RISK DISCLOSURE SCHEDULE 1

 

TIGER BROKERS (SINGAPORE) PTE LTD (“TBSPL”) – RISK DISCLOSURE STATEMENT

 

This statement does not disclose all of the risks and other significant aspects of trading in capital market products. In the light of risks, you should undertake such transactions only if you understand the nature of securities, derivatives, and the contracts (and the contractual relationship) which you are entering into and the extent of your exposure to risk. You should carefully consider whether trading in capital market products is appropriate in the light of your experience, objectives, financial resources, and other relevant circumstances. If in any doubt, you should seek professional advice. Different capital market products involve different levels of risk and in considering whether to trade or invest in capital market products, you should be aware of the following points:

i. Terms and Conditions of Trading/ Investing in Capital Market Products

You should read and understand the terms and conditions spelt out in the Customer Agreement, Margin Facility Agreement, Futures Account Agreement, together with all disclosures, terms, conditions, rules, and regulations included on the Website, as the same may be amended, modified, supplemented, or replaced from time to time (collectively the “Terms”), which are referred to and govern the relationship between you and TBSPL.

 

ii. Joint Account

Each joint account holder is jointly and severally liable for all debts incurred in a joint account. A joint account may be operated by not more than 2 individuals.

 

iii. Risk associated with Trading/ Investing in Capital Market Products

a. Price Fluctuation

The price and value of any investment in capital market products and the income, if any, from them, can fluctuate and may fall against your interest. An individual security may experience downward price movements and may under some circumstances even become valueless. An inherent risk of trading/ investing in capital market products is that losses may be incurred, rather than profits made, as a result of buying and selling such products.

b. Suspension or Restriction of Trading

Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any security because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/ offset positions. The placing of contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to intended amounts, as it may be difficult or impossible to execute such orders without incurring substantial losses under certain market conditions.

c. Securities-Based Derivatives (e.g. structured warrants, single stock options)

These instruments may give you a time-limited or absolute right to acquire or sell one or more types of investments which is normally exercisable against someone other than the issuer of that investment. You should be aware of the liquidity and market risks associated with these instruments. These instruments carry a high degree of risk as they often involve gearing or leverage, so that a relatively small movement in the price of the underlying investment may result in a much larger movement, favourable or unfavourable, in the price of the instrument. The price of these instruments can therefore be volatile. These instruments have a limited life and may expire worthless if the underlying instrument does not perform as expected.

 

iv. Risk of Margin Trading

The risk of loss in financing a transaction by deposit of collateral may be significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with TBSPL. TBSPL generally will not issue margin calls, and may liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation. You should therefore carefully consider whether such a financing arrangement is suitable in the light of your own financial position and investment objectives.

 

v. Commission, Fees, Interest and Other Charges

You should obtain a clear explanation of all commissions, fees, interest and charges, including charges for the custody of your investments, and understand that these charges may affect your net profit (if any) or increase your loss. You agree that you will be liable for these charges (as may be amended from time to time).

 

vi. Assets Received or Held Outside Singapore

Client assets received or held by the licensed person or registered outside Singapore are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from Singapore law. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Singapore.   

 

vii. Transactions in Other Jurisdictions

Transactions on markets in other jurisdictions, including markets formally linked to the Singapore market, may expose you to additional risks. Such markets may be subjected to rules and regulations that may offer different or diminished investor protection. Before entering into such trades, you should be aware of the rules relevant to the particular transactions, Singapore regulatory authority may be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected.

 

viii. Currency Risks

The potential for profit or loss from transactions on foreign markets or in foreign currency-denominated securities (traded locally or in other jurisdictions) will be affected by fluctuations in foreign exchange rates.

 

ix. Electronic Trading and Order Routing Systems

Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, modify or cancel orders that were previously entered or view the receipt of confirmations. System or component failure may also result in loss of orders or order priority. Electronic trading system may experience outages or delays as the result of, among other events, power failures, programming failures, accessibility, volatile market conditions or heavy volume of trading which may result in delayed or slowed response time. You should be prepared and maintain alternative trading arrangements for order entry in the event that TBSPL system is unavailable for any reason.

 

x. Risk of Short Selling

When you short sell a stock, TBSPL must borrow such stock on your behalf to effect delivery of such stock to the purchaser, if the lender subsequently issues a re-call notice for such stock, TBSPL will attempt to re-borrow the stock on your behalf. You understand and agree that if TBSPL is unable to re-borrow such stock, TBSPL, without notice to you, is authorised by you to cover your short position by purchasing such stock on the open market at the then-current market price and you shall be liable for any resulting losses and all associated costs incurred.

 

xi. Deposited Cash and Property

You should familiarise yourself with the protection accorded to any money or other property which you deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

 

xii. Non-Advisory Nature of Relationship

You should note and accept that TBSPL does not provide any investment advisory services on any capital market products. You acknowledge and understand that the dealings between TBSPL and you are not subjected to the Guidelines on Fair Dealing Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers issued by MAS. TBSPL will act on an execution-only basis and will not be providing any financial advice to you. While information may be shared with you from representatives and/or agents of TBSPL, it is to be used solely for educational purposes. You agree that you rely on your own judgement in making any investment decision and TBSPL nor its representative is liable for any of such investment decision you made.

 

xiii. Additional Risk Disclosure Statement for Futures Contracts/ Options Trading

You should undertake transactions in futures/ options only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to the risks. Trading in futures/ options may not be suitable for everyone. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, you should be aware of the following, in addition to the risk factors disclosed above:

a. Effect of ‘Leverage’ or Gearing’

Transactions in futures carry a high degree of risk. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position if the market moves against your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.

b. Risk-Reducing Orders or Strategies

The placing of certain orders (e.g. ‘stop-loss’ orders, where permitted under local law, or ‘stop-limit’ orders) which are intended to limit losses to certain amounts 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. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.

c. Variable Degree of Risk

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. 

The purchaser of options may offset its position by trading in the market or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, the purchaser will have to acquire the futures position with the associated liabilities for margin. If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that, ordinarily, the chance of such options becoming profitable is remote. 

Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, the seller will acquire a futures position with the associated liabilities for margin. If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. 

Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

d. Terms and Conditions of Contracts

You should understand the terms and conditions of the specific futures contract or options which you are trading and the associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.

e. Suspension or Restriction of Trading and Pricing Relationship

Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss. 

Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.

 

Note: “Margin” for futures and options means an amount of money, securities, property or other collateral, representing a part of the value of the contract or agreement to be entered into, which is deposited by the buyer or the seller of a futures contract or options to ensure performance of the terms of the futures contract or options.

 

xiv. Risk disclaimer

1. All investments are risky. The historical data of any security or financial product cannot guarantee its future performance or return. Although diversified investment can help you spread risks, it does not help you to benefit or prevent you from losing money in a depressed market. There will always be potential losses in investing in securities or financial products. You need to consider your own investment objectives and risk tolerance before investing. When you use this product, it means that you have read, understood and accepted all the contents of this disclaimer, and that you have fully understood the possible risks and agreed to assume all the risks involved in using this product. You shall be clear that the use of this product does not completely avoid investment risks, and TBSPL does not take any responsibility for the losses and risks of your investment option interest.
2. TBSPL and its affiliated companies will make every effort to ensure the authenticity, sufficiency, reliability and accuracy of the information provided, but they cannot guarantee its absolute reliability and accuracy. All the information, data and material provided by TBSPL will only be used as reference. You must carefully judge the accuracy of market prices, charts, comments and purchases or other information displayed in this product. TBPSL will not take any responsibility for any loss caused by inaccuracy, omission of any content or your subjective reasons.
3. To the maximum extent permitted by applicable laws, TBSPL shall not be liable for any loss or risk arising from the use or inability to use this product, including but not limited to direct or indirect personal damage, loss of business profits, interruption of trade, loss of business information or any other economic loss.
4. Trading in markets in other jurisdictions（including those with formal links to the local market）may involve additional risks. According to the regulations of these markets, the degree of protection you may have may vary or even decrease. Before proceeding with the transaction, you should first identify all the rules regarding the transaction you will be conducting. The regulatory authority in your own location may not be able to enforce the relevant rules in the jurisdictions or markets of the jurisdiction in which you have executed the transaction. TBSPL is not responsible for any damage caused by the application of any rules.

