PRODUCT DISCLOSURE STATEMENT Contracts for Difference

Transcription

1 PRODUCT DISCLOSURE STATEMENT Contracts for Difference Issued by: AGM Markets Pty Ltd. ACN Australian Financial Services Licence No To be provided by: Ozifin Tech Pty Ltd ACN Operating as Corporate Authorised Representative (No ) of AGM Markets Pty Ltd.

2 Contents 1. IMPORTANT INFORMATION THE CFDs FOREX CFDs THE FINANCIAL SERVICES YOUR ACCOUNT HOW TO TRADE CONTACT DETAILS COSTS, FEES, EXPENSES & CHARGES ADJUSTMENTS AND CLOSING OUT BONUSES CLIENT MONEY COMPLAINTS AND DISPUTE RESOLUTION SYSTEM COMPENSATION; REMUNERATION AND CONNECTIONS TO THIRD PARTIES ADDITIONAL INFORMATION BENCHMARKS GLOSSARY OF TERMS TRADING EXAMPLES...23 SUMMARY This Product Disclosure Statement (PDS) is issued by AGM Markets Pty Ltd., ACN , with its Australian Financial Services Licence No , in connection with Contracts for Difference issued by it to be traded by retail customers through Ozifin Tech Pty Ltd., our Corporate Authorized Representative (No ), ACN The purpose of this PDS is to provide you with the information with regards to trading in Contracts for Difference (CFDs). CFDs are leveraged and risky financial products, and may not be suitable for all retail customers, and you should carefully read this PDS and evaluate its suitability to you. This document details some of the benefits and risks of trading CFDs, the costs and fees which may be applicable to you when trading CFDs, and other useful information which we believe should be brought to your attention. If you shall have any further queries in any regard, contact details are also available in this PDS, and we will be glad to assist you. Our contact details are available in Section 7 of this PDS. 1

3 1. IMPORTANT INFORMATION In this Product Disclosure Statement (this PDS ), unless otherwise defined herein, capitalised words and expressions shall have the meaning ascribed to them in the glossary of terms provided at Section 16 below About the Issuer AGM Markets Pty Ltd. (ACN ), with Australian Financial Services License Number (the AFS Licence ), is authorised amongst other things to make a market for, and provide general financial product advice with respect to, derivatives. AGM Markets Pty Ltd. shall be referred to in this PDS as "Company", us or we About our Authorised Representative Ozifin Tech Pty Ltd. (ACN ) is our Corporate Authorised Representative (no ) under our AFS Licence, and is authorised by us to provide certain services on our behalf, all as further detailed below. Ozifin Tech Pty Ltd. is the owner and operator of the website (the Website ). OzifinTech Pty Ltd. shall be referred to in this PDS as the CAR, an abbreviation of Corporate Authorised Representative Purpose of this PDS This PDS is dated November 2017 and is prepared by us in relation to over-the-counter (OTC) Contracts for Difference issued by us to be traded by retail customers (the CFDs ). The PDS describes the key features of the CFDs, their benefits and risks, the costs and fees of trading and other relevant information, meant to provide you with the information you need to know in order to make a decision about whether or not you wish to trade CFDs. This PDS is issued by us, and we approve and authorise its distribution by the CAR. You should read all of this PDS, the Financial Services Guide (FSG) and the Account Terms available on the Website before deciding to trade in CFDs Risk Warning CFDs are derivatives, as defined in Section 761D of the Act. They are complex and risky financial products, and may not be suitable for you. You should not engage in derivative transactions or enter into derivative related contracts unless you properly understand the nature of derivative products and are comfortable with the attendant risks. For the purposes of this PDS, the Act means the Corporations Act 2001 (Cth) and regulations made under it, as amended from time to time (including, for the avoidance of doubt, as amended by the Corporations Regulations 2001 and ASIC Legislative Instruments). 2

4 Prior to trading in CFDs you should: (i) carefully read the Key Risks detailed in Section 2.6 below; (ii) ensure that you fully understand the risks involved and that you can bear such risks; and (iii) consider whether such trading is suitable for you General Information; No Personal Advice This PDS contains general advice only, and does not constitute any recommendation, personal advice or opinion. Neither we, the CAR nor this PDS take into account your objectives, financial situation or needs. We and the CAR are not authorised to provide, and will not provide you, any personal financial advice. You should consider whether to trade in CFDs, having regard to your objectives, financial situation and needs. You should obtain financial, legal and tax advice, as well as consult any other relevant professional advisors, before trading in CFDs. It is important that you understand that when you trade in CFDs you are not trading in the Reference Security, and do not acquire any rights or interests in the Reference Security, including any right to receive dividends or to participate in votes or meetings Disclaimer The information in this PDS is up to date at the time it was prepared, but it is subject to change at any time. Any updates will be posted on the Website. A copy of this PDS can be downloaded from the Website or you can contact us (by the means detailed in Section 7 below) to request that a paper copy be provided to you free of charge. Please note that examples provided in this PDS are for information purposes only and do not necessarily reflect the current or future market. References to other parties and/or instruments are for information purposes as well. Examples do not constitute any general or personal product advice. The legal terms governing your dealing in trades in CFDs with us are set out in the Account Terms available on the Website. By opening an Account with the CAR you agree to, and to be legally bound by, the Account Terms. This PDS is provided to you for informational purposes alone, and does not constitute any form of agreement between you and us or the CAR (or any other party). 2. THE CFDs 2.1. About CFDs CFDs are over-the-counter Financial Products which constitute a contract between the buyer (you) and the issuer (us), by which you can make a profit or loss from changes in the price or level of a certain financial product without actually owning that financial product or having any interest in it. 3

