ASIC has developed seven disclosure benchmarks for over-the-counter contracts for difference (OTC CFDs) to assist retail investors understand the risks associated with these products, assess their potential benefits and decide whether investment in the products is suitable for them.
As an issuer of OTC CFDs AxiTrader provides the information set out below to explain whether and how it addresses the benchmarks.
These disclosures are a summary only and should not be relied upon solely. The Product Disclosure Statement (PDS) sets out the information in detail and is available on this website. Clients should ensure they review the PDS in full before deciding whether to acquire Axi’s products.
Addresses the issuer’s policy on investor’s qualification for CFD trading.
We operate a client qualification policy that is designed to ensure that clients have appropriate experience in or knowledge and understanding of our derivative products. Applicants can demonstrate appropriateness by demonstrating sufficient trading experience or by passing a multiple- choice-quiz.
Updated - 05 December 2024
Addresses the issuer’s policy on the types of assets accepted from investors as opening collateral.
We operate several different payment options for clients to fund accounts including credit card funding but do not accept non-cash collateral. We do not encourage the use of borrowed funds to trade leverage products. To accommodate flexible payment alternatives available to clients, Axi allows opening collateral initial funding payments in excess of the $1,000 benchmark prescribed by ASIC.
Updated - 05 December 2024
Addresses the issuer’s practices in hedging its risk from client Positions and the quality of the hedging counterparties.
Within our risk management framework, we have assessed the market risk and counterparty risks arising from entering into OTC CFD transactions with customers and hedging counterparties and applied controls to mitigate those risks. Those controls include the enforcement of leverage limits, market risk limits and daily loss limits. Criteria have been established for the selection of hedging counterparties to provide reasonable assurance as to the quality of our hedging facilities. Clients are indirectly exposed to counterparty risks notwithstanding these protections and should review the disclosuresin the risk warning section of Axi’s PDS and refer also to the Client Agreement.
Updated - 05 December 2024
Addresses whether the issuer holds sufficient liquid funds to withstand significant adverse market movements.
We maintain a written policy and procedures with regards to the management and ongoing monitoring of our financial resources. These address the methodology employed, linkages to the budgetary planning process, scenarios used and roles and responsibilities for measuring and monitoring our financial condition. We do not perform regular testing of our financial position under stressed conditions due to the fact that exposures are subject to significant variation and the results generated at any point in time may not be applicable to our financial position at other points in time. To mitigate the risks of failing to satisfy the financial requirements, we have established a capital buffer based upon historical market moves and measure and monitor capital daily. Financial resources are also subject to external audit on an annual basis. If you require further information about our financial position, please contact us and request a copy of our audited financial statements. These will be provided at no cost to you.
Updated - 05 December 2024
Addresses the issuer’s policy on client money.
We have a defined client money policy and hold client moneys on trust on a segregated basis. Funds held in trust on behalf of Retail Clients and Sophisticated Investors may only be withdrawn by Axi as permitted under the Australian Client Money Rules, as defined in this PDS and the Client Agreement. Funds held in trust on behalf of Wholesale Clients may be used by Axi to meet its obligations incurred in connection with margining, guaranteeing, securing, transferring, adjusting or settling dealings in derivatives, including dealings on behalf of other clients.
Updated - 05 December 2024
Addresses the issuer’s practices in relation to investor trading when the underlying asset is suspended or halted.
We may suspend trading when the Underlying Instrument is suspended or halted or when we are unable to offer an orderly market. If market conditions in the Underlying Instrument become erratic or prevent us from determining a fair price, we may suspend trading, refuse to accept orders or transactions, change Margin Requirements, or re-price or close out Positions. We are not under any obligation to quote or deal in these circumstances but may do so if we are reasonably satisfied that we can provide our Services effectively.
Updated - 05 December 2024
Addresses the issuer’s practices in the event of client Accounts entering into Margin Calls.
We have established minimum Margin Requirements for all instruments and the Trading Platforms monitor the Margin Requirements of all open Positions for each client against the client’s account equity. We maintain and apply a written policy in relation to Margin Call practices and discretions. In accordance with Applicable Law, for Retail Clients Axi has an obligation to close out Positions if Margin Requirements are not satisfied, that is, where your net equity falls below 50% of the margin required to cover your Positions.
Updated - 05 December 2024