14 June 2024

IMPORTANT INFORMATION

This Product Disclosure Statement (PDS) has been prepared without taking into account your objectives, financial situations or needs. Therefore, before trading in the products referred to in this PDS you should:

• Read and consider all sections carefully and be satisfied that any trading you propose to undertake in relation to the products describe herein is appropriate in view of your objectives, financial situation and needs;

• Read the explanatory material published by the relevant exchange upon which the products described in this PDS trades. For example, for US traded option, you should read the education materials on optionseducation.org; in respect of ASX traded options, you should read the ASX explanatory booklet “Understanding Options Trading” available on our website and the ASX website;

• Ensure you understand the contract specifications for the products you are proposing to trade;

• Ensure you understand your obligations and rights under the terms and conditions governing trading with us;

• Understand that the risk of loss in trading in exchange traded options (Options) can be substantial and carefully consider whether trading in Options is appropriate for you in light of your personal investment objectives, financial circumstances and needs. Options are not suitable for some retail investors; and,

• Only trade Options if you understand the nature of the products and the extent of your exposure to risks.

Although the information in this PDS is up to date as at the date of publication, it is subject to change from time to time. Where such changes are not materially adverse, we may provide updates on our website. Certain changes to this PDS may require that we issue a new PDS or a supplementary PDS. The latest version of this PDS, including any updates and any supplementary PDS will be available on our website at www.tigerbrokers.com.au

This PDS is an important document and we recommend you contact us should you have any questions on its contents. You should retain a copy of this PDS for your records.

If you received this document electronically we will provide a paper copy free on request.

1. INTRODUCTION

1.1 Purpose of this PDS

This PDS has been prepared by Tiger Brokers (AU) Pty Limited (“TBAU”) ABN 12 007 268 386, AFSL No. 300767. In this PDS when we use terms ‘we’, ‘us’ or ‘our’, the reference is to TBAU. For the purpose of the Corporations Act 2001, we are the issuer of Options (“Products”) described in this PDS.

The information in this PDS does not take into account your personal objectives, financial situation and needs. This PDS is designed to assist you in deciding whether the Options referred to herein are appropriate for your needs and in comparing it with other financial products you may be considering. It is not a substitute for independent professional advice. If you require any legal, taxation or other advice we recommend that you seek such advice prior to opening an account with TBAU and or trading the products described in this PDS.

1.2 Offer made to clients of TBAU in Australia

This PDS and the Options described in this PDS are available to persons who are clients of TBAU. The distribution of this PDS in a jurisdiction outside of Australia may be restricted by the laws of that place. This PDS does not constitute an offer or invitation in any place where, or to any person whom, such offer or invitation would not be lawful according to the laws of the relevant place. Persons who come into possession of this PDS in a place that is not Australia should seek independent advice as to what prohibitions or restrictions apply to them in relation to the products described herein, if any.

If you consult or have engaged a Financial Adviser or Broker or any other third party you should obtain a copy of their FSG. TBAU does not endorse any representations made by any third party about us or the Products described in this PDS.

1.3 About Tiger Brokers (AU) Pty Limited

TBAU is the issuer of exchange traded options offered under this PDS.

TBAU holds an Australian financial services license, number 300767, which authorises TBAU to deal in exchange traded options.

Tiger Brokers (AU) Pty Limited is a subsidiary of UP Fintech Holding Limited, known as "Tiger Brokers" (NASDAQ: TIGR), a leading online brokerage firm focusing on global investors.  Founded in 2014, Tiger Brokers became one of the major players dealing with US equity trading, among trading platforms catered to global investors.

For further information about TBAU, you should read our Financial Services Guide (FSG) and the other information about the services we provide available from our website.

Our contact details are as follows:

Tiger Brokers (AU) Pty Limited

Suite 28.01, 25 Bligh Street

Sydney, NSW 2000

Telephone Numbers:

+61 02 9169 6999

Email:

clientservice@tigerbrokers.com.au

1.4 Terms applying to the Products offered in this PDS 

The terms governing the agreement between you and us in relation to the Products described in this PDS include: our general terms and conditions, this PDS and the contract specifications for the Products offered in this PDS as published by the relevant exchange on which they trade.

Product contract specifications are available on our trading platform, “Tiger Trade”. Our website also contains important details about option trading, such as the costs associated with trading.

You should also be aware that there may be important differences in the practices, procedures and regulations of markets from one country to another and one exchange to another.

2.  WHAT PRODUCTS DOES THIS PDS COVER?

This PDS currently relates to Options available through our trading platform on exchanges which we have approved from time to time (which may from time to time include markets operated by derivative exchanges in United States of America and the market operated by ASX Limited( (ACN 008 624 691) (ASX) and other international derivative exchanges outside of Australia). The derivative exchanges in United States of America and other international derivative exchange outside of Australia are collectively referred to in this PDS as International Exchanges. 

In broad terms, Options are a type of derivative which gives the buyer of the option (sometimes referred to as the taker) the right, but not the obligation, to buy or sell the underlying at a specified price on or before a specified date. On the opposite side, the seller (sometimes referred to as the option writer), has the obligation to perform the contract, that is, either buy or sell the underlying.

2.1 Types of Options

The Options offered under this PDS fall into two categories:

1) Equity options: Equity options are options over financial products quoted on the ASX or an International Exchange, for example shares of listed companies, managed investment schemes (MIS) including Exchange Traded Funds (ETFs).

On ASX and International Exchanges, equity options are "deliverable" options in the sense that, on exercise, one party must take "delivery" of the underlying security.

2) Index options: Index options are options over an index such as the S&P™/ASX 200™ Index, FTSE 100 ®, or the Nasdaq-100 ®.

Index options are "cash settled" options in the sense that, on exercise of an option, the buyer of the option will have the right to receive an amount of money and the writer will have a corresponding obligation to pay that amount (provided the option is "in-the-money"). The amount of money will be determined by the difference between the exercise level (set by the relevant exchange) and the settlement mechanism determined by the International Exchange or the clearing house of the International Exchange responsible for the clearing and settlement of Options (Clearing House).

The full list of Options currently available through Tiger Trade platform. Clients of TBAU may search for Options which they may trade through TBAU’s online trading platform Tiger Trade.

2.2 Understanding some concepts 

Concepts which should be understood before trading in Options are:

• The effect that time has on a position/strategy;

• How volatility of the underlying, both up and down movements, may affect the price or value of an option and the potential outcome;

• The likelihood of early exercise and the most probable timing of such an event;

• The effect of dividends and capital reconstructions on an options position;

• The liquidity of an option, the role of market makers, and the effect this may have on your ability to enter and exit a position.

Whilst this PDS provides product information including information about the risks, characteristics and benefits of Options, you must inform yourself of, and if necessary obtain advice about, the specific risks, characteristics and benefits of the Option they intend to trade and rules of the relevant exchange on which the Options are traded.

2.3 Uses of Options

Options are a financial product which investors may use to:

• hedge against fluctuations in their underlying share portfolio or against future cash flows an investor may have;

• profit from speculation on share or index markets; and

• generate extra income from their portfolio through earning a premium from selling options.

The inherent flexibility in an Option stems from the fact that they enable a person to both buy (take) and/or sell (write) an option contract and undertake multiple positions targeting specific movements in the overall market and, in individual underlying shares (in the case of equity Options) or in a particular market segment (for index Options, provided that segment is covered by an index). 

Options may provide investors with a greater flexibility to take advantage of rising, falling or neutral markets. However, trading Options involves risks which are discussed in more detail in section 5.

3. BASIC FEATURES OF EXCHANGE TRADED OPTIONS

The following information is not a detailed discussion of the features of the Options; instead, it identifies some of the key features of Options. For a more detailed description in relation to Options traded on ASX, you should refer to the ASX explanatory booklets referred to in section 4. For Option’s traded on International Markets outside of Australia, you should refer to the relevant information set out by the applicable International Exchange.

3.1 Deliverable or cash settled

Options are either deliverable or cash settled.

Options are described as deliverable where the obligations of the buyer and seller are settled by the "delivery" of the underlying share or asset. Equity options are deliverable, because on exercise, one party is required to transfer the underlying shares to the other at the exercise price.

Options are described as cash settled where the obligations of the buyer and seller are settled by the buyer and seller settling their obligations by the payment and receipt of a cash amount.  Index options are cash settled.

3.2 Options are an international product

Option contracts are traded on ASX and a number of International Exchanges overseas. Your obligations and contract requirements will differ according to the specific rules of the relevant exchange on which the Product trades, and you will need to understand how this affects you. It is therefore important that you understand the International Exchange on which you wish to trade or seek such information out yourself prior to trading the Products. See also section 4 below for more information

3.3 Duration of Options

Option contracts may have a product tenor of up to several years. Exchange traded Option contracts generally have contract maturity dates which follow a pre-determined cycle (standardisation is discussed in 3.4 below).

3.4 Options are standardised

The terms and specifications of Options (other than the premium, which is negotiated between the buyer and seller) are determined by the relevant exchange, for example ASX or the particular International Exchange, in accordance with operating rules of such exchange.

It is important that you review the contract specification for any options you propose to trade before you do so.

The relevant International Exchange determines the key contract specifications for each series of Options traded on the exchange and will publish the details on its website. You may refer to TBAU’s Tiger Trade platform for further information about any particular option you might wish trade.

In relation to Options traded on ASX, details of contract specifications for Options are published by the ASX on their website at http://www.asx.com.au. The contract specifications detail the key standardised features of Options traded on ASX.

For example, in the context of equity options the relevant exchange will determine:

• the underlying share (e.g. XYZ);

• whether the option is a call option or a put option (refer below to an explanation of call and put options);

• the contract size (that is, the number of units of the underlying share to which the option relates) – when an exchange traded equity option series is first opened by the Exchange for trading, the contract size is usually 100 (e.g. 100 XYZ shares);

• exercise style – that is American style (exercisable at any time) or European style (exercisable at specific set date);

• the exercise price (or strike price) – this is the specified price at which the taker (buyer) of an equity option can, if they exercise the option, buy (in the case of a call option) or sell (in the case of a put option) the underlying shares; and

• the expiry date of the particular option – Options have a limited predetermined life and will expire on specific dates.

For index options, the relevant parameters will also be set by the relevant Exchange, including:

• the underlying index,

• the index multiplier,

• the exercise style (which is generally European),

• the exercise level of the option; and.

• the expiry date.

Since all Options contracts for a given future month in the same market are interchangeable, they can be closed out against an opposite position in the same contract. An investor who has bought a given options contract can cancel the position by selling that same contract. The net result is that the trader no longer holds a position. Similarly, an investor who has sold a given Options contract can cancel the position by buying the same contract.

In each case there will be a profit or loss equal to the difference between the buying and selling prices multiplied by the standard contract amount less any transaction costs.

We provide some further explanation on the following concepts, contract size, exercise style, exercise price and expiry date, below.

3.5 Execution arrangements for Options

TBAU is NOT a participant of ASX or any International Exchanges. TBAU has arrangements with market participants of ASX and International Exchanges, through which TBAU will arrange for execution of your transactions in Exchange Traded Options.

3.6 Clearing arrangements and the role of the Clearing House

ASX and International Exchanges will generally have a central counterparty for clearing transactions entered into on the relevant exchange, typically this is referred to as the “Clearing House”. Clearing Houses clear and settle the transaction in Products executed on the relevant exchange. The primary role of the Clearing House is to guarantee the settlement of obligations arising under the contracts registered with it.

TBAU is not a participant (Clearing Participant) of any relevant clearing houses, but will engage the services of a Clearing Participant. When TBAU arranges to buy or sell an option contract on your behalf, the transaction is reported to the clearing house for registration.  On registration of a contract by the Clearing House, the original traded contract in most markets is terminated and replaced by two contracts. One of those is between the Clearing Participant who clears the contract for the taker of the option contract and the Clearing House. The other is between the Clearing Participant who clears the contract for the writer of the option contract and the Clearing House. This process of registration and creation of two new contracts is known as "novation" and is described briefly in the section entitled "You and your broker" in the ASX booklet, "Understanding Options Trading".

You, as our client, are not party to either of those contracts actually registered with the Clearing House. Upon registration of the Option contract with the Clearing House in the name of the Clearing Participant, the Clearing Participant incurs obligations to the Clearing House as principal, even though the contract may have been entered into on your instructions.

The Clearing House ensures that it is able to meet its obligation to Clearing Participants by calling a deposit known as the "Initial Margin" and additional deposits known as "Variation Margin" to cover any unrealised losses in the market.

For Options transactions executed and cleared on ASX, the benefit of the Options contract will be held by the relevant Clearing Participant for you.

For Options transactions executed and cleared on International Exchanges, TBAU has an omnibus arrangement with the relevant Clearing Participant who executes and clears the trades and holds the benefit of the options contract for TBAU. TBAU will hold the benefit of open positions for you.

3.7 Sellers (writers) and Buyers (takers)

Every Option contract has both a Buyer (taker) and a Seller (writer).

Buyers are referred to as “takers” of an Option as they take up the right to exercise the option (for example, the right (but not the obligation) to exercise the option and either buy or sell the underlying shares at the exercise price, in the case of an equity option).

Sellers of Options are referred to as “writers” because they underwrite (or willingly accept) the obligations which are required to be performed on exercise of the option (for example, to buy or sell the underlying shares at the exercise price, in the case of an equity option).

3.8 Call options and put options

In this section we provide information on the varieties of Options (call options or put options) and the differences between equity options and index options.

Equity options

Call options give the buyer (taker) the right, but not the obligation, to buy a standard quantity of underlying shares at a predetermined price on or before a predetermined date. If the taker exercises their right to buy, the seller (writer) to which the exercise notice is assigned by the Clearing House is required to sell the standard quantity of shares at the predetermined exercise price.

Put options give the buyer (taker) the right, but not the obligation, to sell a standard quantity of underlying shares at a predetermined price on or before a predetermined date. If the taker exercises their right to sell, the seller (writer) to which the exercise notice is assigned by the Clearing House is required to buy the standard quantity of shares at the predetermined exercise price.

Index options

Call options (in the case of index options) give the buyer (taker) the right, but not the obligation, to exercise the option. If the closing level of the index exceeds the exercise level of the index option, the taker will, on exercise of the option, have the right to receive an amount of money which is determined by multiplying the difference between the closing level and the exercise level by the index multiplier specified by the ASX or International Exchange. If the taker exercises the option, the seller (writer) to which the exercise notice is assigned by the Clearing House has the obligation and is required to pay the corresponding amount.

Put options (in the case of index options) give the buyer (taker) the right, but not the obligation to exercise the option. If the closing level of the index is less than the exercise level of the index option, the taker will, on exercise of the option, have the right to receive an amount of money which is determined by multiplying the difference between the closing level and the exercise level by the index multiplier specified by the ASX or International Exchange. If the taker exercises the option, the seller (writer) to which the exercise notice is assigned by the Clearing House has the obligation and is required to pay the corresponding amount.

3.9 Exercise style – American or European

Options may be American or European exercise style.

American style options can be exercised at any time prior to and including the expiry day.

European style options can only be exercised on the expiry day and not before.

Most ASX exchange traded equity options are American style options. ASX exchange traded index options are European style.  

American style put options on International Exchanges currently offered by TBAU can be ONLY exercised on expiry and NOT before. Prior to exercising the option, it is imperative to ensure that the requisite quantity of the underlying asset is held, among other necessary conditions.

American style equity call options on International Exchanges currently offered by TBAU may be exercised on expiry or early exercised prior to the close of the LAST trading day BEFORE the expiration day. Prior to exercising the option, it is imperative to ensure that the requisite cash balance is held, among other necessary conditions.

TBAU may change this rule from time to time, which will be communicated to clients in advance. The trading rules are available on https://www.itiger.com/au/help/detail/93298781?lang=en_US

Details of the Options available on an exchange are commonly available on the Tiger Trade platform and also the website of the relevant exchanges.

For example, you can find the options on New York Stock Exchange on www.nyse.com/products/options. Also, you can find the detailed information of US Exchange Traded Options on Options Clearing Corporation (OCC) website: www.theocc.com and Options industry Council www.optionseducation.org.

For details of Options listed on ASX and expiry date information can be found on the ASX website at http://www.asx.com.au/ or alternatively through information vendors.

3.10 Opening an Option position

Unlike shares, Options are not instruments which a person buys or sells in the ordinary sense. The relevant exchange sets the terms of the Options and, if we arrange to enter into a contract for you as Buyer (taker) or Seller (writer), we are regarded as having "opened" the contract for you. 

If you have opened a position as the taker of an Option, you have three alternatives: 

1. You can exercise the option.

2. You can hold the option to expiry and allow it to lapse.

3. You can close out the position by selling (writing) an option in the same series and instructing us to "close out" the open position. 

If you have opened a position as the writer of an Option, you have two alternatives:

1. You can let the option go to expiry and take the risk of being exercised against (if it is not exercised against, it will expire without any further obligation or liability on the writer).

2. You can close out the option by buying (taking) an option in the same series (provided it has not been exercised against).

3.11 Closing out an Option position

Options are generally not “transferrable” like an equity holding (e.g. a stock/share) and in order to dispose of your position in an Option, you need to “close out” that position. Options are closed out by entering into an option in the same series but in the opposite position. For example, if you have an open position in an option as a Buyer (taker), you close out that position by entering into an option in the same series as a Seller (writer). The contracts are “closed out” as the open position as Buyer cancels out the open position as Seller. In order to close out the entire position, you need to enter the exact same number of contracts as Seller as you hold as Buyer as any difference may leave open a residual position or create a new opposite position. Any profit on the close out is payable to you and any loss on the close out is payable by you.

An investor might elect to close out an open option contract in the following scenarios:

• The Seller (writer) of an option may want to close out the option (by taking an option in the same series) to avoid the risk of having a Buyer’s (taker's) exercise notice allocated to the Seller’s (writer's) option.

• The investor may want to take a profit. For example, the buyer of a call option may have paid a premium of $1.00 per option, and the same option series may now be able to be sold for a premium of $1.20, because the price of the underlying shares has increased. The buyer may therefore close out his or her position by selling an option in the same series, profiting from the difference of $0.20 per underling share.

• The investor may want to limit a loss. For example, the buyer of a call option may have paid a premium of $1.00 per option, and the same option series may now be able to be sold for only $0.80, because the price of the underlying shares has decreased or because the time to expiry has reduced. The buyer may therefore close out his or her position by selling an option in the same series, crystallising a loss of the difference of $0.20 per underling share.

If you are seeking to "close out" an existing position, it is important that you instruct this when you place an order through our platform.

3.12 Exercise by the Buyer (taker) and assignment to the Seller (writer)

The taker of an Option has the right (but not the obligation) to exercise the option contract. For American style options the writer of an Option may be exercised against at any time prior to expiry. For European style options the writer of an Option may be exercised against only at a certain specific time, that is, generally on the expiration date. When the taker exercises an option, the Clearing House will randomly assign that exercise to an open position held by a writer in the relevant option series and at such point the option is assigned to the writer.

Early exercise may not be available all the time, which may be due to scenarios including but not limited to corporate action adjustment of the option or on the underlying stock.

American style put options on International Exchanges currently offered by TBAU can be ONLY exercised on expiry and NOT before. Prior to exercising the option, it is imperative to ensure that the requisite quantity of the underlying asset is held, among other necessary conditions.

American style equity call options on International Exchanges currently offered by TBAU may be exercised on expiry or early exercised prior to the close of the LAST trading day BEFORE the expiration day. Prior to exercising the option, it is imperative to ensure that the requisite cash balance is held, among other necessary conditions.

 TBAU may change this rule from time to time, which will be communicated to clients in advance. The trading rules are available on https://www.itiger.com/au/help/detail/93298781?lang=en_US

3.13 Settlement following exercise of Option

When an equity option is exercised by a buyer, and the exercise is assigned to an open position of a seller, a contract for the sale and purchase of the underlying shares at the exercise price will arise between the seller and the buyer.

Index options are cash settled. When an index option is exercised by a taker, and the exercise is assigned to an open position of a seller, the seller of the option must pay the cash settlement amount to clearing house via TBAU and the relevant clearing participant.

3.14 Expiry

Options have a limited life span. All options within a particular options series share the same expiration day, which is standardized by ASX and relevant International Exchanges.

For options traded on International Exchanges, please refer to you should refer to the relevant option specification available from the exchange’s website. For options traded on US exchanges, please refer to https://www.optionseducation.org/referencelibrary/expiration-calendar. For options listed on ASX, please refer to the ASX website at  https://www.asx.com.au/markets/trade-our-derivatives-market/overview/equity-derivatives/single-stock-derivatives/expiry-calendar .

3.15 Clearing House Margin

This section contains a description of the basis upon which a Clearing House calls margin from its Clearing Participants.

As the Clearing House contracts with Clearing Participants as principals, where a Clearing Participant has an exposure under an Option contract to the Clearing House, the Clearing House will call amounts of money known as "Margin" from the Clearing Participant as cover. Margins are generally a feature of all exchange traded derivative products and are intended to help protect the Clearing House against default of a Clearing Participant or the underlying client. A margin is the amount calculated by the Clearing House as necessary to cover the risk of financial loss on an Option contract due to an adverse market movement.

The writer of an Option will ordinarily be required to pay margin in respect of that contract or provide collateral acceptable to the Clearing House. That is because the Clearing House is exposed to the risk that the Clearing Participant, on behalf of the writer, will not perform its obligations if and when the option is exercised. The taker of an Option will not be required to pay margin in respect of that contract, because they are not "at risk" – they must pay the premium up front. The premium is the maximum amount the taker of the option can lose in respect of that contract (as distinct from other amounts payable on an Option, for example brokerage on trades).

The total margin called by the Clearing House for Options is generally made up of two components, in each case, determined by the Clearing House:

• Initial margin (sometimes also known as risk margin) – this is determined by a calculation of potential change in the price of the option contract assuming a maximum probable inter-day price move in the price of the underlying security or index at the close of business on the day the contract is executed.

• Variation margin (sometimes also known as premium margin) – this is determined by reference to the market value of the underlying asset (share, index or currency) at the close of business each day.

Margin amounts are determined daily by the Clearing House after the close of trading each day. In times of extreme volatility (in the relevant market or underlying asset) an intra-day margin call may be made by the Clearing House to the Clearing Participant.

You should refer to the websites of International Exchanges on which you wish to trade for details of the margin calculation processes on such exchanges. The margining process used by ASX Clear (the Clearing House for transactions on the ASX) is explained in detail in the ASX booklet “Understanding Margins” which is available on the ASX website.

Please note, The margin requirements discussed above are imposed by clearing houses on clearing participants. TBAU is not a clearing participant of any exchange. TBAU must meet the margin and collateral requirements imposed by its clearing participants. TBAU imposes its own margin requirements on our clients, which may be different to the requirements imposed by the clearing house and clearing participants. Please see section 7 TBAU’s margin and collateral requirements for more details.   

3.16 Premium

If you are the taker (buyer) of an Option, you will be required to pay a premium in connection with the purchase of the option contract.

If you are the writer (seller) of an Option, you will be entitled to receive a premium in the connection with the sale of the Option contract.

As noted above, the only term of an exchange traded option contract which is not set and pre-determined by the exchange is the price of the contract. The price, known as the "Premium", is negotiated between the buyer and seller of the Option through the market.

The premium for an equity option is quoted on a cents per underlying share basis so the dollar value payment is calculated by multiplying the premium amount by the number of underlying shares. US Equity Options is usually 100 at the time the option series is opened, but may be adjusted by the Exchange. For example, if you buy a call option with a premium quoted at 25c per share and the contract size is 100, the total premium is $25.00 (being $0.25 x 100).

The premium for an index option is calculated by multiplying the premium (specified in terms of the number of points of the index) by the index multiplier. For example, a premium of 30 points, with an index multiplier of $10, represents a total premium cost of $300 per contract.

The value of an option will fluctuate during the option’s life depending on a range of factors including:

• the exercise price or, the price of the underlying share, or the level of the underlying index,

• the volatility of the underlying share, underlying index,

• the time remaining to expiry date,

• interest rates, dividends, exchange rates, 

• and general risks applicable to markets.

Most option pricing involves the use of a mathematical formula which includes calculating the intrinsic and time value of the particular option. Intrinsic value is the difference between option’s exercise price and the current market price of the underlying assets.

The time value of an option is essentially the amount that an option buyer pays for the potential of the option to increase in value before it expires. It reflects the possibility that the option could move into a profitable position over time due to factors such as changes in the underlying asset's price, market volatility, and the passage of time itself. Generally the time value decays over the life of the options. You should refer to the section of Options pricing on optionseducation.org  or section entitled “Option pricing fundamentals” in the ASX Booklet “Understanding Options Trading” for more information regarding the fundamentals of pricing options. optionseducation.org and ASX also provides a pricing calculator on their website. 

Clients of TBAU can obtain current option price information through TBAU’s Tiger Trade platform. You should refer to the contract specifications for any particular Option contract series prior to undertake any trading.

3.17 Adjustments

The ASX or an International Exchange or Clearing House may in accordance with its operating rules make an adjustment to any of the specifications of an option to reflect certain events: in relation to equity options for example, if the issuer of the underlying makes a bonus issue, rights issue, special dividend, capital reduction or other similar event or corporate action.

If an exchange (or relevant body) does make an adjustment to an option (or series of options) it will generally endeavour to do so in a way which puts the writer and taker in substantially the same economic position they would have been in had the adjustment event not occurred, so as to preserve the economic value of open positions of takers and writers at the time of the adjustment. In some cases, an exchange may decide not to make an adjustment for a corporate action and, instead, direct that open positions be terminated or closed out. When an exchange makes an adjustment to the terms of an option series, the Clearing House will make a corresponding adjustment to the terms of contracts which are already open.

For Options traded on International Exchanges, you should refer to the relevant option specification available from the exchange’s website. For example, the ASX has issued an Explanatory Note for Option Adjustments which can be found on their website and provides further information regarding ASX option adjustments.

3.18 No Dividends or Entitlements

The parties to an equity option do not, under the terms of the option, have any entitlement to dividends, franking credits or other entitlements paid or made by the issuer of the underlying shares. Of course, the seller of a call option or the buyer of a put option who holds the underlying shares will have an entitlement to dividends, franking credits and other entitlements, but these are entitlements of the holders of the shares, not through the option contract.

If the buyer (taker) of a call option wants to participate in a prospective dividend or entitlement, the buyer will need to first exercise the option, allowing sufficient time to become the registered holder prior to the Ex Dividend or Ex Entitlement date. The resulting sale and purchase of underlying shares on the exercise of an equity option will settle on the second or third business day (depending on the Exchange settlement period) following the exercise of the option.

3.19 TBAU and Automatic exercise 

Subject to your account having sufficient available funds in the case of call options or sufficient quantity of underlying assets in the case of put options, we will automatically exercise your taken equity Option contract if your contract is in the money which will vary with the Rules of the applicable Clearing House. For example with ASX listed options and US listed options, options will be in the money by, one cent for equity options. If your taken option contract is in the money less than 1 cent at the expiration and no action is taken, the option contract would lapse and expire.

If you do not want your option contract to be automatically exercised, you may submit do-not-exercise request through Tiger Trade app before the close of market of the expiration day. The do-not-exercise function is currently only available on equity options and it may not be available for all markets, options and all the time, such as when there is a corporate action adjustment of the option or on the underlying stock. TBAU may change this rule from time to time, which will be communicated to clients in advance. Please also refer to the trading rules on https://www.itiger.com/au/help/detail/93298781?lang=en_US

For call options the option will be in the money where the exercise price is below the price of the underlying. For put options the option will be in the money where the exercise price is higher than the price of the underlying shares.

If your cash balance/quantity of underlying assets held is insufficient, the position will be closed at market price. If it is impossible to close out at market price due to insufficient liquidity or other causes, Tiger retains the rights to lapse the option, which may result your total loss of the option.

Please also refer to the options trading rules at

https://www.itiger.com/au/help/detail/93298781?lang=en_US

3.20 Cooling off arrangements

There are no cooling-off arrangements for Options described in this PDS. You may request to discard any non-transmitted order or request to cancel a transmitted order. However, you should note that due to nature of exchange based trading, while you may request to cancel your order, such request may not be successful if your order has traded against another order in the time between when you request to cancel it and when that instruction is processed by the relevant exchange. A working order is not cancelled until clearly indicated by TBAU, for instance in status field of Tiger Trade Platform.

3.21 Information on trading strategies

Clients are permitted to perform following types of transactions:

• Buy calls and puts on equity and index options

o   you pay premium and brokerage and fees to buy the right to exercise to buy or sell the shares.

o   It may be used to hedge or protect fluctuations in the underlying assets or against future cash flows; speculate to capitalise on market movements; gain time to decide whether and when to purchase or sell the shares; and diversifying the portfolios.

o   The risk of financial loss is limited to the premium and fees paid for entering the options.

• Short covered calls on equity options

o   you receive premium(and pay brokerage and fees) in exchange for entering into a contract to be obligated to sell existing shares already owned if assigned.

o   It provides the opportunity to earn additional income by receiving the upfront premium

o   You forego the upside potential in security value and it does not protect against the underlying asset losing value in down market, although the premium received could add limited downside cushion.

o   You will forego the ability to sell the underlying shares that are being used to cover the call options.

o   The risk of financial loss is limited but can be substantial, the worst case of which is when the underlying assets become worthless.  However such risk is not introduced by writing the option and it is inherent in almost any form of stock ownership.

• Short cash-secured put options on equity and index options

o   it involves writing a put option and simultaneously setting aside/posting sufficient cash as collateral to buy the stocks if assigned.

o   you receive premium(and pay brokerage and fees) in exchange for entering into a contract to be obligated to buy shares in case of equity options(or effectively pay the difference between the exercise price and settlement value multiplied by the contract multiplier in cash in case of index options) if assigned.

o   It provides the opportunity to earn additional income by receiving the upfront premium

o   When you sell an uncovered put you can be exposed to material risk including leveraged losses limited to the underlying securities decreasing in value to the maximum of zero. To write cash-secured put options, the cash collateral requirement is calculated as the exercise price * contract size* number of contracts, which will effectively cover the worst case scenario since the initiation of the contract and throughout the life of the contract.

o   You will forego the liquidity and investment potential of the cash balance that are being used as the collateral for the short put positions.

o   The risk of financial loss is limited but can be substantial, the worst case of which is when the underlying assets become worthless. Your liability in relation to write the cash-secured put option is limited to the amount of cash balance set aside as cash collateral and you are generally not subject to any margin call risk. However, this will not, in any way, alleviate the significant loss potential.

For more information, please refer to the Target Market Determination- Exchange Traded Options and the option strategy page on our website, the option strategies on www.optionseducation.org, and ASX’s “Understanding Options Trading”.

4. SIGNIFICANT BENEFITS OF OPTIONS

There are a number of benefits in trading Options, including the following:

• Standardisation: As discussed in sections above because Options are standardised and therefore interchangeable, you may through the ASX or International Exchange or Clearing House open and close positions, depending on the liquidity of the market in the relevant contract.

• Risk Management: Through the processes of novation and margining, the Clearing House assumes and manages the risk of Options entered into on the Relevant Exchange. This reduces counterparty risk in a way which is not available in over-the-counter (OTC) derivatives transactions. TBAU has certainty that the other side of the Options contract will be honoured, and we (and therefore you) will not be subject to risk that the counterparty to the original Options contract may default in their obligations under the contract.

• Hedging: Investors can use Options to hedge (protect) their share portfolio, for example, buying put options over particular shares to hedge against a drop in value.

• Income: option holders can earn income by writing an option over an underlying asset and receiving the premium upfront.

• Time to Decide: By taking a call option, the purchase price for the underlying shares is locked in. This gives the call option holder time to decide whether or not to exercise the option and buy the shares. The holder has until the expiry date to make their decision. Likewise the taker of a put option has time to decide whether or not to sell the shares.

• Profit in Rising or Falling Market: Investors can profit from both a rising and falling markets depending on the strategy they have employed. Strategies may be complex and strategies will have different levels of risk associated with each strategy.

• Diversify Portfolios: Given the lower initial outlay required for options trading, investors may be able to diversify their portfolios and gain a broad market exposure over a range of shares or over an index itself which would otherwise require an investor to purchase each of the shares that constitute the index for a significantly lower initial outlay.

• Speculation: You can use Options to speculate on market movements as the flexibility of entering and exiting the market prior to expiry (subject to liquidity) permits an investor to take a view on market movements and trade accordingly. In addition the variety of options available (for example, different strikes and expiry dates) allows option combinations and strategies regardless of the direction of the market. Options allow you to gain exposure to a particular underlying security or index without the need to buy or sell the underlying itself.

• Range of market positions and strategies: You can potentially profit both from rising and from falling markets depending on the strategy you have employed. Through the use of Options, strategies can be tailored to suit different market views.

• Leverage: Options generally involve a high degree of leverage. Options enable you to outlay a relatively small amount of money to secure an exposure to the underlying assets.

For example, assume you have a positive view about the prospects of XYZ Ltd. You can either buy 1,000 XYZ Ltd shares at $1.00 and pay your broker $1,000 (plus costs) or you could buy a call option contract over 1,000 XYZ Ltd shares and pay a Premium at the time the Option is entered into (plus costs).

The same amount of exposure to the underlying shares has been achieved, but for a much smaller outlay. Given a movement in the price of XYZ shares, the percentage returns (positive or negative) from the Options strategy are likely to be much higher.

Assume, for example, XYZ Ltd June $1.00 Call option is trading at premium of $0.10 and XYZ Ltd shares are trading at $1.00. Each contract covers 100 shares. The following table compares the returns, assuming that the XYZ share price rises to $1.50 by maturity (transaction costs are ignored).

Note: the example provided is for illustrative purposes only and does not necessarily reflect the outcome of any actual trading in Options in similar circumstances.

Important: Leverage can work against you as well as for you. The use of leverage can lead to large losses as well as large gains. See section 5 for further information on risks.

 5. SIGNIFICANT RISKS OF OPTIONS

You should be aware that the risk of loss in trading in Options, like all derivatives, can be substantial. It is important that you carefully consider whether trading Options is appropriate for you in light of your knowledge, investment objectives, financial circumstances and needs. Options are not suitable for some retail investors and we recommend that you consult your financial adviser to assist you in understanding the risks of trading Options prior to investing.

You should only trade Options if you understand the nature of the products and have a clear understanding of and tolerance for the losses that such trading may incur. The risks attached to investing in Options will vary in degree depending on the option traded.

Some of the main risks associated with Options include the following:

• Price Sensitive Announcements: As a general rule, price movements in the underlying share or index can significantly affect the value of Options. The value of the underlying share or index themselves are affected by amongst other things including the information that is announced to the ASX or International Exchange in relation to the share or index (or the constituent shares of the index) such as credit ratings and issuer announcements.

Accordingly, it is advisable that an investor in Options regularly reviews information announced to the relevant exchange in relation to relevant underlying shares, index or other underlying assets.

For the ASX price sensitive announcements in relation to shares are available on the website at: www.asx.com.au/asx/statistics/todayAnns.do.

• High Leverage: The high level of leverage that is obtainable when trading Options (due to the low level of initial capital outlay) can work against an investor as well as for the investor. Depending on the market movement, the use of leverage may lead to large losses as well as large gains, as leverage effectively magnifies exposures and losses. This is especially relevant if you are the writer or Seller of any Option which requires that you may be obliged to deliver cash or securities if the option is exercised by the Taker (see further below).

Returning to the example of an Options contract over XYZ shares used previously, consider the result if the share price, instead of rising to $1.50, fell to $0.90 at maturity. The following table shows the results (transaction costs are ignored).

Leverage has served to multiply the loss suffered in percentage terms. 

• Liquidity: Under certain market conditions, it could become difficult or impossible for you to close out a position, and the relationship between the prices of the Exchange Traded Derivative and the underlying market may be distorted or affected. Examples of when this may happen are:

  • if there is a significant change in the price of the underlying commodity, instrument or security over a short period of time;

  • if there are insufficient willing buyers and sellers in either the Option or the underlying market;

  • if the Option market is suspended or disrupted for any reason.

Similarly, events such as these in relation to the market for the underlying asset may make it difficult for you to hedge or maintain your exposure.

• Limited Life Span: Options have a limited life span as their value erodes as the option reaches its expiry date. It is therefore important to ensure that the option selected meets the investor’s investment objectives and investment horizons.

• Underlying Market movements: Because the value of Options are dependent partly on the value of the underlying assets, any changes in the underlying market may impact the underlying asset value, and may impact your position in Options. Changes in the underlying market may make it difficult to maintain the hedge or maintain your exposure under an open Option contract. There is also a risk that an Option you have purchase may fall in price or become worthless at or before expiry.

• Loss of Premium for Buyers: The maximum loss in taking (buying) an Option is the amount of premium paid to acquire the option which is in addition to the transaction costs you pay to TBAU as your broker. If the option expires worthless, the taker will lose the total value paid for the option in addition to the transaction costs (e.g. brokerage or commission) you have paid.

• Potentially Unlimited Loss for Sellers: Whilst sellers (writers) of Option’s earn premium income, they may also incur theoretically unlimited losses if the market moves against the option position and they do not hold the underlying security. The premium received by the writer is a fixed amount; however the writer may incur losses greater than that amount. For example, the writer of a call option has increased risk where the market rises. If the option is exercised and assigned to the option writer for delivery, the writer will be forced to buy the underlying shares at the current (higher) market price in case of shorting a naked call(currently not offered by TBAU) or deliver the underlying shares held in case of shorting a covered call. Similarly where the market falls, the writer of a put option is exercised and assigned to the writer, the writer is forced to buy the underlying shares from the taker at a price above the current market price. In either case, as a seller of an option, you may be required to deliver or take delivery of an asset at a value which is disadvantageous compared to its market price. You should not risk more funds than you can afford to lose. A good general rule is never to speculate with money which, if lost, would alter your standard of living.

  In the case of sellers of index options, you will be effectively required to pay the difference between the strike price and settlement value multiplied by the contract multiplier in cash if the option is exercised and assigned to the seller.

• Loss of Stock for Writers of Covered Call Options: Writers of covered calls (where the writer holds shares) will if the contract is exercised, be forced to deliver the underlying stock at the exercise price which will be below the current market price. 

• Placing orders in a moving market: Placing of contingent orders (such as a ‘stop-loss’ order), an order that becomes a market order (and hence executes) when the derivative market reaches the designated price, may not always limit your losses to the amounts that you may want. Market conditions may make it impossible to execute such orders. For example, if the price of the underlying asset moves suddenly, your stop loss order may not be filled, or may be filled at a different price to that specified by you, and you may suffer losses as a result.

