commsec exchange traded options application form · statement (pds) 1 the australian securities...

COMMSECEXCHANGE TRADED OPTIONSAPPLICATION FORM

YOU ARE WHAT YOU DO

EXCHANGE TRADED OPTIONS APPLICATION FORM

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HOW TO USE THIS FORM – PLEASE USE CAPITAL LETTERS

If you require assistance completing this application form please call the CommSec Options Desk on 1800 245 698, 8am to 5.30pm (Sydney time), Monday to Friday.

You need to have an existing CHESS sponsored CommSec Share Trading Account to open an Exchange Traded Options Account. You may also have, if you require one, a CommSec Margin Loan. Please download an application form from commsec.com.au or call 13 15 19.

BEFORE YOU START

ENSURE THAT YOU HAVE READ THE LATEST PRODUCT DISCLOSURE STATEMENT (PDS)

1 THE AUSTRALIAN SECURITIES EXCHANGE’S UNDERSTANDING OPTIONS TRADING BOOKLET.

2 THE AUSTRALIAN SECURITIES EXCHANGE’S MARGINS BOOKLET.

3 THE COMMSEC EXCHANGE TRADED OPTIONS PRODUCT DISCLOSURE STATEMENT (PDS)

4THE COMMSEC EXCHANGE TRADED OPTIONS TERMS AND CONDITIONS OF THE PDS INCLUDING:

A. THE ‘DERIVATIVES CLIENT AGREEMENT’

B. THE ‘RISK DISCLOSURE STATEMENT’

C. THE ‘COMMONWEALTH SECURITIES GENERAL CONDITIONS OF TRADE AND TRADING RULES’

D. THE ‘TERMS AND CONDITIONS OF CHESS SPONSORSHIP’

E. THE ‘DIRECT DEBIT REQUEST SERVICE AGREEMENT’

F. THE ‘PRIVACY’ SECTION

CHECKLIST – ENSURE YOU HAVE COMPLETED THE FOLLOWING:

YOU MUST HAVE A CHESS SPONSORED COMMSEC SHARE TRADING ACCOUNT IN EXACTLY THE SAME NAME PRIOR TO OPENING AN EXCHANGE TRADED OPTIONS ACCOUNT

SECTIONS TO COMPLETE

ALL APPLICANTS TO COMPLETE

1 ACCOUNT IDENTIFICATION

2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS

5 OPTIONS SETTLEMENT DIRECT DEBIT AND DIRECT CREDIT REQUEST

6 SELECT OPTIONS LEVEL

7 TRADING LEVEL DETAILS

8 KNOWLEDGE TEST

12 CLIENT’S ACKNOWLEDGEMENT & SIGNATURE(S)

ADDITIONAL SECTION FOR A COMPANY APPLICANT/S

3 COMPANY ACCOUNT

ADDITIONAL SECTION FOR AN INDIVIDUAL ACTING AS A TRUSTEE OF A TRUST APPLICANT (INCL. MINORS)

4 SUPERANNUATION FUND, TRUST OR MINOR

ADDITIONAL SECTIONS FOR A COMPANY ACTING AS TRUSTEE OF A TRUST APPLICANT (INCL MINORS)

3 COMPANY ACCOUNT

4 SUPERANNUATION FUND, TRUST OR MINOR


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ADDITIONAL SECTIONS TO COMPLETE

ADDITIONAL SECTIONS FOR ALL MARGIN LOAN APPLICANTS

10 DEED OF ACKNOWLEDGEMENT FOR MARGIN LENDING APPLICANTS

11 STANDING REQUEST FOR BROKER TO BROKER

WHERE TO SEND THIS FORM

Return your completed and signed application form to:

Email: [email protected] Post: Reply Paid 60768, Australia Square NSW 1214 Fax: 1300 131 519

WHAT TO INCLUDE WITH YOUR APPLICATION FORM

If you do not have an existing CommSec Share Trading Account, or a CommSec Margin Loan and you require one, please complete the relevant application form and return it to CommSec with this form. You can complete the online application form on commsec.com.au or have the application form sent to you by calling 13 15 19, 8am to 8pm (Sydney time), Monday to Friday.