xv. Exemption of liability for user negligence or breach of contract

1. TBSPL has the right to modify or change this disclaimer at any time, and the modified or changed terms will take effect immediately upon publication. If you continue to use this product after the disclaimer modification or change, you will be deemed to have read, understood and accepted the modified or changed terms. If you claim damages on the grounds of not reading, understanding, or accepting the modified or changed terms, TBSPL will not bear any responsibility.
2. You must confirm that you know the functions of this product and the necessary operations to realize the functions of this product, and voluntarily choose to use TBSPL’s products and related services according to your own needs. For any loss caused by your personal negligence or operational mistakes during your use of TBSPL’s products and related services, TBSPL will not take any responsibility.
3. If you use this product for any illegal purpose or in any illegal way and use TBSPL’s services to engage in any illegal acts or acts causing infringement of the rights and interests of others, resulting in losses to you or third parties, TBSPL will not bear any liability for compensation.
4. The software or program used in this product and all contents on the product, including but not limited to texts, pictures, files, information, data, product structure and product design, shall be owned by TBSPL or other rights holders who own its intellectual property rights according to laws, including but not limited to trademark rights, patents, copyrights, business secrets and proprietary technologies. If you use, modify, reproduce, publicly broadcast, convert, distribute, release, publicly publish, conduct reverse engineering, decompile or reverse compile of this product without the prior written consent of TBSPL or other rights holders, TBSPL will not bear any liability for compensation and has the right to demand that you bear the liability for infringement of intellectual property rights.
5. If the account password, personal information and transaction data are leaked or your identity is counterfeited in the process of using this product, TBSPL will not bear any liability for compensation.

 

xvi. Objective disclaimer

1. This product has been tested in detail and closely, but it cannot be guaranteed to be completely compatible with all hardware and software systems, and it cannot be guaranteed to be completely error-free. If there are incompatibilities and software errors, you can call TBSPL's customer service (+65-6950-8274) for technical support, but TBSPL will not be liable for any loss incurred by you in anyway.
2. TBSPL will not be responsible for any loss caused by telecommunication system or Internet network failure, computer failure or virus, information damage or loss, computer system problems or any other force majeure reasons (such as war, communication failure, natural disasters, strikes and government actions).
3. The service provided by this product may be interrupted or malfunctioned due to objective factors such as internet data transmission failure, interruption and delay, which causes a danger that this product function cannot be realized. Under such circumstances, if you suffer from losses due to delayed use or inability to use the services provided by this product, TBSPL will not be liable for compensation. You are recommended to take reasonable and effective protective measures when you are using this product.
4. According to the needs of the company's operation, TBSPL will publish and reprint the news and information provided by the cooperative company in this product and the content provider will be indicated when publishing and reprinting. Based on respect for the intellectual property rights of the content provider, TBSPL will not conduct any substantive review over or make modification of the content provided by the content provider and does not guarantee the authenticity of the content. Please make your own judgment. If you think some content involves infringement or misrepresentation, please report your opinion to the provider of the content.

 

 RISK DISCLOSURE SCHEDULE 2

 

RISK WARNING STATEMENT FOR OVERSEAS-LISTED INVESTMENT PRODUCTS

 

RISK WARNING

An overseas-listed investment product* is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas-listed investment product or authorise someone else to trade for you, you should be aware of: 

• The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction as the overseas-listed investment product would operate under a different regulatory regime.
• The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds.
• The tax implications, currency risks, and additional transaction costs that you may have to incur.
• The counterparty and correspondent broker risks that you are exposed to.
• The political, economic and social developments that influence the overseas markets you are investing in.

 These and other risks may affect the value of your investment. You should not invest in the product if you do not understand or are not comfortable with such risks.   

 * An “overseas-listed investment product” in this statement refers to a capital markets products that is approved in-principle for listing and quotation on, or listed for quotation or quoted only on, one or more overseas securities exchanges or overseas futures exchanges (collectively referred to as “overseas exchanges”). 

 

OVERSEAS-LISTED INVESTMENT PRODUCTS

1. This statement is provided to you in accordance with paragraph 29D of the Notice on the Sale of Investment Products [SFA04-N12].
2. This statement does not disclose all the risks and other significant aspects of trading in an overseas-listed investment product. You should undertake such transactions only if you understand and are comfortable with the extent of your exposure to the risks.
3. You should carefully consider whether such trading is suitable for you in light of your experience, objectives, risk appetite, financial resources and other relevant circumstances. In considering whether to trade or to authorise someone else to trade for you, you should be aware of the following:

Differences in Regulatory Regimes

1. Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
2. Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
3. Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to-date information, and the information published may only be available in a foreign language.

Differences in legal system

1. In some countries, legal concepts which are practiced in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
2. The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
3. The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
4. Some jurisdictions may also restrict the amount or type of investment products that foreign investors may trade. This can affect the liquidity and prices of the overseas listed investment products that you invest in.

Different costs involved

1. There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
2. Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
3. You may have to pay additional costs such as fees and broker’s commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

Counterparty and correspondent broker risks

1. Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/or clearing rights on those exchanges. All transactions that are executed upon your instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your monies and assets held overseas.

Political, Economic and Social Developments

1. Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.

 

RISK DISCLOSURE SCHEDULE 3

 

SECURITIES AND FUTURES ACT 2001

SECURITIES AND FUTURES

(LICENSING AND CONDUCT OF BUSINESS) REGULATIONS (Rg 10)

 

RISK DISCLOSURE STATEMENT REQUIRED TO BE FURNISHED UNDER REGULATION 47E(1) AND TO BE KEPT UNDER REGULATION 39(2)(c) BY THE HOLDER OF A CAPITAL MARKETS SERVICES LICENCE TO TRADE IN FUTURES CONTRACTS OR LEVERAGED FOREIGN EXCHANGE CONTRACTS

1. This statement is provided to you in accordance with regulation 47E(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10).

 

2. This statement does not disclose all the risks and other significant aspects of trading in futures, options and leveraged foreign exchange. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to the risks. Trading in futures, options and leveraged foreign exchange may not be suitable for many members of the public. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, you should be aware of the following:

(a)     Futures and Leveraged Foreign Exchange Trading

(i) Effect of ‘Leverage’ or ‘Gearing’

Transactions in futures and leveraged foreign exchange carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract or leveraged foreign exchange transaction so that the transaction is highly ‘leveraged’ or ‘geared’. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.

(ii) Risk-Reducing Orders or Strategies

The placing of certain orders (e.g. ‘stop-loss’ orders, where permitted under local law, or ‘stop-limit’ orders) which are intended to limit losses to certain amounts 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. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.

 

(b)     Options

(i) Variable Degree of Risk

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. 

The purchaser of options may offset its position by trading in the market or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out of-the-money options, you should be aware that, ordinarily, the chance of such options becoming profitable is remote. 

Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract or a leveraged foreign exchange transaction,  the seller will acquire a futures or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, leveraged foreign exchange transaction or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. 

Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

 

(c)     Additional Risks Common to Futures, Options and Leveraged Foreign Exchange Trading

(i) Terms and Conditions of Contracts

You should ask the corporation with which you conduct your transactions for the terms and conditions of the specific futures contract, option or leveraged foreign exchange transaction which you are trading and the associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract or a leveraged foreign exchange transaction and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances, the specifications of outstanding  contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.

(ii) Suspension or Restriction of Trading and Pricing Relationships

Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss. 

Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.

(iii) Deposited Cash and Property

You should familiarise yourself with the protection accorded to any money or other property which you deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

 

(d)     Commission and Other Charges

Before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

 

(e)     Transactions in Other Jurisdictions

Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to a rule which may offer different or diminished investor protection. Before you trade, you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you conduct your transactions for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.

 

(f)     Currency Risks

The profit or loss in transactions in foreign currency-denominated futures and options contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

 

(g)     Trading Facilities

Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the one or more parties, namely the system provider, the market, the clearing house or member firms. Such limits may vary. You should ask the firm with which you conduct your transactions for details in this respect.

 

(h)     Electronic Trading

Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or not executed at all.

 

(i)      Off-Exchange Transactions

In some jurisdictions, firms are permitted to effect off-exchange transactions. The firm with which you conduct your transactions may be acting as your counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarise yourself with the applicable rules and attendant risks.

 

Note: “Margin” means an amount of money, securities, property or other collateral, representing a part of the value of the contract or agreement to be entered into, which is deposited by the buyer or the seller of a futures contract or in a leveraged foreign exchange transaction to ensure performance of the terms of the futures contract or leveraged foreign exchange transaction.

 

 

RISK DISCLOSURE SCHEDULE 4

 

COMMODITY TRADING ACT (CHAPTER 48A)

 

COMMODITY TRADING REGULATIONS

RISK DISCLOSURE STATEMENT REQUIRED TO BE FURNISHED BY A COMMODITY BROKER, COMMODITY FUTURES BROKER OR SPOT COMMODITY BROKER

 

This statement is provided to you in accordance with section 32(1) of the Commodity Trading Act. The intention of this statement is to inform you that the risk of loss in trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

1. You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
2. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit ("limit move").
3. Placing contingent orders, such as “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.
4. All futures positions involve risk, and a "spread" position may not be less risky than an outright "long" or "short" position.
5. The high degree of leverage (gearing) that is often obtainable in futures trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains.
6. Funds placed with a commodity futures broker for the purpose of participating in foreign markets may not enjoy the same level of protection as funds placed in Commodity Futures Exchanges located in Singapore. Before you trade, you should familiarise yourself with the foreign rules which will apply to your particular transaction.
7. You should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign futures contract is liquidated or the foreign option contract is liquidated or exercised.

 

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY MARKETS.

 

RISK DISCLOSURE SCHEDULE 5

 

NOTIFICATION ON FUTURES TRADING RULE 1.6

 

SGX-DT requires that this notification on the following Rule 1.6 to be provided for your acknowledgement that it is acceptable and accepted by you.

 

Rule 1.6: Exclusion of Liability, Disclaimer of Warranties & Statutory Immunity

 

1.6.1       No Liability for Loss

Unless otherwise expressly provided in this Rules or in any other agreements to which the Exchange is a party, the Exchange shall not be liable to any Person for any loss (consequential or otherwise, including, without limitation, loss of profit), damage, injury, or delay, whether direct or indirect, arising from:

(a)           any action taken by the Exchange in connection with the discharge of its regulatory responsibilities including the suspension,    interruption or closure of the Markets; or

(b)           any failure or malfunction of Exchange Systems.

“Exchange Systems” refers to any pre-trade, trade or post-trade systems, including QUEST, operated by the Exchange in connection with the Markets.

 

1.6.2       Statutory Immunity

As provided under the Act, the Exchange or any Person acting on its behalf including any director or any Committee Member shall be immune from any criminal or civil liability for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of, or in connection with, the discharge or purported discharge of its obligations under the Act or this Rules.

 

1.6.3       Disclaimer of Warranties

All warranties and conditions, both express and implied as to condition, description, quality, performance, durability, or fitness for the purpose or otherwise of any of the Exchange Systems or any component thereof are excluded except as required by law. The Exchange does not warrant or forecast that the Exchange Systems, any component thereof or any services performed in respect thereof will meet the requirements of any user, or that operation of the Exchange Systems will be uninterrupted or error-free, or that any services performed in respect of the Exchange Systems will be uninterrupted or error-free.

 

1.6.4       Index Related Disclaimers

The Exchange, Index Provider and any other party involved in, or related to, making or compiling any index do not guarantee the originality, accuracy or completeness of such indices or any data included therein. Contracts on any index (“Index Contracts”) are not sponsored, guaranteed or endorsed by the Index Provider or any other party involved in, or related to, making or compiling such indices. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any representations regarding the advisability of investing in such Index Contracts. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any warranty, express or implied, as to the results to be obtained by any person or any entity from the use of such index or any data included therein. Neither the Index Provider nor any other party involved in, or related to, making or compiling any MSCI Index makes any express or implied warranty, and expressly disclaims all warranties of merchantability and fitness for a particular purpose or use with respect to such index or any data included therein. Without limiting any of the foregoing, in no event shall an Index Provider or any other party involved in, or related to, making or compiling any index have any liability for any direct, special punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. In addition, neither the Exchange, an Index Provider nor any other party involved in, or related to, making or compiling any index shall have any liability for damages, claims, losses or expenses relating to any futures or options contracts that may be caused by any errors or delays in calculating or disseminating such index. “Index Provider” as used herein refers to MSCI, FTSE, IISL, NKS or such other index provider and their respective affiliates with whom the Exchange has or shall enter into agreements with for the creation and exploitation of indices and index-linked products.

 

1.6.5       Notification to Customers

Members shall notify Customers of the above exclusion of liability and disclaimers of warranty by the Exchange wither by way of inclusion in the contracts granting access to the Markets or such other manner as approved by the Exchange.

 

 RISK DISCLOSURE SCHEDULE 6

 

DISCLOSURE STATEMENT - MARGIN TRADING

 

Tiger Brokers Singapore Pte Ltd (“TBSPL”) and/or clearing and custodial firm (collectively the “Firm”) are furnishing this disclosure to you to provide some basic facts about the purchase and sale of Securities and/or CIS Units (as defined in the Additional Terms for Margin Account) on margin, and to alert you to the risks involved with trading Securities and/or CIS Units in a margin account. Prior to trading Securities and/or CIS Units in a margin account, you should carefully review TBSPL Margin Facility Agreement. You may consult with an appointed representative with TBSPL any time regarding any questions or concerns you may have with your margin account.

 

When you purchase Securities and/or CIS Units, you may pay for the Securities and/or CIS Units in full or borrow part of the purchase price from TBSPL. If you choose to borrow funds from TBSPL, you must have a margin account with TBSPL. The Securities and/or CIS Units purchased are the Firm’s collateral for the loan to you. If the Securities and/or CIS Units in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the Firm can take action, such as issue a margin call and/or sell Securities and/or CIS Units or other assets in any of your accounts, in order to maintain the required equity in the account.

 

You should understand that pursuant to TBSPL Margin Facility Agreement, TBSPL generally will not issue margin calls, and may liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation. The liquidation will incur a fee plus the broker commission.

 

In addition, it is important that you fully understand the risks involved in trading Securities and/or CIS Units on margin. These risks include, but are not limited to, the following:

1. You can lose more funds than you deposit in the margin account. A decline in the value of the Securities and/or CIS Units that are purchased on margin may require you to provide additional fund to the Firm to avoid the forced sale of those Securities and/or CIS Units or other Securities and/or CIS Units in your account(s).

 

2. The Firm can force the sale of the Securities and/or CIS Units in your account(s). If the equity in your account falls below the margin maintenance level requirement, or TBSPL’s higher “house” requirements, TBSPL can sell the Securities and/or CIS Units in any of your accounts held at the Firm to cover the margin deficiency. You will also be responsible for any shortfall in the account after such a sale.

 

3. The Firm can sell your Securities and/or CIS Units without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate Securities and/or CIS Units in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their clients of margin calls, but they are not required to do so. However, even if a firm has contacted a client and provided a specific date by which the client can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling or buying back Securities and/or CIS Units without notice to the client. As mentioned above, TBSPL generally will not issue margin calls and can immediately sell your Securities and/or CIS Units without notice to you in the event that your account has insufficient margin.

 

4. You are not entitled to choose which Securities and/or CIS Units in your account(s) are liquidated or sold to meet a margin call. The Securities and/or CIS Units are collateral for the margin loan, and the Firm has the right to decide which Securities and/or CIS Units to sell or liquidate to protect its financial interests.

 

5. TBSPL can increase its “house” margin requirements at any time and is not required to provide you with advance written notice. These changes in the Firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the margin call may cause the Firm to liquidate or sell Securities and/or CIS Units in your account(s).

 

6. You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to clients under certain conditions such as if TBSPL chooses to issue margin call rather than immediately liquidating under margin positions, you do not have the right to the extension.

 

7. On-lending/Pledging of Securities and/or CIS Units by TBSPL. Securities and/or CIS Units that are purchased using a Margin Facility granted by TBSPL are assigned to TBSPL by way of collateral, coupled with such title transfer rights as to enable TBSPL to borrow for its own, or on-lend to other TBSPL customers, its Intermediary's customers or to other market participants. You verify that you understand the associated risks including the failure of counterparties to return the borrowed Securities and/or CIS Units and any other default risks associated with such on-lending and agree to proceed on such basis.

1. A lender of securities faces the risk of a borrower defaulting on its obligations and failing to re-deliver the borrowed Securities and/or CIS Units, typically as a consequence of an insolvency. The lending of the your borrowed Securities and/or CIS Units to a borrower means that you are exposed to the risk that the borrower may default. This risk is heightened if the on-lending transaction is not collateralised. There is also a risk that the borrower may not settle an obligation for full value on the due date, but on some date thereafter.
2. The lending of your Securities and/or CIS Units means that you lose ownership rights to the said Securities and/or CIS Units. In its place, you will only have a right, to claim for equivalent Securities and/or CIS Units from the borrower. In the event of the insolvency of the borrower, you may not be able to assert any proprietary claim over its securities and may only have an unsecured claim against the borrower.
3. Market risk is the risk of loss from adverse movements in the level or volatility of the market prices of assets. In the case of an uncollateralised on-lending transaction, a default by the borrower may expose you to market risk from an upward movement in the market price of the borrowed Securities and/or CIS Units during the terms of the loan. In the case of a collateralised on-lending transaction, market risk may still arise from movements in the market price of the borrowed Securities and/or CIS Units relative to the collateral. If the borrower does not or cannot top up the collateral, part of the on-lending transaction may become unsecured.
4. There are operational and settlement risks, or risk that deficiencies in a party's systems or internal controls could result in an unexpected loss. Such on-lending can involve a variety of complex administrative, trading, operational and accounting activities, and proper procedures and controls needs to be in place to ensure timely settlements.
5. In so far as you will receive manufactured dividends, you may be required to treat the entire amount as income for tax purposes.
6. There is risk of loss because a contract cannot be enforced, or because of the unexpected application of, or changes in, laws or regulations.

  

 RISK DISCLOSURE SCHEDULE 7

 

Risk Disclosure Statement - Options and Other Derivatives Trading

 

To allow the Client (“you”) to fully understand the risk associated with stock option and other derivative business such as warrants and callable bull/bear contracts (“CBBC”), Tiger Brokers (Singapore) Pte Ltd (“TBSPL”) has prepared this risk disclosure statement for your information. Please read carefully the following contents. In case of any questions, please contact the support staff of TBSPL. This risk disclosure statement does not cover all risks and important matters in the trading of options and other derivatives. You should understand the nature of the subject to be traded and the degree of risk you are responsible for before any trading. Not all clients are suitable for participating in trading options and other derivatives and you should consider cautiously whether to participate in the trades aforesaid according to your own investment experience, financial strength and other relevant conditions.

 

1. Options trading

i. You should be fully equipped with the financial strength, expertise and investment experience necessary for options trading before engaging in any options trading. You should consider cautiously whether to purchase options after fully evaluating your own risk tolerance, investment experience, knowledge of the product, risk control capability etc.

ii. You should possess basic knowledge of, and understand options, relevant laws and regulations, the rules and announcements of the related exchange(s), as well as the rules of TBSPL before you decide to participate in any options trading.

iii. You should fully understand the characteristics of risk associated with options before you decide to engage in any options trading. Unlike stock trading, options are financial derivative products featuring gearing, time delay, co-movement and high risk. An option trade is a margin trade. An option is an exchange-traded specified investment product (as defined in MAS Notice SFA 04-N12 on Sale of Investment Products) with high volatility. It is common to experience significant price increases or decreases in one single trading day. Options contracts are traded for a specified period of time and have no value after expiration. Options therefore expose you to higher risk. You may suffer substantial losses, which may even exceed your account deposits.

iv. You should carefully read the terms and conditions of contract and rules associated with options to be purchased as well as the relevant responsibilities before you decide to engage in any options trading. The relevant exchange(s) may revise the terms and conditions of contract of the option not executed in some circumstances to reflect the change in relevant rights and interests.

v. You should understand that the risks associated with sell option trading are generally higher than the risks of buy option trading. Although the seller may obtain a premium, the seller may also suffer from loss which exceeds the premium due to the fluctuation in the price of contracted subject as the seller needs to perform the obligation of exercising. The options market may experience less liquidity than the equity market. In instances of very low market liquidity, it is possible for enforced liquidation or execution to occur at a very low /high price, resulting in a loss that exceeds the initial deposit.

vi. During options trading, you should pay attention to the ex-dividend and ex-right in case of dividend allocation, dividend payout, shares donation, capitalizing of common reserves, shares allocation and shares splitting or combination with respect to the contract subject. The relevant exchange(s) will adjust the contracting parties and exercise the price of the option contract within the period of validity, and the trading and settlement of the contract will be carried out as per the terms and conditions of the contract after the adjustment.

vii. Option trading is complicated. You should fully understand the rules of options trading, the correlation between the option price and the movement of the underlying stock price, to consider whether you can tolerate the risk of options investments before you decide to participate in option trading.

viii. You should check the terms and conditions of the options contract and the related obligations (for example, under what circumstances you may be responsible for the expiration date of the option and the exercise limit of the option). In some cases, the exchange or clearing company may modify the details of the outstanding contracts (including the option exercise price) to reflect the changes in the relevant assets of the contract. TBSPL is not responsible for any loss of trading that may result from your lack of awareness of the related rules.

ix. Different options strategies carry different risks and have different margin requirements. You should ensure that you are familiar with these risk and requirements. If the margin moves against you or if your options expire, TBSPL may call upon you to deposit additional amounts of margin on short notice. Such additional amounts can be substantial and if you do not provided the required margin within the time provided, your positions may be closed out and liquidated at a loss. You will be liable for any resulting deficit in your account.

x. Trading halts in the underlying security, or other trading conditions (for example, volatility, liquidity, systems failures) may cause the trading market for an option (or all options) to be unavailable, in which case, the holder or writer of an option would not be able to engage in a closing transaction and an option writer would remain obligated until expiration or assignment.

xi. If you do not have sufficient equity to meet the margin requirements for the exercise of an option, TBSPL may not exercise your option or may immediately liquidate the underlying security which results from the exercise of the option.

 

2. Warrants and CBBC on the Hong Kong Exchange

i. Issuer default risk

In the event that a structured product issuer becomes insolvent and defaults on their listed securities, you will be considered as unsecured creditor and will have no preferential claims to any assets held by the issuer. You should therefore pay close attention to the financial strength and credit worthiness of structured product issuers before you participate in trading this kind of product.

“Issuers Credit Rating” showing the credit ratings of issuers is now available under the Issuer and Liquidity Provider Information sub-section under Derivative Warrants and under CBBCs section on the official website of HKEx

 

ii. Uncollateralized product risk

There are no assets guarantee for uncollateralized structured products. In the event of issuer bankruptcy, you can lose your entire investment. You should read the listing documents to confirm if a product is uncollateralized.

 

iii. Gearing risk

Structured products such as derivative warrants and CBBCs are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. You should be aware that the value of a structured product may fall to zero resulting in a total loss of the initial investment.

 

iv. Expiry considerations

Structured products have an expiry date after which the product may become worthless. You should be aware of the expiry time horizon and choose a product with an appropriate lifespan for your trading strategy.

 

v. Extraordinary price movement

The price of a structured product may not match its theoretical price due to outside influences such as market supply and demand factors. As a result, actual traded prices can be higher or lower than the theoretical price.

 

vi. Foreign exchange risk

Your trading structured products with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the structured product price.

 

vii. Liquidity risk

The exchange requires all structured product issuers to appoint a liquidity provider for each issue. The role of liquidity providers is to provide two way quotes to facilitate trading of their products. In the event that a liquidity provider defaults or ceases to fulfil its role, you may not be able to buy or sell the product until a new liquidity provider has been assigned. There is no guarantee that the you could be able to buy or sell the structured product at the target price.

 

viii. Additional Risks Involved in Trading Warrants

a. Time delay risk

In the normal course of events, the value of a warrant will decay over time as it approaches its expiry date. Warrants should therefore not be viewed as long term investments.

b. Volatility risk

The price of warrants can increase or decrease in line with the implied volatility of underlying asset price. You should be aware of the underlying asset volatility.

c. Market risk and turnover

The price of warrants is also affected by its supply and demand in the market in addition to basic factors that decide the theoretical price of the warrants, in particular when the warrants are about to be sold out or new warrants are issued by the issuers. The turnover of warrants should not be considered as the basis of its value increase, and the value of warrants is also affected by other factors, such as the price of relevant assets and volatility, remaining time, interest rates and expected dividend.

 

ix. Additional Risks Involved in Trading CBBCs

a. Mandatory call risk

When trading CBBCs, you should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price/level as stated in the listing documents. You will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. You should also note that the residual value can be zero.

b. Funding costs

The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC, the higher the total funding costs. In the event that a CBBC is called, you will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents.

c. Trading close to the call price

When the price of the underlying asset is close to the call price, the price of a CBBC may become more volatile with wider spreads and the turnover may also be reduced. The CBBC may be called at any time, and the trading ceased. Since the mandatory call may not take place at the same time as the CBBC trading ceases, some trading may only be reached and confirmed by the participator of the relevant stock exchange after the mandatory call takes place. However, any trade being executed after the mandatory call event will not be acknowledged and will be cancelled. Therefore, you should be particularly cautious when deciding to trade CBBC at the price close to call price.

 

 

 

RISK DISCLOSURE SCHEDULE 8

 

Risk Disclosure Statement - Regarding Leveraged and Inversed Funds

Tiger Brokers (Singapore) Pte Ltd (“TBSPL”) is disclosing this disclaimer statement to customers in regard to the characteristics and risks associated with leveraged and inverse mutual funds and exchange traded funds (“ETF”). TBSPL strongly encourages customers to carefully review the fund’s prospectus before investing in a specific fund.

Leveraged Funds

Leveraged mutual funds and ETFs seek to provide leveraged returns at multiples of the underlying benchmark or index they track. Leveraged funds generally seek to provide a multiple (i.e. 200%, 300%) of the daily return of an index or other benchmark for a single day excluding fees and other expenses. Besides using leverage, these funds often use derivative products such as swaps, options, and futures contracts to accomplish their objectives. The use of leverage as well as derivative instruments can cause leveraged funds to be more volatile and subject to extreme price movements.

Inverse Funds

Inverse mutual funds and ETFs, which are sometimes referred to as “short” funds, seek to provide the opposite of the performance of the index or benchmark they track. Inverse funds are often marketed as a way to profit from, or hedge exposure to, downward moving markets, Some inverse funds also use leverage, such that they seek to achieve a return that is a multiple of the opposite performance of the underlying index or benchmark (i.e. -200%, -300%). In addition to leverage, these funds may also use derivative instruments to accomplish their objectives. As such, inverse funds are volatile and provide the potential for significant losses.

Risks Associated with Leveraged and Inverse Funds

Leveraged and inverse funds are complicated instruments that should only be used by sophisticated investors who fully understand the terms, investment strategy and risks associated with the funds. Customers should be aware of certain specific risks involved in trading in leveraged and inverse funds. These risks include, but not limited to:

a. Use of Leveraged and Derivative Instruments

Many leveraged and inverse funds use leverage derivative instruments to achieve their stated investment objectives. As such, these funds can be extremely volatile and carry a high risk of substantial losses. Such funds are considered speculative investments and should only be used by investors who fully understand the risks and are willing and able to absorb potentially significant losses.

b. Most Leveraged and Inverse Funds Seek Daily Target Returns

Most leveraged and inverse funds “reset” daily, meaning that they are designed to achieve their stated objectives daily. Due to the compounding effect, the return for investors who invest for a period different than one trading day may vary significantly from the fund’s stated goal as well as the target benchmark’s performance. This especially true in very volatile markets or if a leveraged fund is tracking a very volatile underlying index. Investments in leveraged and inverse funds must be actively monitored daily and are typically not appropriate for a buy-and-hold strategy.

c. Higher Operating Expenses and Fees

Investors should be aware that leveraged funds typically rebalance their portfolio daily in order to compensate for anticipated changes in overall market conditions. This rebalancing can result in frequent trading and increased portfolio turnover. Leveraged and inverse funds will therefore generally have higher operating expenses and investment management fees than other funds.

d. Tax Treatment of Leveraged and Inverse Funds May Vary

In some cases, leveraged and inverse funds may generate their returns through derivative instruments. Because derivatives are taxed differently from equity or fixed-income securities, investors should be aware that these funds may not have the same tax efficiencies as other funds.

 

 

RISK DISCLOSURE SCHEDULE 9

 

Risk Disclosure Statement - Extended Hours Trading Risk Disclosure

There are special characteristics and unique risks associated with trading in securities outside the Regular Trading Hours (“RHT”) of the exchange(s) which the securities are traded (“Extended Hours Trading” or “Pre/Aft-trading hours”). Customers shall read and understand the risks involve before placing any trades during the Extended Hours Trading. Customers shall familiarise themselves with the trading hours of the relevant markets and determine when and what type of orders to be placed for the securities they wish to trade in.

Risks of trading during Extended Hours includes but not limit to the followings:

i. Risk of Lower Liquidity

Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to Regular Trading Hours. As a result, your order may only be partially executed, or not at all.

 

ii. Risk of Higher Volatility

Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in Extended Hours Trading than in Regular Trading Hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during Regular Trading Hours.

 

iii. Risk of Changing Prices

The prices of securities traded in Extended Hours Trading may not reflect the prices either at the end of Regular Trading Hours, or upon the opening of the next morning. As a result, you may receive an inferior price in Extended Hours Trading than you would during Regular Trading Hours.

 

iv. Risk of Unlinked Markets

Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

 

v. Risk of News Announcements

Normally, issuers make news announcements that may affect the price of their securities after Regular Trading Hours. Similarly, important financial information is frequently announced outside of Regular Trading Hours. In Extended Hours Trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

 

vi. Risk of Wider Spreads

The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in Extended Hours Trading may result in wider than normal spreads for a particular security.

 

vii. Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value (“IIV”)

For certain Derivative Securities Products, an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions, an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals. Additionally, the underlying securities of the indexes or portfolios will not be regularly trading as they are during Regular Trading Hours, or may not be trading at all. This may cause prices during Extended Trading Hours to not reflect the prices of those securities when they open for trading.

 

viii. Professional Traders

Extended Hours Trading has been traditionally been dominated by professional traders and that you may trade directly with professional trades who have years of experience in Extended Hours Trading and who traditionally have superior information about particular securities, including better prices available in other markets.

During the Extended Hours Trading, Tiger Brokers (Singapore) Pte Ltd (“TBSPL”) may provide quotations from and execute customer trades through various Electronic Communications Networks (“ECNs”), exchanges or other trading systems (“Extended Hours Trading Facilities”). Quotations provided during Extended Hours Trading may be different than quotations provided during Regular Trading Hours. Likewise, it is possible that the quotations displayed by TBSPL from Extended Hours Trading Facilities on which TBSPL can execute customer trades may be less favourable than those on other Extended Hours Trading Facilities to which TBSPL does not have access. Last sale information provided by TBSPL may not reflect the prices of the most recent trades on all of the various Extended Hours Trading Facilities.

For more information on the trading hours of the exchanges, you may visit TBSPL official website at www.tigerbrokers.com.sg

 

RISK DISCLOSURE SCHEDULE 10

 

Risk Disclosure Statement - Tiger Fund Mall

 

Before you invest, you should read carefully about the Risk Disclosure Statement provided by Tiger Brokers (Singapore) Private Limited (“Tiger Brokers”). The objective of the Risk Disclosure Statement is to provide basic information concerning the investments via Tiger Fund Mall and for you to make an informed assessment of the risks and uncertainties associated.

 

You need to know and understand the risks involved in any transaction you may undertake. This Risk Disclosure Statement does not include all the risks and material information of your transactions. Before you invest, you should fully understand the fundamentals of your transactions, the market(s) underlying such transactions, the nature and scope of your contractual relationship between with Tiger Brokers and other parties, the legal terms and conditions of your transaction, the extent of your risk exposure, and the potential fees, loss, and tax that could possibly be incurred. You should carefully consider whether such transaction is appropriate for you in light of your financial resources, investment experience, investment objectives, risk tolerance, and other related factors.

 

1. About Tiger Fund Mall

Tiger Fund Mall is a platform that provides investors to subscribe and redeem fund units online. Such fund products may include monetary market fund, fixed-income fund, hybrid fund, and equity fund, which are subject to update from time to time. Each fund is accompanied by its own offering documents, including but not limited to fund prospectus, risk disclosure statement, and historical performance. Before you invest, you should carefully read these documents and determine if the risk level of a fund may fit your risk appetite and if it can fulfill your investment objective(s) as possible.

 

2. Agreements and Legal Documents

You should familiarize yourself with terms and conditions of any agreement, contract, or confirmation that you may enter with Tiger Brokers and any other parties in relation to your investment via Tiger Fund Mall. You must fully understand your rights and obligations under that agreement, contract, or confirmation and carefully study the transaction mechanism and understand the potential risks involved. You may not sign any agreement, contract, or confirmation unless you are familiar with the contents or effects or you have been explained the contents and effects by your professional advisers.

 

3. Nature of Service

You should note and accept that the Tiger Fund Mall is purely an execution-only function to you. In either case, while you are entitled to expect Tiger Brokers or our employees or representatives to answer your queries, such answers do not constitute any advice to your investment in question and should not be assumed to be backed by any prior reasonable due diligence or research or specifically suitable for you to rely on. You should consult with professional service independently to acquire specific advice for your specific financial need(s) and investment objective(s).

 

4. Investment Performance

Due to market conditions and any other relevant factors, past performance does not guarantee future results. Investment principal and returns value will fluctuate, and the market value of your position may be more or less than your initial investment amounts. You should compare the potential future returns and other features of the investment to other available investments before you undertake any transaction. The actual return paid from your investment may be higher or lower than the rates on other investments.

 

Before you invest, you should fully understand all the commissions, fees, and other charges you will be liable for, as such costs must be considered in any risk assessment made by you. The charges may reduce your net profit (if any) or increase your net loss (if any). Your net returns from a transaction will be affected by the transaction costs including but not limited to the costs charged by Tiger Brokers and any other parties in relation to your investment.

 

5. Potential Loss

Your payments or receipts under a transaction will be linked to the particular financial market(s), and you will be exposed to price fluctuation, currency exchange, interest rate, and/or other volatility in such market(s). You may sustain substantial losses on your transactions if market conditions move against your investment objective(s). It is in best your interest to fully understand the impact of market movements, in particular to the extent of profit or loss you would be exposed to when desirable or undesirable occasion occurs. Under certain market conditions, your position may be liquidated mandatorily, and you may be liable for the deficit if incurred.

 

Under certain market conditions, you may find it difficult or impossible to liquidate your position. This may arise from the rules in certain markets (for example, the rules of an exchange may provide for “circuit breakers” where trading is suspended or restricted at times of rapid price movements). Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit your losses up to the intended amounts, as you may find it difficult or impossible to execute such orders without incurring losses under certain market conditions.

 

6. Deposited Cash and Property

You should familiarize yourself with the protection to your money or other property deposited for domestic and foreign transactions, particularly in case of a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules, whereas such regulation may differ from your home jurisdiction’s. In some jurisdictions, property specifically identified as yours will be distributed proportionately in the same manner as cash for distribution in the event of a shortfall. Under certain circumstances, you may not be able to fully recover your positions or your initial investment amounts.

 

7. Electronic Trading Facilities and Systems

Before you undertake any transaction via electronic trading facilities and systems, you should understand the features and details of such facilities and systems. Trading on an electronic trading system may be different from trading on an open-outcry market. Most trading facilities are supported by electronic component systems as your transactions will be executed through the systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the hardware and software failure or disruptions.

 

As with other types of facilities and systems, electronic trading facilities are vulnerable to blackout, failure, and any other disruptions, which may incur losses to your investment. The result of any system failure may include unexecuted order(s), unliquidated position(s), or any other undesirable results against your investment objective(s). Your ability to recover losses may be subject to limits on liability imposed by the system provider, the market, the clearing house, the member firms, and/or other related parties. Such limits may vary. Under certain circumstances, you may not be able to fully recover your positions or your initial investment amounts.

 

8. Transactions in Foreign Jurisdictions

Transactions on markets in other jurisdictions, including markets formally linked to your domestic market, may involve additional risk. Foreign jurisdictions may implement different regulations and provide different protection for your home jurisdiction. Consequently, your investment may not enjoy the same protection conferred by your local authorities. Before you undertake any transaction, you should enquire about any rules or ask for professional advice relevant to your transactions.

 

Your local regulatory authorities may be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the transactions have been effected. You should understand indemnification available in both your home jurisdiction and other relevant jurisdictions before you transact. Restrictions on foreign capitals, limited repatriation of investment capitals and profits, and special tax treatments may exist in foreign jurisdictions.

 

9. Foreign Exchange Risk

You should be aware that your transactions may be influenced by foreign exchange rates. The profit and loss in transactions denominated or settled in a different currency from the currency you carry on your ordinary business or keep your accounts will be affected by fluctuations in currency rates, whether such transactions are effected in your home jurisdiction or a foreign jurisdiction. The bid-ask spread of a currency conversion may influence as there is a need to convert from one currency to another.

 

10. Bonds and Debt Securities

You should understand and be aware of the natures and characteristics of bonds and debt securities. Bonds and debt securities investments offer fixed returns over a defined period. These instruments carry risks such as credit risk, default risk, liquidity risk, and currency risk.

 

Credit risk arises from default events that may result in the inability of the issuer to pay interest or principal outstanding. Default risk is high when the bond or debt securities are rated as non-investment grade or even have no credit rating. In a default situation, the buyer may lose interest and principal. Liquidity refers to the availability for investors to buy or sell a product into a market in an efficient price. Some bonds and debt securities are in poor liquidity since they are not actively traded. Currency risk arises when holding bonds or debt securities denominated in foreign currency, thus exposing to fluctuations in exchange rate. Under certain market conditions, you may lose more than your original investment amounts if exchange rates move adversely.

 

11. Equity Securities

Equity securities include common stocks, preferred stocks, convertible securities, equity-linked products, and funds investing in these products. Unlike fixed income products, equity securities do not offer fixed returns over a defined period, and the yield on equity investments depends on multiple factors, such as price difference, dividend distribution, and market conditions.

 

Equity markets can be volatile. Stock prices rise and fall based on changes in a company’s financial condition and overall market conditions. Stock prices can decline significantly in response to adverse market conditions, company-specific events, and other domestic and international political and economic conditions.

 

Investment on in mid-cap, small-cap, or micro-cap companies generally involves greater risks than investment on larger companies. The market value of a company may fluctuate dramatically.  As a result, under certain conditions, holdings of mid-cap, small-cap, or micro-cap stocks may decline in price even though their fundamentals are solid. They may be more difficult to buy and sell, subject to greater business risks, and more sensitive to market changes, than larger capitalization securities.

 

12. Over-the-Counter (OTC) Products

You should understand and be aware of the natures and characteristics of OTC products. Since OTC transactions are individually negotiated, the OTC markets may be not active as open market, and the OTC product pricing is not efficient and transparent. Subject to different regulatory requirements and business practices, OTC markets participants may not disclose enough information as open market participants should do. As a result, you may be exposed to credit risk of the counterparty in which you enter into an agreement with. You may also be exposed to liquidity risk since an active trading market may not exist.

 

13. Derivatives

You should understand and be aware of the natures and characteristics of derivatives. For the purpose of efficient account management, your investments may include derivatives such as futures, options, and warrants. The risk of investment on derivatives includes but not limited to product terms, underlying assets and their prices, and market volatility. Normally, derivative investment only requires minimum investment amount, so called initial margin, which lifts up the leverage for your portfolio. Consequently, unfavourable execution of a short position when price of underlying asset increases rapidly and forced liquidation upon insufficient margin may cause you loss more than your initial investment amounts.

 

14. Exchange-Traded Funds (ETFs)

You should understand and be aware of the natures and characteristics of ETFs. ETFs are collective investment schemes traded on stock exchanges and may typically replicate or correspond to a stock market index, market sector, commodity, or a basket of assets. ETFs can be broadly grouped into two types. Traditional ETFs track, replicate, and correspond to the performance of an underlying index, such as Standard & Pool 500 Index, Dow Jones Industrial Average, and Hang Seng Index. Synthetic ETFs mimics the behaviour of traditional ETFs by means of leverage and derivatives such as swaps and performance-linked notes. ETFs are exposed to the economic, political, currency, legal, and other risks of a specific sector or market related to the underlying equity, commodity, asset or index that the ETF is designated to track.

 

ETFs are subject to tracking error risk, namely the disparity between the performance of the ETF, measured by its net asset value, and the performance of the underlying index, measured by asset price of its index components. Tracking error may arise due to various factors, including but not limited to failure of the ETFs tracking strategy, the impact of fees and expenses, foreign exchange spread between the investment currency and currency the index are denominated, and corporate actions by the index component companies.

 

Trading ETFs on an exchange does not guarantee that a liquid market exists for ETFs. A higher liquidity risk is also involved if an ETF invests in financial derivative instruments that are not actively traded or the asset price is not easily accessible. This may result in a bigger bid and offer spread and may cause loss.

 

Investment on synthetic ETFs may be exposed to both the risks of index components and the credit risk of the counterparty in relation to the investment. Synthetic ETFs typically invest in derivatives, some of which are standardized products while other may be customized and issued by counterparties. Investors of synthetic ETFs may sustain losses potentially equal to the full value of derivatives if the counterparty defaults or more if the market conditions move against their investment objectives.

 

This Risk Disclosure Statement do not purport to disclose or discuss all of the risks and other significant aspects of any transaction. In light of the risks, you should undertake such transaction only if you understand the nature of the above financial products and the contracts which you are entering into and the extent of your exposure to risk. You should therefore consult with your own legal, tax and financial advisers before entering into any particular transaction.

 

 

 

RISK DISCLOSURE SCHEDULE 11

 

Risk Disclosure Statement - OTC Securities Trading

Before you invest, you should read the OTC Securities Trading Risk Disclosure Statement (the "Risk Disclosure Statement") provided by Tiger Brokers (Singapore) Pte Ltd ("TBSPL") carefully.

 

TBSPL accepts orders to trade certain symbols from OTC Markets[1] (the "OTC Securities"). This Risk Disclosure Statement is to provide the necessary information concerning the OTC Securities trading and assist you in making an informed assessment of the risks and uncertainties associated. In light of these risks, you should undertake such transactions only if you understand the trading nature and the extent of your risk exposure. Not all clients are suitable for OTC Securities trading; therefore, you should carefully consider whether it is appropriate in the light of your experience, objectives, financial resources, risk tolerance, and other relevant factors. You should carefully read the terms and conditions of OTC Securities and rules associated and relevant responsibilities before you decide to invest. If in any doubt, you should seek professional advice. It would be best if you also read the other risk disclosure statements concerning stock trading.

 

1. About OTC Securities

TBSPL enables its clients to trade certain OTC Securities only, not all OTC Securities are available to trade. Before you invest, you should determine whether a symbol is available as it may influence your investment objectives.

 

Investment in OTC Securities is speculative and involves a high degree of risk because some OTC Securities are not subject to the financial reporting standards or disclosure requirements. Reliable information regarding issuers of OTC Securities, their prospects, and risks associated with the business of any particular issuer or an investment in the issuer's stocks may not be available. As a result, it may not be easy to value an investment in OTC securities properly.

 

The OTC Securities are for professional and sophisticated investors with a high risk-tolerance for trading stocks with limited information available and limited regulatory oversight. Some OTC Securities are typically penny stocks, low-priced shares of small companies or shell companies, shares of distressed companies not willing or able to disclose information, delisted symbols, or foreign equity issues unqualified to list on New Stock Exchange or Nasdaq.

 

You must know that you may lose all or part of your initial investment amount in OTC Securities. Given the OTC Securities disclosure requirements are less stringent, OTC Securities are frequent targets of market manipulation. Dealers may dominate the market and set prices that are not based on competitive forces. Individuals or groups may create fraudulent markets and control the sudden sharp increase or collapse in share price.

 

2. Market Liquidity

Many OTC Securities are relatively illiquid. Illiquid stocks are often difficult for investors to buy or sell without dramatically affecting the quoted price. Fewer market participants can lead to less liquidity and more volatile price fluctuations. In some cases, the liquidation of a position in OTC Securities may not be possible within a reasonable period of time. You may find it hard selling OTC Securities with little or no value in the open market.

 

3. Trading Commission

As a brokerage firm, TBSPL does not solicit or recommend transactions in OTC Securities. Because accounts with Tiger Brokers are self-directed, please perform your own ‘due diligence’ before investing in any stock. In all OTC Securities transactions, the commission charged is public demonstrated on Tiger Brokers (Singapore) Pte Ltd official website.

 

4. Fraud

OTC securities are frequent targets of fraud or market manipulation, not only because of their generally low price but also because the reporting requirements for these securities are less stringent than for listed or NASDAQ traded securities, and no exchange requirements are imposed. Dealers may dominate the market and set prices that are not based on competitive forces. Individuals or groups may create fraudulent markets and control the sudden, sharp increase of price and trading volume and the equally sudden collapse of the market price for a security. You should carefully review all of the information regarding the company you intend to invest in, prior to trading in OTC securities, or any other investment. Please report any suspected occurrences of fraud to your state securities administrator, the NASD, or the SEC.

 

5. Trading Hours and Trading Unit

You can only trade OTC Securities during regular trading hours that last from 9:30 AM to 16:00 PM US Eastern Standard Time. Pre-market and extended trading are not available. On half trading day, the trading hours will last from 9:30 AM to 14:00 PM US Eastern Standard Time.

 

The minimum trading unit of OTC Securities 1 share. You may place at tick size of US$ 0.01. Margin trading and short selling are available for some OTC Securities, and such availability may be modified by TBSPL from time to time without prior notice.

 

6. Available Order Types and Limitation

You should note that due to the volatile nature of OTC Securities, currently you may only place limit price order and stop-loss limit order when trading OTC Securities, and the available order types may be updated from time to time without prior notice to you. You must understand that your order may be delayed due to large order volume.

 

7. Market Quotation and Additional Fees

You must understand that real-time quotation for OTC Securities is not available. The market price displayed is the market price 15 minutes before. For some OTC Securities, additional fees may be charged to your account due to transfer and custody issues.

This Risk Disclosure Statement is for reference purposes only and is neither an offer nor a solicitation to purchase or sell any financial product or service. None of the information provided in this Risk Disclosure Statement constitutes a recommendation that any product or service is suitable for any person. This Risk Disclosure Statement do not purport to disclose or discuss all of the risks and other significant aspects of any transaction. In light of the risks, you should undertake such transaction only if you understand the nature of the above financial products and the contracts which you are entering into and the extent of your exposure to risk. You should therefore consult with your own legal, tax and financial advisers before entering into any particular transaction.

[1] https://www.otcmarkets.com/

 

RISK DISCLOSURE SCHEDULE 12

 

Risk Disclosure Statement – Daily Leverage Certificates (DLCs)

Daily Leverage Certificates (DLCs) are primarily for investors who are willing to accept the risk of substantial losses up to the principal investment amount, possibly within a very short time frame.

 

Investors should have sufficient understanding of the product and possess either a high level of knowledge or sufficient trading experience to evaluate and assess the product structure properly, associated risks, valuation, costs and expected returns.

 

All investors should be Specified Investment Products (SIP) qualified to invest in DLCs, i.e. they need to complete a Customer Account Review (CAR) before they can invest in this product.

 

DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying asset. Investors should be aware of the underlying risks before investing in these certificates.

 

RISK DISCLOSURE SCHEDULE 13

 Risk Disclosure for short-selling

 

1. The Electronic Trading Systems will recognise if an Order is placed as a long or short sale. You acknowledge that:
   1. short sales may only be effected in a Margin Account and are subject to the Initial Margin and Margin Maintenance require; and
   2. prior to effecting a short sale for you, TBSPL or its Intermediary must be able to borrow such securities on your behalf to effect delivery of such securities to the purchaser.

 

2. When you borrowed securities for short sell, you are require to maintain the margin require and TBSPL may initial a buy-back of the borrowed securities without prior notification to you if the Collateral of your Account falls lower than the margin requirement.

 

3. You are required to furnish and maintain Collateral in your Account with TBSPL to meet Margin Requirement for Short Sell. Accordingly, you will encounter various risks, including:
   1. An increase in the value of the borrowed securities and/or decrease in the value of the Collateral may require you to provide additional Collateral to TBSPL to avoid TBSPL from realising the existing Collateral;
   2. TBSPL can realise the Collateral to cover the deficiency in the Margin require for the short sell. You will also be responsible for any short fall after such realisation;
   3. TBSPL can realise the Collateral without contacting you. Some investors mistakenly believe that TBSPL must contact them for a call for additional Collateral to be valid, and that TBSPL cannot realise Collateral to meet the call unless TBSPL has contacted them first. This is not the case, TBSPL may notify you of a call for additional Collateral but is not require to do so. However, if TBSPL has contacted you and provided a specific date by which you can meet a call for additional Collateral, TBSPL can still take necessary steps to protect its interests. This may include immediately realising the Collateral without notice to you;
   4. You are not entitled to choose which Collateral are to be realised to meet a call for additional Collateral. TBSPL has the right to decide which Collateral to realise in order to protect its interests;
   5. TBSPL can increase the Margin Requirement for the short sell at any time and is not required to provide you advance written notice. These changes in TBSPL policy often take effect immediately and may result in the issuance of a call for additional Collateral. Your failure to satisfy the call may cause TBSPL to realise the Collateral;
   6. You are not entitled to an extension of time on a call for additional Collateral. While an extension of time to meet such a call may be available to you under certain conditions, you do not have a right to the extension.

 

4. The interest, dividends and any distribution whatsoever (each a “Distribution”) attributable to the Borrowed Securities belong to TBSPL and you have to pay and deliver to TBSPL any such Distribution on its date of payment regardless of whether you receive the same. You are also to exercise any voting rights attached to such Borrowed Securities and any other rights arising and attributable to the Borrowed Securities in accordance with the instructions of TBSPL, if you have agreed to the same. Failure to pay any Distribution to TBSPL, or to protect and exercise any rights with respect to the Borrowed Securities in accordance with the instructions of TBSPL (where the Client has agreed to do so) may expose you to liability.

 

5. Where, in respect of any Borrowed Securities, any rights relating to conversion, sub-division, consolidation, pre-emption, rights arising under a takeover offer, rights to receive securities or a certificate which may at a future date be exchanged for securities or other rights, including those requiring election by the holder for the time being of such Borrowed Securities, become exercisable prior to the delivery of Equivalent Securities, then TBSPL may, within a reasonable time before the latest time for the exercise of the right or option give written notice to you that on delivery of Equivalent Securities it wishes to receive Equivalent Securities in such form as will arise if the right is exercised or, in the case of a right which may be exercised in more than one manner, is exercised as is specified in such written notice.

 

 

 

RISK DISCLOSURE SCHEDULE 14

 

 

Disclosure Statement Regarding Electronic Trading and Order Routing Systems

 

1. Electronic trading and order routing system differ significantly from traditional outcry pit trading and manual order routing methods. Transactions using an electronic system are subject to the rules and regulations of the exchanges offering the system and/or products. You must understand that the exchanges may be located in different time zones, therefore, you are obligated to know and conduct your trading according to the business hours of the various exchanges. You are responsible for directing your trading in accordance with the relevant policies, procedures and trading rules of the exchanges to which your orders are routed.

 

2. Trading or routing orders through electronic systems varies widely among different electronic systems. The orders are subject to the rules and regulations as prescribed by the various exchange(s) offering the system and products you are trading, hence, before you engage in transactions using an electronic system, you should carefully review the applicable rules and regulations of such exchanges to understand, including but not limit to, the system’s order matching procedure, opening and closing procedures and prices, error trade policies, and trading limitations or requirements, qualifications for access and grounds for termination and limitations on the types of orders that may be entered into the system and the risk involves in such matters.

 

3. Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, modify or cancel orders that were previously entered or view the receipt of confirmations. System or component failure may also result in loss of orders or order priority. Electronic trading system may experience outages or delays as the result of, among other events, power failures, programming failures, accessibility, volatile market conditions or heavy volume of trading which may result in delayed or slowed response time. You should be prepared and maintain alternative trading arrangements for order entry in the event that TBSPL system is unavailable for any reason.

 

4. To the extent that you or TBSPL use Internet services to transport data or communications, TBSPL disclaims any liability for interception of any such data or communications. TBSPL is not responsible, and makes no warranties, regarding the access, speed, availability or security of Internet or network services.

 

5. Exchanges offering electronic trading or order routing system and/or products may have adopted rules to limit their liability in regards to software and communication systems failure, therefore you may be limited in the amount of damages that may be collected in the event of a system failure. These limitations of liability vary among the exchanges. You should consult the rules and regulations of the relevant exchanges you plan to enter trades for execution.

 

6. Some contracts offered on an electronic trading system may be traded electronically and through open outcry during the same trading hours. You should review the rules and regulations of the exchange offering the system and/or listing the contract to determine how orders that do not designate a particular process will be executed.

 

7. You will find that it is extremely difficult or impossible to cancel market orders before execution in the electronic markets. While limit orders do not ensure execution of your order, limit orders may reduce your execution risk.

 

RISK DISCLOSURE SCHEDULE 15

DISCLOSURE STATEMENT – SECURITIES BORROWING AND LENDING

There are risks inherent in securities borrowing and lending, including the risk of failure of the other party to comply with the terms of the Agreement. Therefore, it is important that you understand the risks before entering into any Borrowing Transaction or Lending Transaction (or authorising anyone do to so on your behalf). This risk disclosure statement does not purport to be a comprehensive summary of all the risks associated with a securities borrowing or securities lending transaction. You should consult your own professional, financial, legal and tax advisers about the risks associated with a securities borrowing or securities lending transaction and the suitability of entering into such a transaction in light of your particular circumstances. The following risks highlighted do not substitute individual advice by an investment adviser, which should in any event be obtained prior to the decision to enter into a securities borrowing or securities lending transaction. Investment decisions should not be made solely on the basis of this risk disclosure statement since the information contained herein cannot serve as a substitute for individual advice which is tailored to your requirements, investment objectives, experience, knowledge and circumstances.

1. Securities Lending
1.1 A lender of securities faces the risk of a borrower defaulting on its obligations and failing to re-deliver the Borrowed Securities, typically as a consequence of an insolvency. The lending of the Client's Securities to a borrower means that the Client is exposed to the risk that the borrower may default. This risk is heightened if the Lending Transaction is not collateralised. There is also a risk that the borrower may not settle an obligation for full value on the due date, but on some date thereafter.

1.2 The lending of the Client’s Securities means that the Client loses ownership rights to the said Securities. In its place, the Client will only have a right, to claim for Equivalent Securities from the borrower. In the event of the insolvency of the borrower, the Client may not be able to assert any proprietary claim over its securities and may only have an unsecured claim against the borrower.

1.3 Market risk is the risk of loss from adverse movements in the level or volatility of the market prices of assets. In the case of an uncollateralised Lending Transaction, a default by the borrower may expose the Client to market risk from an upward movement in the market price of the Borrowed Securities during the terms of the loan. In the case of a collateralised Lending Transaction, market risk may still arise from movements in the market price of the Borrowed Securities relative to the Collateral. If the borrower does not or cannot top up the collateral, part of the Lending Transaction may become unsecured.

1.4 There are operational and settlement risks, or risk that deficiencies in a party's systems or internal controls could result in an unexpected loss. Securities borrowing and lending can involve a variety of complex administrative, trading, operational and accounting activities, and proper procedures and controls needs to be in place to ensure timely settlements.

1.5 In so far as the Client will receive manufactured dividends, the Client may be required to treat the entire amount as income for tax purposes.

1.6 There is risk of loss because a contract cannot be enforced, or because of the unexpected application of, or changes in, laws or regulations.

2. Securities Borrowing
2.1 The borrowing of Securities by the Client from Tiger Brokers is an on-demand facility. There is a risk that Tiger Brokers may require the Client to return the Borrowed Securities or to re-deliver Equivalent Securities and the Client has to do so within the time specified in the Agreement. If the Client fails to return the Borrowed Securities or re-deliver the Equivalent Securities, this will constitute an event of default in relation to the Client.

2.2 When the Client borrows securities from Tiger Brokers, the Client will be required to deposit a required level of Collateral. There is a risk that the Client may be called upon at short notice to place additional deposits if the level of Collateral is inadequate in relation to the market value of the Borrowed Securities. If the required deposit is not made within the prescribed time, Tiger Brokers may terminate the Agreement and close out the transactions at a loss to the Client.

2.3 The interest, dividends and any distribution whatsoever (each a “Distribution”) attributable to the Borrowed Securities belong to Tiger Brokers and the Client has to pay and deliver to Tiger Brokers any such Distribution on its date of payment regardless of whether the Client receives the same. The Client is also to exercise any voting rights attached to such Borrowed Securities and any other rights arising and attributable to the Borrowed Securities in accordance with the instructions of Tiger Brokers, if the Client has agreed to the same. Failure to pay any Distribution to Tiger Brokers, or to protect and exercise any rights with respect to the Borrowed Securities in accordance with the instructions of Tiger Brokers (where the Client has agreed to do so) may expose the Client to liability.

2.4 Where, in respect of any Borrowed Securities, any rights relating to conversion, sub-division, consolidation, pre-emption, rights arising under a takeover offer, rights to receive securities or a certificate which may at a future date be exchanged for securities or other rights, including those requiring election by the holder for the time being of such Borrowed Securities, become exercisable prior to the delivery of Equivalent Securities, then Tiger Brokers may, within a reasonable time before the latest time for the exercise of the right or option give written notice to the Client that on delivery of Equivalent Securities it wishes to receive Equivalent Securities in such form as will arise if the right is exercised or, in the case of a right which may be exercised in more than one manner, is exercised as is specified in such written notice.