TABLE OF CONTENTS. 1. Important Information... 4 NOTES AND DISCLAIMER... 4 HOW TO CONTACT US... 4 ELECTRONIC VERSION OF THE PDS...

Transcription

1

2 TABLE OF CONTENTS 1. Important Information... 4 NOTES AND DISCLAIMER... 4 HOW TO CONTACT US... 4 ELECTRONIC VERSION OF THE PDS... 4 UPDATED INFORMATION... 4 TREATMENT OF OVERSEAS APPLICANTS... 4 RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION... 5 APPLICATIONS... 5 PRODUCTS COVERED IN THIS PDS... 5 CALL RECORDINGS Terms and Conditions Advice Summary Table Key Features of Core Liquidity s Margin FX Contracts... 8 MARGIN FX CONTRACTS... 8 HOW IS THE EXCHANGE RATE CALCULATED?... 9 CALCULATING PROFIT AND LOSS... 9 LEVERAGING Benefits of Trading Core Liquidity s Margin FX Contracts Risks of Trading Margin FX Contracts DERIVATIVES RISK LEVERAGE CORE LIQUIDITY s RISK/COUNTERPARTY RISK MARKET VOLATILITY FOREIGN EXCHANGE RISK CLIENT S MONEY MARGINS STOP ORDERS AND LIMIT ORDERS ARE NOT GUARANTEED INTEREST, SWAP CHARGES AND SWAP CREDITS GAPPING YOU MAY NOT BE ABLE TO MANAGE RISK OPERATIONAL RISKS CONSEQUENCES OF YOUR DEFAULT OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS INFORMATION WE MAKE AVAILABLE EXECUTION RISK ELECTRONIC TRADING PLATFORM RISK Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

3 REGULATORY RISK NO COOLING OFF SUPERANNUATION FUNDS Margin FX Contracts Examples LONG POSITION MARGIN FX CONTRACT SHORT POSITION MARGIN FX CONTRACT ASIC Regulatory Guide 227 Disclosure Benchmarks Opening an Account The Margin FX s Account WHAT IS MARGIN FX s ACCOUNT? HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD? HOW DO YOU GET FUNDS IN AND OUT OF YOUR MARGIN FX s ACCOUNT? DO YOU GET INTEREST ON YOUR MARGIN FX s ACCOUNT BALANCE? Operating an Account HOW DO YOU OPEN A MARGIN FX CONTRACT? TYPES OF ORDERS ACCEPTANCE OF ORDERS HOW DO YOU CLOSE OUT A MARGIN FX CONTRACT? WHAT HAPPENS ON THE VALUE DATE OF A MARGIN FX CONTRACT? CORE LIQUIDITY s TRADER PLATFORMS Margin Requirements WHAT IS MARGIN? INITIAL MARGIN VARIATION MARGIN YOU ARE RESPONSIBLE FOR SATISFYING THE MARGIN REQUIREMENTS Fees and Other Costs MARK-TO-MARKET PAYMENTS THAT REPRESENT THE UNREALISED PROFIT ON AN OPEN MARGIN FX CONTRACT SPREADS DEFAULT INTEREST SWAP CREDIT AND SWAP CHARGE FOR MARGIN FX CONTRACTS CURRENCY CONVERSION CALCULATION FEE MARGIN VARIATION OF FEES AND COSTS INTEREST ON ACCOUNT BALANCES INTERNATIONAL TRANSFER FEES OTHER FEES AND COSTS Taxation TAXATION ADVICE Disclosure of Interest Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

4 17. Privacy Policy Dispute Resolution FINANCIAL OMBUDSMAN SERVICE (FOS) Anti-Money Laundering and Counter-Terrorism Financing Client Agreement Glossary Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

5 1. Important Information NOTES AND DISCLAIMER TermsusedinthisDocumenthavedefinedmeaningsandyou shouldreferto Glossary inthelastsectionofthisdocument. Core Liquidity Markets Pty Ltd ACN ( Core Liquidity Markets, Core Liquidity, we or us ) is a Corporate(Authorised(RepresentativeofGOMarketsPtyLtd (AFSL ABN ).WhentradingwithCore Liquidity, you are dealing with GO Markets Pty Ltd as principal.anytransactionscarriedoutonthecoreliquidity s trading portal or by any other means are received and processedbygomarketsptyltd. This Product( Disclosure( Statement ( PDS ) is dated 14 th of Marchof2014andwaspreparedbyGOMarketsPtyLtd.Its purpose is to help you decide whether Margin( Foreign( Exchange ( MarginFX )contractsareappropriateforyour financial objectives, situation and needs. It has not been prepared to take into consideration your current financial needs or objectives. This PDS does not constitute a recommendation,adviceoropinion.itisgeneralinformation only. Margin FX products are considered speculative products whicharehighlyleveragedandcarrysignificantlygreaterrisks thannontgearedinvestments,suchasshares.youshouldnot investinmarginfxproductsunlessyouproperlyunderstand thenatureofmarginfxproducts,andarecomfortablewith the attendant risks. You should obtain financial, legal, taxationandotherprofessionaladvicepriortoenteringinto amarginfxtransactiontoensurethisisappropriateforyour objectives,needsandcircumstances. ThetaxationconsequencesofMarginFXtransactionscanbe complex and will differ for each individual s financial circumstances,andyourtaxadvisershouldbeconsultedprior toenteringintoamarginfxtransaction. CoreLiquidityalsorecommendsthatyouseekindependent advice to ensure this is appropriate for your particular financialobjectives,needsandcircumstances. Noaspectofthisproducthasbeenendorsedorapprovedby the Australian( Securities( and( Investments( Commission ( ASIC )oranypartyormarketreferredtointhispds.this PDShasnotbeenlodgedwithASICandisnotrequiredbythe Corporations* Act to be lodged with ASIC. ASIC takes no responsibilityforthecontentsofthispds. Nothing in this PDS should be considered as a recommendationtotradeinmarginfxcontractsortradein anyparticularcurrencyinanyway. Core Liquidity does not guarantee the investment performance of Margin FX products or the investment performanceoftheunderlyingmarketsorinstruments.past performance is no indication or guarantee of future performance. Use of examples in this PDS are provided for illustrative purposesonlyanddonotnecessarilyreflectouractionsor determinationsoraninvestor spersonalcircumstances. HOW TO CONTACT US Name: CoreLiquidityMarketsPtyLtd ACN: Address: Level50 120CollinsStreet Melbourne VIC300 Phone(AUS): Phone(UK): ETmail: support@clmforex.com Website: ELECTRONIC VERSION OF THE PDS This PDS documentation is available on the internet at in electronic format. Any person receiving this documentation electronically who requests a paper copy will be sent documentation to include account openingformsandthefinancial(services(guide( FSG )from CoreLiquidity. UPDATED INFORMATION All clients shall be bound by the contents of this PDS. InformationwhichisnotmateriallyadversetoInvestorsmay besubjecttochangefromtimetotimeandwillbeupdated on Core Liquidity s website at If you require a paper copy of any updated information, please contact Core Liquidity. Core Liquidity may issue a supplementary or replacement PDS as a result of certain changes,whichshallbeavailableonourwebsiteorshallbe distributedinelectronicformasrequired. TREATMENT OF OVERSEAS APPLICANTS ThisPDSdoesnotconstituteanofferorinvitationinanyplace outsideaustraliawhere,ortoanypersontowhomitwould beunlawfultomakesuchanofferorinvitation. The distribution of this PDS (electronically or otherwise) in anyjurisdictionoutsideaustraliamayberestrictedbylawand personswhocomeintopossessionofthispdsshouldseek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicablelaw. The offer to which this PDS relates is available to persons receiving the PDS (electronically or otherwise) in Australia, whoareaustralianresidentsandwhoprovideanaustralian addressforservicewhenmakingtheirapplication. ApplicationformswhichdonotspecifyanAustralianaddress for service (or which are accompanied by payment drawn fromaforeignbankaccount)mayberejectedandreturned. 4 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

