CommSec. FOR REFERENCE ONLY. OTC CFDs are currently unavailable. You will not be able to apply for this product at this time. YOU ARE WHAT YOU DO

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oTC CFDS

TraDing

ruleS anD

CounTry

guiDeS

YOU ARE WHAT YOU DO

FOR REFERENCE ONLY.

OTC CFDs are currently unavailable. You will not

be able to apply for this product at this time.

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investing in CFDs. A Product Disclosure Statement (PDS) for OTC CFDs is available from CommSec and can be acquired by calling 1300 307 853 or at commsec.com.au. You should consider the PDS before deciding whether to acquire this product. You should obtain your own financial, legal, taxation and other professional advice as to whether CFDs are an appropriate investment for you.

Commonwealth Securities Limited ABN 60 067 254 399 (“CommSec”) is the holder of Australian Financial Services Licence 238814. CommSec is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124.

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OTC CFD Trading Rules — Australia

and international markets

2

Before trading OTC CFDs with CommSec 2 The Direct Market Access (DMA) model 2

Costs 2

Internet trading rules 3

CommSec Electronic Trading Platform

functionality and filters

4

Placing orders 4

Australia

6

Market 6

Trading hours and phases 6

Corporate actions 6

Placing orders 7

Hong Kong

8

Market 8

Corporate actions 9

Duties and taxes 9

How SEHK matches bids and asks 9 Placing, amending and cancelling orders 9

Japan

12

Market 12

Corporate actions 12

Duties and taxes 13

How TSE matches bids and asks 13 Placing, amending and cancelling orders 14

Singapore

16

Market 16

Duties and taxes 17

How SGX matches bids and asks 17 Placing, amending and cancelling orders 17

New Zealand

19

Market 19

Duties and taxes 19

How NZX matches bids and asks 19 Placing, amending and cancelling orders 20

Appendix 1 — Australia

21 Appendix II — Hong Kong

22 Appendix III — Japan

23 Appendix IV — Singapore

24 Appendix V — New Zealand

25

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oTC CFD TraDing ruleS – auSTralia

anD inTernaTional markeTS

By trading OTC CFDs with CommSec, you will have access to trading on the Australian Securities Exchange (ASX) as well as some international markets. This guide outlines the trading rules for each participating stock exchange. It is important to note that market rules can change.

BEFORE TRADING OTC CFDS wITH COmmSEC

Over-the-counter contracts for difference (OTC CFDs) are highly leveraged products which carry significant risks. Before you trade OTC CFDs you must make sure that you have read and understood the CommSec OTC CFD Product Disclosure Statement (PDS). You will also need to read and sign a Client Agreement form, and fill in an application form. All these forms can be downloaded from commsec.com.au. In addition, before trading OTC CFDs with CommSec you will need to complete a test over the telephone.

THE DIRECT mARKET ACCESS (DmA) mODEl

There are two models available for trading OTC CFDs — the Direct Market Access (DMA) or Market Maker (MM) model. In the Market Maker model, you trade on synthetic prices that could potentially be very different from the real prices of the underlying security or instrument.

In the Direct Market Access (DMA) model, you trade at prices that exactly reflect the price of the underlying.

CommSec uses a Direct Market Access model to trade OTC CFDs. One of the main advantages of using this model is its transparency. You can watch underlying trades being executed on the particular stock exchange you are trading in, or check their place in the queue for limit orders.

All client OTC CFD orders are hedged in the physical share market. For each OTC CFD order a physical order in the underlying is routed electronically into the order book and executed on the relevant exchange. The physical holding is then converted into a CFD by the Hedger and execution of your trade is confirmed, all in real time.

Because of this OTC CFDs can only be traded when the underlying market is open and the costs of trading reflect the costs of trading in the underlying equity.

COSTS

Full details of brokerage rates, currency conversion costs, interest charges OTC CFD cash flows and Electronic Trading Platform charges are given in the PDS.

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The following charges only apply to the CommSec Electronic Trading Platform if you elect to access live data for international markets by signing a Reuters Service Contract:

International markets

For international markets that you nominate to receive data for the following charges (including GST) will be incurred in the nominated currency, but charged against your account in AuD equivalent. These fees are payable even if you do not log on to the Electronic Trading Platform during the month.

Exchange fees

Country Exchange Exchange fees Currency Period

Japan – Tokyo TSE 2310 JPY per month

Japan – Osaka OSE 1155 JPY per month

Hong Kong SEHK 231 HKD per month

Singapore SGX 51.98 SGD per month

New Zealand NZX Access Fee 27.50 AuD per month

New Zealand NZX 82.50 NZD per month

Reuters

Number of exchanges market data cost Currency Period

1–2 11.00 uSD per month

Interest payments

The Applicable Base Rate for calculation of interest payments in each country and the relevant time frames are as follows. The interest rate is determined by CommSec in its sole discretion: please refer to the PDS.

Country Applicable Base Rate of interest Time frame

Australia RBA Overnight

Hong Kong HIBOR One week

Japan JPY LIBOR Weekly

Singapore SIBOR Monthly

New Zealand RBNZ Overnight

INTERNET TRADING RulES

•

You accept personal responsibility for transactions conducted on behalf of any of your accounts once you have logged on.

•

You should sign out of every browser session you have opened when leaving a terminal unattended to avoid unauthorised access.

•

You are encouraged to change passwords frequently.

•

After sending an order, you must check for a change in the order type to ‘OK’. until this stage is reached, your order may not be working in the market.

If you are unsure about any order you have placed, please contact the CommSec OTC CFD trading desk on 1300 307 853.

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CommSeC eleCTroniC TraDing

PlaTForm FunCTionaliTy anD

FilTerS

THE FOllOwING DETAIlS APPly TO TRADING ON All mARKETS uNlESS

INDICATED OTHERwISE.

PlACING ORDERS

You are responsible for monitoring the status of your order by either contacting the CommSec OTC CFD trading desk if trading by phone, or by viewing the Order Status/Traded Orders window on the CommSec Electronic Trading Platform. Even if you have submitted an order via the CommSec CFD Trading Account, this is never a guarantee that the corresponding contract has been placed in the market by CommSec. All orders placed via the CommSec Electronic Trading Platform are subject to checking by our sophisticated credit and risk management system. Each order is verified against pre-defined rules. As a result, some orders may be rejected electronically due to one or more of these rules being breached.