5 The financial products which CFDs may be based upon may be securities, indexes, commodities, foreign exchange currencies, futures contracts, bullions or other instrument. The instrument by reference to which the value of a specific CFD is determined is called the Reference Security. Essentially, the amount of any profit or loss made on the CFD will be equal to the difference between the price of the CFD s Reference Security when the CFD is opened and the price of the CFD s Reference Security when the CFD is closed, multiplied by the number of the Reference Securities to which the CFD relates. The calculation of profit or loss is also affected by other payments, such as transaction costs and Adjustment Events (see further Section 9 below). You can take both long and short CFD positions. If you take a long position, you profit from a rise in the price of the Reference Security, and you lose if the price of the Reference Security falls. Conversely, if you take a short position, you profit from a fall in the price of the Reference Security and lose if the Reference Security price rises. As well as dealing CFDs on equities, you can also deal CFDs on many world indices. The same principle applies - go short if you think the market index level is going to fall, or go long if you think the index is going to rise. This can be useful if you want to follow a specific market trend rather than individual shares or commodities. Index CFDs aim to reflect the fair value of the index but the actual bid and offer price may differ slightly from the actual index level. Each index is traded as a number of currency units per index point. For example if the S&P / ASX 200 index is valued at 1000, then trading 10 index CFDs would mean the value of the trade was $10,000. With an Initial Margin requirement of 5%, the trade would require $500 in cleared funds to be paid into our account before (see further information about Margins in Section 2.3 below). CFDs do not have an expiry date and will remain open until they terminate, either because of the termination of the Reference Security or because you or we, in our sole discretion, Close Out the open position. CFDs, unlike shares, are not standardised, and each contract may have its own terms. The terms of the CFDs are issued on the Account Terms. Trading in CFDs, unlike investing or purchasing the Reference Security, do not give you any rights or interests in the Reference Security, including any right to receive dividends or to participate in votes or meetings. For a better understanding of the way CFDs work, please see the transaction examples available for your convenience at Section 17 below Purpose of Trading in CFDs People who trade in CFDs may do so for a variety of reasons. CFDs may, among other things, help to manage cash flow, price and market risks. Some trade for speculation, that is, with a view to profiting from fluctuations in the price or value of the CFD's Reference Security. For example, share CFD traders may be short-term investors, who are looking to profit from intra-day and overnight market movements in the CFD's Reference Security. CFD traders do no need to sell or purchase the Reference Securities themselves, but may instead be looking to profit from market movements in the shares concerned. 4

6 Others trade CFDs to hedge their exposures to the CFD's Reference Security or its market. For example, CFDs can be used as a risk management tool to enable those with existing holdings of exchange traded options, or short CFD positions to hedge their position by investing in CFDs. If the price of the Reference Security the investor holds falls, the short CFD positions will wholly or partly offset the losses incurred on the physical holdings Leverage and Margin CFDs are leveraged products, meaning that you are required to pay only a certain fraction of the total value of the contract in order to enter and maintain a CFD ( Margin ). This means that with a small amount of money you are able to control a larger amount, giving you a higher market exposure. You should be always aware that just as well as the leverage may work in your favor, magnifying your gains, it may also work against you, in similarly magnifying your losses. Since the CFDs are leveraged instruments, by trading them you are exposed to the risk of losing substantially more than your initial investment amount. Margin cover is usually required in the following cases: as initial margin, to enter into a CFD (the Initial Margin ). The Initial Margin will typically be a percentage of the total value of the contract, to be determined by us; as variation margin, meaning adjustments to the Margin cover, due to falls in the value of the Reference Security (a Variation Margin ); or as maintenance margin - to maintain the Margin cover in light of adjustments to the percentage of value of the security allowed as Margin cover or other trading platform adjustments not related to the price movements of the financial products (a Maintenance Margin ). Variation Margins and Maintenance Margins must be paid by you, see explanation about margin calls below. The minimum Initial Margin will be set by us in AUD terms representing a percentage of the total value of the CFD, and shall typically be between 5% and 30%, but may be as high as 100% of the CFD value. For example, if the value of a CFD is AUD 220,000, the Initial Margin might be AUD 22,000, which represents 10% of the CFD value. The Margin cover is usually provided from available funds in your trading account. This means that you must have sufficient funds in your trading account before you can trade. Owing to the volatility of the market, the amount of required Margin cover may change after a position has been opened, requiring a Variation Margin to be paid by you at that time. The Margin requirement is calculated to cover the maximum expected movement in the market at any time Margin Calls We or the CAR may demand that you deposit additional funds into your Account to meet Margin requirements in order to maintain your open position ( Margin Call ). Upon receipt of a Margin Call, you may either reduce your position in order to reduce your Margin requirement or deposit additional funds into your account to increase the equity amount and satisfy the Margin Call. After you receive a Margin Call, and prior to your completion of one of the two steps above, you will not be able to open any new positions. Should you not comply with a Margin Call, we reserve the right to Close Out all positions in order to protect against exposure to further losses. Any losses resulting from Closing Out your positions will be debited to your trading account and you may be required to provide additional funds 5

