Futures. Trading Agreement and Application Booklet. Macquarie Private Wealth A world of opportunities

Transcription

1 Futures Trading Agreement and Application Booklet Macquarie Private Wealth A world of opportunities Issued by Macquarie Equities Limited ABN Australian Financial Services Licence No Participant of the Australian Securities Exchange Group Date of issue: July 2010

2 Contents 01 Trading Futures with Macquarie 01 How to apply 03 Futures Trading Agreement 14 Anti-Money Laundering (AML)/Counter-Terrorism Financing (CTF) Act Application Form Checklist 21 Application Form Inserts IFSA/FPA AML/CTF Identification Forms (Australia and Foreign Companies, Trusts and Trustees) Throughout this booklet: Macquarie, us, our and we refers to Macquarie Equities Limited, ABN , AFSL (MEL). This advice has been prepared by MEL and is general advice and does not take into account of your objectives, financial situation or needs. Before acting on this general advice you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial decision. MEL is not an authorised deposit-taking institution for the purpose of the Banking Act (Cth)1959, and MEL s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL). MBL does not guarantee or provide assurance in respect of the obligations of MEL.

3 Trading Futures with Macquarie Macquarie offers a comprehensive service in futures trading, providing everything you need to trade global futures markets including superior execution, highly-rated research, quality and reputable clearing and personalised advice. How to apply 1. Read the relevant documents Prior to completing the Application Form, you should read the Macquarie Equities Limited (MEL) Financial Services Guide (FSG) enclosed with this booklet. You must also read the Macquarie Futures Trading Agreement (pages 3-13), which includes the futures trading terms and conditions. Please ensure you have read the Macquarie Futures PDS and are aware of the features of this financial product, including the risks, benefits and costs involved. 2. Decide your applicant type Applications may be made by an individual, sole trader, joint applicants, a company, a trustee of a trust or a superannuation fund, a partnership, an association, a registered co-operative or a government body. Please use the table on page 2 and the checklist in the Application Form as a guide on how to apply correctly. 3. Complete the Investment Profile The information you provide in the Investment Profile will ensure that we have an adequate understanding of your personal financial situation in order to provide you with appropriate financial advice. Your application cannot be processed without the required details. 4. Complete the Macquarie Futures Trading Application Form Please complete all relevant sections of the Application Form. Your application cannot be processed without the required details. Refer to the Application Form checklist for further instructions (page 17). 5. Complete the applicable IFSA/FPA* AML/CTF Identification Form Please ensure you also complete the applicable IFSA/ FPA AML/CTF Identification Form. This does not apply for Individual/Joint Applicants or Sole Traders. 6. Include Proof of Identification Documents (for each applicant) Please present to your financial adviser or the relevant checking officer relevant original or certified copies of identification documents as listed in the Application Form checklist. Your application cannot be processed without all the required identification documents. 7. Payment via funds transfer or BPAY Once your Application Form is complete, you will need to arrange a deposit for a minimum of $10,000 to MEL FSG Futures Clients Segregated Funds Account. The account details for a direct transfer are: Bank Account Name MEL FSG Futures Clients Segregated Funds Account Bank Name Macquarie Bank Limited BSB Account Number Please inform your adviser of any deposits made and reference any deposits with either your full name or account number. Keep these instructions on hand for future deposits. Alternatively, you will be assigned a BPAY reference number when your account is established. 8. Return the relevant documentation Detach the Macquarie Futures Application Form from this booklet and return it with the applicable IFSA/FPA* AML/ CTF Identification Form and your Investment Profile to your adviser, along with the necessary identification as described above. * IFSA is the Investment and Financial Services Association and FPA is the Financial Planning Association. Some of the more commonly used Identification Forms can be found as inserts in the back of this Application Booklet. 1

4 Use this table as a guide for deciding your applicant type (as described in step 2 of How to apply) If you are investing for: your account must be in the name of: Example: The account designation could be: an individual the full given and last name of the individual. Mrs Mary Elizabeth Brown None required joint applicants the full names of the individuals. Mrs Mary Elizabeth Brown and Mr James Anthony Brown None required a company the company name. ABC Pty Ltd None required an unincorporated body name of the unincorporated body. Hurstville Soccer Club None required a partnership the partners. Mrs Mary Elizabeth Brown and Mrs Jesse Johnson Brown Johnson & Assoc a trust the trustee(s), rather than the name of the trust 1. Mrs Mary Elizabeth Brown and Mr James Anthony Brown Family Fund A/C a corporate trust the corporate trustee, rather than the name of the trust. ABC Pty Ltd Staff Super Fund A/C a superannuation fund the trustee(s) of the superannuation fund 1. Mrs Mary Elizabeth Brown and Mr James Anthony Brown Brown Corp Super Fund a minor the trustees, rather than the name of the minor. Mrs Mary Elizabeth Brown and Mr James Anthony Brown Miss Louise Brown (name of the minor) a deceased estate 2 the executors of the estate. Mrs Mary Elizabeth Brown Estate of Agnes Johnson 1 Applications in the name of a trust, rather than the trustee, will not be accepted. 2 Two certified copies of Probate must accompany the completed application. 2

5 Macquarie Futures Trading Agreement This Agreement is made Between: 1. Macquarie Equities Limited (ABN ) of 1 Shelley, Sydney, New South Wales (Macquarie). 2. The Party named in the Futures Trading Application Form as the Client (the Client ). 3. The Party (if any) named in the Futures Trading Application Form as the Guarantor (the Guarantor ). Background: 1. Macquarie and the Client intend by this Agreement to set out the terms and conditions which will govern Contracts which they have already or may in the future enter into with each other relating to Futures. 2. This Agreement will take the place of any agreement that Macquarie and the Client have previously entered into with respect to dealings in Futures. It is agreed and acknowledged as follows: 1. Defi nitions and Interpretation 1.1 Definitions In this Agreement, unless a contrary intention appears: AML/CTF Laws means the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, rules and other subordinate instruments; Approved Securities means approved securities or collateral as defined in the Rules; ASXF means the ASX Futures Exchange Pty Limited; Authorised Representative means a person authorised under clause 22 to bind the Client under this Agreement; Block Trade means a Trade which is executed via a block trade facility, however described in the Rules of a Licensed Market; Business Day means a day on which trading banks in Sydney are open for business (excluding Saturday or Sunday); Clearing House means any clearing and/or settlement facility as that term is defined in section 768A of the Corporations Act from time to time operating in or authorised or appointed by any Licensed Market on which Macquarie may trade, or where the market is not a Licensed Market, any other clearing or settlement facility of that market; Clearing Limit means a limit either in monetary terms or in number of Trades or both for which Macquarie will accept clearing responsibility under this Agreement; Clearing Participant means a participant of a Clearing House; Close Out in relation to a Contract means the act of entering into arrangements to reverse the effect of that Contract including, without limitation, the entry into an opposite Contract; Contract means a contract between the Client and Macquarie in relation to applying for, acquiring, issuing, disposing or varying a Derivative and includes Contracts: (a) (b) (c) entered into before or after the date of this Agreement; entered into by Macquarie as agent or broker for the Client; and (in the case of (b),) Contracts entered into by Macquarie in its own name or in the name of the Client; Deposit has the same meaning as the Rules of the relevant Financial Market and where the Rules of the Financial Market use the term initial margin, it means initial margin as defined in those Rules; Derivative means an arrangement as defined in section 761D of the Corporations Act and, for the purpose of this Agreement, is limited to Derivatives which are futures contracts or futures option contracts as defined in the Corporations Act prior to the commencement of the Financial Services Reform Act; Derivatives Law means the Corporations Act and the Australian Securities and Investments Commission Act; EFP transaction means an exchange for physical transaction as defined in the Rules of the relevant Licensed Market; Exchange System means any computer system utilised by any Licensed Market operator for or in connection with trading, matching or price reporting; Event of Default means any of the events listed in clause 10 of this Agreement; Financial Market means a financial market as that term is defined in section 767A of the Corporations Act and includes a Licensed Market; Financial Services Guide means the disclosure document as required by Part 7.7 of the Corporations Act; GST means any tax on goods, services or goods and services, including any value-added tax as imposed by the GST Law; GST Law means any Act, order, ruling or regulation which imposes or purports to impose or otherwise deals with the administration or imposition of GST on a supply of goods and/or services in Australia and includes the A New Tax System (Goods and Services Tax) Act 1999 as affected by any other applicable legislation; 3