CommSec has ASX and Corporations Act obligations to ensure our clients maintain an orderly market. Accordingly, we reserve the right to refuse any order. Orders may not be accepted by our systems for various reasons, including if you have numerous orders in the market for the same stock or your order prices are too distant from the last executed price.

In some instances, your order may be referred for manual review. While these orders are being reviewed by an operator, you will be unable to amend or cancel the order.

For specific details about placing, amending and cancelling orders for each market, please refer to the section on that market.

Fat Finger limits

All trading accounts may be set an automatic order limit. These are given in the information for each market below.

Concurrent bid/offer

All trading accounts may only have four (4) concurrent bids and/or offers in the same CFD stock name at one time. Any attempt to place more than four bids and/or offers in the same security will be automatically rejected, citing “user J Bloggs already has 4 or more concurrent bids and/or offers.”

Example of Concurrent Bid/Offer message Time message

06-03-06 15:55:27

user – JBLOGGS already has four or more concurrent bids. Must be authorised.

Free Equity check

This check ensures that the account has sufficient Free Equity to complete the order. The system calculates this using ‘smart last’ (the current median point of bid, ask or last). The only exception to this rule is during the opening/closing auction period where ‘match price’ is used. If you place an opening order into the CommSec Electronic Trading Platform which requires more Initial Margin than is available, the order will automatically be rejected, citing ‘Insufficient Free Equity’. If Free Equity is negative, you will only be able to place an order closing your position until the Free Equity is positive again.

Restricted stocks

From time to time, CommSec may be restricted in the type or number of shares in which we are entitled to trade. If that occurs, we will notify you of the relevant restrictions. Please refer to the Margin Table in the CommSec Electronic Trading Platform for more details.

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Security cannot be short sold

As a result of some corporate actions or the unavailability of the stock to borrow, CommSec may restrict clients from short selling CFDs over certain securities. If you try to sell a security which is currently hard to borrow, the order will automatically be rejected, citing “Security cannot be short sold”. (Please see Margin Table in “Portfolio Window” of CommSec Electronic Trading Platform for a complete list of stocks that are currently subject to short selling restrictions. This list is updated daily.)

There may also be specific rules relating to short selling in the different markets. Refer to the section on each market for details.

CommSec may also pass on an additional fee for short positions held overnight in stocks where CommSec incurs additional financing costs to borrow the stock in the secondary market.

Price tolerance (Valid Price Steps: Bid/Ask — seven limit)

The number of price steps allowed through the offer or bid price has been set to a maximum of seven. An order must exist on the opposite side of the market for this to trigger. This filter is designed to prevent orders from entering the market and trading immediately at prices further away from the current market. Orders that breach this filter will be rejected with a Price Tolerance Message. During the pre-market/post-market auction period, where a single match price is used as the reference point (as opposed to bid/ask), this tolerance is limited to seven price steps higher/lower than the indicative match price (if one exists).

Example of Price Tolerance message Time message

06-03-06 15:55:27

CFD.DL denied order because Price difference of 70 steps, only allowed a maximum of 7 steps from current price.

Price tolerance (Order exceeds 3% of underlying stock price)

This refers to the distance from the current last price, in percentage terms, allowed for an order before it breaches the filter. This limit has been set at 3%. Therefore, a buy order will breach the filter if the order price is above the last price by greater than 3%. For sell orders it will be vice versa. Orders that breach this filter require manual intervention by a dealer. This filter does not apply to the “trigger” price of a One Cancels the Other (OCO) but does apply to the “limit” price.

Example of Exceeding 3% of stock price message Time message

06-03-06 15:55:27

This order has been denied as the order prices is 12.5% above or below the current stock price. The system only allows a 3% difference from the current price.

ledger postings

Any ledger postings, such as commission charges, long interest/short rebates, and dividend adjustments for trades are not reflected in your equity figures until the following business day. Your Gross Liquidation Value (GLV) and Free Equity balances will be displayed in the base currency (AuD by default) of your portfolio.

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auSTralia

mARKET

The Australian Securities Exchange (ASX) is listed as one of the world’s top 10 exchange groups.

TRADING HOuRS AND PHASES

The ASX has set the following opening times, but reserves the right to vary these times. Hours are AEST. Trading is conducted Mondays to Fridays (excluding public holidays) at the following times:

market Phase Time Notes

Pre-Opening Session

7:00 am to 10:00 am During the pre-opening, you may enter orders into Integrated Trading System (ITS) in preparation for the market opening. The orders are queued according to price-time priority and will not trade until the market opens.

Market Open 10:00 am to 10:09 am The opening is sometimes referred to as the ‘opening auction’ or ‘opening match out’. Securities open in five groups, according to the starting letter of the ASX code:

Group CFD starts with Opening time

1 A–B 10:00:00 am

2 C–F 10:02:15 am

3 G–M 10:04:30 am

4 N–R 10:06:45 am

5 S–Z 10:09:00 am

The time is randomly generated by ITS and occurs up to 15 seconds on either side of the times listed in the above table. For example, Group 1 may open at any time between 9:59:45 and 10:00:15 AEST.

Normal Trading 10:10 am to 4:00 pm Normal trading takes place from 10:10 am to 4 pm AEST. You may enter orders in ITS during this time. ITS matches the orders against each other, resulting in execution of trades. The vast majority of trades take place during normal trading.

Market Close 4:00 pm to 4:10 pm* The end of trading day is sometimes referred to as a ‘closing price auction’ or ‘closing match out’. The market generally closes at 4:00 pm AEST. In some circumstances, trading may continue after this time. Trading ceases but you may enter, change and cancel orders in preparation for the market closing. After hours

order placement

4:11 pm to 7:00 am Any orders placed after 16:11:00 will enter a queue for

authorisation by a CommSec dealer and will be placed into the market from 7:00 am on the following business day.