7 It is important to note that we are under no obligation to send you a Margin Call, and that the obligation to pay the Variation Margin is upon you, and it incurs at the time of the occurrence of any movement in the market which results in an unrealised loss, regardless as to if or when a Margin Call is made. In the case where you choose to deposit additional funds to comply with a Margin Call, it is your responsibility to provide the payment in cleared funds on time, taking into account the processing time of the deposit. The terms relating to Margin and Margin Calls are further detailed in the Account Terms Key benefits of CFDs There are significant benefits associated with trading including, but not limited to: Hedging- You can use CFDs to hedge exposure of a current holding in the Reference Security. Speculation- You may use CFDs to speculate on the values of the Reference Security., without the need to buy or sell the Reference Security. Leverage and Margin- Trading in CFDs allows you to trade foreign exchange on a margined basis, as opposed to paying upfront the entire contract value, hence allowing you to get larger market exposure for your investment Key risks of CFDs are: You should carefully consider whether dealing in CFDs is appropriate for you in the light of your circumstances. In deciding whether or not you wish to become involved in these transactions, you should be aware that these products are derivative products that are speculative and carry significant risks. We do not make or give any recommendation, advice or opinion in relation to CFDs. We do not take into account your objectives, financial situation or needs. You should obtain your own independent financial, legal, taxation and other professional advice as to whether the CFDs are an appropriate investment for you. Trading in CFDs should not be undertaken unless you understand and are comfortable with the risks of geared investments. This section DOES NOT detail ALL risks applicable to CFD trading, but rather seeks to highlight the key significant risks involved: Performance Risk We can not, and do not, guarantee the investment performance of CFD products or the investment performance of the Reference Security. Note that past performance is no indication or guarantee of future performance. Loss of Money Since the CFDs are leveraged instruments, by trading them you are exposed to the risk of losing substantially more than your initial investment amount. Volatility and Speculation CFDs are subject to many influences which may result in rapid fluctuations and reflect unforeseen events or changes in conditions with the inevitable consequence being market volatility. Value Risk CFDs are valued and priced by reference to the price or level of the Reference Security. If the Reference Security ceases, for any reason, to be traded for a period of more than 2 Business Days, we may exercise our discretion to determine a value to Close Out the Transaction, as defined below. In addition, we will only perform the contract agreed with you at the price or rate agreed for that contract, and not at any other price or rate available in the market. Execution Risk 6