6 Licensed Market means a financial market that is authorised by an Australian market licence in accordance with the Corporations Act; Margin has the same meaning as the Rules of the relevant Licensed Market and where the Rules of the Licensed Market use the term other margin obligation it includes other margin obligation as defined in those Rules; Obligations means all obligations and liabilities of whatever kind, undertaken or incurred by, or devolving upon, the Client under or in respect of this Agreement or any deed, or other instrument collateral to it or given or entered into pursuant to this Agreement; Product Disclosure Statement means the disclosure document required to be given in accordance with Part 7.9 of the Corporations Act; Proper Law means the laws described in clause 19.4; Retail Client means a retail client as defined in s.761g of the Corporations Act; Rules means the operating rules as that term is defined in section 761A of the Derivatives Law, of a Licensed Market on which the relevant Contract or Trade is executed; SFE means SFE Corporation Limited and Sydney Futures Exchange Limited; Statement of Advice means the document required to be given in accordance to Part 7.7 of the Corporations Act; Taxable Supply is a supply on which GST is imposed pursuant to the GST Law; Trade means a Contract bought or sold by Macquarie (or, where Macquarie is acting only as clearing broker, by another participant) on behalf of the Client on or in accordance with the Rules of a Financial Market; Trust means the Trust (if any) described in the Futures Trading Application; and Trust Deed means the Trust Deed (if any) described in the Futures Trading Application (as amended from time to time) establishing the Trust. 1.2 Interpretation In this Agreement unless the context indicates a contrary intention: (a) a reference to this Agreement or to any deed, agreement, document or instrument Includes respectively this Agreement or that deed,. agreement, document or instrument as amended novated, supplemented, varied or replaced from time to time; (b) a reference to any statute, rule or other law, or to any sections or provisions thereof includes any statutory modification or re-enactment or any statutory provision substituted therefore and all ordinances, by-laws, regulations and other statutory documents issued thereunder; (c) the word person includes a firm, a body corporate, an unincorporated association and statutory authority; (d) a reference to any party includes a reference to that party s executors, administrators, successors, substitutes and permitted assigns and any person taking by way of novation; (e) a reference to any thing (including, without limitation, any amount) is a reference to the whole or any part of it and a reference to a group of persons is a reference to any one or more of them; (f) where any word or phrase is given a defined meaning, any other part of speech or other grammatical form in respect of the word or phrase has a corresponding meaning; (g) a reference to a clause or a Schedule is, unless the context otherwise indicates, is a reference to a clause or a schedule in this Agreement, (h) (i) (j) (k) (l) except where expressly defined in this Agreement or where a contrary intention appears, all terms in this Agreement shall bear the meaning given to them in the Rules or the Derivatives Law and in the event of any inconsistency between the meaning in the Derivatives Law and in the Rules, the meaning in the Derivatives Law shall prevail; except where specified otherwise, all Derivatives Law section and regulations references are to the Corporations Act sections and regulations; in this Agreement, the singular includes the plural and vice versa; headings are used in this Agreement for convenience of reference only and will not affect the construction of this Agreement; where a party to this Agreement is more than one person they will be jointly and severally liable under the terms of this Agreement. 2. Authority to Execute Agreement 2.1 Each of the Client and the Guarantor represents and warrants to Macquarie that: (a) where the Client or the Guarantor is a body corporate, the Client or the Guarantor (as the case may be) has been and is duly formed under the laws of the place of its formation, (in the case of the Client) has power and authority, and where the Client or Guarantor is a partnership, each partner of the Client has power and authority, to deal in Contracts and the persons executing this Agreement have full power and authority to execute this Agreement on behalf of the Client; (b) where the Client or Guarantor is a natural person, the Client or the Guarantor (as the case may be) has legal capacity to execute this Agreement; and (c) where the Client is trustee of a trust, the Client makes the additional representations and warranties contained in Schedule 1; 2.2 Each of the Client and the Guarantor further represents and warrants to Macquarie that: (a) there is no current or pending or threatened action or proceeding affecting it or any of its assets before a court, tribunal, government agency, commission or arbitrator which draws or purports to draw into question or is likely to affect the legality, validity or enforceability of this Agreement or any Contract or the ability of the Client or the Guarantor (respectively) to observe its obligations under and in respect of this Agreement; and (b) no Event of Default or event which with the giving of notice, lapse of time or fulfilment of any conditions would be likely to become an Event of Default has occurred or continues unremedied. 2.3 All representations and warranties made by the Client and or the Guarantor under this Agreement are taken to be made on the date of: (a) this Agreement; (b) each Trade; and (c) each Contract. 2.4 Where the Client is trustee of a Trust, the Client undertakes the additional obligations contained in Schedule 1. 4

7 3. Acknowledgements 3.1 The Client agrees that Macquarie will give Supplementary Financial Services Guides, Supplementary Product Disclosure Statements and any related disclosure statements to the Client by posting the relevant documentation on the Macquarie website. 3.2 The Client agrees and acknowledges that: (a) the Client and Macquarie are, in relation to any dealings between them concerning Contracts, subject to and bound by the Derivatives Law and the Rules and the procedures, customs, usages and practices of the Licensed Market and their related entities, as amended from time to time, on which Macquarie effects Trades on behalf of the Client. Nothing in this clause 3.2 will be construed to change the Proper Law of this Agreement; (b) the Client will take all reasonable steps to obtain and communicate to Macquarie all information and deliver or cause to be delivered to Macquarie all documents with respect to dealings in Contracts on a Licensed Market or a Financial Market which are requested by a person having a right to request that information or those documents. The Client authorises Macquarie to pass on all information, and deliver or cause to be delivered all documents to the requesting party; (c) dealing in Contracts may create an obligation to give or take delivery or make a cash adjustment in accordance with the terms of a Contract; (d) Macquarie will incur a personal obligation when dealing in Contracts on behalf of the Client; (e) any Trades conducted by participants of a Licensed Market or Financial Market are conducted as principals between those participants notwithstanding that in entering into those transactions they may be acting on the instructions of clients; (f) any benefit or right obtained by Macquarie upon registration of a Contract with a Clearing House by way of assumption of liability by that Clearing House under any Contract or any other legal result of that registration is personal to Macquarie and the benefit of that benefit or right or other legal result does not pass to the Client; (g) in relation to all Trades conducted on a Licensed Market or Financial Market by Macquarie and all Contracts registered by Macquarie with a Clearing House, the Client has no rights whether by way of subrogation or otherwise against any person or corporation other than Macquarie; (h) trading in Contracts incurs the risk of loss as well as the prospect of profit; (i) the Client must promptly advise Macquarie when there is a material change in its personal circumstances to ensure the personal advice provided by Macquarie remains applicable to the client s financial circumstances, needs and objectives; and (j) Macquarie is authorised, despite anything else to the contrary in this Agreement, to effect the matters contained in Schedule The Client agrees to notify Macquarie in writing within ten (10) Business Days of any change in the Client s personal details, including postal address, address or facsimile address that has previously been provided in connection with Futures dealing. Macquarie is not able to accept notification by or telephone as a physical signature is required for verification purposes. 4. Dealing by Macquarie 4.1 The Client appoints Macquarie as its agent for the purpose of dealing in Contracts both within and outside Australia in accordance with the terms of this Agreement. 4.2 Where the Client is a natural person, as a condition precedent to the performance by Macquarie of its obligations under this Agreement: (a) the Client will deposit with Macquarie the minimum amount that Macquarie requires; and (b) the Client will maintain a minimum deposit equal to the amount specified by Macquarie from time to time, in its account at all times. 4.3 Macquarie will deal, or will instruct third persons to deal, on behalf of the Client in Contracts on a Financial Market. 4.4 Where Macquarie instructs third persons to deal in Contracts on a Financial Market, Macquarie may share with those persons the commission or any other amounts relating to the Contracts, as Macquarie thinks fit and Macquarie will make such disclosure of the same as is required by the Proper Law. 5. Execution of Orders 5.1 Macquarie will use its best endeavours in the circumstances of each case to arrange the execution of the Client s directions in accordance with their tenor, but Macquarie will not be responsible for delays or errors in the transmission or execution of the Client s directions except through its own or it s employees, agents, officers or representatives negligence, fraud or dishonesty. The Client will be bound by the terms of each Contract as entered into or executed. 5.2 The Client may give instructions to (or in the case of Contracts or proposed Contracts between Macquarie and the Client as principals, make or accept offers to or from) Macquarie either orally, in writing or via any text messaging system recognised by Macquarie. 5.3 The Client acknowledges that in respect of Contracts transacted on a Licensed Market, instructions received from the Client and other clients and orders for Macquarie s own account will be executed by Macquarie in the sequence in which they are received and recorded, unless it would be fair and equitable to allocate Contracts obtained in respect of similar orders on the same day on a different basis, in which case Macquarie may, at its discretion, so allocate those Contracts. 6. Clearing of Trades 6.1 Subject to the terms of this Agreement and any Trades, Macquarie agrees to accept clearing responsibility in respect of each Trade, unless the Client has instructed the Trade to be given up to another Clearing Participant and that Clearing Participant has accepted clearing responsibility in respect of the Trade. 6.2 Macquarie will, where required, appoint third persons for the purpose of clearing Contracts entered into on behalf of the Client on Financial Markets which are not Licensed Markets. 6.3 Macquarie will not have any clearing responsibility in relation to a Trade, and will not be liable in any respect to the Client or to any other person if: (a) the relevant Financial Market or Clearing House does not permit the recording of the clearing of that Trade by Macquarie or accepts the clearing of that Trade subject to conditions; or (b) Macquarie does not trade, or after the date of this Agreement ceases to trade on the Financial Market to which that Trade relates or ceases to be a Clearing Participant of the relevant Clearing House. 5

