(A) General Terms and Conditions

This Agreement sets out the terms governing the use of trading services offered by ETX Capital. It comprises these General Terms and Conditions (Part A), the Risk Disclosure Statement (Part B) the Glossary (Part C). We also append our Execution Policy.

These terms and conditions are effective from 1st July 2010.

1Company Information

1.1 Unless notified otherwise by ETX Capital, the contact details for ETX Capital are as follows:

Address: Beaufort House, 15 St Botolph Street, London, EC3A 7DT.

Email: info@etxcapital.co.uk

Telephone number: +44(0)20 7392 1494

Monecor (London) Limited, trading as ETX Capital, is authorised and regulated by the Financial Services Authority (the 'FSA') with registration number 124721. The FSA can be contacted at 25 The North Colonade, London E14 5HS. Their website address is www.FSA.gov.uk.

2This Agreement

2.1 This Agreement governs the relationship between you and ETX Capital. It should be read carefully, in particular with regards those terms dealing with Market Disruption, Margin requirements and Margin Calls, Force Majeure Events and our respective liability to each other (Clauses 10, 12, 13, 19 and 23 respectively). By clicking on the 'I AGREE' button (or such replacement button that indicates acceptance) on the Website or signing the account opening documentation, you agree to be legally bound by its terms.

2.2 Certain words appearing in this Agreement have been given particular meanings: where capitalised words are not defined in the relevant clause, the definitions set out in the Glossary at Part C shall be applicable.

2.3 'Trading', 'betting', ‘trades’ and ‘bets’ are used interchangeably in this Agreement, and have the meaning set out in the Glossary at Part C.

2.4 This Agreement represents the entire agreement between the parties and supersedes any previous agreement that may exist. Each party agrees that all other terms, conditions, representations, warranties and other statements which would otherwise be implied (by law or otherwise) will not form part of this Agreement, and acknowledges that in entering into this Agreement it places no reliance on any representation, warranty or other statement other than as set out in this Agreement.

3Your Account

3.1 ETX Capital must accept you as a Client before you are entitled to use the ETX Capital Services. Applications may be made by either (i) obtaining from us or printing from the Website an application form, completing this and returning it to us, or (ii) completing the application form and submitting it to us online. No other form of application is permitted. If there is any change in the information you provide during the application process, you must notify ETX Capital immediately.

3.2 ETX Capital may obtain personal data from a third party agent for the purposes of processing your application. This may include the results of checks with credit reference and fraud prevention agencies (who may keep a record of the search), other financial organisations and your employer.

3.3 You must provide all information and evidence specified by ETX Capital for the purposes of verifying your identity. If ETX Capital is not satisfied with the information provided, it may request additional information. ETX Capital has no obligation to further process or accept a Client's application until verification procedures have been completed to the satisfaction of ETX Capital.

3.4 ETX Capital may refuse your application for any reason and is not obliged to provide you with any reason for so doing.

3.5 After accepting your application we will open your account. We may open different types of accounts depending on the nature of your trading. For example, you may be invited by us to trade mainly online or alternatively over the telephone.

3.6 We may inform you that your Accounts will be Linked Accounts. Your Linked Accounts will be aggregated for the purpose of calculating your Margin Level, your Total Margin or otherwise as specified in this Agreement.

3.7 You must keep your password secure and confidential. At no time will ETX Capital employees ask you for your password, and under no circumstances should you divulge it. If you become aware or suspect that your password has been ascertained by a third party, you must inform ETX Capital immediately. ETX Capital accepts no responsibility for any unauthorised use of any client's account and/or password.

4Basis of Trading

4.1 ETX Capital is the counterparty to all trades executed using the ETX Capital Services. All trades are on a principal-to-principal basis (meaning that ETX Capital will not be entering into trades as your agent) unless otherwise specified. They are performed by ETX Capital on the receipt of instructions from you and on an execution-only basis - ETX Capital is under no obligation to satisfy itself of the suitability of any trade, to monitor or advise upon its performance or, subject to FSA Rules, to make Margin Calls or to close out positions.

4.2 Any information supplied by or on behalf of ETX Capital should not (and will not be deemed to) be taken to constitute advice to you on the suitability, risks, merits or demerits of any specific trade. ETX Capital does not guarantee or warrant the accuracy, timeliness, completeness or correctness of any information it may make available to you. ETX Capital does not advise on the merits of particular transactions or their tax consequence.

4.3 Upon clicking on the 'I AGREE' button or otherwise submitting the account opening documentation, and each time you open or close out a trade, you represent and warrant on a continuing basis to ETX Capital to the intent that such warrant shall survive the completion of any trade, that:

(a)You enter into this Agreement and any trades pursuant to it on your own behalf as principal and not as agent (or trustee) for any other party;

(b)No Act of Insolvency has occurred in relation to you;

(c)You have all requisite legal, corporate and regulatory authority to enter into this Agreement and any trades made pursuant to this Agreement and any person affirming acceptance of this Agreement on your behalf has been and is duly authorised to do so;

(d)You are 18 years of age or older;

(e)All information you supply to ETX Capital during the application process and otherwise from time to time is complete, true, current and accurate;

(f)You are not contravening any legislation in the country from which you are placing your trades. (Note that ETX Capital will normally only accept Clients based in countries which are FATF Members - that is, those countries approved by the Financial Action Task Force or equivalent. If in doubt, you can check this at www.fatf-gafi.org.);

(g)You have all necessary, licences and approvals, and are duly authorised and empowered to perform your duties under this Agreement, and will do nothing prejudicial to the continuation of such authorisation;

(h)In asking ETX Capital to enter into any trade, you have been solely responsible for making your own independent appraisal and investigations into the risks of the trade; and

(i)You represent that you have sufficient knowledge, market sophistication and experience, or have received sufficient professional advice in order to enable you, to make your own evaluation of the merits and risks of any trade.

4.4 If you hold a Financial Spread Betting account you will be classified as a Retail Client, unless we agree otherwise. If you hold a Contract For Differences (CFD) account you may be classified as either a Professional Client, Retail Client or an Eligible Counterparty. If we agree to classify you differently to a Retail Client (eg Professional Client or Eligible Counterparty) you will lose the protection of certain FSA Rules.

4.5 ETX Capital need not make any payment or accept any instructions or act on them, if such instructions do not contain information that we reasonably require or if such payment or instructions may breach any applicable law, rule regulation, or our internal procedures.

4.6 Placing of trades does not create any rights of ownership or otherwise in any Underlying Market. We will not transfer any Underlying Market or any rights in it to you.

4.7 It is the customer’s responsibility to ensure that any trades that he or she places outside the UK do not breach any overseas regulations.

5Risk Warnings

5.1 Both Financial Spread Betting and trading CFDs are examples of Financial Derivatives. Trading Financial Derivatives carries a high level of risk to your capital; therefore you should only speculate with money that you can afford to lose. Trading Financial Derivatives may not be suitable for all investors.

5.2 If you do not fully understand the risks associated with Financial Derivatives, ETX Capital recommends that you seek independent advice. If you are a director or employee of, or adviser to a company, you should seek legal advice before entering into any Financial Derivative in the shares of that company.

5.3 As a result of participating in Financial Derivatives, not only could you lose all the money you invest, but you may also rapidly become liable for an amount considerably greater than the amount of your initial deposit. You should only use the ETX Capital's services if you are able to afford the losses described above and fully understand the risks involved in Financial Derivatives.

5.4 Past performance is no indicator of future performance.

5.5 Section B further explains the risks involved with trading Financial Derivatives. Please ensure that you fully understand and carefully consider the risks associated with trading Financial Derivatives prior to using any of the ETX Capital Services.

6Our Charges

6.1 Depending on the type of account held you may be charged a Spread or Commission when you place a trade in a Market. When you spread bet with ETX Capital you will be charged a Spread, whereas if you trade a CFD you will generally be charged a commission. The spread or Commission charged differs in size depending on the Product. ETX Capital may from time to time share a percentage of this spread or Commission with third parties who have introduced clients to ETX Capital. Details of any sharing arrangements that may apply to your account are available on request.

6.2 In respect of some account types, the Spread or Commission that will be charged depending on the circumstances of each trade will be agreed in advance with you.

6.3 Please be aware that, depending on the Product concerned we may charge you for overnight financing and/or apply dividend adjustments to your trade as set out in clauses 10.24 and 16.4 respectively.

6.4 There may also be an overnight borrowing charge applied to any Short Positions you hold with us. Sometimes we are charged this extra fee when we borrow stock to hedge your position and it is usually related to the scarcity of the stock concerned. These charges can fluctuate daily. We will advise you of any such charges as soon as possible after we become aware that they have been incurred.

6.5 If you trade in a currency other than your nominated account currency it is possible to realise a profit or loss in this non nominated account currency. As a result you may find that you have multiple balances in different currencies. When we (acting reasonably) consider it necessary, for example when you have large multi currency balances or when requested by you, balances will be converted back to your nominated account currency at a rate not worse than 0.5% away from the Spot Price at the time of conversion. Where we deem it necessary for a currency conversion you will be given prior notice.

Other Charges

6.6 ETX Capital may charge you any costs it may incur when processing a deposit or withdrawal of funds. Details relating to such charges can be found on the Website by clicking on the 'Add Funds' link in your online account. Your bank or other relevant third party may levy additional charges in connection with the deposit and/or withdrawal of funds. Any such third party charges will be borne by you.

6.7 ETX Capital may deduct any and all such charges from your account without further notice to you.

6.8 You acknowledge that other taxes or costs may exist that are not paid through, or imposed by, ETX Capital. You are responsible for any such additional taxes or costs.

6.9 There may also be circumstances where we pass on additional charges, such as stamp duty or other taxes, which we might incur when hedging your trade in an Underlying Market in a non-UK security.

6.10 ETX Capital reserve the right to charge interest at a rate of up to 8% above the prevailing base rate of The Bank of Scotland plc in respect of any debit balance, unpaid Margin or other sums overdue to it under this Agreement.

6.11 Any sums due to ETX Capital in accordance with the terms of this Agreement may be deducted from your Trade Funds Available on notice to you.

7Your Money

7.1 If you have been classified as a Retail Client, or the firm has agreed to segregate your funds, funds you deposit with us will be held in a segregated account at an approved financial institution in accordance with the appropriate Client Money Rules of the FSA. Those funds will be held in a UK bank account. In the absence of any written agreement, ETX Capital will not be under any obligation to pay interest on monies held in such accounts and you hereby waive any entitlement to receive interest on such monies. Where you subsequently place a spread bet or CFD trade with ETX Capital you will be required to pay an initial Maintenance Margin and continue to fund that initial Maintenance Margin irrespective of ongoing profits or losses in order to maintain that trade. Such money will be due and payable to ETX Capital for its own account and ETX Capital will thereby acquire full ownership of it and we will not hold such money in accordance with the Client Money Rules. Monies will be deemed as for the purpose of securing or otherwise covering present or future, actual or contingent or prospective obligations in accordance with 7.2.3 of the FSA's Clients Assets Sourcebook whereby such monies should no longer be regarded as client money. You will not have any interest in or proprietary claim over money transferred to us pursuant to this clause and ETX Capital can deal with it as its own. In the event of the firm's insolvency you will have no rights or claim in relation to this money. ETX Capital will transfer an equivalent amount of money back to, or from, any segregated funds you hold with us where, in our discretion, ETX Capital considers that the amount of money that you have transferred to us as initial Maintenance Margin is more, or less respectively, than is necessary to maintain the open trade. In determining the amount of money you will be required to pay to us pursuant to this clause and the amount of our obligations to you, ETX Capital may apply such methodology including reasonable judgment as to the possible future movements and value of underlying markets as it consider appropriate, and acting honestly, fairly and professionally in accordance with the best interests of our clients.