IMPORTANT INFORMATION READ BEFORE PROCEEDING

If you wish to authorise someone else to trade and/or conduct transaction/s on your behalf, you must complete an Authority Form. This form is available to download from the CommSec website. Once completed, please attach it to your Exchange Traded Options Application Form. By appointing an Additional Signatory for an Exchange Traded Options Account, this authority will also extend to any linked CommSec Share Trading Account.If you wish to transfer positions and collateral from an existing broker please complete Section 9.


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Link your Exchange Traded Options Account to either your CommSec Share Trading account or your Margin Loan. Please select one and provide the account number.

My CommSec account number is:

OR My Margin Loan number is:

The Margin Loan Account name MUST match your CommSec Share Trading Account

OR I have attached a CommSec Share Trading Account or Margin Loan application form

SECTION 2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS ALL APPLICANTS

SECTION 1 ACCOUNT IDENTIFICATION ALL APPLICANTS

• If you elect to open a joint account, all transactions will be registered in both names, and we will accept instructions from either person. Both applicants must sign the Application Form.

• If you are opening an account on behalf of a trust and the trustee is a company, complete Sections 2 and 3.

• Please make sure you have the latest details in your profile. You can find your profile at commsec.com.au > Portfolio > Accounts > Account Details

CLIENT 1 / APPLICANT 1 / DIRECTOR 1 / TRUSTEE 1

TITLE GIVEN NAME ( S ) SURNAME

DATE OF BIRTH E-MAIL ADDRESS

MANDATORYPLEASE TICK THE RELEVANT BOX AND CONTINUE AS ADVISED

My CommSec Client ID is>>> continue to Applicant 2 details if applicable

I am an existing customer and do not have a Client ID >>> please complete address details

I am attaching an application for a new CommSec Equity or Margin Loan

Account (which includes the application for a new Client ID)>>> continue to Applicant 2 details if applicable.

If CommSec Client ID is provided, there is no need to provide contact details. If you need to change your address, please go to commsec.com.au > Portfolio > Profile & Security

RESIDENTIAL ADDRESS ( Cannot be a PO Box )

STATE POSTCODE

POSTAL ADDRESS ( if same as residential address write ‘As above’ )

STATE POSTCODE

PLEASE PROVIDE CONTACT DETAILS AND TICK TO INDICATE YOUR PREFERRED CONTACT NUMBER (*Business telephone number is mandatory for Company applicants.)

BUSINESS* HOME MOBILE PHONE

( ) ( )

Continued


4


(IF APPLICABLE)





My CommSec Client ID is>>> continue to Applicant 3 details if applicable



Account (which includes the application for a new Client ID)>>> continue to Applicant 3 details if applicable.



STATE POSTCODE


STATE POSTCODE



( ) ( )

Continued


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(IF APPLICABLE)





My CommSec ID is



Account (which includes the application for a new Client ID)>>> please go to next page



STATE POSTCODE


STATE POSTCODE



( ) ( )


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SECTION 3 COMPANY ACCOUNT COMPANY APPLICANTS

› Only organisations registered as a company (Pty Ltd) with the Australian Securities and Investments Commission may open a Company account. All other businesses entities and individuals should complete Section 2.

› Complete Sections 2 and 3.

› Applicants wishing to open a Company account should affix the seal (if available) and have the form signed by: • two directors; or • the sole director (if applicable). In this case he or she needs to write 'sole office holder' next to his or her signature.

COMPANY LEGAL NAME

ACN

COMPANY ADDRESS ( Cannot be a PO Box )

STATE POSTCODE


STATE POSTCODE

EMAIL ADDRESS

MANDATORY

• If you intend to operate the account on behalf of a superannuation fund, family trust or person under the age of 18, please give the name of the entity or person here as an account designation. For minors, the name of the parent or guardian should be entered in Section 2. For trusts and superannuation funds, please enter the name of the trust as shown on the trust deed, leaving out the word ‘trust’.