8 A delay in execution may occur for various reasons, such as technical issues with your internet connection to the servers of the Platform. The Platform may not be maintaining a constant connection with the trading servers. In such circumstances, the price offered by us may change before we receive your order. If you place an order and the price changes before the order is received, the order will be accepted at the new price. Regulatory Risk Clients may incur losses that are caused by matters out of our control. These may include changes in taxation or in government fiscal, monetary and regulatory policies. A regulatory authority can, in extreme situations, suspend trading or alter the price at which a position is settled, which will affect the CFDs. Platform Risk There are risks in trading through the Platform. These include but are not limited to: - Software errors and bugs, delays in telecommunications systems, interrupted service, data supply errors, faults or inaccuracies and security breaches; - Data of users of the Platform may be visible to others, institutions or brokers may be able to see your orders and other communications relating to trading and execution without your consent (or ours) and that third parties (including persons on private networks) will have the ability to attach to your network; - System failures: If the Platform is suspended for any reason whatsoever, you may have difficulties in executing orders or using any other services provided through the Platform. In such cases other communication forms may be available for such services, but we cannot guarantee such failures shall not occur, and shall not be liable if they do; and - We may limit the total volume of trades you may have outstanding at a given time, which could prevent or delay execution of your orders, at your risk. We shall not be liable for any: (i) loss, expense, cost or liability suffered or incurred by you due to failure of the Platform, transmission failure or delays or similar technical errors whether or not the error might be due to factors under our control; and/ or (ii) loss of profits or losses you might suffer due to errors in quotes which are the result of your typing errors or feed errors committed or your erroneous perception of information entered into the system by you. Use of Client Money The funds you deposit into your trading account will be held in our Client Money Trust Account, together with funds deposited by other clients. Funds held in a Client Money Trust Account may be withdrawn by us for different purposes (see Section 11 below), including for meeting obligations incurred in connection with guaranteeing, securing, transferring, adjusting or settling dealings in derivatives by us, including dealings on behalf of people other than you. We shall be entitled to all interest earned on Client Money, and to all benefits derived from investments made with Client Money by us, and we may share such benefits with the CAR pursuant to our agreements. Indemnity and Limitation of Liability The Account Terms extensively protect us and the CAR. Under the Account Terms you also indemnify us and/or the CAR in certain scenarios. Counterparty Risk We are the counterparty to every Transaction. You will have an exposure to us in relation to each Transaction. You will be reliant on our ability to meet our counterparty obligations to you to settle the relevant contract. If we default on our obligations, you may become an unsecured creditor in an administration or liquidation and will not have recourse to any underlying assets in the event of our insolvency. 7

9 Operational Risk There are operational risks in CFDs. The operation of your Transactions is reliant on the continuing operation of, among other things, the Platform, the internet connection, and your personal computer. Disruptions, failures or delays in any of these may lead to delays in execution and settlement of Transactions. We and/or the CAR shall not be liable to you for any loss, expense, cost or liability suffered or incurred by you due to failure of the Platform, transmission failure or delays or similar technical errors whether or not the error might be due to factors under our control, yours, or the CAR s. Conflict of Interest Trading with us may give rise to a conflict of interest as we are acting as a principal and we may be transacting with other persons at different prices and/or rates. 3. FOREX CFDs 3.1. About Forex CFDs One of the many types of instruments which may act as the Reference Security for a CFD is a currency pair (e.g. US Dollar-Great Britain Pound, Australian Dollar- Japanese Yen, etc.). A CFD which is based upon a currency pair is called a Forex CFD or simply FX. Forex CFDs are available in most currencies around the world, and are traded under the same terms applicable to other CFDs. Every Forex CFD is based upon two currencies, as follows: 1 fixed unit of a currency (the Base Currency ) = X variable units of another currency (the Term Currency ). The Base Currency and the Term Currency together comprise the Currency Pair ). The Price of a Forex CFD represents the ratio between the currencies, or in other words how many units of the Term Currency are required to purchase one unit of Base Currency? Every Forex CFD transaction has both a long (bought) and a short (sold) side, meaning you can speculate on the prospect of either one of the currencies strengthening over the other. If you speculate that the Base Currency will rise in terms of the Term Currency (i.e. a higher number of units of the Term Currency will be required to purchase one unit of Base Currency) then you should enter into a long position. If you speculate that the Base Currency will fall in terms of the Term Currency (i.e. a lower number of units of the Term Currency will be required to purchase one unit of Base Currency) then you should enter into a short position. Just like any other CFD, entering into a Forex CFD Transaction does not result in the physical delivery of any currency, and does not give you any right or title in any such currency. As FX are a specific type of CFDs, any reference in this PDS to CFD is applicable to FX as well. In addition, FX has certain unique characteristics, which are not always applicable to other types of CFDs, some of which shall be referred to below: 3.2. Quoting for FX Transactions The quotes we provide for FX Transactions are based on the values of the currencies as determined on the exchange markets on which the trading in the currencies occurs. 8

10 An FX quote (e.g. AUD/USD / represents the bid/ask spread (in this case for AUD/USD). This quote means that you can: a) buy Australian Dollars at against the US dollar; and/or b) sell Australian Dollars at against the US dollar. Generally, exchange rate quotations are to 4 decimal points (but this is not always the case, for example, the Japanese Yen is quoted to 2 decimal places). FX Transactions may be entered into by us on a matched book basis or back to back basis, and we may offset or match your Transaction by entering into a similar trade with the hedge counterparty, where applicable, or internally hedge your position by offsetting it against a position entered into by another customer Key benefits of FX Transactions They enable individuals and businesses who engage in international trading of goods or services denominated in a foreign currency to hedge their exposures to movements in the currency market on their personal or business costs. They enable traders to profit in both rising and falling markets, depending on the trading strategy they employ. The FX market provides very high liquidity, since trading occurs esentially non-stop Key risks of FX Transactions In addition to the general risks described in Section 2.6 above, which apply to FX Transactions as type of CFDs, such products have unique risks associated with trading in them, which you shall pay attention to. Like said Section 2.6, this section DOES NOT detail ALL risks applicable to FX trading, but rather seeks to highlight the key significant risks involved: The trading in foreign exchange is not regulated or supervised under any market or exchange, and therefore does not provide traders with protections which they may have under any domestic or international exchange rules (such as guarantee or compensation funds). Margin requirements- You are liable to pay Margin before the FX contract is issued and you may be required to pay more Margin before the contract is closed out. Margin requirements can change rapidly. If you do not meet Margin requirements, including at little or no notice, all or a portion of your contract position may be Closed Out without notice to you and the positions are usually (but need not be) liquidated. FX Transactions carry the risk of significant loss because the leverage obtained by you paying only a Margin. You can lose more that the Margin you pay and you can be liable to pay more for any further shortfall on your investment which was not covered by your Margin. 4. THE FINANCIAL SERVICES 4.1. Our Position The CFDs are issued by us, and we act as the counterparty to the transaction (i.e. the party with whom you enter the contract). When doing so we act for ourselves and not as an agent for any person, and we do not act as your agent or broker for your transactions. 9