8 6.4 Upon registration of a Contract with the Clearing House in the name of the clearing participant, the Client acknowledges that the clearing participant incurs obligations to the Clearing House as principal, even though the Contract may have been entered into on the Client s instruction. 6.5 Macquarie will furnish to the Client confirmation of all Trades cleared by Macquarie as soon as practicable after the close of trading on the day the Trade was cleared. 6.6 Macquarie is not required to act in accordance with the Client s instructions, where to do so would constitute a breach of the Rules, the Clearing House rules or the Corporations Act. 7. Principal Trading 7.1 The Client acknowledges and agrees that in relation to Contracts that are Derivatives that are able to be traded on a Financial Market, Macquarie will be trading or instructing others to trade on the Financial Market at all times as a principal, notwithstanding that in certain trading Macquarie will be implementing instructions given to it by the Client as the principal of Macquarie. The Client further acknowledges and agrees that it is aware that in the same trading Macquarie may either on its own account or on behalf of other clients take an opposite position to the Client in a Contract, and the Client acknowledges the right of Macquarie to do so, and consents to Macquarie so doing. 7.2 The Client is aware that: (a) Macquarie may trade for itself as principal on its own account; and (b) the directors, employees or related bodies corporate of Macquarie may trade on their own account from time to time. 8. Electronic recording of telephone conversations 8.1 The Client agrees and consents to the electronic recording by Macquarie (or by a Licensed Market or any other person on behalf of Macquarie) of the Client s telephone conversations with Macquarie or with any of its agents or employees or the agents or employees of any of its related bodies corporate, with or without an automatic tone warning device. 8.2 In the absence of manifest error, the Client and Macquarie agree in the event of a dispute that a tape recording of the matters to which the dispute relates (or any copy of that tape recording) will be prima facie evidence of its contents. 8.3 Notwithstanding any other arrangements relating to the use of personal information by Macquarie, where the tape recording collects personal information as that term is defined in the Privacy Act 1988 (Cth), the Client consents to the following use and disclosure of the personal information contained on the tapes by Macquarie: (i) use the tapes for its internal purposes including assisting it in resolving any dispute; and (ii) disclose the tapes and any information contained on the tapes to regulatory and self regulatory bodies, such as the SFE, to assist in the resolution of any dispute. 8.4 The Client will have the right to listen to any recording in the event of a dispute or anticipated dispute, provided the Client has paid to Macquarie its reasonable costs to comply with that request subject to availability. 9. Deposits and Margins The Client agrees and acknowledges that: (a) the Client must provide Macquarie with telephone access to the Client, 24 hours a day while holding an open position in a Contract; (b) Macquarie may at any time and from time to time make calls for payment of sums (or, in the alternative, call for lodgement of Approved Securities) by way of Deposit or Margin as Macquarie reasonably considers necessary to protect Macquarie from liability incurred or which may be incurred by dealing in Contracts on behalf of the Client; (c) should the Client fail to pay Deposit or meet a call (or lodge Approved Securities) then Macquarie may (without prejudice to any other rights or powers under this Agreement) and without creating an obligation to do so, Close Out, without notice, any or all of the Client s Contracts; (d) the time for payment of Deposit or Margin is of the essence and if no other time is stipulated by Macquarie prior to calling Deposit or Margin then the Client is required to comply within twenty-four (24) hours; (e) liability to pay Deposit accrues at the time the Trade is executed regardless of when a call is made; (f) liability to pay Margin accrues at the time the Margin comes into existence regardless of when a call is made; (g) the Client s liability in respect of calls for Margin and Deposit is not limited to the amount, if any, deposited with Macquarie; (h) the Client is responsible to pay in cash any deficit owing to Macquarie after closure and if the Client defaults in payment of that deficit Macquarie may realise any Approved Securities, including any property or other collateral lodged by way of Deposit or Margin, held by Macquarie and apply the proceeds against that deficiency; (i) in the event the Client defaults in payment of a deficit pursuant to paragraph (h), the Client must, at its own expense, promptly execute such documents and other instruments as Macquarie may reasonably require and (if Macquarie exercises its power of sale or disposal in relation to Approved Securities) do everything and sign everything reasonably requested by Macquarie which is in the Client s power to enable the sale or disposal of the Approved Securities and any registration required by Macquarie, including granting Macquarie a power of attorney to sign any relevant documents or instruments on the Client s behalf; (j) paragraphs (b), (c), (d) and (h) of this clause will not apply where the Client is a Clearing Participant of the Clearing House where any dealing takes place, and the Contract is registered in the name of the Client; (k) where the Client directs that Contracts be allocated to a Clearing Participant of the Clearing House other than Macquarie (other than where the Contracts are held with the Clearing Participant on account of Macquarie) and those Contracts were registered in the Clearing Participant s name with the Clearing House, paragraphs (b), (c), (d) and (h) of this clause will not apply; and (l) Macquarie will not call any deposit or margin for an amount less than the minimum Deposit or Margin required by the Licensed Market or Financial Market on which the relevant Trade was executed. 6

