S T R U C T U R E D O P T IO N S P R O D U C T D IS C LO S ......ABN 24 150 129 749 WUBS Rep resentati v e or b y contacting WUBS using the contact details in Section 3.1 WUBS Contact

STRUCTURED OPTIONS

PRODUCT DISCLOSURE STATEMENT

moving money for better

BUSINESSWESTERNUNIONCOMAU

Issuer Western Union Business Solutions (Australia) Pty Limited (ABN 24 150 129 749) (AFSL 404 092)

STRUCTURED OPTIONSPRODUCT DISCLOSURE STATEMENTIssue Date 26th June 2017

TABLE OF CONTENTS

1 PURPOSE 4

2 IMPORTANT INFORMATION 421 COPIES 422 UPDATES RELATING TO THIS PDS 423 WUBS PRODUCTS 524 FINANCIAL AMOUNTS 525 GLOSSARY OF TERMS 526 COUNTERPARTY CREDIT RISK 527 DISCLAIMER 5

3 ISSUER 531 WUBS CONTACT DETAILS 532 WUBS SERVICES 533 HOW TO ACCESS WUBS SERVICES 534 ADDITIONAL INFORMATION 5

4 FOREIGN EXCHANGE OVERVIEW 541 THE FOREIGN EXCHANGE MARKET 542 CURRENCY LIMITATIONS 6

5 WHAT IS A STRUCTURED OPTION 6

6 WUBS STRUCTURED OPTIONS 661 COLLAR 762 PARTICIPATING COLLAR 763 PARTICIPATING FORWARD 864 EXTENDIBLE FORWARD 965 KNOCK-IN IMPROVER 966 KNOCK-IN 1067 KNOCK-IN COLLAR 1168 KNOCK-IN PARTICIPATING FORWARD 1269 KNOCK-IN RESET 13610 KNOCK-IN CONVERTIBLE 13611 KNOCK-OUT PARTICIPATING 14612 KNOCK-OUT RESET 15613 KNOCK-OUT CONVERTIBLE 16

7 CREDIT REQUIREMENTS FOR A STRUCTURED OPTION 1671 INITIAL MARGINS 1772 MARGIN CALLS 1773 CREDIT LIMITS 1774 CLIENT MONEY 1775 CLIENT MONEY RISK 18

8 COST OF A STRUCTURED OPTION 1881 INTEREST 1882 PREMIUMS 1883 EXCHANGE RATE 1884 TRANSACTION FEES 18

9 BENEFITS OF STRUCTURED OPTIONS 181910 RISKS OF STRUCTURED OPTIONS

2 Issuer Western Union Business Solutions (Australia) Pty Limited (ABN 24 150 129 749) (AFSL 404 092)

11 ORDERS INSTRUCTIONS CONFIRMATIONS AND TELEPHONE CONVERSATIONS 19

12 TERMS AND CONDITIONS AND OTHER DOCUMENTATION 19121 TERMS AND CONDITIONS 19122 OTHER INFORMATION 20

13 DISPUTE RESOLUTION 20

14 TAXATION 20

15 PRIVACY 20

16 GLOSSARY OF TERMS 22

Issuer Western Union Business Solutions (Australia) Pty Limited (ABN 24 150 129 749) (AFSL 404 092) 3

particular financial situation1 PURPOSE

The distribution of this PDS and the offer and sale ofThis Product Disclosure Statement (PDS) is datedStructured Options offered under this PDS may be26th June 2017restricted by law in certain jurisdictions WUBS does

This PDS contains information about Structured Foreign not represent that this PDS may be lawfully distributedExchange Options (Structured Options) Western Union or that any Structured Options may be lawfully offeredBusiness Solutions (Australia) Pty Limited (ABN 24 150 in compliance with any applicable registration or other129 749) (AFSL 404 092) (referred to in this document as requirements in any such jurisdiction or pursuant tolsquoWestern Union Business Solutionsrsquo lsquoWUBSrsquo lsquowersquo lsquoourrsquo an exemption available thereunder or assumes anyand lsquousrsquo) is providing you with this PDS so that you receive responsibility for facilitating any such distribution or offeringimportant information about Structured Options including In particular no action has been taken by WUBS whichtheir benefits risks and costs would permit a public offering of any Structured Options or

distribution of this PDS in any jurisdiction where action forThe purpose of this PDS is to provide you with sufficientthat purpose is requiredinformation for you to determine whether a Structured

Option meets your needs This PDS will also allow you to Accordingly no Structured Options may be offered orcompare the features of other products that you may be sold directly or indirectly and neither this PDS nor anyconsidering advertisement or other offering material may be distributed

or published in any jurisdiction except under circumstancesPlease read this PDS carefully before purchasing athat will result in compliance with any applicable laws andStructured Option In the event that you enter into aregulation Persons into whose possession this PDS or anyStructured Option with us you should keep a copy of thisStructured Options offered under this PDS come mustPDS along with any associated documentation for futureinform themselves about and observe any such restrictionsreference

This PDS and the Structured Options offered under thisThe information set out in this PDS has been preparedPDS have not been and will not be registered under thewithout taking into account your objectives financialUS Securities Act of 1933 as amended or any US state orsituation or needs Before making any decision about theother securities laws Accordingly the Structured OptionsStructured Options offered under this PDS you shouldoffered in this PDS may not be granted to or taken up byconsider whether it is appropriate having regard toand the Structured Options may not be offered or sold toyour own objectives financial situation and needs Thisany person that is in the United States or that is or is actingPDS does not constitute financial advice or a financialfor the account or benefit of a US personrecommendation

If you have any questions or require moreYou should read all of this PDS the Financial Serviceinformation please contact WUBS on 1300 732 561Guide (FSG) the WUBS Terms and Conditions and WUBS(Australia only) or +61 2 8585 7000 or by emailForeign Exchange and Draft Transactions PDS dated 16thwubscustomerserviceaustraliawesternunioncom or referJanuary 2017 available atto our website wwwbusinesswesternunioncomauhttpbusinesswesternunioncomauaboutCompliance-Legal

before making a decision to enter into any StructuredOptions offered under this PDS We recommend that you

2 IMPORTANT INFORMATIONcontact us if you have any questions arising from this PDSor the Terms and Conditions prior to entering into any

21 Copiestransactions with us

Copies of this PDS are available free of charge YouA Structured Option may be suitable for you if you have a

can download a copy of this PDS fromhigh level of understanding and accept the risks involved in

httpbusinesswesternunioncomauAboutCompliance-Legalinvesting in financial products involving foreign exchange

or request a copy by either email atand related markets If you are not confident about your

wubscustomerserviceaustraliawesternunioncom orunderstanding of these markets we strongly suggest you

by phone 1300 732 561 (Australia Only)seek independent advice before making a decision about

This PDS replaces the Structured Foreign Exchangethese productsOptions PDS issued by WUBS and dated 29

For example consideration should be given to all theJune 2015

potential outcomes of specific Structured Options andstrategies before entering into any Structured Options 22 Updates relating to this PDSdescribed in this PDS We encourage you to obtain

The information in this PDS is subject to changeindependent financial advice which takes into accountWUBS will issue a supplementary or replacementthe particular reasons you are considering entering intoPDS where new information arises that is materiallyStructured Options from WUBSadverse to the information in this PDS Where new

Independent taxation and accounting advice should information arises that is not materially adverse toalso be obtained in relation to the impact of possible the information in this PDS WUBS will post suchforeign exchange gains and losses in light of your updated information on our website located at


WUBS Compliance amp Legal webpage as set out in This PDS was prepared bysection 21 above

Western Union Business Solutions (Australia) Pty LimitedYou may request a copy of this information from your

ABN 24 150 129 749WUBS Representative or by contacting WUBS using

AFSL Number 404092the contact details in Section 31 ldquoWUBS ContactDetailsrdquo of this PDS

31 WUBS Contact DetailsIf we issue a supplementary or new PDS we will

Address Level 12 1 Margaret St SYDNEY NSW 2000notify you by posting the supplementary PDS or newPDS on our website Alternatively we may notify you Phone +61 2 8585 7000 or 1300 732 561by sending a written notice at least five (5) days prior (Australia Only)to the effective date of the supplementary PDS or

Principal Contact Compliance Departmentnew PDS (which contains a link to the supplementaryPDS or new PDS) to your email address as notified to Email wubscustomerserviceaustraliawesternunioncomus by you

Website httpbusinesswesternunioncomau

23 WUBS Products32 WUBS Services

Separate PDSs are also available for (i) ForeignWUBS is a specialist provider in foreign exchange and

Exchange and Drafts Transactions (ii) Vanilla Optionsinternational payments products and services We

and (iii) Enhanced Structured Options Please contactwork with individuals and companies of all sizes to

us if you require a copy of any of these PDSs usingcreate solutions that assist their business payments

the contact information contained in Section 31and foreign exchange process challenges to manage

ldquoWUBS Contact Detailsrdquo of this PDS or downloadrisk and costs

from our website athttpbusinesswesternunioncomauaboutCompliance-Legal 33 How to Access WUBS Services

After agreeing to our Terms and Conditions and after24 Financial Amountsyour application has been approved by us you will

All financial amounts expressed in this PDS are inhave access to our Structured Options and will be able

Australian Dollars (AUD) unless otherwise statedto provide us Instructions by

25 Glossary of Terms bull Phone - where you can call us and speak to oneof WUBS Representatives and provide us withWords in BOLD used in this PDS other than headingsInstructions to transact your currency needs orhave defined meanings These meanings can be

located in Section 16 ldquoGlossary of Termsrdquo of this PDS bull Email - where you can email us to provide youraccount details and Instructions

26 Counterparty Credit Risk

34 Additional InformationWhen you enter into a Structured Option with WUBSyou are exposed to Counterparty credit risk against Our website provides additional information thatWUBS That is you have the risk that WUBS will may be useful including information about currencynot meet its obligations to you under the relevant transactions and payment solutions a resource centreStructured Option To assess our financial ability to and information relating to our company history Youmeet our obligations to you you can obtain a copy of must note that any information in this PDS or on ourour financial statements free of charge by emailing website does not take into account your personalcorphedgingAPACwesternunioncom financial circumstances and needs

27 Disclaimer

4 FOREIGN EXCHANGE OVERVIEWAny information that is provided in this PDS does nottake account of your financial situation objectives

Foreign Exchange refers to the purchase of one currencyor needs Because of this before you act on it you

and the sale of another currency at an agreed Exchangeshould consider its appropriateness having regard to

Rate simultaneously Separate from the Exchange Rate youyour own objectives financial situations or needs

will need to consider the relevant fees associated with yourWUBS does not take into account labour standards or transaction Our fees for Structured Options are described inenvironmental social or ethical considerations Section 8 ldquoCost of a Structured Optionrdquo of this PDS

41 The Foreign Exchange Market3 ISSUER

Structured Options are not entered into on anauthorised exchange such as a stock market There isWestern Union Business Solutions (Australia) Pty Limitedno official benchmark Exchange Rate for Structureddoing business as Western Union Business Solutions is theOptions The foreign exchange market is referred to asIssuer of the Structured Options described in this PDS


an ldquoOver-The-Counter (OTC)rdquo market which means lsquothe Sellerrsquo of an option (ie you are selling an option tothat Exchange Rates will often vary when compared WUBS) Notwithstanding the use of these terms WUBS isbetween providers always the Issuer of the Structured Options product

Exchange Rates are quoted on the Interbank Depending on the Structured Option that is created thereMarket which is a wholesale market for Authorised may be certain conditions attached to one or more of theExchange Dealers with Interbank Exchange Put Options or Call Options within the structure that areRates fluctuating according to supply and demand triggered if an agreed Exchange Rate trades in the spotThis market is restricted to Authorised Exchange foreign exchange market during the Tenor of the StructuredDealers and banks that constantly quote to each Option We refer to these as Trigger Rates A Trigger Rateother at wholesale Exchange Rates and in minimum may be either a Knock-In Rate or a Knock-Out Rate Aparcel sizes Knock-In Rate is an Exchange Rate that must be traded

(at or beyond) in the spot foreign exchange market forFactors that influence supply and demand (and

the buyerrsquos right pursuant to a Call Option or a Put Optiontherefore the Exchange Rate quoted to you) include

to become effective (ie the Call Option or Put Option isbull investment inflowsoutflows contingent on the Knock-In Rate being triggered) A Knock-

Out Rate is an Exchange Rate that if traded (at or beyond) inbull market sentiment or expectationsthe spot foreign exchange market will result in the buyerrsquos

bull economic and political influences including right pursuant to a Call Option or Put Option terminating (iegeopolitical influence and the Call Option or Put Option terminates if the Knock-Out

Rate is triggered)bull importexport of goods and services

Our default position is that where a Trigger Rate isExchange Rates quoted in the media generally refer toapplicable it will apply for the Tenor of the Structured OptionInterbank Exchange Rates and will usually differ fromIt is possible however to apply a shorter Tenor to the TriggerExchange Rates quoted to youRate We refer to these shorter Tenors as Windows

Because Structured Options are traded OTC withTypical trigger Windows include ldquolast monthrdquo (whereWUBS you will not be able to sell or transfer yourthe Trigger Rate is only effective in the last month of thetransaction with another provider You will only beStructured Option) ldquolast weekrdquo (where the Trigger Rate isable to reverse or cancel your Structured Optiononly effective in the last week of the Structured Option)with WUBSldquolast dayrdquo (where the Trigger Rate is only effective on the

42 Currency Limitations last day of the Structured Option) and ldquoat Expiryrdquo (wherethe Trigger Rate is only effective at the Expiry Time on the

While WUBS endeavours to ensure that you areExpiry Date (Expiry) of the Structured Option)

provided with access to the Currency Pair of yourchoice WUBS does not guarantee that it will offer You can ask WUBS to provide you with a Window at anyStructured Options in all Currency Pairs This may arise time before you enter into a Structured Option If a Windowfor a number of reasons including restrictions that is nominated the Spot Rate which is the Exchange Rateare imposed on WUBS or WUBS not having access to for a foreign exchange transaction with a Settlementcertain currencies through its Correspondent Banks date of up to two (2) Business Days may trade at or

beyond the Trigger Rate before the trigger is live withoutyou being knocked-in or knocked-out The Spot Rate will

5 WHAT IS A STRUCTURED OPTION only be compared to the Trigger Rate during the WindowBy choosing a Window the Trigger Rate will be lessA Structured Option describes a group of foreign exchangefavourable to you than if there were no Window in place Theproducts that have been developed as foreign exchange riskProtection Rate which is the agreed worst case Exchangemanagement alternatives to Forward Exchange ContractsRate that applies to a Structured Option will also be less(FEC) and Vanilla Optionsfavourable to you than if there were no Window in place

A Structured Option is an agreement to exchange a These rates will be less favourable to you the shorter thespecified amount of one currency for another currency period of the Windowat an Exchange Rate that is determined by reference to

Set out below is a description of each of the thirteen (13)agreed mechanisms within each particular StructuredStructured Options products that we provideOptions product

A Structured Option is created through the concurrent6 WUBS STRUCTURED OPTIONSsale and purchase of two or more Call Options andor

Put Options A Call Option is an agreement that gives theThe examples that are used within the description of

buyer the right (but not the obligation) to buy a currencyeach Structured Option product in this Section 6 are for

at a specified price at a specified time A Put Optioninformation purposes only and use rates and figures that

is an agreement that gives the buyer the right (but notwe have selected to demonstrate how each product works

the obligation) to sell a currency at a specified price at afrom the perspective of Australian based importers WUBS

specified time In any structure you may be both lsquothe Buyerrsquowill provide Australian based exporter examples of the

of an option (ie you are buying an option from WUBS) and


requested Structured Option on request In order to assess bull An ability to participate in favourable Exchangethe merits of any particular Structured Option you should Rate movements to the level of Participation Rateuse the actual rates and figures quoted at the relevant time

614 Risks of a CollarEach of the examples below assumes the following

The following are specific risks of a Collarbull An importer is buying goods from the United States and is

bull The Protection Rate will be less favourable thanscheduled to make a payment of USD100000 (Notionalthe Forward Exchange Rate applicable to aAmount) in six (6) monthsrsquo timecomparable FEC

bull The current Spot Rate AUDUSD is 07700bull Participation in favourable Exchange Rate

bull The six month Forward Exchange Rate is 07650 movements is capped at the Participation Rate

61 Collar bull If the Spot Rate at Expiry is more favourable thanthe Participation Rate you will be obligated to trade

A Collar is a Structured Option which allows you toat the Participation Rate

protect against the risk that the Spot Rate will be lessfavourable than a nominated worst case Exchange 62 Participating CollarRate (the Protection Rate) It also gives you the ability

The Participating Collar is a Structured Option whichto participate in favourable movements in the Spotallows you to protect against the risk that the SpotRate between the Protection Rate and the best caseRate will be less favourable than a nominated worstExchange Rate that can potentially be achieved knowncase Exchange Rate (the Protection Rate) It also givesas the Participation Rateyou the ability to participate in favourable movements

A Collar is structured by entering into two in the Spot Rate on a portion of your exposureconcurrent options between the Protection Rate and the Participation

Rate at Expiryi You buy a Put Option from WUBS at the ProtectionRate A Participating Collar is structured by entering into

three concurrent optionsii You sell a corresponding Call Option to WUBS atthe Participation Rate i You buy a Put Option from WUBS at the

Protection RateA Collar always provides you with protection at theProtection Rate ii You sell a Call Option to WUBS at the Protection

Rate This Call Option will be for a percentage of611 Example of a Collar

the Notional Amount of your Put Option outlined inThe importer enters into a Collar with the (i) (the Obligation Percentage) and will obligatefollowing terms you to trade with WUBS at the Protection Rate if

the Spot Rate exceeds that level at Expirybull Protection Rate 07200iii You sell a Call Option to WUBS at the Participationbull Participation Rate 07950

Rate The Notional Amount of this Call Option willbull Expiry Date 6 months be equal to or less than the Notional Amount of the

Put Option outlined in (i) less the Notional Amount612 Possible Outcomes at Expiry

of the Call Option outlined in (ii) This option willbull If the Spot Rate is less favourable than the obligate you to trade at the Participation Rate if the

Protection Rate (07200) say 06800 the Spot Rate exceeds that level at Expiryimporter will Exercise its Put Option to sell AUD

By electing this type of structure over a Participatingand buy USD100000 at 07200

Forward outlined in 63 below you will be able tobull If the Spot Rate is more favourable than the improve the level of your Protection Rate or increase

Participation Rate (07950) say 08100 WUBS will your Participation Percentage to take greaterExercise its Call Option and the importer will be advantage of favourable movements in the Spot Rateobligated to buy USD100000 at 07950 or a combination of both

bull If the Spot Rate lies between the Protection Rate A Participating Collar always provides you with(07200) and the Participation Rate (07950) say protection at the Protection Rate07600 the importer will be able to let its Put

621 Example of a Participating CollarOption lapse and instead buy USD100000 at07600 (although there is no obligation to do so) The importer enters into a Participating Collar with

the following terms613 Benefits of a Collar

bull Protection Rate 07600The following are specific benefits of a Collar

bull Participation Rate 07950bull There is protection at all times with a known worst

bull Obligation Percentage 50case Exchange Rate (Protection Rate)


bull Expiry Date 6 months you the ability to participate in favourable movementsin the Spot Rate by allowing you to trade a portion of

622 Possible Outcomes at Expiry your Notional Amount at a favourable Spot Rate atExpirybull If the Spot Rate is less favourable than the

Protection Rate (07600) say 07200 the importer A Participating Forward is structured by entering intowill Exercise its Put Option to sell AUD and buy two concurrent optionsUSD100000 at 07600

i You buy a Put Option from WUBS at the Protectionbull If the Spot Rate is more favourable than the Rate

Protection Rate (07600) and less favourableii You sell a Call Option to WUBS at the Protectionthan the Participation Rate (07950) say 07800

Rate This Call Option will be for a percentage ofWUBS will Exercise its first Call Option and thethe Notional Amount of your Put Option outlinedimporter will be obligated to buy USD50000 atin (i) (ldquoObligation Percentagerdquo) determined by the07600 The importer will then be able to buy thelevel of the Protection Rate you nominateremaining USD50000 at 07800 (although there is

no obligation to do so) A Participating Forward always provides you withprotection at the Protection Ratebull If the Spot Rate is more favourable than the

Participation Rate (07950) say 08200 WUBS will631 Example of a Participating Forward

