unable to trade BOIL

[Fibotrade]

Went to place a trade on BOIL. It was declined with a message of 'Sorry. Not suitable for European retail clients'.

I'm in Australia, so that's the first issue. Anyone know why the order can't be placed?

[OfentseIG]

On 14/04/2023 at 05:59, Fibotrade said:

Went to place a trade on BOIL. It was declined with a message of 'Sorry. Not suitable for European retail clients'.

I'm in Australia, so that's the first issue. Anyone know why the order can't be placed?

Hi @Fibotrade

Thanks for reaching out. 

The US Regulator has announced the introduction of a new tax regulation called ‘Section 1446(f)’ through the Internal Revenue Service which will impact clients who hold positions in publicly traded partnerships (herein after referred to as PTPs). The net effect of this tax amendment will be a 10% increase in the dividend withholding tax to be charged on PTPs (which is currently 37%, expected to increase to 47%); and a new 10% tax on all proceeds made on the sale of PTP positions effective from the 1st of January 2023. 

IG has decided not to allow the opening of new positions on the known securities. Clients can only close (sell) their existing positions to avoid being charged the new tax associated with the selling of PTPs. 

All the best, 

OfentseIG