• Exchange and Clearing House powers: ASX, International Exchanges and Clearing Houses commonly have broad discretionary powers in relation to the market and the operation of the clearing facility. They have power to suspend the market operation, or lift market suspension in options while the underlying securities are in a trading halt if the circumstances are appropriate, restrict exercise, terminate an option position or substitute another underlying security (or securities), impose position limits or exercise limits or terminate contracts. Whilst such powers ostensibly exist to ensure fair and orderly markets are maintained as far as practicable, the consequence of an exchange exercising such powers may not be economically beneficial to you individually. Actions taken by an exchange may affect an investor’s option positions.

• Trading Disputes and Trade Cancellations: Trades executed may be subject to dispute. When a trade is subject to a dispute the exchange or Clearing House commonly has powers, in accordance with its rules, to request that a broker amend or cancel a trade, which will in turn result in the contract with the client being amended or cancelled. In some situations, the exchange or Clearing House may also exercise powers to cancel or vary, or direct the cancellation or variation, of transactions.

• Trade Amendments and Cancellations: Under terms of TBAU’s agreement with you, TBAU has the ability to amend or cancel a trade. This could cause you to suffer loss or increase your loss. A trade executed on your behalf can also be amended or cancelled even where the trade has been confirmed to the client.

• System Outages: Trades effected on an exchange are traded on an electronic trading platform and cleared through the Clearing House, which also relies on electronic systems. As with all such electronic platforms and systems, they are subject to failure or temporary disruption. If the system fails or is interrupted we will have difficulties in executing all or part of your order according to your instructions. An investor’s ability to recover certain losses in these circumstances will be limited given the limits of liability commonly imposed by the ASX, International Exchanges and the Clearing House. Any market disruption may mean a client is unable to deal in Options when desired, a client may suffer a loss as a result. Common examples of disruption include a fire, technology interruption or other exchange emergency. The exchange could, for example, declare an undesirable situation has developed in a particular Option contract and suspend trading. Exchanges or participants may also be able to cancel transactions under their operating rules.

• Capital Loss: By trading in Options, you are exposed to the risk of losing capital. Speculators should not risk more capital than they can afford to lose. A good general rule is never to speculate with money which, if lost, would alter your standard of living.

• Default: If you fail to meet your obligations to us under your agreement with TBAU (T&Cs), including but not limited any action or inaction which we have agreed constitutes a default under the T&Cs, we may, in addition to any other rights which we may have against you, and without giving prior notice to you, take any action (which may include entering into risk reducing positions by closing out some or all of your open positions and or exercise open positions), or refrain from taking action, which we consider reasonable in the circumstances in connection with the open positions in your Account with us and you must account to us as if those actions were taken on your instructions and you are, without limitation, liable for any deficiency and are entitled to any surplus which may result.

• Dealing on Markets Outside Australia: The execution and clearing of Options on International Exchanges outside of Australia are subject to the rules of the International Exchange and Clearing Houses, which may differ from the rules of ASX and ASX Clear. Similarly, execution of your orders in respect of Options on an International Exchange is subject to the laws of the relevant jurisdictions, which may differ from Australian laws. Such trading actions are subject to the supervision and regulation by overseas regulators, whose functions and powers may differ from those of Australian regulators such as the Australian Securities and Investments Commission.

• Exchange Rate Risk: If you trade in Options on International Exchanges, the positions are likely to be denominated in a currency other than Australian dollars. The holding of positions and trading of products denominated in a foreign currency exposes you to the potential risk (and potential benefit) of exchange rate fluctuations. The exchange losses can occur, for example, when converting the proceeds back to the local or base currency, such as AUD. The realised exchange loss can be in addition to any losses(or gains) on the product itself.

• Time Zone Difference for Australian Clients dealing in foreign markets: You should be aware that outside of the Asia Pacific Region there are significant time zone differences between Australia and the major global financial markets centres in Europe and the United States. If you are dealing on these markets, your orders will likely be executed outside of normal Australian business hours and/or during the Australian night time. In addition major market events or events which impact individual stocks or currencies may also take place well outside of normal business hours or normal market hours in Australia. This in turn may have impacts on the values of Options in your account.

• Sanctions Legal Risk: Australia is a member of the United Nations and observes and implements United Nations Security Council sanctions. TBAU must comply with restrictions imposed by sanctions and may be prohibited from dealing with certain persons or entities. If it appears that you are or may be acting on behalf of a prescribed person or entity, TBAU may be required to suspend, cancel or refuse services to you, freeze your assets held by us or close or terminate your agreement with us. If we are required to take action it may result in significant costs to you

• Market emergencies: You may incur losses that are caused by matters outside the control of TBAU and brokers/market participants appointed by TBAU. For example, a regulatory authority exercising its powers during a market emergency may result in losses. A regulatory authority can, in extreme situations, suspend trading or alter the price at which a position is settled. This could also result in a loss.

• Market disruption: A market disruption may mean that you are unable to deal in an Exchange Traded Derivative when desired, and you may suffer a loss as a result. Common examples of disruption include the “crash” of the exchange electronic trading system, fire or other exchange or Clearing House emergency.

• Australian regulators may not have any jurisdiction: Neither the Australian Securities and Investments Commission nor Australian exchanges regulate activities of foreign International Exchanges, nor do they have the power to compel enforcement of the operating rules of a foreign International Exchange or any applicable foreign laws. Generally, the foreign transaction will be governed by applicable foreign law. This is true even if the International Exchange is formally linked with an exchange in Australia.

Please be aware that this PDS does not cover every aspect of risk associated with Options, for instance, you should consider reviewing the resources made available by the ASX under “ASX Options knowledge hub” on its website and other similar resources provided by the operator of the International Exchanges upon which you are considering trading. For a further explanation you should seek appropriate independent advice from a qualified professional.

6. EDUCATIONAL MATERIAL

6.1 For US Exchange Options

Please read the educational materials on

• www.optionseducation.org

• https://www.cboe.com/optionsinstitute/

• https://www.theocc.com/company-information/investor-education

6.2 For ASX Options

The ASX has prepared a number of educational booklets and factsheets relating to Options. Before trading you should understand the concepts and information set out in the following documents:

7. TBAU'S MARGIN AND COLLATERAL REQUIREMENTS

The margin requirements discussed in section clearing house margin are imposed by clearing houses on clearing participants. TBAU is not a clearing participant of any exchange. TBAU must meet the margin and collateral requirements imposed by its clearing participants. TBAU imposes its own margin and collateral requirements on our clients, which may be different to the requirements imposed by the clearing house and clearing participants.        