6 RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION DistributionofthisPDSoutsideAustraliamayberestrictedby law.thispdsisnotintendedto,anddoesnotconstitutean offerofsecuritiesorrecommendationtotradeinmarginfx productsatanyplacewhich,ortoanypersontowhom,the makingofsuchofferwouldnotbelawfulunderthelawsof thatjurisdiction. APPLICATIONS IfyouwishtoapplyforaMarginFXaccountinpaperform, youmustcompleteandreturnthecoreliquidityapplication formagreeingtobeboundbythecontentsofthispds,the ClientAgreement,theTermsandConditionsandtheFSG.If an electronic Margin FX application is completed, you will need to electronically agree that you have read and understoodtheclientagreement,thetermsandconditions, thefsgandthispds.whenapplyingforamarginfxaccount youagreetobeboundbythecontentswithinthispds. PRODUCTS COVERED IN THIS PDS ThisisaPDSforderivativesandforeignexchangeproducts provided by Core Liquidity. These are overbthebcounter ( OTC )contracts.foreign(exchangeisessentiallyexchanging onecurrencyforanother. The ExchangeRate isthepriceofonecurrencyintermsof anothercurrency,suchasthepriceoftheaustralian(dollar ( AUD )intermsoftheunited(states(dollar( USD ). Forexample,ifthecurrentexchangeratefortheAUDagainst theusdisaud/usd0.9000,thismeansthat1audisequal to,orcanbeexchangedfor,0.9000usdor90uscents. CoreLiquidity sproductsdonotresultinthephysicaldelivery ofthecurrency,includingsomeproductswhicharedeemed to be foreign exchange contracts. All of the Margin FX products are cash adjusted or Closed Out by the client i.e. thereisnotaphysicalexchangeofonecurrencyforanother. CALL RECORDINGS Pleasenotethatyourcallmayberecordedfortrainingand monitoring purposes. Any advice provided to you by our representativeisgeneraladviceonly,anddoesnottakeinto accountyourobjectives,financialsituationorneeds. 2. Terms and Conditions InformationprovidedtoyouinourFinancial(Services(Guide ( FSG ) and this PDS is important and is binding on you. Additionallegaltermsgoverningourrelationshiparedetailed intheclient(agreement.ifyouareapplyingonlineyoumust complete the application in its entirety and then electronically submit the application to Core Liquidity for processing.ifyoucompleteahardcopyapplicationyoumust completetheapplicationinitsentirety,signandreturnthe applicationformviaetmail,faxorbypost,andthenhaveyour AccountapprovedbyCoreLiquidity. PleasenotethatCoreLiquidityreservestherighttorefuseto openamarginfxaccountforanyperson. CoreLiquiditydoesnotguaranteetheperformance,returnof capitalfrom,oranyparticularrateofreturn,ofamarginfx product or transaction. Clients may lose more than the amountoffundsintheirmarginfxaccount,andshouldonly invest risk capital (that is, capital you can afford to lose). Pleasenotethatthehistoricalfinancialperformanceofany MarginFXorunderlyinginstrument/marketisnoguarantee orindicatoroffutureperformance. PleasenotethattheexamplesprovidedinthisPDSareonly providedforillustrativepurposesonlyanddonotnecessarily reflectcurrentorfuturemarketorproductmovements,the valuesthatcoreliquiditywillapplytoatrade,norhowsuch tradesimpactyourpersonalcircumstances.thefiguresused in the examples do not necessarily reflect your personal circumstancesanddonotrestrictinanymannerthewayin whichcoreliquiditymayexerciseitspowersordiscretions. Those examples do not constitute general or personal financialproductadvicetoanypersonreadingthispds. Core Liquidity accepts Margin FX transaction order instructionsprimarilyviatheelectronictradingplatformand willalsoacceptorderinstructionsviatelephone. Youarerequiredtoaccesstheelectronictradingplatformon adailybasistoconfirmthatanyorderinstructionshaveinfact beenreceivedbyus,retconfirmallordersthatyouplacewith us, review order confirmations we provide, to ensure their accuracy and monitor your Margin obligations. Any order discrepanciesidentifiedmustbereportedtousimmediately. CoreLiquiditywillprovideallclients,viatheelectronictrading platform or the website, with access to both daily and historical account statements allowing you to check your openpositions,marginrequirementsandcashbalances,and tradingconfirmations.shouldyouhaveanyqueriesrelating toyourstatementsweencourageyoutocontactus. 3. Advice Core Liquidity is authorised to buy and sell Margin FX contractsandtogiveadviceinrelationthereto. WeonlyprovideyouwithGENERALADVICE,whichdoes nottakeintoaccountyourparticularneeds,objectivesand circumstances. No personal advice will be provided to any clientunderanycircumstances. This PDS does not take into account your investment objectives,financialsituationorneeds.accordingly,nothing inthispdsshouldbeconstruedasarecommendationbyus or any other person to invest in Margin FX contracts, a currencyoranyotherfinancialproduct.youareresponsible for the selection of the Currency( Pair for any Margin FX contract you transact with us. We make no representation abouttheperformanceofanycurrency.theperformanceof the Margin FX contract will depend on the investment decisionsmadebyyou. 4. Summary Table On the next page, you will find the summary of the key featuresandcharacteristicsinvolvedindealinginourmargin FXContracts. 5 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

