COMMSECEXCHANGE TRADED OPTIONSAPPLICATION FORM
YOU ARE WHAT YOU DO
EXCHANGE TRADED OPTIONS APPLICATION FORM
1
HOW TO USE THIS FORM – PLEASE USE CAPITAL LETTERS
If you require assistance completing this application form please call the CommSec Options Desk on 1800 245 698, 8am to 5.30pm (Sydney time), Monday to Friday.
You need to have an existing CHESS sponsored CommSec Share Trading Account to open an Exchange Traded Options Account. You may also have, if you require one, a CommSec Margin Loan. Please download an application form from commsec.com.au or call 13 15 19.
BEFORE YOU START
ENSURE THAT YOU HAVE READ THE LATEST PRODUCT DISCLOSURE STATEMENT (PDS)
1 THE AUSTRALIAN SECURITIES EXCHANGE’S UNDERSTANDING OPTIONS TRADING BOOKLET.
2 THE AUSTRALIAN SECURITIES EXCHANGE’S MARGINS BOOKLET.
3 THE COMMSEC EXCHANGE TRADED OPTIONS PRODUCT DISCLOSURE STATEMENT (PDS)
4THE COMMSEC EXCHANGE TRADED OPTIONS TERMS AND CONDITIONS OF THE PDS INCLUDING:
A. THE ‘DERIVATIVES CLIENT AGREEMENT’
B. THE ‘RISK DISCLOSURE STATEMENT’
C. THE ‘COMMONWEALTH SECURITIES GENERAL CONDITIONS OF TRADE AND TRADING RULES’
D. THE ‘TERMS AND CONDITIONS OF CHESS SPONSORSHIP’
E. THE ‘DIRECT DEBIT REQUEST SERVICE AGREEMENT’
F. THE ‘PRIVACY’ SECTION
CHECKLIST – ENSURE YOU HAVE COMPLETED THE FOLLOWING:
YOU MUST HAVE A CHESS SPONSORED COMMSEC SHARE TRADING ACCOUNT IN EXACTLY THE SAME NAME PRIOR TO OPENING AN EXCHANGE TRADED OPTIONS ACCOUNT
SECTIONS TO COMPLETE
ALL APPLICANTS TO COMPLETE
1 ACCOUNT IDENTIFICATION
2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS
5 OPTIONS SETTLEMENT DIRECT DEBIT AND DIRECT CREDIT REQUEST
6 SELECT OPTIONS LEVEL
7 TRADING LEVEL DETAILS
8 KNOWLEDGE TEST
12 CLIENT’S ACKNOWLEDGEMENT & SIGNATURE(S)
ADDITIONAL SECTION FOR A COMPANY APPLICANT/S
3 COMPANY ACCOUNT
ADDITIONAL SECTION FOR AN INDIVIDUAL ACTING AS A TRUSTEE OF A TRUST APPLICANT (INCL. MINORS)
4 SUPERANNUATION FUND, TRUST OR MINOR
ADDITIONAL SECTIONS FOR A COMPANY ACTING AS TRUSTEE OF A TRUST APPLICANT (INCL MINORS)
3 COMPANY ACCOUNT
4 SUPERANNUATION FUND, TRUST OR MINOR
EXCHANGE TRADED OPTIONS APPLICATION FORM
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ADDITIONAL SECTIONS TO COMPLETE
ADDITIONAL SECTIONS FOR ALL MARGIN LOAN APPLICANTS
10 DEED OF ACKNOWLEDGEMENT FOR MARGIN LENDING APPLICANTS
11 STANDING REQUEST FOR BROKER TO BROKER
WHERE TO SEND THIS FORM
Return your completed and signed application form to:
Email: [email protected] Post: Reply Paid 60768, Australia Square NSW 1214 Fax: 1300 131 519
WHAT TO INCLUDE WITH YOUR APPLICATION FORM
If you do not have an existing CommSec Share Trading Account, or a CommSec Margin Loan and you require one, please complete the relevant application form and return it to CommSec with this form. You can complete the online application form on commsec.com.au or have the application form sent to you by calling 13 15 19, 8am to 8pm (Sydney time), Monday to Friday.