Clients are permitted to perform following types of transactions and are subject to the corresponding requirements below:

Buy calls and puts on equity and index options: clients are only required to pay the upfront premium and there is no margin or collateral requirement applicable.

Short covered calls on equity options: clients are permitted to write call options equivalent to the numbers of shares of the underlying stocks in their possession, whether settled or unsettled. Clients can only sell the underlying stocks up to the quantity not being used as the collateral to cover any short call positions.

For example, if the client wishes to write 3 calls on XYZ stock with a contract size of 100 shares, the client must own at least 300 XYZ shares.  If, subsequently, the client intends to sell 200 shares after shorting the covered calls, assuming a total of 400 shares currently held, the client must close at least 1 call contract first to release 100 shares before s/he could place the sell order of 200 XYZ shares. 

Short cash-secured put options on equity and index options: to write cash-secured put options, the collateral requirement is calculated as the exercise price * contract size* number of contracts. The collateral requirement can be met by having sufficient cash balance in the currency of the option in the trading account, encompassing both settled fund and unsettled fund. The unsettled fund can be the proceeds from sales of financial products or currency exchange transactions prior to the settlement date. Cash balance in other currencies will not count. Cash balance used as the collateral will not be available for withdrawal or any other purposes until the short put position is closed.

For example, to short 2 put options on XYZ stocks with the exercise price of 10 USD and a contract size of 100 shares, clients are required to have the cash balance of at least 2,000 USD to open and maintain such position. The entirety(or portion) of the 2,000 USD cash balance used as the cash collateral will not be made available for withdrawal or any other use until the position is fully(or partially) closed.

Clients conducting any types of options above are generally not subject to any margin call risk.  However, same as holding other types of financial products, the option positions can be subject to forced liquidations if the client owes money or incur debt to TBAU. 

8. CLIENT MONEY

TBAU must deal with any money which you pay or give to TBAU, or which is otherwise received by TBAU for the Services provided by TBAU, in accordance with the Corporations Act and Applicable Laws. For instance, TBAU may be required to pay these monies in a client’s segregated account or into a trust account which complies with the requirements of the Corporations Act. You acknowledge that your monies and the monies of other clients of TBAU may be combined and deposited by TBAU in a client’s segregated account or a trust account.

You authorise TBAU to withdraw any or all monies to which you are otherwise entitled in any clients' segregated account or trust account maintained by TBAU to meet any liability, obligation or other Loss which you owe to TBAU.

TBAU is entitled to, and will retain, all interest or income accrued or paid by ADIs, service providers and financial service licensees in respect of the client money held by TBAU. TBAU may in its discretion elect to pass through to you some or all of the interest or income accrued on the uninvested cash balance we hold for you as client money. please refer to Financial Service Guide for more details.

9. FEES AND CHARGES

The following is a summary description of the fees and charges associated with trading in Options. 

The fees and charges payable will differ depending on the product, exchange and Clearing House concerned. Due the breadth of exchanges available on which you may trade the Products described in this PDS, we ask you to refer to the Financial service Guide for information on what fees and charges are payable.

You should read the important information about the fees on our website and in Financial Service Guide before making a decision. The material relating to the fees may change between the time when you read this PDS and the day when you acquire the product. 

9.1 Brokerage Fees 

We charge Brokerage fees. , which includes commission and platform fee. Please refer to our website and Financial Service Guide for details.

9.2 Regulatory fees

We pass on third party fees to you when we arrange to execute and clear trades on your behalf. The third party fee includes but not limited to fees charged by Exchanges, Regulators and for clearing service. Please refer to our website and Financial Service Guide for details.

9.3 Taxes

Transaction taxes, such as value added taxes may apply in some jurisdictions. The taxation implications of trading in Options will depend on your particular circumstances and it is recommended that you obtain your own independent taxation advice. See section 11 for a more detailed discussion of significant taxation implications.

9.4 Market data service fee

We are charged royalty fees by the domestic and other international markets for the market data you use. There are various data options available on our trading platform for our clients. When you submit an account application online, you will be asked whether you are a non- professional investor. You may be required to pay a market data fee if you activate certain market data subscriptions. Please refer to our online trading platform for details about applicable market data fees.

9.5 Other fees and charges

There may be other fees such as (but not limited to) currency conversion fee that may apply. For more details, visit https://www.itiger.com/au/ under Pricing and our Financial Services Guide.

10. COMPENSATION SCHEMES

In relation to ASX, the National Guarantee Fund (NGF) provides investors with various protections. For example, if an equity option is exercised, the NGF guarantees completion of the resulting trades in certain circumstances. Also, if property is entrusted to a member of ASX (such as our designated Clearing Participant), and it later becomes insolvent, you may, through us, have a claim on the NGF. TBAU is NOT a participant of ASX and therefore does not itself have NGF coverage. There are limits on claims to the NGF for property entrusted. For more information on the possible protections offered by the NGF see http://www.segc.com.au.

TBAU is also NOT a member of any International Exchanges and therefore you may not have access to any compensation scheme for such exchanges.

11. DISPUTE RESOLUTION

If you have any concerns or complaints about the financial service or financial products provided to you, you could let us know :

By email: compliance@tigerbrokers.com.au

By Post: Suite 28.01, 25 Bligh Street Sydney, NSW 2000

By phone: +61 02 9169 6999

If you are not satisfied with how your complaint is responded to by TBAU or 30 days have elapsed, you may direct your concerns in writing to the Australian Financial Complaints Authority (“AFCA”) which is an independent dispute resolution scheme of which TBAU is a member. The dispute resolution scheme offered by AFCA is provided to you free of charge. AFCA details are:

Australian Financial Complaints Authority

GPO Box 3, Melbourne, Victoria 3001

Telephone: 1800 931 678

Internet: www.afca.org.au

Email: info@afca.org.au

11. TAXATION IMPLICATION

TBAU does not provide tax advice. It is important to note that a client’s tax position when trading option contracts will depend on your individual circumstances and the trading strategies that you adopt.

We strongly recommend that you seek independent professional tax advice on the tax implications relevant to your circumstances before trading any option contracts.

12.1 Goods and Services Tax (GST)

The purchase and disposal by investors of Options over financial products and indices is not subject to GST.

GST is not payable on brokerage and fees charged on ETOs that are listed on International Exchanges.

GST is payable on brokerage and fees charged on ETOs that are listed on ASX.

12.2 International tax information sharing

TBAU has certain obligations to report transaction information to the Australian Tax Office (ATO) on citizens of other countries, including in connection with the US Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). We may also request you to provide certain information.

We do not provide taxation advice, or advice about FATCA or CRS. You should consult your personal tax adviser if you believe that you are impacted by FATCA or CRS obligations.