9 10. Client s Default 10.1 For the purposes of this Agreement, the occurrence of any of the following events will constitute the occurrence of an Event of Default: (a) if the Client or the Guarantor becomes bankrupt or enters into a composition or arrangement for the benefit of creditors or being a company goes into liquidation voluntarily or otherwise (except for the purpose of reconstruction) or enters into any compromise or arrangement with or assignment for the benefit of any of its creditors or members or if any liquidator, receiver, manager, receiver and manager, managing controller or official manager is appointed; (b) if the Client or the Guarantor makes any representation that is incorrect or misleading in any material way with the result that loss or damage is, or is likely to be, suffered by Macquarie; (c) if any guarantee of or security for the Client or the Guarantor s obligations is, without the consent of Macquarie, withdrawn or becomes defective or insufficient; (d) if the Client or the Guarantor fails to meet a call for Deposit or Margin or lodge Approved Securities or fails to meet any other obligation under this Agreement, including settlement of a Contract; (e) if the Client or the Guarantor, being a natural person, dies or becomes of unsound mind or whose person or estate is liable to be dealt with in any way under the law relating to mental health; (f) if the Client or the Guarantor imposes a moratorium on payments to creditors or ceases or threatens to cease carrying on business; (g) if, in the absence of the Client making alternative arrangements, the Client is not contactable by Macquarie for any period of twenty-four (24) hours in order for Macquarie to obtain instructions; (h) if, where the Client is a Clearing Participant of the Clearing House of the Licensed Market where the Trade takes place, and the Client requests or directs Macquarie to allocate the Trade to the Client, the Clearing House declines to accept allocation of the Trade to the Client; (i) if, where the Client requests or directs Macquarie to allocate the Trade to another Clearing Participant of the Clearing House, that other Clearing Participant refuses to accept the allocation of the Trade; or (j) if the conduct of the Client is such that it would cause a reasonably prudent Australian Financial Services Licensee authorised to advise and deal in Derivatives to be of the view that the Client would be unable to comply with all the Client s obligations under this Agreement, including (without limitation) strict compliance with any time limit Upon the occurrence of an Event of Default Macquarie may: (a) Close Out any or all of the Client s Contracts; (b) Close Out, exercise or abandon any option not yet exercised; (c) cover option positions by entering into further Contracts; (d) take any other action that a reasonably prudent Australian Financial Services Licensee authorised to advise and deal in Derivatives would be expected to take in the circumstances to protect the personal obligation incurred when dealing on behalf of the Client; (e) (f) (g) sell any or all of the Client s property lodged with Macquarie, including without limiting the generality of the foregoing, any Approved Securities and the Client agrees that Macquarie must liquidate the property as quickly as possible and is not obligated to liquidate the property at the best possible price; satisfy any obligation the Client may have to Macquarie by transferring from the Client s other account(s), if any, whether carried or managed by Macquarie, such funds as may be required for this purpose; and exercise any other power or right which Macquarie may have under this Agreement or in law or equity. 11. Commissions, Fees, Expenses The Client agrees: (a) to pay commission and/or management or any other fees at such a rate as is notified by Macquarie to the Client from time to time; (b) to pay all stamp duty, duties and taxes payable on this Agreement or in connection with dealings in Contracts entered into on behalf of the Client or both; (c) to pay all amounts payable as a result of making or taking delivery or making a cash adjustment in accordance with the terms of a Contract; (d) to pay all amounts reasonably incurred by Macquarie as a result of the Client s default under the terms of this Agreement, including (without limitation) all legal costs and expenses on a solicitor/client basis; (e) to pay, in respect of any unpaid amount required to be paid under this Agreement, including (without limitation) any amounts due as a result of the Client s Contract being Closed Out, interest at Macquarie standard rates or at a rate agreed in writing between Macquarie and the Client and that interest will accrue and be calculated from the date when the amount was due to the date of its final payment in full; (f) in the case where: (i) Macquarie makes any Taxable Supply; or (ii) any indemnity payment constitutes the consideration for any Taxable Supply (whether in whole or in part) by Macquarie, to pay to Macquarie an additional amount so as to ensure that, after allowing for the payment of any GST by Macquarie (and after any adjustment that Macquarie determines is appropriate for compliance with Part VB of the Trade Practices Act or any other relevant law) the net amount that Macquarie actually receives is to Macquarie the economic equivalent of the amount that Macquarie would have received but for the imposition of any GST; (g) in the case where any payment or other consideration made or provided by Macquarie to any person under or in connection with or for the purpose of this Agreement or any transaction referred to in or contemplated by it may be increased or added to by reference to any GST, to pay to Macquarie the amount that may be necessary to reimburse Macquarie in respect of that increase or addition; and (i) an additional amount equal to the amount of any penalty or interest as a result of late payment of any GST where that late payment arises because of any failure by the Client to comply with the provisions of this clause 11. 7

10 12. Exchange Rate Risk (a) (b) If the Client defaults under the terms of this Agreement, Macquarie may elect to convert any amount owed by the Client (including any interest) into Australian currency either at the date of the Client s default or on the date on which the Client pays the amount owed to Macquarie in full. Macquarie and the Client agree and acknowledge that: (i) The Client bears all exchange rate risks (ii) If the Client at any time requests Macquarie to convert any amount (whether payable by the Client or owing to the Client) into another currency, Macquarie may, but is not obliged to, arrange or enter into a foreign exchange transaction on behalf of the Client. Macquarie will execute the foreign exchange transactions on a best endeavours basis only and is not liable for the effects of any currency movements. (iii) If the Client defaults under the terms of this Agreement, Macquarie may elect to convert any amount owed by the Client (including any interest) into Australian currency either at the date of the Client s default or on the date on which the Client pays the amount owed to Macquarie in full. 13. Segregated Accounts 13.1 Macquarie and the Client agree and acknowledge that: (a) all of the money deposited with Macquarie by the Client, or received by Macquarie for, or on behalf of the Client, will be paid into a Macquarie clients segregated account, invested and withdrawn by Macquarie in accordance with the Derivatives Law and Rules; and (b) all of the property deposited with Macquarie by the Client, or received by Macquarie for, or on behalf of the Client, will be held in trust and will be dealt with in accordance with the Derivatives Law and Rules. Unless the Client otherwise instructs, the Client agrees that all property will be deposited with Macquarie in safe custody Macquarie and the Client agree and acknowledge that in relation to monies segregated in a Macquarie clients segregated account: (a) unless otherwise agreed in writing, Macquarie will be entitled to invest the monies in accordance with the Derivatives Law; (b) for the avoidance of doubt, the Client acknowledges that by signing this Agreement, the Client has agreed in writing to Macquarie investing the monies in accordance with the Derivatives Law; (c) unless otherwise agreed in writing, Macquarie will be entitled to any interest or other earnings on monies invested in accordance with 13.2(a); (d) the Client will be entitled to interest or other earnings on monies held or invested by Macquarie at rates as may be agreed in writing from time to time; (e) the interest or other earnings earned by Macquarie pursuant to paragraph (c) of this clause may be greater than the interest paid to the Client pursuant to paragraph (d) of this clause; (f) in the event that there is a default in the repayment of part or all of the principal arising from an investment made by Macquarie in accordance with the Derivatives Law, all losses are to the account of the Client and will not be met by Macquarie; (g) while the Clients money is segregated from Macquarie s money, it is co-mingled with that of other clients of Macquarie and in the event of a default in the Macquarie clients segregated account, Macquarie has the right, after initially applying its own funds, to apply the monies held in the Macquarie clients segregated account to meet the default, irrespective of whether the default was caused by the Client or not; and (h) any realisation of any investment of Macquarie clients segregated monies may be applied, at Macquarie s discretion to: (i) payment of interest to the Client pursuant to clause 13.2(d); (ii) payment of Macquarie of any interest or earnings pursuant to clause 13.2(c); and/or (iii) repayment into the Macquarie clients segregated account; provided that Macquarie will not be entitled to any interest or earnings if the realisation of the investment is less than the sum of the initial capital and any interest payable to the Client Macquarie and the Client agree and acknowledge that in relation to property held in trust by Macquarie that the property may also be used by Macquarie in accordance with the Derivatives Law and Rules. 14. Appointment of Attorney 14.1 In relation to Trades effected on the SFE, the Client irrevocably appoints the Managing Director of SFE Clearing as the Client s attorney to exercise the powers conferred upon that person under the relevant rules including, without limitation, to do all things necessary to transfer any open position held by Macquarie on the Client s behalf to another participant where Macquarie has been suspended or terminated as Participant of the Futures Exchange In relation to Trades effected on the ASXF, the Client irrevocably appoints severally the ASXF, the Clearing House, and every director, manager and assistance manager for the time being of the Clearing House, at the option of the Clearing House (as applicable) to do all acts and execute all documents on the Client s behalf for the purpose of exercising the powers conferred on the Clearing House for this purpose under the rules of the Clearing House. 15. Rights of Macquarie to impose limits and to refuse to deal 15.1 Macquarie may at any time: (a) refuse to deal on behalf of the Client in relation to any dealing in Contracts (other than Closing Out the Client s existing open positions); (b) impose a limit, either in monetary terms or in number of Trades or both, as to the number of Trades, or open positions held on behalf of the Client, or both; and/or (c) impose a Clearing Limit Where Macquarie refuses to deal on behalf of the Client pursuant to paragraph (a) of clause 15.1, Macquarie will inform the Client of that refusal at or before the time of the Client placing the order or as soon as possible thereafter. 8