7 Inadditiontothissummary,youshouldensureyouhaveread andunderstoodthecontentofthispds,theclientagreement andourfsg. ISSUE WhoistheissuerofthisPDSand themarginfxcontracts? Whatfinancialproductsdo weprovide? WhatareMarginFXcontracts? WhatisaPosition? AMarginFXContractisissued overtthetcounter.whatdoesthis mean? Whatchargesarepayablewhen dealinginmarginfxcontracts? HowdoIopenanAccount? Whatistheminimumbalanceto openanaccount? HowdoyoudealinMarginFX contractswithus? SUMMARY CoreLiquidityisaCorporate(Authorised(RepresentativeofGOMarketsPtyLtd.ThisPDS wasissuedandpreparedbygomarketsptyltd.coreliquidityistheproviderofthemargin FXcontracts,however,whentradingwithCoreLiquidity,youaredealingwithGOMarkets PtyLtdasprincipal.AnytransactionscarriedoutontheCoreLiquidity stradingportalor byanyothermeansarereceivedandprocessedbygomarketsptyltd. MarginFXContracts. AMarginFXcontractisanagreementunderwhichyoumaymakeaprofitorincuraloss arisingfromfluctuationsinthepriceofthecontract.thepricesofourmarginfxcontracts arebasedonthepriceofanunderlyingcurrency( UnderlyingInstrument ).However,you donotownthatunderlyinginstrumentortradeitonanexchangebyowningamarginfx contract. By entering into a Margin FX contract, you are either entitled to be paid an amountofmoney,orrequiredtopayanamountofmoney,dependingonmovementsin thepriceofthecontract. TheamountofanyprofitorlossmadeonaMarginFXcontractwillbethenetof: thedifferencebetweenthepriceofthecontractwhenthepositionisopenedandthe priceofthecontractwhenthepositionisclosed; anymarginadjustmentsmadeinrespectofthecontract;and anyswap(chargesandswap(benefitsrelatingtothecontract. ThebalanceinyourAccountwillalsobeaffectedbyotheramountsyoumustpaytousin respectofyouraccountsuchasinterestondebitbalances. APositionisaMarginFXcontractenteredintobyyouundertheClientAgreement. Over[the[Counter( OTC )meansthatyoudonottradeinmarginfxcontractsthroughan exchangeormarket;rather,itisatransactionbetweenyouandus.thismeansyoucan only enter into contracts in relation to our products with us. You do not have the protectionsnormallyassociatedwithtradingonaregulatedmarket.itisnotpossibleto closeamarginfxcontractbygivinginstructionstoanotherprovider,brokeroraustralian financialserviceslicensee. ThecommonfeesandchargesyouwillincurwhendealinginMarginFXcontractsmay incorporateany,orallofthefollowing: PaymentofMargins; MarginAdjustments; DefaultInterests; SwapChargesandCreditsattheApplicableSwapRates; CurrencyConversionCalculationFees; MarktoMarketPayments; Spreads; InterestonAccountBalances; AdministrationCharges; InterestChargesAppliedtoDebitBalancesinYourAccount;and OtherFeesandCosts. Inaddition,wewillapplyabid/offerspreadinrespectofourfinancialproducts,whichwill alsoaffecttheprofitsorlossesyoumakewhendealingwiththesecontracts. ReadthisPDS,theClientAgreementandourFSG,andthencompleteanApplicationForm. Youmayobtainthesedocumentsby: telephoninguson ,or goingtoourwebsiteatwww.clmforex.com. TheminimumbalancetoopenanAccountisAUD$500(orequivalent).Unlessotherwise specified,alldollaramountsreferredtointhispdsaredenominatedinaustraliandollars. YoumayplaceorderstodealinMarginFXcontractsintwoways: Phone: OurTradingPlatformthroughacomputerconnectedtotheinternetoryourmobile telephone. 6 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

8 Whatare long and short positions? HowdoIcloseToutaposition? Howdowedealwithyourmoney? Whatismy TotalBalance? Whatismy FreeBalance? Whatis Margin? Whatisa MarginCall byus? Howarepaymentsmadeinandout ofmyaccount? DoIreceiveinterestonmoneys heldinmyaccountorpayinterest onmoneysiowetoyou? DoIpayany Financing or Swap Charges? DoIreceiveany Financing or Swap Benefits? Whatarethekeybenefitsof MarginFXContracts? WhataretherisksofMarginFX contracts? PleasenotethatCoreLiquiditydoesnotacceptordersorinstructionsfromyouthrough anyothermeans,suchasetmail,unlesswehavepreviouslyagreedwithyoutodoso.itis possibleforathirdpartytoplaceordersonyourbehalfprovidedthatawrittenpower(of( Attorneyorauthorityhasbeenreceivedandacceptedbyus. Yougo long whenyoubuyamarginfxcontractorplaceanordertoopenapositionin theexpectationthatthepriceoftheunderlyinginstrumentwillincrease,whichwouldhave theeffectthattheposition spricewillincrease. Yougo short whenyousellamarginfxcontractorplaceanordertoopenapositionin theexpectationthatthepriceoftheunderlyinginstrumentwilldecline,whichwouldhave theeffectthatthepositionpricewilldecline.ifthisoccurs,becauseyouhavesoldamargin FXcontract (ratherthanboughta MarginFXcontract),youwouldmakeaprofitifyou closedthepositionatthispoint,subjecttoourfeesandcharges. YoucloseaPositioninaMarginFXcontractbyyoutakinganequalandoppositePosition withuseitherbysinglepositionclosingoroppositepositionclosing. Moneywhichyoudepositwithuswillberegulatedinaccordancewiththerequirements ofthecorporations*act. Your TotalBalance istheaggregateof: thecurrentcashbalanceinyouraccount;and yourcurrentunrealisedprofitsandlosses. Your FreeBalance isyourtotalbalancelessyourcurrenttotalmarginrequirement. TheFreeBalanceistheamountthatyoumaywithdrawfromyourAccountorusetocover additionalmarginrequirements. Margin isinitiallytheamountthatyoumusthaveinyouraccounttoenterintoamargin FXcontractwithus. ThelevelofMarginrequiredtoopenandmaintainthesecontractsiscalledthe Initial MarginRequirement. ThesumofyourMarginRequirementsforallofyouropenPositionsiscalledthe Total MarginRequirement. MarginRequirementswillfluctuatewiththevalueoftheUnderlyingInstrumentonwhich the contract is based. Further, where you deal in a contract that is denominated in a currencyotherthanthebasecurrencyofyouraccount,yourmarginrequirementmay alsobeaffectedbyfluctuationsintherelevantforeignexchangerate. A MarginCall isademandforadditionalfundstobedepositedintoyouraccounttomeet your Total Margin Requirement because of adverse price movements on your open Positions. Youmaydepositfundsbycreditcard,electronictransfer,BTPay orbycheque.allfunds mustbeclearedfundsinyouraccountbeforetheyaretreatedassatisfyingamargincall orcanbemadeavailableforyoutouseindealinginmarginfxcontracts.paymentsusing BTPay arenotclearedfundsinyouraccountatthetimeofuseofbtpay.generally, clearedfundsarereceivedinyouraccount24hoursaftertheuseofbtpay.wewillpay youthroughelectronictransferorcheque. CoreLiquiditydoesnotpayinterestoncreditbalancesincurrencyledgersonyourAccount. However, we will charge interest on any debit balances in a currency ledger on your Account.Anyamountsofinterestpayabletouswillbedeductedfromanyamountspayable byustoyou. YoumayberequiredtopayaFinancingorSwapChargeonlongPositionsthatremainopen overnight.however,youshouldnotethatonoccasionswhenyouhavelongpositionsin MarginFXContracts,youmayinfactreceiveSwapBenefits. YoumayreceiveaFinancingBenefitorSwapBenefitonshortPositionsthatremainopen overnight.however,youshouldnotethatonoccasionswhenyouhaveshortpositionsin MarginFXcontracts,youmayinfactpaySwapCharges. SomeofthekeybenefitsforeachtypeofMarginFXcontractsofferedbyusinthisPDSare setoutinsection6. MarginFXcontractsare derivative products that are speculative, highly leveraged, and carrysignificantlygreaterriskthannontgearedinvestmentssuchasshares.youmayincur lossestotheextentofyourtotalexposuretousandanyadditionalfeesandchargesthat apply.theselossesmaybefargreaterthanthemoneythatyouhavedepositedintoyour AccountorarerequiredtodeposittosatisfyMarginRequirements.Youshouldobtainyour own independent financial, legal, taxation and other professional advice as to whether 7 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

