(d) When placing the Order, the Investor must set out details of:
(i) whether the Investor intends to be the Long Party or the Short Party under the Order and the CFD;
(ii) the relevant Reference Security;
(iii) the CFD Quantity;
(iv) the Order type; and
(v) any other information applicable to the Order as may be required by Macquarie from time to time.
(e) Where the CFD Trading Account is a Loss Limiter Account, each Order placed by the Investor (other than an Order to Close Out) must be accompanied by a corresponding
Guaranteed Stop-Loss Order.
(f) No CFD is created or Closed Out until the Investor’s Order is accepted by Macquarie in accordance with Condition 3.4 below.
(g) Where a Market Order, Market-to-Limit Order or Limit Order is placed by an Investor that is an Opposite Position to an existing CFD position of the Investor:
(i) the Market Order, Market-to-Limit Order or Limit Order will be treated as a request to Close Out the CFD position to the extent that the CFD Quantity of the Market Order, Market-to-Limit Order or Limit Order offsets the CFD Quantity of the existing CFD position; and
(ii) to the extent that the CFD Quantity of a Market Order, Market-to-Limit Order or Limit Order exceeds the CFD Quantity of the CFD position, this will be treated as a Market Order, Market-to-Limit Order or Limit Order for a new CFD with a CFD Quantity equal to the amount of this excess.
3.4
Acceptance of Order
(a) Macquarie may in its sole discretion accept an Order in whole or in part or refuse to accept an Order for any reason. Macquarie will be taken to have accepted an Order as soon as it enters into any arrangement to hedge its exposure under the CFD resulting from acceptance of the Order or otherwise at the time it records the transaction concerning the CFD in its records.
(b) Where the CFD Trading Account is a Loss Limiter Account, Macquarie will not accept an Order to open a new CFD position unless the Order is accompanied by a corresponding Guaranteed Stop-Loss Order.
(c) An Order will be binding on the Investor upon the acceptance by Macquarie of the Order. The Investor acknowledges that Macquarie may accept an Order in accordance with this
Condition 3.4 without any notice of acceptance, aside from the Confi rmation, being given to the Investor.
Section 10
Terms and
Conditions
38
(d) If Macquarie decides not to accept an Investor’s Order to enter into a CFD or to Close Out a CFD, Macquarie will advise the Investor of that decision.
3.5
Confi rmations
(a) If Macquarie accepts an Order, Macquarie will send an Investor a Confi rmation.
(b) A failure by Macquarie to send the Investor a Confi rmation will not affect the validity of the CFD or Close Out.
(c) The Investor authorises Macquarie to:
(i) send Confi rmations in electronic form, on the basis that neither of them guarantees the security, confi dentiality or absence of viruses or other harmful material in electronic communications;
(ii) where permitted by law, send a single Confi rmation for a series of transactions; and (iii) issue a replacement Confi rmation or
statement to correct an error or omission, if required by law.
(d) If there is a confl ict between:
(i) the Transaction Documents; and (ii) Macquarie’s records of the transaction
concerning a CFD or an Order, Macquarie’s records of the transaction concerning a CFD or an Order will prevail.
3.6 Errors
If within fi ve Business Days of acceptance of an Order, Macquarie determines that any terms of the CFD or Guaranteed Stop-Loss protection are materially incorrect, then without prejudice to any other rights of the parties:
(a) Macquarie will Close Out the CFD and/or cancel the Guaranteed Stop-Loss protection;
(b) Macquarie will give notice to the Investor of the error and the Close Out of the CFD and/or the cancellation of the Guaranteed Stop-Loss protection as soon as reasonably practicable;
(c) each party must promptly refund any amounts paid in respect of the CFD or Guaranteed Stop-Loss protection,
and neither party will have any further obligation in respect of the CFD or the Guaranteed Stop-Loss protection.
3.7
Order types
(a) When placing an Order under Condition 3.3, an Investor may specify any of the following types of Orders:
(i) “Market-to-Limit Order”
(ii) “Limit Order”;
(iii) “Stop-Loss Order”;
(iv) “Trigger Order”;
(v) “Guaranteed Stop-Loss Order”; and (vi) any other Orders described on the
Macquarie CFD Website from time to time, which may include a Market Order or Take-Profi t Order.
Some Order types may not be available at a given point in time. Further, certain Order types will only be available for selected Reference Securities. A full list of the Order types and Reference Securities that are currently available is published by Macquarie on the Macquarie CFD Website.
3.8
Market Orders
(a) Where an Investor specifi es that an Order is a Market Order, the Investor offers to Open a CFD or requests the Close Out of an Open CFD in respect of the Reference Security at whatever Reference Security Price Macquarie determines is necessary to allow the Order to be accepted, having regard to the relevant quantities bid and offered on the ASX at that time.
(b) The Market Order is open for acceptance by Macquarie for an indefi nite period until the Market Order is cancelled by the Investor.
(c) Subject to Condition 3.4(a), Macquarie may accept the Market Order. The price at which Macquarie accepts a Market Order to enter into a CFD will be the Reference Security Price.
3.9
Market-to-Limit Orders
(a) If an Investor specifi es that an Order is a Market-to-Limit Order, the Investor offers to Open a CFD or requests the Close Out of an Open CFD in respect of the CFD at the best prevailing bid (where the Order is to Open a Long CFD or Close Out a Short CFD) or offer (where the Order is to Close Out a Long CFD or Open a Short CFD) Reference Security Price.
39 (b) If Macquarie does not completely accept the
Order (because there is not a suffi cient quantity of securities at the best prevailing offer (or bid) Reference Security Price to match the Order completely) the remaining quantity will remain un-accepted and will be treated as a Limit Order at the original best prevailing offer (or bid) Reference Security Price.
(c) The Market-to-Limit Order is open for
acceptance in accordance with this Condition 3 for an indefi nite period until the Market-to-Limit Order is cancelled by the Investor.
3.10 Limit Orders
(a) Where an Investor specifi es that an Order is a Limit Order, the Investor offers to enter into a CFD in respect of the Reference Security or requests the Close Out of an open CFD at the Limit Price or better at any time during the Limit Order Period in accordance with Condition 3.10(d).
(b) The Limit Order is open for acceptance by Macquarie for the Limit Order Period.
(c) The Limit Order Period is specifi ed by the Investor as extending to either party: (i) the next Closing Time; or
(ii) an indefi nite period until the Limit Order is cancelled by the Investor.
(d) Subject to Condition 3.4(a) Macquarie may accept the Limit Order:
(i) where the Investor will be the Long Party under the CFD or where the Investor is requesting the Close Out of a CFD to which the Investor is the Short Party, where the Reference Security Price is less than or equal to the Limit Price during the Limit Order Period; or
(ii) where the Investor will be the Short Party under the CFD or where the Investor is requesting the Close Out of a CFD to which the Investor is the Long Party, where the Reference Security Price is greater than or equal to the Limit Price during the Limit Order Period.
3.11
Stop-Loss Order
(a) Where an Investor specifi es that an Order is a Stop-Loss Order, the Investor requests Macquarie to Close Out a CFD where the Reference Security Price is at or beyond the Stop-Loss Level in accordance with Condition 3.11(d).
(b) The Stop-Loss Order is open for acceptance by Macquarie for an indefi nite period until the Stop-Loss Order is cancelled by the Investor.
(c) A Stop-Loss Order can be made with reference to an Open CFD position, or with reference to a Market Order, Market-to-Limit Order or a Limit Order. In the case of a Stop-Loss Order in respect of a Market Order, Market-to-Limit Order or Limit Order, the Stop-Loss Order can only be accepted by Macquarie after the Market Order, Market-to-Limit Order or Limit Order has been accepted.
(d) Subject to Condition 3.4(a) Macquarie may accept the Stop-Loss Order by Closing Out the CFD:
(i) where the Investor is the Long Party, where the Reference Security Price is less than or equal to the Stop-Loss Level; or
(ii) where the Investor is the Short Party, where the Reference Security Price is greater than or equal to the Stop-Loss Level.
3.12
Trigger Order
(a) If an Investor specifi es that an Order is a Trigger Order, the Investor requests Macquarie to place a Market, Market-to-Limit or Limit Order contingent on the occurrence of a Trigger Event in accordance with Condition 3.12.
(b) In placing a Trigger Order, the Investor must specify the following terms on which a Trigger Event may occur, being the:
(i) Reference Security;
(ii) Trigger Level; and
(iii) whether the Reference Security Price must trade equal to or above, or equal to or below, the Trigger Level for a Trigger Event to occur.
Section 10
Terms and
Conditions
40
(c) The Investor must also specify the terms of the Market, Market-to-Limit or Limit Order they wish to place based on the occurrence of a Trigger Event. The Investor may also place Stop-Loss, Guaranteed Stop-Loss or Take-Profi t Orders in respect of their Market, Market-to-Limit or Limit Order.
(d) If a Trigger Event occurs in respect of a Trigger Order that has not been cancelled, the Investor is taken to have placed a Market, Market-to-Limit or Market-to-Limit Order in accordance with
Condition 3.8, 3.9 or 3.10 (as appropriate) and that Order is open for acceptance in
accordance with Condition 3.4.
3.13
Take-Profi t Order
(a) If an Investor specifi es that an Order is a Take-Profi t Order, the Investor requests Macquarie to Close Out a CFD where the Reference Security Price is at or beyond the Take-Profi t Level in accordance with Condition 3.13(d).
(b) The Take-Profi t Order is open for acceptance in accordance with this Condition 3 for an indefi nite period until the Take-Profi t Order is cancelled by the Investor.
(c) A Take-Profi t Order can be made with reference to an Open CFD, or with reference to a Market, Market-to-Limit or Limit Order, including these Orders where they are part of a Trigger Order. In the case of a Take-Profi t Order in respect of a Market, Market-to-Limit or Limit Order, the Take-Profi t Order can only be accepted after the other relevant Orders have been accepted.
(d) Subject to Condition 3.13(a) Macquarie may accept the Take-Profi t Order by Closing Out the CFD:
(i) where the Investor is the Long Party, and where the Reference Security Price is greater than or equal to the Take-Profi t Level;
or
(ii) where the Investor is the Short Party, and where the Reference Security Price is less than or equal to the Take-Profi t Level.
3.14
Guaranteed Stop-Loss Order
(a) Where an Investor specifi es that an Order is a Guaranteed Stop-Loss Order, the Investor requests Macquarie to enter into a binding commitment to Close Out an Open CFD position at the GSL Level if the Reference Security Price trades at or beyond the GSL Level during the GSL Period, in accordance with Condition 3.14(f). As part of the Order, the Investor must specify a GSL Period and a GSL Percentage and will be advised of the indicative GSL Premium by Macquarie. The GSL Percentage is used in the calculation of the GSL Level.
(b) An offer to enter into a Guaranteed Stop-Loss arrangement can be made by an Investor with reference to an existing CFD position, or with reference to a Market Order, Market-to-Limit Order or a Limit Order that has not yet been accepted, including these Orders where they are part of a Trigger Order.
(c) Where the Guaranteed Stop-Loss Order is made with reference to an existing CFD position, the Order may be accepted by Macquarie immediately. Where the Guaranteed Stop-Loss Order is made with reference to a Market Order, Market-to-Limit Order or a Limit Order that has not yet been accepted, the Guaranteed Stop-Loss Order can only be accepted by Macquarie when Macquarie has accepted the Market Order, Market-to-Limit Order or Limit Order (whichever applies).
(d) Macquarie may at its sole discretion accept a Guaranteed Stop-Loss Order. Upon acceptance by Macquarie, the Investor must immediately pay the applicable GSL Premium to Macquarie and the GSL Period will commence once the GSL Premium has been received by Macquarie.
(e) The Guaranteed Stop-Loss shall apply until either:
(i) the CFD to which it relates is Closed Out by operation of the Guaranteed Stop-Loss or otherwise;
(ii) a subsequent Guaranteed Stop-Loss Order in respect of the same CFD is placed by the Investor and accepted by Macquarie; or (iii) GSL Expiry is reached,
whichever occurs fi rst.
41 (f) Subject to payment of the GSL Premium and
Condition 3.4(a), Macquarie will Close Out the CFD at the GSL Level:
(i) where the Investor is the Long Party, where the Reference Security Price is less than or equal to the GSL Level; or
(ii) where the Investor is the Short Party, where the Reference Security Price is greater than or equal to the GSL Level.
3.15
Cancellation of Orders
(a) An Order (or part of an Order) can be cancelled at any time prior to the Order (or that part of the Order) being accepted by Macquarie. Such a cancellation can be made by:
(i) the Investor, by giving notice of cancellation in a form acceptable to Macquarie; or (ii) Macquarie, by cancelling the Order (or the
relevant part of the Order) in Macquarie’s books and records.
(b) Where an Investor’s request to cancel an Order (or part of an Order) is not received by
Macquarie prior to acceptance of that Order (or the relevant part of the Order) by Macquarie the CFD or Close Out resulting from the acceptance of that Order shall be valid and binding under these Terms and Conditions.
(c) The Investor agrees and acknowledges that any action by the Investor to modify or cancel an Order (or part of an Order) otherwise than in accordance with Condition 3.15(a) will be ineffective.
3.16
No transfer of legal or benefi cial interest in the Reference Securities
The Investor agrees and acknowledges that a CFD does not transfer the legal or benefi cial interest in any Reference Security to or from the Investor and the Investor has no right or obligation to acquire or deliver the Reference Securities underlying a CFD.
4.