ASIC has developed seven disclosure benchmarks for over-the-counter contracts for difference (OTC CFDs) to help retail investors understand the risks associated with these products, assess their potential benefits and decide whether investment in these products is suitable for them.
As a provider of OTC CFDs, we provide the below information to explain whether and how we meet and address the benchmarks.
Please note that it is a summary only and should not be relied upon solely. You should refer to our PDS which sets out the information in more detailed before deciding whether investment in the aforesaid products is suitable for you.
Benchmark 1 | Client Qualification
To ensure compliance with the Australian Anti-Money Laundering and Counter Terrorism Financial Act 2006 and ASIC Regulatory Guide 227, we maintain and apply a Client Qualification Policy to ensure all prospective clients have appropriate experience in, or knowledge and understanding in derivative products.
First, we require applicants to satisfy one of the following criteria:
1. Demonstrate that they have previous trading experience in the same or similar products; or
2. Pass our online qualification test with a score of 70% or greater.
If applicants cannot satisfy one of the aforementioned criteria, then they will not be considered qualified to be a client of EightCap.
Further, we are also required to identify the identity of our clients before we can set up any trading account and therefore require applicants to provide us with certain identification documents.
Benchmark 2 | Opening Collateral
We only accept cleared funds from clients as collateral to open a trading account.
These cannot be cash equivalents (e.g. no securities as deposits) and can only be electronic funds transfer from client’s bank account or through credit card payment.
We also comply with ASIC’s suggested benchmark on opening collateral requirements and apply a maximum amount of $1,000 for initial funding if payments are made by credit card.
Benchmark 3 | Counterparty Risk (Hedging)
We have a formal Counterparty and Hedging Policy that is maintained and updated regularly.
We have assessed the market risk and counterparty risks arising from entering into transactions with customers and hedging counter-parties and applied controls to mitigate those risks.
Generally, we may not hedge a client’s position or post the trade straight through (known as straight through processing or STP) and instead set the prices at which we are prepared to deal with the client. In some cases, client trades are hedged by passing the equivalent volume of instrument traded through to a Liquidity Partner (LP), thereby mitigating client’s risk resulting from adverse market movements.
We also conduct regular surveillance of our client-to-liquidity-provider exposure to ensure any discrepancies that may arise are corrected as appropriate. This may from time to time involve bulk purchases of a given currency or index with an LP which are generally infrequent and immaterial in size.
Benchmark 4 | Counterparty Risk (Financial Resources)
We maintain and follow a written policy and procedure to ensure we meet all financial regulatory obligations including the requirements of an Australian Financial Services Licensee.
To mitigate the risks of failing to satisfy the financial requirements under our license and to provide assurance that we have sufficient financial resources at all times, we:
– have established an internal requirement to maintain a capital buffer over and above the external regulatory requirement;
– measure and monitor the internal buffer and the external financial requirements against our actual financial condition on a daily basis; and
– subject our financial condition to quarterly scenario tests to assess compliance with the regulatory capital requirements and our ongoing financial needs under stressed conditions.
In addition, we have a dedicated Compliance Officer who monitors our compliance with our licence conditions and ASIC RG 166 (financial) obligations. We also employ independent, external legal and accounting advisers who ensure we meet ASIC requirements and conduct an audit at the end of each financial year.
Benchmark 5 | Client Money
We have a detailed and clear policy regarding the use and handling of client money. We ensure that we follow and comply with the Australian Client Money Handling Rules and employ strict policies and procedures regarding the maintenance and operation of these accounts.
Funds received from clients are deposited into segregated bank accounts with Australian Authorised Deposit-taking Institutions (ADIs) and are held separately from business operating funds. We currently hold segregated client trust accounts with the AA-rated National Australia Bank (NAB).
Please note that we do not use client money for any business purpose – it is solely used for the purpose of maintaining margin that is needed to cover positions opened by clients only.
Benchmark 6 | Suspended or Halted Underlying Assets
We do not allow new positions to be opened when the underlying market is halted or suspended.
We may, in our absolute discretion, cancel client’s order in respect of a Margin FX or CFD transaction which has not yet been opened, or close any open positions where the underlying financial product is the subject of a trading halt, suspension or delisting.
Benchmark 7 | Margin Calls
We operate a written policy in relation to margin call practices and close outs.
Generally speaking, all open positions are monitored on a real-time basis, intraday, 5 days per week to ensure changing margin requirements are identified in a timely manner. Further, all margin calls will be communicated to clients via email and/or the online trading platform.
Please note that while this automated margin call process acts as a protection for both client and provider, market volatility, particularly surrounding news events, may result in additional losses. It is your obligation to ensure you are always available to receive and action such margin calls – we cannot guarantee that margin call emails will be received and reserve the full rights to close out your positions when margin calls have not been met in order to protect against exposure to further losses.
Level 11, 356 Collins Street
위험 경고: 마진 거래는 높은 수준의 위험을 수반하며 모든 투자자에게 적합하지 않을 수 있습니다. EightCap 과의 마진 거래를하기 전에 목표, 재정적 상황, 요구 사항 및 경험 수준을 면밀히 검토하고 필요한 경우 독립적인 자문을 구해야합니다. 외환 및 CFD는 레버리지가 높은 제품으로, 이익과 손실 모두가 확대됩니다. 관련된 위험을 충분히 이해하고 손실을 감당할 수 있는 자본으로만 거래를 하셔야 합니다. 제품에 대한 제품 공개 성명서 (PDS) 및 금융 서비스 안내서 (FSG) 는 법률 문서 페이지에서 다운로드 할 수 있습니다. 제품이나 서비스 사용에 대한 결정을 내리기 전에 신중하게 평가하고 고려하시길 바랍니다.
EightCap 은 EightCap Pty Ltd (ABN 73 139 495 944) 의 등록 상호명입니다. 우리는 호주 증권 및 투자위원회 (ASIC) 의 규제를받습니다 ~ AFSL 번호는 391441 입니다. 이 라이센스는 호주에있는 사람들에게 금융 서비스를 제공 할 권한을 부여합니다.
이 웹 사이트의 정보는 일반적인며 현지 법률 또는 규정에 위배되는 모든 국가 또는 관할 구역의 거주자를 대상으로하지 않습니다. EightCap 은 재정 고문이 아니며 거래의 획득, 보유 또는 처분과 관련하여 조언, 권장 또는 의견을 제시하지 않습니다. 저희는 일반적인 조언만 제공하므로 그에 대한 조치를 취하기 전에 귀하의 목표, 재정적 상황 및 필요에 대한 적절한 조언을 고려해야합니다.