• If the trustee is an individual/joint, please enter the trustee details in Section 2.

• If the trustee is a company, please enter the trustee details in Section 3.

• The account designation must match that of your linked equities or margin lending account.

NAME OF SUPERANNUATION FUND / TRUST / MINOR

Name must be no more than 23 characters, including spaces

SECTION 4 SUPERANNUATION FUND, TRUST OR MINOR SMSF AND TRUST APPLICANTS


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SECTION 5 OPTIONS SETTLEMENT DIRECT DEBIT AND DIRECT CREDIT REQUEST

ALL APPLICANTS

Please nominate your preferred settlement arrangement for Option trades on your CommSec Exchange Traded Options account.

› You are required to provide authority for direct debit and credit of a Commonwealth Bank A/C, even if you select to settle your Options trades (both Debit & Credit) from your Margin Loan.

Tick only one preference:

Link both debit and credit transactions to your existing nominated Commonwealth Bank account; or

Link both debit and credit transactions to your CommSec Margin Loan Account*.

* Please fill in the ‘CommSec Margin Loan’ section below.

I/We named on this application form authorise and request Commonwealth Securities Limited (APCA User ID No 062934 - Debit and 062895 - Credit) to arrange for funds to be debited from/credited to my/our account identified in this application and as prescribed below through the Bulk Electronic Clearing System (BECS). This authorisation is to remain in force in accordance with the terms described in the Commonwealth Securities Limited ABN 60 067 254 399 Direct Debit /Credit Request Service Agreement of the Exchange Traded Options PDS.Authorise the following:1. CommSec to verify the details of the account entered in the online application with Commonwealth Bank of Australia.2. Commonwealth Bank of Australia to release information allowing CommSec to verify the account details entered in the online application.Bank Account or Margin Loan MUST be in the same name as Options account

If your current settlement bank account is non-CBA, please provide a CBA bank account.

CommSec / Commonwealth Bank A/C# CommSec Margin Loan

BSB LOAN NUMBER

ACCOUNT NUMBER ACCOUNT NAME

ACCOUNT NAME

# If you do not have a Commonwealth Direct Investment Account (CDIA) or other Commonwealth Bank A/C please complete an application online at commsec.com.au > Portfolio > Offers & Apply > Applications

CLIENT 1 NAME

CLIENT 1 SIGNATURE

✗

DATE

CLIENT 3 NAME

CLIENT 3 SIGNATURE

✗

DATE

CLIENT 2 NAME

CLIENT 2 SIGNATURE

✗

DATE


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SECTION 6 SELECT OPTIONS LEVEL ALL APPLICANTS

Please indicate what Options level you requireLevel 3 and Level 4 are not available to Self-Managed Super Fund (SMSF) accounts.

Level 1 Trade long Calls & Puts Level 3 Level 2+ Selling Uncovered Options (Calls)

Level 2 Level 1+ Selling Covered Calls Level 4 Level 3+ Selling Uncovered Options (Calls & Puts)

If you're applying for a level 3 or 4 Options account, please complete your income, assets and liabilities.

1. Please enter your approximate annual gross income (pre-tax)

Income details Client 1 Client 2 (if applicable) Client 3 (if applicable)

Approximate annual gross income (pre-tax) $ $ $

2. Please detail the approximate value of your substantial assets and liabilities

Details of assets Client 1 Client 2 (if applicable) Client 3 (if applicable)

Estimated value of primary residence now $ $ $

Value of additional investment properties $ $ $

Cash in bank accounts $ $ $

Value of listed shares (unencumbered) $ $ $

Value of additional assets $ $ $

Total assets $ $ $

Details of liabilities Client 1 Client 2 (if applicable) Client 3 (if applicable)

Name of mortgagor

Property mortgage (primary residence & investment property) $ $ $

Credit card (current balance) $ $ $

Line of credit /overdraft (drawndowns) $ $ $

Other debts outstanding (i.e. personal loans/car loans etc.) $ $ $

Total liabilities $ $ $

Net assets (Total assets – total liabilities) $ $ $

Note: CommSec may request proof of the assets and liabilities you have listed

SECTION 7 TRADING LEVEL DETAILS ALL APPLICANTS

Please answer on behalf of all applicants.