* The closing auction phase is short (usually a few seconds) and occurs at a random time between 16:10:00 and 16:11:00.

CORPORATE ACTIONS

The most common types of corporate actions are dividends, bonus and rights issues, mergers, stock splits/ distributions and tenders. Corporate actions are usually announced two or three weeks before the ex-date. The record (books close) date is five (5) business days after the ex-date.

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PlACING ORDERS

Placing an order via the CommSec Electronic Trading Platform is not a guarantee that the corresponding contract has been placed in the market by CommSec. You must always refer to the Order Status window for confirmation of the status of your orders as some orders may be rejected electronically (see ‘Order rejections’ below).

There are two types of order:

•

Limit; and

•

Contingent orders. limit orders

All OTC CFD orders placed with CommSec via phone or the CommSec Electronic Trading Platform are set to a default timeline of Good Till Cancelled (GTC) unless stated or adjusted otherwise to Good For Day (GFD).

•

Good for Day orders remain current only during the day on which they are made. All orders not filled by the time the market closes will be deleted automatically.

•

GTC orders remain in the market until filled or manually cancelled by the broker or client.

•

GTC orders are live and active during the pre- and post-auction matches.

•

GFD orders are purged by the ASX at 7:00 pm.

Any limit order created and amended after 4:11 pm will have the status of ‘AuTHORISING’. It will be dated the following trading day and released to the ASX at 7:00 am on that day.

Contingent orders

Contingent orders are orders that you can create which will be placed in the market when specific market conditions are met. For example, you can create a contingent order to sell when a security falls to a certain price. This is known as a ‘Falling Sell’ order, and may be used to help manage your OTC CFD positions. You must be aware, however, that contingent orders are not guaranteed. If the underlying security price moves suddenly, your order may not be filled, or may be filled at a price different to that specified by you, and you may suffer losses as a result.

Order rejections

See ‘Placing orders’ on page 4. Fat Finger limits

All trading accounts may be set an order limit of AuD250,000 unless you have requested otherwise. Any order placed to a value greater than AuD250,000 may be rejected.

Increased order volume

under the ASX Rules, once an order has been placed into the ITS order book the volume cannot be increased. If you attempt to increase the volume of your order, you will receive a ‘FAILED’ message. This message applies to your amendment only — your original order is still alive and active.

To trade a greater volume, you can either create a new order for the extra volume, or delete the order and start again.

ASX price increments

Current CFD price Price increments

0.1¢ to 9.9¢ 0.1¢

10¢ to $1.995 0.5¢

$1.996 < $999 1.0¢

$999 or more $1.00

Note: CommSec Electronic Trading Platform does not accept decimal places for order entry, except for partial cents. (For example: BPT on the ASX is quoted as 1.34/1.345, on the CommSec Electronic Trading Platform it is quoted as 134/134.5.)

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Hong kong

mARKET

The Stock Exchange of Hong Kong (SEHK) was formed in 1980 when four exchanges were unified. It commenced trading via an electronic system in April 1986.

The exchange has developed from a largely domestic operation to a major international securities market. With market capitalisation of nearly HKD5.06 trillion*, the Hong Kong stock market ranks as the ninth largest exchange in the world, and after Japan is the second largest in Asia.

* as at 4 March 2006.

TRADING HOuRS AND PHASES

Hong Kong is two hours behind Sydney (AEST -2). Hong Kong is eight hours ahead of London (GMT +8). Trading is conducted Mondays to Fridays (excluding public holidays) at the following times:

Pre-Opening Session

9:30 am to 9:50 am CommSec’s DMA facility is available during the Pre-Opening Session. Access to this session is configured individually for clients.

Order input period

9:30 am to 9.45 am During the order input period. SEHK allows:

•

Entry of new bids or asks (both at-auction orders and at-auction limit orders)

•

Order amendments and/or cancellations

•

Short sale orders are not permitted. Pre-order

matching period

9:45 am to 9:50 am During the pre-order matching period, SEHK allows:

•

Entry of new bids or asks (at-auction orders only)

•

Amendments and cancellations of orders are not permitted.

•

Short sale orders are not permitted. Order matching

period

9:50 am to 9:58 am During the order matching period, the entry of new bids or asks is not permitted, and existing orders cannot be amended or cancelled. Blocking period 9:58 am to 10:00

am

During the blocking period, the entry of new bids or asks is not permitted, and existing orders cannot be amended or cancelled. Continuous

Trading — Morning Session

10:00 am to 12:30 pm

During the Continuous Trading Session, SEHK allows:

•

Entry of new bids or asks

•

Trade cancellations and enquiries. Extended

Morning Session

12:30 pm to 2:30 pm Closed for lunch period.

From 2:00 pm SEHK allows the cancellation of orders entered in the Morning Session.

Continuous Trading — Afternoon Session

2:30 pm to 4 pm During the Continuous Trading Session, SEHK allows:

•

Trade cancellations and enquiries. Closing Auction

—

order input period

4:00 pm to 4:08 pm During the order input period, SEHK allows:

•

Entry of new bids or asks (both at-auction orders & at-auction limit orders)

•

Short sale orders are not permitted Closing Auction

—

order matching period

4:08 pm to 4:10 pm During the order matching period, the entry of he new bids or asks is not permitted, and existing orders cannot be amended or cancelled.

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It is NOT possible to enter orders which will create short positions before or during the pre-market auction process. Any orders designed to create short positions must be entered into the market after the official open.

Note that special rules apply to market opening hours if Hong Kong is affected by typhoons or severe rainstorms. In such circumstances, SEHK may be closed for trading and the opening or closing times of market phases may vary according to prescribed rules. For details, please refer to hkex.com.hk.

CORPORATE ACTIONS

The most common types of corporate actions are dividends, bonus and rights issues, mergers, stock splits/ distributions and tenders. Corporate actions are usually announced two or three weeks before the ex-date. The record date is one business day after the ex-date, and the book-closed date is one business day after the record date.

The standard CommSec CFD procedure outlined in the OTC CFD Client Agreement applies. (Note: Withholding tax is not currently applicable to the Hong Kong market.)

