Margin Foreign Exchange

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SCHEDULE TO PRODUCT DISCLOSURE STATEMENT

Halifax New Zealand Limited

(FSP412726)

SCHEDULE DATED 26 MAY 2015 RELATING

TO THE PRODUCT DISCLOSURE STATEMENT

DATED 26 MAY 2015 FOR MARGIN FOREIGN

EXCHANGE AND FOREIGN EXCHANGE

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SCHEDULE TO PRODUCT DISCLOSURE STATEMENT

Contents

Introduction . . . .3

ANNEXURE A:

Default liquidation thresholds for trading platforms . . . .4

ANNEXURE B:

Minimum trade thresholds . . . .5

ANNEXURE C:

Commission rates . . . .7

ANNEXURE D:

Rollover arrangements . . . . 11

ANNEXURE E:

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SCHEDULE TO PRODUCT DISCLOSURE STATEMENT

1. Introduction

This is a Schedule to the product disclosure statement (PDS) dated 26 May 2015 for margin foreign exchange and

foreign exchange options (FX Products) issued by Halifax New Zealand Limited (Halifax) . It is incorporated by

reference into the PDS and is subject to the terms of the Client Service Agreement . Capitalised terms used in this Schedule have the meaning given to them in the PDS .

When we use the terms ‘Halifax’, ‘we’, ‘our’ or ‘us’ in this Schedule, the reference is to Halifax . When we use the term ‘you’ we mean you as the applicant for, or holder of, the FX Products described in the PDS and this Schedule . When

we refer to ‘client’ we mean you, or another applicant for, or holder of, the FX Products described in the PDS and this

Schedule .

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ANNEXURE A:

DEFAULT LIQUIDATION THRESHOLDS FOR TRADING PLATFORMS

TRADING PLATFORM DEFAULT LIQUIDATION THRESHOLD

Halifaxonline 150%

Trader Workstation 100%

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ANNEXURE B:

MINIMUM TRADE THRESHOLDS

Cross Minimum Threshold AUDCAD AUD 2,000,000 AUDCHF AUD 12,000,000 AUDCZK AUD 750,000 AUDDKK AUD 2,000,000 AUDEUR AUD 3,575,000 AUDGBP AUD 3,625,000 AUDHUF AUD 750,000 AUDJPY AUD 15,000,000 AUDNOK AUD 1,500,000 AUDNZD AUD 8,000,000 AUDPLN AUD 750,000 AUDSEK AUD 4,000,000 AUDSGD AUD 750,000 AUDUSD AUD 20,000,000 CADCHF CAD 3,000,000 CADEUR CAD 16,900,000 CADJPY CAD 2,500,000 CADNOK CAD 750,000 CADSEK CAD 1,500,000 CADUSD CAD 6,875,000 CHFAUD CHF 2,525,000 CHFCZK CHF 1,250,000 CHFDKK CHF 2,500,000 CHFHUF CHF 1,000,000 CHFJPY CHF 2,250,000 CHFNOK CHF 12,000,000 CHFPLN CHF 1,000,000 CHFSEK CHF 3,000,000 CHFTRY CHF 750,000 CHFUSD CHF 11,700,000 CHFZAR CHF 750,000 DKKCZK DKK 2,500,000 DKKHUF DKK 2,500,000 DKKJPY DKK 25,000,000 DKKZAR DKK 2,500,000 EURAUD EUR 5,000,000 EURCAD EUR 6,000,000 EURCHF EUR 10,000,000

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Cross Minimum Threshold NZDCAD NZD 2,000,000 NZDCHF NZD 2,000,000 NZDCZK NZD 500,000 NZDDKK NZD 2,000,000 NZDEUR NZD 3,150,000 NZDGBP NZD 2,500,000 NZDHUF NZD 500,000 NZDJPY NZD 7,500,000 NZDMXN RFQ only NZDNOK NZD 3,000,000 NZDPLN NZD 500,000 NZDSEK NZD 2,000,000 NZDSGD NZD 750,000 NZDUSD NZD 15,000,000 NZDZAR RFQ only PLNJPY PLN 2,500,000 SEKDKK SEK 25,000,000 SEKJPY SEK 25,000,000 SEKNOK SEK 56,250,000 SGDJPY SGD 2,000,000 USDCAD USD 25,000,000

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ANNEXURE C:

COMMISSION RATES

Halifaxonline

Currency

Pair Target Spread (expressed in pips) Min Spread (expressed in pips) Max Target Spread (expressed in pips) AUDCAD 9 .5 4 12 AUDCHF 9 .5 4 12 AUDCNH 36 25 33 AUDCZK 20 .5 16 24 AUDDKK 36 20 28 AUDEUR 4 .5 2 10 AUDGBP 4 .5 2 10 AUDHKD 30 13 21 AUDHUF 26 20 28 AUDJPY 5 .5 3 11 AUDMXN 81 60 68 AUDNOK 51 40 48 AUDNZD 9 .5 6 14 AUDPLN 26 20 28 AUDSEK 41 30 38 AUDSGD 8 .5 7 15 AUDTRY 14 10 18 AUDUSD 3 .5 2 10 AUDZAR 80 .5 60 68 CADCHF 7 .5 4 12 CADEUR 3 .8 2 .5 10 .5 CADJPY 5 .5 3 11 CADMXN 66 55 63 CADNOK 71 60 68 CADPLN 28 22 30 CADSEK 71 60 68 CADSGD 11 7 15 CADTRY 12 .5 10 18 CADUSD 4 .5 3 11 CHFAUD 8 .5 6 14 CHFCZK 210 150 230 CHFDKK 18 7 15 CHFHUF 22 .5 20 28 CHFJPY 4 .5 2 10 CHFMXN 71 50 58 CHFNOK 30 .5 20 28 CHFPLN 26 20 28 Currency

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Pair Target Spread (expressed in pips) Min Spread (expressed in pips) Max Target Spread (expressed in pips) GBPCZK 45 .5 40 48 GBPDKK 56 30 38 GBPEUR 6 .5 4 12 GBPHUF 41 35 43 GBPILS 81 60 68 GBPJPY 7 .5 5 13 GBPMXN 126 100 108 GBPNOK 71 50 58 GBPNZD 12 .5 10 18 GBPPLN 30 .5 25 33 GBPSEK 71 50 58 GBPSGD 9 7 15 GBPTRY 13 .5 11 19 GBPUSD 3 .5 2 10 GBPZAR 171 120 128 HKDJPY 41 30 38 HUFJPY 20 .5 15 23 JPYDKK 0 .45 0 .2 1 JPYEUR 0 .23 0 .17 0 .25 JPYNOK 0 .45 0 .3 1 .1 JPYUSD 0 .035 0 .02 0 .1 MXNJPY 3 .5 2 10 NOKDKK 7 .5 4 12 NOKJPY 95 70 150 NOKSEK 8 .5 5 13 NOKUSD 1 .01 0 .8 0 .88 NZDAUD 9 .5 6 14 NZDCAD 8 .5 5 13 NZDCHF 7 .5 5 13 NZDCZK 40 .5 30 38 NZDDKK 26 20 28 NZDEUR 6 .5 4 12 NZDGBP 4 .5 3 11 NZDHKD 29 20 28 NZDHUF 41 30 38 NZDJPY 6 .5 5 13 NZDMXN 81 60 68 NZDNOK 51 40 48 NZDPLN 41 30 38 NZDSEK 51 35 43 NZDSGD 10 .5 5 13 Currency

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SCHEDULE TO PRODUCT DISCLOSURE STATEMENT

Pair Target Spread (expressed in pips) Min Spread (expressed in pips) Max Target Spread (expressed in pips) USDSGD 6 .5 4 12 USDTHB 260 200 280 USDTRY 7 .5 6 14 USDZAR 55 .5 50 58 XAGAUD 6 .5 5 13 XAGEUR 4 .01 3 3 .08 XAGHKD 30 .01 25 25 .08 XAGJPY 6 .01 5 5 .08 XAGUSD 4 .01 3 3 .08 XAUAUD 101 85 93 XAUCHF 81 70 78 XAUCNH 491 350 358 XAUEUR 66 55 63 XAUHKD 701 600 608 XAUJPY 101 90 98 XAURUB 500 .1 350 350 .8 XAUTHB 710 550 630 XAUTRY 186 150 158 XAUUSD 46 35 43 XAUXAG 11 8 16 ZARJPY 350 200 1000