1. Why do you wish to trade options?

Hedging/risk management Speculation

Income Generation Other (please provide details)

2. How often have you traded Exchange Traded Options before?

0 1-2 3-4 3-5 6-10 10+

Level 1 and 2 applicants please proceed to Section 9.


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SECTION 8KNOWLEDGE TEST LEVEL 3 & 4 APPLICANTS ONLY

All questions must be answered to be enabled with Level 3 and 4 trading on your Exchange Traded Options account.

1. You hold the following Option position for DEF Limited (DEF): Short 20 DEF June $38.00 Calls.

The share price of DEF rises from $38 to $39.

Which of the following statements is correct?

(a) The margin required for this position will increase

(b) The margin required for this position will decrease

(c) The margin required for this position will be the same

(d) No margins apply to this position

2. You enter the following Option position for MNO Limited (MNO): Short 1 MNO June $4.50 Call for 10c (Contract size = 100). You are exercised on the expiry day in June. The following day, MNO is trading at $4.75.

What is your total profit/loss if you buy the shares at market price to cover your obligation (excluding brokerage and ASX Clear charges)?

(a) Break even

(b) $15 loss

(c) $25 loss

(d) $35 profit

3. If additional margin is needed to cover a position, the Participant can:

(a) Call you to lodge more stock or cash to cover the obligation

(b) Automatically lodge cash or stock on your behalf with ASX Clear

(c) Automatically sell shares you hold to cover the obligation

(d) All of the above

4. All else remaining constant an increase in volatility for the underlying security leads to:

(a) Lower option premiums

(b) Higher option premiums

(c) Flat option premiums

(d) Lower strike prices

5. You enter the following Index Option position for S&P/ASX 200 Index (XJO):

Long 1 XJO June 5000 Call @ 100 points.

What is the total premium paid for this option order, assuming an Index Multiplier of $10?

(a) $100

(b) $1,000

(c) $1,100

(d) $2,000

6. Which of the following strategies would require a margin to be lodged?

(a) Bull Put spread

(b) Bull Call spread

(c) Bear Put spread

(d) All of the above strategies

7. You hold the following Bull Call spread position in OPQ Limited (OPQ)

Long 5 OPQ August $29.00 Calls @ $3.00

Short 5 OPQ August $31.00 Calls @ $0.50

What is the most likely outcome if you only close (sell) the $29 August Call series?

(a) You will make a profit on the strategy

(b) You will make a loss on the strategy

(c) You will now be required to pay a margin

(d) You will now no longer be required to pay a margin

8. Which of the following is not a valid Option strategy?

(a) Bull Call spread

(b) Ratio Bear Condor

(c) Bull Put spread

(d) Straddle

9. If you are assigned a Short Call position and don’t hold the stock you will be required to:

(a) Substitute cash for stock

(b) Purchase the stock immediately after you are notified of the exercise

(c) Make arrangements to purchase the stock the following week

(d) Do nothing

10. What will happen if you do nothing and your Long Call expires in-the-money?

(a) You will receive a cash settlement for the option value at expiry

(b) Nothing your option will just expire

(c) Your option will be automatically exercised

(d) Your broker will pay your margin for you

11. What will happen if a stock you have lodged is removed from the eligible security list?

(a) Your stock will stay lodged but you won’t be able to lodge more of that stock

(b) You will have to find an alternative collateral to cover your option position(s) or close your position(s)

(c) This will have no impact on you

(d) Your broker will pay your margin for you


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12. Please tick the correct pay-off diagram which accurately shows the break-even point, maximum profit and maximum loss for the following scenario:

Company XYZ is trading at $10.00. You sell 1 x $10.00 XYZ Call for a premium of $0.50.