DuTIES AND TAXES

Stamp duties and transaction levies are payable on transactions by both BuyER and SEllER. The stamp duty is charged at 0.1125% of the consideration by the Inland Revenue Department of Hong Kong. The stamp duty charge is built into the CommSec brokerage rate.

HOw SEHK mATCHES BIDS AND ASKS

Trades on SEHK must generally be executed using the Automatic Order Matching and Execution System (AMS/3). All orders submitted using CommSec’s DMA facility will be processed.

Orders are continuously normally executed in strict order according to order type, price and time priority. Order type

During the Pre-Opening Session, at-auction orders will have a higher matching priority than at-auction limit orders, regardless of the price specified and the time entered into the system. An at-auction order is an order with no specified price and execution of the trade will be done at the final Indicative Equilibrium Price (or IEP, described in more detail below). An at-auction limit order is an order with a specified price.

Price

For at-auction limit orders submitted in the Pre-Opening Session, and all orders submitted into the

Continuous Trading Session, a bid order with a higher specified price will have priority over a bid order with a lower specified price; and an ask order with a lower specified price will have priority over an ask order with a higher specified price. In each case, this will be irrespective of the time the order is entered into the system.

Time

For orders of the same type (and price, in the case of limit orders), the order entered into the system at an earlier time will be executed in full before an order at the same price entered at a later time is executed.

PlACING, AmENDING AND CANCEllING ORDERS

See the general section on placing orders on page 4. Placing orders

All Hong Kong orders placed using the CommSec Electronic Trading Platform are good for day only (GFD). This means they remain current only during the day on which they are made. All orders not filled by the time the market closes will be deleted automatically.

For partially filled orders, the DMA facility will send a Done for Day message, indicating the details of the part of the order that has been filled.

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Contingent orders (COs)

All contingent orders are GTC orders. They cannot be set to any other lifetime. As COs remain on the CommSec server until triggered or cancelled, their lifetime is open-ended. Currently, the LIMIT order that COs send to SEHK once triggered is GFD. Therefore once a CO is triggered if it is not filled by the end of the day, the order for the balance will be purged by the AMS.

If a contingent order is triggered and is designed to open a short position, and it does not meet the market rules for short selling, the order will be rejected.

Specifications

The SEHK has laid down certain rules on the specifications applicable to orders placed in the market. In particular, there are rules restricting the price and volume specified for an order.

For this purpose, the spread applicable to a stock will depend on the prevailing price of the stock:

Price of Stock Spread

From HK$ 0.01 to HK$ 0.25 HK$0.001 Over 0.25 to 0.50 0.005 Over 0.50 to 2.00 0.010 Over 2.00 to 5.00 0.025 Over 5.00 to 10.00 0.050 Over 10.00 to 20.00 0.050 Over 20.00 to 100.00 0.050 Over 100.00 to 200.00 0.100 Over 200.00 to 500.00 0.200 Over 500.00 1,000.00 0.500 Over 1,000.00 to 2,000.00 1.000 Over 2,000.00 to 5,000.00 2.000 Over 5,000.00 to 9,995.00 5.000 Opening quotations

If the order is the first order entered into the trading system on each trading day, the “opening quotation” rule would apply. This means that the first order (whether bid or ask) must not deviate nine price steps or more from the previous closing price.

If the opening order is made in the Continuous Trading Session, where there has been no first ask of the day, the first bid price must also be higher than or equal to the previous closing price minus eight spreads; or where there has been no first bid of the day, the first ask price must be lower than or equal to the previous closing price plus eight spreads.

Volume — round lots

In some markets there is a minimum order size (minimum lot) and orders may also have to be in a round multiple (or lot). Only orders for round lots are accepted by our DMA facility. The size of a round lot will vary according to the underlying stock over which the CFD is created.* Therefore, ALL orders must be equivalent to at least one round lot — or multiples thereof.

* As communicated by the SEHK

Please refer to the CommSec CFD Trading Account Margin table (or order ticket) for further details. Short selling

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Amending orders

An order may be amended during the Pre-Opening Session (other than at certain specified times — see “Trading hours and phases” on page 8) and the Continuous Trading Session prior to it being filled. The following fields in an order may be amended:

•

Price

•

Volume

•

Type

•

Expiry

Cancelling orders

An order may be cancelled at any time (other than at certain times in the Pre-Opening Session — see “Market hours and phases” on page 8) prior to being filled. However, all orders cancelled during the 12:30 to 14:30 lunch period are not confirmed by the SEHK until 14:00.

Fat Finger limits

All trading accounts may be set an order limit of HKD1.5M (unless otherwise requested by the client). Any order placed to a greater value than HKD1.5M may be rejected.

Going from long to short (or short to long)

under SEHK rules, you must first close out your existing position before entering one in the opposite direction. For example, if you have a long position that you wish to turn around to a short position, you must close out your existing position and then enter a new order to enter the short trade.

Example of Message

Time message

06-03-06 15:55:27

Order Status — CFDGLOBAL Selling 0857.HK for 12345 – Security needs to be closed out first.

Increase order volume

under the SEHK rules, once an order is placed into the SEHK order book the volume may be increased. However, this may cause you to lose queue position.

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JaPan

mARKET

The Tokyo Stock Exchange (TSE) was formed in 1949 and is one of the largest stock exchange markets in the world by monetary volume, second only to the New York Stock Exchange. It currently lists over 2,200 domestic and foreign companies with a total market capitalisation of over uSD3 trillion.

One of the main advantages of using this market is its transparency. You can watch your trades being executed on the TSE, or check your place in the queue for limit orders.

Orders in Japan are combined: that is, at each price you can only see total depth. If there is 1,000 on the bid and I place a buy order at the same price for 200, the volume on the bid will now show 1,200. However, the number of buyers will always show as 1. You cannot break down each bid as you can in Australia.

TRADING HOuRS AND PHASES

Tokyo is one hour behind Sydney (AEST -1). Tokyo is nine hours ahead of London (GMT +9).

Pre-Opening Session

Morning Session

8:00 am to 9:00 am CommSec’s DMA facility is available during the Pre-Opening Session. Access to this session is configured individually for clients. During the order input period, TSE allows:

•

Entry of new bids or asks (both auction orders and at-auction limit orders)

•

Order amendments

•

Order cancellations

•

Short sale orders are not permitted. Continuous

Trading – Morning Session

9:00 am to 11.00 am During the order input period, TSE allows:

•

Entry of new bids or asks (at-auction orders only)

•

Amendments of orders are not permitted

•

Cancellations of orders are not permitted

•

Short sale orders are not permitted. Closed 11:00 am to 12:30 pm Closed for lunch period.

Pre-Opening Session

Afternoon Session

12:05 pm to 12:30 pm TSE allows the cancellation of orders entered in the Morning Session.

Continuous Trading —

Afternoon Session

12:30 pm to 3:00 pm During the Continuous Trading Session, TSE allows:

•

Order amendments

•

Order cancellations

•

Trade cancellations

•

Enquiries.

CORPORATE ACTIONS

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DuTIES AND TAXES

Stamp duty is not currently applicable to CFD trading in Japan.

HOw TSE mATCHES BIDS AND ASKS

Trades on TSE must generally be executed using the automatic order matching. All orders submitted using CommSec’s DMA facility will be processed.

Priority of normal orders

Orders are continuously normally executed in strict order according to order type, price and time priority (there are exceptions — see “ Simultaneous Orders” below).

For orders of the same type (and price, in the case of limit orders), the order entered into the system at an earlier time will be executed in full before an order at the same price entered at a later time is executed. Simultaneous orders

Orders are normally executed on the basis of price and time priority. However, in the following circumstances orders are treated as simultaneous orders and time priority is ignored:

•

All orders placed before the opening price is determined.

•

All orders placed before the determination of the initial price after resumption of trading due to a temporary trading halt.

•

All orders at the daily limit price, which will be executed with market orders at the closing price of the afternoon session (or the morning on half-day holidays).

Note: All remaining orders from the morning session are treated as simultaneous orders at the beginning of the afternoon session.

Apart from those given in the third point above, these simultaneous orders are executed according to a four-step mechanism determined by TSE as set out below.

Distribution of simultaneous orders: Step Description

1 TSE totals up the orders from each Trading Participant and arranges them in descending order from the Trading Participant with the largest order. Shares are then distributed until each Trading Participant receives five trading units.

2 Following the order determined in Step 1, each Trading Participant then receives shares equal to a third of the remaining portion of its order. (Fractions are rounded up to the nearest trading unit). 3 Following the order determined in step 2, each Trading Participant then receives shares equal to one half of the remaining portion of its order. (Fractions are rounded up to the nearest trading unit.)

4 Following the order determined in Step 3, each Trading Participant then receives the remaining portion of its order. Thus simultaneous orders are executed in proportion to the total amount of each Trading Participant’s orders. Trading Participants then distribute the shares among their customers according to their own internal guidelines.

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PlACING, AmENDING AND CANCEllING ORDERS

See page 4.

Placing orders

All Japanese Limit orders placed using the CommSec Electronic trading platform are good for day only (GFD). That is, they remain current only during the day on which they are made. All orders not filled by the time the market closes will be deleted automatically.

Contingent orders (COs)

All contingent orders are GTC orders. They cannot be set to any other lifetime. As COs remain on the CommSec server until triggered or cancelled, their lifetime is open-ended. Currently, the LIMIT order that COs send to TSE once triggered is GFD. Once a CO is triggered, if it is not filled by the end of the day the order for the balance will be purged by the TSE.

If a contingent order is triggered and is designed to open a short position, and it does not meet the market rules for short selling, the order will be rejected.

Specifications

The TSE has laid down certain rules on the specifications applicable to orders placed in the market. In particular, there are rules restricting the price and volume specified for an order. For this purpose, the spread applicable to a stock will depend on the prevailing price of the stock.

Price of Stock (¥) Spread

From 0 to 2,000 ¥1 Over 2,000 to 3,000 ¥5 Over 3,000 to 30,000 ¥10 Over 30,000 to 50,000 ¥50 Over 50,000 to 100,000 ¥100 Over 100,000 to 1,000,000 ¥1000 Over 1,000,000 to 20,000,000 ¥10,000 Over 20,000,000 to 30,000,000 ¥50,000

Over More than 30m ¥100,000

Opening quotations

If the order is the first order entered into the trading system on each trading day, the “opening quotation” rule would apply. This means that the first order (whether bid or ask) must not deviate nine price steps or more from the previous closing price.

If the opening order is made in the Continuous Trading Session, where there has been no first ask of the day, the first bid price must also be higher than or equal to the previous closing price minus eight spreads; or where there has been no first bid of the day, the first ask price must be lower than or equal to the previous closing price plus eight spreads.

Only orders for round lots are accepted by our DMA facility. The size of a round lot will vary according to the underlying stock over which the CFD is created. Therefore, ALL orders must be equivalent to at least one round lot — or multiples thereof.

“Please refer to the CommSec CFD Trading Account Margin table (or order ticket) for further details. Short selling

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Amending orders

An order may be amended during the Pre-Opening Session (other than at certain specified times — see “Market hours and phases” on page 12) and the Continuous Trading Session prior to it being filled. The following fields in an order may be amended:

•

Price

•

Volume

•

Type

An order may be cancelled at any time (other than at certain times in the Pre-Opening Session — see “Trading hours and phases” on page 12) prior to being filled.

Going from long to short (or short to long)

under TSE rules, you must first close out your existing position before entering one in the opposite direction. For example, if you have a long position that you wish to turn around to a short position, you must close out your existing position and then enter a new order to enter the short trade.

Example of Message Time message 06-03-06

15:55:27

Order Status — CFDGLOBAL Selling 6758.T for 12345 – Security needs to be closed out first.

under the TSE rules, once an order is placed into the TSE order book the volume may be increased. However, this may cause you to lose queue position.

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SingaPore

mARKET

The Singapore Exchange Limited (SGX) is the Asia-Pacific’s first demutualised and integrated securities and derivatives exchange.

SGX was inaugurated on 1 December 1999, following the merger of two established and well respected financial institutions — the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).

SGX owns and operates an integrated securities exchange and derivatives exchange and their related clearing houses. Its exchanges have a presence and prominence that extends beyond the borders of Singapore.

All client OTC CFD orders are hedged in the physical share market. For each OTC CFD order a physical order in the underlying is routed electronically into the order book and executed on the SGX. The physical holding is then converted into a CFD by the Hedger and execution of your OTC CFD trade is confirmed, all in real time. One of the main advantages of using this model is its transparency. You can watch the underlying equity trades being executed on the SGX, or check their place in the queue for limit orders.

TRADING HOuRS AND PHASES

Singapore is two hours behind Sydney (AEST -2). Singapore is eight hours ahead of London (GMT +8). Trading is conducted Mondays to Fridays (excluding public holidays) at the following times:

Pre-Opening Session

Morning Session

8:30 am to 9:00 am CommSec’s DMA facility is available during the Pre-Opening Session. Access to this session is configured individually for clients.

Opening Routine

Order input period

8:30 am to 8.59 am During the order input period, SGX allows:

•

Entry of new bids or asks (both at-auction orders and at-auction limit orders)

•

Order amendments

•

Order cancellations

•

No matching of orders.

Match Phase 9:59 am to 9:00 am Non-cancel phase. No entry, amendment or withdrawal of orders allowed in this phase.

Continuous Trading

Morning Session 9:00 am to 12:30 pm During the Continuous Trading Session, SGX allows:

•

Order amendments

•

Order cancellations

•

Trade cancellations

•

Enquiries.

lunch

Adjust Phase 12:30 pm to 1:59 pm Order can be entered, reduced or withdrawn. No matching of orders. Match Phase 1:59 pm to 2:00 pm Non-cancel phase. No entry, amendment or withdrawal of orders

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Continuous Trading

Afternoon Session 2:00 pm to 5:00 pm During the Continuous Trading Session, SGX allows:

•

Order amendments

•

Order cancellations

•

Trade cancellations

•

Enquiries.

Closing Routine

Pre-close Phase 5:00 pm to 5:05 pm Orders can be entered, reduced or withdrawn. No matching of orders.

Afternoon Session 5:05 pm to 5:06 pm Non-cancel phase. No entry, amendment or withdrawal of orders allowed in this phase.

CORPORATE ACTIONS

The standard CommSec CFD procedure outlined in the OTC CFD Client Agreement applies.

DuTIES AND TAXES

There are no additional market charges for trading in Singapore.

HOw SGX mATCHES BIDS AND ASKS

Trades on SGX must generally be executed using the automatic order matching in SGX. All orders submitted using CommSec’s DMA facility will be processed using SGX.

Orders are continuously executed on a first come, first served basis.

PlACING, AmENDING AND CANCEllING ORDERS

See page 4.

Placing orders

All Singapore orders placed using the CommSec Electronic Trading Platform are good for day only (GFD). That is, they remain current only during the day on which they are made. All orders not filled by the time the market closes will be deleted automatically.

Specifications

Singapore has laid down certain rules on the specifications applicable to orders placed in the market. In particular, there are rules restricting the price and volume specified for an order. For this purpose, the spread applicable to a stock will depend on the prevailing price of the stock.

Price of Stock (SGD) Spread (SGD) From 0.01 to 1.00 0.005 Over 1.00 to 3.00 0.010 Over 3.00 to 5.00 0.020 Over 5.00 to 10.00 0.050 Over 10.00 to 0.100

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Opening quotations

If the order is the first one entered into the trading system on each trading day, the “opening quotation” rule would apply. This means that the first order (whether bid or ask) must not deviate six price steps or more from the previous closing price.

Only orders for round lots are accepted by our DMA facility. The size of a round lot will vary according to the underlying stock over which the CFD is created. Therefore, ALL orders must be equivalent to at least one round lot — or multiples thereof.

“Please refer to the CommSec CFD Trading Account Margin table (or order ticket) for further details. Short selling

There are specific rules for short selling in each country. Please call the OTC CFD desk for more information. Amending orders

An order may be amended during the Pre-Opening Session (other than at certain specified times — see “Market hours and phases” on page 16) and the Continuous Trading Session prior to it being filled. The following fields in an order may be amended:

•

Price

•

Volume

•

Type

•

Expiry

An order may be cancelled at any time (other than at certain times in the Pre-Opening Session — see “Market hours and phases” on page 16) prior to being filled.

under the SGX rules, once an order is placed into the SGX order book the volume may be increased. However, this action may cause you to lose queue position.

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new ZealanD

mARKET

The New Zealand Exchange (NZX) originated during the New Zealand gold rush of the 1870s. Following demutualisation, NZX listed on the exchange on 30 May 2003.

TRADING HOuRS AND PHASES

New Zealand is two hours ahead of Sydney (AEST +2). It is 12 hours ahead of London (GMT +12). The NZX has set the following opening times, but reserves the right to vary these times.

market Phase Time Notes

Enquiry 8:00 am to 9:00 am

View existing orders placed and still active from the previous day. Pre-Opening

Session

9:00 am to 10:00 am

During the order input period, NZX allows:

•

Entry of new bids and asks

•

Order amendments

•

Order cancellations Normal Trading 10:00 am to 4:45 pm

The majority of trading takes place in this session. During the Normal Trading session, NZX allows:

•

Order amendments

•

Order cancellations Pre-Close 4:45 pm to 5:00

pm

During the Pre-Close trading session, NZX allows:

•

Order amendments

•

Order cancellations Adjust 5:00 pm to 5:30

pm

Existing orders can only be amended down or cancelled. Any new orders will enter a queue for authorisation and will be placed into the market the following morning at the start of the pre-open session.

Enquiry 5:30 pm to 9:00 pm

Orders may be placed during this time and will be sent for

authorisation and released to market the following morning at the start of the pre-open session.

CORPORATE ACTIONS

The most common types of corporate actions are dividends, bonus and rights issues, mergers, stock splits/ distributions, and tenders. Corporate actions are usually announced two or three weeks before the ex-date. The record date is one business day after the ex-date, and the book-closed date is one business day after the record date.

DuTIES AND TAXES

Stamp duty is not applicable to OTC CFD trading in New Zealand.

HOw NZX mATCHES BIDS AND ASKS

Orders are executed in strict order according to order type, price and time priority. For orders of the same type (and price, in the case of limit orders), the order entered into the system at an earlier time will be executed in full before an order at the same price entered at a later time is executed.

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PlACING, AmENDING AND CANCEllING ORDERS

See page 4.

Placing orders

All New Zealand orders placed using the CommSec Electronic Trading Platform are Good Till Cancelled (GTC) unless stated/adjusted otherwise to Good for Day.

GTC orders are valid from the trade entry + 63 calendar days (inclusive) if not cancelled or filled earlier. GFD orders are purged by the NZX at 2 am the business night of the record date. GTC orders are live and active during the pre- and post-auction matches.

Contingent Orders (COs)

All Contingent Orders are GTC orders. They cannot be set to any other lifetime. As COs remain on the server until triggered or cancelled their lifetime is open-ended. Currently, the limit order that COs send to the NZX once triggered is GTC. Therefore, once a CO is triggered, if it is not filled by the end of the day, the order for the balance will remain in the system until purged by the NZX 63 calendar day rule (see above). Note: NZX Trading System will delete all outstanding GTC orders on any security at 2 am (NZST) the business night of the record date. Contingent orders are the exception to this rule as contingent orders do not enter NZX Trading System until triggered.

minimum purchases

There is no minimum limit to the number of share CFDs that you can purchase. There is, however, a minimum commission payable. Execution is charged on a per trading day basis. All CFD trades over the same share CFD on the same business day are amalgamated and you pay the greater amount of either a minimum ticket value or a percentage of face value. If one order is executed over two trading days, then two commission charges are payable.

Price increments

Securities listed on the NZX may only be traded in specified price increments. All orders submitted to CommSec can only be above or below the current market price in multiples of the price increments set out below. All orders must comply with these price increments.

Current CFD price Price increments

0.1¢ to 19.9¢ 0.1¢

20¢ or more 1.0¢

Note: CommSec does not accept decimal places for order entry, except for partial cents. (For example: TEL on the NZX is quoted as 4.34/4.35, on CommSec Electronic Trading Platform it is quoted as 434/435.

Amending orders

An order may be amended during the Pre-Opening Session and the Normal Trading Session prior to it being filled. The following fields in an order may be amended:

•

Price

•

Volume

•

Type

•

Expiry

An order may be cancelled at any time (other than at certain times in the Pre-Opening Session — see “Trading hours and phases” on page 19) prior to being filled.

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aPPenDix 1 — auSTralia*

The following is an example of the Margin Table for Australia. For more information about each table heading, go to the glossary on page 26.

Security Description Exchange loan To Value Ratio

margin Short

Sell Allow Buy Currency lot Size

ANZ ANZ Banking Grp Ltd ASX 95 5 Yes Yes AuD 1

BHP BHP Billiton Ltd ASX 95 5 Yes Yes AuD 1

BXB Brambles Limited ASX 95 5 Yes Yes AuD 1

CBA Commonwealth Bank ASX 95 5 Yes Yes AuD 1

CGJ Coles Group Ltd ASX 95 5 Yes Yes AuD 1

NAB National Aust. Bank ASX 95 5 Yes Yes AuD 1

RIO RIO Tinto Limited ASX 95 5 Yes Yes AuD 1

SGB St George Bank ASX 95 5 Yes Yes AuD 1

TLS Telstra Corporation ASX 95 5 Yes Yes AuD 1

TLSCA Instalment Receipts ASX 95 5 Yes Yes AuD 1

WBC Westpac Banking Corp ASX 95 5 Yes Yes AuD 1

WDC Westfield Group ASX 95 5 Yes Yes AuD 1

WES Wesfarmers Limited ASX 95 5 Yes Yes AuD 1

AAN Alinta Limited ASX 90 10 Yes Yes AuD 1

AGK AGL Energy Limited ASX 90 10 Yes Yes AuD 1

AMC Amcor Limited ASX 90 10 No Yes AuD 1

BNB Babcock & Brown Ltd ASX 90 10 Yes Yes AuD 1

CSR CSR Limited ASX 90 10 Yes Yes AuD 1

MBL Macquarie Bank ASX 90 10 Yes Yes AuD 1

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aPPenDix ii — Hong kong*

The following is an example of the Margin Table for Hong Kong. For more information about each table heading, go to the glossary on page 26.

Security Description Exchange loan to Value Ratio

margin Short

Sell Allow Buy Currency Sizelot

0001 CHEuNG KONG HK 90 10 Yes Yes HKD 1000

0002 CLP HOLDINGS HK 90 10 Yes Yes HKD 500

0003 HK & CHINA GAS HK 90 10 Yes Yes HKD 1000

0004 WHARF HOLDINGS HK 90 10 Yes Yes HKD 1000

0005 HSBC HOLDINGS HK 90 10 Yes Yes HKD 400

0006 HK ELECTRIC HK 90 10 Yes Yes HKD 500

0008 PCCW HK 90 10 Yes Yes HKD 1000

0011 HANG SENG BANK HK 90 10 Yes Yes HKD 100

0012 HENDERSON LAND HK 90 10 Yes Yes HKD 1000

0013 HuTCHINSON HK 90 10 Yes Yes HKD 1000

0016 SHK PPT HK 90 10 Yes Yes HKD 1000

0017 NEW WORLD DEV HK 90 10 Yes Yes HKD 1000

0019 SWIRE PACIFIC A HK 90 10 Yes Yes HKD 500

0023 BANK OF E ASIA HK 90 10 Yes Yes HKD 200

0066 MTR CORPORATION HK 90 10 Yes Yes HKD 500

0083 SINO LAND HK 90 10 No Yes HKD 2000

0101 HANG LuNG PPT HK 90 10 Yes Yes HKD 1000

0144 CHINA MER HOLD HK 90 10 Yes Yes HKD 2000

0179 JOHNSON ELEC H HK 90 10 Yes Yes HKD 500

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aPPenDix iii — JaPan*

The following is an example of the Margin Table for Japan. For more information about each table heading, go to the glossary on page 26.

