Customer Agreement Risk Warning Notice

Transcription

1 Customer Agreement Risk Warning Notice

2 2 Financials:

3 TERMS & CONDITIONS BOOKLET CONTENTS CUSTOMER AGREEMENT Page 1. Introduction 3 2. Choice of Law and Jurisdiction 5 3. The services we will provide 5 4. Dealings between You and Us 5 5. Commission, Tax and Interest Charges 7 6. Providing a Quote 8 7. Opening a Bet Closing a Bet Betting Procedures General Online Trading Platform Financial Spread Betting Orders Limits on Wins and Losses Communications a) Financial and Sport Spread Betting b) Sports Fixed Odds Betting Deposits Trading Ledger Positive Balances a) Negative Balances b) Right to Withhold Payments Financial NTR, Waived NTR and Sports NTR Customer Accounts Margin Events of Default a) Client Money b) Transfer of Full Ownership of Money Indemnity and Liability Representations and Warranties Insider Dealing / Market Abuse Force Majeure Events Queries, Complaints and Disputes Miscellaneous In Running Bets Account Information Factual Information Cheques Incorrect Prices Manifest Error No Bets to be placed by Telephone Message Death of Client Amendment and Termination Adjustments and Takeovers Suspension and Insolvency Privacy Credit Information Telephone Betting Currency Roll-Overs on Financial Markets Shorting Classification Conflicts of Interest Glossary of Terms 47 RISK WARNING NOTICE: 50 Sports:

4 SPREADEX LIMITED CUSTOMER AGREEMENT Please read this Agreement carefully as it will govern your relationship with Spreadex Limited. Please note: Below is our new Customer Agreement. This document together with the Sports Spread Betting Rulebook (SSBR), Sports Fixed Odds Betting Rulebook (SFOBR), Financial Spread Betting Handbook (FSBH) and Risk Warning Notice (RWN) governs all transactions entered into or outstanding after 10th May Introduction (1) Spreadex Limited (''we'', ''us'', ''our'', ''ours and ''ourselves'' as appropriate), is a spread-betting bookmaker authorised, regulated and registered by the Financial Services Authority (hereafter known as the FSA), registration number The Financial Services Authority is based at 25 The North Colonnade, Canary Wharf, London E14 5HS and Spreadex Limited is also licensed and regulated by the Gambling Commission, and sports fixed odds bets are offered under licence number R The Gambling Commission is based at Victoria Square House, Victoria Square, Birmingham, B2 4BP. Terms and conditions specifically relating to fixed odds betting are included in this Customer Agreement and in the SFOBR. Our registered address is Spreadex Limited, The Ziggurat, Grosvenor Road, St Albans, Hertfordshire, AL1 3AW. Company registered number (2) This Agreement together with the SSBR, SFOBR, FSBH and RWN as amended from time to time will govern all bets between us and the customer (''you'', ''yours'' and ''yourself'' as appropriate). You should read this Agreement carefully together with the SSBR, SFOBR, FSBH and RWN as amended from time to time and any other documents that we have supplied or in the future do supply to you. Your attention is drawn, in particular, to those Rules which are highlighted in bold. (3) The subheadings contained in this Agreement are purely to assist with reference and shall have no bearing on the construction of the relevant Rule or Rules. While some passages have been highlighted in bold type, this is not to suggest that those that are not highlighted can be ignored or are any less important than those in bold. No person other than a Director of Spreadex Limited is authorised by us to make any representation on our behalf as to the meaning or effect of this Agreement. This Agreement applies to both sports and financial bets unless otherwise stated. (4) It is important to note that, in placing a Spread Bet with us, you are entering into a contract which is legally enforceable by virtue of section 412 (or any other superseding section) of the Financial Services and Markets Act 2000 (the ''Act''). When placing a fixed odds bet, you are entering into a contract which is legally enforceable by virtue of section 335 (or any other superseding section) of the Gambling Act 2005 (or any superseding Act). (5) In this Agreement certain words and expressions have the meanings set out in Rule 49 Glossary of Terms. (6) This Agreement will come into effect on the date we open your account, and, for any new versions 4 Financials:

5 thereafter, on the date we notify you. Any such new version will supersede any previous agreement between us on the same subject matter and govern any bet entered into or outstanding at the date the new version comes into effect. This Agreement is supplied to you in English and we will communicate with you in English for the duration of this Agreement. 2. Choice of Law and Jurisdiction (1) This Agreement and each bet entered into between us and you is in all respects governed by English law and the courts of England and Wales will have non-exclusive jurisdiction to settle any disputes that may arise in relation thereto. Nothing in this Rule 2 will prevent us from bringing proceedings against you in any other jurisdiction. (2) If you are situated outside England and Wales, process by which proceedings in England are begun may be served on you by being delivered to the address provided by you when you opened your account or to any new address subsequently notified to us. Nothing in this Rule affects our right to serve process in another manner permitted by law, for example by The services we will provide (1) This Agreement sets out the basis on which we will enter into bets with you and governs the operation of your account and each bet entered into or outstanding between you and us on or after this Agreement comes into effect. (2) A full explanation of the risks associated with our services is set out in the RWN, which follows this Agreement, and you should ensure you fully understand all the risks before entering into this Agreement with us. (3) You acknowledge that, regardless of whether or not you deal with us on credit, neither any limit set on your account nor any amount of deposit or margin you have paid puts any limit on your potential losses in respect of a bet. Your financial liability to us may exceed the level of the credit or other limit on your account. We refer you to the relevant sections of the RWN. 4. Dealings between You and Us (1) We will act as principal (and bookmaker) and not as agent on your behalf. Unless we have otherwise agreed in writing, we will treat you as our client and you will be directly and personally responsible for performing the obligations under each bet opened by you, whether you are dealing with us directly or through an agent. If you act in connection with or on behalf of someone else, whether or not you identify that person to us, we will accept no obligation to them unless otherwise specifically agreed in writing. If you act on behalf of someone else, that person will be liable to us in the same manner as you in respect of the contracts that you open on that person s behalf, whether or not you disclose that person s identity to us. Save that we will not be able to make double recoveries in respect of any contract; such liability will be in addition to and will not in any way diminish or otherwise affect your own liability to us. (2) Dealings with you will be carried out by us on an execution-only basis. You agree that, unless otherwise provided in this Agreement, we are under no obligation: Sports:

6 (a) to satisfy ourselves as to the suitability of any bet for you; (b) to monitor or advise you on the status of any bet; (c) to make margin calls. (3) You will not be entitled to ask us to provide you with advice relating to a bet or make any statement of opinion to encourage you to enter into a particular bet. We may, at our absolute discretion, provide information: (a) in relation to any bet about which you have enquired, particularly regarding procedures and risks attaching to that bet and ways of minimising risk; and (b) by way of factual market information, however, we will be under no obligation to disclose such information to you and in the event of us supplying such information it will not constitute advice or a personal recommendation to you. If, notwithstanding the fact that dealings between you and us are on an execution-only basis, a person employed by us nevertheless makes a statement of opinion (whether in response to your request or otherwise) regarding any bet, you agree that it will not be reasonable for you to rely on such statement and that it will not constitute advice or recommendation. (4) You acknowledge that information given to you may result in gains or losses and agree that, in the absence of our fraud, wilful default or negligence, we will not be liable to you in any way for any loss that you may incur as a consequence of our having given or not given any information to you. You acknowledge and agree that if, in any given circumstance, we do not positively offer any information in relation to any bet that does not imply that we are advising you to take or not to take action in relation to that bet. (5) You acknowledge that where we give you information in relation to a bet we or some other person connected with us may have an exposure to, or interest, relationship or arrangement in, or that is material to, the bet concerned. When we give you information about a bet we could have matching or opposite bets or other similar interests on behalf of another client, or ourselves. (6) Notwithstanding Rules 4(3) to 4(5), you agree that you rely on your own judgement in opening, closing, or refraining from opening or closing a bet with us and that we will not, in the absence of fraud, wilful default or negligence, be liable for any losses (including, without limitation, indirect or consequential losses, or loss of opportunity or profits arising from any failure by you to make any anticipated profits), costs, expenses or damages suffered by you arising from any inaccuracy or mistake in any information, or unsuitability of any information, given to you including, without limitation, information relating to any of your bets with us. You acknowledge and agree that if, in any given circumstance, we do not positively offer any advice or recommend that you take any action in relation to any bet, that does not imply that we are advising you not to take such action (or any action at all) in relation to that bet. Subject to our right to void or close any bet in the specific circumstances set out in this Agreement, any bet opened by you following such inaccuracy or mistake will nonetheless remain valid and binding in all respects on both you and us. (7) If you receive a copy of the SSBR, SFOBR and FSBH at the time you open your account, you acknowledge that such copy may have become outdated and that at any given time the current version of such document will be the version then displayed on our website(s) and that they may 6 Financials:

7 be updated from time to time. Although printed copies of the SFOBR will be issued to all clients, it is not our policy to issue a printed copy of the SSBR or FSBH to customers unless specifically requested. (8) Without detracting from any other limitation of our liability contained elsewhere in this Agreement, the maximum amount of our liability in respect of any losses that you may suffer in connection with any information given by us regarding a bet will be limited to four times the amount of spread payable in respect of that bet. (9) In respect of financial Spread Bets, we will take all reasonable steps to provide you with best execution in accordance with the FSA rules and our Order Execution Policy when we execute bets on your behalf. The arrangements we put in place to give you best execution are detailed in our Order Execution Policy. Unless you notify us to the contrary, you will be deemed to consent to our Order Execution Policy when this Agreement comes into effect. If you do not consent, we may be unable to provide our services to you. (10) All transactions between us will be governed by (i) the Application Form, (ii) SSBR, SFOBR and FSBH (iii) the RWN, (iv) this Agreement, (v) the Act, (vi) the FSA Rules, (vii) the spreads that we set from time to time and (viii) any further or separate arrangement that may be entered into between us. In the event of any conflict between this Agreement and any separate arrangement entered into between us, the separate arrangement shall prevail. It is your responsibility to ensure that you are aware of all the rules governing a particular bet before you open it. If you are unsure about any aspect of the rules, the spread or the Notional Trading Requirement (herein known as NTR) relevant to a bet that you are proposing to open you should seek clarification with us before you open the bet. (11) It is your responsibility to know that you are trading in the futures markets, and financial Spread Bets are always calculated from the underlying cash price. It is your responsibility to understand the difference between the cash and futures prices, and that any mention of cash prices is for reference purposes only. Please ask our financial traders if you are not sure. (12) You must exercise your own judgement in choosing to place a bet. You acknowledge that, in placing your bet, you are not relying on any statement of any of our employees relating to the subject matter of the bet. The terms of your bet may only be varied by oral or written notice given by one of our authorised representatives. We reserve the right to refuse part or all of a bet. 5. Commission, Tax and Interest Charges (1) We will not charge you commission or any fee for our services; save for Rule 5(4), 5(4.a), 5(4.b) and Rule 45 below. We will instead seek to make our profit on our spread, which applies when you open and, in most cases, when you close a Spread Bet. Additionally we may charge you for the following: market data (raw or derived), payment processing, postage and any other reasonable items that we may advise you of from time to time. Further depending on the nature of the Spread Bets you enter into with us, we may apply interest, dividend adjustments and short borrowing charges to your account (see Rule 46). (2) We are responsible for the payment of betting duty in relation to each bet that you open and, in relation to bets on horse racing, for payment of the Horse Race Betting Levy. You are not liable for betting duty or for the Horse Race Betting Levy and there are no charges or commissions relating to betting duty payable by you. However, we reserve the right to require you to pay, or Sports:

8 reimburse us for betting duty or the Horse Race Betting Levy in the event of a change in the basis of taxation. We will give you at least 28 days notice of any amendment. We also reserve the right to require you to pay, or reimburse us, for stamp duty; in the event of a change in the basis of stamp duty rates or law. (3) We understand that UK tax law currently exempts UK residents from paying Capital Gains Tax on winnings from betting. Spread Betting is not currently subject to Capital Gains tax or UK stamp duty. However, tax laws may well change in the future. We cannot advise you on tax and, if in any doubt, you should seek your own independent advice. You are responsible for paying all tax that may be payable in respect of your bets, other than betting duty. The tax treatment of bets may differ according to your personal circumstances and, further, tax legislation and the interpretation thereof can change. Tax treatment depends upon your individual circumstances and the tax jurisdiction that applies to you. Tax treatment in jurisdictions other than the UK may be different and we recommend you seek your own independent advice from a person authorised to give such advice in your jurisdiction. We are not providing any tax advice. (4) In the event that payment of a negative balance is not received by us in accordance with the requirements in Rule 18, we reserve the right to charge interest at 1% per month on the outstanding debt (calculated on a daily basis, and passed at the end of each month), which is equivalent to EAR (Effective Annual Rate) of 12.7%pa, and to recover from you on a full indemnity basis any and all costs and expenses (plus where applicable VAT at the prevailing rate) incurred by us (including but not limited to legal costs, (including costs arising from defending any counterclaim, or claim by a third party for an indemnity), our internal Management Time (see Glossary for rates), debt recovery, search fees, property valuation fees and bank charges relating to dishonoured cheques), either before or after the commencement of any action, as a result of any failure by you to settle your account as required. Please note that this right to charge interest at the rate of 1% per month extends to any judgment, from a court or any other body, obtained as part of the recovery of a negative balance on your account irrespective of any statutory rate which the courts may be entitled to charge. (a) At its absolute discretion we may also charge interest at 1% per month on your negative available balance (see Glossary for explanation of term). Please note this will include uncovered NTR on open positions and the deficit on any open positions. (b) Where you request that open positions are kept open despite your account having a deficit available balance, we may charge an arrangement fee for this service. You will be notified of any such fee in writing. We reserve the right to refuse any such specific request when there is a deficit on your available balance. 6. Providing a Quote Spread Betting (1) Upon your request and in accordance with Rules 6(2) and 6(3), we will quote a higher and lower figure for each Index, the difference between the two figures being our ''spread''. An indication of the Spread between the higher and the lower figures is, for most types of Index, shown in the Market Information sheets, available via our website. However, you acknowledge that we do not guarantee either that the spread quoted will be of the same size as the example given in the FSBH or Market Information sheets; or that there will be any limit on how large the spread may be. You 8 Financials:

9 acknowledge that when you close the spread may be larger or smaller than the spread quoted when the Spread Bet was opened. The figures we quote will be in respect of the level of our Index and not the level of an underlying market, and you acknowledge that the level of our Index may be different from the level of an underlying market. Where there is an underlying market and Spread Bets are opened at any time when the underlying market is closed, you acknowledge that the spread may be larger than for Spread Bets opened or closed when that market is open. (2) Subject to Rule 14, you may request a quote to open a Spread Bet or to close all or any part of a Spread Bet at any time during our normal hours of trading for the Index in respect of which you wish to open or close the Spread Bet. We will be under no obligation to but may, at our absolute discretion, provide a quote and accept and act on your offer to open or close a Spread Bet outside our normal hours of trading for the Index to which the Spread Bet relates. We may notify you of certain Indices in respect of which we will not quote, restrictions on the amount for which we will quote, or other conditions that may apply to our quote, but any such notification will not be binding on us. (3) If we choose to provide a quote, as set out in Rule 6(2), we will provide such quote either orally by telephone or electronically via the client pages on our betting website(s) or by such other means as we may from time to time notify to you. Our quoting of a higher and lower figure for each Index (whether by telephone, internet or otherwise) does not constitute an offer by us to open or close a Spread Bet at those levels. A Spread Bet will be initiated by you offering to open or close a Spread Bet with us on an Index at the level quoted by us. We may, acting reasonably, accept or reject your offer at any time until the Spread Bet has been executed or we have acknowledged that your offer has been withdrawn. A Spread Bet will be deemed to have been opened or closed only when your offer has been received and accepted by us. Quotes displayed by us on any television or text service or via public pages of our betting website(s) are for indication purposes only. (4) If, before your offer to open or close a Spread Bet is accepted, we become aware that one of the factors set out at Rule 6(5) has not been satisfied at the time you offer to open or close a Spread Bet, we reserve the right to reject your offer at the level quoted. If we have, nevertheless, already opened or closed a Spread Bet prior to becoming aware that a factor set out in Rule 6(5) has not been met we may, at our absolute discretion, either treat such a Spread Bet as void from the outset or close it at our then prevailing price. However, we may, at our absolute discretion, allow you to open or, as the case may be, close the Spread Bet in which case you will be bound by the opening or closure of such Spread Bet, notwithstanding that a factor in Rule 6(5) was not satisfied. (5) The factors referred to in Rule 6(4) include the following: (a) the quote must be obtained from us by telephone, via the client pages of our betting website(s), or by such other means as we may from time to time notify to you; (b) the quote must not be expressed as being given on an ''indicative only'' or similar basis; (c) if you obtain the quote by telephone, it must be given by a person who is a trader employed by us and your offer to open or close the Spread Bet must be given during the same telephone conversation in which you obtained the quote and the trader giving the quote must not have informed you before you make the offer to open or close the Spread Bet that the quote is no longer valid; (d) if you obtain the quote electronically via the client pages of our betting website(s) or by such Sports:

10 other means as we may from time to time notify to you, your offer to open or close the Spread Bet must be given while the quote is still valid; (e) the quote must not be manifestly erroneous; (f) a Force Majeure Event must not have occurred; (g) when you offer to open a Spread Bet, an Event of Default (See Rule 22) must not have occurred in respect of you; (h) the telephone, internet or other electronic conversation during which you offer to open or close the Spread Bet must not be terminated before we have received and accepted your offer; (i) subject to Rule 6(2), your offer must be given to us during our normal trading hours for the Index in respect of which you offer to open or close the Spread Bet. (6) If, upon accepting your offer, we open or close a Spread Bet with a stake that is larger than the normal market size for the Index in respect of which the offer is made, the Spread Bet may be subject to special conditions and requirements agreed either at the time that you specify the size of Spread Bet that you wish to place, or subsequent to the placement of the Spread Bet. We reserve the right to refuse any offer to open or close a Spread Bet with a stake greater than the normal market size. Our quotation, whether for a Spread Bet with a stake up to or in excess of the normal market size, is not guaranteed to be within any specific percentage of any underlying market or related market quotation. We will inform you of the normal market size for any particular Index on request. Fixed Odds Betting (7) You will request us to provide the odds on any sports fixed odds event on which we are offering a market, either orally by telephone or electronically via the relevant pages on our betting website(s) or by such other means as we may from time to time notify to you. (8) Prices on all selections change regularly to reflect fluctuations in the market or changes in the events themselves, such as a goal being scored. In some cases, the price may change between the time you receive or see a quote on the betting slip and the time you actually place the fixed odds bet. If the current price is lower than the price on the betting slip then you will be asked to confirm whether you wish to place the fixed odds bet at the current price. 7. Opening a Bet Spread Betting (1) You will open a Spread Bet by ''buying'' (wagering that a specified Index will go up within a specified period) or ''selling'' (wagering that a specified Index will go down within a specified period). In this Agreement, a Spread Bet that is opened by ''buying'' is referred to as an up bet'' and a Spread Bet which is opened by selling'' is referred to as a ''down bet''. We may also, in our dealings with you, refer to (a) up Spread Bets as ''longs'', ''long positions'', ''buys'' and ''highs''; and (b) down Spread Bets as ''shorts'', ''short positions'', ''sells'' and ''lows''. (2) When you open an up Spread Bet, the opening level will be the higher figure quoted by us for the Index in respect of which the Spread Bet is made and when you open a down Spread Bet, the opening level will be the lower figure quoted by us for the Index in respect of which the Spread Bet is made Financials:

11 (3) A Spread Bet must always be made for a specified number of pounds ( ) or such other currency as we may agree per point of movement in an Index (the ''stake''), irrespective of the way in which the Index in question is quoted in any relevant underlying market. Upon accepting an offer to open a Spread Bet, we will allocate it with a Spread Bet Reference Number that will be notified to you upon our confirming the Spread Bet under Rule 13(8). Please also see Rule 10 for the confirmation process for Spread Bets placed on the online system. (4) Each Spread Bet opened by you will be binding on you, notwithstanding that by opening the Spread Bet you may have exceeded any credit or other limit applicable to you or in respect of your dealings with us. Fixed Odds Betting (5) Once you have elected to place a fixed odds bet, including Ante Post bets, the value of your stake will be deducted from your fixed odds ledger, and this sum must be available on your fixed odds ledger as there are no credit facilities on this ledger. (6) For bets placed by telephone, the bet is struck when it has been verbally confirmed by the Spreadex employee. 8. Closing a Bet Spread Betting (1) Subject to this Agreement and any requirement we may specify in relation to linked Spread Bets, you may close an open Spread Bet or any part of such open Spread Bet at any time prior to the Expiry Date for the Index in respect of which the Spread Bet is made by entering into a further Spread Bet in respect of the same Index and Expiry Date, but in the opposite direction. For the purposes of this Agreement references to closing a Spread Bet may be taken as meaning the crystallisation of winnings or losses in the manner set out in Rule 8. (2) Details of the Expiry Date for Indices are available via the Market Information tab on our website and may be obtained from our traders on request. It is your responsibility to make yourself aware of the Expiry Date for a particular Index before placing a Spread Bet. (3) You acknowledge and agree that, when you close or partially close a Spread Bet at any time prior to the Expiry Date by placing an opposite Spread Bet in the manner contemplated in Rule 7 we and you will each treat our respective liabilities in relation to the two concurrent Spread Bets as having been simultaneously discharged to the extent that the opening level of the second Spread Bet will be deemed to be the closing level of the first Spread Bet, notwithstanding that the result of each Spread Bet on the Expiry Date is then unknown, and the first Spread Bet will then be treated by you and by us as being payable in accordance with Rule 8(10). (4) If your Spread Bet has not already been closed by the Expiry Date for the Index in respect of which the Spread Bet is made, we will close your Spread Bet as soon as we have ascertained the closing level of the Spread Bet. The closing level of the Spread Bet will (subject to the value of any automatic stop figure, maximum make-up, etc.) be: (a) the applicable official quotation or value in the relevant underlying market (as indicated in the Information Tables on the financial pages of our website) or, where there is no such market, such other measure, factor or indicator as may be relevant; plus or, as the case may be, minus Sports:

12 (b) any spread which we apply when such a Spread Bet is closed. Details of the spread we apply when a particular Spread Bet is closed are available on request and you acknowledge that it is your responsibility to make yourself aware of any spread that we apply when you close a Spread Bet. The spread quoted will reflect prevailing market conditions. (c) irrespective of the above we may not be able to open or close a Spread Bet for the whole stake at the same price. It is therefore the case that our quote to open or close a Spread Bet or bets over normal market size may be worse, possibly significantly worse than the cash price in the market. You should bear this in mind when you open a large Spread Bet or if you accumulate a large position in a single market on your account. (d) prices may also change according to our own position, and for this reason may vary from other Spread Betting company prices. (e) we maintain numerous telephone lines which are sufficient for normal trading but it may be that there are rare occasions when you are unable to speak to us to open or close a Spread Bet because all of our lines are engaged. This may be because of a failure in our telecommunications or because some event relevant to the markets has prompted an unusually large volume of calls. If you lose money because you are unable to speak to us to open or close a Spread Bet we will not be liable for your losses. (5) We may accept instructions from you to automatically roll over a Spread Bet to the next Expiry Date for that Index, so that your Spread Bet does not automatically expire. See Rules 45 and 46 on roll over procedures. Alternatively, you may at any time request to roll a Spread Bet into the next Expiry Date for that Index. Any agreement as to roll over is entirely at our discretion. Where we do affect a roll over for any reason other than in accordance with Rule 8(6), the original Spread Bet will be closed on or after the Expiry Date and will then become due for settlement and a new Spread Bet will be opened at the levels then quoted by us. (6) We may at any time (a Relevant Time ); at our absolute discretion affect a roll over of all your open Spread Bets. When we effect a roll over under this Rule 8(6) each affected original Spread Bet will be closed at the Relevant Time and will become due for settlement in accordance with Rule 8(10) and a new Spread Bet will be opened in respect of each such original Spread Bet at the same levels at which such original Spread Bet was closed. (7) Where a Spread Bet on a share is of sufficient size that the stake is in excess of four times standard market size, or where any number of Spread Bets on shares together have a stake in excess of four times standard market size, then notwithstanding Rule 8(5), if such a Spread Bet has not been closed out by the Expiry Date we will automatically roll your position over to the next Expiry Date, unless, acting reasonably, we exercise our discretion to close the Spread Bet. (8) In the event that you open a Spread Bet: (a) that expires on a quarterly or monthly market; and (b) that is in relation to an underlying financial instrument that is a share; and (c) the underlying share becomes unborrowable so that we are unable to hedge against losses that we may incur in relation to that Spread Bet, we may amend the rules of your Spread Bet such that it no longer expires in line with the quarterly or monthly market, but rather expires on a daily basis. For the avoidance of doubt, a share may either be unborrowable from the outset or our brokers or agents may recall from us a share that we have already borrowed against Financials:

13 (9) Our additional rights to void and/ or close one or more of your Spread Bets in specific circumstances are set out in Rules 6(4), 9(1), 9(2), 14, 22, 25(3), 26, 27, 28(7) and 38. (10) Upon closing a Spread Bet: (a) you will pay us the difference between the opening level of the Spread Bet and the closing level of the Spread Bet multiplied by the stake if the Spread Bet is: (i) a down Spread Bet and the closing level of the Spread Bet is higher than the opening level of the Spread Bet; or (ii) an up Spread Bet and the closing level of the Spread Bet is lower than the opening level of the Spread Bet; and (b) we will pay you the difference between the opening level of the Spread Bet and the closing level of the Spread Bet multiplied by the stake if the Spread Bet is: (i) a down Spread Bet and the closing level of the Spread Bet is lower than the opening level of the Spread Bet; or (ii) an up Spread Bet and the closing level of the Spread Bet is higher than the opening level of the Spread Bet. Unless we agree otherwise, all sums payable by you pursuant to Rule 8(10)(a) are due and payable in accordance with Rule 18. Sums payable by us pursuant to Rule 8(10) (b) will be settled in accordance with Rule 17. (11) Each obligation of each party under Rule 8(10) is subject to the condition precedent that we have not exercised our entitlement under Rule 22(21) to close all of your open Spread Bets. Fixed Odds Betting (12) You may close a fixed odds bet at any time for certain events being traded in-running at the prevailing price; and a fixed odds bets will expire at the conclusion of the event on which you have placed your fixed odds bet. (13) In the event that you have won the fixed odds bet your fixed odds ledger will be credited with the appropriate sum depending upon the odds at the time your fixed odds bet was placed and your stake, however, in the event that you have lost the fixed odds bet there will be no further adjustments to your fixed odds ledger in connection with this particular fixed odds bet. 9. Betting Procedures General (1) Without prejudice to our right to rely and act on communications from your agent under Rule 13(4), we will not be under any duty to open or close any bet or accept and act in accordance with any instruction if we reasonably believe that such agent may be acting in excess of its authority. In the event that we have opened a bet before coming to such a belief we may, at our absolute discretion, either close such a bet at our then prevailing price or treat the bet as having been void from the outset. Nothing in this Rule 9(1) will be construed as placing us under a duty to enquire about the authority of an agent who purports to represent you. (2) We will not be under any duty to open or close any bet if we reasonably believe that to do so may not be practicable or would infringe any law, rule or regulation. In the event that we have opened a bet before coming to such a belief we may, at our absolute discretion, either close such a bet at our then prevailing price or treat the bet as having been void from the outset. Sports:

14 (3) Additional betting procedures are set out in the SSBR, SFOBR and FSBH and in any other documents provided by us to you from time to time. Together, these documents constitute our rules of business. In the event of a conflict Spreadex will specify which prevails. (4) In the event that a situation arises that is not covered under these Rules or the rules of the SSBR, SFOBR, FSBH and RWN we will resolve the matter on the basis of good faith and fairness and, where appropriate, by taking such action as is consistent with market practice. (5) Where you offer to place or close a bet at a stake that is larger than the standard market size, rather than accepting your offer as a whole, we reserve the right to accept your offer as a series of smaller bets, each bet having a different (offer/ bid) price. We also reserve the right to aggregate your Spread Bet with Spread Bets of our other clients, if to do so is in the interests of our clients as a whole. This Rule also applies to our execution of an order on your behalf in accordance with Rule 11 and Rule 12. Where we rely on these Rules, the aggregate opening or closing level for your Spread Bets may differ from your specified offer level or from the price that would have been attained if your order had been executed as a single Spread Bet or not aggregated with Spread Bets of our other clients. (6) No person under the age of 18 is allowed to bet with us. 10. Online Trading Platform (1) You may conduct your trading via our online trading platform at (2) In order to activate your account for the purposes of online trading you need to create your own online specific password and security question and answer. You are strongly recommended to use a security question that is unique to you and is not common knowledge amongst your friends and family. We reserve the right to refuse to accept a password and/ or security question and answer as we see fit. (3) Your password must be declared, together with your account number, when you wish to access your account. You will be deemed to have authorised all trading under your account number. You must apply to change your password immediately you have reason to believe that anyone may be able to use your account without your authority, by telephoning any of our contact telephone numbers. (4) Bets may only be opened and closed and orders placed, moved or removed during our online trading hours. Our online trading hours vary according to the market being traded and are subject to change at short notice. (5) You may not be able to open and close bets and/or place, move or remove orders during our online trading hours if we suspend trading in all or any one of our markets in the circumstances provided for under Rule 27 below (Force Majeure). (6) (a) Sports Spread Betting - When you access your account online, you will be able to display a series of markets, against each of which will be an input box in the column marked 'stake' and two colour coded buttons marked 'SELL' (red) and 'BUY' (blue). You should input into the box the sum that you propose to bet per denominator on the chosen market and click on 'SELL' or 'BUY'. After you do this you will be quoted a 'buy' or 'sell' price for that market, together with a timer for the expiry of the trade request ticket. In order to place a bet you should click the 'SUBMIT REQUEST' button before the time expires. This trading instruction will in law 14 Financials:

15 constitute an offer by you to buy or sell at the price quoted (at the time 'SUBMIT REQUEST' was clicked) and for the stake input. You will then be asked to wait for confirmation. This is while we process your offer. If we accept your trade request we will send you a message that states 'your trade is confirmed' and a confirmation id. This is your 'trade confirmation id'. Until you receive confirmation that the trade has been accepted the bet has not been placed. You must wait for this message to appear after placing a bet and should you not receive this within one minute you must notify us immediately. If you do not receive our confirmation and you do not notify us as required, you will be deemed to have agreed only the transactions recorded by us. Similarly, if you dispute the contents of any confirmation sent by us to you, you must notify us immediately upon receipt by telephone; if you do not, the transactions recorded by us will be deemed to be agreed by you. (b) Financial Spread Betting - When you access your account online, you will be able, to gain access to a variety of markets, against each of those which are trade-able online will be a button marked 'TRADE'. Clicking on TRADE will produce a request ticket, containing a constantly updating 'buy' and 'sell' price for that market. Having supplied all of the appropriate details (Buy/Sell, Stake, and any Stop or Limit order parameters required), to place a bet you click the 'SUBMIT REQUEST' button. This trading instruction will in law constitute an offer by you to buy or sell at the price quoted (at the time 'SUBMIT REQUEST' was clicked) and for the stake and other details input. You will then be asked to wait for confirmation. This is while we process your offer. If we accept your trade request we will send you a message that states 'your trade is confirmed' and a confirmation id. This is your 'trade confirmation id'. Until you receive confirmation that the trade has been accepted the bet has not been placed. You must wait for this message to appear after placing a bet and should you not receive this within one minute you must notify us immediately. If you do not receive our confirmation and you do not notify us as required, you will be deemed to have agreed only the transactions recorded by us. Similarly, if you dispute the contents of any confirmation sent by us to you, you must notify us immediately upon receipt by telephone; if you do not, the transactions recorded by us will be deemed to be agreed by you. (c) Sports Fixed Odd Betting When you access your fixed odds ledger online, you will be able to gain access to a number of markets. Select the sport and event on which you wish to bet, once you have chosen your selection complete the on screen betting slip with details of your bet type and stake. You will know that your bet has been processed when your betting slip is replaced with a Fixed Odds Bet Receipt, which may be printed prior to closure or simply closed. Should you have any concerns that your bet has not been processed correctly review your online betting activity in the my account section of the website. Internet bets are struck when a bet id or receipt exists in our back end systems or database. (d) Financials Stop or Limit order placing, removal or amendment - When you access your account online, you will be able to, place, remove or amend a Stop or Limit order, (from either the My Positions or Financial Orders pages). Against each trade (where Stops or Limits are permitted) or each existing order will be an Add/Amend icon button. Clicking on the Add/Amend icon will produce a request ticket. Having supplied all of the appropriate details, to place, remove or amend the order click on the 'REQUEST STOP/LIMIT button. This will constitute an instruction (or removal of) to us to perform as described in Rule 11 below. You will then be asked to wait for confirmation. This is while we process your request. If we accept your order request we will send you a message that states 'Stop/Limit Confirmation and a confirmation id. This is your 'order Sports:

16 confirmation id'. Until you receive confirmation that the request has been accepted the order has not been placed. You must wait for this message to appear after placing an order and should you not receive this within one minute you must notify us immediately. If you do not receive our confirmation and you do not notify us as required, you will be deemed to have agreed only the orders recorded by us. Similarly, if you dispute the contents of any confirmation sent by us to you, you must notify us immediately upon receipt by telephone; if you do not, the orders recorded by us will be deemed to be agreed by you. (e) Financials Order to Open order placing, removal or amendment - When you access your account online, you will be able to place (from a market row on the pricing page as per trade above) or remove or amend (from the Financial Orders page under the My Account menu), an Order to Open order. Against each market (where Orders to Open are permitted) will be an ORDER icon button (to place an Order to Open ) and against each existing order will be an Add/Amend icon button. Clicking on the ORDER or Add/Amend icon will produce a request ticket. Having supplied all of the appropriate details, to place, remove or amend the order click on the 'REQUEST ORDER button. This will constitute an instruction (or removal of) to us to perform as described in Rule 11 below. You will then be asked to wait for confirmation. This is while we process your request. If we accept your order request we will send you a message that states 'Order Confirmation and a confirmation id. This is your 'order confirmation id'. Until you receive confirmation that the request has been accepted the order has not been placed. You must wait for this message to appear after placing an order and should you not receive this within one minute you must notify us immediately. If you do not receive our confirmation and you do not notify us as required, you will be deemed to have agreed only the orders recorded by us. Similarly, if you dispute the contents of any confirmation sent by us to you, you must notify us immediately upon receipt by telephone; if you do not, the orders recorded by us will be deemed to be agreed by you. (7) You acknowledge and agree that you will print off, or otherwise note, every trade order confirmation id or Fixed Odds Bet Receipt you receive. This is proof of the bets opened and closed on your account (and other trading instructions given) and will be important if there is a dispute. We also strongly recommend that you keep your own records of your online betting/ trading and orders including details of the times, dates and nature of your instructions, as these also may be important in the event of a dispute. (8) Online betting/ trading instructions must be given by you between the time when a bet/ trade request is activated and the time when it expires. We shall have no liability to you if the online connection is lost with the result that you are unable to open or close a bet and/ or place, move or remove an order at any given price. (9) We take reasonable precautions to ensure that data generated by us has been swept for viruses, but it is your responsibility to ensure that the onward transmission, opening or use of such data will not adversely affect your systems or data. Please ensure that your computer has up to date virus detection software and please carry out such virus and other checks as you consider appropriate. No responsibility is accepted by us for losses that you may suffer as a result of the onward transmission of viruses from us to you. (10) We shall not be liable to you for any direct or indirect costs, claims, losses, damage, liabilities or expenses you may suffer or incur as a result of errors or failures of our website and/ or online trading platform which may include, but are not limited to: Financials:

17 (11) Unauthorised access to our online trading platform by a third party unless this has arisen by reason of our negligence. (12) You having difficulty or being unable to communicate with us through our online trading platform. This may result in you being unable to open or close bets and/ or place, move or remove orders at a time when you wanted to do so and may also mean that you will not receive messages that we have sent to you. (13) You receiving misleading or inaccurate information from our website and/ or online trading platform. (14) You receiving incorrect prices (See Rule 34) from our website and/ or online trading platform. (15) We reserve the right to reduce or remove altogether our online service at any given time. 11. Financial Spread Betting - Orders (1) Orders, Stops, Limits, Guaranteed Stop Losses Spreadex offers a variety of ways to manage the risk on your account. You should be aware that when you place any order you are betting with Spreadex as principal and betting on our price and not the price of the underlying market. (2) Types of Risk Control a) Order An order is an instruction to establish a new position or add to an existing trade (bet) b) Stop A stop is an instruction to close an existing trade at a less favourable price than the current Spreadex price. c) Limit A limit order is an instruction to close an existing trade at a more favourable price than the current Spreadex price. d) Guaranteed Stop Losses A guaranteed stop loss is an instruction to close an existing trade at a price that is guaranteed to be no worse than the price specified. A guaranteed stop loss may only be placed at the time you open a trade. A premium will be added to the opening price. All orders are good until either (a) cancelled by you or (b) the expiry or earlier closure of the bet. (3) Spreadex reserves the right to refuse any instruction or amendment if there is insufficient available credit or if the effect of the instruction would be to put the client on margin. This should be read in conjunction with Rules 6, 7 and 8. (4) Orders, stops and limits are non-guaranteed and are vulnerable to the markets gapping through. This is what happens when our quote moves against you beyond the price at which you have requested that the order be filled, without our having been able to fill the order at the level of the order. This may and frequently does happen when the underlying market moves quickly. It can also happen overnight. In all such cases we shall fill your order as soon as is reasonably practicable. When the Spreadex price has gapped through the level of the order overnight this Sports:

18 may be as soon as is reasonably practicable after we open for business the next business day. You acknowledge and agree that because of the potential for rapid adverse market movement and / or gapping through overnight an order may be filled at a price worse, possibly much worse, than the level of the order. (5) Triggers all orders described above will be activated according to the Spreadex bid (if the trade is a sell) or Spreadex offer (if the trade is a buy). (6) Market Hours all orders can only be amended, added or activated within Spreadex trading hours for that underlying market. (7) Minimum Distances each type of order may only be placed within a minimum distance of the Spreadex quote at that time. (8) Editing stops, limits and guaranteed stops, only the price level may be edited subject to minimum distances and available credit requirements (see above and also Rules 6, 7 & 8). Orders to open may be edited with respect to the size of the trade and the price level, subject to minimum distances and available credit requirements (see above and also Rules 6, 7 & 8.) Orders, stops, limits and guaranteed stops are not available on all products. Spreadex reserves the right to refuse any instruction to place or amend an order. (9) You acknowledge and agree that you will remain liable for any losses on your account which may be realised as the result of the filling of an order, regardless of the available balance at the time the order was filled. 12. Limits on Wins and Losses Maximum Make-Ups Some sports bets are subject to a maximum limit ( maximum make-up ) on the closing level. Details of sports bets which are subject to a maximum make-up and the level of such maximum make-ups are available on request. You acknowledge that it is your responsibility to make yourself aware of any maximum make-up which is applicable to your bets. Maximum Pay Outs The maximum daily payouts on any bet, or bets, including Ante Post, are detailed on a sport specific basis in the SFOBR. The maximum payout limits apply to individual events, including multiple bets which compromise of various events being treated as one bet for the purposes of maximum pay outs. The limits refer to the total return on the bet, excluding the original stake. If a multiple bet has been placed which involves events with different maximum payout limits, the lowest limit will apply. All maximum payout limits apply to any one customer, or group of customers acting together, who have backed the same combination of selections, including where placed in a series of bets, at a range of prices, over a number of days using different Spreadex betting accounts and/or across different betting channels. Should we have reason to believe that a number of bets have been placed this way, the total payment of all those bets combined will be limited to one single maximum payout. We shall not be liable for any loss of profits, loss of anticipated savings, loss of goods, or any special, indirect, consequential or pure economic loss, costs, damages, charges or expenses Financials:

19 13. Communications (1) You acknowledge and agree that: (a) when completing the Application Form you must provide contact details, including a telephone number at which you can be easily contacted at various times of the day and days of the week. Any address, telephone number etc. contained in the contact details given by you may be regarded by us as the address, telephone number etc. at which you may be contacted at the time indicated. (b) it is your responsibility to notify us in writing of any time that may be spent away from the normal contact point, whether overseas or elsewhere in this country, and to provide alternative contact details. (c) it is your responsibility to make sure that you are able to fulfil margin calls according to the rules set out at Rule 21 below, at all times. If you are going on holiday, or will otherwise be away from your usual contact points, you should make arrangements before you go that will enable you to receive and meet any margin call within the time allowed. If you are in any doubt as to whether you will be able to receive and meet any margin call that may be made upon you, you should close the relevant bet or bets before you go away or not open them in the first place. You are reminded that you are the person responsible for managing your betting and that you should not bet at all if you cannot afford to do so. (2) An offer to open or close a bet (including a stop or limit order) must be made by you, or on your behalf: orally by telephone; via the client pages on our betting website(s); or in such other manner as we may specify from time to time. Written offers to open or close a bet, including offers sent by fax or or text message, will not be accepted. Any communication that is not an offer to open or close a bet must be made by you, or on your behalf: orally, by telephone or in person; in writing, by , post, fax; or in such other manner as we may specify from time to time. If sent to us by post or by fax, a communication must be sent to our head office, and if sent by it must be sent to an address currently designated by us for that particular purpose, for example a generic address (info@spreadex.com) as opposed to an employee s personal address (simon.smith@spreadex.com). Any such communication will only be deemed to have been received by us upon our actual receipt thereof. (3) If we receive an offer to place or close a bet other than in accordance with Rule 13(2), we may accept and act upon such offer at our absolute discretion and will not be responsible for any loss, damage or cost which you suffer or incur arising out of any error, delay or omission in acting upon such offer. (4) If at any time you are unable, for whatever reason, to communicate with us or you do not receive any communication sent by us under this Agreement we will not: (a) be responsible for any loss, damage or cost caused to you by any act, error, delay or omission resulting thereof from where such loss, damage or cost is a result of your inability to open a bet; and (b) except where your inability to instruct us or communicate with us results from our fraud, wilful default or negligence, be responsible for any other loss, damage or cost incurred by or caused to you by any act, error omission or delay resulting thereof from including without limitation, where such loss, damage or cost is a result of your inability to close a bet. Sports:

20 (5) You acknowledge and agree that any communication transmitted by you or on your behalf is made at your risk and you authorise us to rely and act on, and treat as fully authorised and binding upon you, any communication (whether or not in writing) that we reasonably believe to have been made or transmitted by you or on your behalf by any agent or intermediary whom we reasonably believe to have been duly authorised by you. You acknowledge that we will rely on your account number and/or password to identify you and agree that you will not disclose these details to any person who is not duly authorised by you. If you suspect that your account number and/ or password has been learnt or may be used by any other person then you must notify us immediately. (6) You agree that we may record our telephone conversations with you. Such records will be our sole property and you accept that they will constitute evidence of the communications made. (7) You agree that in the event of a dispute over any communication (including a dispute as to whether a bet was ever opened), we may close the actual or alleged bet in accordance with Rule 8, Rule 20 and Rule 21. (8a) We will confirm each Spread Bet that we open for you. (i) If you open or close a Spread Bet with us orally or via the online trading platform we will confirm the Spread Bet in writing, by or post. Any such confirmation will be ed or posted on or before the business day following the day upon which the Spread Bet is opened (or, as the case may be, closed). Unless you indicate on your Application Form that you wish to receive confirmations in relation to Spread Bets that are closed on the same day as that on which they are opened, our Compliance Officer will retain these confirmations. (ii) You will, in the absence of manifest error, be bound by and deemed to have acknowledged the content of any confirmation unless you have notified us to the contrary both orally, as soon as possible, and in writing, (i) within one hour of the Spread Bet or purported Spread Bet (in the case of on-screen confirmations) or (ii) within two business days of the day on which you are deemed to have received the confirmation in accordance with Rule 13(10) below. In the event that you think that you have opened or closed a Spread Bet but we have not sent you a confirmation in respect of that Spread Bet, any query in relation to the purported Spread Bet will not be entertained unless: (iii) you inform us within two business days of the day on which you ought to have received a confirmation for the purported Spread Bet; and you can provide accurate details of the time and date of the purported Spread Bet. In the event of any inconsistency between an on-screen confirmation and a subsequent written confirmation of the same Spread Bet we will determine the position reasonably on the basis of the available evidence. (iv) we will provide you with access to a statement of your account on a regular basis. (8b) If you wish to review your fixed odds betting activity on your fixed odds ledger, you will need to view both settled and unsettled transactions sections of the my account area of our website. Paper copy versions are available on request from Customer Services, for those who do not have access to the internet and have placed fixed odds bets by telephone. (9) We may communicate (including and not limited to, the giving of instructions and the updating of personal information) with each other in writing (including fax), by or by any other means of electronic communication or orally (including by telephone); and you 20 Financials: