Macquarie Contracts for Difference

Macquarie Contracts
                                      for Difference
                                                                        Product Disclosure Statement
                                                                                            15 JUNE 2015




Macquarie Bank Limited.
ABN 46 008 583 542. Australian Financial Services Licence No. 237502.


                                                                                                   1
This PDS                                                            Representations
 This product disclosure statement (‘PDS’) is dated                  This PDS has been prepared and issued by Macquarie.
 15 June 2015 and has been prepared by Macquarie Bank                Potential investors should only rely on information in this PDS.
 Limited (ABN 46 008 583 542, AFSL number 237502)                    No person, including any distributor of this PDS, is authorised
 (‘Macquarie’, ‘we’ or ‘us’). This PDS (including the Updated        to give any information, or to make any representation, in
 Information defined in ‘Currency of information’ below) and         connection with our invitation to apply to trade CFDs that is
 the Application Form contain the only terms on which retail         not contained in this PDS. Any information or representation
 clients in Australia will be invited to apply for Contracts for     not in this PDS must not be relied on as having been
 Difference (‘CFDs’). To the extent permitted by law, we accept      authorised by Macquarie.
 no liability whatsoever for any loss or damage arising from you
                                                                     Nothing in this PDS is an express or implied endorsement
 relying on any other information when investing. Under this
                                                                     by Macquarie of an investment in or through the Macquarie
 PDS, Macquarie invites you to apply to trade CFDs issued by
                                                                     Prime Facility or the shares of any Listed Entity.
 Macquarie.

 Your liability                                                      Electronic copies
                                                                     This PDS is available from us online at the Prime Website.
 Your potential liability under the Macquarie Prime Facility
                                                                     Any person receiving this PDS electronically should note that
 is not limited to the balance deposited in your Prime
                                                                     applications can only be accepted if Macquarie receives a
 Account or the value of Financial Instruments held
                                                                     completed Application Form which was accompanied by the
 through the Macquarie Prime Facility and we may ask you
                                                                     electronic copy of this PDS.
 to pay amounts in excess of these amounts to cover any
 outstanding monies, especially where you have a short
 position in relation to a share or are leveraged (eg have a         Glossary
 Loan Facility or hold CFDs).                                        At the end of this PDS is a Glossary in which various
 You should read all of this PDS and any other Transaction           words and phrases used in this PDS are defined. If you do
 Document to which you are a party carefully and seek                not understand a word or phrase, you should refer to the
 professional legal, taxation and financial advice to                Glossary. Capitalised words that are used in this PDS have
 determine whether any given investment in, or held                  the meaning given to those words in the Glossary, unless the
 through, the Macquarie Prime Facility is appropriate                context requires otherwise.
 for you.                                                            Unless stated otherwise:
                                                                     (i) all dollar amounts in this PDS are quoted in Australian
 Offers made in Australia
                                                                         dollars; and
 This offer is open to persons receiving this PDS, whether
                                                                     (ii) all references to time are to time in Sydney.
 in paper or electronic form, in Australia. This PDS is not an
 offer or invitation in any place outside Australia where, or to
 any person to whom, it would be unlawful to make such an            Further advice recommendation
 offer or invitation. The distribution of this PDS (electronically   An investment in a Macquarie Prime Facility, including in
 or otherwise) in any jurisdiction outside Australia may be          CFDs, involves financial and other risks. Before making an
 restricted by law and persons outside Australia who come            investment in a Macquarie Prime Facility, you should:
 into possession of this PDS should seek advice on, and
 observe, any such restrictions. Any failure to comply with such     •• carefully read all of this PDS;
 restrictions may constitute a violation of applicable law.          •• seek professional legal, taxation and financial advice to
                                                                        determine whether an investment in, or held through, the
 Currency of information                                                Macquarie Prime Facility is appropriate for you; and
 This PDS is current as at its date (see ‘This PDS’ above).          •• carefully consider the potential benefits and the risks
 Macquarie may vary this PDS by issuing a supplementary                 involved in investing in the Macquarie Prime Facility.
 PDS. Where information changes that is not materially
 adverse to investors, Macquarie may update the information          As well as considering the risks, you should also consider
 by posting a notice online at the Prime Website. You may            how any investment in, or held through, the Macquarie
 access this information at any time. Alternatively, you can call    Prime Facility fits into your overall investment portfolio.
 the Prime Client Service Team on 1800 187 434. Macquarie            By diversifying your investment portfolio, you can reduce
 will provide, on request and without charge, a paper copy           your exposure to failure or underperformance of any one
 of any updates that are posted to the Prime Website or any          investment, counterparty or asset class.
 supplementary PDS (‘Updated Information’) to investors.




2
Contents
At a Glance		                                            2
ASIC Disclosure Benchmarks                               9
Section 1   Investment Overview                         13
Section 2   Details of CFD Trading                      15
Section 3   Cashflows and Margin                        22
Section 4   Fees and Other Costs                        25
Section 5   Worked Examples                             27
Section 6   Significant Risks You Should Consider       32
Section 7   Taxation for Australian Residents           39
Section 8   Additional Information                      41
Section 9   About the Issuer – Macquarie Bank Limited   43
Section 10 How to Apply                                 44
Section 11 Terms and Conditions                         45
Section 12 Glossary                                     56
Section 13 Interpretation                               62




                                                             1
At a Glance
 This Section of the PDS contains the highlights and key features of CFDs. To find information on the topics listed below, see the
 Section number listed or document described where applicable. These ‘Highlights’ indicate the kind of information you can find
 in this PDS, but are not intended to be a complete summary. You should read all of this PDS carefully and seek professional legal,
 taxation, and financial advice to determine whether an investment in CFDs is appropriate for you.


    Is a CFD suitable for you?
    CFDs are complex and potentially highly geared products that are only suitable for experienced and sophisticated traders that
    are able to constantly monitor their Positions.
    You should ensure that you have considered whether or not a CFD is suitable for you. In particular, you should consider
    whether:
    •• you have sufficient liquid assets to be able to post Margin on very short notice;
    •• you are an experienced share trader who is familiar with the share market;
    •• you have the ability to tolerate a high level of risk; and
    •• you are confident in your own investment ability and fully understand the way CFDs work, as well as the risks involved in
       using CFDs.
    You should also understand that your potential losses on a CFD can be substantial, and in the case of a Short CFD, your
    potential losses can be unlimited.



    Topic                     Highlights                                                                       More Information

    Who is the issuer         This PDS and the CFDs are issued by Macquarie Bank Limited (‘Macquarie’). Section 9:
    of this PDS and the                                                                                 About the Issuer
                              Macquarie’s contact details are set out on the back cover of this PDS.
    CFDs?                                                                                               – Macquarie Bank
                                                                                                        Limited.

    What is offered?          You are invited to apply to trade in CFDs with Macquarie by giving Orders,       Section 2:
                              including GSL Orders, on the terms outlined in this PDS, using your Prime        Details of CFD Trading.
                              Facility.
                                                                                                               Section 11:
                                                                                                               Terms and Conditions.

    What is a CFD?            A contract for difference, or CFD, is a derivative which allows you to make      Section 2:
                              a profit or loss from fluctuations in the price of an underlying ASX-listed      Details of CFD Trading.
                              security, referred to as a Reference Security, without actually owning that
                                                                                                               Section 11:
                              security.
                                                                                                               Condition 4 of the
                              The amount of any profit or loss made on a CFD will be equal to the              Terms and Conditions.
                              difference between the price of the Reference Security when the CFD is
                              opened, and the price of the Reference Security when the CFD is closed,
                              multiplied by the number of Reference Securities to which the CFD relates
                              (the ‘CFD Quantity’). Any profit or loss made will also be affected by certain
                              other payments required to be made under the terms of the CFDs, including
                              fees and payments relating to dividends declared in relation to the underlying
                              Reference Security and interest. Profit or loss will also be affected by any
                              payments you direct us to make to your adviser on your behalf.
                              A CFD is designed for experienced traders.




2
Topic                 Highlights                                                                         More Information

What are ‘Long CFD’   You can enter into a ‘Long CFD’ or a ‘Short CFD’.                                  Section 2:
and ‘Short CFD’                                                                                          Details of CFD Trading.
                      If you hold a Long CFD, you have the potential to profit from a rise in the
positions?
                      price of the Reference Security. A Long CFD is similar to borrowing funds          Section 11:
                      from Macquarie to buy Reference Securities, and posting an amount of               Condition 4 of the
                      cash as security for this position. In this situation, you are identified as the   Terms and Conditions.
                      ‘Long Party’, being the party who has notionally purchased the Reference
                      Securities and Macquarie is identified as the ‘Short Party’. Where you are
                      the Long Party, you may make a profit if the Reference Price rises while your
                      CFD is open. Conversely, you will generally make a loss if the Reference
                      Price falls while your CFD is open.
                      If you hold a Short CFD, you have the potential to profit from a fall in the
                      price of the Reference Security. A Short CFD is similar to borrowing the
                      Reference Securities from Macquarie, selling them on the market with a
                      view to re-purchasing them at a future date, and in the meantime investing
                      the proceeds of the initial sale in a bank account, with a proportion of these
                      proceeds being held as security for this position. In this situation, you are
                      identified as the ‘Short Party’, being the party who has notionally sold the
                      Reference Security and Macquarie is the ‘Long Party’. Where you are the
                      Short Party, you may make a profit if the Reference Price falls while your CFD
                      is open. Conversely, you will generally make a loss if the Reference Price
                      rises while your CFD is open.
                      Although a CFD replicates the buying and selling of Reference
                      Securities, you do not actually acquire or deliver the Reference
                      Securities and you have no shareholder rights with respect to the
                      Reference Securities, such as voting rights.




                                                                                                                                   3
Topic                  Highlights                                                                        More Information

    What are the           Significant risks include:                                                        Section 6:
    significant risks of                                                                                     Significant Risks You
                           •• An adverse movement in the value of the Reference Securities:
    investing in CFDs?                                                                                       Should Consider.
                              The value of the Reference Securities, which in turn affect the value of
                              your CFD, may go up or down by a material amount, even over a short
                              period of time. Since July 2007, equity markets have generally become
                              more volatile; indeed, over this period, volatility in some markets has
                              been at very high levels. Investing in such highly volatile conditions
                              implies a greater level of risk for investors than an investment in a more
                              stable market. You should carefully consider this additional volatility risk
                              before making any investment.
                              You are responsible for selecting Financial Instruments for any Position
                              that you enter into and as such the performance of that Position will
                              mainly depend on your own investment decisions.
                           •• Gearing:
                              CFDs are speculative and can be highly geared. They carry a significantly
                              higher level of risk than non-geared assets (eg shares). You should not
                              invest in CFDs unless you are experienced in equity derivatives and
                              understand and are comfortable with the risks of investing in CFDs
                              (including the risks associated with gearing).
                           •• Unlimited loss:
                              Your potential loss on entering into Short CFDs may be unlimited.
                           •• You may lose more money than the amount in your Prime Account:
                              Your potential losses on a CFD can be substantial and may the amount
                              of Margin that is designated to support a CFD and even the total funds in
                              your Prime Account.
                           •• Counterparty risk:
                              The risk that Macquarie will not meet its obligations under the CFD.
                           There are other significant risks associated with investing in CFDs.
                           You should read Section 6 of this PDS before you apply to trade CFDs.

    How do I trade         ‘Trading’ a CFD involves entering into, or Closing-out, a derivative contract     Section 11:
    CFDs?                  with Macquarie. While CFD prices are referable to Reference Securities            Terms and Conditions.
                           that trade on the ASX, there is no secondary market in Macquarie CFDs             Part 4 of the Prime
                           themselves and you cannot transfer them to another party. We use the              Client Agreement.
                           phrase ‘trade CFDs’ in this PDS for simplicity’s sake, and are referring only
                           to the Opening, altering and Closing-out of a CFD.
                           Your CFD trading will be conducted via the Macquarie Trading Platform.
                           As such, you will need to have the use of a computer with internet access.
                           See Part 4 of the Prime Client Agreement for information regarding the
                           Trading Platform.
                           Please note that CFDs are traded subject to the terms of this PDS rather
                           than the Prime Trading Terms contained in the Prime Client Agreement.

    What Margin is         Each Open CFD and most Orders placed by you require the posting of                Section 3.1:
    required?              an amount of cash as security (or ‘Margin’). You will need to ensure that         Margin.
                           this Margin amount is covered by the funds in your Prime Account prior to
                                                                                                             Section 11:
                           placing your Order.
                                                                                                             Condition 6 of the
                                                                                                             Terms and Conditions.




4
Topic                Highlights                                                                          More Information

What are ‘Mark-To-   Mark-To-Market Payments are payments required to be made by you to                  Section 3.2.1:
Market Payments’?    Macquarie or vice versa depending on how the Reference Price moves.                 Mark-To-Market
                     Mark-To-Market Payments reflect the loss or profit with respect to the CFD,         Payments.
                     which would be realised if the CFD were Closed-out immediately.
                                                                                                         Section 11:
                     If the Reference Price increases while the CFD is open, the Short Party must        Condition 4.2 of the
                     pay the amount of the corresponding increase in the CFD Face Value to the           Terms and Conditions.
                     Long Party. Conversely, if the Reference Price decreases while the CFD is
                     open, the Long Party must pay the amount of the corresponding decrease in
                     the CFD Face Value to the Short Party.
                     Mark-To-Market Payments are either deducted from, or credited to, your
                     Prime Account and are paid each Business Day. You will need to ensure
                     that the Available Funds in your Prime Account are sufficient to meet your
                     required Mark-To-Market Payments at all times, not just at the relevant
                     Closing Time.
                     The deduction of Mark-To-Market Payments from your Prime Account may
                     affect your ability to meet your Margin Obligations. A failure to maintain
                     sufficient funds in your Prime Account to meet Margin Obligations can lead
                     to a Close-out of your Positions.

Involuntary          Macquarie may Close-out your Positions, including your Open CFDs, and               Section 11:
Close-out            cancel your Orders in a number of circumstances, including where you have           Condition 7 of the
                     insufficient funds in your Prime Account to meet your obligations to provide        Terms and Conditions
                     Margin for any of your Transactions or where you exceed your Risk Limit.
                     This may cause you financial loss.
                     In some cases this may occur without you receiving any prior notice from
                     Macquarie; for example, in the case of a sudden and dramatic adverse
                     movement of the value of the Reference Securities.
                     In particular:
                     •• In the case of Short CFDs, it is important to realise that Macquarie
                        has the right to Close-out Short CFDs at any time without prior
                        notice to you even if you are meeting your Margin Obligations and
                        have not exceeded your Risk Limit.
                     •• Where you breach a Margin Obligation and there is a shortfall in your
                        Margin Obligations that is equal to or greater than 50% of the aggregate
                        of all your Margin Obligations (ie where the amount that is required to
                        comply with the Margin Obligations is equal to or greater than 50%
                        of those Margin Obligations), Macquarie may immediately commence
                        Closing-out any or all of your Positions and/or cancel your Orders to
                        rectify the breach. This can also occur where you exceed your Risk Limit
                        by more than 5% or where the breach of your Risk Limit occurs as a
                        result of the expiry of a Guaranteed Stop-Loss Order (however, in the
                        case of expiry of a Guaranteed Stop-Loss Order, the Close-out is limited
                        to the Position to which the Guaranteed Stop-Loss Order applies).
                     •• Further, even if the shortfall in your Margin Obligations is below 50% of
                        the aggregate of all your Margin Obligations, or if you exceed your Risk
                        Limit by less than 5%, you must act immediately, as Macquarie may
                        Close-out your Open Positions and/or cancel your Orders if you have
                        not rectified the breach by 2pm on the next Business Day after the day
                        on which Macquarie gave you notice of the breach. Notwithstanding the
                        provision of this notice, Macquarie still has the right to Close-out your
                        Positions in certain circumstances, before the 2pm deadline, for example
                        where there is a further fall in the value of your Positions and the shortfall
                        in your Margin Obligation is greater than 50% of the aggregate of all your
                        Margin Obligations.




                                                                                                                                 5
Topic                 Highlights                                                                       More Information

                          A Close-out of your Positions may result in financial loss.
                          It is important that you monitor at all times the level of funds in your Prime
                          Account, as well as your total Margin and Utilised Risk Limit, and make
                          additional deposits to your Prime Account when necessary to meet your
                          Margin Obligations and any other payment obligations you have under your
                          Prime Facility and to avoid exceeding your Risk Limit.
                          Additionally, the Positions that are Closed-out may be unrelated to
                          the Margin Obligation in respect of which the breach occurred (for
                          example, Macquarie may Close-out your CFDs in order to rectify a
                          breach of your obligations to provide Margin in respect of your Loan
                          Facility).
                          Macquarie’s rights to Close-out Positions under the Transaction
                          Documents are held solely for the purpose of securing your
                          obligations to Macquarie. Macquarie may choose not to Close-out
                          your Positions and you cannot rely on Macquarie’s ability to Close-
                          out as a way to limit your exposure to further loss.
                          Macquarie’s Close-out rights are an important factor in how Macquarie
                          calculates the Margin Rates that it offers to Investors.

    Do I receive          If you hold an Open Long CFD at the close of business on the day prior to        Section 3.2.2:
    dividends on CFDs?    the ex-dividend date of the underlying Reference Security, you will receive      Dividends.
                          an amount equal to the ordinary cash dividend on that Reference Security,
                                                                                                           Section 11:
                          excluding any franking credits.
                                                                                                           Condition 4.3 of the
                          If you hold an Open Short CFD on the close of business on the day prior to       Terms and Conditions.
                          the ex-dividend date, you must pay an amount equal to the ordinary cash
                          dividend to Macquarie. In limited circumstances, you may also be required to
                          pay the value of any franking credits applicable to the dividend.

    Do I pay or receive   If you hold an Open Long CFD overnight, you will be charged interest on the      Section 3.2.3:
    interest?             CFD Face Value of that Open position. Conversely, if you hold an Open Short      Interest paid and
                          CFD overnight, you will receive interest on the CFD Face Value of that Open      received on Open
                          position. This interest is calculated and payable on each Business Day and is    CFDs.
                          paid to (or debited from) your Prime Account.
                                                                                                           Section 3.2.4:
                          If you fail to pay when due any amount payable, interest on the overdue          Default Interest.
                          amount may be payable and will be calculated at the Default Interest Rate.
                                                                                                           Section 11:
                                                                                                           Condition 5 of the
                                                                                                           Terms and Conditions.




6
Topic                   Highlights                                                                         More Information

What are the interest   The applicable interest rates are equal to the Benchmark Rate plus or              Section 3.2.3:
rates?                  minus a margin. The Benchmark Rate is the interbank overnight cash rate            Interest paid and
                        published by the Reserve Bank of Australia from time to time.                      received on Open
                                                                                                           CFDs.
                        The rate of interest you must pay Macquarie in the event you hold an Open
                        Long CFD overnight (‘Long Position Funding Rate’) is the Benchmark                 Section 3.2.4:
                        Rate plus up to a maximum of 6.00%pa.                                              Default Interest.
                        The rate of interest Macquarie must pay you if you hold an Open Short CFD    Section 11:
                        overnight (‘Short Position Funding Rate’) is the Benchmark Rate minus up Condition 5 of the
                        to a maximum of 6.00%pa. No interest will be payable by either party if the  Terms and Conditions.
                        Short Position Funding Rate is negative.
                                                                                                     Part 6 of the Prime
                        You may also be liable to pay Default Interest if you fail to pay any amount Client Agreement.
                        payable when due as provided under the General Conditions contained in
                        the Prime Client Agreement.
                        Standard interest rates are published on the Prime Website and are subject
                        to change at Macquarie’s discretion. The interest rate that you pay may also
                        differ if you have directed us to pay your adviser a service fee calculated as a
                        proportion of, and debited with, the interest that you pay.

What fees and other     In addition to any fees and charges payable by you under other Transaction         Section 4:
costs are payable?      Documents, including the Prime Client Agreement:                                   Fees and Other Costs.
                        Trading Fee: You will be charged a Trading Fee each time you trade a CFD,          Section 11:
                        payable in two instalments: the first on the Opening, and the second on            Conditions 4.4, 4.5,
                        the Close-out of the CFD. Each instalment of this fee will be equal to the         4.6, 4.7 and 4.8 of the
                        greater of:                                                                        Terms and Conditions.
                        (a) the CFD Face Value on the Opening or Close-out of the CFD multiplied
                            by the Trading Fee Rate applicable at that time (the Trading Fee Rate will
                            not be greater than 2.00%); and
                        (b) the minimum amount specified or agreed by Macquarie applicable at that
                            time (that amount will not be greater than $200).
                        The minimum amount and the Trading Fee Rate may vary depending on
                        what method you use to place your Order (eg whether by phone or via the
                        Trading Platform) and whether or not you have an adviser and have directed
                        us to pay your adviser for services your adviser provides to you.
                        GSL Premium (GSLs only): Where you have Guaranteed Stop-Loss
                        protection over a CFD, you will be charged a GSL Premium. The GSL
                        Premium will be quoted to you at the time you place your GSL Order and is
                        payable immediately if the GSL Order is accepted.
                        Adviser payments: You may direct us to pay your adviser service fees
                        calculated as a proportion of the following fees relating to your CFDs:
                        (a) Trading Fees charged to you; and
                        (b) interest on your Open long CFDs.
                        Your adviser should disclose benefits they receive to you. Please refer to
                        Section 4.4 for more information.
                        You will need to ensure that the Available Funds in your Prime Account
                        are sufficient to meet all required fees and payments when due (including
                        amounts payable to your adviser). Failure to maintain sufficient funds in your
                        Prime Account may result in the closure of some or all of your Positions and/
                        or your Facility (at the sole discretion of Macquarie).




                                                                                                                                     7
Topic                  Highlights                                                                      More Information

    How do I               You may place an Order requesting the Close-out of an Open CFD at any           Section 2.4:
    Close-out a CFD?       time. Please note that, like an Order to open a CFD, an Order to Close-out a    How do I Close-out
                           CFD may be rejected by Macquarie.                                               a CFD?
                                                                                                           Section 11:
                                                                                                           Condition 7 of the
                                                                                                           Terms and Conditions.

    What are               The taxation consequences of trading CFDs depend on your personal               Section 7:
    the taxation           circumstances and you should obtain independent professional taxation           Taxation
    consequences of        advice. Macquarie does not provide taxation advice.                             Considerations.
    investing in CFDs?

    How can I obtain       For more information, please contact us by:
    further information?
                           Telephone: 1800 187 434
                           Email:       prime@macquarie.com.au
                           Internet:    macquarie.com.au/prime
                           Alternatively, you can speak to your financial adviser.

    How do I apply to      You can apply online at the Prime Website: macquarie.com.au/prime.              Section 10:
    trade CFDs?                                                                                            How to Apply.
                           You must ensure that you have read and fully understood this PDS before
                           applying to trade CFDs in your Prime Facility.

    What do I need to      To trade in Macquarie CFDs, you must open a Macquarie Prime Facility and        Macquarie Prime
    read and agree to      a Macquarie Prime Account.                                                      Account PDS
    so that I can trade                                                                                    and Prime Client
                           The Macquarie Prime Facility is an online investment platform that allows you
    CFDs?                                                                                                  Agreement.
                           to buy and sell financial products, including Macquarie CFDs.
                           You must maintain a Macquarie Prime Account in order to provide cash to
                           be blocked as Margin and otherwise to support your payment obligations in
                           respect of your CFDs and Orders.
                           You need to apply under the separate Macquarie Prime Account PDS and
                           Prime Client Agreement to open a Macquarie Prime Facility. The terms of the
                           Macquarie Prime Account are set out in the Macquarie Prime Account PDS.
                           The terms of the Macquarie Trading Platform are set out in the Prime Client
                           Agreement. The Macquarie Prime Account PDS and Prime Client Agreement
                           are available on the Prime Website: macquarie.com.au/prime.
                           You should note that your trading of CFDs and your Prime Facility are
                           interrelated. Your rights and obligations relating to the Macquarie Prime
                           Facility will be affected by your rights and obligations under your CFDs.




8
ASIC Disclosure Benchmarks
ASIC has developed a series of disclosure benchmarks for CFDs to assist investors in understanding some of the risks associated
with CFDs and to decide whether investments in CFDs are suitable for the investor.
The disclosure benchmarks should be read in conjunction with the other disclosures contained in this PDS, and in particular with
Section 6 of this PDS which sets out the significant risks you should consider before applying for or investing in CFDs.

 Topic                    Highlights                                                                        More Information

 Investor                 CFDs are complex and potentially highly geared products that are only             Section 6:
 qualification:           suitable for experienced and sophisticated traders that are able to constantly    Significant risks you
                          monitor their Positions.                                                          should consider
 What type of
 investors are CFDs       Before allowing you to trade CFDs with Macquarie, Macquarie will require you
 appropriate for?         to answer a series of questions to assess your qualification to trade CFDs,
                          the market in which CFDs operate, and the key risks associated with CFDs.
                          In addition, where you apply for a Risk Limit Macquarie will carry out a credit
                          assessment of you.
                          If you do not meet the qualification criteria set by Macquarie under the
                          qualification questions or under the credit assessment, Macquarie may not
                          issue the CFD product to you.
                          During the application process Macquarie also requires you to make a self
                          assessment of your suitability to trade and invest in CFDs and make certain
                          representations to Macquarie about your understanding of the key risks
                          associated with trading and investing in CFDs.
                          Therefore it is important that you carefully consider all the risks associated
                          with trading CFDs, your experience in trading complex derivative products,
                          and appetite for risk, prior to applying for a CFD trading facility.

 Opening Margin           To open a CFD Position Macquarie requires you to post Margin. Macquarie           Section 6:
                          usually requires this Margin to be in the form of cash held in your Macquarie     Significant Risks You
 What assets will
                          Prime Account.                                                                    Should Consider
 Macquarie accept in
 order for you to open    The Macquarie Prime Facility makes the necessary calculations for your            Section 8 of the
 a CFD Position?          Margin Obligations on a facility level, across all of the products you hold       Macquarie Prime
                          through the Prime Facility. Consequently, where you have an optional Loan         Account PDS
                          Facility, Loan Approved Financial Instruments transferred into your Prime
                                                                                                            Section 5 of the Loan
                          Facility may be treated as a cash equivalent, which you can then use as
                                                                                                            Facility PDS
                          Margin to open a CFD Position.
                          If you are in breach of your Margin Obligation, Macquarie may Close-out
                          positions that are unrelated to the Margin Obligation in respect of which the
                          breach occurred, including Shares where you have an optional Loan Facility.
                          If you borrow money outside of the Macquarie Prime Facility to buy shares
                          (for example by drawing down on a mortgage or by using a credit card) and
                          use these shares to fund your CFD Margin, then you are ‘double gearing’.
                          Double gearing carries a significantly higher risk than if you fund your CFD
                          positions with cash.




                                                                                                                                    9
Topic                   Highlights                                                                         More Information

     Counterparty risk       The issuer of the Macquarie CFD facility is Macquarie Bank Limited, a              Section 9:
     – financial resources   diversified financial institution. Performance by Macquarie Bank Limited of its    About the Issuer
                             obligations to CFD holders is dependent on how it manages its risks across         – Macquarie Bank
                             a range of products and services, and not just in relation to its CFD business.    Limited
                             Capital held by Macquarie Bank Limited is held in amounts designed to
                             ensure it has sufficient funds to absorb potential losses and to meet all its
                             obligations. Macquarie Bank Limited is well capitalised and holds a buffer
                             against market volatility.
                             Macquarie Bank Limited is an Authorised Deposit-taking Institution
                             regulated by the Australian Prudential Regulation Authority (APRA). As an
                             APRA regulated entity, Macquarie Bank Limited is required to hold capital
                             in accordance with APRA’s capital adequacy requirements and to comply
                             with APRA’s prudential standards. In complying with these requirements,
                             Macquarie Bank Limited also meets the financial resources requirements of
                             its Australian Financial Services Licence.
                             Macquarie’s risk management approach is based on examining the
                             consequences of worst case outcomes and determining whether these are
                             acceptable. This approach is adopted for all material risk types and is often
                             achieved by stress testing. In particular, Macquarie’s market risk framework
                             is based primarily on the application of stress tests, rather than statistical
                             models.
                             Information relating to the Macquarie Group Structure and the Macquarie
                             Group’s risk management framework can be found in the Macquarie Group
                             Annual Report available at macquarie.com.au/investorrelations.
                             Macquarie will provide a copy, free of charge, of its most recent publicly
                             available financial reports and interim reports to any person who requests
                             such copies by contacting Macquarie (see the Directory for details).

     Counterparty risk       Macquarie operates a ‘direct market access’ model for CFDs. This means             Section 2.7:
     – hedging               that when you place an Order in relation to a Reference Security, it is            Macquarie operates a
                             Macquarie’s policy to place a corresponding order to purchase or sell that         ‘Direct Market Access’
     How does Macquarie
                             Reference Security to hedge its market risk.                                       model for CFDs.
     manage its exposure
     to market risk and      All hedging of Macquarie CFD Positions uses a Macquarie Group entity               What does this mean?
     how does this impact    as broker and all transactions are entered into in the name of Macquarie
                                                                                                                Section 6.8A:
     your CFD Positions?     Bank Limited. Accordingly, all hedge positions are held on balance sheet by
                                                                                                                Settlement Failure
                             Macquarie Bank Limited without any ongoing reliance with any other hedging
                             counterparties.                                                                    Section 6.10:
                                                                                                                Our obligations
                             Except for the money held in your Prime Account, Macquarie’s obligations
                             in respect of a CFD are not deposit liabilities of Macquarie, and they are
                             not guaranteed by any party. They are unsecured contractual obligations
                             of Macquarie, which will rank equally with Macquarie’s other unsecured
                             contractual obligations and with its unsecured debt other than liabilities
                             mandatorily preferred by law.
                             In this regard, the Banking Act 1959 provides that, in the event of Macquarie
                             becoming unable to meet its obligations, the assets of Macquarie shall be
                             available to meet its liabilities in relation to deposits and other protected
                             accounts and certain costs of the Australian Prudential Regulation Authority
                             relating to those accounts in priority to all other liabilities of Macquarie,
                             including the obligations of Macquarie under any CFDs.
                             You must make your own assessment of our ability to perform our
                             obligations. A description of Macquarie is set out in Section 9 to assist you in
                             making this assessment.




10
Topic                   Highlights                                                                      More Information

Client money            The Macquarie Prime Account is a bank account with Macquarie Bank               Section 2.2:
                        Limited, and all funds held in this account are held in your name and as        How will my Macquarie
How does Macquarie
                        deposit liabilities with Macquarie Bank Limited. These funds may be covered     Prime Account be
treat the money you
                        by the Australian Government Guarantee. All Margin held by Macquarie            affected by my trading
deposit as Margin?
                        to secure your CFD Positions is held as Blocked Funds in your Macquarie         in CFDs?
                        Prime Account.
                                                                                                        Section 3:
                        The monies held in your Macquarie Prime Account are not used by                 Cashflows and Margin
                        Macquarie to hedge its obligations to you under the CFD and are not used
                                                                                                        Section 8.2.6 of the
                        by Macquarie to meet the margin requirements of any other client. The
                                                                                                        Macquarie Prime
                        Margin held in your Macquarie Prime Account is used solely to secure your
                                                                                                        Account PDS
                        obligations to Macquarie.
                        For more on how the Macquarie Prime Account operates and the risks you
                        face in depositing money into that account, please read the Macquarie Prime
                        Account PDS.

Suspended or            Macquarie will not accept a CFD Order to open a new CFD Position if trading Section 2.7:
halted Reference        in the Reference Security has been suspended, halted or delisted.                Macquarie operates a
Securities                                                                                               ‘Direct Market Access’
                        An ASX-listed security may be placed in a trading halt in circumstances that
                                                                                                         model for CFDs.
How does a trading      include the existence of price sensitive information (including a takeover bid)
halt or suspension of   relating to that security. Additionally, a security may be suspended or delisted What does this mean?
a Reference Security    in circumstances including a failure by the Listed Entity to abide by the ASX
                                                                                                         Section 2.8:
affect your CFD         listing requirements.
                                                                                                         How are Reference
Positions?
                        Orders in relation to suspended or delisted securities are generally removed     Prices Determined?
                        from ITS (a process described as ‘purging’). Macquarie may cancel your
                                                                                                         Section 2.9:
                        CFD Order if it has not been completed before the Reference Security
                                                                                                         What is a Market
                        becomes subject to a trading halt, suspension or delisting.
                                                                                                         Disruption Event?
                        In certain circumstances, including where trading on ASX has been disrupted
                                                                                                         Section 2.10:
                        or impaired, where the market for a Reference Security is illiquid or limited,
                                                                                                         How do Market
                        or where trading in the Reference Security is subject to a suspension or
                                                                                                         Disruption Events
                        delisting (known as a Market Disruption event) Macquarie may adjust the
                                                                                                         affect GSLs when
                        Reference Price of the Reference Security, this includes determining that the
                                                                                                         they expire?
                        References Price is less than the last traded price, and potentially zero.
                                                                                                         Section 2.11:
                        Macquarie may also adjust the Reference Price when a Potential Adjustment
                                                                                                         How do Potential
                        Event occurs, including as a result of a distribution, consolidation or
                                                                                                         Adjustment Events
                        cancellation of the Reference Security.
                                                                                                         affect CFDs?
                        Macquarie may also adjust the Margin Rate applicable to your CFD
                                                                                                         Section 3.1:
                        Positions.
                                                                                                         Margin
                        Adjustments to the Reference Price of a Reference Security, or an
                        adjustment to the Margin Rate may have several consequences, including
                        triggering a Guaranteed Stop Loss, or allowing Macquarie to Involuntarily
                        Close-out and terminate your CFD Positions.




                                                                                                                                  11
Topic                   Highlights                                                                          More Information

     Breach of Margin        Providing Margin to secure your CFD Positions is an ongoing obligation. You         Section 3:
     Obligation              may trigger a breach of your Margin Obligation if the value of your Reference       Cashflows and Margin
                             Security changes or where Macquarie changes the Margin Rate of the
     What happens if you                                                                                         Section 6.7:
                             Reference Security.
     are in breach of your                                                                                       Involuntary Close-out
     Margin Obligation?      The Macquarie Prime Platform operates in real time and continuously                 and termination
                             calculates your total Margin Obligation across each of the products you hold
                                                                                                                 Section 6:
                             through your Prime Facility. Consequently the amount of Margin may change
                                                                                                                 Significant Risk You
                             from time to time and even second to second. The amount of Margin we
                                                                                                                 Should Consider
                             require you to hold at any time will be published on the Macquarie Trading
                             Platform.
                             In most cases, Macquarie will notify you when you are in breach of your
                             Margin Obligations and need to provide additional monies. We will notify
                             you via the Macquarie Trading Platform and we may send an email to your
                             designated email address. Consequently, you must constantly monitor your
                             Positions and always be available to receive any notification that you are in
                             breach of your Margin Obligation.
                             In some situations, we are able to Close-out your CFDs to rectify your breach
                             of a Margin Obligation prior to notifying you of the breach. This can arise
                             when the movement in the value of the Reference Security is large enough to
                             put you into breach of your Margin Obligation.
                             As a result, it is critical for you to monitor your Positions and ensure you have
                             sufficient Available Funds at all times to meet any changes in your Margin
                             Obligations, including your CFD Margin.
                             Section 6.7 of this PDS outlines the circumstances in which Macquarie may
                             Close-out your Positions and/or cancel your Orders. You must carefully
                             review and understand your ongoing obligation to provide Margin, and the
                             circumstances in which Macquarie may take action, including Closing-out
                             your Positions and/or cancelling your orders.
                             Trading in CFDs involves the risk of losing substantially more than the initial
                             investment, and small movements in the price of a Reference Security may
                             lead to a large change in the value of your CFD Position.




12
Section 1




Investment Overview
This PDS contains important terms and conditions for you to                         Highly flexible: access real-time market prices
consider. Before completing the Application Form, you should
                                                                                    and multiple order entry options
read and ensure you understand this entire PDS. In particular,
you should note the risks outlined in Section 6 of this PDS.                        The Trading Platform gives you access to real-time pricing
The following is only a brief description of some of the key                        and market depth information. You have the ability to enter
benefits and significant risks involved in investing in CFDs.                       into CFDs in real-time over the internet, with the flexibility of
                                                                                    utilising Market-To-Limit, Trigger, Stop-Loss and Guaranteed
                                                                                    Stop-Loss Orders.
1.1 What are the key features
                                                                                    Dividends and interest
and benefits of Contracts for
                                                                                    Holders of Open Long CFDs also receive the benefit of any
Difference?                                                                         ordinary cash dividends paid to holders of the underlying
                                                                                    Reference Securities, but are charged interest on the CFD
Leverage / gearing: gain access to larger                                           Face Value of their Open CFD.
amounts of trading capital                                                          Conversely, holders of Open Short CFDs must pay cash equal
                                                                                    to the value of any ordinary cash dividend1 paid to holders of
CFDs offer a potentially large amount of gearing. You are able
                                                                                    the underlying Reference Securities, but receive interest on
to outlay a relatively small amount (in the form of Margin) to
                                                                                    the CFD Face Value of their Open CFD.
secure an exposure to the Reference Security. This will
have the effect of magnifying any profits or losses and
so consequently carries significant risk (see Section 6.1
for details).                                                                       1.2 What are the key significant
                                                                                    risks of CFDs?
Trading any market direction: ability to take
short positions                                                                     Gearing magnifies losses
If you believe that a Reference Price may fall, Macquarie                           CFDs can be highly geared and can carry a high degree of
CFDs enable you to open a short position in relation to the                         risk. If you are considering trading in CFDs, you should be
Reference Security. Compared to opening long positions,                             experienced in equity derivatives and understand and be
opening short positions in listed securities has traditionally                      comfortable with the risks of gearing. Gearing can magnify
been a difficult exercise and CFDs offer a means of taking                          your losses, just as it can also magnify your gains (see Section
such short positions.                                                               6.1 for details).

Optional Guaranteed Stop-Loss protection:                                           Short CFDs
limit potential downside                                                            If your application is accepted, you will be able to place
A large adverse movement in a Reference Price can give rise                         Orders for Short CFDs. If you do not take out Guaranteed
to large losses on Open CFDs. Placing Guaranteed Stop-Loss                          Stop-Loss protection, your potential losses on a Short CFD
(‘GSL’) protection on a CFD allows you to limit your potential                      are unlimited. Gearing can magnify the level of losses on a
losses arising from sudden market movements by giving you                           Short CFD (see Section 6.2 for details).
a guaranteed Close-out price during the GSL Period on that
CFD (see Section 2.6.2 relating to GSL Orders for details).                         You may lose more money than the amount
                                                                                    in your Prime Account
                                                                                    Your potential losses on a CFD can be substantial and may
                                                                                    exceed the amount of Margin that is designated to support a
                                                                                    CFD and even the total funds in your Prime Account. Where
                                                                                    your liability to us exceeds the funds in your Prime Account,
                                                                                    we have recourse to you for any outstanding amount as a
                                                                                    debt (see Section 6.3 for details).




1
    Plus, in limited circumstances, the value of any franking credits applicable to the dividend. Please refer to Condition 4.3 of the CFD Terms and Conditions
    for more information.



                                                                                                                                                                  13
Providing Margin is an ongoing and constant                         However, note that Macquarie has the right to Close-out
                                                                      Short CFDs at any time without prior notice to you even
  obligation
                                                                      if you are meeting your Margin Obligations and have not
  As with any other Margin Obligations you may have under             exceeded your Risk Limit. (see Section 6.7 for details)
  your Prime Facility, you must meet Margin Obligations on your
  CFDs at all times and may be required to deposit additional         Macquarie’s discretion, indemnities and
  funds into your Prime Account at any time and on short
  notice. Among other things, failure to meet Margin Obligations      limitations on liability
  may result in us Closing-out your Open CFDs without any             We have discretions that can affect your Orders or CFDs,
  prior notice to you (see Section 6.4 for details). For this         including certain powers to accept or refuse any Order you
  reason, you should monitor your Positions closely.                  place, close your Prime Facility or Close-out any CFD. You
                                                                      do not have the power to direct us about the exercise of any
  Systems infrastructure may be disrupted                             discretion (see Section 6.8 for details).

  Your ability to trade CFDs depends on the continued                 These and other key risks relating to CFDs are described
  operation of, among other things, the Trading Platform, the         in greater detail in Section 6 ‘Significant Risks You Should
  internet, and your personal computer. A fault, delay or failure     Consider’, which you should read carefully.
  of any of these things could prevent you from making Orders
  and may result in losses on your Open positions (see Section
  6.5 for details).

  Investment decisions
  You are responsible for the selection of the Reference Security
  for any CFD that you take out. As such, the performance of
  any CFD will depend mainly on investment decisions made by
  you. CFDs may be speculative (see Section 6.6 for details).

  Involuntary Close-out
  Macquarie may Close-out your Positions, including your
  Open CFDs, in a number of circumstances, including where
  you have insufficient Available Funds in your Prime Account
  to meet your obligations to provide Margin for any of your
  Transactions or where you exceed your Risk Limit. This may
  cause you financial loss.
  In some cases, this Close-out may occur without you
  receiving any prior notice. In light of this, it is your
  responsibility to monitor at all times the level of funds in your
  Prime Account, as well as your total Margin and Utilised Risk
  Limit, and make additional deposits to your Prime Account
  when necessary to meet your Margin Obligations and any
  payment obligations you may have under your Prime Facility
  and to avoid exceeding your Risk Limit.




14
Section 2




Details of CFD Trading
This Section contains a brief summary only of certain material      Your Net Equity is the value of all of your Long Positions, less
features relating to trading CFDs. More detailed information        the value of all of your Short Positions (if any), plus your Prime
relating to trading CFDs can be found in Section 11 ‘Terms          Account Balance.
and Conditions’.
                                                                    Your Prime Account Balance is the sum of the Funds Balance
                                                                    and the Blocked Funds in your account. The Funds Balance
                                                                    is equal to all amounts that have been deposited into your
2.1 How do I start trading in                                       Prime Account, less any amounts withdrawn/paid out of that
Macquarie CFDs?                                                     account and any Blocked Funds.
                                                                    Your Risk Limit, Utilised Risk Limit, the Face Value of your
In order to trade CFDs with Macquarie, you must complete
                                                                    Positions and Orders and your Net Equity can all be viewed
and submit online the Application Form available at
                                                                    on the Macquarie Trading Platform.
macquarie.com.au/applyforprime. In addition, to provide
the Margin needed to support your CFDs, you will need               If you have an assigned Risk Limit of zero, you are required to
to open a Macquarie Prime Facility and Macquarie Prime              use GSL protection on every Short CFD that you enter into (see
Account in your name under the terms of the Macquarie               Section 2.6.2 below relating to Guaranteed Stop-Loss Orders).
Prime Account PDS and Prime Client Agreement. Macquarie
                                                                    If you have a Risk Limit of zero, you should also note that
will then require that an initial amount of at least $5,000
                                                                    if, at any time, you hold a CFD that is not subject to GSL
(current as at the date of this PDS, but subject to change)
                                                                    protection, including where the GSL Period for that protection
be deposited in your Prime Account, or such lower amount
                                                                    has expired, your CFD to which the GSL Order applies may
that Macquarie may determine from time to time (‘Initial
                                                                    be immediately Closed-out in order to ensure that your
Deposit’). Once the Initial Deposit is held in cleared funds in
                                                                    Utilised Risk Limit no longer exceeds your Risk Limit of zero.
your Prime Account, you are able to place Orders and trade
                                                                    This may occur prior to us notifying you of the breach of your
CFDs with Macquarie.
                                                                    Risk Limit. Therefore, if you want to continue holding your
Please note that Macquarie retains the right to refuse              CFD past the end of the GSL Period and avoid the Close-
any application to trade CFDs or to open a Macquarie                out of the CFD, it is important that you purchase new GSL
Prime Facility.                                                     protection prior to the expiry of your existing GSL protection.
                                                                    Regardless of your Risk Limit, you must maintain sufficient
Risk Limit                                                          Available Funds in your Prime Account to meet your Margin
When you open a Macquarie Prime Facility, we will place             Obligations (see Section 3.1 for details).
a limit on the total exposure to any Financial Instruments
(including CFDs and shares) you are able to enter into using
the Macquarie Prime Facility (‘Risk Limit’). This Risk Limit will   2.2 How will my Macquarie Prime
be shared across any Financial Instruments you enter into
(not just CFDs). We retain the right to reject any Orders and/or    Account be affected by my trading
Close-out CFDs in certain circumstances where you exceed
your assigned Risk Limit.
                                                                    in CFDs?
                                                                    While you are trading CFDs, amounts within your Prime
We may refuse to accept an Order in certain circumstances,
                                                                    Account will be designated as either Available Funds or
including if the Order would increase your Utilised Risk Limit
                                                                    Margin, depending on your Orders, CFDs and market
over and above your allocated Risk Limit. Additionally, if your
                                                                    movements. Available Funds are the funds that can be
Utilised Risk Limit exceeds your Risk Limit, this can lead to
                                                                    withdrawn from your Prime Account or used to meet payment
serious financial consequences for you, including refusal or
                                                                    obligations under your Prime Facility.
cancellation of any Orders, Close-out of any Positions and/
or closure of your Prime Facility (see Sections 2.5 and 6.7         In addition to holding sufficient Available Funds in your
for more information), as well as us recovering from you any        Prime Account (for example to meet any fees and charges
monies that you owe us.                                             associated with your trading in CFDs as referred to in Section
                                                                    4), you are required to make sufficient funds available to
At any time, you can view how much of this Risk Limit you
                                                                    support your Margin Obligations on each of your existing
have used through your investment activities (the ‘Utilised
                                                                    CFDs and on each Order to Open a CFD (being an amount
Risk Limit’). Your Utilised Risk Limit is calculated as the
                                                                    equivalent to that held if the Order was accepted) (‘CFD
maximum of:
                                                                    Margin’). Such Margin represents security held by Macquarie
(i) the Face Value of all Positions and Orders for all Financial    for your Orders and CFDs. You will be notified of the CFD
    Instruments within your Prime Facility less your Net Equity;    Margin required at the time of your Order for the CFD and you
    and                                                             should ensure that you have sufficient Available Funds in your
                                                                    Prime Account to cover this Margin as well as the ongoing
(ii) zero.
                                                                    CFD Margin (assuming we accept your Order).

                                                                                                                                         15
Your rights to deal with monies to the credit of your Prime
     Account are restricted to your Available Funds (and are also
                                                                       2.4 How do I Close-out a CFD?
     subject to our rights to call due amounts under your Loan         You may Close-out in whole or in part your CFD by placing
     Facility, if you have one). Generally, if we hold any monies to   a Market-to-Limit or Limit Order that is an Opposite Position
     the credit of your account as CFD Margin, you will not be able    to an existing CFD and that Order is accepted by Macquarie.
     to deal with those monies. All CFD Margin for Orders that are     Where this Order is for a smaller quantity than the existing
     yet to be accepted are held in the Blocked Orders balance of      CFD, the existing CFD will be split into two CFDs, with one
     your Prime Account and all CFD Margin for existing CFDs are       CFD equal in size to the Order being Closed-out and the other
     held in the Blocked Funds sub-account of your Prime Account       CFD remaining Open.
     (see the Macquarie Prime Account PDS for more information
                                                                       Your CFD will Close-out automatically if:
     on these balances).
                                                                       •• a related Stop-Loss Order is accepted by Macquarie; or
     It is your responsibility to monitor at all times the level
     of Available Funds in your Prime Account, as well as              •• a related GSL Order is triggered.
     your Margin Obligations, and make any necessary
     deposits to ensure that you have sufficient Available
     Funds in your Prime Account to cover any CFD Margin
     and any other payment obligations you have under your
                                                                       2.5 Can Macquarie close my CFDs
     Prime Facility.                                                   or stop my ability to trade CFDs
     Please refer to Section 3.1 for a further description as to how   without my approval?
     Margin is calculated.
                                                                       In some circumstances, Macquarie may Close-out a CFD
                                                                       or suspend your ability to trade CFDs, including where you
  2.3 How do I Open a CFD?                                             exceed the Risk Limit or fail to maintain sufficient Available
                                                                       Funds to meet Margin Obligations. This may cause you
  You will need to place your Order through the Trading Platform       financial loss. In some cases, the Close-out or suspension
  electronically or by telephone. We will allow you access to the      may occur without you receiving any prior notice from
  Trading Platform if we accept your Application to trade CFDs         Macquarie. It is important that you monitor at all times the
  using your Prime Facility.                                           level of funds in your Prime Account, as well as your total
                                                                       Margin and Utilised Risk Limit. You may need to make
  When you place an Order to open a CFD, you will need to
                                                                       additional deposits to your Prime Account to meet your
  specify certain information including the Reference Security
                                                                       Margin Obligations and any payment obligations you may
  and the CFD Quantity. Your Order will become an Open
                                                                       have under your Prime Facility and to avoid exceeding your
  CFD only if and when Macquarie has accepted your Order
                                                                       Risk Limit.
  in accordance with the Terms and Conditions. That is, when
  Macquarie enters into arrangements to buy or sell Reference          Additionally, in the case of Short CFDs, it is important to
  Securities to hedge its exposure, or otherwise at the time it        realise that Macquarie has the right to Close-out Short
  records the transaction concerning the CFD in its records.           CFDs at any time without prior notice to you even if you
                                                                       are meeting your Margin Obligations.
  If by Macquarie accepting your Order, you would exceed your
  Risk Limit, your Order will not be accepted by Macquarie.            See Condition 7 of the Terms and Conditions for more details.
  Under the Terms and Conditions, Macquarie may choose not
  to accept an Order in certain circumstances (see Condition
  3.4). If Macquarie, in its discretion, accepts an Order, you         2.6 What types of CFD
  should note that there is no guarantee that an Order (other
  than a Guaranteed Stop-Loss Order) will be filled at a given
                                                                       Orders exist?
  price or time. You may cancel an Order at any time prior to          The basic types of Orders you can place when Opening,
  that Order being accepted and filled by Macquarie.                   altering or Closing-out a CFD are set out below.
                                                                       If you have a Risk Limit of zero, you may need to place an Order
                                                                       for a GSL at the same time as your Order (see Section 2.1).
                                                                       This does not apply to an Order to Close-out a CFD.

                                                                       2.6.1 Orders that can Open or Close-out
                                                                       a position
                                                                       You can Open or Close-out CFDs using a ‘Limit Order’,
                                                                       ‘Market-to-Limit Order’, or ‘Trigger Order’.




16
Limit Order                                                         For example, XYZ is currently trading at $9.80. You would like
                                                                    to Open a Long CFD at a Limit Price of $10.10, but only if XYZ
This is an Order to enter into a new CFD or Close-out an            trades above $10.00. In this example:
existing CFD where the relevant Reference Price reaches a
specified level (the ‘Limit Price’).                                •• the Trigger Level is set at $10.00; and

If we accept this Order:                                            •• if XYZ trades at $10.00 or greater, a Trigger Event
                                                                       occurs and Limit Order to Open a Long CFD at $10.10
•• where you are the Long Party under the new CFD (or                  or less is placed.
   requesting a Close-out of a CFD to which you are the
   Short Party), the Order may be filled at the prevailing
   Reference Price where that price is equal to, or less than,      2.6.2 Orders that can be used to limit losses
   the Limit Price; or
                                                                    Stop-Loss Order
•• where you are the Short Party under the new CFD (or
   requesting a Close-out of a CFD to which you are the             This is an Order requesting the Close-out of an existing Open
   Long Party), the Order may be filled at the prevailing           CFD if the Reference Security reaches a price you specify in the
   Reference Price where that price is equal to, or greater         Order (the ‘Stop-Loss Level’). We may accept this Order by
   than, the Limit Price.                                           Closing-out your CFD at the prevailing Reference Price when:
Limit Orders expire at the end of the Limit Order Period that       •• for a Long CFD, the Reference Price becomes equal to,
you select unless cancelled by either party.                           or less than, the Stop-Loss Level; or
                                                                    •• for a Short CFD, the Reference Price becomes equal to,
Market-to-Limit Order                                                  or greater than, the Stop-Loss Level.
This is an Order to enter into a new CFD or Close-out an            You should note that if the Reference Price moves
existing CFD at the best prevailing price at which the Reference    suddenly, it is possible that Stop-Loss Orders may not be
Security is being offered for sale or bought respectively on        filled, or may be filled at a different price to that specified
the ASX. If there is not a sufficient quantity of the Reference     by you, and that you may suffer loss as a result.
Security at the best prevailing offer or bid price matching your
Market-to-Limit Order, your Order for the remaining quantity will   Stop-Loss Orders are valid until accepted by us or cancelled
remain unaccepted and will be treated as a Limit Order at that      by either party.
original best prevailing offer or bid price.
                                                                    Guaranteed Stop-Loss Order (over CFDs)
Market-to-Limit Orders are valid until accepted by us or
cancelled by either party.                                          A Guaranteed Stop-Loss Order (‘GSL Order’) is a request to
                                                                    enter into a binding commitment to Close-out a given CFD at
For example, you decide to place a Market-to-Limit Order to
Open 1,000 XYZ Long CFDs. The best current ‘offer’ price            a specified price (the ‘GSL Level’) during the GSL Period if:
(ie the lowest price at which someone is prepared to sell an
                                                                    •• for a Long CFD, the Reference Price is equal to or less
XYZ share on the ASX) is $10.00 per share. There are 600
                                                                       than the GSL Level; or
XYZ shares available on the ASX at this price. Your Order may
be accepted for 600 XYZ Long CFDs at $10.00. The rest of            •• for a Short CFD, the Reference Price is equal to or greater
your Order (ie for the 400 XYZ Long CFDs that have not been            than the GSL Level.
accepted) will only be accepted if another offer is entered into
                                                                    A GSL Premium is payable by you should your GSL Order
the market at $10.00 or lower.
                                                                    be accepted. For more information on GSL Premiums, see
                                                                    Section 4.3.
Trigger Order
                                                                    When Opening or reviewing a CFD, you should consider
This is an Order requesting the placement of a Market-to-           whether a Stop-Loss Order or GSL Order would be
Limit or Limit Order2� if a particular event (a ‘Trigger Event’)    appropriate for that position.
occurs. You specify the Reference Security and a specified
Reference Price at which you would like the Trigger Event to        The following are important matters you should consider
occur (the ‘Trigger Level’), and whether the Reference Price        before placing a GSL Order:
must be above or below (or equal to) the Trigger Level for the
Trigger Event to occur. If a Trigger Event occurs, the Market-
to-Limit or Limit Order is placed as applicable and operates as
a normal Order of that type.




2
    If these Order types are available.



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