11 In relation to all Transactions, we may pass on up to 100% of the risk of a trade by engaging in Straight Through Processing to enter into equivalent transactions (in the same direction as your trade). The counterparty with which we currently engage for Straight Through Processing is TradeSoft, operated by Trade Software Solutions Limited, a company registered in England with company number Our AFS License We act under our Australian Financial Services License Number , which allows us to provide the following financial services to retail clients: provide general financial product advice for the following classes of financial products: (i) deposit and payment products limited to basic deposit products; (ii) derivatives; and (iii) foreign exchange contracts; deal in financial products by issuing, applying for, acquiring, varying or disposing of a financial product on its own behalf, in respect of the following classes of financial products; (i) derivatives; and (ii) foreign exchange contracts; deal in financial products by applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of the following classes of products: (i) deposit and payment products limited to: (1) basic deposit products; or (2) non-cash payment products; (ii) derivatives; and (iii) foreign exchange contracts; and Make a market for the following financial products: (i) foreign exchange contracts; and (ii) derivatives Our Authorised Representative The CAR, Ozifin Tech Pty Ltd. (ACN ), is our authorised representative in accordance with Section 916A of the Act, authorised by us to provide the financial services detailed in Sections 4.2.1, and Your trading Account will be established by the CAR and governed by the Account Terms by and between you and the CAR; all Transactions entered by you via the CAR s Platform will be between you and us as counterparty. When you enter into a CFD transaction, the CAR does not act as your agent, and any information or recommendation provided to you by the CAR or anyone on its behalf does not take into account your personal objectives, financial situation or needs and does not provide you with any personal financial advice. 10

12 5. YOUR ACCOUNT 5.1. Application and Registration Prior to the commencement of trading you must register your Account with the CAR. You establish an Account by completing the Application Form on the Website or by contacting the CAR directly. Please note that the setting up of a trading account is subject to the absolute discretion of the CAR, which may decline your application, require further information or any other further action prior to setting up an Account for you. Should any information which the CAR may require (in the Application Form or otherwise) not be delivered to the CAR s full satisfaction, it may, at its sole discretion, not allow you to trade or employ any other measure which it may believe to be required under applicable Anti-Money Laundering and Counter- Terrorism Financing laws, whether in Australia or otherwise. By signing or submitting (electronically or otherwise) the Application Form when you apply to become a Client or by using or accessing the Website, you agree to the terms and conditions, and make the representations and warranties, set out in this Product Disclosure Statement, the FSG and the Account Terms, all as may be amended from time to time, including but not limited to by any supplement or replacement to such documents Deposits and Withdrawals You may deposit funds into your Account in accordance with the Deposit Policy which can be found on the Website. Please contact the CAR to find out more information on payment methods. Payment methods may change from time to time. Please note that under the Deposit Policy, a minimum deposit of AUD 500 applies. We do not encourage the use of borrowed funds for investment purposes. All deposits and payments must be cleared funds before they will be available to you for trading. You may withdraw funds from your Account in accordance with the Withdrawal Policy which can be found on the Website. Please note that under the Withdrawal Policy, a minimum withdrawal amount of AUD 20 (or the same numerical amount in the currency in which you have deposited into your account) applies. 6. HOW TO TRADE 6.1. Quotes Prices for CFDs are quoted with a bid price and an ask price. The CFD quote given to you by us allows you to enter into the CFD at the higher quoted price or to close out an existing CFD at the lower quoted price Opening a Position A position is opened by either buying (going long) or selling (going short). You go long when you enter into a CFD in the expectation that the price of the Reference Security will increase. You go short when you enter into a CFD in the expectation that the price of the Reference Security will decrease. The terms of each CFD are as prescribed in the Account Terms. 11