IMPORTANT INFORMATION READ BEFORE PROCEEDING
If you wish to authorise someone else to trade and/or conduct transaction/s on your behalf, you must complete an Authority Form. This form is available to download from the CommSec website. Once completed, please attach it to your Exchange Traded Options Application Form. By appointing an Additional Signatory for an Exchange Traded Options Account, this authority will also extend to any linked CommSec Share Trading Account.If you wish to transfer positions and collateral from an existing broker please complete Section 9.
EXCHANGE TRADED OPTIONS APPLICATION FORM
3
Link your Exchange Traded Options Account to either your CommSec Share Trading account or your Margin Loan. Please select one and provide the account number.
My CommSec account number is:
OR My Margin Loan number is:
The Margin Loan Account name MUST match your CommSec Share Trading Account
OR I have attached a CommSec Share Trading Account or Margin Loan application form
SECTION 2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS ALL APPLICANTS
SECTION 1 ACCOUNT IDENTIFICATION ALL APPLICANTS
• If you elect to open a joint account, all transactions will be registered in both names, and we will accept instructions from either person. Both applicants must sign the Application Form.
• If you are opening an account on behalf of a trust and the trustee is a company, complete Sections 2 and 3.
• Please make sure you have the latest details in your profile. You can find your profile at commsec.com.au > Portfolio > Accounts > Account Details
CLIENT 1 / APPLICANT 1 / DIRECTOR 1 / TRUSTEE 1
TITLE GIVEN NAME ( S ) SURNAME
DATE OF BIRTH E-MAIL ADDRESS
MANDATORYPLEASE TICK THE RELEVANT BOX AND CONTINUE AS ADVISED
My CommSec Client ID is>>> continue to Applicant 2 details if applicable
I am an existing customer and do not have a Client ID >>> please complete address details
I am attaching an application for a new CommSec Equity or Margin Loan
Account (which includes the application for a new Client ID)>>> continue to Applicant 2 details if applicable.
If CommSec Client ID is provided, there is no need to provide contact details. If you need to change your address, please go to commsec.com.au > Portfolio > Profile & Security
RESIDENTIAL ADDRESS ( Cannot be a PO Box )
STATE POSTCODE
POSTAL ADDRESS ( if same as residential address write ‘As above’ )
STATE POSTCODE
PLEASE PROVIDE CONTACT DETAILS AND TICK TO INDICATE YOUR PREFERRED CONTACT NUMBER (*Business telephone number is mandatory for Company applicants.)
BUSINESS* HOME MOBILE PHONE
( ) ( )
Continued
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS ALL APPLICANTS
(IF APPLICABLE)
CLIENT 2 / APPLICANT 2 / DIRECTOR 2 / TRUSTEE 2
TITLE GIVEN NAME ( S ) SURNAME
DATE OF BIRTH E-MAIL ADDRESS
MANDATORYPLEASE TICK THE RELEVANT BOX AND CONTINUE AS ADVISED
My CommSec Client ID is>>> continue to Applicant 3 details if applicable
I am an existing customer and do not have a Client ID >>> please complete address details
I am attaching an application for a new CommSec Equity or Margin Loan
Account (which includes the application for a new Client ID)>>> continue to Applicant 3 details if applicable.
If CommSec Client ID is provided, there is no need to provide contact details. If you need to change your address, please go to commsec.com.au > Portfolio > Profile & Security
RESIDENTIAL ADDRESS ( Cannot be a PO Box )
STATE POSTCODE
POSTAL ADDRESS ( if same as residential address write ‘As above’ )
STATE POSTCODE
PLEASE PROVIDE CONTACT DETAILS AND TICK TO INDICATE YOUR PREFERRED CONTACT NUMBER (*Business telephone number is mandatory for Company applicants.)
BUSINESS* HOME MOBILE PHONE
( ) ( )
Continued
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 2 APPLICANT INDIVIDUAL/JOINT/DIRECTOR/TRUSTEE DETAILS ALL APPLICANTS
(IF APPLICABLE)
CLIENT 3 / APPLICANT 3 / DIRECTOR 3 / TRUSTEE 3
TITLE GIVEN NAME ( S ) SURNAME
DATE OF BIRTH E-MAIL ADDRESS
MANDATORYPLEASE TICK THE RELEVANT BOX AND CONTINUE AS ADVISED
My CommSec ID is
I am an existing customer and do not have a Client ID >>> please complete address details
I am attaching an application for a new CommSec Equity or Margin Loan
Account (which includes the application for a new Client ID)>>> please go to next page
If CommSec Client ID is provided, there is no need to provide contact details. If you need to change your address, please go to commsec.com.au > Portfolio > Profile & Security
RESIDENTIAL ADDRESS ( Cannot be a PO Box )
STATE POSTCODE
POSTAL ADDRESS ( if same as residential address write ‘As above’ )
STATE POSTCODE
PLEASE PROVIDE CONTACT DETAILS AND TICK TO INDICATE YOUR PREFERRED CONTACT NUMBER (*Business telephone number is mandatory for Company applicants.)