Exercise both of its Call Options and the importerThe importer enters into a Participating Forward withwill be obligated to buy USD50000 at 07600 andthe following termswill be obligated to buy the balance USD50000 at

07950 bull Protection Rate 07550

623 Benefits of a Participating Collar bull Obligation Percentage 50

The following are specific benefits of a bull Expiry Date 6 monthsParticipating Collar

632 Possible Outcomes at Expirybull There is protection at all times with a known

bull If the Spot Rate is less favourable than theProtection RateProtection Rate (07550) say 07200 the importer

bull The Protection Rate is more favourable than will Exercise its Put Option to sell AUD and buythe Protection Rate applicable to a comparable USD100000 at 07550Participating Forward

bull If the Spot Rate is more favourable the Protectionbull An ability to partially participate in favourable Rate (07550) say 07800 WUBS will Exercise its

Exchange Rate movements up to the level of the Call Option and the importer will be obligated toParticipation Rate buy USD50000 (USD100000 x 50) at 07550

The importer will then be able to buy the remaining624 Risks of a Participating CollarUSD 50000 at 07800 (although there is no

The following are specific risks of a obligation to do so)Participating Collar

633 Benefits of a Participating Forwardbull The Protection Rate will be less favourable than

The following are specific benefits of a Participatingthe Forward Exchange Rate applicable to aForwardcomparable FEC

bull There is protection at all times with a known worstbull If the Spot Rate at Expiry is more favourablecase Exchange Rate (Protection Rate)than the Protection Rate you will be obligated to

trade a portion of the Notional Amount (Notional bull An ability to partially participate in favourableAmount less Participation Percentage) at the less Exchange Rate movementsfavourable Protection Rate

634 Risks of a Participating Forwardbull If the Spot Rate at Expiry is more favourable thanthe Participation Rate you will be obligated to trade The following are specific risks of a Participatinga second amount the Participation Percentage at Forwardthe less favourable Participation Rate

bull The Protection Rate will be less favourable thanthe rate applicable to a comparable FEC63 Participating Forward

bull If the Spot Rate at Expiry is more favourable thanThe Participating Forward is a Structured Option whichthe Protection Rate you will be obligated to tradeallows you to protect against the risk that the Spota proportion of your Notional Amount at the lessRate will be less favourable than a nominated worstfavourable Protection Ratecase Exchange Rate (the Protection Rate) It also gives


64 Extendible Forward bull On the first Expiry Date the importer willbuy USD100000 at 07750 If the Spot Rate

The Extendible Forward is a Structured Option whichis less favourable than the Protection Rate

allows you to protect against the risk that the Spotthe importer will exercise the first option and

Rate will be less favourable than the nominatedif the Spot Rate is more favourable than the

Exchange Rate (the Protection Rate) whilst givingProtection Rate WUBS will exercise the second

you the potential to have additional protection for aoption

portion of your exposure which we refer to as thelsquoExtendible Amountrsquo for a further period of time bull On the second Expiry Date the importer willafter the first Expiry Date depending on the level of buy an additional USD100000 at 07750 If thethe Spot Rate on the first Expiry Date (or during a Spot Rate is less favourable than the ProtectionWindow) Rate the importer will exercise the third option

and if the Spot Rate is more favourable than theAn Extendible Forward is structured by entering into

Protection Rate WUBS will exercise the fourthfour concurrent options

optioni You buy a Put Option from WUBS giving you the

642 Benefits of an Extendible Forwardright to sell the Notional Amount to WUBS at theProtection Rate on the first Expiry Date The following are specific benefits of an

Extendible Forwardii You sell a corresponding Call Option to WUBSgiving WUBS the right to sell the Notional Amount bull There is protection out to the first Expiry Date at ato you at the Protection Rate on the first Expiry known worst case Protection RateDate

bull Protection is at an Exchange Rate enhanced to aiii You buy a Put Option giving you the right to comparable FEC for both the first Expiry Date and

purchase the Extendible Amount on the second the second Expiry DateExpiry Date at the Protection Rate The Extendible

643 Risks of an Extendible ForwardAmount will be the same value as or less than theNotional Amount This option has a Knock-In Rate The following are specific risks of an Extendiblewhich means that this option is contingent upon Forwardthe Spot Rate triggering the Knock-In Rate on the

bull If the Spot Rate is more favourable than thefirst Expiry Date (or during a Window)Protection Rate at the first Expiry Date you will be

iv You sell a Call Option to WUBS giving WUBS the obligated to trade at the less favourable Protectionright to sell the Extendible Amount to you on the Ratesecond Expiry Date at the Protection Rate The

bull You will have an obligation to trade at a potentiallyExtendible Amount will be the same value as theunfavourable Spot Rate on the second Expiry Dateamount in the third option above This option hasif the Knock-In Rate is triggered on the first Expirya Knock-In Rate which means that the optionDate (or during a Window)is contingent upon the Spot Rate triggering the

Knock-In Rate on the first Expiry Date (or during a bull If the Knock-In Rate is not triggered on the firstWindow) Expiry Date (or during a Window) you will not be

protected for the Extendible Amount641 Example of an Extendible Forward

65 Knock-In ImproverThe importer enters into an Extendible Forward withthe following terms A Knock-In Improver is a Structured Option which

allows you to protect against the risk that the Spotbull Protection Rate 07750Rate will be less favourable than the nominated

bull Knock-In Rate 07750 Exchange Rate (the Protection Rate) whilst giving youthe potential to take advantage of favourable currencybull First Expiry Date 6 monthsmovements or improve the Protection Rate should

bull Second Expiry Date 9 monthseither of the Knock-In Rates or the Knock-Out Rates

On the First Expiry Date and the Second not be triggeredExpiry Date

A Knock-In Improver is structured by entering intothree concurrent optionsa) If the Knock-In Rate has not been triggered

i You buy a Put Option from WUBS at the Protectionbull The importer will buy USD 100000 at 07750 onRatethe first Expiry Date There will be no obligations

on the second Expiry Date as the third and ii You sell a Call Option to WUBS giving WUBS thefourth options will cease to exist right to sell the Notional Amount to you at the

Protection Rate This Call Option has two Knock-Inb) If the Knock-In Rate has been triggered

Rates which means that the option is contingent


upon the Spot Rate triggering at least one of the 653 Benefits of a Knock-In ImproverKnock-In Rates prior to Expiry (or during a Window)

The following are specific benefits of aiii You buy an additional Put Option from WUBS giving Knock-In Improver

you the right to purchase the Notional Amountbull Protection at all times with a known worst case

from WUBS at the Protection Rate This PutExchange Rate

Option has two Knock-Out Rates which meansbull An ability to see the overall Protection Ratethat the option is contingent upon the Spot Rate

improve if the Spot Rate is less favourable than thetriggering at least one of the Knock-Out Rates priorProtection Rate and either the Knock-In Rate orto Expiry (or during a Window) We refer to thisKnock-Out Rate is not triggeredoption as the ldquoimprovingrdquo option because if (i)

the Knock-Out Rates have not been triggered prior bull An ability to transact at the market Spot Rate atto Expiry (or during a Window) and (ii) the Spot Expiry (should either the Knock-In Rate or theRate is less favourable than the Protection Rate at Knock-Out Rate not be triggered)Expiry this Put Option is closed out at market TheIn-The-Money (ITM) value from this Put Option is 654 Risks of a Knock-In Improverthen used to improve the overall Protection Rate at

The following are specific risks of aExpiry of the first Put Option

Knock-In Improver

651 Example of a Knock-In Improver bull An ability to achieve a Protection Rate that issignificantly enhanced than achievable under aThe importer enters into a Knock-In Improver withForward Exchange Contractthe following terms

bull The Protection Rate will be less favourable thanbull Protection Rate 07600the Exchange Rate applicable to a comparable

bull Notional Amount USD 100000 Forward Exchange Contractbull Knock-In Rates 08000 and 07100 bull Participation in favourable Exchange Rate

movements is capped at the Knock-In Ratebull Knock-Out Rates 08000 and 07100

bull If either the Knock-In Rate or Knock-Out Ratebull Expiry Date 6 monthsis triggered you will be obligated to trade at a

652 Possible Outcomes at Expiry potentially unfavourable Protection Rate

a) If the Knock-In and the Knock-Out Rates have not 66 Knock-Inbeen triggered

A Knock-In is a Structured Option which allows youbull If the Spot Rate is more favourable than to protect against the risk that the Spot Rate will be

the Protection Rate (07600) say 07800 the less favourable than your nominated Exchange Rateimporter is able to buy USD 100000 at 07800 (the Protection Rate) whilst giving you the potential(although there is no obligation to do so) to take advantage of favourable currency movements

to the level of the Knock-In Rate If the Knock-Inbull If the Spot Rate is less favourable than theRate is triggered at any time before Expiry (or duringProtection Rate (07600) say 07200 thea Window) you will be obligated to trade at theimporter will buy USD 100000 at 08047Protection Rate on ExpiryProtection Rate (07600) adjusted to include the

ITM amount from the ldquoimprovingrdquo third option A Knock-In is structured by entering into twothat was closed out at 07200 (this adjustment concurrent optionsis set out in your term sheet reflecting where

i You buy a Put Option from WUBS at the Protectionthe Spot Rate was when the third option wasRateclosed out)

ii You sell a Call Option to WUBS at the Protectionb) If either the Knock-In Rate (08000) or the

Rate This Call Option has a Knock-In Rate andKnock-Out Rate (07100) has been triggered

will only come into existence if the Spot Ratebull If the Spot Rate is more favourable than the triggers the Knock-In Rate before Expiry (or during

Protection Rate (07600) say 08200 WUBS will a Window)Exercise its Call Option and the importer will be

661 Example of a Knock-Inobligated to buy USD 100000 at 07600

The importer enters into a Knock-In with thebull If the Spot Rate is less favourable than thefollowing termsProtection Rate (07600) say 07000 the

importer will buy USD 100000 at 07600 bull Protection Rate 07600

bull Knock-In Rate 08025


bull Expiry Date 6 months A Knock-In Collar is structured by entering into twoconcurrent options

662 Possible Outcomes at Expiryi You buy a Put Option from WUBS at the Protection

a) If the Knock-In Rate (08025) has not Ratebeen triggered

ii You sell a Call Option to WUBS at the Participationbull If the Spot Rate is less favourable than the Rate This Call Option has a Knock-In Rate and will