13 Before you enter into a CFD Transaction, you are required to pay an Initial Margin, as described in Section 2.3 above. After you enter into a CFD Transaction, a confirmation of the Transaction will be delivered to you, via the Platform or by other electronic form (see further below). You will not be able to enter into any new CFD transactions where the Reference Security is subject to a trading halt or suspension by the relevant market (or if the relevant index is suspended), or otherwise not being able to be traded Transaction Confirmation We will provide you with confirmations of the Transactions you have executed, whether directly or through the CAR. Such confirmations will be sent to you automatically via the Platform and/or by . You can access your Account at any time to view your Transactions and account balances (subject to availability of communications systems). You must review any confirmation or statement immediately following you entering into a Transaction, to ensure its accuracy and you must report any discrepancies to us as soon as reasonably practical. Confirmations are deemed to be conclusive and binding on you if not objected to in writing within 48 hours of the Confirmation being available to you Closing a CFD CFDs do not have an expiry date. They remain open until they are closed in accordance with the Account Terms. When you wish to close a CFD position, you enter into a CFD which is equal and opposite to the open CFD. To do this, you contact the CAR via the online trading platform, for us to determine the current market value (or level) of the Reference Security for the CFD, with the view to closing the CFD position (or part of it). We will provide you with the current market value and you will then decide whether to accept the value, and if so, you would instruct us to close your open position in accordance with your instructions. The total closing value is then determined by multiplying the number of CFDs by the value of the CFD's Reference Security. If the Reference Security has its own termination or expiry date, then your CFD with that Reference Security will terminate on or before the expiry of the Reference Security, unless you terminate it sooner or you give instructions in time to rollover the CFD. For example, a CFD over a futures contract traded on an exchange usually has a fixed expiry date and usually some days before that there will be a notice issued by the exchange of that expiry. It is your responsibility to monitor the notice dates and expiry dates of any Reference Security for your CFDs. On the day that the CFD is closed, we will calculate the remaining payment rights and obligations to reflect movements in the contract value since the previous business close (including other credits/debits). Because you enter into a CFD to Close Out the existing CFD, there may be a Transaction Fee on the CFD used to close the position. We May Close Out a CFD without requiring your consent, under the circumstances detailed in Section 9.2 below. 12

14 7. CONTACT DETAILS 7.1. AGM Markets Pty Ltd. We can be contacted at: Address: Level 1, 189 Balaclava Road, Caulfield North, VIC, 3161, Australia; Tel: Fax: backoffice@agmmarkets.com.au 7.2. Ozifin Tech Pty Ltd. The CAR can be contacted at: Tel: support@tradefinancial.com.au Please also feel free to use the CONTACT US button located on the Website. 8. COSTS, FEES, EXPENSES & CHARGES All costs, fees, expenses and charges shall be paid by you to us, or as we may otherwise instruct you. The fees which may apply to you when trading in CFDs are: Dormant Account Fee In the event that no Transaction has been undertaken through your account for 30 consecutive days, we may charge a dormant account fee of AUD 99 per each such period (i.e. AUD 99 after 30 consecutive inactive days, another AUD 99 after a total of 60 consecutive inactive days and so on). Once a single Transaction is undertaken through your account, the days count shall be restarted. Such Dormant Account Fees, which shall be charged automatically from your Account, shall not exceed the total balance in the Account. Withdrawal Fee A withdrawal fee of up to AUD 50 (or the same numerical amount in the currency in which you have deposited into your account) for each withdrawal made; Finance Charges When you are a Long Party to a CFD, we charge you for interest payments which accrue on a daily basis and are payable daily by you; Event of Default charges We may charge you, debit your Account or otherwise be reimbursed by you for any costs and expenses which may apply to us pursuant to your Event of Default (as such term is defined under the Account Terms). Such an event includes, for example: your breach of the Account Terms, any incorrect or misleading representation by you, you becoming insolvent or bankrupt, etc. Any transaction charges, commissions, fees, Prices, premiums, settlement and clearing fees which may be imposed for any Transaction by any Exchange; Any fees, Taxes, stamp duty or other charges as may from time to time be levied on or in connection with any Transactions entered into with you or on your behalf; and 13