If you have been classified as a Professional Client (and the firm has not agreed to segregate your funds) or an Eligible Counterparty, the following shall apply:

When you transfer money to us, or money is paid to us on your behalf, you agree that the full ownership of the money is transferred to us

(a)for the purpose of covering your obligations and;

(b)unless you have notified us in writing to the contrary, we will not hold such money in accordance with the Client Money Rules but as cash margin as provided in this Agreement. Money received by us from you or a third party in this way for your account will be owed by us to you, even where we are acting as your agent. Accordingly the Client Money Rules will not apply, and you will not have a proprietary claim over such money, and we can deal with it as our own. Money transferred to us will be recorded by us as a cash repayment obligation owed by us to you. We will transfer an equivalent amount of money back to you where, in our discretion, we consider that the amount of money you have transferred to us is more than is necessary to cover your Obligations to us. In determining the amount of collateral and the amounts of cash margin, your Obligations, and our obligations to you, we may apply such methodology (including judgments as to the future movement of markets and values) as we consider appropriate, consistent with applicable regulations.

7.2 If you have a Debit Balance, the full amount of such balance is due and payable immediately.

Credit Allocation

7.3 Any credit arrangements ETX Capital agrees to will be separately documented and subject to review and alteration at any time at its discretion. Proof of funds must be in liquid form - eg funds held in a deposit account. We may at our discretion accept other forms of securities, as evidence of proof of funds, which may additionally be subject to varying degrees of credit application treatment. In accordance with our Credit Procedures, our credit department will require evidence of liquid funds on an annual basis or more regularly if deemed necessary.

Payment and Withdrawal of Funds

7.4 We may refuse to accept payment by banker’s draft or cheque. If so we may require you to use alternative methods of payment.

7.5 You may withdraw the lesser of your Cash Balance or your Trade Funds Available at any time.

7.6 We do not accept cash or payments from, or make any payments to, third parties unless agreed in advance by a director or a member of the ETX Capital compliance department.

7.7 Funds deposited by way of transfer of monies between client accounts can only be carried out, with all due care, after signed written authority has been received from the paying client.

7.8 Funds deposited by way of credit card can only be refunded by way of bank transfer or cheque made payable to you.

7.9 ETX Capital will allow five working days to clear funds deposited by cheque drawn on a UK bank account. Cheques drawn on a non UK bank account may take longer.

7.10 Any surplus funds may be paid to you, generally according to your instructions, but subject to the prior deduction of any sums due to ETX Capital in accordance with the terms of this Agreement.

7.11 To make a withdrawal, you must specify the method of withdrawal either by written request or email or from those displayed on the 'Withdraw Funds' page on the Website. Funds may be withdrawn via repayment to debit cards, cheque by post, or wire transfer. Different charges may apply.

7.12 If any regulatory body has queried specific transactions on your account for whatever reason, ETX Capital reserves the right to freeze the funds related to the query pending receipt of guidance or instructions from that body or other resolution.

7.13 There may be exceptional circumstances where the firm is restricted by the authorities, or by Underlying Market conditions or by our hedging partners from making a payment of money to you until either the restriction is removed or the Underlying Market conditions are met or our hedging partner is able to make the payment to us.

7.14 You agree that ETX Capital may cease to treat your money as client money if there has been no movement on your balance (other than in respect of any payment or receipt of charges, interest or similar) for six years. ETX Capital will write to you at your last known address informing you of our intention of no longer treating your balance as client money and giving you 28 days to make a claim.

8Electronic Trading Services

Where an Electronic Service involves you placing orders with or giving instructions which are to be carried out by us then unless indicated otherwise you acknowledge that:

(a) where an instruction has been given it shall be irrevocable and we shall be under no obligation to take any steps to reverse it unless so required by law;

(b) unless otherwise indicated or agreed at the time your order is received an order will not be effective until you receive an onscreen confirmation of receipt thereof from us.

(c) there are inherent risks in using electronic communications such that they may not be secure and may be intercepted by unauthorized parties or may not reach their intended destination or may do so much later than intended for reasons outside ETX Capital's control.

8.1 ETX Capital will use all reasonable efforts to ensure that its Electronic Services can be accessed by you for use in accordance with this Agreement. Subject thereto ETX Capital gives no undertaking, representation or warranty that its Electronic Services will be available or accessible.

8.2 ETX Capital may, at its discretion, suspend its Electronic Services with or without notice for any reason, including but not limited to carrying out maintenance, repair or development. ETX Capital will not be liable if access to its Electronic Services are prevented or interrupted or otherwise unavailable due to a Force Majeure Event and/or because of any suspension pursuant to this Agreement.

8.3 ETX Capital will not be liable for any virus or other malicious or damaging software encountered by you in the course of accessing its Electronic Services, or the failure of any of the ETX Capital Electronic Services to be compatible with the systems used by you.

8.4 If you cannot close an open bet due to technical difficulties with the online trading platform, you may close such bets by telephone on +44 (0) 20 7392 1434,or such number as may be notified to you from time to time, during relevant market hours on any Business Day, and Clause 9 will apply to any such instruction. Unless you are offered the telephone trading service, you must ordinarily trade online.

8.5 You are responsible for ensuring that your information technology is compatible with ours and meets our minimum system requirements. The minimum system requirements are as set out on the Website from time to time.

8.6 Unless otherwise indicated or agreed, any prices shown via an ETX Capital Electronic Service are indicative at the time shown and based on data which is subject to constant change. The execution price is that price which is confirmed to you at the time of execution.

8.7 Where we permit the use of a third party direct market access system, all transactions will be subject to the rules and customs of the exchange or market and/or any clearing house on or through which they are executed and to all applicable laws, rules and regulations so that:

(i) if there is any conflict between this Agreement and such laws, rules and regulations the latter will prevail;

(ii) we may take or omit to take any action we consider appropriate in order to ensure compliance with such law, rules and regulations; and

(iii) whatever we do or do not do in order to comply with such laws, rules and regulations shall be binding on you.

8.8 You acknowledge that ETX Capital accepts no responsibility or liability of any kind for any error or inaccuracy in information with respect to any electronic communication sent by a permitted third party's Electronic Services.

8.9 Any market data including any graphs, charts or market news provided by one of ETX Capitals Electronic Services or otherwise are supplied in good faith and ETX Capital will have no liability whatsoever for any error or inaccuracy in information so supplied.

System Failure

8.10 If, despite ETX Capital's numerous safeguards, any system failure should occur that makes trading impractical, all new trading will be suspended. All open trades will remain open until their respective markets close; however, while systems are down, no Stop or Limit Orders may be executed. ETX Capital is not responsible for any additional Loss suffered due to Stop and Limit levels not being duly executed. You remain liable for any open bets until confirmation is issued that they have been closed. In the event of a system failure, you may close outstanding bets via the telephone.

9Telephone Trading

9.1 You may be invited to use the telephone trading service offered by ETX Capital during relevant market hours on each Business Day provided you meet certain classification requirements. Or you might require the telephone service as an alternative form of communication if your normal other form of communication becomes unavailable (eg the online trading platform). ETX Capital's current hours for receiving the telephone service are from Sunday 21:30–Friday 21:15 inclusive, which may change as notified on the Website.

9.2 The Spread or price quoted via the telephone service may in certain circumstances differ from that which is displayed on ETX Capital's online trading platform.

9.3 ETX Capital will not accept any instructions in relation to a trade where such instructions are received solely in the form of messages left on ETX Capital's answerphone or voicemail facilities. Where you instruct ETX Capital by telephone in accordance with the terms of this Agreement, you must only do so by talking directly to an authorised dealer of ETX Capital on an ETX Capital designated land line.

9.4 ETX Capital reserves the right not to provide a two way price to you on the Products we offer you.

9.5 Without prejudice to any other term of this agreement, the provisions of Clause 13 will apply to trades made via the telephone trading service.

9.6 Although trades may be placed over the telephone as provided under this Clause, it is your responsibility to monitor and manage such telephone trades and your accounts by logging onto the Website.

9.7 Should you wish to receive any statements, you may make a written request to customerservice@ETXCapital.com. Executed Orders will only be confirmed by telephone and/or email if this is specifically requested.

10Placing a trade

10.1 The provisions of this Clause, in addition to all other provisions of this Agreement, will apply to each trade placed by you with ETX Capital. You are trading on the price of a financial instrument (eg single shares) or of an index and will not be entitled to delivery of, or be required to deliver, the underlying financial instrument (eg the shares) nor ownership thereof or any other interest therein.

10.2 Clients may place trades via the online trading platform or, if you have been invited to do so in accordance with Clause 9.1, by telephone. We accept no liability for instructions sent electronically (such as by email or instant messaging service) and are under no obligation to act on such instructions unless the client has obtained prior permission from ETX Capital.

10.3 ETX Capital provides clients with a means to trade (sell or buy) the price of various financial contracts for a given amount per Tic movement of the underlying contract. The 'Tic', is the minimum tradable increment of the contract, as defined on the Website, for each contract.

10.4 When you place a trade a Force Majeure Event must not have occurred. Force Majeure events are described in clause 19.

10.5 You may not hold opposing positions in the same Product, in the same account, for the same expiry date. For example, you may not open a £1 'buy' trade and then open a £1 'sell' trade in UK 100 Daily Rolling. Should you seek to do so, the earlier trade will be automatically closed and a profit or loss will be realised.

10.6 You acknowledge that trades are speculative instruments and agree that you will not enter into any trades with ETX Capital in connection with any corporate finance-style activity.

10.7 ETX Capital may report to any relevant regulatory authority any trade or other transaction undertaken by you.

Markets

10.8 ETX Capital offers Markets in a variety of financial contracts, including, but not limited to, single shares, single share indices, index futures, bond indices and futures, commodities, foreign exchange rates, foreign exchange futures, and options on any of these instruments;

10.9 ETX Capital lists on its Website the Product specifications for each type of Market. These specifications include the expiry date, margin requirement, and the hours of trading. You should make sure that you have read and understood the contents of the Product specification for each new type of trade that you are to place before you submit your first of that type of trade.

Our Prices

10.10 For all Spread Bets and some CFD markets, for example Index CFDs, ETX Capital maintains a Spread between the price at which ETX Capital buys and the price at which it sells in each market upon which the relevant Financial Derivative contracts are based. The Spread varies between markets and can be changed by ETX Capital at any time. The Spread and the prices are determined solely by ETX Capital at its complete discretion.