11 15.3 Macquarie may decline to accept clearing responsibility for a Trade if: (a) (b) a Clearing Limit has been exceeded; or the acceptance of clearing responsibility for the Trade would result in the Client exceeding its Clearing Limit If Macquarie reasonably believes that an undesirable situation of the kind described in the Rules of the Licensed Market on which the Trade or Contract is executed has occurred or is likely to occur in relation to any Contract or underlying commodity, Macquarie will be entitled on giving the amount of notice that it considers reasonable to Close Out, sell or terminate any Contract referred to in that notice. 16. Indemnity 16.1 Without limiting any other indemnity that may be detailed in this Agreement, the Client is responsible for all expenses, liabilities, fines, claims, suits, actions and demands and any other amounts in relation to any Contract, or arising out of any default, whether by act or omission, by the Client under this Agreement or in relation to anything lawfully done by Macquarie, its officers, agents, employees or related bodies corporate in accordance with or incidental to this Agreement or by reason of or in connection with Macquarie, its officers, agents, employees or related bodies corporate complying with any Rule, direction, request or requirement of a Licensed Market, Financial Market or Clearing House or other regulatory authority, court or tribunal Should any act or omission by the Client, whether in respect of the giving or taking of delivery of an underlying commodity or otherwise, result in a fine or fines or other penalty which causes Macquarie loss or damage of any kind, the Client is liable to Macquarie in respect of that loss or damage The indemnities referred to in this clause 16 will not apply to the extent that any expenses, fines, liabilities, claims, suits, actions or demands incurred are the direct result of any fraud, negligence or dishonesty of Macquarie, its officers, agents, employees or related bodies corporate Without limiting clauses 16.1 and 16.2, if the Client fails to take or make delivery of any underlying commodity upon the expiration of any Contract, Macquarie may do so on behalf of the Client and the Client agrees to pay all costs and expenses of Macquarie doing so including (without limitation) the cost of acquisition, insurance and storage of any commodity Macquarie does not accept or bear any liability or responsibility in relation to currency exchange rate risks, including, without limitation, where a Client pays Margin or Deposits in a currency other than Australian currency Macquarie does not accept or bear any liability in respect of the operation of an Exchange System, whether for any breach of a provision of any relevant legislation, negligence, injury, death, loss of profits, loss of files, data or use, economic loss, loss of reputation or losses or damages incidental or consequential to the operation of any Exchange System except to the extent that it is caused by the negligence, fraud or dishonesty on the part of Macquarie, its employees or agents in relation to Macquarie s activities an Australian Financial Services Licences holder authorised to deal and advise in derivatives. 17. Termination 17.1 Without affecting any existing obligations or liabilities, either the Client or Macquarie may terminate this Agreement at any time by giving the other notice in writing to that effect, whereupon the provisions of clause 17.2 will apply Upon termination of this Agreement in accordance with clause 17.1, unless otherwise agreed in writing and as regards those Contracts of the Client that are held by Macquarie on behalf of the Client, Macquarie will Close Out, abandon or exercise all those Contracts. 18. Notice 18.1 Macquarie will provide the Client with confirmation of derivative transactions as required by the Derivatives Law and, unless objected to by the Client within 2 Business Days of being deemed to be received by the Client, the confirmation and any other statements given to the Client (including, where applicable, monthly statements and open position statements) will be prima facie evidence as to their contents A notice is deemed to be received by a party ( recipient ): (a) where it is delivered to the recipient personally or delivered to the recipient s address, at the time of delivery; (b) where it is posted to the recipient, on the day which is 2 Business Days after the day on which it is posted; (c) where it is sent electronically: (i) if the electronic message travels directly to the recipient, at the time when it enters the recipient s system; or (ii) in all other cases, at the time when the electronic message enters the first system outside the control of the sender; (d) where it is sent to the recipient by facsimile or telex: (i) in the case of a telex transmission - on receipt by the transmitting machine of the answerback code of the recipient; (ii) in the case of a facsimile transmission - on production of a transmission report by the transmitting machine indicating that the notice was sent in its entirety to the facsimile number of the recipient as last notified to the sender; (e) where it is sent or posted to the recipients password protected information accessed via Macquarie s internet futures site, at the time of posting; or (f) in any other case, when it is actually received by the recipient General 19.1 No failure, delay, relaxation or indulgence on the part of Macquarie in exercising any power or right conferred upon it under this Agreement or otherwise will operate as a waiver of that power or right, nor will any single or partial exercise of any power or right preclude any future exercise of that power or right If any term or part of this Agreement is invalid or not enforceable in accordance with its terms, all other terms or parts which are selfsustaining and capable of separate enforcement without regard to the invalid or unenforceable term or part will be and continue to be valid and enforceable in accordance with their terms. 9

12 19.3 Macquarie may vary these terms and conditions by giving you notice of the variation in the following manner: (a) where the variation would cause you detriment, by giving you at least 21 days written notice; (b) where the variation would not cause you detriment, by giving you at least 14 days notice, such notice to be given by: (i) posting notice of the changes on our website; or (ii) any other form of written notice; and (c) subject to (a), where the variation is required in order to: (i) meet regulatory requirements; (ii) reflect new industry guidance and codes of practice which in our reasonable opinion are likely to raise standards of consumer protection (whether mandatory or voluntary); or (iii) comply with any legal requirement, or any decision, code, recommendation, guidance or standard of any regulatory authority, court or tribunal; by giving you at least 14 days notice, such notice to be given by: (i) posting notice of the changes on our website; or (ii) any other form of written notice. Hard copy versions of the revised terms and conditions will be sent to you on request. If, following a variation to these terms and conditions, you no longer wish to maintain your account with Macquarie, you may terminate it in accordance with clause 17. We will not charge you any exit or termination fees but you will be required to satisfy any current obligations or liabilities prior to the termination becoming effective This Agreement will be governed by and construed in accordance with the laws of New South Wales and each party submits to the non-exclusive jurisdiction of the Courts of New South Wales The Client acknowledges to Macquarie that there are risks involved in dealing in Contracts and accepts that those risks are for the account of the Client Macquarie will not in any way be liable for any damages, loss or injury suffered or incurred (physical, pecuniary or otherwise), by the Client as a result of or arising out of, or in connection with: (a) any misinterpretation of any information provided by or on behalf of Macquarie relating to a transaction entered into or proposed to be entered into by Macquarie pursuant to this Agreement; (b) any forecast, opinion or statement of intention to the Client in relation to price movements or positions or to the likely profitability of any transaction or any Contract; (c) any delay in the transmission or execution of any order or instruction given or placed by the Client; (d) any delay in any communication due to breakdown or failure of transmission or communication facilities; (e) any action or failure by Macquarie to place and activate a stop loss order; (f) other causes beyond Macquarie s reasonable control The persons named in the Futures Trading Application as Authorised Representatives are each authorised to instruct Macquarie under this Agreement and (without limitation) to enter into Contracts with Macquarie on the Client s behalf. The Client may invest any other person with similar authority by giving notice in writing to Macquarie accompanied by the name of the person to be so authorised and executed by the Client The authority of a person to instruct Macquarie under this Agreement or to enter into a Contract may be withdrawn by the Client and notice in writing will be given by the Client to Macquarie of such withdrawal Nothing in this clause will prevent the Client being bound by the terms of any Contract entered into or other action taken by Macquarie pursuant to instructions given to Macquarie by a person not authorised under this clause if it would have been reasonable in the circumstances to infer the authority of the Client in relation to those instructions Macquarie will be entitled to assume: (a) the genuineness and authenticity of any instructions given or purportedly given by or on behalf of the Client; (b) if the Client has not given a notice of revocation of any person previously authorised, that the person giving instructions to Macquarie is authorised by the Client to do so; and (c) that any person claiming to be a person, details of whom have been given to Macquarie in accordance with clause 22.1, is, in fact, that person Macquarie will not be obliged to make any enquiry into any of the matters referred to in clause 22.4 and the Client instructs Macquarie to act upon any instructions reasonably believed by Macquarie to be genuine. 23. Revised Terms declared by Licensed Market Operator 23.1 If a Licensed Market operator declares: (a) amended minimum terms (Amended Terms) that apply to agreements between Macquarie and the Client; or (b) new or amended Rules that affect Macquarie and the Client (Amended Rules) then, to the extent of any inconsistency between the terms of this Agreement and the Amended Terms or Amended Rules, the Amended Terms or Amended Rules will override the terms of this Agreement and apply as if the Client and Macquarie had entered into an agreement comprising the Amended Terms or Amended Rules Macquarie will post a copy of the Amended Terms or summary of the Amended Rules on the Macquarie website as soon as practicable after the relevant Licensed Market operator declares them to be effective or to be effective from a certain date. 24. Guarantors 24.1 In consideration of Macquarie entering into this Agreement and agreeing to enter and/or clear Trades at the request of the Client, each Guarantor jointly and severally with each other Guarantor unconditionally and irrevocably guarantees the due performance, observance and fulfilment by the Client of its obligations contained or implied and on the part of the Client to be performed, observed and fulfilled under this Agreement (whether or not that performance, observance or fulfilment is or may for any reason be unenforceable either in whole or in part). 10