15 Interest in respect of any unpaid amounts payable by you under the Account Terms. Interest shall accrue on all unpaid sums from you to us at 4% per annum, to accrue daily from the date on which any payment is due until the date of its payment in full. If any change to the applicable fees may occur, we will notify you accordingly. 9. ADJUSTMENTS AND CLOSING OUT Should any event which gives us the discretion to adjust to the terms of the CFD under the Account Terms (each, an Adjustment Event ) occur, whether prior to or after you entered into a position relating thereto, we may, at our sole discretion: (i) (ii) Adjust any of the terms (including the price) of a CFD in accordance with Section 9.1 below; or If we determine (in our sole discretion) that it is not reasonably practicable to make such an adjustment, we may Close Out the CFD in accordance with Section 9.2 below. An Adjustment Event may be, for example, each of the following: (i) Any event which has a dilutive or concentrative effect on the market value of the Reference Security; (ii) If the Reference Security is a derivative which is able to be traded on a market any event in respect of which the operator of the market makes an adjustment to the terms of the Derivative. (iii) If the Reference Security is a share, debenture, unit or other security (or depositary receipt of any kind in respect of such) upon any consolidation, reclassification or sub-division, buy back, in specie distribution, takeover, scheme of arrangement or similar event or other corporate action event in respect of the security, whether or not the event triggers an adjustment to any exchange traded derivative of it; (iv) A distribution to existing holders of additional shares or other securities or other financial products granting them the right to receive dividends or other proceeds equally and proportionately with payments made to holders of the underlying securities; or securities, rights or warrants granting the right to a distribution of shares or to purchase, subscribe, or receive shares, in any case for payment (in money cash or money s worth) at less than the prevailing market price per share as determined by us; or (v) If the Reference Security is an index, a substantial adjustment to the composition of the index outside its own terms allowing for adjustments or weightings; a failure to publish the index or a suspension or cancellation of the index Adjustment of CFDs Following our determination that an Adjustment Event has occurred, we will determine the adjustment, if any, which should be made in the CFD in order to place the parties in substantially the same economic position they would have been in had the event not occurred We will notify you as soon as practicable of the adjustment, which will be deemed to be conclusive and binding on you Closing Out CFDs If at any time after the occurrence of an Adjustment Event we determine (in our sole discretion) that it is not reasonably practicable to make an adjustment in accordance this Section 9.1 above, we may at any time after the Adjustment Event Close Out the Transaction. 14

16 If the Reference Security is subject to a take-over offer or similar event, we may at any time prior to the closing date of such offer, Close Out the CFD at our sole discretion. References to offer, take-over and closing date herein shall have the same meaning given to them in the Act If the issuer whose security represents the Reference Security on which all or part of a CFD is based becomes externally administered, in accordance with the meaning in the Act (or equivalent legislation), the CFD will be taken to have been Closed Out at that time. The closing price of the CFD will be determined by us in good faith, considering a number of factors we deems appropriate including, for example, the last traded price of the Reference Security If the Reference Security on which the CFD is based becomes subject to a trade halt or suspension under the rules of the relevant market, or ceases to be listed for quotation on a market for 2 consecutive Business Days, we may, in our absolute discretion, Close Out all relevant CFDs Prior to the adjustment or Closing Out of a CFD under this Section 9, we will give you notice of our intention to do so, including the terms of such adjustment or Closing Out. Provided, however, that should we determine, at our sole discretion, that it is not reasonably practicable to give you such notice prior to the adjustment or Closing Out of a CFD, we may do so as soon as reasonably practicable thereafter, which shall not affect the terms and the time on which the adjustment or Closing Out of the CFD has taken place. Any such notice shall be provided to you via the Platform and by BONUSES Bonuses and/or other trading benefits may be offered to you from time to time ( Bonuses ). The Bonuses, where granted, may be restricted in time and be subject to terms and conditions which shall be published on the Website, promotional material or in the Account Terms. Such terms and conditions shall be subject to change at our discretion. Only after such terms and conditions are met to our satisfaction, the Bonus may be withdrawn as an available cash balance in your account. By way of example only, the Bonuses may be granted in a restricted state and may only be withdrawn from your Account after a certain period of time and/or following your performance of a certain number of trades or volume of trades. Only after such withdrawal conditions shall be met to our satisfaction, the Bonus may be withdrawn as it was an available cash balance in your account. 11. CLIENT MONEY All funds deposited by Clients in connection with their accounts with the CAR (the Client Money ) shall be dealt with in accordance with the Australian Client Money Rules Subject to the Australian Client Money Rules: Client Money shall be deposited into an aggregated account (the Client Money Trust Account ) We may invest any of the funds held in the Client Money Trust Account in different kinds of investments at our discretion. 15

