IB Entities and Trading Permissions: Seeking Clarity on Asian Futures

Discussion in 'Interactive Brokers' started by Collagen, Dec 22, 2023.

  1. Collagen

    Collagen

    So Today, I encountered an issue while attempting to place a trade on the Hang Seng futures. Surprisingly, I received a message stating that I do not have the trading permissions to execute this future contract. This is puzzling because I have previously traded (as recently as a week ago) and currently have ample funds in my account. Consequently, I contacted the Interactive Brokers (IB) Singapore branch for clarification. After an extensive discussion, I was informed that, since my account is under the IB US entity, I am not permitted to trade any Asian index futures due to new regulations imposed by US authorities. It's important to note that I am a European, residing in an Asian country.

    I was advised that to regain the ability to trade the Hang Seng and other Asian index futures, I would need to open a new internal account under the European IB branch (initiated by Index option trading permission). This would subsequently reactivate my trading futures account (ending with 'F'), thereby allowing me to trade Asian index futures once again. Currently, I am only restricted from trading futures; trading Asian stocks remains accessible.

    Seeking further clarification, I contacted the IB European branch and spoke with a representative. Interestingly, this representative reiterated the same information but added that even under the IB European entity, I would still be unable to trade any Asian index futures as the European entity adheres to the same rules. This is another discrepancy that I've encountered.

    Question: Is there any foreigner residing in Asia who could attempt to place an order on the Hang Seng and inform me if their trading is permitted? This situation has left me extremely perplexed, as it seems to represent a significant change in policy. (and in money flow)
     
    Picaso and Quanto like this.
  2. tony.m

    tony.m

    How did you manage to open IBKR US account anyway?
     
  3. Quanto

    Quanto

    It's not the topic. US brokers usually accept clients/traders in/from Europe. The only difference is the tax stuff (countries/regions have bilateral tax agreements to prevent double-taxing, or no-taxing at all)
     
    Last edited: Dec 22, 2023
  4. maxinger

    maxinger


    huh?

    That means you cannot trade many many Asian futures

    Nikkei from Osaka/Tokyo or whatever exchange
    Kospi
    ASX from Australia
    India Nifty from NSE India
    China A50 from Singapore Exchange
    China A50 from Hongkong Exchange
    SET50 from Thailand
    Taiwan index from the Taiwan Stock Exchange
    VN30 from Vietnam Exchange

    etc etc etc


    Anyway, you can trade many many many European, Russia, Middle East, South American, and US index futures.
    What a strange regulation.

    Anyway, many countries have various trading restrictions.
     
    Last edited: Dec 22, 2023
    Picaso likes this.
  5. tony.m

    tony.m

    This is not the case with IB US. They will redirect you to IB EU.
    I believe the OP is/was US green card holder.
     
    Quanto likes this.
  6. Collagen

    Collagen


    Let's stay focused on the main topic, but to quickly answer your question: I've only visited the US a couple of times as a tourist. My account with IB was directed to the US entity because residents in certain Asian countries are automatically assigned to it. This is my understanding, but for detailed specifics, it would be best to inquire directly with IB. Let's try to keep the discussion centered on the issue at hand.
     
    Picaso likes this.
  7. Overnight

    Overnight

  8. Exactly. That's also what happened to me: a European living in an Asian country. IBKR asked me in what country I am "tax resident", and based on that answer assigned my account to their US subsidiary.

    Back to your original question: I do trade futures on the Korean and Singapore exchanges. These trades are all accepted by IBKR. I have however no experience in trading the Hang Seng index futures.
     
  9. Collagen

    Collagen

    Hi HobbyTrading,

    Given your experience as a European residing in Asia and trading through the IBKR US subsidiary, I am curious about any recent changes you might have experienced in your trading permissions, especially in light of the regulatory updates that have affected my ability to trade Hang Seng index futures.

    Have you encountered any new restrictions or alterations in your ability to trade futures on the Korean and Singapore exchanges recently? Any insights you could share about your current permissions or any regulatory changes impacting your trading activities ?
     
  10. def

    def Sponsor

    This looks to be related to the sanctions the US placed on a number of Chinese stocks of which are constituents of HSI.
     
    #10     Dec 28, 2023