CFD trading: Important notice

In compliance with the 'Revision of Financial Instruments and Exchange Act' published on 28 December 2010, and effective from 1 January 2011, new leverage restrictions apply to our clients.

Due to the recent changes in regulation, we will soon have higher margin requirements for stock index CFDs, share CFDs, and bond CFDs, meaning that some clients may face forced settlement on some or all of their positions. Please check your positions carefully and reduce your trade volumes or deposit additional funds if necessary.

Under the new regulations, we are required to manage your funds according to the following margin rates and leverage restrictions.

CFD Category	Margin Requirement	Leverage
Share CFDs	Over 20% of trade value	Under 5 times trade value
Stock indices	Over 10% of trade value	Under 10 times trade value
Bonds *1	Over 2% of trade value	Under 50 times trade value
Other CFDs *2	Over 20% of trade value	Under 5 times trade value

*1 We only offer 'Rates' CFDs in this category
*2 We do not offer any CFDs in this category

The regulatory changes mean that our clients now face higher margin requirements, which may lead to the forced settlement of existing positions. Please check the eight conditions below and make necessary arrangements (such as reducing positions, and transferring or depositing additional funds) to ensure you are within the specified margin requirements.

Please note that those who only trade FX are not affected by these changes.

All client assets have been, and will continue to be, managed in a dedicated account, separate from our own assets, since November 2006.

Reference: Financial Service Agency: 'Revision of Financial Instruments and Exchange Act, publication outlook' (JAP).

Introduction of higher margin requirements

Point 1: We will be introducing five new CFD accounts as of 11 December 2010. We will then have a total of six accounts, including the FX account.

Point 2: We will allocate your funds and any existing positions will be re-opened in relevant account on 11th December.

Point 3: We will no longer offer ETFs and some other markets as of 11 December 2010.

Point 4: Any Mini and Forward positions will be altered to Standard positions.

Point 5: The calculation of the required margin for positions of Share CFDs, Indices and Bond that has been hedged will be amended.

Points 6: We will introduce revised margin requirements for share CFDs, stock index CFDs and bond CFDs from 18 December 2010.

Point 7: From 18 December 2010, we will no longer offer Guaranteed stops and stop orders placed will no longer benefit from reduced margin requirements.

Point 8: Along with point 7 any existing positions or working orders with Guaranteed Stops placed will be altered to include Stop orders from 20th December.

Schedule

12/4	Revised Customer Agreement and Statement of Important Matters.
12/11	Point 1,2,3,4 and 5 - Five different CFD accounts will be introduced. - New positions will be re-opened - ETFs and some markets will be taken down. - Any positions that are affected in Point 3 will be amended to Standard Contracts. - The calculation of the required margin for positions that has been hedged will be amended.
12/18	Point 6 and 7: - Revised leverage for share CFDs, stock index CFDs and bond CFDs will be introduced. - Margin requirements for the existing positions with Guaranteed stops and stop orders will not be reduced.
12/20	Guaranteed Stops on existing positions will be changed to standard stop orders. The opening level of the relevant position will then be amended to reflect a reimbursement of the Guaranteed Stop premium.
12/31	Expiry of any ETF positions