17 Client Money shall be held in the Client Money Trust Account, aggregating the funds of all clients and segregated from our own funds. This means Clients Money shall not be available for general creditors in the event of our receivership or liquidation Client Money may be used by us for purposes unrelated to your Account, and as a result your money is not protected from risk of loss We are entitled to all interest earned on Client Money and all benefits derived from investments made with Client Money by us Client Money may be used by us to meet the Event of Default of any Client We may withdraw, deduct, pay, apply and use any or all Client Money to meet any liability, obligation or loss which you owe us and/or incurred by us in connection with margining, guaranteeing, securing, transferring, adjusting or settling trades (including on behalf of people other than you), including without limitation for the payment of amounts to our counterparties for Straight Through Processing All currency exchange risks regarding any payment instruction or any order or transaction entered into or arranged for you by us is your responsibility. Any conversion from one currency to another required to be made for performing or executing any payment instruction, order or transaction may be effected by us in the manner and at the time and at the exchange rates that we decide. 12. COMPLAINTS AND DISPUTE RESOLUTION SYSTEM Should you have any complaints regarding our services provided to you, these are the complaints handling systems available to you: Internal System We have an internal complaints handling policy, which is available on the Website. It is aimed to resolve any complaints or concerns which you may have with us and/or with the CAR. Any complaints or concerns should be directed to us or to the CAR by any of the communication means detailed in Section 7 above. The CAR shall inform us of any such communication received by it, and together with the CAR we shall do our best to resolve it quickly and fairly. We will investigate any complaint which is communicated promptly, and within 45 days we or the CAR will answer you in writing. Hard copy of our complaints handling policy may be obtained by contacting us or the CAR and requesting such a copy External System If you are dissatisfied with the manner in which we handled your complaint or with the outcomes of such handling, you may complain to Financial Ombudsman Service Ltd., an ASIC approved external dispute resolution scheme. Any such complaint should refer to our membership, number 31321; Contact Details Financial Ombudsman Service Ltd. GPO Box 3 Toll free: Facsimile: Website: 16

18 You may also contact ASIC, by calling the Free call Info line on COMPENSATION; REMUNERATION AND CONNECTIONS TO THIRD PARTIES Professional Indemnity Insurance Both we and the CAR are covered by professional indemnity insurance policies, which are compliant with the compensation arrangements requirements of section 912B of the Corporations Act. Our compensation arrangements take into account the nature and volume of our business, the number of clients and kind of clients we have, our representatives and the maximum potential extent of liability. Subject to its terms and conditions and exclusions, said professional indemnity insurances cover claims in relation to the conduct of our representatives and employees, including such persons employed by us (or by the CAR) at the time of the relevant conduct and who are no longer employed by us Employee Remuneration The CAR s employees and representatives, who shall be your direct contact persons and the ones providing you with financial services on our behalf, are paid by way of salary and discretionary bonus linked to predetermined objectives, and may also qualify for non-monetary benefits (e.g. sports tickets, seminars and conferences) if they meet certain predetermined performance targets. The type of benefits may vary depending on the employee s position and the particular service provided. All payments or benefits given comply with the Act, and particularly, no such payment or benefit shall be dependent on the employee s offering or selling a particular financial product or class of financial products. The bonuses to be granted to employees may be determined by, among other considerations, the total funds deposited by clients into their accounts, to the extent permitted by law. Should you require further information on this matter, please contact us or the CAR using the contact details provided herein Third Parties We and/or the CAR may engage with unrelated third parties for different types of collaborations, including for marketing and reference of potential clients to receive services from us and/or the CAR; such business arrangements may include commissions or other fees to be paid to such third parties, which may be determined by the number of persons referred by them and/or the trading volumes of such persons. 14. ADDITIONAL INFORMATION Your Personal Information A copy of the Privacy Policy is available on the Website and can be obtained by contacting us and requesting a copy. We and/or the CAR collect and keep your personal information to provide you with products and services you request as well as other information, products and services offered by or through us or the CAR Our Financial Information As holders of the AFS License, we are obligated to report to ASIC regarding various issues, including submitting our audited financial statements. Should you require so, we will provide you an electronic copy 17

19 of our latest audited financial statements upon request. Such a request may be communicated to us or to the CAR Cooling Off There is no cooling off arrangement for CFDs Tax You should consult your tax advisor before trading in these financial products as they may have taxation implications for you. The following information should be regarded as general information only. Goods and Services Tax To our understanding, no Goods and Services Tax should be payable in relation to your trading of CFDs, as they are considered to be financial supplies under A New Tax System (Goods and Services Tax) Act Consequently, they are input taxed and no Goods and Services Tax is payable on their supply. Capital Gains Tax CFDs positions may constitute a capital gains tax asset held by you for the purposes of applying the capital gains tax provisions to any capital gain or capital loss realised by you. Income Tax Australian taxpayers generally calculate their taxable income by including assessable income and allowing for losses incurred in gaining or producing assessable income. CFDs may be considered as income or losses Ethical Considerations Labour standards or environmental, social or ethical considerations are not taken into account when issuing, providing and/or trading in CFDs Jurisdictions This PDS is not intended to and does not constitute any offer or invitation, directly or indirectly, in any jurisdiction where the offer or invitation would breach the applicable laws or require the PDS or any other document to be lodged or registered. The distribution of this PDS in jurisdictions outside the Commonwealth of Australia may be subject to legal restrictions and therefore persons into whose possession this PDS comes should seek advice on and observe those restrictions. Failure to do so may constitute a violation of financial services and other laws. Without limitation, the offer or invitation to which this PDS relates is not available to US investors. 18