9 Whatproceduresareinplaceto dealwithyourcomplaintsor concerns? Whatarethetaxationimplications ofenteringintoamarginfx contracts? Whatareyourtradingandoffice hours? WhatifIneedfurtherinformation? Whatadditionalfeesandcharges arepayableinrespectofamargin FXcontract? MarginFXcontractsareanappropriateinvestmentforyou.Moreinformationaboutthe risksoftradingmarginfxcontractsissetoutinsection7. ApreliminaryinvestigationofanydisputeswillbeconductedbyusandreferredtoGO MarketsPtyLtdshouldthedisputeremainunresolvedwithin3days. GOMarketsPtyLtdhasaninternaldisputeresolutionprocessinplaceforCoreLiquidity s clients and it is a member of the Financial( Ombudsman( Scheme ( FOS ), an external complaintsresolutionbody. IfyouwishtomakeacomplaintpleaseseeSection18. The taxation consequences of Margin FX transactions depend on your personal circumstances. SomegeneraltaxationconsequencesaresetoutinSection15.Thetaxationconsequences canbecomplexandwilldifferforeachindividual sfinancialcircumstances. Werecommendthatyouobtainindependenttaxationandaccountingadviceinrelationto the impact of foreign exchange transactions and products on your particular financial situation. Core(Liquidity s(trading(hours(( TradinghoursforMarginFXcontractswilldependontherelevantUnderlyingInstrument Market shoursofoperation,andaresetoutonourwebsite. Core(Liquidity s(office(hours( OurofficehoursarefromMondaytoFriday,7:00amto7:00pm,subjecttopublicholidays. Youshouldspeaktoyourfinancialadvisor,or,alternatively,youcancontactusby: Phone: support@clmforex.com Website: Whilst we endeavour to include all fees and charges in the spread quoted, in some circumstancesyoumayincurfeesandchargeswhicharesetoutinthispds.seesection Key Features of Core Liquidity s Margin FX Contracts MARGIN FX CONTRACTS Margin( FX transactions are OverBtheBCounter ( OTC ) Derivatives.Foreign(Exchangegenerallyreferstotradingin foreignexchangeproducts( currency )inthespot( cash ) markets. Marginforeignexchangeproductscanbedifferentiatedfrom foreigncurrencyastheyallowtheinvestoranopportunityto trade foreign exchange on a margined basis as opposed to paying for the full value of the currency. In other words, investors are required to lodge funds as security ( Initial Margins ) and to cover all net debit adverse market movement( VariationMargins )i.e.positionsaremonitored on a markttotmarket basis to account for any market movements. When clients are making a loss to an extent that they no longer meet the Margin requirementstheyarerequiredto topup theiraccountsorto"closeout"theirposition. Foreign Exchange is essentially about exchanging one currencyforanotheratanagreedrate. Accordingly,ineveryexchangeratequotation,therearetwo currencies.theexchangerateisthepriceofonecurrency(the Base Currency ) in terms of another currency (the Term Currency )suchasthepriceoftheaudintermsoftheusd. Margin FX contracts allow you to gain exposure to movements in currency rates. When opening a Margin FX contract,coreliquiditywillquoteabidandofferpriceforan exchangerate.forexample,wemightquotetheaudagainst theusdas0.8999/ ifyouthoughttheaudwasgoing to rise against the USD you would buy the Margin FX contractat ifyouthoughttheaudwasgoingtofall againsttheusdyouwould sell themarginfxcontractat YoucancloseyourPositioninthesameway. MarginFXcontractsdonotrequirethephysicalexchangeof onecurrencyforanother.marginfxcontractswillalwaysbe cash settled and the Margin FX Account either credited or debitedaccordingtotheprofitorlossofthetrade. MarginFXcontractsprovideanalternativeshorttomedium term trading strategy, giving you many of the benefits of trading foreign exchange without having to physically hold thecurrencies. InvestorswhotradeinMarginFXcontractsdosoforavariety ofreasons,twoofwhichare: Speculation Anattempttoprofitfromfluctuationsin thepriceofthebasecurrencyagainstthetermcurrency; Hedging( Anattempttocounteracttheriskcurrencies movingagainstyou. CoreLiquidityonlyoffers SpotMarginFX contracts.aspot( Margin( FX contract is an agreement under which you will eitherbuyorsellamarginfxcontractatafixedpricewhere the Value( Date (being the date that both parties agree to exchange payments) is within two business days after the dateofopeningthemarginfxcontract. 8 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