GAIN Meta Trader

Pair Spread Target (expressed in pips) Min Spread (expressed in pips) Max Target Spread (expressed in pips) AUDCAD 4 .04 2 .65 15 .82 AUDCHF 5 .05 3 .6 21 .49 AUDJPY 6 .06 1 .97 11 .76 AUDNZD 8 .08 4 .23 25 .25 AUDUSD 3 .03 1 .58 9 .43 CADCHF 5 .05 3 .84 22 .92 CADJPY 6 .06 2 .3 13 .73 CHFJPY 5 .05 2 .85 17 .01 EURAUD 7 .07 3 .05 18 .21 EURCAD 8 .08 3 .1 18 .51 EURCHF 4 .04 2 .39 14 .27 EURCZK 55 .55 29 .42 175 .64 EURDKK 9 .09 4 .78 28 .54 EURGBP 4 .04 1 .2 7 .16 Currency

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Trader Work Station

Currency Pair Minimum commission rate (expressed in percentage of Notional Value) Maximum commission rate (expressed in percentage of Notional Value) Standard commission rate (expressed in percentage of Notional Value) Minimum fee

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ANNEXURE D:

ROLLOVER ARRANGEMENTS

Platform Rollover

Halifaxonline Rollovers are calculated at 5:00 p .m . EST (US) based on the Notional Value of the position and the interest rates at that time . Depending on the interest rates of the Metal Pair or Currency Pair, you may pay or receive different rates . The benchmark swap rates can be found via http://au .saxomarkets .com/prices/forex/tom-next-rollover . The amounts paid or received can be viewed within the Trading Platform in the Forex Rollovers statement under the “Reports” section .

Trader Work

Station No Rollovers exist within the Trader Work Station platform . Interest may however still be paid on negative cash balances held overnight . Interest is based on the cash balance under Real FX balance, which can be viewed within the Trading Platform . There is no interest paid on positive cash balances under Real FX balance . For further details, please refer to Annexure D of this Schedule .

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ANNEXURE E:

FEE SCHEDULE IN RESPECT OF FINANCING CHARGES

Platform Interest Conversion Cost

Halifaxonline Unless otherwise negotiated with Halifax, there is no interest applied on Trading Accounts with positive Net Free Equity . If a Trading Account contains negative Net Free Equity, Halifax will charge interest on the account at the daily underlying LIBOR ask rate plus 7 .00% of the Trading Account Currency (for example, if your Trading Account held NZD, and the NZD LIBOR is 4 .00% per annum, you will be charged interest at a rate of 11 .00% per annum) . This example is provided for illustrative purposes only.

Interest is accrued on a daily basis and applied monthly to your Trading Account on the first business day of the following month .

No interest is paid or received if you open and Close Out a position on the same day .

If the Terms Currency for a Margin FX Transaction is not your Trading Account Currency, then Halifax will apply a Conversion Spread when converting your profits or losses on the Margin FX Transaction back to your Trading Account Currency .

The Conversion Spread (calculated as a percentage of the relevant Exchange Rate) will not exceed 0 .75% . The result will be the Spread as expressed in pips which will be added or subtracted from the Exchange Rate offered by the Platform Counterparty (this rate includes Saxo Capital Markets’ spread) . This will be applied on a per Transaction basis . The rate of the conversion can be found in “Trades Executed” section under the “Reports” section of your Halifaxonline account .

Trader Work Station Unless otherwise negotiated with Halifax,

there is no interest applied on Trading Accounts with positive Net Free Equity . Interactive Broker accounts allow multiple currencies held at any one time and if a particular currency contains a negative cash balance, Halifax will charge interest on the account at the relevant interest rate supplied through Interactive Brokers (shown at https:// www .interactivebrokers .com/en/index . php?f=interest&p=schedule2) plus 1 .00% of the underlying currency dependent on the balance tier (for example, if your Trading Account held NZD 50,000, and the benchmark interest rate is 4 .00% per annum, you will be charged interest at a rate of 5 .00% per annum) .

Interest is accrued on a daily basis and applied monthly to your Trading Account on the third business day of the following month .

The time at which Halifax will convert gains or losses on Closed Out Margin FX Transactions to your Trading Account Currency may be at the discretion of the client, or at the discretion of Halifax with the permission of the client . The rate of the conversion can be found in the “Trades” section under the Activity Statement within Account Management, or under the Trade Log from within the Trading Platform .

Gain Meta Trader No interest is applied on positive or negative Net Free Equity in a trading Account .