(a)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at $10.00. You sell 1 x 1000 XYZ Call for a premium of $0.50.

• Break-even $10.50

• Maximum profit $9.50

• Maximum loss $0.50

(b)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Call for a premium of $0.50.



• Maximum loss unlimited

(c)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Call for a premium of $0.50.




13. Please tick the correct pay-off diagram which accurately shows the break-even point, maximum profit and maximum loss for the following scenario:

Company XYZ is trading at $10.00. You sell 1 x $10.00 XYZ Put for a premium of $0.50.

(a)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at $10.00. You sell 1 x 1000 XYZ Put for a premium of $0.50




(b)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Put for a premium of $0.50.




(c)

Pro�t

Share Price

Loss

08,00 9,00 10,00 11,00 12,00

Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Put for a premium of $0.50.




SECTION 8KNOWLEDGE TEST LEVEL 3 & 4 APPLICANTS ONLY


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SECTION 9 REQUEST FOR CHANGE OF SPONSORING BROKER OPTIONAL

NEW SPONSORING BROKER

Commonwealth Securities Limited Locked Bag 22 Australia Square NSW 1215 PID 1402

Please transfer ALL my/our open Exchange Traded Options positions, CHESS Sponsored shareholdings and/or SCRIP held in safe custody and my / our Holder Identification Number (HIN) from another broker.

Please transfer ALL my/our open Exchange Traded Options positions, CHESS Sponsored shareholdings and/or SCRIP held in safe custody from my/our Holder Identification Number (HIN) with my exisiting broker to my/our Holder Identification Number (HIN) with CommSec.

Please transfer ALL my/our open Exchange Traded Options positions only to my/our Holder Identification Number (HIN) with CommSec.

ACCOUNT NAME AT OTHER BROKER

ACCOUNT DESIGNATION (IF ANY)

THE NAME OF THE OTHER BROKER

PARTICIPANT ID (PID) OF OTHER BROKER HOLDER IDENTIFICATION NUMBER (HIN) OF OTHER BROKER

ACCOUNT NUMBER OF OTHER BROKER

APPLICANT 1 NAME APPLICANT 2 NAME

APPLICANT 1 SIGNATURE APPLICANT 2 SIGNATURE

✗ ✗

DATE DATE

APPLICANT 3 NAME

APPLICANT 3 SIGNATURE

✗

DATE

› Complete only if you are transferring all broker-sponsored holdings and/or open Exchange Traded Options positions.

› By requesting CommSec to broker-transfer your stocks you also agree to be CHESS Sponsored by CommSec.

› The following details must be exactly the same as those on your current CHESS Settlement Facility Statement from your existing broker (or other applicable documents attached), to ensure successful transfer of all stocks.`

› A copy of your latest CHESS Holding Statement must be attached.

Level 1 Applicants ››› Go to Section 14

Level 2, 3 or 4 Applicants ››› Go to Section 10


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› If you wish to use your CommSec Margin Loan in conjunction with your CommSec Exchange Traded Options Account, you must complete this section and section 11.

EXCHANGE TRADED OPTIONS ACCOUNT NUMBER LEAVE OPTIONS ACCOUNT NUMBER BLANK FOR NEW OPTIONS ACCOUNT

Dear Sir/Madam

Client acknowledgement of the Master Deed of Priority.

I refer to the Master Deed of Priority dated 10/01/02 (the ‘Deed’) between ASX Clear Pty Ltd (ABN 48 001 314 503) (ASX Clear) and Commonwealth Bank of Australia ABN 48 123 123 124 (the ‘Lender’). Terms defined in the Deed have the same meaning in this letter. I am a client of the Lender and have instructed my Clearing Participant, Commonwealth Securities Limited ABN 60 067 254 399, to register Options Contracts with ASX Clear.

