule publish KIDs, and such ETFs are therefore not tradable by European MiFID retail clients.
Retail clients will however not be restricted from taking delivery of option underlying ETFs via exercise or assignment, whether or not the underlying ETFs have KIDs.
Therefore the absence of an ETF KID alone does not cause us to close your option position to prevent physical delivery, or cash-settle the option, or automatically liquidate the resulting shares.
However, we do reserve the right to close short options or liquidate positions if assignment would place your account in a margin deficit, or if post-assignment exposure is deemed excessive. This is a margin-driven action, not a KID-driven one.
Holding and Restrictions
The KID restriction applies to opening new direct purchase positions in ETFs that do not have KIDs. Once the restricted underlying ETFs have been delivered, the position will be subject to a closing-only restriction. This means you may submit ordinary sell orders to close all or part of the delivered position at any time, but you may not increase the position by direct purchases.
Additional Information