In accordance with the MIFID II Product Governance requirements, Interactive Brokers (U.K.) Limited ("IBUK") has identified the potential target market for the financial instruments that IBUK manufactures.
This communication is to notify of the generic target market assessment performed by IBUK in relation to OTC Metal Futures. The notification also contains an indication of the appropriate channels for distribution. Further information on OTC Metal Futures can be found on the dedicated pages of the IB website.
Distributors should make their own determination in relation to the specific target market for the instruments and on an on-going basis raise any issue with IBUK of material discrepancy between the target market generically identified and the specific target market.
| ESMA Requirement | Description | Target Market Criteria | Negative Target Market |
|---|---|---|---|
| Client type | Retail Clients | ||
| Professional Clients | |||
| Eligible Counterparties | |||
| Knowledge and Experience | Low | ||
| Medium | |||
| High | |||
| Financial situation, with a focus on the ability to bear losses (tolerance expressed as a percentage) | Investors with no tolerance for loss in their investment or initial amount (0% loss) |
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Investors who tolerate a moderate loss in their investment of initial amount (<50% loss) |
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Investors who tolerate a loss of the entire investment or initial amount (50> loss >100%) |
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Investors who tolerate losses exceeding their investment or initial amount (>100% loss) |
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| Risk tolerance and compatibility of the risk/reward profile of the product with the target market | Compatible with High Risk Investment (investor is willing to accept the risk of losses up to or exceeding the investment or initial amount) | ||
| Compatible with Low Risk Investment (investor is not willing to accept any loss of the investment or initial amount) | |||
| Compatible with a PRIIPs Summary Risk Indicator (SRI) | |||
| Clients' Objectives and Needs | |||
| Investment Tenor | Short | ||
| Medium | |||
| Long | |||
| Investment Objective | Capital Protection | ||
| Appreciation | |||
| Future income stream | |||
| Liquidity | Requires the possibility to exit the investment early | ||
| Willing to hold the investment until its maturity | |||
| Additional Criteria | Investment | ||
| Hedging | |||
| Financing | |||
| Portfolio diversification | |||
| Trading profits | |||
| Speculation | |||
| Distribution Strategy
|
Advised | ||
| Non-Advised | |||
| Execution only | |||
| Discretionary | |||