Security Description Exchange loan to Value Ratio

margin Short

Sell Allow Buy Currency Sizelot

7974 NINTENDO T 90 10 Yes Yes JPY 100

8031 MITSuI CO T 90 10 Yes Yes JPY 1000

4912 LION T 90 10 Yes Yes JPY 1000

9984 SOFTBANK T 90 10 Yes Yes JPY 100

8585 ORIENT CORP T 90 10 Yes Yes JPY 1000

9531 TOKYO GAS T 90 10 Yes Yes JPY 1000

7951 YAMAHA CORP T 90 10 Yes Yes JPY 100

8235 MATSuAKAYA T 90 10 Yes Yes JPY 1000

9432 NTT T 90 10 Yes Yes JPY 1

8802 MITSuBISHI EST T 90 10 Yes Yes JPY 1000

8604 NOMuRA HOLDINGS T 90 10 Yes Yes JPY 100

8591 ORIX T 90 10 Yes Yes JPY 10

6773 PIONEER T 90 10 Yes Yes JPY 100

7211 MITSuBISHI MOTOR T 90 10 Yes Yes JPY 1000

7201 NISSAN MOTOR CO T 90 10 Yes Yes JPY 100

7203 TOYOTA MOTOR CO T 90 10 No Yes JPY 100

6758 SONY CORP T 90 10 Yes Yes JPY 100

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aPPenDix iV — SingaPore*

The following is an example of the Margin Table for Singapore. For more information about each table heading, go to the glossary on page 26.

Security Description Exchange loan to Value Ratio

margin Short

Sell Allow Buy Currency lot Size

AGRN ALL GREEN SI 90 10 Yes Yes SGD 1000

CMGD COMFORTDELGRO SI 90 10 Yes Yes SGD 1000

GPAK GOODPAK SI 65 35 Yes Yes SGD 1000

GuOC GuOCOLAND SI 80 20 Yes Yes SGD 1000

HPLZ HOTEL PLAZA SI 65 35 Yes Yes SGD 1000

HFYL HYFLuX SI 90 10 Yes Yes SGD 1000

KLAN KEPPEL LAND SI 90 10 Yes Yes SGD 1000

MONE MOBILE ONE SI 90 10 Yes Yes SGD 1000

OCBC OCBC SI 90 10 Yes No SGD 1000

SIAL SIA LTD SI 90 10 Yes Yes SGD 1000

SMRT SMRT CORP SI 80 20 Yes Yes SGD 1000

STAR STARHuB SI 90 10 Yes No SGD 1000

STEL SING TELECOM SI 90 10 Yes Yes SGD 1000

uOBH uOB LTD SI 90 10 Yes Yes SGD 1000

VENM VENTuRE SI 90 10 Yes Yes SGD 1000

WPSL WHEEELLOCK PROP SI 80 20 Yes Yes SGD 1000

WTHS WING TAI HLDGS SI 90 10 Yes Yes SGD 1000

YNLG YANLORD LAND SI 80 20 Yes Yes SGD 1000

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aPPenDix V — new ZealanD*

The following is an example of the Margin Table for New Zealand. For more information about each table heading, go to the glossary on page 26.

Security Description Exchange loan to Value Ratio

margin Short

Sell* Allow Buy Currency lot Size

AIA AuCKAIR NZ 90 10 Yes Yes NZD 1

AIR AIRNZ NZ 85 15 Yes Yes NZD 1

AMP AMP NZ 90 10 Yes Yes NZD 1

ANZ ANZBANKGRP NZ 90 10 Yes Yes NZD 1

CEN CONTACT NZ 90 10 Yes Yes NZD 1

FPA FISHERAPP NZ 90 10 Yes Yes NZD 1

FPH FISHERHEALTH NZ 90 10 Yes Yes NZD 1

GFF GOODMAN NZ 90 10 Yes Yes NZD 1

GPG GuINESSPEAT NZ 90 10 Yes Yes NZD 1

LNN LIONNATHAN NZ 90 10 Yes Yes NZD 1

PMN PROMINA NZ 90 10 Yes Yes NZD 1

SKC SKYCITY NZ 90 10 Yes Yes NZD 1

SKT SKTTV NZ 90 10 Yes Yes NZD 1

TEL TELECOM NZ 90 10 Yes Yes NZD 1

TLS TELSTRA NZ 90 10 Yes Yes NZD 1

WBC WESTPAC NZ 90 10 Yes Yes NZD 1

WHS WAREHOuSE NZ 90 10 Yes Yes NZD 1

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gloSSary

Allow Buy: Only securities marked as “yes” may be bought. There are rare occasions when a particular CFD may not be purchased due to exchange restrictions.

Currency: The local currency of the underlying CFD. Description: The name of the underlying CFD.

Electronic Trading Platform refers to either CommSecIRESS or WebIRESS.

Exchange: This column denotes which stock exchange any given security is traded on. loan to Value Ratio: This represents the percentage of the position being traded on loan.

lot Size: Each CFD has a pre-defined lot size that is tradeable on the exchange. There is no odd lot facility. In the event of a corporate action where an odd lot is created an odd lot facility to close out the trade will be available by calling the dealing desk.

margin: This is the amount of Initial Margin required to trade this particular CFD. Please note the Initial Margin is subject to change dependent on market conditions.

Security: Only securities that are represented in the Margin Table are available as CFDs.

Short Sell: Only securities marked as “yes” may be sold short. However, if you wish to trade short over a security marked as “No” please contact the dealing desk on 1300 307 853, as stock can sometimes be sourced intra-day.

Smart last: The current middle point of either the bid, the ask or the last. For example:

Bid Ask last Smart last

2.00 2.02 2.01 2.01

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ConTaCT DeTailS

CommSec’s registered office in Australia is located at:

Ground Floor, Tower 1 201 Sussex Street Sydney NSw 2000

Phone

1300 307 853

+61 2 8292 8203 for international callers

Email

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MKTG441E 030611