I/We acknowledge, consent to and confirm the following:

11. I/We indemnify ASX Clear for any costs, liabilities or loss incurred by it, or its agents or employees in connection with the:

(a) execution and stamping of the Deed; and

(b) costs, charges and expenses incurred by ASX Clear in connection with any exercise or non-exercise of rights under or any variation, waiver or discharge in relation to the Deed.

12. I/We agree to be bound by the Deed and acknowledge and confirm the order of priorities between the ASX Clear Securities and the Lender Securities set out in the Deed.

13. I/We will cooperate in the implementation of, and assist in giving effect to, the Deed and will not do anything inconsistent with the terms of the Deed.

ACCOUNT HOLDER SIGNATURE 1 PRINT NAME DATE

✗


✗


✗

SECTION 10FORM OF ACKNOWLEDGEMENT FOR MARGIN LENDING APPLICANTS

LEVEL 2 MARGIN LOAN ACCOUNT


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› If you wish to use your CommSec Margin Loan in conjunction with your CommSec Exchange Traded Options Account, you must complete this section and section 10.

Please nominate your preferred settlement arrangement for option trades on your Exchange Traded Options Account.

› For joint shareholdings, all holders must sign.

› If signed by an Attorney, the Power must have either been previously noted by CommSec or be duly stamped and accompany this advice.

NAME

EXCHANGE TRADED OPTIONS ACCOUNT NUMBER (COMMSEC TO FILL IN ACCOUNT NUMBER)

I/We authorise CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) to freely move shares between my/our accounts and CHESS Settlement Facility HINs for the purpose of satisfying my/our margin requirements at either ASX Clear Pty Ltd or my/our Margin Loan.

I/We acknowledge that CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) will attempt to conduct these transfers in my/our best interests, but cannot guarantee coverage of all margining requirements on both accounts in all circumstances. I/We will not hold CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) responsible for any loss, costs or disadvantage incurred as a result of actions arising from this request.

I/We acknowledge that satisfying all margin requirements remains ultimately my/our responsibility.

From/To: Commonwealth Bank of Australia (CommSec Margin Lending) Locked Bag 34 AUSTRALIA SQUARE NSW 1214

PID

MARGIN LOAN HIN

ACCOUNT NUMBER

To/From: CommSec Locked Bag 22 AUSTRALIA SQUARE NSW 1215

PID

1 4 0 2

HIN

ACCOUNT

Signature of Shareholders authorising the transfer when required:

SIGNATURE 1 PRINT NAME DATE

✗


✗


✗

CommSec Margin Loan is a product of the Commonwealth Bank of Australia ABN 48 123 123 124 administered by its wholly owned non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (‘CommSec’).

SECTION 11 STANDING REQUEST FOR BROKER TO BROKER TRANSFER MARGIN LOAN

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SECTION 12CLIENT’S ACKNOWLEDGEMENT & SIGNATURE(S) ALL APPLICANTS

• I/We have read the Derivatives Client Agreement in the Exchange Traded Options PDS. If the application is accepted, I/we agree to abide by that Agreement.

• I/We have received or accessed the ASX booklet ‘Understanding Options Trading’.

• I/We have read Clause 32 in the Derivatives Client Agreement in the Exchange Traded Options PDS relating to email confirmations.

• I/We acknowledge and consent that on supplying an email address, it will be used as the sole method of communication as detailed in that section.

• I/We have read and accept Clause 20 of the Derivatives Client Agreement in the Exchange Traded Options PDS relating to default.

• I/We consent to CommSec to take the necessary actions to fulfil it’s obligations as a market participant.

• I/We have read and accept Clause 34 of the Derivatives Client Agreement in the Exchange Traded Options PDS relating to the obligations and liabilities I/we will have to the Commonwealth Bank of Australia.

• I/We have read and understood the Risk Disclosure Statement in the Exchange Traded Options PDS.

• I/We have read and accept the Commonwealth Securities General Conditions of Trade and the Trading Rules of the Exchange Traded Options PDS.