13 24.2 As a separate and additional liability (which is not intended be read down by clause 24.1) each Guarantor jointly and severally with each other Guarantor is responsible for all costs, losses and expenses which Macquarie may suffer or incur consequent upon or arising directly or indirectly out of any breach or non-observance by the Client of any of its obligations under this Agreement. This indemnity will continue in full force and effect despite that as a consequence of that breach or non-observance Macquarie has exercised any of its rights under this Agreement and despite that the Client may enter into liquidation either voluntarily or otherwise and despite that the guarantee as to performance observance and fulfilment given in clause 24.1 may for any reason whatsoever be unenforceable either in whole or in part The liability of a Guarantor under this Agreement will not be affected by the granting of time or other indulgence or concessions by Macquarie to any person or by the compounding, compromise, release, abandonment, waiver, variation, relinquishment or renewal of any of the rights of Macquarie against the Client or any other person or of the terms of any Contract or of any security or by any neglect or omission to enforce those rights, terms or security or by any other act, matter or thing which under the law relating to sureties would or might but for this provision release the Guarantor from any obligations under this guarantee and indemnity This guarantee and indemnity will continue and remain in full force and effect until the due performance, observance and fulfilment by the Client of all obligations on the part of the Client required to be performed, observed and fulfilled under this Agreement or any Contract provided however that if any payment made by the Client or any Guarantor is subsequently avoided under any law relating to insolvency or protection of creditors that payment will not discharge any liability of the Guarantor and Macquarie will be entitled as against the Guarantor to the rights to which it would have been entitled if that payment had not taken place As long as any of the obligations of the Client under this Agreement are unperformed, unobserved or unfulfilled (whether or not the Guarantor has become liable to perform, observe or fulfil those obligations of the Client) the Guarantor will not: (a) in reduction of its liability under this Agreement, raise any set-off or counterclaim available to the Client or any co-surety against Macquarie or claim any set-off or make any counterclaim against Macquarie; (b) make any claim or enforce any right against the Client or the Guarantor or (where a Client or the Guarantor dies) against his estate; (c) prove in competition with Macquarie if the Client or the Guarantor becomes insolvent, whether in respect of any amount paid by the Guarantor under this Agreement in respect of any other (including the proceeds of any security) applied by Macquarie in reduction of the Guarantor s liability under this Agreement or otherwise; or (d) be entitled to the benefit of any security or guarantee now or subsequently held by Macquarie for the performance, observance or fulfilment of any obligations of the Client If the Guarantor has any right of proof following the insolvency of the Client in respect of any matter not connected with its rights as Guarantor, it will exercise the right of proof on behalf of Macquarie and hold any dividend received on trust for Macquarie to the extent of the Guarantor s liability under this Agreement. The Guarantor will also hold on trust for Macquarie to the same extent any amount received or recovered from any co-surety by virtue of any right of contribution. 25. Counterparts This Agreement may be executed and delivered in counterparts (including by facsimile transmission), each of which will be deemed an original. The counterparts taken together constitute one and the same instrument. Schedule 1 Where the Client is the trustee of a Trust, the Client: (a) represents and warrants to Macquarie that: (i) the Trust was validly created, is in existence at the date of this Agreement and the Trust Deed has been duly stamped by the appropriate authorities; (ii) the Client was validly appointed as trustee of the Trust and is presently the sole trustee; (iii) the Trust is solely constituted by the Trust Deed; (iv) the Client: (A) has full, complete, valid and unfettered authority and power under the Trust Deed to enter into this Agreement; and (B) has the power to enter into and observe all the provisions in this Agreement; (b) undertakes to Macquarie that: (i) it will notify Macquarie immediately in writing if: (A) the Client ceases for any reason or at any time to be the sole trustee of the Trust; (B) the Trust is determined or for any other reason ceases to exist; or (C) the Manager ceases to be the manager of the Trust; and (ii) a distribution of any of the capital of the Trust will not be made which would result in there being insufficient assets of the Trust to meet the Client s liabilities under outstanding Contracts and this Agreement. Schedule 2 1. The Client agrees and acknowledges that: (a) Macquarie will, as soon as is reasonably practicable after a transaction occurs, provide confirmations electronically to the Client by means of the Macquarie facility where the Client can access the confirmation for themselves using their password as provided by Macquarie; (b) Macquarie will, where a transactions forms part of a series of transactions made to complete an order by the Client placed with Macquarie, give the Client in relation to that order or all orders, in lieu of a confirmation in respect of each such Trade, a single confirmation in respect of that series of Trades. 2. Where a single confirmation is provided in relation to clause 1(b), the confirmation will specify the average contract price of the Contracts acquired or disposed of in that series of Trades and, unless otherwise provided by the relevant Rules, Macquarie will, if requested to do so by the Client, give the Client a document which includes a statement of the contract price of each futures contract acquired or disposed of in each Trade in that series of Trades; 11

14 3. The Client agrees that Macquarie will execute Block Trades on behalf of the Client in accordance with the Rules and this Agreement and the Client acknowledges that: (i) the price quoted for Block Trades may or may not be the prevailing market rate; (ii) the price at which a Block Trade is executed will not be used to establish settlement prices; (iii) Block Trades effected under the Rules of the Licensed Market have no impact on data generated from Exchange Systems; and (iv) Block Trades will be separately reported to the relevant Licensed Market. 4. The Client agrees that Macquarie will execute prenegotiated trades for the Client in accordance with the Rules and this Agreement. 5. The Client agrees that Macquarie will execute EFP trades for the Client in accordance with the Rules and this Agreement and where Macquarie effects any EFP transactions on behalf of the Client, the Client will provide Macquarie with full details of the physical transactions including documentary evidence relating to the relevant EFP transactions to enable Macquarie to comply with the Rules. Annexure A Risk Disclosure Statement This statement is given to you to confirm your understanding of the key risks associated with trading in exchange traded derivative contracts. The key risks are also detailed in the Macquarie Product Disclosure Statement (PDS). The risk of loss in trading in derivatives can be substantial. You should therefore carefully consider whether that kind of trading is appropriate for you in the light of your financial circumstances, situation and needs. In deciding whether or not you will become involved in that kind of trading, you should be aware of the following matters: (a) You could sustain a total loss of initial margin funds that you deposit with Macquarie to establish or maintain a position on a Financial Market. (b) If the market moves against your position, you may be required, at short notice, to deposit with Macquarie additional margin funds in order to maintain your position. Those additional funds may be substantial. If you fail to provide those additional funds within the required time, your position may be liquidated at a loss and in that event you will be liable for any shortfall in your account resulting from that failure. (c) Under certain conditions, it could become difficult or impossible for you to liquidate a position (this can, for example, happen when there is a significant change in prices over a short period). (d) The placing of contingent orders (such as a stop-loss order) may not always limit your losses to the amounts that you may want. Market conditions may make it impossible to execute such orders. (e) A spread position is not necessarily less risky than a simple long or short position. (f) The high degree of leverage that is obtainable in derivatives trading, because small margin requirements can work against you as well as for you. The use of leverage can lead to large losses as well as large gains. (g) If you propose to trade in old law futures options, being an option on a futures contract, the maximum loss in buying an option is the amount of the premium, but the risks in selling an option are the same as in other futures trading, that is potentially unlimited losses greater than the amount you deposited with Macquarie. (h) (i) You may experience losses due to systems failures at either or both Macquarie or the exchange on which the contracts are executed. You should thoroughly read and understand the Futures Trading Agreement, the FSG and the PDS before entering into any derivative transaction with Macquarie. This statement does not disclose all of the risks and other significant aspects involved in trading derivative products on Financial Markets. You should therefore study derivatives trading carefully before becoming involved in it. NYMEX Risk Disclosure Statement Risk Disclosure Statement There are significant risks in trading through a system which is serviced by means of computer and telecommunications systems. The NYMEX ACCESS system cannot be operated in all circumstances without error including, without limitation, errors in computer programs and telecommunications systems. These errors may result in, among other things, a delay in telecommunications services to the user, interrupted service, faults, inaccuracies in the provision of the service or inaccuracies in information displayed. Risk Disclosure Statement (Required under the Regulations of the Commodity Exchange Act, USA) The risk of loss in trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points: (1) You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account. (2) Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit ( limit move ). (3) Placing contingent orders, such as stop-loss or stoplimit orders, will not necessarily limit your losses to the intended amounts, since the market conditions on the exchange where the order is placed may make it impossible to execute such orders. (4) All futures positions involve risk, and a spread position may not be less risky than an outright long or short position. (5) The high degree of leverage (gearing) that is often obtainable in futures trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains. (6) You should consult your broker concerning the nature of the protections available to safeguard funds or property deposited for your account. 12

15 All of the points noted above apply to all futures trading whether foreign or domestic. In addition, if you are contemplating trading foreign futures or options contracts, you should be aware of the following additional risks: (7) Foreign futures transactions involve executing and clearing trades on a foreign exchange. This is the case even if the foreign exchange is formally linked to a domestic exchange, whereby a trade executed on one exchange liquidates or establishes a position on the other exchange. No domestic organisation regulates the activities of a foreign exchange, including the execution, delivery, and clearing of transactions on such an exchange, and domestic regulator has the power to compel enforcement of the rules of the foreign exchange or the laws of the foreign country. Moreover, such laws or regulations will vary depending on the foreign country in which the transaction occurs. For these reasons, customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including the right to use domestic alterative dispute resolution procedures. In particular, funds received from customers to margin foreign futures transactions on domestic exchanges. Before you trade, you should familiarise yourself with the foreign rules which will apply to your particular transaction. (8) Finally, you should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting there from, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign contract is liquidated or the foreign option contract is liquidated or exercised. The brief statement cannot, of course, disclose all the risks and other aspects of the commodity markets. Additional Risk Disclosure Statement for U.S. Clients Dealing on Sydney Futures Exchange Foreign Futures and Foreign Options The risk of loss in trading foreign futures and foreign options can be substantial. Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade foreign futures or foreign options, you should be aware of the following: (1) Participation in foreign futures and foreign options transactions involves the execution and clearing of trades on or subject to the rules of a foreign board of trade. (2) Neither the Commodity Futures Trading Commission, the National Futures Association nor any domestic exchange regulates activities of any foreign boards of trade, including the execution, delivery and clearing of transactions, or has the power to compel enforcement of the rules of a foreign board of trade or any applicable foreign laws. Generally, the foreign transaction will be governed by applicable foreign law. This is true even if the exchange is formally linked to a domestic market so that a position taken on the market may be liquidated by a transaction on another market. Moreover, such laws or regulations will vary depending on the foreign country in which the foreign future or foreign options transaction occurs. (3) For these reasons, customers who trade foreign futures or foreign options contracts may not be afforded certain of the protective measures provided by the Commodity Exchange Act, the Commission s regulations and the rules of the National Futures Association and any domestic exchange, including the right to use reparations proceedings before the Commission and arbitration proceedings provided by the National Futures Association or any domestic futures exchange. In particular, funds received form customers for foreign futures or foreign options transactions may not be provided the same protection as funds received in respect of transactions on United States futures exchanges. Therefore, you should obtain as much information as possible from your account executive concerning the foreign rules which will apply to your particular transactions. (4) You should also be aware that the price of any foreign futures or foreign options contract and, therefore, the potential profit and loss thereon, may be affected by any variance in the foreign exchange rate between the time your order is placed and the time it is liquidated, offset or exercised. Additional Disclosure Statement relating to Deferred Payment of Option Premiums Certain options contacts traded on boards of trade (exchanges) located outside the United States which are authorised by the CFTC for sale in the United States make provision for deferred payment of the option premium, are subject to initial and variation margin requirements and are marked to market. Consequently, the futures commission merchant ( FCM ) or a firm granted an exemption from the FCM registration requirement might not require the purchaser of such an option to put up the full premium at purchase. Although there is provision for deferred payment of premium the purchaser of an option is still subject to the risk of losing the entire purchase price of the option, that is, the option premium plus all transaction costs. Consequently, before purchasing an option, an individual should fully understand the obligation to any variation margin not exceeding the amount of premium in the accruing profit during the life of the option, he should be aware that in order to realise and retake any value from the option, it will be necessary either to offset the option position or for the option to be exercised, which may be achieved automatically if the terms of the option contract so provide. In the event of offset or exercise of the option position the full purchase price will be collected if it has not yet been paid. Your Privacy Because we will be providing you with financial advice, and to comply with the Corporations Act, you will be asked to provide Macquarie with some personal information. This information will enable us to make recommendations that are suitable to your investment needs and financial circumstances. Please ensure that you keep your Macquarie adviser up to date regarding any changes to this information that may be relevant to future advice. If you choose to withhold certain information, bear in mind that the advice or strategy you receive many not be entirely appropriate to your situation. Macquarie will maintain a record of your personal profile which include details of your investment objectives, financial situation and needs. We will also maintain records of any recommendations made and services provided to you. 13

16 By completing the application form attached, as well as any personal profile, you agree to Macquarie collecting, holding and using personal information about you to provide products and services to you, to carry out administration and in order for Macquarie to comply with its legal obligations including but not limited to its obligations under AML/CTF Laws. Administration includes monitoring, auditing and evaluating, modelling data, dealing with complaints, answering queries and providing services in relation to this product. You also agree to our use of information (including personal information) we hold relating to you, including information which you provide to us in the application form and in related administrative services, to: streamline future applications you make for Macquarie Group products or services; provide you and us with an integrated view of and access to the products and services you have with the Macquarie Group; and enable us to deliver a more comprehensive service in relation to your Macquarie Group products and services and you agree to our disclosing that information to other members of the Macquarie Group for those same uses. This information may also be used by other companies in the Macquarie Group so that products and services which we consider may be of interest to you can be marketed to you, unless you tell us not to. If you do not provide the information requested in the application form we may not be able to process or accept your application. By completing this form you agree that we may provide access to this information to our agents, contractors or third parties who provide services in connection with our product. Under the Privacy Act 1988, you may request access to your personal information held by the Macquarie Group of companies. To make such a request, or for any other reason relating to the privacy of your personal information simply contact Macquarie Client Services on Provision of Tax File Number Our collection of your tax file number (TFN) is authorised, and its use and disclosure strictly regulated by, tax laws and the Privacy Act. You do not have to provide us with your TFN, and declining to do so is not an offence. If you do provide us with your TFN, we are required to disclose your TFN to any investment body where you invest in their products/services through us. We are required to do this until you revoke your quotation of your TFN. However, if you do not provide us with your TFN (including both TFNs for joint accounts) or claim an exemption, tax may be withheld by the investment bodies from your income paid to you at the highest marginal rate (plus Medicare levy) before it is paid to you. For more information about the use of TFNs please phone your nearest Tax Office. Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (a) (b) (c) (d) (e) (f) If requested, you agree to provide additional information and assistance and comply with all reasonable requests to facilitate Macquaries compliance with AML/CTF Laws in Australia or an equivalent overseas jurisdiction. You represent and warrant that you are not aware and have no reason to suspect that: the money used to fund the investment is derived from or related to money laundering, terrorism financing or similar activities (Illegal Activities); and proceeds of investment made in connection with this product will fund illegal activities. Macquarie is subject to AML/CTF Laws. In making an application pursuant to these terms and conditions, you consent to us disclosing in connection with AML/CTF Laws any of your Personal Information (as defined in the Privacy Act 1988 (Cth)) we have. In certain circumstances we may be obliged to freeze or block an account where it is used in connection with Illegal Activities or suspected Illegal Activities. Freezing or blocking can arise as a result of the account monitoring that is required by AML/CTF Laws. If Macquarie freezes or blocks your account because it believes on a reasonable basis that it is required to do so in order to comply with AML/CTF Laws, we are not liable to you for any consequences or losses whatsoever and you agree to indemnify us if we are found liable to a third party in connection with the freezing or blocking of your account. Macquarie retains the right not to provide services/ issue products to any applicant that Macquarie decides, in its sole discretion, that it does not wish to supply. You agree that Macquarie is not liable for any loss incurred as a result of any action taken which either delays an account being opened or results in an application being declined, when these actions are necessary for Macquarie to comply with its obligations under AML/CTF Laws. 14

17 Anti-Money Laundering (AML)/Counter-Terrorism Financing (CTF) Act 2006 On 12 December 2006, the AML/CTF Act 2006 was passed. These new laws were introduced in Australia to meet higher international standards and to protect Australian business for being used for Money Laundering and Terrorism Financing Activity. To meet our regulatory obligations as a reporting entity offering designated services, we are required to collect and verify minimum Know Your Customer (KYC) information which will vary by investor type. In some instances we may be required to conduct enhanced due diligence before being able to proceed with your application. Guidance notes for certification and verification 1. What is a certified copy? A certified copy is a document that has been certified as a true and accurate copy of the original document by one of the following persons listed below. The authorised person should also print their name and position and if possible affix an official stamp. An officer with, or authorised representative of, a holder of an Australian Financial Services Licence (AFSL), having 2 or more continuous years of service with one or more licensees. Finance company officer with 2 or more continuous years of service with one or more finance companies (for the purposes of the Statutory Declaration Regulations 1993). An officer with 2 or more continuous years of service with one or more financial institutions (for the purposes of the Statutory Declaration Regulations 1993). A permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public. An agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public. A Justice of the Peace. A person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described). A judge of a court. A magistrate. A chief executive officer of a Commonwealth court. A registrar or deputy registrar of a court. An Australian police officer. An Australian consular officer or an Australian diplomatic officer (within the meaning of the Consular Fees Act 1955). A member of the Institute of Chartered Accountants in Australia, CPA Australia or the National Institute of Accountants with 2 or more years of continuous membership. A notary public (for the purposes of the Statutory Declaration Regulations 1993). 2. Offshore certification In the case of individuals and companies based offshore who cannot have documents certified by an Australian person as listed above, it is acceptable to accept certification completed by the international equivalent of the above listed person. However, where the applicant is based in a jurisdiction of extreme/ high risk, we will request additional information and identification to ensure we are reasonably satisfied that an applicant is who they claim to be. 3. Verification through an authorised Financial Adviser An authorised financial adviser is an adviser who has held an AFSL or has provided financial services as a representative on behalf of an AFSL holder, for 2 or more continuous years. If you are being identified by an authorised financial adviser, your adviser will need to Certify copies (or collect certified copies) of your proof of identification documents and arrange for verification of these documents. For individuals/joint applicants/sole traders and authorised signatories, the documents are listed in the verification section (Section 13) of this application form. For all other entity types, the documents are listed in the verification section of the relevant IFSA/FPA* AML/CTF Identification Forms. Send us the completed Futures Trading Application Form, and the relevant IFSA/FPA* Identification Form(s), and supporting proof of identification documents. * IFSA is the Investment and Financial Services Association and FPA is the Financial Planning Association. Some of the more commonly used Identification Forms can be found as inserts in the back of this Application Booklet. 15

18 Application Form checklist The table below summarises the sections of this application form and IFSA/FPA Identification Forms (available for downloading on that must be completed and any documentation required to support your application. Please select your applicant type and tick off the checkboxes when completed. Foreign documentation Where any documentation relied on as part of the procedure is in a language that is not English, it must be accompanied by an English translation prepared by an accredited translator. Applicant Type Sections to Complete Whose name must the account be in Who signs Documentation Required for ID verification Individual Applicant Section 1(a) of Application form Section 4 to 11 of Application form The individual The individual Provide original or certified copies of the documentation listed in Section 13 of this application form. If Attorney(s) If you are signing under power of attorney, please also attach a certified copy of the power of attorney. Joint Applicants Section 1(a) to 1(b) of Application form (as appropriate) Section 4 to 11 of Application form Each individual investor All investors Provide original or certified copies of the documentation listed in Section 13 of this application form. If Attorney(s) If you are signing under power of attorney, please also attach a certified copy of the power of attorney. Sole Trader Section 1(a) and 1(c) of Application form Section 4 to 11 of Application form The individual and the business name The sole trader Provide original or certified copies of the documentation listed in Section 13 of this application form. If sole trader also provide certified copy of registration of business name. Investing for a child under 18 (minor) Section 1(a) to 1(b) of Application form (as appropriate) Section 4 to 11 of Application form The parent or guardian (as trustees for the trust) The parent or guardian Provide original or certified copies of the documentation listed in Section 13 of this application form. If minor the parent or guardian also needs to provide a certified copy of the minor s birth certificate. Deceased Estate Section 1(a) to 1(b) of Application form (as appropriate) Section 4 to 11 of Application form The executors of the estate (as trustees for the trust) The executor Provide original or certified copies of the documentation listed in Section 13 of this application form. If deceased estate the executor also needs to provide a certified copy of the grant of probate or letters of administration. Reset this page 16

19 Applicant Type Sections to Complete Whose name must the account be in Who signs Documentation Required for ID verification Australian Companies AND Section 1(a) to 1(b) of Application form (as appropriate) Section 2 of Application form Section 4 to 11 of Application form Australian Company Details Section of IFSA/ FPA Identification Form for Companies. The company Two officers (eg directors or a director and secretary) OR As required by the constitution/ rules of the company OR One director (for a sole director company) Provide original or certified copies of the documentation listed in Australian Company Verification Procedure Section of the Australian Company IFSA/FPA Identification Forms for Companies. In addition to the above, the documentation for verification of a company director and any authorised signatory, as above (for Individuals see Section 13). Foreign Companies AND Section 1(a) to 1(b) of Application form (as appropriate) Section 2 of Application form Section 4 to 11 of Application form Foreign Company Details Section of IFSA/FPA Identification Form for Companies. The company Two officers (eg directors or a director and secretary) OR As required by the constitution/ rules of the company OR One director (for a sole director company) Provide original or certified copies of the documentation listed in Foreign Company Verification Procedure Section of the IFSA/FPA Identification Forms for Companies. In addition to the above, the documentation for verification of a company director and any authorised signatory, as above (for Individuals see Section 13). Non Corporate Trusts (including superannuation funds) AND Section 1(a) to 1(b) of Application form (as appropriate) Section 3 of Application form Section 4 to 11 of Application form Trust Details Section and Individual Trustee Details Section of IFSA/FPA Identification Form for Trusts and Trustees. The trustees of the trust All trustees Provide original or certified copies of the documentation listed in Trust Verification Procedure Section and Individual Trustee Verification Procedure Section of the IFSA/FPA Identification Form for Trusts and Trustees (The certified copy/extract of the trust deed should show the trust name, trustee(s) names, trustee(s) signatures with witness signatures). All authorised signatories/ executors also need to provide documentation for verification of Individuals (see Section 13). Reset this page 17

20 Applicant Type Sections to Complete Whose name must the account be in Who signs Documentation Required for ID verification Corporate Trusts (including superannuation funds) AND Section 1(a) to 1(b) of Application form (as appropriate) Section 2 of Application form Section 3 of Application form Section 4 to 11 of Application form Trust Details Section and Australian/Foreign Company Trustee details Section (as appropriate) of IFSA/FPA Identification Form for Trusts and Trustees. The Corporate Trustee 2 directors OR sole director OR director and company secretary (as required by the constitution/ rules of the company) Provide original or certified copies of the documentation listed in Trust Verification Procedure Section and Australian/ Foreign Company Trustee Verification Procedure Section (as appropriate) of the IFSA/ FPA Identification Form for Trusts and Trustees (The certified copy/ extract of the trust deed should show the trust name, trustee(s) names, trustee(s) signatures with witness signatures). All authorised signatories/ executors also need to provide documentation for verification of Individuals (see Section 13). Partnerships & Partners AND Section 1(a) to 1(b) of Application form (as appropriate for partners) Section 2 of Application form (for partnership) Section 4 to 11 of Application form Partnership and Partner Details Section of IFSA/ FPA Identification Form for Partnerships and Partners. The principals of the partnership The Partners Provide original or certified copies of the documentation listed in Partnership Verification Procedure Section and Individual Partner Verification Procedure Section of the IFSA/FPA Identification Form for Partnerships and Partners (The certified copy/extract of the partnership agreement should show the names of the partners). All authorised signatories also need to provide documentation for verification of Individuals (see Section 13). Associations Incorporated or Unincorporated AND Section 1(a) to 1(b) of Application form (as appropriate for officers) Section 2 of Application form (for association) Section 4 to 11 of Application form Association and Individual member Details Sections (as appropriate) of IFSA/ FPA Identification Form for Associations. The name of the incorporated body OR Officers on behalf of the unincorporated body Appointed officers. Applications must be completed under common seal and witnessed by two officers (for incorporated associations). (All officers must specify their title). Provide original or certified copies of the documentation listed in Association Verification Procedure Section and Individual Member Verification Procedure Section (if applicable) of IFSA/ FPA Identification Form for Associations (This should include a copy of signed meeting minutes showing which officers can open and operate on the account). All authorised signatories also need to provide documentation for verification of Individuals (see Section 13). Reset this page 18