Protection Rate (07600) say 07200 the only come into existence if the Spot Rate triggersimporter will Exercise its Put Option to sell AUD the Knock-In Rate before Expiry (or during aand buy USD 100000 at 07600 Window)

bull If the Spot Rate is more favourable than the 671 Example of a Knock-In CollarProtection Rate (07600) say 07900 the

The importer enters into a Knock-In Collar with theimporter will be able to buy USD at the Spotfollowing termsRate (07900) at Expiry (although there is no

obligation to do so) bull Protection Rate 07500

b) If the Knock-In Rate (08025) has been triggered bull Knock-In Rate 08000

bull If the Spot Rate is more favourable than the bull Participation Rate 07750Protection Rate (07600) say 08000 WUBS will

bull Expiry Date 6 monthsExercise its Call Option and the importer will beobligated to buy USD 100000 at 07600 672 Possible Outcomes at Expiry

bull If the Spot Rate is less favourable than the a) If the Knock-In Rate (08000) has notProtection Rate of 07600 say 07200 the been triggeredimporter will Exercise its Put Option to sell AUD

bull If the Spot Rate is less favourable than theand buy USD 100000 at 07600Protection Rate (07500) say 07200 the

663 Benefits of a Knock-In importer will Exercise its Put Option to sell AUDand buy USD100000 at 07500The following are specific benefits of a Knock-In

bull If the Spot Rate is more favourable than thebull Protection at all times with a known worst caseProtection Rate (07500) say 07600 theExchange Rate (Protection Rate)importer will be able to buy USD100000 at

bull An ability to participate in favourable Exchange 07600 (although there is no obligation to do so)Rate movements up to the level of the

b) If the Knock-In Rate (08000) has been triggeredKnock-In Rate

bull If the Spot Rate is less favourable than the664 Risks of a Knock-InProtection Rate (07500) say 07200 the

The following are specific risks of a Knock-In importer will Exercise its Put Option to sell AUDand buy USD100000 at 07500bull Participation in favourable Exchange Rate

movements is capped at the Knock-In Rate bull If the Spot Rate is more favourable than theParticipation Rate (07750) say 07900 WUBSbull The Protection Rate will be less favourable thanwill Exercise its Call Option and the importerthe comparable Forward Exchange Rate wouldwill be obligated to buy USD100000 at 07750have been at the Trade Date

bull If the Spot Rate lies between the Protectionbull If the Spot Rate triggers the Knock-In Rate youRate (07500) and the Participation Ratewill be obligated to trade at the Protection Rate(07750) say 07600 the importer will be able towhich may be less favourable than the Spot Ratebuy USD100000 at 07600 (although there is noat Expiryobligation to do so)

67 Knock-In Collar673 Benefits of a Knock-In Collar

A Knock-In Collar is a Structured Option which allowsThe following are specific benefits of ayou to protect against the risk that the Spot Rate willKnock-In Collarbe less favourable than a nominated Exchange Rate

(the Protection Rate) whilst giving you the potential bull Protection at all times with a known worst caseto take advantage of favourable currency movements Exchange Rateto the level of a Knock-In Rate If the Knock-In Rate is

bull An ability to participate in favourable Exchangetriggered before Expiry (or during a Window) you areRate movements to the level of the Knock-Inknocked in to a collar structure


Rate When the Knock-In Rate has been triggered 682 Possible outcomes at Expiryparticipation in favourable movements up to the

a) If the Knock-In Rate (08075) has notParticipation Rate remains possiblebeen triggered

674 Risks of a Knock-In Collarbull If the Spot Rate is less favourable than the

The following are specific risks of a Knock-In Collar Protection Rate (07625) say 07200 theimporter will Exercise its Put Option to sell AUD

bull The Protection Rate will be less favourable thanand buy USD 100000 at 07625

the comparable Forward Exchange Rate and thecomparable standard Knock-In structure bull If the Spot Rate is more favourable than the

Protection Rate (07625) say 07800 WUBS willbull Participation in favourable movements in the

Exercise its Call Option and the importer will beExchange Rate is capped to the level of the

obligated to buy the Obligation Percentage ofParticipation Rate

the Notional Amount USD 50000 at 07625bull If the Spot Rate triggers the Knock-In Rate before The importer will then be able to buy the

Expiry (or during a Window) and the Spot Rate remaining USD at 07800 (although there is nois more favourable than the Participation Rate obligation to do so)at Expiry you will be obligated to trade at the

b) If the Knock-In Rate (08075) has been triggeredParticipation Rate

bull If the Spot Rate is less favourable than the68 Knock-In Participating Forward

Protection Rate (07625) say 07200 theA Knock-In Participating Forward is a Structured importer will Exercise its Put Option to sell AUDOption which allows you to protect against the risk and buy USD 100000 at 07625that the Spot Rate will be less favourable than a

bull If the Spot Rate is more favourable than thenominated Exchange Rate (the Protection Rate) It

Protection Rate (07625) say 07800 WUBS willalso gives you the ability to participate in favourable

Exercise its Call Option and the importer will bemovements in the Spot Rate on a percentage of your

obligated to buy USD 100000 at 07625Notional Amount provided that a Knock-In Rate is nottriggered during the Tenor of the structure (or during a 683 Benefits of a Knock-In Participating ForwardWindow)

The following are specific benefits of a Knock-InA Knock-In Participating Forward is structured by Participating Forwardentering into three concurrent options

bull There is protection at all times with a knowni You buy a Put Option from WUBS at the Protection Protection Rate

Ratebull An ability to partially participate in favourable

ii You sell a Call Option to WUBS at the Protection Exchange Rate movements provided the Knock-InRate The Call Option that you sell to WUBS will be Rate has not been triggeredfor a percentage of the Notional Amount of your

bull The Protection Rate andor the ObligationPut Option outlined in (i) above (the ObligationPercentage are more favourable than the ExchangePercentage)Rates applicable to a comparable Participating

iii You sell a Call Option to WUBS at the Protection ForwardRate This Call Option has a Knock-In Rate and

684 Risks of a Knock-In Participating Forwardwill only come into existence if the Spot Ratetriggers the Knock-In Rate before Expiry (or during The following are specific risks of a Knock-Ina Window) The amount of this option will be equal Participating Forwardto or less than the Notional Amount of the option

bull The Protection Rate will be less favourable thanoutlined in (i) above less the Obligation Percentagethe Exchange Rate applicable to a comparable FECof the option outlined in (ii) aboveeven when applying the Knock-In Rate

681 Example of a Knock-In Participating Forwardbull Part of your exposure must be traded at the

The importer enters into a Knock-In Participating Protection Rate at Expiry If the Spot Rate at ExpiryForward with the following terms is more favourable than the Protection Rate you

will be obligated to trade at the less favourablebull Protection Rate 07625Protection Rate

bull Knock-In Rate 08075bull If the Spot Rate triggers the Knock-In Rate before

bull Obligation Percentage 50 Expiry (or during a Window) and the Spot Rate ismore favourable than the Protection Rate you willbull Expiry Date 6 monthsbe obligated to trade the full Notional Amount ofthe structure at the Protection Rate


69 Knock-In Reset b) If the Knock-InOut Rate (08025) hasbeen triggered

The Knock-In Reset is a Structured Option whichallows you to protect against the risk that the Spot bull If the Spot Rate is less favourable than theRate will be less favourable than a nominated Reset Rate (07700) say 07400 the importerExchange Rate (the Protection Rate) It also gives will Exercise its second Put Option to sell AUDyou the ability to participate in favourable movements and buy USD100000 at the Reset Rate ofin the Spot Rate provided that a Knock-In Rate is 07700not triggered If the Knock-In Rate is triggered

bull If the Spot Rate is more favourable than thethen you must deal at an agreed rate (the Reset

Reset Rate (07700) say 07800 WUBS willRate) which would be similar to the Exchange

exercise its Call Option and the importer will beRate of a comparable FEC The Reset Rate will be

obligated to buy USD 100000 at the Reset Ratemore favourable than the Protection Rate and less

of 07700favourable than the Knock-In Rate

693 Benefits of a Knock-In ResetA Knock-In Reset is structured by entering into threeconcurrent options The following are specific benefits of a

Knock-In Reseti You buy a Put Option from WUBS at the ProtectionRate This Put Option has a Knock-Out Rate and bull There is protection at all times with a knownwill cease to exist if the Spot Rate triggers the Protection RateKnock-Out Rate before Expiry (or during a Window)

bull An ability to participate in favourable Exchangeii You buy a Put Option from WUBS at the Reset Rate movements on the full Notional Amount

Rate This Put Option has a Knock-In Rate and will provided the Knock-InOut Rate has not beenonly come into existence if the Spot Rate triggers triggeredthe Knock-In Rate before Expiry (or during a

bull If the Knock-InOut Rate is triggered you willWindow)be knocked in to the Reset Rate that is more

iii You sell a Call Option to WUBS at the Reset Rate favourable to you than the Protection Rate availableThis Call Option has a Knock-In Rate and will only for a standard Knock-In structurecome into existence if the Spot Rate triggers the

694 Risks of a Knock-In ResetKnock-In Rate before Expiry (or during a Window)

The following are specific risks of a Knock-In ResetAll options will have the same Notional Amount andthe Knock-Out Rate and the Knock-In Rate will be at bull The Protection Rate will be less favourable thanthe same Exchange Rate the Exchange Rate applicable to a comparable FEC

and a comparable standard Knock-In691 Example of a Knock-In Resetbull If the Knock-InOut Rate is triggered you will beThe importer enters into a Knock-In Reset with the

obligated to trade the full Notional Amount at thefollowing termsReset Rate that could be less favourable to you

bull Protection Rate 07500 than the Spot Rate at Expiry

bull Reset Rate 07700 610 Knock-In Convertiblebull Knock-In Rate 08025 The Knock-In Convertible is a Structured Option

which allows you to protect against the risk that thebull Knock-Out Rate 08025Spot Rate will be less favourable than a nominated

bull Expiry Date 6 monthsExchange Rate (the Protection Rate) whilst givingyou the potential to take advantage of favourable692 Possible Outcomes at Expirycurrency movements to the level of a Knock-In Rate

a) If the Knock-InOut Rate (08025) has not If the Knock-In Rate is triggered before Expiry (orbeen triggered during a Window) you will be obligated to trade at

the Protection Rate on Expiry unless a Knock-Outbull If the Spot Rate is less favourable than theRate has also been triggered If the Knock-Out Rate isProtection Rate (07500) say 07200 the importertriggered you are left with a Vanilla Option giving youwill Exercise its first Put Option to sell AUD andthe right but no obligation to trade at the Protectionbuy USD 100000 at 07500Rate A PDS for Vanilla Options issued by WUBS dated

bull If the Spot Rate is more favourable than the 16th January 2017 is located at the WUBS complianceProtection Rate (07500) say 07900 the importer webpage as set out in section 21 abovewill be able to buy USD 100000 at 07900

A Knock-In Convertible is structured by entering into(although there is no obligation to do so)two concurrent options


i You buy a Put Option from WUBS at the Protection 6103 Benefits of a Knock-In ConvertibleRate

The following are specific benefits of aii You sell a Call Option to WUBS at the Protection Knock-In Convertible

Rate This Call Option has a Knock-In Rate and abull Protection at all time with a known worst case

Knock-Out Rate which will obligate you to tradeExchange Rate (Protection Rate)

the Notional Amount at the Protection Rate thatbull An ability to participate in favourable currencyis contingent upon the Spot Rate triggering the

movementsKnock-In Rate prior to Expiry that will cease to existif the Spot Rate triggers the Knock-Out Rate prior to bull If the Knock-Out Rate has been triggered thenExpiry (or during a Window) participation in favourable movements is possible

to any level6101 Example of a Knock-In Convertible

6104 Risks of a Knock-In ConvertibleThe importer enters into a Knock-In Convertible withthe following terms The following are specific risks of a

Knock-In Convertiblebull Protection Rate 07600

bull If the Knock-Out Rate has not been triggeredbull Knock-In Rate 08000participation in favourable movements is capped at

bull Knock-Out Rate 07200the Knock-In Rate

bull Expiry Date 6 monthsbull If the Knock-Out Rate has not been triggered and

the Spot Rate triggers the Knock-In Rate before6102 Possible Outcomes at ExpiryExpiry (or during a Window) and the Spot Rate is

a) If the Knock-Out Rate (07200) has not been more favourable than the Protection Rate at Expirytriggered and the Knock-In Rate (08000) you will be obligated to trade at the less favourablehas been triggered Protection Rate

bull If the Spot Rate is less favourable than the 611 Knock-Out ParticipatingProtection Rate (07600) say 07300 the

The Knock-Out Participating is a Structured Optionimporter will Exercise its Put Option to sell AUDwhich allows you to protect against the risk that theand buy USD100000 at 07600Spot Rate will be less favourable than a nominated

bull If the Spot Rate is more favourable than the Exchange Rate (the Protection Rate) It also givesProtection Rate (07600) say 07800 WUBS will you the ability to participate in favourable movementsExercise its Call Option and the importer will be in the Spot Rate on a percentage of your Notionalobligated to buy USD100000 at the Protection Amount provided that a Knock-Out Rate has beenRate (07600) triggered during the Tenor of the structure

b) If the Knock-Out Rate has not been triggered and A Knock-Out Participating is constructed by enteringthe Knock-In Rate has not been triggered into three concurrent options

bull If the Spot Rate is less favourable than the i You buy a Put Option from WUBS at the ProtectionProtection Rate (07600) say 07300 the Rateimporter will Exercise its Put Option to sell AUD

ii You sell a Call Option to WUBS at the Protectionand buy USD100000 at 07600

Rate This Call Option will be for a percentage ofbull If the Spot Rate is more favourable than the the Notional Amount of your Put Option outlined in

Protection Rate (07600) say 07800 the (i) (the Obligation Percentage)importer will be able to buy USD100000 at

iii You sell a Call Option to WUBS at the Protection07800 (although there is no obligation to do so)

Rate This Call Option has a Knock-Out Rate whichmeans it will cease to exist if the Spot Rate triggersc) If the Knock-Out Rate has been triggeredthe Knock-Out Rate before Expiry (or during a

bull If the Spot Rate is less favourable than the Window) The Notional Amount for this Call OptionProtection Rate (07600) say 07300 the will be equal to the Notional Amount of the Putimporter will Exercise its Put Option to sell AUD Option outlined in (i) less the Notional Amountand buy USD100000 at 07600 of the Call Option outlined in (ii) (calculated by

applying the Obligation Percentage)bull If the Spot Rate is more favourable than theProtection Rate (07600) say 07800 the

6111 Example of a Knock-Out Participatingimporter will be able to buy USD100000 at07800 (although there is no obligation to do so) The importer enters into a Knock-Out Participating

with the following terms

bull Protection Rate 07625


bull Knock-Out Rate 07625 the Obligation Percentage at the less favourableProtection Rate

bull Obligation Percentage 50

612 Knock-Out Resetbull Expiry Date 6 months

The Knock-Out Reset is a Structured Option that gives6112 Possible Outcomes at Expiry

you the benefit of achieving an enhanced ExchangeRate (the Enhanced Rate) compared to the equivalenta) If the Knock-Out Rate has not been triggeredForward Exchange Rate provided that the Spot Rate

bull If the Spot Rate is more favourable than the remains within a specified range for the entire Tenor ofProtection Rate (07625) say 07800 WUBS will the structure A Knock-Out Reset will always provideExercise its two Call Options and the importer you with a guaranteed worst case Exchange Ratewill be obligated to buy USD100000 at 07625 allowing you to protect against the risk that the Spot

Rate is less favourable at Expiry of the contractbull If the Spot Rate is less favourable than theProtection Rate (07625) say 07450 the A Knock-Out Reset is structured by entering into fourimporter will Exercise its Put Option to sell AUD concurrent optionsand buy USD100000 at 07625

i You buy a Put Option from WUBS at the Enhancedb) If the Knock-Out Rate has been triggered Rate This Put Option has double Knock-Out Rates

which means this option ceases to exist if eitherbull If the Spot Rate is less favourable than theKnock-Out Rate is triggered before Expiry (or duringProtection Rate (07625) say 07200 thea Window)importer will be able to buy USD100000

at 07625 ii You sell a Call Option to WUBS at the EnhancedRate This Call Option has double Knock-Out Ratesbull If the Spot Rate is more favourable than thewhich means this option ceases to exist if eitherProtection Rate (07625) say 07800 WUBS willKnock-Out Rate is triggered before Expiry (or duringexercise its Call Option outlined in (ii) above) anda Window)the importer will be obligated to buy USD50000

at 07625 The importer may also buy the iii You buy a Put Option from WUBS at the Resetremaining USD50000 at 07800 (although there Rate This Put Option has double Knock-In Ratesis no obligation to do so) which means this option only exists if either

Knock-In Rate is triggered before Expiry (or during a6113 Benefits of a Knock-Out Participating

Window)The following are specific benefits of a

iv You sell a Call Option to WUBS at the Reset RateKnock-Out Participating

This Call Option has double Knock-In Rates whichbull Protection at all times with a known worst case means this option only exists if either Knock-In Rate

Exchange Rate is triggered before Expiry (or during a Window)

bull An ability to participate in favourable Exchange 6121 Example of a Knock-Out ResetRate movements on a portion of your exposure if

The importer enters into a Knock-Out Reset with thethe Knock-Out Rate is triggeredfollowing terms

bull The Protection Rate andor the Obligationbull Enhanced Rate 07900Percentage are more favourable than the Exchange

Rates applicable to a comparable standard bull Reset Rate 07500Participating Forward

bull Knock-InOut Rates 08050 and 072006114 Risks of a Knock-Out Participating bull Expiry Date 6 months

The following are specific risks of a6122 Possible outcomes at ExpiryKnock-Out Participating

a) If the Spot Rate is more favourable the Enhancedbull The Protection Rate will be less favourableRate (say 08000) and the higher Knock-InOutthan the Exchange Rate applicable to aRate (08050) or the lower Knock-InOut Ratecomparable FEC(07200) has not been triggered

bull If the Spot Rate at Expiry is more favourable thanbull WUBS will Exercise its Call Option and thethe Protection Rate and the Knock-Out Rate has

importer will be obligated to sell AUD and buynot been triggered you will be obligated to trade atUSD100000 at 07900the less favourable Protection Rate

bull If the Spot Rate at Expiry is more favourable b) If the Spot Rate is less favourable than thethan the Protection Rate and the Knock-Out Rate Enhanced Rate (say 07400) and the higher Knock-has been triggered you will be obligated to trade InOut Rate (08050) or the lower Knock-InOut


Rate (07200) has not been triggered 6132 Possible outcomes at Expiry

bull The importer may sell AUD and buy a) If the Knock-Out Rate (07575) has notUSD100000 at the Enhanced Rate (07900) been triggered

c) If the higher Knock-InOut Rate (08050) or the bull If the Spot Rate is less favourable than thelower Knock-InOut Rate (07200) has been Protection Rate (07575) say 07350 thetriggered importer will have the right not the obligation to

buy USD100000 at 07575bull the importer will be obligated to sell AUD and

buy USD100000 at the Reset Rate (07500) bull If the Spot Rate is more favourable than theirrespective of where the Spot Rate is at Expiry Protection Rate (07575) say 07800 WUBS will

exercise its Call Option and the importer will be6123 Benefits of a Knock-Out Reset obligated to buy USD100000 at 07575

The following are specific benefits of ab) If the Knock-Out Rate (07575) has been triggered

Knock-Out Resetbull If the Spot Rate is less favourable than the

bull Protection at all times with a known worst caseProtection Rate (07575) say 07200 the

Exchange Rate (Protection Rate)importer will have the right but not the

bull Ability to achieve an Enhanced Rate over the obligation to buy USD100000 at 07575comparative Forward Exchange Rate if the Knock-

bull If the Spot Rate is more favourable than theInOut Rate has not been triggered

Protection Rate (07575) say 07800 theimporter may buy USD at 07800 (although6124 Risks of a Knock-Out Resetthere is no obligation to do so)

The following are specific risks of a Knock-Out Reset6133 Benefits of a Knock-Out Convertiblebull If either Knock-InOut Rate is triggered you will be

trading at the Reset Rate that is less favourable The following are specific benefits of athan the comparative Forward Exchange Rate Knock-Out Convertible

bull There is potential to be transacting at an Exchange bull Protection at all times with a known worst caseRate that is less favourable than the Spot Rate Exchange Rateat Expiry

bull An ability to participate in favourable ExchangeRate movements if the Knock-Out Rate has613 Knock-Out Convertiblebeen triggered

The Knock-Out Convertible is a Structured Optionwhich allows you to protect against the risk that the 6134 Risks of a Knock-Out ConvertibleSpot Rate will be less favourable than a nominated

The following are specific risks of aExchange Rate (the Protection Rate) It also gives

Knock-Out Convertibleyou the ability to participate in favourable movementsin the Spot Rate provided that a Knock-Out Rate is bull The Protection Rate will be less favourabletriggered during the Tenor of the structure than the Exchange Rate applicable to a

comparable FECA Knock-Out Convertible is structured by entering intotwo concurrent options bull If the Spot Rate at Expiry is more favourable than

the Protection Rate and the Knock-Out Rate hasi You buy a Put Option from WUBS at the Protection

not been triggered you will be obligated to trade atRate

the less favourable Protection Rateii You sell a Call Option to WUBS at the Protection

Rate This Call Option has a Knock-Out Rate which7 CREDIT REQUIREMENTS FOR Ameans this option ceases to exist if the Knock-

STRUCTURED OPTIONOut Rate is triggered before Expiry (or during aWindow)

When you enter into a Structured Option with WUBS youimmediately create a liability to us (at the Trade Date not6131 Example of a Knock-Out Convertiblethe Expiry Date) which can increase with unfavourable

The importer enters into a Knock-Out Convertiblemarket movements Over the life of a Structured Option as

with the following termsthe Spot Rate moves the Marked to Market value of the

bull Protection Rate 07575 contract may be In-The-Money (ITM) Out-Of-The-Money(OTM) or At-The-Money (ATM) That is if the contractbull Knock-Out Rate 07575had to be cancelled at any time it would result in a gain

bull Expiry Date 6 months (if ITM) a loss (if OTM) or breakeven (if ATM) To managethis Market Risk WUBS may initially secure the Structured


Option contract by requiring you to pay an Initial Margin A Margin Call is an amount of money that you areDuring the Tenor of the Structured Option contract WUBS required to pay to WUBS to reduce its risk exposuremay also require you to pay a Margin Call to further secure to a level acceptable to WUBS If a Margin Call isyour Structured Options contracts and other FECs you required WUBS will advise you immediately In thehold with us Alternatively WUBS may apply a Credit Limit absence of default by you of your payment obligationsagainst the Market Risk or a combination of a Credit Limit to WUBS all Margin Call amounts will be applied toInitial Margin andor Margin Call the Settlement of your Structured Options contracts if

applicable A Margin Call is not a deposit and WUBSAll payments made in respect of your Structured Option as

does not pay interest on a Margin Calldescribed in this Section 7 will be applied to satisfy yourpayment obligation on the Expiry Date if applicable Payment of a Margin Call must be made within

two (2) Business Days of WUBSrsquo request If you fail71 Initial Margins to pay a Margin Call WUBS may at its discretion

choose to close some or all of your StructuredAn Initial Margin is an amount of money that isOptions (or any FECs if applicable) by applyingpayable to WUBS calculated as a percentage of thethe prevailing market foreign Exchange Rate InNotional Amount of your Structured Option If you aresuch circumstances you will be liable to WUBSrequired to pay an Initial Margin we will notify you atfor all costs associated with terminating thethe time you enter into the Structured Optionrelevant contracts

An Initial Margin is taken to secure WUBSrsquos potentialrisk exposure resulting from adverse currency 73 Credit Limitsmovements that negatively impact the value of the

WUBS may choose to waive the requirement of anfunds you may be required to purchase from us An

Initial Margin (or subsequent Margin Call) by allocatingInitial Margin is a prepayment by you of your potential

a Credit Limit A Credit Limit is dependent upon yourpayment obligations on the Expiry Date and will be

credit historyrating strength of financial statementsapplied to the Settlement of your Structured Option if

as well as other factors determined at WUBSrsquo soleapplicable An Initial Margin is not a deposit and WUBS

discretion WUBS may review and amend your Creditdoes not pay interest on an Initial Margin

Limit at any timeWUBS may determine the Initial Margin percentage at

WUBS may apply a Credit Limit against each individualits discretion Factors that influence this include

Structured Option contract that you enter into orbull your credit standing as assessed by WUBS against your entire portfolio of Structured Options

contracts or FECs (where applicable) Please referbull Currency Pair and amount you are transactingto the WUBS Terms and Conditions for further(more exotic currencies or those currencies thatinformation on Credit Limitsare not commonly exchanged may require a larger

Initial Margin) 74 Client Money

bull the Expiry Date of your Structured Option (the longer All Initial Margin and Margin Call funds are held by usthe Expiry Date from the Trade Date the higher the as Client Money in accordance with the AustralianInitial Margin) Client Money Rules

bull foreign exchange market Volatility (Currency Pairs Consistent with the Australian Client Money Rulesthat are exhibiting high Volatility or lack of Liquidity Client Money will be held separately from our moneymay require a higher Initial Margin) in one or more separate trust account(s) maintained

by us with an Australian Authorised Deposit-takingbull external economic conditions (in times of economicInstitution (ADI) however we may withdrawdownturn WUBS may require a higher Initialdeduct or apply Initial Margin and Margin Call funds inMargin) andconnection with margining guaranteeing securing

bull the frequency with which you transact with WUBS transferring or settling dealings in Foreign Exchange(where your credit history with WUBS dictates the Contracts by us including dealings on behalf ofInitial Margin required) other Clients

We may also withdraw or deduct Initial Margin and72 Margin Calls Margin Call funds where money is due and owing to

us (for instance on Settlement or in the event that youWe will monitor the Marked to Market value of alldefault on any of your obligations to us and we closeof your foreign exchange exposures with us on anout your Structured Option(s) andor FEC(s) and incur aongoing basis Should your Structured Options(s)cost in doing so) or for any other reason authorised by(and any FECs you may hold with us) move OTM inthe Australian Client Money Rulesexcess of the Initial Margin or your Credit Limit or a

combination of both WUBS may secure the resulting This means that WUBS may make payments out of theincreased risk through a Margin Call Segregated Account in the following circumstances


bull paying WUBS money to which it is entitled Once within two (2) Business Days of the Trade Datemoney withdrawn to pay WUBS is paid to WUBS

83 Exchange Ratethat money is WUBSrsquos own money (and is notheld for you) WUBS sets its Exchange Rate to you by

applying a Retail Mark Up (Mark Up) to thebull making a payment to or in accordance with theInterbank Exchange Rate that it receives from itswritten direction or Instruction of a person entitledHedging Counterparties The Mark Up is how WUBSto the moneymakes a profit WUBS determines this Mark Up by

bull making a payment that is otherwise authorised by taking account of a number of factors includinglaw or pursuant to the operating rules of licensed

bull the size of the transaction measured by Notionalmarket andAmount where the smaller the Notional Amount

bull as otherwise permitted under the WUBS Terms the larger the Mark Up may beand Conditions or any other agreement put in place

bull the Currency Pair where the less Liquidity in the pairbetween WUBS and youthe greater the Mark Up may be

Refer to the WUBS Terms and Conditions for furtherbull Market Volatility where high Volatility may result ininformation on how we deal with Client Money

an increased Mark Up75 Client Money Risk

bull the Time Zone you choose to trade in where ifWUBS practice of placing Client Money in a trading on public holidays or weekends may seeSegregated Account will not provide you with absolute increased Mark Ups andprotection in all circumstances

bull the frequency with which you trade with WUBSwhere the more frequently you transact the MarkUp may be reduced8 COST OF A STRUCTURED OPTION

84 Transaction Fees81 Interest

You may be charged some transaction fees uponBecause WUBS does not typically pay interest to you

Settlement or delivery of a Structured Option atfor amounts that we hold as Initial Margin or Margin

Expiry if this is carried out via a Telegraphic TransferCall there will be an interest cost to you if you are

or Draft Transaction fees for Telegraphic Transfersrequired to pay an Initial Margin or a Margin Call That

and Drafts are in addition to the costs detailed abovecost will be equivalent to the interest that you would

More information on Telegraphic Transfers or Draftshave otherwise earned if you had held those amounts

is available in ldquoWUBS Foreign Exchange and Draftsin your own bank account

Transactions PDSrdquo dated 16th January 2017 locatedat WUBS Compliance amp Legal webpage as set out in82 Premiumsection 21 above

WUBS in consultation with you sets the variablesWUBS will advise you of any transaction fees beforeassociated with any Structured Option at particularyou establish a trading relationship WUBS may varylevels in order to create a ldquoNo Premiumrdquo costthese fees from time to time and will provide you withstructure When setting those variables WUBS takesnotice prior to doing sointo account a variety of factors similar to those used

in calculating Premiums In addition to the fees charged by WUBS for sendingpayments by Telegraphic Transfer any Correspondentbull The Notional Amount the Tenor and any other ratesBank Intermediary Bank or Beneficiary Bank whichapplicable to a particular structure (Participationfacilitates the sending or payment of a TelegraphicRate Knock-InOut Rates etc)Transfer may impose their own additional fees or

bull Current market foreign Exchange Rates and the charges which may be deducted from the amountinterest rates of the countries whose currencies are paid to you or your beneficiarybeing contracted

bull Where a ldquoNo Premiumrdquo structure is created there9 BENEFITS OF STRUCTURED OPTIONSis no up-front Premium payable for a Structured

Option If however you wish to nominate an We have described the particular benefits that attach toimproved Protection Rate or any other Exchange each Structured Option that WUBS provides in SectionRate or variable associated with a particular 6 ldquoWUBS Structured Optionsrdquo above In addition theStructured Option an up-front non-refundable following are general key benefits of Structured OptionsPremium may be payable WUBS will calculate

bull Structured Options help you manage the risk inherent inthe amount of the Premium and advise you of thecurrency markets by predetermining the Exchange Rateamount before you enter into the transaction Whereand Value Date on which you will purchase or sell a givenapplicable Premiums must be paid in cleared fundsamount of foreign currency against another currency


This can provide you with protection against unfavourable bull Cooling-off There is no cooling-off period This meansforeign Exchange Rate movements between the Trade that once your Instruction to enter into a StructuredDate and the Value Date This may also assist you in Option has been accepted by WUBS you are unable tomanaging your cash flow by negating the uncertainty cancel your Structured Option without incurring a costassociated with Exchange Rate fluctuations for the

bull Default Risk If you fail to pay an Initial Margin or a Margincertainty of a specified cash flow

Call in accordance with the Terms and Conditions or fail tobull Structured Options are flexible Value Dates and Notional provide Settlement on the Value Date we may terminate

Amounts can be tailored to meet your requirements your Structured Option In the event that we terminateYou also have additional flexibility to participate in certain your Structured Option you will be liable for all costs thatfavourable Exchange Rate movements and may be able we incur including the payment of any OTM position thatto achieve an enhanced Exchange Rate comparable to exists with respect to your Structured Optionthe equivalent Forward Exchange Rate depending on the

bull Conflicts of interest WUBS enters into transactions withStructured Option that you enter

a number of different Clients and Hedging Counterpartiesthat may be in conflict with your interests under theStructured Option(s) you have entered into with us WUBS10 RISKS OF STRUCTURED OPTIONSis not required to prioritise your interests when dealing in

We have described the particular risks that attach to each Structured Options with youStructured Option that WUBS provides in Section 6 ldquoWUBSStructured Optionsrdquo above In addition the following are

11 ORDERS INSTRUCTIONS CONFIRMATIONSgeneral risks of Structured OptionsAND TELEPHONE CONVERSATIONS

bull Market Volatility The foreign exchange markets in whichWUBS operates are OTC and can change rapidly These The commercial terms of a particular Structured Option willmarkets are speculative and volatile with the risk that be agreed and binding from the time your Instructions areprices will move quickly When this occurs the value of received and accepted by us This may occur verbally overyour Structured Option may be significantly less that the phone electronically or in any other manner set out inthan when you entered into the contract WUBS cannot our Terms and Conditionsguarantee that you will not make losses (where your

Shortly after entering into a Structured Option we will sendStructured Option is OTM) or that any unrealised profityou a Confirmation outlining the agreed commercial termsor losses will remain unchanged for the Tenor of theof the transaction This Confirmation is intended to reflectStructured Option You need to monitor your Structuredthe transaction that you have entered into with WUBS ItOptions with WUBS carefully providing WUBS withis important that you check the Confirmation to make sureInstructions before unacceptable losses occurthat it accurately records the terms of the transaction You

bull Issuer Risk When you enter into a Structured Option should note however that there is no cooling-off periodyou are relying on WUBSrsquos financial ability as Issuer to with respect to Structured Options and that you will bebe able to perform its obligation to you As a result you bound once your original Instruction has been acceptedare exposed to the risk that WUBS becomes insolvent by WUBS regardless of whether you sign or acknowledgeand is unable to meet its obligations to you under a a Confirmation In the event that there is a discrepancyStructured Option To assess our financial ability to between your understanding of the Structured Option andmeet our obligations to you you can obtain a copy of the Confirmation it is important that you raise this withour financial statements free of charge by emailing WUBS as a matter of urgencywubscustomerserviceaustraliawesternunioncom

Conversations with our dealing room are recorded inbull Counterparty Risk There is also a risk that the Hedging accordance with standard market practice We do this

Counterparties with whom WUBS contracts to mitigate to ensure that we have complete records of the detailsits exposure when acting as principal to the Structured of all transactions Recorded conversations are retainedOptions (by taking related offsetting or mitigating for a limited time and are usually used when there is apositions) may not be able to meet their contractual dispute and for staff monitoring purposes If you do notobligations to WUBS This means that WUBS could be wish to be recorded you will need to inform your WUBSexposed to the insolvency of its Hedging Counterparties Representative WUBS will not enter into any transactionand to defaults by Hedging Counterparties If a Hedging over the telephone unless the conversation is recordedCounterparty is insolvent or defaults on its obligationsto WUBS then this could give rise to a risk that WUBS

12 TERMS AND CONDITIONS AND OTHERdefaults on its obligations to youDOCUMENTATION

bull Amendments Cancellations pre-deliveries or the close-outcancellation of a Structured Option may result in a

121 Terms and Conditionsfinancial loss to you WUBS will provide a quote for such

Each Structured Option contract you enter into willservices based on market conditions prevailing at the timebe subject to the Terms and Conditions You will beof your requestrequired to agree to these before entering into a


Structured Option contract with us for the first time complaints seriously and strives to ensure efficient and fairresolution

The Terms and Conditions are a master agreement andset out all of the terms of the relationship between If you have any enquiries about our dispute resolutionyou and WUBS that are applicable to the Structured process please contact your WUBS Representative usingOptions described in this PDS the contact details in Section 31 ldquoWUBS Contact Detailsrdquo

of this PDSThe Terms and Conditions are important and youshould read them carefully before entering into any If you are dissatisfied with the resolution of a complaint youStructured Option They cover a number of important have the right to refer the complaint toterms including how transactions are executed our

Financial Ombudsman Service (FOS)respective rights and obligations events of default and

GPO Box 3 Melbourne Victoria 3001rights of termination

Toll Free Number 1800 367 287We recommend that you seek your own professionaladvice in order to fully understand the consequences wwwfosorgauof entering into a Structured Option

FOS operates an independent dispute resolution scheme122 Other Information

In addition to our Terms and Conditions you will 14 TAXATIONalso need to provide us with the following signed

Taxation law is complex and its application will depend ondocumentation together with such other ldquoKnowa personrsquos individual circumstances When determiningYour Customerrdquo information (including credit relatedwhether or not the Structured Options are suitable youinformation) that WUBS may require including a Directshould consider the impact it will have on your own taxationDebit Request form Copies of forms can be obtainedposition and seek professional advice on the tax implicationsby contacting your WUBS Representativethe Structured Options may have for you

The main checks that are relevant to the accreditationof a Customer are

15 PRIVACYbull verification of a Customerrsquos identity in accordancewith relevant AMLCTF laws In the course of providing foreign exchange services to

you we will collect information about you The informationbull a successful credit check conducted through athat we obtain from you or other people associated withthird party credit agencyyour request is for the purpose of processing your foreign

bull an AMLCTF risk assessment considering relevantexchange transactions providing you the services you have

factors such as the nature of a Customerrsquosasked for including processing your Structured Options

business and the country where the Customer willcompliance and legal duties administration and to help

make or receive payments andvalidate your details Certain information may be required by

bull a check of a Customerrsquos principal officers and us in order to comply with laws and regulations includingbeneficial owners against relevant government the AMLCTF Act and taxation laws If you do not provideissued sanction lists the required information WUBS may be unable to provide

you with the requested services We may disclose yourAfter your application has been accepted you maypersonal information including without limitation yourapply for a Structured Option Contract in accordancename customer ID number address and bank accountwith the Terms and Conditionsinformation (i) if we are required to do so by domesticor foreign law or legal process or (ii) to law enforcementauthorities of other government officials (including those in13 DISPUTE RESOLUTIONthis country the United States or elsewhere) for purposes

You should address any complaint relating to the Structured such as detecting investigating prosecuting and preventingOptions described in this PDS to your WUBS Representative crimes including money laundering and related criminalin the first instance activity and the recipients may further disclose the

information for these and other related purposesIf your complaint is unable to be resolved the matter willbe automatically escalated to the relevant business unit We may use your information to send you details aboutmanager If a resolution is not reached within a reasonable WUBS products and services If you do not wish to receivetime period the matter will be further escalated to the such information please notify us We may also discloseWUBS Compliance Manager who will refer the matter to information about you to third party service providers (suchSenior Management for resolution as credit checking agencies) including to countries other

than the country in which the information was originallyAll complaints are logged at each stage of the processcollected or created who assist us in our businessWUBS Complaints Handling Policy requires us to investigateoperations and service provision including the USA for theand provide a resolution to you within forty-five (45)purposes describeddays from you first making the complaint WUBS takes


You have a right to ask us to see and get a copy of yourinformation for which we may charge a small fee You canalso correct erase or limit our use of the information whichis incomplete inaccurate or out of date

WUBS is committed to complying with all privacy lawsand regulations Further information about WUBSrsquos privacypractices can be found atwwwbusinesswesternunioncomauAboutCompliance-Legal

If you would like further information about the way thatWUBS manages the handling of personal information oryou wish to exercise your rights please contact our privacyofficer

Email privacyanzwesternunioncom

Mail Attention Privacy Officer

Level 12 1 Margaret Street

Sydney NSW 2000

Call 1300 732 561 (Australia Only) or +612 8585 7000


Settlement of Structured Option(s) obligations16 GLOSSARY OF TERMS

Draft is a written order to pay a specified sum issued by orAMLCTF means Anti Money Laundering and Counter-Terrorismthrough WUBSFinancing

Enhanced Rate means the Exchange Rate applicable to aAMLCTF Act means the Anti-Money Laundering and Counter-Structured Option that is more favourable than the equivalentTerrorism Financing Act 2006 and related regulationsForward Exchange Rate or comparable unleveraged Structured

At-The-Money or (ATM) where the entry price of the Structured Option Exchange Rates at the Expiry DateOption is at the current market price level

Exchange Rate is the value of one currency for the purpose ofAUD means Australian Dollar conversion to another

Australian Client Money Rules means all laws and regulations Exercise means an election by the buyer of a Put Option or Callapplicable to Client Money including but not limited to Part 78 Option to buy or sell currency (as applicable) at the Strike Rateof the Corporations Act and the Corporations Regulations that on the Expiry Datespecify the manner in which financial services licensees are to

Expiry Date or Expiry means the date on which a Structureddeal with Client MoneyOption expires

Authorised Deposit-taking Institution or (ADI) means aExpiry Time is the time of day on the Expiry Date that acorporation which is authorised under the Banking Act 1959 toStructured Option expirestake deposits from customers

Extendible Amount means the predetermined AUD or foreignAuthorised Exchange Dealers are any type of financialcurrency amount to be bought or sold on the second Expiry Dateinstitution that has received authorization from a relevantof an Extendible Forward outlined in Section 64regulatory body to act as a dealer involved with the trading of

foreign currencies Financial Services Guide or FSG is a document designedto assist you in deciding whether to use any of the financialBeneficiary Bank means the bank identified in a paymentservices offered by WUBSorder in which an account for the beneficiary is to be credited

pursuant to the order Foreign Exchange Contract is a legally binding agreementbetween the Client and WUBS to effect a foreign exchangeBusiness Day means a day that banks are open for business intransaction including a Forward Exchange Contract or an OptionSydney Australia but does not include a Saturday Sunday orContract in accordance with any Instructionspublic holiday

