Regulatory Guide 227 (RG 227) issued by Australian Securities and Investment Commission sets out 7 disclosure benchmarks for over the counter contracts for difference. Product Disclosure Statements must address the benchmarks on an "if not, why not" basis. The table below set out Bacera Co Pty Ltd.'s disclosure against the benchmarks for Bacera's PDS.
Meets RG 227 Requirements?:
Yes | No
Bacera assesses a potential client’s qualifications and trading experience during the account opening process. Potential clients are required to read this PDS and declare they understand the risks involved in opening a CFD trading account with Bacera.
>This benchmark requires an issuer to only accept cash or cash equivalents (such as credit cards) as opening collateral when establishing an account and limits credit payments to $2,000 AUD per deposit.
Bacera accepts cash and credit cards. While Bacera does not encourage trading using borrowed funds, we realize the additional funding option is appreciated by our clients. To limit fraud risk, Bacera imposes a limit of $2,000 AUD on initial account funding done via credit card, and we also limit overall credit card funding to $5,000 AUD per month. Please note that exceptions may apply.
You should be aware that trading on leverage with borrowed money exposes you to greater credit risks and cash flow risks. This includes the risk of 'double leverage'.
Counterparty Risk – Hedging
Bacera maintains a written policy to manage its exposure to market risk from open positions. See Product Disclosure Statement Section 5.3 (“Bacera as a Counter Party”) for more information.
Counterparty Risk – Financial Resources
Bacera maintains and applies policies to ensure that it meets the financial requirements of a holder of an Australian Financial Services License. See Product Disclosure Statement Section 5.2 (“Bacera as Market Maker”) for more information. Copies of Bacera’s latest audited financial statements and risk management procedures are available to prospective client upon request.
Bacera has a well-defined Client Money policy and holds client money in segregated trust accounts with an authorized deposit-taking institution. Bacera does not use client money for any purpose, including meeting obligations incurred by us when hedging with other counterparties or meeting the trading obligations of other clients. See Product Disclosure Statement Section 2.13 (“Client Funds”) for more information.
Suspended or halted underlying assets
Bacera does not allow trading in positions when there is a trading halt in an Underlying Asset or Underlying Market. Please also note that Bacera reserves the right to change the margin requirement on a position or close-out a position. For more information regarding Bacera’s discretion, please refer to Product Disclosure Statement Section 2.21 of this PDS.
Bacera’s Dealing Department will attempt to notify the client before a Margin Call
occurs with a notification in the Mailbox function on the Bacera ProTrader trading platform. The notification will be sent when
the client’s account equity is nearing Margin Call levels.
Please note that while Bacera will make an effort to notify you as soon as possible, we can not guarantee that positions will not be liquidated in situations where market conditions are extremely volatile. Bacera recommends that you use the Bacera ProTrader trading platform as the primary means of monitoring and managing your margin obligations.
You are responsible for monitoring your account at all times. Please see Product Disclosure Statement Section 2.17 (“Margin Call”) for more information.