Hantec Markets (Australia) Pty Ltd ACN 129 943 086

Address: Level 18, 2 Park Street Sydney NSW 2000 Australia

Website: www.hantecmarkets.com

Phone: +612 8017 8099

Australian Financial Services Licence Number: 326907

Preparation date: 1 July 2020

Version: 1.5

You deal with Hantec Markets (Australia) Pty Ltd (HMA, we, us) as counterparty to every transaction you enter into. So, you will have an exposure to us in relation to each transaction if we are not ready, willing or able to meet our obligations (for example, if HMA were to become insolvent).

You are reliant on our ability to meet our counterparty obligations to you to settle the relevant contracts. We limit this exposure by hedging our exposure to our clients by entering into transactions as principal in the wholesale market with entities called “liquidity providers”. This exposes HMA to counterparty risk with that hedging party.

Our policy to manage our exposure to market risk from client positions is to offset (hedge) some client trades with external liquidity providers on a back-to-back basis. That means if you place a trade with us, we may place an identical trade with the liquidity provider. Whilst this limits risk to HMA, it does not eliminate the risk. We choose liquidity providers based on their ability to provide liquidity in the underlying market as well as the strength of their balance sheet.

Determining whether Hedging Counterparties are of sufficient financial standing:

Prior to engagement, and on an ongoing basis, we ensure the hedging counterparties:

1. are appropriately licensed (except where they are not required by law to be licensed, and they are a company related to us) and regulated in the relevant jurisdiction;
2. have sufficient financial resources to service our needs and the volume of trades we anticipate placing with them (we analyse their financial statements on an ongoing basis);
3. have adequate compliance resources; and
4. a proven track record in relation to Over-The-Counter (“OTC”) products.

HMA’s current counterparties are:

This Policy was last updated on 20 July 2020.