10 HowMarginFXcontractworksisillustratedinexamplesin Section8. Whileholdingapositionovernight,yourAccountisdebitedor credited using the applicable overnight TomBNext rate ( SwapCharge or SwapCredit ). TheMarginFXcontractisacontractbetweenyouandCore LiquiditywhoistheCorporate(Authorised(Representative(of GOMarketsPtyLtd,whichmeansyouandGOMarketsPty Ltdwillactasprincipalstothetransactionandhaveadirect creditexposuretoeachother.youdonottradethroughan exchange and are not afforded the protections normally associated with exchangettraded Derivatives, such as guaranteeagreements. HOW IS THE EXCHANGE RATE CALCULATED? CoreLiquiditycannotpredictfutureexchangeratesandour quotationsarenotaforecastofwherewebelieveafxrate willbeatafuturedate. The decision to transact at a particular exchange rate will generallybetheclient sdecision.however,forexample,core Liquiditymaycloseoutaclient sopenpositioniftheclient failstomeettheirmarginrequirements.inthissituation,the decisiontotransactataparticularexchangeratewouldbeat CoreLiquidity sdiscretion.thepricetobepaidorreceivedfor FXproductsofferedbyCoreLiquidity,atthetimetheproduct ispurchasedorsold,willbebasedonthepricecoreliquidity isquotedfromitshedgingcounterpartieswhichisacomplex calculation based on estimates of market prices and the expectedlevelofinterestrates,impliedvolatilitiesandother marketconditionsduringthelifeofthefxproduct. CALCULATING PROFIT AND LOSS Theprofitorlossfromatransactioniscalculatedbykeeping the units of one of the currencies constant (the Base Currency )anddeterminingthedifferenceinthenumberof unitsoftheothercurrency(the TermCurrency ). Theprofitorlosswillbeexpressedintheunitsofthecurrency whichisnotkeptconstant. LEVERAGING WithaMarginFXcontract,youareonlyrequiredtoprovidea MargininordertosecureanexposuretotheBase(Currency, thesubjectofthemarginfxcontract.youarenotrequiredto provide the amount of the Term( Currency to which the MarginFXcontractrelates. Below is an example of how leveraging can work for you (assumingthemarginfxcontractisnotrolledovertoanew Valuedate).Itcomparesa Long MarginFXcontractforthe purchaseofusd$100,000withjapanese(yen( JPY )withthe actual purchase of US Dollars for Japanese Yen through a foreignexchangedealer. LONGMARGINFX CONTRACT PHYSICALFXDEALER TRADE AmountofUSD( BaseCurrency ) 100, ,000 BuyPriceintermsofJPY( TermCurrency ) 84.5JPY 84.5JPY MarginRequired(assumed*to*be*1%/Purchase*Price*Payable) 84,500JPY 8,450,000JPY TotalOutlay 84,500JPY 8,450,000JPY SellPrice 84.53JPY 84.53JPY GrossProfit/(Loss) 3,000JPY 3,000JPY GoodsandServicesTax( GST ) [ [ NetProfit/(Loss) 3,000JPY 3,000JPY ReturnonInvestment 3.550% 0.036% ( Please(note(that(leveraging(has(the(effect(of(magnifying(any(profits(but(also(magnifies(any(losses(and(consequently(carries(great( risk(as(set(out(in(section(7.(the(above(example(is(for(illustrative(purposes(only.(it(assumes(the(margin(fx(contract(was(opened(and( closed(out(on(the(same(day(and,(therefore,(does(not(show(the(effect(of(a(markbtobmarket(payment(or(a(swap(charge.(the(example( does(not(take(into(account(the(effect(of(spread(or(the(currency(conversion(calculation(fee.( 6. Benefits of Trading Core Liquidity s Margin FX Contracts MarginFXcontractscanprovideimportantriskmanagement toolsforthosewhomanageforeigncurrencyexposures. Core Liquidity offers its clients the ability to buy and sell foreign currency using Margin FX contracts. This enables clients to protect themselves against adverse currency marketswings. ThesignificantbenefitsofusingMarginFXcontractsoffered bycoreliquidity as ariskmanagementtoolaretoprotect yourexchangerateandprovidecashflowcertainty.these, andotherbenefitsareasfollows: 1. ProtectanExchangeRate Core Liquidity provides an Online( Trading( Platform, enabling clients to trade in OTC Derivatives such as Margin FX contracts over the internet. This facility providesclientswithdirectaccesstooursystemwhich 9 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

11 enables them to buy and sell currency rates to protect themselvesagainstadversemarketswings. Core Liquidity also offers clients a way of managing volatilitybyusing stop[loss ordersthatenableclientsto protect themselves against adverse market swings yet secureenhancedmarketrateswhenoffered.clientscan eliminatedownsideriskbytheuseof StopOrders ifthe exchange rate reaches a particular level. In addition, clients may also use Limit Orders which allow clients theopportunitytobenefitfromfavourableupsidemarket movements. Limit(Orderscanbeusedbyyoutoplaceinstructionswith ustoopenorcloseoutamarginfxcontractwherethe relevant Base( Currency (against the Term( Currency) reachesaspecifiedpriceorbetter. Stop(Orderscanbeusedbyyoutoplaceinstructionswith ustoopenorcloseoutamarginfxcontractiftheprice ofabase(currency(againsttheterm(currency)reachesa pretdetermined level. Stop( Orders are often used to attempttolimittheamountwhichcanbelostonamargin FXcontract. Please note that Limit Orders and Stop Orders are not guaranteedandtheexecutionofsuchorderswilldepend onmarketvolatilityandliquidity. 2. TradeinSmallAmounts The Core Liquidity s system enables you to make transactionsinsmallamounts.youcanstartusingcore LiquidityevenwithanopeningbalanceaslittleasAUD $500. When trading in a Margin FX contract offered by Core Liquidity,youmaydepositthesumthatsuitsyou,orthe amountwhichisinlinewiththeamountyouarewilling torisk.withcoreliquidity,youareinfullcontrolofyour funds. Core Liquidity allows trading with as little as $2 Marginrequirements. 3. AccesstoMarketsinRealTime WhenusingCoreLiquidity,yougainaccesstoatrading system which is active and provides you with the opportunitytotradeinrealtimeonanyglobalfxmarket which is open for trading. This gives you a unique opportunity to react instantly to breaking news that is affectingthemarkets. Itshouldbenotedhowever,thattradinginthevarious currency crosses may be restricted to hours where liquidityisavailableforanygivencurrencycross. 4. ProfitPotentialinFallingMarkets Sincethemarketisconstantlymoving,therearealways trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against eachother.ifyouthinkonecurrencywillweakenrelative toanother,youwouldsellitandthenlater,ifyourview hasprovedcorrect,buyitbackatalowerpriceandtake yourprofits. 5. LiquidMarkets Theforeignexchangemarketissoliquidthatthereare alwaysbuyersandsellerstotradewith.theliquidityof thismarket,particularlywithrespecttothatofthemajor currencies,helpsensurepricestabilityandlowspreads. Theliquiditycomesmainlyfromlargeandsmallerbanks thatprovideliquiditytoinvestors,companies,institutions andothercurrencymarkettraders. 6. Real[timeStreamingQuotesandTradablePrices The Core Liquidity s execution system uses the latest highlysophisticatedtechnologiesinordertoofferyouupt totthetminutequotes. YoumaycheckyourAccountsandPositionsinrealTtime andyoumaydoso24hoursadayonanyglobalmarket whichisopenfortradingandmakeatradebasedonrealt timeinformation. Subject to satisfying the execution limits, all orders are automatically accepted without intervention from Core Liquidity. The execution limits are set out on our website at or are available by calling us. The executionlimitsaresubjecttochangeatanytime. 7. Risks of Trading Margin FX Contracts ThissectiondoesnotdetailALLrisksapplicabletoMarginFX contractsbutratherseekstohighlightthekeysignificantrisks involvedintradinginmarginfxcontracts. TradinginMarginFXcontractscarriesahighlevelofriskand returns are volatile. Core Liquidity recommends that you obtain independent professional advice and carefully considerwhethermarginfxcontractsareappropriateforyou in light of your knowledge, experience and financial needs andcircumstances.tradinginmarginfxcontractsshouldnot be undertaken unless you understand and are comfortable withtherisksofgearedinvestments. DERIVATIVES RISK Theriskoflossintradingderivativescanbesubstantial.You shouldthereforecarefullyconsiderwhethersuchtradingis suitableforyouinlightofyourfinancialcondition. Inconsideringwhethertotradeyoushouldbeawareofthe following: You could sustain a total loss greater than the amount that you deposit with Core Liquidity to establish or maintainacontract. Ifthederivativesmarketmovesagainstyourposition,you mayberequiredtoimmediatelydepositadditionalfunds asadditionalmargininordertomaintainyourposition, i.e.to TopUp youraccount.thoseadditionalfundsmay be substantial. If you fail to provide those additional funds, Core Liquidity may Close Out your Open Positions.Youwillalsobeliableforanyshortfallresulting fromthatclosure. Undercertainmarketconditions,itcouldbecomedifficult orimpossibleforyoutomanagetheriskofopenpositions byenteringintooppositepositionsinanothercontractor CloseOutexistingpositions. 10 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