Forward Exchange Contract or FEC is a legally bindingCall Option means an agreement that gives a Client the rightagreement between a Client and WUBS to exchange one(but not the obligation) to buy a currency at a specified price at acurrency for another at an agreed Exchange Rate on a Valuespecific timeDate more than two (2) Business Days after the Trade Date

Client Money means money paid to which Subdivision A inForward Exchange Rate is the Exchange Rate at which WUBSDivision 2 of Part 78 of the Corporations Act 2001 (Cth) appliesagrees to exchange one currency for another at a future datepursuant to section 981A of the Corporations Actwhen it enters into a FEC

Confirmation means written or electronic correspondenceHedging Counterparties are the parties with whom WUBSfrom WUBS that sets out the agreed commercial details of acontracts to mitigate its exposure when acting as principal toStructured OptionStructured Options by taking related offsetting or mitigating

Corporations Act means the Corporations Act 2001 (Cth) positions

Corporations Regulations means the Corporations Regulations Initial Margin means an amount of money which shall be2001 (Cth) determined by WUBS in its sole discretion and deposited with

WUBS as security in connection with a Structured OptionCorrespondent Bank means a financial institution that performsservices for WUBS in connection with Telegraphic Transfers or Instructions is a request by a Client for WUBS to provideDrafts provided by WUBS services which may be made by mail electronic mail

telephone or other means as set out in the Terms andCounterparty(s) means each party to a contractConditions such request may be accepted or rejected in WUBSrsquo

Credit Limit means a Client facility provided by WUBS at its absolute discretionsole discretion for transacting in Foreign Exchange Contracts

Interbank Exchange Rate means the wholesale Spot Rate thatwithout the need for providing Initial Margin at the Trade DateWUBS receives from the foreign exchange Interbank Market

Currency Pair means the currency that is bought and theInterbank Market means the wholesale markets for transactingcurrency that is sold in a foreign exchange contractin foreign exchange restricted to Authorised Exchange Dealers

CustomerClient means the entity or person who signs WUBSrsquo and banksTerms and Conditions

Intermediary Bank is any bank through which a payment mustDirect Debit Request a type of preauthorized payment under go to reach the Beneficiary Bankwhich a Client authorises its bank to pay amounts to WUBS for


In-The-Money or (ITM) means where the current market price exchange of a Currency Pair where an applicable Knock-In orExchange Rate for the Currency Pair in a Structured Option is Knock-Out Rate has been triggered in a Structured Optionless favourable than the contractual priceExchange Rate for the

Retail Mark Up or (Mark Up) an amount added to the InterbankStructured Option

Price to obtain the Retail PriceIssuer has the meaning of s 761E of the Corporations Act 2001

Retail Price means the sum of the Interbank Price and Retail(Cth) and in this PDS is WUBS

Mark UpKnock-In Rate means where applicable the Exchange Rate

Segregated Account is a bank account maintained by WUBS tothat must be traded at or through in the spot foreign exchange

keep Client Money separate from WUBS moneymarket before the Expiry Time for the buyerrsquos right pursuant to a

Senior Management means a group of high level executivesCall Option or Put Option to become effectivedetermined by WUBS from time to time that actively participate

Knock-Out Rate means where applicable the Exchange Ratein the daily supervision planning and administrative processes

that must be traded at or through in the spot foreign exchangeSettlement is the total amount including the cost of currencymarket before the Expiry Time for the buyerrsquos right pursuant to aacquisition as well as any fees and charges Client owes toCall Option or Put Option to terminateWUBS

Liquidity is the ability to buy or sell a Currency Pair without aSpot Rate means the Exchange Rate for Settlement on areal effect on the priceValue Date of up to two (2) Business Days from the date the

Margin Call is an additional payment required by WUBS astransaction was entered

security in connection with a Structured OptionStrike Rate means the Exchange Rate that will apply to the

Marked to Market means the market value of the Structuredpurchase or sale of currency when a buyer Exercises its right

Option prior to Expiry Dateunder a Put Option or Call Option

Market Risk means the risk of adverse movements in the valueStructured Options means an agreement to exchange a

of a transaction due to movements in Exchange Rates overspecified amount of one currency for another currency at a

timeforeign Exchange Rate created through the concurrent sale and

Notional Amount means the predetermined AUD or foreign purchase of two or more Call Options andor Put Options ascurrency amount to be bought or sold pursuant to a Structured described in this PDSOption

Telegraphic Transfer is an electronic way of transferring fundsObligation Percentage is 100 of the Notional Amount value overseasless the Participation Percentage of a Structured Option

Tenor is the period of time from the Trade Date of a StructuredOption Contract is a Call Option or a Put Option Option to the Expiry Date

Out-of-The-Money or (OTM) means when the current market Terms and Conditions means the Western Union BusinesspriceExchange Rate of the Currency Pair in a Structured Option Solutions (Australia) Pty Limited Terms and Conditions asis more favourable than the contractual priceExchange Rate of amended from time to time and located atthe Structured Option httpbusinesswesternunioncomauAboutCompliance-Legal

Over-The-Counter Market or (OTC) is a decentralised market Time Zone is any one of the worldrsquos 24 divisions that has itswithout a central physical location where market participants own timetrade with one another through various communication modes

Trade Date is the day you and WUBS agree to a StructuredParticipation Percentage means the percentage of the Notional OptionAmount that will be able to participate in favourable currency

Trigger Rate means a Knock-In Rate or Knock-Out Ratemovements at Expiry of the Structured Option

as applicableParticipation Rate means the most advantageous Exchange

USD means United States DollarsRate that can potentially be achieved in a Structured Option as

Value Date is the day where payment for currency is madeagreed by WUBS and you

Vanilla Option means a Call Option or Put Option that hasPDS means Product Disclosure Statementstandardised terms and no special or unusual features as

Premium means where applicable the amount that is payabledescribed in the WUBS Vanilla Options PDS

by you to WUBS on the Trade Date of a Structured OptionVolatility is the pace at which prices move higher or lower

Protection Rate means the worst case Exchange Rate that canWindow is an agreed period during the Tenor of a Structuredbe achieved in a Structured Option as agreed by WUBS and youOption during which a Trigger Rate is effective

Put Option means an agreement that gives the buyer the rightWUBS is Western Union Business Solutions (Australia) Pty(but not the obligation) to sell a currency at a specified price at aLimited ABN 24 150 129 749 AFSL Number 404092specific time

WUBS Compliance Manager means a senior member ofReset Rate means the Exchange Rate that will apply to thethe compliance department who actively participates in the


daily supervision planning and administrative processes of thecompliance function

WUBS Representative means a person designated to act onbehalf of WUBS in the provision of financial services specificallyForeign Exchange Contracts



STRUCTURED OPTIONSPRODUCT DISCLOSURE STATEMENTIssue Date 26th June 2017

TABLE OF CONTENTS

1 PURPOSE 4

2 IMPORTANT INFORMATION 421 COPIES 422 UPDATES RELATING TO THIS PDS 423 WUBS PRODUCTS 524 FINANCIAL AMOUNTS 525 GLOSSARY OF TERMS 526 COUNTERPARTY CREDIT RISK 527 DISCLAIMER 5

3 ISSUER 531 WUBS CONTACT DETAILS 532 WUBS SERVICES 533 HOW TO ACCESS WUBS SERVICES 534 ADDITIONAL INFORMATION 5

4 FOREIGN EXCHANGE OVERVIEW 541 THE FOREIGN EXCHANGE MARKET 542 CURRENCY LIMITATIONS 6

5 WHAT IS A STRUCTURED OPTION 6

6 WUBS STRUCTURED OPTIONS 661 COLLAR 762 PARTICIPATING COLLAR 763 PARTICIPATING FORWARD 864 EXTENDIBLE FORWARD 965 KNOCK-IN IMPROVER 966 KNOCK-IN 1067 KNOCK-IN COLLAR 1168 KNOCK-IN PARTICIPATING FORWARD 1269 KNOCK-IN RESET 13610 KNOCK-IN CONVERTIBLE 13611 KNOCK-OUT PARTICIPATING 14612 KNOCK-OUT RESET 15613 KNOCK-OUT CONVERTIBLE 16

7 CREDIT REQUIREMENTS FOR A STRUCTURED OPTION 1671 INITIAL MARGINS 1772 MARGIN CALLS 1773 CREDIT LIMITS 1774 CLIENT MONEY 1775 CLIENT MONEY RISK 18

8 COST OF A STRUCTURED OPTION 1881 INTEREST 1882 PREMIUMS 1883 EXCHANGE RATE 1884 TRANSACTION FEES 18

9 BENEFITS OF STRUCTURED OPTIONS 181910 RISKS OF STRUCTURED OPTIONS





14 TAXATION 20

15 PRIVACY 20

















































27 Disclaimer




































































































































Knock-In Improver





































































































































































































































































































Sydney NSW 2000





































































14 TAXATION 20

15 PRIVACY 20

















































27 Disclaimer




































































































































Knock-In Improver





































































































































































































































































































Sydney NSW 2000
















































































































27 Disclaimer




































































































































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Sydney NSW 2000

























































































27 Disclaimer




































































































































Knock-In Improver





































































































































































































































































































Sydney NSW 2000





























































































































































































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Sydney NSW 2000




































































































































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Knock-In Improver





































































































































































































































































































Sydney NSW 2000










































































Knock-In Improver





































































































































































































































































































Sydney NSW 2000

















































































































































































































































































































































Sydney NSW 2000























































































































































































































































































































Sydney NSW 2000























































































































































































































































































Sydney NSW 2000





























































































































































































































































Sydney NSW 2000































































































































































































































Sydney NSW 2000




































































































































































































Sydney NSW 2000




































































































































































Sydney NSW 2000











































































































































Sydney NSW 2000
















































































































Sydney NSW 2000






























































































Sydney NSW 2000








































































Sydney NSW 2000













































































































































































Documents

S T R U C T U R E D O P T IO N S P R O D U C T D IS C LO S ......ABN 24 150 129 749 WUBS Rep resentati v e or b y contacting WUBS using the contact details in Section 3.1 WUBS Contact