BUSINESS* HOME MOBILE PHONE
( ) ( )
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 3 COMPANY ACCOUNT COMPANY APPLICANTS
› Only organisations registered as a company (Pty Ltd) with the Australian Securities and Investments Commission may open a Company account. All other businesses entities and individuals should complete Section 2.
› Complete Sections 2 and 3.
› Applicants wishing to open a Company account should affix the seal (if available) and have the form signed by: • two directors; or • the sole director (if applicable). In this case he or she needs to write 'sole office holder' next to his or her signature.
COMPANY LEGAL NAME
ACN
COMPANY ADDRESS ( Cannot be a PO Box )
STATE POSTCODE
POSTAL ADDRESS ( if same as residential address write ‘As above’ )
STATE POSTCODE
EMAIL ADDRESS
MANDATORY
• If you intend to operate the account on behalf of a superannuation fund, family trust or person under the age of 18, please give the name of the entity or person here as an account designation. For minors, the name of the parent or guardian should be entered in Section 2. For trusts and superannuation funds, please enter the name of the trust as shown on the trust deed, leaving out the word ‘trust’.
• If the trustee is an individual/joint, please enter the trustee details in Section 2.
• If the trustee is a company, please enter the trustee details in Section 3.
• The account designation must match that of your linked equities or margin lending account.
NAME OF SUPERANNUATION FUND / TRUST / MINOR
Name must be no more than 23 characters, including spaces
SECTION 4 SUPERANNUATION FUND, TRUST OR MINOR SMSF AND TRUST APPLICANTS
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 5 OPTIONS SETTLEMENT DIRECT DEBIT AND DIRECT CREDIT REQUEST
ALL APPLICANTS
Please nominate your preferred settlement arrangement for Option trades on your CommSec Exchange Traded Options account.
› You are required to provide authority for direct debit and credit of a Commonwealth Bank A/C, even if you select to settle your Options trades (both Debit & Credit) from your Margin Loan.
Tick only one preference:
Link both debit and credit transactions to your existing nominated Commonwealth Bank account; or
Link both debit and credit transactions to your CommSec Margin Loan Account*.
* Please fill in the ‘CommSec Margin Loan’ section below.
I/We named on this application form authorise and request Commonwealth Securities Limited (APCA User ID No 062934 - Debit and 062895 - Credit) to arrange for funds to be debited from/credited to my/our account identified in this application and as prescribed below through the Bulk Electronic Clearing System (BECS). This authorisation is to remain in force in accordance with the terms described in the Commonwealth Securities Limited ABN 60 067 254 399 Direct Debit /Credit Request Service Agreement of the Exchange Traded Options PDS.Authorise the following:1. CommSec to verify the details of the account entered in the online application with Commonwealth Bank of Australia.2. Commonwealth Bank of Australia to release information allowing CommSec to verify the account details entered in the online application.Bank Account or Margin Loan MUST be in the same name as Options account
If your current settlement bank account is non-CBA, please provide a CBA bank account.
CommSec / Commonwealth Bank A/C# CommSec Margin Loan
BSB LOAN NUMBER
ACCOUNT NUMBER ACCOUNT NAME
ACCOUNT NAME
# If you do not have a Commonwealth Direct Investment Account (CDIA) or other Commonwealth Bank A/C please complete an application online at commsec.com.au > Portfolio > Offers & Apply > Applications
CLIENT 1 NAME
CLIENT 1 SIGNATURE
✗
DATE
CLIENT 3 NAME
CLIENT 3 SIGNATURE
✗
DATE
CLIENT 2 NAME
CLIENT 2 SIGNATURE
✗
DATE
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 6 SELECT OPTIONS LEVEL ALL APPLICANTS
Please indicate what Options level you requireLevel 3 and Level 4 are not available to Self-Managed Super Fund (SMSF) accounts.
Level 1 Trade long Calls & Puts Level 3 Level 2+ Selling Uncovered Options (Calls)
Level 2 Level 1+ Selling Covered Calls Level 4 Level 3+ Selling Uncovered Options (Calls & Puts)
If you're applying for a level 3 or 4 Options account, please complete your income, assets and liabilities.
1. Please enter your approximate annual gross income (pre-tax)
Income details Client 1 Client 2 (if applicable) Client 3 (if applicable)
Approximate annual gross income (pre-tax) $ $ $
2. Please detail the approximate value of your substantial assets and liabilities
Details of assets Client 1 Client 2 (if applicable) Client 3 (if applicable)
Estimated value of primary residence now $ $ $
Value of additional investment properties $ $ $
Cash in bank accounts $ $ $
Value of listed shares (unencumbered) $ $ $
Value of additional assets $ $ $
Total assets $ $ $
Details of liabilities Client 1 Client 2 (if applicable) Client 3 (if applicable)
Name of mortgagor
Property mortgage (primary residence & investment property) $ $ $
Credit card (current balance) $ $ $
Line of credit /overdraft (drawndowns) $ $ $
Other debts outstanding (i.e. personal loans/car loans etc.) $ $ $
Total liabilities $ $ $
Net assets (Total assets – total liabilities) $ $ $
Note: CommSec may request proof of the assets and liabilities you have listed
SECTION 7 TRADING LEVEL DETAILS ALL APPLICANTS
Please answer on behalf of all applicants.
1. Why do you wish to trade options?
Hedging/risk management Speculation
Income Generation Other (please provide details)
2. How often have you traded Exchange Traded Options before?
0 1-2 3-4 3-5 6-10 10+
Level 1 and 2 applicants please proceed to Section 9.
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 8KNOWLEDGE TEST LEVEL 3 & 4 APPLICANTS ONLY
All questions must be answered to be enabled with Level 3 and 4 trading on your Exchange Traded Options account.
1. You hold the following Option position for DEF Limited (DEF): Short 20 DEF June $38.00 Calls.
The share price of DEF rises from $38 to $39.
Which of the following statements is correct?
(a) The margin required for this position will increase
(b) The margin required for this position will decrease
(c) The margin required for this position will be the same
(d) No margins apply to this position
2. You enter the following Option position for MNO Limited (MNO): Short 1 MNO June $4.50 Call for 10c (Contract size = 100). You are exercised on the expiry day in June. The following day, MNO is trading at $4.75.
What is your total profit/loss if you buy the shares at market price to cover your obligation (excluding brokerage and ASX Clear charges)?
(a) Break even
(b) $15 loss
(c) $25 loss
(d) $35 profit
3. If additional margin is needed to cover a position, the Participant can:
(a) Call you to lodge more stock or cash to cover the obligation
(b) Automatically lodge cash or stock on your behalf with ASX Clear
(c) Automatically sell shares you hold to cover the obligation
(d) All of the above
4. All else remaining constant an increase in volatility for the underlying security leads to:
(a) Lower option premiums
(b) Higher option premiums
(c) Flat option premiums
(d) Lower strike prices
5. You enter the following Index Option position for S&P/ASX 200 Index (XJO):
Long 1 XJO June 5000 Call @ 100 points.
What is the total premium paid for this option order, assuming an Index Multiplier of $10?
(a) $100
(b) $1,000
(c) $1,100
(d) $2,000
6. Which of the following strategies would require a margin to be lodged?
(a) Bull Put spread
(b) Bull Call spread
(c) Bear Put spread
(d) All of the above strategies
7. You hold the following Bull Call spread position in OPQ Limited (OPQ)
Long 5 OPQ August $29.00 Calls @ $3.00
Short 5 OPQ August $31.00 Calls @ $0.50
What is the most likely outcome if you only close (sell) the $29 August Call series?
(a) You will make a profit on the strategy
(b) You will make a loss on the strategy
(c) You will now be required to pay a margin
(d) You will now no longer be required to pay a margin
8. Which of the following is not a valid Option strategy?
(a) Bull Call spread
(b) Ratio Bear Condor
(c) Bull Put spread
(d) Straddle
9. If you are assigned a Short Call position and don’t hold the stock you will be required to:
(a) Substitute cash for stock
(b) Purchase the stock immediately after you are notified of the exercise
(c) Make arrangements to purchase the stock the following week
(d) Do nothing
10. What will happen if you do nothing and your Long Call expires in-the-money?
(a) You will receive a cash settlement for the option value at expiry
(b) Nothing your option will just expire
(c) Your option will be automatically exercised
(d) Your broker will pay your margin for you
11. What will happen if a stock you have lodged is removed from the eligible security list?
(a) Your stock will stay lodged but you won’t be able to lodge more of that stock
(b) You will have to find an alternative collateral to cover your option position(s) or close your position(s)
(c) This will have no impact on you
(d) Your broker will pay your margin for you
EXCHANGE TRADED OPTIONS APPLICATION FORM
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12. Please tick the correct pay-off diagram which accurately shows the break-even point, maximum profit and maximum loss for the following scenario:
Company XYZ is trading at $10.00. You sell 1 x $10.00 XYZ Call for a premium of $0.50.
(a)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at $10.00. You sell 1 x 1000 XYZ Call for a premium of $0.50.
• Break-even $10.50
• Maximum profit $9.50
• Maximum loss $0.50
(b)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Call for a premium of $0.50.
• Break-even $10.50
• Maximum profit $0.50
• Maximum loss unlimited
(c)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Call for a premium of $0.50.
• Break-even $9.50
• Maximum profit $9.50
• Maximum loss $0.50
13. Please tick the correct pay-off diagram which accurately shows the break-even point, maximum profit and maximum loss for the following scenario:
Company XYZ is trading at $10.00. You sell 1 x $10.00 XYZ Put for a premium of $0.50.
(a)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at $10.00. You sell 1 x 1000 XYZ Put for a premium of $0.50
• Break-even $9.50
• Maximum profit $9.50
• Maximum loss $0.50
(b)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Put for a premium of $0.50.
• Break-even $9.50
• Maximum profit $9.50
• Maximum loss $0.50
(c)
Pro�t
Share Price
Loss
08,00 9,00 10,00 11,00 12,00
Company XYZ is trading at$10.00. You sell 1 XYZ $10.00Put for a premium of $0.50.
• Break-even $9.50
• Maximum profit $0.50
• Maximum loss $9.50
SECTION 8KNOWLEDGE TEST LEVEL 3 & 4 APPLICANTS ONLY
EXCHANGE TRADED OPTIONS APPLICATION FORM
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SECTION 9 REQUEST FOR CHANGE OF SPONSORING BROKER OPTIONAL
NEW SPONSORING BROKER
Commonwealth Securities Limited Locked Bag 22 Australia Square NSW 1215 PID 1402
Please transfer ALL my/our open Exchange Traded Options positions, CHESS Sponsored shareholdings and/or SCRIP held in safe custody and my / our Holder Identification Number (HIN) from another broker.
Please transfer ALL my/our open Exchange Traded Options positions, CHESS Sponsored shareholdings and/or SCRIP held in safe custody from my/our Holder Identification Number (HIN) with my exisiting broker to my/our Holder Identification Number (HIN) with CommSec.
Please transfer ALL my/our open Exchange Traded Options positions only to my/our Holder Identification Number (HIN) with CommSec.
ACCOUNT NAME AT OTHER BROKER
ACCOUNT DESIGNATION (IF ANY)
THE NAME OF THE OTHER BROKER
PARTICIPANT ID (PID) OF OTHER BROKER HOLDER IDENTIFICATION NUMBER (HIN) OF OTHER BROKER
ACCOUNT NUMBER OF OTHER BROKER
APPLICANT 1 NAME APPLICANT 2 NAME
APPLICANT 1 SIGNATURE APPLICANT 2 SIGNATURE
✗ ✗
DATE DATE
APPLICANT 3 NAME
APPLICANT 3 SIGNATURE
✗
DATE
› Complete only if you are transferring all broker-sponsored holdings and/or open Exchange Traded Options positions.
› By requesting CommSec to broker-transfer your stocks you also agree to be CHESS Sponsored by CommSec.
› The following details must be exactly the same as those on your current CHESS Settlement Facility Statement from your existing broker (or other applicable documents attached), to ensure successful transfer of all stocks.`
› A copy of your latest CHESS Holding Statement must be attached.
Level 1 Applicants ››› Go to Section 14
Level 2, 3 or 4 Applicants ››› Go to Section 10
EXCHANGE TRADED OPTIONS APPLICATION FORM
12
THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
› If you wish to use your CommSec Margin Loan in conjunction with your CommSec Exchange Traded Options Account, you must complete this section and section 11.
EXCHANGE TRADED OPTIONS ACCOUNT NUMBER LEAVE OPTIONS ACCOUNT NUMBER BLANK FOR NEW OPTIONS ACCOUNT
Dear Sir/Madam
Client acknowledgement of the Master Deed of Priority.
I refer to the Master Deed of Priority dated 10/01/02 (the ‘Deed’) between ASX Clear Pty Ltd (ABN 48 001 314 503) (ASX Clear) and Commonwealth Bank of Australia ABN 48 123 123 124 (the ‘Lender’). Terms defined in the Deed have the same meaning in this letter. I am a client of the Lender and have instructed my Clearing Participant, Commonwealth Securities Limited ABN 60 067 254 399, to register Options Contracts with ASX Clear.
I/We acknowledge, consent to and confirm the following:
11. I/We indemnify ASX Clear for any costs, liabilities or loss incurred by it, or its agents or employees in connection with the:
(a) execution and stamping of the Deed; and
(b) costs, charges and expenses incurred by ASX Clear in connection with any exercise or non-exercise of rights under or any variation, waiver or discharge in relation to the Deed.
12. I/We agree to be bound by the Deed and acknowledge and confirm the order of priorities between the ASX Clear Securities and the Lender Securities set out in the Deed.
13. I/We will cooperate in the implementation of, and assist in giving effect to, the Deed and will not do anything inconsistent with the terms of the Deed.
ACCOUNT HOLDER SIGNATURE 1 PRINT NAME DATE
✗
ACCOUNT HOLDER SIGNATURE 2 PRINT NAME DATE
✗
ACCOUNT HOLDER SIGNATURE 3 PRINT NAME DATE
✗
SECTION 10FORM OF ACKNOWLEDGEMENT FOR MARGIN LENDING APPLICANTS
LEVEL 2 MARGIN LOAN ACCOUNT
EXCHANGE TRADED OPTIONS APPLICATION FORM
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› If you wish to use your CommSec Margin Loan in conjunction with your CommSec Exchange Traded Options Account, you must complete this section and section 10.
Please nominate your preferred settlement arrangement for option trades on your Exchange Traded Options Account.
› For joint shareholdings, all holders must sign.
› If signed by an Attorney, the Power must have either been previously noted by CommSec or be duly stamped and accompany this advice.
NAME
EXCHANGE TRADED OPTIONS ACCOUNT NUMBER (COMMSEC TO FILL IN ACCOUNT NUMBER)
I/We authorise CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) to freely move shares between my/our accounts and CHESS Settlement Facility HINs for the purpose of satisfying my/our margin requirements at either ASX Clear Pty Ltd or my/our Margin Loan.
I/We acknowledge that CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) will attempt to conduct these transfers in my/our best interests, but cannot guarantee coverage of all margining requirements on both accounts in all circumstances. I/We will not hold CommSec and Commonwealth Bank of Australia (CommSec Margin Lending) responsible for any loss, costs or disadvantage incurred as a result of actions arising from this request.
I/We acknowledge that satisfying all margin requirements remains ultimately my/our responsibility.
From/To: Commonwealth Bank of Australia (CommSec Margin Lending) Locked Bag 34 AUSTRALIA SQUARE NSW 1214
PID
MARGIN LOAN HIN
ACCOUNT NUMBER
To/From: CommSec Locked Bag 22 AUSTRALIA SQUARE NSW 1215
PID
1 4 0 2
HIN
ACCOUNT
Signature of Shareholders authorising the transfer when required:
SIGNATURE 1 PRINT NAME DATE
✗
SIGNATURE 2 PRINT NAME DATE
✗
SIGNATURE 3 PRINT NAME DATE
✗
CommSec Margin Loan is a product of the Commonwealth Bank of Australia ABN 48 123 123 124 administered by its wholly owned non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (‘CommSec’).
SECTION 11 STANDING REQUEST FOR BROKER TO BROKER TRANSFER MARGIN LOAN
13
EXCHANGE TRADED OPTIONS APPLICATION FORM
14
SECTION 12CLIENT’S ACKNOWLEDGEMENT & SIGNATURE(S) ALL APPLICANTS
• I/We have read the Derivatives Client Agreement in the Exchange Traded Options PDS. If the application is accepted, I/we agree to abide by that Agreement.
• I/We have received or accessed the ASX booklet ‘Understanding Options Trading’.
• I/We have read Clause 32 in the Derivatives Client Agreement in the Exchange Traded Options PDS relating to email confirmations.
• I/We acknowledge and consent that on supplying an email address, it will be used as the sole method of communication as detailed in that section.
• I/We have read and accept Clause 20 of the Derivatives Client Agreement in the Exchange Traded Options PDS relating to default.
• I/We consent to CommSec to take the necessary actions to fulfil it’s obligations as a market participant.
• I/We have read and accept Clause 34 of the Derivatives Client Agreement in the Exchange Traded Options PDS relating to the obligations and liabilities I/we will have to the Commonwealth Bank of Australia.
• I/We have read and understood the Risk Disclosure Statement in the Exchange Traded Options PDS.
• I/We have read and accept the Commonwealth Securities General Conditions of Trade and the Trading Rules of the Exchange Traded Options PDS.
• I/We have read and accept Clause 12 of the Commonwealth Securities General Conditions of Trade in relation to my/our commitments. I/We consent to CommSec debiting any of my accounts, including margin lending facilities for monies owing.
• I/We consent to the collection, use and exchange of my/our personal information as set out in the Privacy section of the Exchange Traded Options PDS.
• I/We agree and confirm the payment instructions set out in Section 5 of this application form.
• I/We agree to become CHESS Sponsored by CommSec and agree to abide by the CHESS Sponsorship Terms and Conditions in the Exchange Traded Options PDS.
• (SMSF accounts only) I/We confirm that the self-managed super fund has a Derivatives Risk Statement and that all trading of Exchange Traded Options will be conducted in accordance with that statement.
LEVEL 3 AND LEVEL 4 CLIENTSIn addition to all other terms, conditions and acknowledgements outlined in the Exchange Traded Options PDS to which I/We agree:
• I/We understand the term ‘Leverage’ as defined in the Risk Disclosure Statement of the Exchange Traded Options PDS, and have considered and accept all the risks involved when writing a Call or Put Option.
• I/We have read the ASX booklet ‘Understanding Margins’ and are aware of my/our margin obligations when writing Call or Put Options. I/We have also contacted CommSec to discuss how margins are calculated and charged when writing Call or Put Options.
• I/We understand that if I/we intend to lodge stock to meet my/our margin obligations that the stock will be subject to a security interest granted to ASX Clear and that I/we authorise CommSec to grant such security interest under and in accordance with the ASX Rules.
• I/we understand that CommSec may call for proof of my/our ability to service the obligations of my/our open short positions.
• I/We agree to provide any requested financial statements and understand CommSec may restrict my/our trading activity until I/we have done so.
• I/We understand that CommSec requires all trades to settle through a Commonwealth Direct Investment Account (CDIA) or another Commonwealth Bank account or a CommSec Margin Loan.
• I/We agree that when I/we give an instruction to write a Call or Put Option, that I/we have considered all information relating to that position that is available to the market (including but not limited to Financials, Announcements, Dividends (etc) and that I am/we are responsible for the instructions that I/we confirm for placement.
• I/We agree that when I/we enter an Options position, that at all times I/we will be responsible for that position up until that position has been closed in full, and that I am/we are required to meet all settlements on T+1.
• I/We understand that corporate actions and other anomalies that occur in the market without prior warning may adversely affect my/our position.
• I/We agree that at any time without giving prior notice, CommSec has the right to reduce the trading level of my/our account and/or close any open positions if it is considered to be in CommSec’s reasonable interest to do so.
EXCHANGE TRADED OPTIONS APPLICATION FORM
1515
By signing this Application in the place(s) provided, I/we acknowledge the correctness of these statements as outlined in section 12.
Tick this box if you do not wish to receive any promotional information (including information about initial public offers).
SIGNATURE OF CLIENT / APPLICANT / DIRECTOR / TRUSTEE 1 SIGNATURE OF CLIENT / APPLICANT /
DIRECTOR / TRUSTEE 2
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