12 Undercertainmarketconditions,thepricesofcontracts may not maintain their usual relationship with the underlyingforeigncurrencymarket. TheMarginFXcontractsofferedbyCoreLiquidityinvolve risk.however,theplacingof ContingentOrders,such as a Stop( Order, will potentially limit your loss. A Stop( Order will be executed at or near the Exchange Rate requestedbytheclientbutisnotguaranteedattheexact level.accordingly,stop(ordersmaynotlimityourlosses totheexactamountsspecified.acontractofthisnature willbeexecutedassoonastheexchangerateisidentical totheordergivenbyyou.stop(ordersareofferedatthe discretionofcoreliquidityandcoreliquiditymakesno guaranteethattheseorderswillbeavailableatalltimes oratallpricelevels. LEVERAGE AhighdegreeofleverageisobtainableintradingMarginFX contractsbecauseofthesmallmarginrequirementswhich canworkagainstyouaswellasforyou.theuseofleverage canleadtolargelossesaswellaslargegains.theimpactof leverageisthatevenaslightfluctuationinthemarketcould meansubstantialgainswhenthesefluctuationsareinyour favour,butthatcouldalsomeanconsiderablelossesifthe fluctuationsaretoyourdetriment. Belowisanexampleofhowleveragingcanworkagainstyou (assumingthemarginfxcontractisnotrolledovertoanew Valuedate).Itcomparesa Long MarginFXcontractforthe purchaseofusd$100,000withjapanese(yen( JPY )withthe actual purchase of US Dollars for Japanese Yen through a foreignexchangedealer. LONGMARGINFX CONTRACT PHYSICALFXDEALER TRADE AmountofUSD( BaseCurrency ) 100, ,000 BuyPriceintermsofJPY( TermCurrency ) 84.5JPY 84.5JPY MarginRequired(assumed*to*be*1%/Purchase*Price*Payable) 84,500JPY 8,450,000JPY TotalOutlay 84,500JPY 8,450,000JPY SellPrice 84.47JPY 84.47JPY GrossProfit/(Loss) (3,000)JPY (3,000)JPY GoodsandServicesTax( GST ) [ [ NetProfit/(Loss) (3,000)JPY (3,000)JPY ReturnonInvestment [3.550% [0.036% Please(note(that(the(above(example(is(for(illustrative(purposes(only.(It(assumes(that(the(Margin(FX(contract(was(opened(and(closed( out(on(the(same(day(and,(therefore,(does(not(show(the(effect(of(a(markbtobmarket(payment(or(a(swap(charge.(the(example(does( not(take(into(account(the(effect(of(spread(or(the(currency(conversion(calculation(fee. CORE LIQUIDITY s RISK/COUNTERPARTY RISK AsCoreLiquidityistheCorporate(Authorised(Representative ofgomarketsptyltd,themarketmakerortheissuerofthe MarginFXproductsdescribedinthisPDS,GOMarketsPtyLtd isthecounterpartytoeverycontract. YouwillhaveanexposuretoGOMarketsPtyLtdinrelation to each contract as is common to all OTC financial market products. You are therefore exposed to the financial and businessrisks,includingcreditrisk,associatedindealingwith GOMarketsPtyLtdandreliantonGOMarkets abilitytomeet its counterparty obligations to you to settle the relevant contract. Ourabilitytofulfilourobligationsislinkedtoourfinancial wellbeing, which is commonly referred to as credit or counterparty risk. You must make your own assessment of ourabilitytomeetourobligations.neithercoreliquiditynor GO Markets Pty Ltd has been rated by an external credit ratingagency.ifweweretobecomeinsolvent,wemaybe unabletomeetourobligationstoyou.coreliquidityorgo MarketsPtyLtdmaybecomeunabletooperateitsMarginFX marketasaresultofaregulatoryimpediment(forexample, GOMarketsPtyLtdceasingtoholdanAustralian(Financial( Services( Licence( ( AFSL ) or because ASIC imposes a stop orderonthepdsissuedbygomarketsptyltd). GOMarketsPtyLtdentersintoarrangementswiththirdparty execution and clearing providers for the facilitation of transactionsandsettlements,andavailsmoniesreceivedfor Margin Calls and settlements to such providers for this purpose. Accordingly, clients are indirectly exposed to the financial risks of our counterparties and organisations with whichgomarketsptyltdholdsclient sfunds.ifthefinancial conditionofcoreliquidityorgomarketsptyltd,orassetsof ourcounterpartiesorthepartieswithwhichweholdclient assetsdeteriorate,thenclientscouldsufferlossbecausethe return of the client capital could become difficult. In other words,intheeventthereisadeficitintheclientmoney(trust) accountandcoreliquidityorgomarketsptyltdbecomes 11 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