• I/We have read and accept Clause 12 of the Commonwealth Securities General Conditions of Trade in relation to my/our commitments. I/We consent to CommSec debiting any of my accounts, including margin lending facilities for monies owing.

• I/We consent to the collection, use and exchange of my/our personal information as set out in the Privacy section of the Exchange Traded Options PDS.

• I/We agree and confirm the payment instructions set out in Section 5 of this application form.

• I/We agree to become CHESS Sponsored by CommSec and agree to abide by the CHESS Sponsorship Terms and Conditions in the Exchange Traded Options PDS.

• (SMSF accounts only) I/We confirm that the self-managed super fund has a Derivatives Risk Statement and that all trading of Exchange Traded Options will be conducted in accordance with that statement.

LEVEL 3 AND LEVEL 4 CLIENTSIn addition to all other terms, conditions and acknowledgements outlined in the Exchange Traded Options PDS to which I/We agree:

• I/We understand the term ‘Leverage’ as defined in the Risk Disclosure Statement of the Exchange Traded Options PDS, and have considered and accept all the risks involved when writing a Call or Put Option.

• I/We have read the ASX booklet ‘Understanding Margins’ and are aware of my/our margin obligations when writing Call or Put Options. I/We have also contacted CommSec to discuss how margins are calculated and charged when writing Call or Put Options.

• I/We understand that if I/we intend to lodge stock to meet my/our margin obligations that the stock will be subject to a security interest granted to ASX Clear and that I/we authorise CommSec to grant such security interest under and in accordance with the ASX Rules.

• I/we understand that CommSec may call for proof of my/our ability to service the obligations of my/our open short positions.

• I/We agree to provide any requested financial statements and understand CommSec may restrict my/our trading activity until I/we have done so.

• I/We understand that CommSec requires all trades to settle through a Commonwealth Direct Investment Account (CDIA) or another Commonwealth Bank account or a CommSec Margin Loan.

• I/We agree that when I/we give an instruction to write a Call or Put Option, that I/we have considered all information relating to that position that is available to the market (including but not limited to Financials, Announcements, Dividends (etc) and that I am/we are responsible for the instructions that I/we confirm for placement.

• I/We agree that when I/we enter an Options position, that at all times I/we will be responsible for that position up until that position has been closed in full, and that I am/we are required to meet all settlements on T+1.

• I/We understand that corporate actions and other anomalies that occur in the market without prior warning may adversely affect my/our position.

• I/We agree that at any time without giving prior notice, CommSec has the right to reduce the trading level of my/our account and/or close any open positions if it is considered to be in CommSec’s reasonable interest to do so.


1515

By signing this Application in the place(s) provided, I/we acknowledge the correctness of these statements as outlined in section 12.

Tick this box if you do not wish to receive any promotional information (including information about initial public offers).

SIGNATURE OF CLIENT / APPLICANT / DIRECTOR / TRUSTEE 1 SIGNATURE OF CLIENT / APPLICANT /

DIRECTOR / TRUSTEE 2

CLIENT 1 / APPLICANT 1 / DIRECTOR 1 / TRUSTEE 1 NAME CLIENT 2 / APPLICANT 2 / DIRECTOR 2 / TRUSTEE 2 NAME

CLIENT 1 / APPLICANT 1 / DIRECTOR 1 / TRUSTEE 1 SIGNATURE CLIENT 2 / APPLICANT 2 / DIRECTOR 2 / TRUSTEE 2 SIGNATURE

✗ ✗

DATE DATE

SIGNATURE OF CLIENT / APPLICANT / DIRECTOR / TRUSTEE 3

CLIENT 3 / APPLICANT 3 / DIRECTOR 3 / TRUSTEE 3 NAME

CLIENT 3 / APPLICANT 3 / DIRECTOR 3 / TRUSTEE 3 SIGNATURE

✗

DATE


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THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK


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MKTG942 03/19

1800 245 698 commsec.com.au

commsec exchange traded options application form · statement (pds) 1 the australian securities...

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