10.11 Prices quoted by ETX Capital are determined by reference to the price of the Underlying Market which is quoted on external securities exchanges or dealing facilities that ETX Capital select at their discretion. The prices quoted by us may be different from the level of an Underlying Market.

10.12 Prices quoted are subject to confirmation by ETX Capital. ETX Capital will exercise all due care and skill in the preparation of the on-screen prices but, due to the nature and speed of movements in the underlying markets, the prices indicated may not necessarily be the exact prices available to open or close a trade. ETX Capital will not be liable for any losses or costs which you may incur as a result of not being able to open or close a trade at a particular on-screen price.

10.13 Due to the potential for computer or other errors, ETX Capital may take any reasonable step as set out in clause 10.15 for any trades executed at levels which are the result of any error, omission or misquote (whether by ETX Capital or any third party) which is manifest or palpable, including a misquote by a ETX Capital dealer taking into account the current market and currently advertised prices (for example, the wrong price or market or any error or lack of clarity of any information, source or commentator), or is otherwise clearly at odds with the fair market price ('Error').

10.14 If a trade is based on an Error, ETX Capital may act reasonably and in good faith:

(a) to void the trade, from the beginning, as if the trade had never taken place;

(b) to close the trade on the basis of our then current prices; or

(c) to amend the trade, so that the trade is the trade that would have been placed in the absence of an Error.

10.15 ETX Capital will exercise the above rights as soon as reasonably practicable after becoming aware of the Error. ETX Capital can exercise the above rights even if you have entered into (or refrained from entering into) arrangements with third parties relating to the relevant trade and even if you may suffer loss as a result. ETX Capital will not be liable for any loss you may suffer as a result of an Error.

Closing a Position

10.16 Positions can only be closed via the telephone or online trading platform during ETX Capital's normal trading hours. Instructions received via any other method require ETX Capital's prior agreement. When a position is closed, any losses for which you are liable will be debited from your account and any profits will be credited to your account.

10.17 Open Positions can generally be closed out by you at any time during market opening hours and, where applicable, before the Expiry Date and time of the relevant ETX Capital Market on the basis quoted from time to time by ETX Capital.

10.18 Without prejudice to any other rights that ETX Capital may have under this Agreement, if your trade has not been closed by the relevant Expiry Date in the applicable Market, ETX Capital will settle it at

(i) the applicable official quotation or value or, if there is no formal Underlying Market, at such other relevant level, less

ii) any Spread applied by ETX Capital in such circumstances. You may obtain details of the Spread on request. It is your duty to be aware of the applicable figures.

10.19 Any funds shown as Trade Funds Available in your account at closure will be returned to you in accordance with Clause 7.

Rolling and Expiry of Trades

10.20 Provided there are sufficient funds on your account, you may, make a telephone request to ETX Capital up to half an hour before the expiry of an open trade to extend the period of that trade ('roll over'). On making a request for a roll over, any attached orders to the expiring position will not automatically roll over to the newly rolled trade. You must specify the new Stop Level if required. ETX Capital reserves the right to reject any such request by you to roll over an open trade. You will be informed of such rejection by telephone or email.

10.21 If ETX Capital accepts a request to roll over an open trade:

(a) the original trade will be closed at ETX Capital's current price and becomes due for settlement; and

(b) a new trade is immediately placed in the market underlying the first trade at the relevant ETX Capital price offered for the new trade.

ETX Capital will have the right to charge you in accordance with Clause 6 for any expenses or costs (including third party expenses and costs) incurred in connection with processing a request made by you to roll over an open trade.

10.22 If you do not close an Expiring Trade, it will be settled automatically upon its Expiry Date, unless a request for a Roll Over has been accepted.

Non Expiring Markets

10.23 Non expiring markets eg Daily Rolling Spread Bets or Non Expiring CFDs may be closed by ETX Capital in situations of Force Majeure or in situations where the cost of rolling, or financing the trade has used more than the client's available funds. When trades are closed by ETX Capital, the price will be at the full spread or the trade charged the full commission quoted by ETX Capital at that time or at a price that in the opinion of ETX Capital fairly reflects the price at that time.

10.24 All Daily Rolling Spread Bets are automatically rolled. For all such markets and all Non Expiring CFDs a daily financing charge is incurred on each day that the trades are open and is levied as part of ETX Capital's end of day process. For markets other than FX, the charge or refund is calculated based on the total equivalent market value of each trade held overnight and ETX Capital will then charge or pay interest on this market value for each day the trade is held open overnight. For details of specific funding rates please see the relevant market information sheets that are available on the Website.

10.25 These trades will remain open so long as the client has funding available to support the minimum margin for each market. ETX Capital reserves the right to unilaterally move stop levels on any open trade such that the client remains in a positive 'available funds' position. Should the client be unable to support any trade due to the ongoing cost of the daily financing charge (and the constraints of the minimum margin) ETX Capital reserves the right to close part or all of any trade sufficient to bring the client into a positive available funds position.

10.26 Any order attached to such a trade remains attached to the trade until the expiry of the order, closure of the trade or cancellation of the order.

All other terms and conditions apply to Daily Rolling Spread Bets and Non Expiring CFD markets.

Market disruption

10.27 For the purposes of this Agreement, a Disruption Event is the occurrence of any of the following circumstances or events:

(a) the underlying security, derivative, market or exchange on which you are trading, whether directly on the market or indirectly (for example on a future of or option on such security, market or exchange), is the subject of a takeover offer or a merger offer; or the issuer or operator of such security, derivative, market or exchange has entered into or is the subject of insolvency or liquidation proceedings (or any Act of Insolvency has occurred in relation to such issuer or operator); or

(b) any event which disrupts the trading of the security or derivative, or the relevant market or exchange including the suspension of or limitation of trading by reason of movements in price exceeding limits permitted by the relevant exchange, or of regulatory or other intervention, or early closure of the exchange or otherwise, and/or any other event causing market disruption and which is, a material disruption.

If ETX Capital in its sole and absolute discretion determines that a Disruption Event has occurred on any day on which an Exchange is scheduled to be open for its regular trading session, then such day shall be a Disrupted Day.

Consequences of Disrupted Days

10.28 If a Disrupted Day occurs, ETX Capital may in its absolute discretion, with or without notice to you, (and without prejudice to any other rights and remedies it may otherwise have under this Agreement or at law):

(a) close any or all open trades, refuse to place any trades, cancel any orders and fill any orders in each case at such level as it may consider in good faith to be appropriate in all the circumstances;

(b) in the event of suspension of, or other Disruption Event relating to, the Underlying Market, ETX Capital reserves the right to value the relevant position at zero;

(c) value your affected position at zero;

(d) suspend or modify the application of any terms of this Agreement to the extent that it is impossible or not reasonably practicable for ETX Capital to comply with them;

(e) immediately require payment of any Maintenance Margin and/or any other amounts owed by you to ETX Capital; or

(f) take or omit to take all such other actions as it deems appropriate in the circumstances, and in the absence of fraud or bad faith ETX Capital will not be liable to you for any loss arising for any reason including by reason of ETX Capital's negligence or otherwise notwithstanding ETX Capital had been advised of the possibility of the loss and/or the loss was reasonably foreseeable.

10.29 Any trade closed by ETX Capital pursuant to Clause 10.27 will be closed on the basis of the ETX Capital current price relevant for that trade.

10.30 ETX Capital may in its absolute discretion take all or any of the actions referred to in Clause 10.27 upon the occurrence of a Force Majeure Event.

11Orders

11.1 ETX Capital offers a range of different orders to open and close trades. These usually take the form of a Limit Order or a Stop Order. An order is an instruction from you to open or close a trade should our price reach a level specified by you. It is your responsibility to understand the features of an order and it is recommended that you speak to our staff on any aspect of orders you are uncertain of.

11.2 Once an order is triggered, i.e. your specified level is reached or breached, we will attempt to fill your order at the next price available to us in the market of your order within a reasonable time of your order being triggered. If your order is a Stop Order then the level we fill your order may be the same, or worse than the level you specify. For the avoidance of doubt, your order is triggered by our price during our market hours, and not the Underlying Market and its opening hours.

11.3 If your order is a Limit Order then the level we fill your order may be the same, or better, than the level you specify. However, any better level fills are at the sole discretion of ETX Capital and you accept that ETX Capital is under no obligation to pass this benefit on to you. It should be noted that clients with FX market Limit Orders will not benefit from any better price fills should the price slip in favour of the client.

11.4 You accept that there is some manual element to our order execution and although we seek to execute all orders in a timely fashion in accordance with our execution policy there may well be times and circumstances beyond our control that may mean your order is not filled in our normal timely fashion. For example, there may be high activity in the Underlying Market or an abnormally high number of simultaneous orders triggered on our system.

11.5 If a client has a number of orders that trigger at once, ETX Capital reserve the right to execute these orders in any sequence determined by ETX Capital. There may well be circumstances where some orders are executed by us whilst others are cancelled, for example, if the client has insufficient funds available for an executed order that would normally result in a new trade being opened.

11.6 Every market normally has a minimum price range between our current quote and the price or level of any orders that are being created, and we reserve the right not to accept any orders which are less than this minimum price range.

11.7 There may be circumstances, such as a Corporate Action on a particular share or index, where your order becomes unreasonable to act on. In such circumstances we have the right to cancel or amend your order and are not liable to you as a result of such action.

12Margin Requirements

12.1 Unless otherwise agreed with ETX Capital, a minimum deposit known as Initial Margin Requirement must be paid before you can open each trade. You acknowledge that the level of Initial Margin Requirement required does not indicate or in any way limit your potential losses.

12.2 Once a position has been opened you may be required to post additional amounts called Maintenance Margin during the term of the trade. It is your responsibility to ensure that all necessary Margin payments are made.

12.3 Depending on your type of account a Stop Loss may be automatically placed at the time of trade, on that trade, if your account does not have sufficient Trade Funds Available for the Initial Margin Requirement. If this occurs you will receive the details of any Stop Loss placed in your online trade confirmation details. You will be able to change the level of this Stop Loss or cancel this order as long as doing so your account continues to have positive Trade Funds Available. If you have insufficient Trade Funds Available for an automatic stop loss to be placed the minimum distance away from an attempted trade price then the attempted trade will be rejected.

12.4 There may be unforeseen circumstances where it becomes necessary to increase or decrease the level of Initial Margin Requirement or other Margin we require from you on your open trades without notice to you. Examples of such circumstances include, but are not limited to:

a)a change in the conditions to the Underlying Market, for example, the volatility and/or liquidity or in the financial markets more generally since the trade was opened.

b)a change in your circumstances which ETX Capital believe relevant to your financial means come to ETX Capitals attention since the trade was opened.

12.5 ETX Capital will only accept funds (in the methods described in Clause 13 or as otherwise notified to you) and will not accept any securities or other assets by way of payment of Margin.

13Margin Call

13.1 Any obligation to provide Margin that arises pursuant to this Agreement will be deemed for all purposes to be a Margin Call with which you must comply in accordance with this Clause.

13.2 If your Trade Funds Available balance is below zero, you must provide Maintenance Margin immediately to bring your Trade Funds Available balance to zero or above unless ETX Capital agrees with you otherwise, for example, to reduce or waive all or part of any Margin funds required for any trade. Any such waiver or reduction must be agreed in writing, including by electronic means, by ETX Capital. In such cases you are required to comply with the terms stated in the written agreement.

13.3 It is your responsibility to ensure you are aware of your account's status at all times and monitor your positions to ensure you have sufficient funds on your account to continue to maintain those positions. ETX Capital is not obliged to inform you of a Margin Call.

13.4 Without prejudice to Clause 13.3, ETX Capital may inform you of a Margin Call orally, electronically or in writing. If in writing, the terms of Clause 26 will apply. If orally or electronically ETX Capital may contact you by any means available, including in person, by telephone, telephone answering machine message or other voicemail, email or text. You must notify ETX Capital immediately of any short or long term changes to your normal contact details to ensure you can be notified of any Margin Call.

13.5 ETX Capital is entitled to request funds to cover a Margin Call at any time, and should you fail to pay margin immediately it may close, at its discretion, any open trades partly or fully to bring you off a Margin Call. ETX Capital reserve the right to stipulate the method of payment to be used by you.

13.6 A valid Margin Call request will be deemed to have been made by ETX Capital if ETX Capital has used all reasonable efforts to make contact using the contact details you have provided but has been unable to do so or you have failed to make contact with ETX Capital, within a reasonable amount of time, regarding any messages it has left requesting you make contact with ETX Capital. Please be aware that a reasonable amount of time may well be a matter of minutes depending on the type of market and/or size of your trade.

13.7 In calculating any Margin required from you, ETX Capital may, at its discretion, have regard to your overall positions you hold with ETX Capital which may result in a reduction in the amount of Margin required by you.

13.8 Any funds that you post or are required to post by way of Margin do not limit your liability to ETX Capital under this Agreement or otherwise under law.

13.9 If a Margin Call is not met by you (in the form of cleared funds in pounds Sterling or any other currency that ETX Capital has agreed to receive) in accordance with this Clause, ETX Capital may in its discretion:

(a) close out any or all (in whole or in part) of your open trades;

(b) exercise its rights of set off and netting under this Agreement; or

(c) close your account and not open any further trades for you.

13.10 Once the Margin Call has been satisfied - whether by the closure of one or more trades or by the deposit of funds - and you wish to open additional trades, the Initial Margin Requirement for any new trade must be covered in full.

13.11 ETX Capital will not be liable for any loss, including loss of profits, suffered as a result of ETX Capital exercising its rights under this Clause.

14Netting Positions

14.1 All trades and transactions between you and ETX Capital in respect of your account/s (both Financial Spread Bet and CFD accounts) are entered into in reliance on the fact that this Agreement and all trades and transactions form a single agreement between the parties, and the parties would not otherwise enter into any trades and transactions.

14.2 If ETX Capital has exercised its rights under this Agreement to close your open trades and/or to close your account/s, ETX Capital may:

(a)combine and consolidate your account with any or all other accounts held in your name at ETX Capital, even if any of those accounts have been closed;

(b)set-off against each other the amounts referred to in (i) and (ii) below:

(i)your Trade Funds Available (if a credit balance), profits on open positions and any sums due to you by ETX Capital of whatever nature and whenever payable (including on any other account you have with ETX Capital, even if any such account has been closed); and

(ii)your Trade Funds Available (if below zero), any outstanding Margin Call, losses on open positions, any losses that are payable by you to ETX Capital (including on any other account you have with ETX Capital, even if any such account has been closed).

14.3 You may require ETX Capital to exercise the provisions of this Clause if ETX Capital has closed all your open trades.

14.4 If ETX Capital exercises any of its rights under this Clause, all payment obligations will be consolidated into an obligation for you to pay a net sum to ETX Capital (as ETX Capital may direct), or for ETX Capital to pay a net sum to you.

15Communications

15.1 You hereby consent to all telephone communications made by or to you or on behalf of you with ETX Capital being recorded. Pursuant to Clause 9, you may be invited to use a telephone trading service. ETX Capital may use relevant recordings to fulfill regulatory obligations, confirm instructions received from you and otherwise have recourse to such recordings for the purposes of resolving any disputes with or complaints from you.

15.2 We will generally not accept any instructions from you unless it is orally by a designated telephone line or electronically via our trading platform (or any other forms that have been agreed by ETX Capital in advance).

15.3 If your usual method of communicating with us is via the trading platform, but find the platform not in operation for whatever reason, you should contact us via the telephone.

15.4 From time to time we may provide information to you which presents your multicurrency balances in the equivalent value of your Base Currency, using rates prevailing at the time the information is produced. However, you should note that the balances have not been physically converted and that the presentation of the information in your Base Currency is for information only.

Confirmations

15.5 Confirmation of your trade will appear electronically on your online account, and by email depending on your email preferences. You can change these preferences via your online account or by contacting ETX Capital. You must notify ETX Capital if you are expecting a confirmation but no confirmation is shown on the online trading platform. You must check that any confirmation note contains the correct details of the trade to which it relates. If you wish to dispute any of the details, you must notify ETX Capital immediately and the matter will then be dealt with in accordance with Clause 21. If you have not received such a trade confirmation and you think that you should have done, it is your responsibility to make an enquiry of ETX Capital. (It may be advisable to check your spam filter before so doing.) You should retain a printed copy of all trade confirmations for record purposes.

15.6 If a confirmation note in respect of any trade executed by ETX Capital contains an error or is otherwise inaccurate, this will not affect the validity of the relevant underlying trade that has been executed.

15.7 It is your responsibility to keep your contact details up to date and notify us immediately of any changes.

16Corporate Actions, Dividends and other Situations

16.1 If a Corporate Action takes place that affects any Underlying Market and consequently any of our markets we will make a fair and appropriate retrospective adjustment, if any, to any open trades and/or orders you have in that market, reflecting as close as possible the economic impact of the Corporate Action as if you were a holder of the Underlying Market. This may, for example, involve closing and opening new trades and/or making cash adjustments to your account.

16.2 We will make any relevant adjustments to your trades with respect to a Corporate Action event on your account as soon as reasonably practical for us to do so.

16.3 ETX Capital will not transfer voting rights relating to an Underlying Market to you, or otherwise allow you to influence the exercise of voting rights held by or on behalf of ETX Capital.

16.4 Some of our prices, for example, Daily Rolling Spread Bets or CFDs on individual shares, do not take into account any dividend events that may take place on that market. If a dividend event takes place on such a market, and you have an open trade in that market on the ex-dividend date, we will make an adjustment to your account to reflect the dividend event. If you have a Long Trade then a credit will be made to your account. If you have a Short Trade then a debit will be taken from your account. If your trade is hedged by us then any dividend adjustment we make will reflect any dividend adjustment made to our hedged position by our hedging partners.

16.5 Some Markets we make contain a dividend element which is forecasted by us. In the event that the declared dividend is unusually large, small or cancelled or the ex-dividend date differs from our forecasted ex-dividend date we reserve the right to make an adjustment to the opening level of a trade to reflect such differences, provided any such adjustment must be fair and reasonable.

16.6 If an Underlying Market becomes suspended ETX Capital reserve the right to margin all associated trades at 100% and value the market appropriately. This may mean your trade being either valued at zero or at the last price held in our market at the time of the suspension.

16.7 All trades in a suspended market will remain open, but suspended, until either the suspension is removed or the Underlying Market is delisted.

16.8 If an Underlying Market becomes delisted ETX Capital reserve the right to close all trades associated with that market at zero.

16.9 If we cover your short trade by a hedge in the Underlying Market there may be times when the Underlying Market becomes difficult or impossible to borrow, for example during Corporate Action events. We may be required by our Underlying Market lenders to close our short hedge. If so, we reserve the right to close your short trade at the same time.

17Market Abuse

17.1 ETX Capital may hedge its exposure to clients by opening analogous positions with other institutions. The result is that, when you trade on shares with ETX Capital, such trades can, through ETX Capital's hedging, exert a distorting influence on the underlying market for that share in addition to the impact that it might have on ETX Capital's prices.

17.2 Each time you open or close a trade, you represent and warrant to ETX Capital that:

(a) you will not place and have not placed a trade or trades with ETX Capital relating to a particular share price if to do so would result in you, or others with whom you are, or may reasonably be regarded as, acting in concert, having an exposure to that share price which is equal to or exceeds the amount of a declarable interest in the relevant company. For this purpose, the level of a declarable interest will be the prevailing level at the material time, set by law, rule or regulation or by the exchange(s) upon which the underlying share is listed;

(b) you will not place and have not placed a trade with ETX Capital in connection with a placing, issue, distribution or other analogous event, or an offer, takeover, merger or other analogous event in which you are involved or otherwise interested;

(c) you will not place and have not placed a trade that contravenes any primary or secondary legislation or other law, rule or regulation against insider dealing or market abuse. For the purposes of this Clause you agree that ETX Capital may proceed on the basis that, when you open or close a trade with ETX Capital on the price of a security, you may be treated as dealing in securities within the meaning of Part V of the Criminal Justice Act 1993 and/or any law, rule or regulation against market abuse; and

(d) you will not otherwise place and have not placed a trade in circumstances which may be considered to constitute market abuse.

17.3 For the purpose of complying with legal and regulatory obligations ETX Capital may in its absolute discretion, and without being under any obligation to inform you of ETX Capital's reason for doing so, close any trades that you may have open and may, if it so elects, treat all trades closed under this Clause as void.

18Conflicts of Interest

18.1 As part of its regulatory duties and obligations, ETX Capital is required to take all reasonable steps to identify if there are any conflicts of interest that could or do arise between either the firm and any of its clients, or between any clients of the firm.

In order to discharge this duty, ETX Capital has established a Conflicts of Interest Policy and Procedures document for the following purposes:

(a) ensuring that the firm is able to identify any potential or actual conflict of interest; and

(b) to manage any such potential or actual conflict of interest so as prevent its abuse; and

(c) to ensure that any potential or actual conflict of interest does not give rise to any material risk or damage to the interests of any client of the firm.

The following is a summary of our Conflicts of Interest Policy and Procedures. Our Conflicts of Interest Policy and Procedure document will be maintained and reviewed on an ongoing basis to ensure that it is at all times relevant and effective in its aims.

Types of Conflict of Interest

18.2 A conflict of interest is a situation where, within the course of the firm's business, the interest of the firm or its employees, or some of its clients might compete with those of other clients of the firm, whether directly or indirectly. Conflicts of Interest can arise in various ways, some more relevant to ETX Capital's business than others.

Where the firm undertakes trades in relation to more than one client, the fairness in allocation of such 'block trades' is one example of a potential conflict of interest. Market quotes are given by the firm on a real-time and open basis for customers to trade where they so desire. Block trades are not part of the usual business model of the firm. However, should a trade be executed on behalf of more than one client, the firm's Compliance Manual stipulates that orders must be filled on a first in first filled basis. All trades are recorded on a real-time basis so as to give a full audit trail thereby facilitating a full review by the firm's Compliance Officer to ensure adherence to this policy. All such records are kept on an indefinite basis.

General Conflicts of Interest

18.3 Where other instances arise which might give rise to a conflict of interest, the firm adheres to its general principles and policies that govern its business. These are set out in the firms' internal Compliance Manual which is issued to all staff on joining the firm, who then receive training on the Manual, such training being entered into a central training register maintained by the firm's Compliance Department.

Under such general principles, neither the firm, nor its employees should directly or indirectly:

(a) make any financial gain, or avoid any financial loss, at the expense of any client of the firm;

(b) have an interest in the outcome of a service provided to a client or a transaction carried out on behalf of a client which is distinct from the client's interest in that outcome;

(c) have a financial or other incentive to favour the interest of another client or group of clients over the interests of a client;

(d) carry on the same business as a client;

(e) receive or will receive from any person, other than the client, an inducement in relation to a service provided to a client in the form of monies, goods or services, other than the standard commission or fee for that service.

Action to deal with any potential or actual conflict of interest

Where the firm identifies an actual or potential conflicts of interest, ETX Capital can take the following steps:

(a) decline to act.

(b) accept the conflict of interest but prevent any material abuse and protect its client. To do this, ETX Capital maintains and operates permanent arrangements that are designed to manage most conflicts of interest, once identified.

19Force Majeure Events

19.1 If ETX Capital is prevented, hindered or delayed from performing any of its obligations under this Agreement by a Force Majeure Event, then its obligations under this Agreement will be suspended for so long as the Force Majeure Event continues and to the extent that ETX Capital is so prevented, hindered or delayed. ETX Capital will not be deemed to be in breach of this Agreement or otherwise be liable to you by reason of any delay or failure in performance of any of the obligations under this Agreement to the extent that the delay or failure is caused by a Force Majeure Event, and time for performance will be extended accordingly.

19.2 A Force Majeure Event means:

(a) acts of God, war, hostilities, riot, fire, explosion, accident, flood, sabotage, power supply interruption, failure of communications equipment, lock-out or injunction, compliance with governmental laws (domestic or foreign), regulations or orders or breakage or failure of machinery;

(b) the suspension or closure of any market or the abandonment or failure of any event on which ETX Capital bases or to which it may relate its quotes or the imposition of limits or special or unusual terms on the trading in any such market or on any such event; or

(c) the occurrence of excessive movement in the level of, or loss in the liquidity of, any of ETX Capital's indices or products and/or any corresponding market, or our reasonable anticipation of such, or any other cause whether or not of the class or kind referred to above which affects performance of this Agreement arising from or attributable to acts, events, omissions or accidents beyond ETX Capital's reasonable control. See also clause 10.27 as to Market Disruption.

20Suspension of Service

20.1 If ETX Capital considers that a Market Disruption (clause 10.27) has occurred, it reserves the right to suspend trading in any financial contract offered by ETX Capital at its absolute discretion.

20.2 If trading is suspended or any of the ETX Capital Services are otherwise partly or fully unavailable, ETX Capital will seek to inform you without delay.

20.3 ETX Capital will not be liable for any loss, including any loss of profits, suffered by you as a result of the suspension of trading or any ETX Capital Service as described in this Clause.

21Complaints and Disputes

21.1 Any query must be raised as soon as possible and in any event within 3 business days of the event giving rise to the query. ETX Capital reserves the right not to entertain any query raised after this time period. If you wish to query or dispute any aspect of a trade, you must raise it as soon as you become aware of it and in any event at the latest within three Business Days of the issue arising.

21.2 Subject to the above, if you wish to make a complaint or a dispute arises between us in connection with the performance of any ETX Capital Services, you will promptly provide ETX Capital Customer Service with full details of the relevant complaint or dispute. Should you be dissatisfied with the handling of your complaint, you may refer the dispute in writing to the ETX Capital Compliance Officer. ETX Capital will use all reasonable efforts to promptly and fully investigate and resolve the matter. ETX Capital operates a Complaints Procedure in accordance with FSA Rules, a copy of which is available on the Website or upon request. If you are unhappy with the decision reached by the Compliance Officer, and you have been classified as a Retail Client, you are entitled to refer your complaint directly to the Financial Ombudsman Service. However this service is not available to Professional Clients or Eligible Counterparties. Information on the Financial Ombudsman Service, including how to make a claim, eligibility criteria and the procedures involved, is available from the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR.

21.3 If there is any dispute, the records held by ETX Capital will, in the absence of manifest error, be treated as the accurate prevailing records of account.

21.4 To aid our investigations into any complaint or dispute, clients are urged to keep their own record of times of trades and other issues. Without such information it may not be reasonably possible for us to locate any record in relation to such issues in dispute.

22Closure of Accounts

22.1 Without limiting any right to terminate this Agreement, ETX Capital can close your account at any time. This includes but is not limited to the following circumstances:

(a) you persistently fail to pay Maintenance Margin or any other amount owed to ETX Capital on time;

(b) any Margin Call or any other amount owed to ETX Capital has not been met in accordance with clause 13;

(c) any information supplied by you during the application process or any other time is found or believed to be misleading or false;

(d) your trading or account activity is of such a size or style that ETX Capital no longer wishes to deal with you;

(e) ETX Capital has reasonable grounds for suspecting the activity on your account may have involved market abuse or any criminal activity; or

(f) you are abusive to staff.

22.2 ETX Capital will notify you if it closes your account.

22.3 On closing an account, you will not be permitted to open any new trades and you will only be entitled to place trades or otherwise deal as a Client insofar as necessary to close all open positions. ETX Capital will not close any open trade unless exercising any of its rights to close a trade under this Agreement.

23Liability

23.1 Nothing in this Agreement shall exclude ETX Capital's liability to you in respect of:

(a) any duty or liability owed by ETX Capital to you under the Financial Services and Markets Act 2000 or the FSA Rules;

(b) your death or personal injury; or

(c) Loss caused by our negligence or willful default or fraud except that, in respect of negligence or willful default, we shall not be liable for any loss other than direct loss suffered by you arising out of our negligence or willful act or omission.

23.2 Save as provided in clause 23.1 and 23.3, in no event will ETX Capital have any liability whether based in contract, tort (including without limitation negligence) or any other legal or equitable ground for any loss arising howsoever, including loss from any representation, any breach of implied term or any duty at common law or under any statute or express term of this Agreement, or relating to this Agreement or any trading activities undertaken by you using the ETX Capital Services, and whether or not such liability is foreseeable, and even if ETX Capital have been advised or were aware of the possibility of such loss.

23.3 Subject to clause 23.1 ETX Capital will not be liable:

(a) in contract in respect of any representation, warranty or other statement being false, inaccurate or incomplete; or

(b) in equity, tort or under the Misrepresentation Act 1967 in respect of any representation, warranty or other statement (whether or not contained in this Agreement) being false, inaccurate or incomplete unless such representation, warranty or other statement was made fraudulently.

23.4 You will fully indemnify and at all times keep fully indemnified ETX Capital against any and all liability, damages, claims, proceedings, expenses (including but not limited to legal expenses and experts' fees) arising out of or in connection with any breach of this Agreement, or any negligent act or omission, by you.

23.5 Without prejudice to any other limitation of our liability contained elsewhere in this Agreement, the maximum amount of our liability in respect of any loss that you may suffer in relation to any one trade will be the amount equal to the Deposit Margin placed with respect to that trade.

24Compensation

ETX Capital is covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if ETX Capital cannot meet its obligations. This depends on the type of business and the circumstances of the claim. From 1st January 2010 most types of investment business are covered for 100% of the first £50,000. Further information about compensation arrangements is available from the Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN.

25Amendments, Waivers and Rights

25.1 ETX Capital will be entitled to amend or vary the terms of this Agreement from time to time upon reasonable notice which will be not less than 10 Business Days. Any such amendments or variation will apply to all open positions as at and after the effective date of the relevant amendment or variation. You are at liberty to terminate this Agreement in accordance with the provisions of clause 34.

25.2 No delay in the exercise or non-exercise by either party of any right, power or remedy provided by law or under or in connection with this Agreement will impair such right, power or remedy or operate as a waiver or release of that right. Any waiver or release must be specifically granted in writing, signed by the party granting it.

25.3 The rights and remedies of each party under this Agreement are cumulative and not exclusive of any rights or remedies of that party under the general law. Each party may exercise each of its rights as often as it thinks necessary.

26Notices, Information and Language

26.1 This Clause does not affect the way in which you can place a trade or the way in which confirmation notes of executed trades are given by ETX Capital.

26.2 All communications relating to this Agreement, whether correspondence, documents, written notices, confirmations and statements or otherwise will be sent to you or to your order in accordance with the latest contact details provided by you. It is your responsibility to ensure that ETX Capital is kept informed promptly of all changes in this regard. All communications will be deemed properly made:

a if sent by first class post to the address last notified by you to ETX Capital, upon delivery;

b if hand delivered to the address last notified by you to ETX Capital, at the time of it being deposited at that address;

c if sent by fax or text, as soon as it has been transmitted to the fax or mobile number last notified by you to ETX Capital;

d if sent by email, as soon as it is transmitted to the last email address provided by you to ETX Capital.

26.3 This Agreement and all pre-contract information will be supplied in English and ETX Capital will communicate in English with all clients and applicants for the duration of this Agreement.

26.4 You acknowledge and agree that ETX Capital may call upon you by telephone or visit at a reasonable hour or otherwise communicate with you without express invitation.

27Data Protection

27.1 You acknowledge that you will be providing personal information to ETX Capital within the meaning of the Data Protection Act 1998 when making an application to become a Client and otherwise from time to time. You consent to ETX Capital and its Associates processing that personal information for the purposes of establishing and administering an account in respect of the ETX Capital Services and otherwise in accordance with the Privacy Statement.

27.2 The Privacy Statement can be found on the Website and you must read this document before clicking on the I ACCEPT button to commence the application process.

27.3 You agree that ETX Capital can disclose your information to the following:

Any Regulator

Our Auditors

Any Law Enforcement agencies

Any third party who is seeking to obtain a reference on your account or persons we believe to be seeking a credit reference in good faith

Your Compliance Officer (if your firm is regulated by the FSA)

28Intellectual Property

All intellectual property rights in the Website, any advertising material issued by or on behalf of ETX Capital, all information, materials, prices or charts, business methods, databases or settlement specifications relevant to the ETX Capital Services or otherwise used or arising in connection with the ETX Capital Services will remain the property of ETX Capital and you will have no rights to distribute, republish, copy, reproduce, sell, sub-license or otherwise transfer or disseminate any of the foregoing.

29Applicable Law and Jurisdiction

This Agreement and the relations prior to the establishment of relations between you and ETX Capital will be construed in accordance with English Law and the parties irrevocably submit to the exclusive jurisdiction of the English courts to settle any disputes which may arise in connection with this Agreement, save that ETX Capital may, at its sole discretion, commence and pursue proceedings in any other jurisdiction and you waive any objection to it so doing on the grounds of venue or forum.

30Assignment

You may not assign or transfer any of your rights or obligations under this Agreement without the prior written consent of ETX Capital. ETX Capital may assign and transfer all or any of its rights and obligations under this Agreement without any obligation to notify or obtain further consent from you.

31Authorised Persons

31.1 If you wish to authorise a third party to place trades on your behalf, you can do so provided that you have notified ETX Capital and ETX Capital has provided its written consent. You will be liable for all acts or omissions on the part of any such third party. ETX Capital will have no duty to monitor the trades, orders or other acts or omissions or to establish the authority of any such third party.

31.2 You will be responsible for any trading apparently carried out on your behalf. ETX Capital may act on any instructions we believe in good faith are received from persons authorised by you to act on your behalf.

31.3 The provision of funds by a third party, and their acceptance by ETX Capital, in respect of trading on your account in no way relieves you of your obligations or affects your liability to ETX Capital under this Agreement.

31.4 For the avoidance of doubt, in the event of your death, ETX Capital will close your open positions and your account upon notice of your death. Your estate will remain liable for any sums owed to ETX Capital. ETX Capital may (but, prior to any grant of representation, is not bound to) act on the instructions of your personal representatives.

32Rights of Third Parties

The parties do not intend any term of this Agreement to be enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 except that any Associate of ETX Capital is entitled to enforce the terms of this Agreement pursuant to that Act.

33Severability

If any part of any provision of this Agreement is invalid or unenforceable, then the remainder of such provision and all other provisions of this Agreement will remain valid and enforceable.

34Termination

34.1 This Agreement may be terminated by either party immediately by notice in writing to the other party.

34.2 Upon such notice being given, any open trades will continue until they are closed or expire in accordance with this Agreement. The service of any termination notice will not affect any obligation or liability that may have already arisen in connection with any open trades or otherwise under this Agreement.

34.3 The following provisions of these Terms and Conditions will continue to apply in full force and effect following termination of this Agreement: clauses 7 (Your Money), 19 (Force Majeure Events), 21 (Complaints and Disputes), 23 (Liability), 26 (Notices, Information and Language), 27 (Data Protection), 29 (Applicable Law and Jurisdiction), 30 (Assignment), 32 (Rights of Third Parties), 33 (Severability), 34 (Termination) and 35 (Interpretation).

34.4 This Agreement has no minimum duration. Since the trades that you may place are subject to market fluctuations, ETX Capital is not required to provide you with a cancellation right.

35Interpretation

35.1 The headings are included for convenience only and will not affect the interpretation or construction of this Agreement.

35.2 In this Agreement, unless the context requires otherwise, any reference to:

(a) a party or the parties is to a party or the parties (as the case may be) to this Agreement;

(b) a statute or statutory provision includes any consolidation or re-enactment, modification or replacement of the same, any statute or statutory provision of which it is a consolidation, re-enactment, modification or replacement and any subordinate legislation in force under any of the same from time to time;

(c) a person includes a firm, corporation and unincorporated associations, trust, government, state or agency of state, any association or partnership or joint venture (whether or not having a separate legal personality); and

(d) a document is to that document as varied, supplemented or replaced from time to time.

35.3 In this Agreement, general words will not be given a restrictive interpretation by reason of this being preceded or followed by words indicating a particular class of acts, matters or things.

36Additional Terms for Spread Bets and CFDs on Options

36.1 ETX Capital quotes markets on option prices on individual shares, stock indices, commodities and interest rates. You are trading on the future value of the option. No option on which you enter into a trade will in fact be entered into or acquired for your benefit and, as a result, cannot be exercised or assigned by you.

36.2 Intrinsic Value: The price of the Underlying Market may indicate whether the option has Intrinsic Value or Time Value or both. If the option on which you enter into a trade has Intrinsic Value, it is deemed to be 'in the money'. For the avoidance of doubt 'in the money' does not refer to the profit (realised or unrealised) on the trade.

36.3 The Intrinsic Value of a call option on which you enter into a trade is equal to the level of the Underlying Market less the Strike Price.

36.4 The Intrinsic Value of a put option on which you enter into a trade is equal to the Strike Price less the level of the Underlying Market.

36.5 In all cases, Intrinsic Value cannot be less than zero.

36.6 Expiry: At expiry, those trades that you have not already closed will automatically expire. The trades on options will be settled at the official exchange prices.

36.7 You should be aware of the special Expiration schedules on index and equity options and must familiarise yourself with the details contained in the options table set out on the Website.

36.8 Margin Requirement: The trading requirement for an opening buy trade on a option is the opening level multiplied by the size of the bet. The trading requirement for an opening sell trade on a option is stake x premium x 2 (minimum 30% of the Underlying Market).

36.9 ETX Capital reserves the right to vary margin amounts at its discretion. For further details please contact the dealing desk.

36.10 Dividends: If there is a dividend payable within the life of the option and this dividend forms part of its Intrinsic Value, ETX Capital reserves the right to quote the option after making an allowance for the deduction of the dividend. If there is a change in the dividend or the dividend date in circumstances where ETX Capital has bought as a hedge and has exercised the relevant underlying option, you will indemnify ETX Capital for any losses thereby incurred and ETX Capital may debit your Trade Funds Available accordingly.

36.11 Settlement: Trades on share options which are not closed by you and are allowed to expire will be settled at the following:

(a) trades on put options will be settled at the Strike Price less the official closing price (the post-auction closing price) of the underlying share on the relevant exchange on the last trading day as reported by Bloomberg, or Reuters, or at zero, whichever is the greater;

(b) trades on call options will be settled at the post-auction closing price of the underlying share on the relevant exchange on the last trading day as reported by Bloomberg or Reuters less the strike or at zero, whichever is the greater.

36.12 ETX Capital will take note of any adjustments made by LIFFE.

36.13 US Settlement: The last dealing date for trades on US share options is the third Friday of the expiry month or the previous Business Day if this coincides with a market holiday.

36.14 Further Details: For further information on contract details, hours of trading, settlement times and rules on dividends please see the Website.

Options Glossary

Expiration

The date and time at which the option expires and all rights or obligations relating to the option cease.

In the money

This describes an option with intrinsic value.

Intrinsic Value

For a call option, this occurs when the level of the market is higher than the strike. Conversely a put option has intrinsic value if the strike is higher than the market level. In both cases the amount of the intrinsic value is calculated by deducting the strikes from the market level.

Strike Price

The fixed price at which the holder of an option is entitled to buy or sell.

Time Value

This is the value of the option after deducting any intrinsic value from the market price. This extrinsic premium reflects the probability that the option will move further into the money prior to Expiration.

↑ Back to top

---

(B) Risk Warning Notice

RISK WARNING: Usually, only a smaller percentage of the total value of the trade is required as deposit. As the movement of the underlying instrument determines the financial outcome of the trade, your profit or loss can substantially exceed that deposit very rapidly. Both Financial Spread Bets and Contract for Differences are examples of Financial Derivatives. Trading Financial Derivatives may not be suitable for all investors.. If you do not fully understand the risks involved, we suggest that you seek independent advice. Only speculate with money you can afford to lose.

The following text is meant to help you understand the risks involved with leveraged Financial Derivatives. It can only serve as a general guide to the risks involved with trading such products, and you must determine if the risks involved are appropriate for your investing strategy. It does not disclose all the risks and other significant aspects of trading Financial Derivatives. The service provided by ETX Capital is not designed to replace traditional methods of investing. It does offer the opportunity to learn more about the financial markets by becoming more involved in the day-to-day movements of those markets.

Financial Derivatives shall mean throughout this text the leveraged form of trading in financial markets, as offered by ETX Capital:

1Leverage or Gearing

Trading Financial derivatives carries a high degree of risk due to a number of factors including 'gearing' or 'leverage'. Gearing or leverage enable you to enter into trades with a comparatively modest deposit or margin in terms of the overall contract value. However, this means a relatively small movement in the underlying market can have a disproportionately dramatic effect on your trade.

If there is a small movement in the underlying market, it may result in the loss of your entire margin amount PLUS leave you liable for any other losses sustained on the position. Therefore it is imperative that you only speculate with money that you can afford to lose.

2Limiting your Risk

Stop, Limit and OCO (one order cancels other) orders are not guaranteed. Hence, although they are intended to limit losses to certain amount they may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses.

The execution of Stop Levels and Limit Orders is subject to market conditions. Every time ETX Capital market prices change, ETX Capital checks to see if any Stop Levels or Limit Orders have been breached. In the event that they have, the orders will be filled at the prevailing ETX Capital price, not necessarily the exact level of the Stop Level or Limit Order. This means that Limit Orders can be filled at levels advantageous to the Client, and Stop Levels can be filled at worse levels than expected. This is possible because markets do not move smoothly. At times they can 'gap' from one price to another. System, communications, and other delays can further exacerbate this problem. Any time that there is a gap between prices posted by ETX Capital for any reason, including system failure, communications breakdown, or any special market condition, all Stops and Limits encountered will be filled at the next ETX Capital price - which may be far from the set Stop Level/Limit Order. You are still liable for the full extent of any losses your positions might suffer.

3Margin Requirements

From time to time you may be called upon to deposit substantial additional Margin, at short notice, to keep your trade open. If you do not provide such additional funds within the time required, your trade may be closed at a loss and you will be liable for any resulting deficit.

4Liability

You can lose substantially more on one position than you have deposited in Margin. Any market losses exceeding the amount of Margin lodged by you will be taken from your Trade Funds Available balance. Losses exceeding the Trade Funds Available will cause the automatic closeout of some or all of your outstanding trades. ETX Capital bears no responsibility for losses sustained or profits missed on trades closed in this manner. If after closing out all trades your Trade Funds Available is still negative, you are liable to cover that shortfall.

5Services

ETX Capital does not provide advisory services. ETX Capital is not currently authorised to offer advice or give investment advice of any kind. However, ETX Capital may give factual market information in relation to a transaction which you have enquired about.

6Overseas Markets

Trades on markets in other jurisdictions outside the UK may expose you to additional risks and costs. Please seek further advice on these risks before trading in overseas markets.

7Pricing

Trades will be executed at the relevant market price. However, they may also be executed at the ETX Capital price.

8Settlement

You agree to be fully and personally liable for the due settlement of every transaction entered into on your account with ETX Capital. This includes any transactions entered into by members of your family or others who have gained access to the account. You are responsible for ensuring that you alone control access to the account, and in particular that no minors are granted access to trading with ETX Capital. In any case, you remain fully liable for any and all positions traded on your account, and for any credit card transactions entered into in respect of your account. You will also indemnify ETX Capital in respect to all costs and losses of any kind whatsoever as may be incurred as a result, direct or indirect, of your failure to perform or settle such a transaction.

9Market Conditions

At times, market conditions and the operation of the rules of certain markets (i.e. suspension of trade due to circuit breakers, lack of liquidity in underlying, and others) may make trading Financial Derivatives more risky. Other similar events cannot be ruled out, and will be dealt with accordingly as they arise.

10Client Funds

If you have been classified as a Retail Client, ETX Capital is required to hold your unutilised money in a segregated account in accordance with FSA regulations unless you agree otherwise - although even in a segregated account you may not be afforded complete protection.

↑ Back to top

---

(C) GLOSSARY

Act of Insolvency means in relation to a party:

(a) its making a general assignment for the benefit of, or entering into an arrangement or composition with, creditors; or

(b) its stating in writing that it is unable to pay its debts as they become due; or

(c) its seeking, consenting to or acquiescing to the appointment of any trustee or analogous officer of it or any material part of its property; or

(d) the presentation or filing of a petition in respect of it in any court or before any agency alleging or for the bankruptcy, or insolvency of such party (or any analogous proceeding) or seeking any arrangement, composition, readjustment, or similar relief under any present or future statute, law or regulation, such petition not having been stayed or dismissed within 30 days of its filing (except in the case of a petition for winding-up or any analogous proceeding in respect of which no such 30 day period shall apply); or

(e) the convening of any meeting of its creditors for the purpose of considering a voluntary arrangement.

Agreement means this agreement comprising the Terms and Conditions, the Additional Terms for Spread Bets on Options, the Risk Disclosure Statement and this Glossary.

Associates means any of the following in relation to ETX Capital from time to time: its subsidiaries and subsidiary undertakings and any holding company or parent undertaking of ETX Capital and all other subsidiaries and subsidiary undertakings of any holding company or parent undertaking of ETX Capital.

Betting and Trading means any transaction entered into under this Agreement.

Business Day means a day (not being a Saturday or Sunday) when banks are open in London for the transaction of general banking business.

Cash Balance means the balance of your account including all debits/credits and profit/losses from closed trades.

Closing Level means the price or market level at which a position is closed.

Complaints Procedure means the written policy governing complaints regarding any aspect of the ETX Capital Services pursuant to this Agreement, as published on the Website from time to time.

Corporate Action means any event initiated by a corporation which impacts its shareholders. Examples include stock splits, consolidations, mergers and spinoffs.

Daily Rolling Spread Bets Or rolling daily market, means a spread bet market that has no expiry date. Rolling bets are automatically rolled over each night with an applicable financing charge applied to the clients account.

Electronic Services means any electronic services, including without limitation trading, direct market access order routing or information services that we grant you access to or make available to you either directly or through a third party service provider.

Eligible Counterparty means , typically, other regulated entities or large funds (including hedge funds). For a fuller definition please go to the FSA website at www.fsa.gov.uk or contact our customer services department.

Equity Future means an equity spread bet market that expires at some point in the future, most commonly on a quarterly basis and is based on the price of an underlying share. Usually funding and dividends are included in the price.

ETX Capital or we means Monecor (London) Limited (company registration number 851820) whose registered office is at Beaufort House, 15 Saint Botolph Street, London EC3A 7DT.

ETX Capital Bid means the price at which a contract can be sold.

ETX Capital Offer means the price at which a contract can be bought.

ETX Capital Services means the services offered by ETX Capital to Clients in respect of Financial Spread Betting and CFDs as specified on the Website.

Expiry Date means the last date and time that trading in a contract can occur. After this date all open contracts are closed (settled) by ETX Capital.

Expiring Trade means a CFD trade that expires at some point in the future, most commonly on a quarterly basis and is based on the price of an Underlying Market. Usually funding and dividends are included in the price.

Financial Spread Betting means speculating in the performance or price movement of an underlying market.

Financial Derivatives means a collective term for securities whose prices are based on the prices of an underlying investment, such as equities, commodities and indices.

Force Majeure Event means an unforeseen event beyond the control of ETX Capital that prevents it from performing its obligations under this Agreement.

FSA Rules means the rules of the Financial Services Authority.

Glossary means this glossary of terms.

Initial Margin Requirement means the minimum sum required to be deposited in order for a Client to open a Financial Spread Betting contract. Also known as initial deposit.

Limit Order means an instruction to deal in a particular Market if our Price in that Market becomes more favourable to you.

Linked Account means all other CFD and Spread Bet accounts held in your name.

Long Bet means an opening bet that is made by buying a market in the hope to profit from any upward price movement.

Loss in respect of any matter, event or circumstance includes all demands, claims, actions, proceedings, damages, payments, losses, costs, expenses or other liabilities, any consequential indirect or special loss, including, but not limited to loss of profits, loss of revenue, loss of anticipated savings or loss of opportunity.

Maintenance Margin means the amount of funds required to maintain an open position.

Margin means Initial or Deposit Margin and/or Maintenance Margin.

Margin Call means a request or deemed request for funds to bring a Client's Trade Funds Available to zero or above.

Market means a unique set of Products based on the price movement of an Underlying Market, for example Barclay share bets and Barclays CFD.

Market Feed means the automated live streaming prices of the underlying futures contracts from their respective exchanges.

Market Order means the level or price of the current prevailing market price.

Non Expiring CFDs means a CFD market that has no expiry date. These trades remain open each night with an applicable financing charge applied to the clients account.

OCO Order means ‘one cancels the other’. An order that consists of two orders at different levels either side of the current market level. The execution of one order automatically cancels the other.

Opening Level means the price or market level at which a position was initiated.

Order means an instruction to open or close a bet at a price, the same as, or higher or lower than the current market price. Examples of order types are Limit, Stop and Market orders.

Player means a Client acting as a virtual investor for virtual money.

Privacy Statement means the privacy statement posted on the Website as amended from time to time.

Product means each type of financial contract we make available under this agreement. For example, our UK 100 Daily Rolling contract is one of our UK100 index Products within the Market group UK Indices.

Professional Client These are typically large organisations or experienced wealthy individuals (Experts). For a fuller definition please go to the FSA website at www.fsa.gov.uk or contact our customer services department.

Retail Client means an individual or small business with usually limited experience in financial trading. For a fuller definition please go to the FSA website at www.fsa.gov.uk or contact our customer services department.

Roll Over means to transfer a bet from an expiring contract to a new contract.

Short Position means an opening bet that is made by selling a market in the hope to profit from any downward price movement.

Spread means the difference between the price at which a contract can be bought and sold at a point in time.

Spot Price means the price for a currency for immediate settlement or delivery.

Stop Level means a level where you wish to close your trade in the case of adverse moves in the market

Stop Order or Stop Loss means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. These orders are commonly used to provide some risk protection.

Tic means the minimum tradable increment of the contract, as defined on the Website, for each contract.

Trade Funds Available means the amount of money in a Client's account that is free to be used for satisfying Margin requirements.

Underlying Market means the financial instrument, index, currency, or other instrument, whose price or value provides the basis for us to establish the price we quote you for any Market.

Website means the website owned and operated by ETX Capital for the purpose of providing the ETX Capital services (URL address www.ETXCapital.co.uk).

↑ Back to top

---

(D) Execution Policy

1Introduction

1.1 Monecor (London) Limited, trading as ETX Capital, is authorised and regulated by the Financial Services Authority. It has a duty to treat customers fairly, to conduct its business in an open, honest and professional manner and to act in the best interests of its clients.

1.2 The business of the firm is to provide clients with the opportunity to enter into financial spread bets and CFDs and those duties are therefore fundamental in relation to this service. The firm has formulated and implemented this Execution Policy to ensure that it takes the necessary reasonable steps to give the best overall outcome to its clients in their trading with the company.

1.3 The Execution Policy is included as an appendix to the ETX Capital Terms and Conditions so that it can be read it conjunction with them and clients can thereby consent to the Policy at the same time they agree to those Terms and Conditions. The Execution Policy itself, however, does not form part of the contractual agreement between the firm and the client.

1.4 Clients requiring more information or further explanation about any aspect of the Execution Policy can contact the firm's Customer Services Department at customerservice@etxcapital.com or telephone +44 (0)20 7392 1494.

2Overview

This Execution Policy determines the reasonable steps that the firm will take in providing financial spread bets and CFDs:

(a) over a range of different and sometimes competing factors

(b) for both the firm's retail and professional clients

(c) on a continuing basis, when executing on their behalf both trades and orders for trades

(d) and, where necessary, taking into account the nature of the trades and any priorities identified by clients, as well as any relevant characteristics relating to a particular individual market itself.

3Trade Execution Modus Operandi

3.1 The firm makes available, on both a general and ongoing basis, via its interactive trading website, or on request from its dealing desk over taped telephone lines, two-way prices on financial markets on which the firm is prepared to enter into transactions. Trading parameters as to minimum and maximum sizes that are accepted, and hours of normal market trading, together with other key information, for example margin requirements, are detailed for all markets the firm offers on the firm's trading website.

3.2 Clients place trades or orders for trades with the firm, either themselves via their personal account access on the trading website or via telephone with the authorised FSA-registered personnel on the firm's dealing desk.

3.3 The firm has designed its trading systems and procedures to ensure that its two-way market prices reflect, at all times, prevailing market conditions and are as competitive as possible. Subject to an underlying market being closed or suspended, within normal market hours the firm makes such prices available for trades within defined trade size parameters, and outside those parameters as the firm determines from time to time (where individual clients are so permitted with reference to the firm's terms and conditions). The firm cannot guarantee, however, that both its bid or offer prices are always the best available in the market.

3.4 The firm may, at its total discretion, choose to enter into an associated underlying financial market to execute a transaction on its own account in order to hedge any particular or residual market position accruing to it as a result of clients' trading. Even where such a transaction can be clearly identified to one particular client's trade, the firm at no time acts as an agent for or on behalf of that client and owes the client no fiduciary-type duty.

3.5 In providing spread betting and CFDs, the firm acts as principal only and therefore represents the sole execution venue to which the client has access and only at the firm's two-way price. Client trades are executed on an OTC basis rather than a regulated market or Multilateral Trading Facility.

3.6 Where a client requests over the telephone a trade execution for a larger than normal market size, or in an illiquid stock, or with a specific request attached, the firm may 'work the order' on a fully disclosed basis to the client. This is where the firm will execute in its own name one or more trades in the underlying instrument itself. Once those trades have been completed it will execute a single or series of trades back with the client.

3.7 Clients can request details of the relevant underlying regulated markets, MTFs exchanges and other liquidity providers that the firm uses itself in order to reference prices for markets offered.

4Execution Criteria

4.1.1 In carrying out its spread betting and CFD services, the firm determines the most advantageous execution for its retail and professional clients by taking into account a number and range of (sometimes competing) factors and criteria.

4.1.2 This Execution Policy defines the firm's prioritisation and approach adopted in reflecting those factors and criteria in executing trades for clients.

4.2 Price

4.2.1 The firm views the relative importance of the price in the execution of a trade for a client as being high.

4.2.2 For any given market the firm quotes two prices, its offer price, the higher one at which clients can buy the market from the firm, and its bid price, the lower price at which clients can sell the market to the firm. The difference between the offer and bid price represents the firm's 'spread' and, subject to status, a client can always deal at either the bid or offer price.

4.2.3 The firm's calculation of a trade's bid and offer price pays due consideration to the price of the underlying market instrument to which the trade relates. For telephone trades the firm has access to a number of different, third party, external reference market data sources. For trades on equities, the data source will be a third party exchange; for markets on the cross-rates of foreign currencies, the data source will be nominated wholesale market participants. Both include data on the bids and offers available to arm's length clients in order to ascertain the basis of the trade price. Where necessary this will then be adjusted to allow for the effect of interest over the period of the market contract, and to take into account any dividend amounts and other relevant factors such as variations in the underlying contract.

4.2.4 The calculated price of these varying factors might mean that the firm's price will not be the same as the price of the underlying market. It may also include a commission in accordance with the terms and conditions entered into.

4.2.5 For spread bets the firm then adds its spread to this resulting price. This spread will generally not be greater than the current pre-determined amount for the respective market as detailed on the firm's website. However, the firm does have the ability under its Terms and Conditions to modify that spread in some circumstances, for example, of low liquidity or fast-moving markets.

4.2.6 When the underlying market instrument is very active and the external source data price is changing rapidly, then the firm is not able to guarantee that every such price movement will result in a change to the firm's calculated price. The firm's frequency of updates of its trade price is subject inevitably to technical limitations as allowed by current hardware, software and data and communication links.

4.2.7 Where clients opt to trade on a bid or offer price shown on the trading website, execution will be at the latest price as calculated by the firm's pricing system. This in some cases might therefore be more, or less, advantageous than the price originally shown, but it will have been executed from the moment the client elects to trade in less than one second. In fast-moving markets the divergence might be greater, although in such cases the firm views the speed and certainty of execution to be an overriding factor in giving the client the most advantageous execution before markets might have moved even further.

4.2.8 The firm undertakes periodic reviews to ensure that the venues from which the firm obtains its underlying market price data continue to represent a competitive source of executable prices.

4.2.9 Some markets offered by the firm to its clients are quoted outside the normal trading hours of the associated underlying market. To execute trades outside such market hours the firm determines its price at its sole discretion, acting in good faith, by reference to one or more related alternative underlying market instruments that are trading; the standing of world market prices in general at the time; and to the supply and demand of other clients. At such times, therefore, the firm exercises a greater degree of discretion in calculating its prices which will also contain generally a wider spread and might be restricted to reduced sized trades.

4.2.10 Where a client specifies a price for a trade, such as with a stop loss, limit order or opening order, where the trade is within normal market hours and normal maximum trade size, then the firm will execute at such a price, unless underlying markets are moving so rapidly as to 'gap through' the specified price when the firm will execute the trade for the client at as fair a price as possible.

4.2.11 If an order level or price is reached whilst the market is closed, the firm will execute the trade at the next available price when the market is open, being generally the first quote reflecting the price in the underlying market at which the firm can reasonably trade in the equivalent size as the order. For the avoidance of doubt, your order is triggered by our price during our market hours, and not the Underlying Market and its opening hours.

4.2.12 The Execution Policy cannot provide a guarantee that when the firm opens or closes a trade with a client the price will always be better than one which could have been obtained elsewhere.

4.3 Costs

4.3.1 For most spread bets the only cost to the client is in relation to the spread, the distance the buy or sell price is away from the mid-point of the market, and to each other in relation to an open and closed trade. There are no other explicit charges, given that interest financing and any dividend calculation adjustments are factored in to determine the actual price of the trade. However, Daily Rolling Spread Bets have an overnight interest charge applied and there may be adjustments made to a clients account for any applicable dividend events associated with such a market.

For certain high net worth telephone clients, dealing can be executed into the respective market and an agreed commission rate will be levied. An agreed daily funding rate will accrue on the clients account and be charged at the time of closing any long position or credited to the client on any short position.

4.3.2 The spread that the firm charges during and outside normal market hours for each market offered is set out in the market information section on the firm's trading website. Regardless of the execution venue the firm itself uses in respect of hedging any position, the spreads do not change. Extra charges or spreads may however be charged where this is negotiated with a client in advance.

4.3.4 For CFDs, a commission as well as a market maker spread is charged. This will only be charged on the execution of a trade which opens a new market position for a client or closes an existing market position.

4.3.5 A financing charge is also levied, being interest charges applied to the value of a client's open long CFD position or Daily Rolling Spread Bet position. For short CFD positions or Daily Rolling Spread Bet positions the firm pays the client a financing charge, although if base rates are low enough this can result in a payment to ETX Capital. This does not apply to foreign currency markets, however, where the financing charge is based on the interest rate differential between the respective currency pairs where the firm pays clients for positions long in the currency with the higher interest rate, and the client pays the firm for long positions in the currency with the lower interest rate.

4.3.6 Financing charges are charged to a client's account and appear on the normal account statement produced.

4.3.7 Commission rates, financing and premium charges are as agreed between the firm and a client.

4.4 Size of Trades

4.4.1 The firm views the relative importance of the size of orders in the execution of a trade for a client as being high where it affects the execution arrangements. In such circumstances, it might influence the choice of execution venue and the overall price of execution might inevitably be affected at the expense of achieving the requested size.

4.4.2 Execution arrangements will not generally be affected by stake sizes where they are within the firm's pre-defined minimum and maximum limits. The basis of those parameters are where they will not have any undue effect on a trade price in relation to the type of market and its general liquidity. Such trades will be executed automatically by the firm's internet trading system. Larger minimum and maximum size restrictions will generally apply to trades executed by telephone than the internet trading website.

4.4.3 Where the stake size required by a client is greater than the firm's defined parameters, it will become an important factor in the execution of the trade.

4.4.4 If a telephone client's instructions are of such a large size or on an illiquid market, the firm may agree with the client to execute one or more trades in the firm's own name on one or more external execution venues. The firm might either place its own order with an execution service which provides direct market access to the electronic order book for the instrument concerned, or with a nominated broker who itself has access to the market order book or to the necessary market makers who provide liquidity in the instrument. Such trades executed are then structured as a spread bet or CFD as required by the client.

4.4.5 Where the trade instructions are for a particularly large size in relation to a market, the firm may choose to work the deal in tranches in order to be able to achieve complete execution and to do so for the most advantageous price outcome. Trades in individual equities in excess of normal market size will usually be exercised in tranches up to or equal to the normal market size until the client's trade execution is complete. In such circumstances, the price may vary between tranches. Depending on the arrangement with the specific client those individual tranches may be passed onto the client as obtained, or be converted into a single trade at the aggregate average price.

4.4.6 Whereas the size of a client's stop loss, limit or opening order might be executed automatically within normal market hours, it might exceed the maximum size when out of those hours in which circumstance the execution may be carried out in tranches where the price might vary considerably for each one in volatile market conditions.

4.5 Speed of Execution

4.5.1 Speed of execution is expected from clients, particularly in real-time markets, where it can become highly important when those markets are fast-moving. In such circumstances both the firm and clients recognise that a delay in execution can have an adverse effect on price performance.

4.5.2 The firm therefore views the relative importance of the speed of execution of a trade for a client as being high.

4.5.3 Should market circumstances result in unusually high demand, then automatic trade pricing might be temporarily superseded wholly or in part by manual price execution. During such times this might cause delays in speed of execution which itself may impact of the price at which trades are executed. To minimise the risk and results of such delays, the firm has measures, including dealing procedures, in place to meet such eventualities.

4.6 Likelihood of Execution

4.6.1 This Execution Policy determines the likelihood of the execution and settlement of trades for clients and the minimisation of uncertainty to be of high importance.

4.6.2 When executing through the internet trading platform, the firm provides clients with screens showing continuously updating prices for markets offered and, subject to trading size and times, the client has the ability to trade immediately and with a very high degree of certainty.

4.6.3 In order to achieve likelihood of execution for larger sized trades of clients trading by telephone, the firm ensures that it has the necessary access to venues which are likely to have the required liquidity to enable such execution of trades. This includes access to other market providers in order to be able to execute or even give up execution, especially for trades of significant sizes or where relevant underlying markets are closed.

4.7 Nature of Trade

The type of trade, including whether it is a stop loss, limit or opening order, can be an important factor of execution where it might determine whether it is priced and executed manually rather than automatically.

4.8 Market Circumstances

In certain circumstances, the nature of the market traded, particularly when involving equities, may become an important determinant in the execution of the trade. Where particular prevailing circumstances relating to a stock might mean that the market impact of the trade might be accentuated and affect future price and the value of the trade going forward, the firm will take all reasonable efforts in order to achieve a fair execution for a client.

4.9 Specific Instructions

4.9.1 If the firm is given specific trade instructions from a client, those instructions will take priority over other determinants as set out in this Execution Policy. Where such instructions are not comprehensive, then for those parts not covered the firm will follow the Policy as required for executing the trade. In general, however, the firm will still exercise its judgement in balancing the various execution factors in order to obtain the most advantageous outcome for the client on a consistent basis.

4.9.2 Where execution under special instructions from a client results in the firm having to use a different process than that specified in this policy, the firm may pass on to the client any direct costs incurred, but only where such charges are first discussed and agreed with the client.

4.9.3 In following special instructions as a priority over the usual approach to execution as defined by this Execution Policy, the firm will take into account the respective client's experience and knowledge of the relevant markets when discussing those instructions with the client.

4.10 Order of Execution

Where execution of trades for clients are worked in the underlying markets, this is done by placing the order in the particular execution venue in the same sequence as received by the firm, unless the particular specifics of a trade or the market conditions mean that this is either impractical to do so or the potential impact means the firm should not.

4.11 Aggregation of Client Trades

The firm may sometimes combine a client instruction to trade, for example in relation to a stop loss order, with those of other clients of the firm in order to execute a single transaction. This will be where the firm believes reasonably that it is in the overall best interests of the clients and is unlikely to result overall to a client's disadvantage.

4.12 Aggregation with Firm's Execution

Where the market position of the firm itself dictates that it is required to execute a trade similar to a client's order, then the client execution will take precedence, unless the two can be combined where this will obtain a better execution outcome for the client.

4.13 Total Consideration

In determining the various priorities and weights of all the different factors and criteria that the firm will take into account in the execution of trades for both retail and professional clients, the firm will usually attach the highest relative importance to total consideration. This will usually comprise the price of the trade and costs related to its execution, but in some circumstances for some clients the firm may determine appropriately that other execution factors, especially both speed and certainty of execution, are more important than price or cost in obtaining the best possible execution result.

5Fiduciary Duty

Although the firm operates in accordance with this Execution Policy, it will not owe any fiduciary duty over and above the contract between the two parties or with respect to specific regulatory obligations placed on the firm.

6Monitoring And Review Of Policy

6.1 The firm's Compliance Department and senior management are charged with the duty, under this Execution Policy, to monitor on a regular basis the firm's operations in relation to it. The purpose of this work will be to identify any deficiencies in execution, to ensure the dealing operation's adherence to the Execution Policy, and to assess the overall effectiveness of the firm's execution arrangements and the adequacy of the Policy itself.

6.2 A periodic review will be made of the venues relied upon for source pricing of trades to allow the firm to achieve execution on a consistent basis in relation to the Execution Policy and to identify whether adjustments or changes need to be made to the execution arrangements. The monitoring and review will also seek to identify any other material changes that may affect the firm's ability to execute trades in accordance with the Policy.

7Changes to & Publication of the Policy

Where the firm identifies the need, and makes any material change to either this Execution Policy or to the trade execution arrangements, then all such amendments and changes will be fully disclosed to clients. The latest version of this Execution Policy will be maintained on the firm's trading website.

↑ Back to top