13 insolventorisotherwiseunabletopaythedeficiency,there isariskthatyoumaynotreceiveallthemoneyheldbygo MarketsPtyLtdonyourbehalfinthataccount. You are reliant on GO Markets ability to meet its counterparty obligations to you to settle the relevant contract. GO Markets Pty Ltd may choose to limit this exposurebyenteringintomatchingtransactionsasprincipal in the wholesale market in relation to its exposures with clients.inaddition,gomarketsptyltdmustcomplywiththe financialrequirementsimposedunderitsafslicence.ifgo Markets Pty Ltd defaults on its obligations, investors may become unsecured creditors in an administration or liquidation and will not have recourse to any underlying assetsintheeventofgomarkets insolvency. Please contact us in writing at the address/ provided herein,shouldyouwishtoobtainafreetoftchargecopyofgo Markets Pty Ltd or Core Liquidity s latest audited financial statementswhichmayassistinyourassessmentofcreditrisk. ASIC BENCHMARK COURNTERPARTY RISK GOMarketshaveaCounterpartyRiskpolicywhichincludes carefullyselectinghedgingcounterparties. Beforeengagingadditionalliquidityprovidercounterparties, GOMarketswillconductduediligence.Prospective counterpartiesaresubjecttoareviewwhichaddressesall pertinentfactorssuchas: (a)legalpowerofcounterpartytoenterintothecontract; (b)sufficientorenforceablelegaldocumentation; (c)compliancewithregulatoryrequirements; (d)managementandsecurityofdocuments. Onefactorinselectingthemiswhetherthehedging counterpartyisofsufficientfinancialstanding. CriteriatakenintoaccountbyGOMarketswhen determiningfinancialstandingareasfollows: a)whetherthecounterpartyisappropriatelylicensedand regulatedbyanindependentbodyintherelevant jurisdiction; (b)whetherthecounterpartyhasstrongfinancialand compliance(includingriskmanagement)resources; (c)whetherthecounterpartyhavebeenindependently ratedbyaratingshouse(e.g. Standard&Poor s);and (d)whetherthecounterpartyhaveaproventrackrecordin relationtootcproducts. Thecounterpartymustmeetatleast3outof4ofthecriteria andallotherduediligenceprocessesmusthavebeen undertaken. GOMarketscounterpartyduediligenceprocessesinclude: ThedueTdiligenceprocesstothe knowyour customer obligationsundertheantitmoney LaunderingandCounterTTerrorismFinancingAct 2006(AML/CTFAct); Uptodatecompanyfinancialsincludingannual returnsforthepast3years,andthoseofparent companieswhereapplicable; Obtainingcreditreportsfromleadingcredit agencies(suchasveda); GOMarketsexposurelimitsreflectamixof economicandfinancialindicators(eg,balance sheetratios;currentandforecastprofitability; industryfactors); NonTfinancialindicators(managementquality, businessstrategy,reputationalriskandany evidencefrompriorbusinessrelationships). GOMarketsrecognisesthatitisessentialtohaveanongoing understandingofthehealthoftheircounterpartiesatall times.assuch,toensureongoingsufficientfinancial standing,go Marketsundertakesproactivemeasures,includingsemiT annualduediligenceonallexistingcounterparties. GOMarketsprimaryhedgingcounterpartiesareADS SecuritiesL.L.C(licensedbytheCentralBankoftheUnited ArabEmirates),CFHClearingLimited(authorisedand regulatedbythefinancialconductauthorityintheunited Kingdom),ISPrimeLimited(authorisedandregulatedbythe FinancialConductAuthorityintheUnitedKingdom)and ForexCapitalMarkets(authorisedandregulatedbythe FinancialConductAuthorityintheUnitedKingdom). WecanprovideacopyoftheGOMarketshedgingpolicyto clientsandprospectiveclientsfreeofchargeuponrequest. Thispolicyisupdatedregularly.GOMarketsmayappoint newcounterparties,orchangeourcounterparties,from timetotime. GO#Markets#also#have#a#written#policy#relating#to#maintaining# adequate#financial#resources.#this#policy#sets#out#how#they# monitor#compliance#with#their#financial#requirements,#as#well# as#how#they#conduct#stress#testing#to#ensure#that#they#hold# sufficient#liquid#funds#to#withstand#significant#adverse#market# movements.# MARKET VOLATILITY Foreign Exchange currency markets are subject to many influenceswhichmayresultinrapidcurrencyfluctuationsand reflectunforeseeneventsorchangesinconditionswiththe inevitableconsequencebeingmarketvolatility. Giventhepotentiallevelsofvolatilityintheforeignexchange markets, it is therefore recommended that you closely monitor your positions with Core Liquidity at all times. ForeignExchangecurrencymarketsarehighlyvolatileandare verydifficulttopredict.duetosuchvolatility,inadditionto the spread that Core Liquidity adds to all calculations and quotes,nosuchmarginfxcontractofferedbycoreliquidity, oranyotherfinancialservicesprovider,maybeconsideredas asafetrade. All derivatives involve risk and there is no trading strategy thatcaneliminateit.youcouldlosealloftheinitialmargin thatyoudeposittoestablishormaintainamarginfxposition. 12 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

14 Incaseswhereyouarespeculating,wesuggestthatyoudo not risk more capital than you can afford to lose. A good generalruleisnevertospeculatewithmoneywhich,iflost, wouldalteryourstandardofliving. FOREIGN EXCHANGE RISK Yourprofitsandlossesmaybeaffectedbyfluctuationsinthe relevantforeignexchangeratebetweenthetimetheorderis placedandthetimethemarginfxcontractisclosedout. Forexample,whatmayappearasaprofitfromtheMarginFX contractmayactuallyconstituteasalossinthechosenbase currency due to currency fluctuations. Until the foreign currency balance is converted to the base currency, fluctuationsintherelevantforeignexchangeratemayaffect theunrealised(profit/lossmadeonthemarginfxcontract. Foreigncurrencymarketscanchangerapidly.Exchangerates depend on a number of factors including, for example, interestrates,currencysupply,anddemandandactionsof government.insomesituations,exchangesofcurrencymay be suspended. There is always operational risk associated with the currency conversion calculation process that is undertakenformarginfxcontracts.forexample,disruptions in our operational processes such as communications, computersandcomputernetworks,orexternaleventsmay lead to delays in the execution and settlement of a transaction. requirements.insomecircumstances,wemayneedtoclose outyouropenmarginfxcontractsimmediately,ifyoufailto meet margin requirements, in order to minimise our risk exposure. Under the Client Agreement, a failure to meet our margin requirementsisaneventofdefaultandwehavetherightto immediately close out your Margin FX contracts. You must regularlymonitoryourownmarginrequirements. Inordertomanagetheriskthatyouwouldnothavesufficient fundsinyouraccounttomaintainyourmarginfxcontract positionsopen,wemaytakethefollowingmeasures: If the margin required to maintain your Margin FX contract positions open takes up 100% of the funds showninyourmarginfx saccount,youareregardedas beingon MarginCall ; If the funds available in your Margin FX s Account only covers80%orlessofthemarginrequirementsforyour open Margin FX contracts, you will receive a visual message automatically on the Core Liquidity s Trader platform for you to consider taking appropriate action which can include depositing further funds or reducing exposure;and If the funds available in your Margin FX s Account only covers 50% of the margin requirements for your open Margin FX contracts, your worst offending Margin FX contract (i.e. the contract with the largest margin requirements)willbeautomaticallyclosedout. CLIENT S MONEY Your funds are held in GO Markets Pty Ltd. s client trust accountandarecomingledwiththefundsofallofourother clients. Subject to the Corporations* Act, your funds kept in GO Markets Pty Ltd. s client trust account can be used for the purposesofcoveringpaymentsforotherclientsandmeeting either Core Liquidity s or GO Markets Pty Ltd. s margin requirementswithitsotcderivativesproviders. Thismeansthatyoumaypotentiallysufferlossesasaresult ofdefaultbyanotherclientwheremoneyfromtheclienttrust accountsisappliedtocoverthatclient spaymentobligations. Moreover, you may not receive all the money held by GO MarketsPtyLtd. sonyourbehalfintheclienttrustaccountif thereisadeficitintheclienttrustaccountandeithercore Liquidity or GO Markets Pty Ltd becomes insolvent or is otherwiseunabletopaythedeficiency. MARGINS EachopenMarginFXcontractwillrequireyoutomaintaina certainamountofmarginwithus.inthecaseofamarginfx contract,themarginiscalculatedat1%ofthecontract(value ofthemarginfxcontractatanytime. Please note that if the price of the Base* Currency moves againstyou,youmayberequired,atshortnotice,todeposit withusadditionalcashinordertomaintainyourmarginfx contract.duetothehighlyvolatilenatureofforeignexchange markets, the time in which you are required to deposit additional cash may vary significantly. We cannot give you definite timeframes for you to meet your margin However, irrespective of the steps we take, it is your responsibility to ensure that you have paid to us sufficient fundsinordertosatisfyourmarginrequirements.ifyoufail tohavesufficientmarginatanytime,yourmarginfxcontract maybeclosedoutbyus,withoutnotice,atalosstoyouand youmaybechargeddefaultinterest. Core Liquidity has sole discretion to determine how much marginisrequired. EXAMPLE (Closing(out(Margin(FX(contracts(as(a(result(of( breach(of(margin(requirements This*example*assumes*that*the*applicable*margin*percentage* rate* is* 1%* of* the* Contract* Value* of* your* open* Margin* FX* contracts.*please*see*section(13*on*how*margin*requirements* are*determined.* TheMarginFX saccountbalanceisaud$1,500. Aclientbuys(long)1StandardlotofAUD/USD(100,000)at andthemarginrequirementisAUD$1,000. TheMarginPercentagecurrentlyheldis150%(MarginFX s accountbalance/marginx100)i.e.theclienthas1.5timesthe marginrequirement. IfAUD/USDfallsto0.8994,theMarginFX saccountbalance becomesaud$988.55whilstthemarginrequirementisstill AUD $1,000. The client s Margin FX s account balance is calculatedbydeductingthelossofusd$460oraud$ from $1,500. The Margin Percentage is now 98.85% and is deemedtobein MarginCall asthemarginfx saccount balancecoverslessthan100%ofmarginrequirement. IfAUD/USDcontinuestofallandreaches0.8976,theMargin FX saccountbalanceisnow$786.99andmarginpercentage 13 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets

15 isnow78.70%.astheaccountisbelow80%,theclientwill seeavisualreminderonthetradingplatform. AUD/USDfallsfurtherandreaches TheMarginFX s account balance falls to $ and margin percentage is now48.31%.astheaccountisbelow50%margincoverage, the position will be closed out at the first available opportunity. IftheclienthasanumberofopenMarginFXcontractsand themarginpercentageisbelow50%,themarginfxcontract with the largest margin requirement will be automatically closedfirst.othermarginfxcontracts,inorderofthelargest margin requirement, will also be closed until the Margin Percentageisrestoredabove50%. CoreLiquidity smarginrequirementsaresubjecttochange onourongoingassessmentofourriskoflossfromafailureto recoverlosses.ifwechangeourmarginrequirements,wewill contactyoudirectlyviaetmailorbycallingyou. STOP ORDERS AND LIMIT ORDERS ARE NOT GUARANTEED Theplacingofa StopOrder canpotentiallylimityourloss. However,wedonotguaranteethatastop*orderwilldoso. Similarly,a LimitOrder canmaximiseyourprofitbutthere is also no guarantee of this. This is because, for example, foreignexchangemarketscanbevolatileandunforeseeable eventscanoccur,which meansthatitispossiblethatstop* orders and limit* orders may not be accepted, or may be accepted at a price different to that specified by you. You shouldanticipatebeingstoppedoutatorlimitedataprice worsethanthepriceyouset.youmaysufferlossesasaresult. INTEREST, SWAP CHARGES AND SWAP CREDITS FinancingCosts, SwapCharges and SwapCredits can impactontheoverallreturnofamarginfxcontract.please seesection14foranexplanationofswap*chargesandswap* Credits. GAPPING In fast moving or illiquid markets gapping may occur. Gappingoccurswhenmarketpricesdonotfollowa smooth or continuous trend and are typically caused by external factors such as world, political, economic and corporate relatedevents.shouldgappingoccuronthecurrencypairof yourmarginfxcontract,youmaynotbeabletocloseout yourpositionoropenanewpositionatthepriceatwhichyou haveplacedyourorder. YOU MAY NOT BE ABLE TO MANAGE RISK Itcouldbecomedifficultorimpossibleforyoutomanagethe risk of an open Margin FX contract by entering into an oppositepositioninanothermarginfxcontracttocloseout theexistingmarginfxcontract. Thisisbecause: Wehavethediscretiontorefuseortoacceptanorder requestedbyyou.forexample,wemayrefusetoaccept anorderwhenthereisasignificantchangeinpricesover ashortperiodoralackofliquidityinforeignexchange markets due to significant volatility or uncertainty of trading;or TherelevantCurrency*Pairmaynolongerbeonourlistof availablecurrency*pair.wemaydecidetoceaseoffering acurrency*pairif,amongstotherthings: > GOMarketsPtyLtd. sotcderivativesproviderisnot abletogetquotesfromthebanksandinstitutionsin respectoftherelevantcurrencyorcurrencypairs; > Liquidityforthecurrencyispoorand/orthattrading in the currency would no longer be prudent as spreadscouldbewide;or > Governmentsinterfereinthecurrencymarkettopeg acurrencyorconvertcurrenciestoasinglecurrency suchaseuropeanmonetaryunion. Wewillinformyouviaourwebsiteandnotificationsonthe CoreLiquidity straderplatformwithinonemonthofmaking a decision to cease trading in a currency pair or becoming awarethatthecurrencypairwillnototherwisebeavailable fortrading. OPERATIONAL RISKS There are operational risks in Margin FX contract transactions.theoperationofyourmarginfx saccountand the transaction of Margin FX contracts is reliant on the continuing operation of, among other things, the Core Liquidity straderplatforms,ourcomputers,theinternet,and yourpersonalcomputer. Disruptions, failures or delays in any of these may lead to delays in execution and settlement of Margin FX contract transactions. While we will endeavour to provide you with access to trade on the Core Liquidity s Trader platforms generally 24 hours a day, from 8:00 AM AEST, Monday, to 7:00 AM AEST, Saturday, there may be disruptions in the availabilityoftheplatforms. Tothemaximumextentpermittedbylaw,noresponsibilityis taken for any liability incurred in connection with any disruption, failure or delay of the Core Liquidity s Trader platformsoranyrelatedinfrastructure.wehaveoutsourced the operation of the Core Liquidity s Trader platforms to a third party and we rely on this third party to ensure the systemsareupdatedandmaintained. CONSEQUENCES OF YOUR DEFAULT Ifyoufailtomaintaintherequiredmargin,payotheramounts payabletous,orfailtoperformanyobligationunderyour Margin FX contracts, we have extensive powers under our Client Agreement with you to take steps to protect our position including, for example, the power to close out MarginFXcontractsandtochargedefaultinterest. UndertheClientAgreement,youalsoindemnifyusforcertain losses and liabilities, including, for example, any default by youundertheclientagreement.further,ourliabilitytoyou is expressly limited. You should read the Client Agreement carefully and obtain advice to make sure you understand thesematters. 14 Product Disclosure Statement Margin Foreign Exchange Core Liquidity Markets