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Updates to the Financial Services Guide (FSG) and Product Disclosure Statement (PDS) effective 1 November 2022.

The following updates have been made to the Financial Services Guide (FSG) and Product Disclosure Statement (PDS) effective 1 November 2022.

Financial Services Guide (FSG):

• Updates to the “Derivatives” section:
• New sub-heading: “Transactions Executed and Cleared via PID 6381”
• New sub-heading and paragraph: “Transactions Executed and Cleared via PID 6382” along with the fees associated to PID 6328.
• ASX Clear charges a registration fee of $0.06 - $0.31* plus GST per listed single stock option contract.
A fee of between $0.05 - $0.25* plus GST per contract for single stock option registrations reporting depending on the Tiered Fee category of the stock. 
The ASX allocates each Single Stock Option into one of five Tiered Fee Categories.
The current list of stock per category can be found at: ASX - Cost of trading options https://www2.asx.com.au/markets/market-resources/asx-schedule-of-fees/cost-of-trading-options.
The ASX reviews the allocation of stock approximately every 6 months. 

Tiered Fee Category	ASX Registration Fee ($ per Contract – excluding GST)*</p>
1	$0.06
2	$0.10
3	$0.13
4	$0.21
5	$0.31

*Per contract fee of $0.00 applies if premium is $0.01 or lower.

• If you exercise an equity option, ASX Clear will charge an exercise fee of $0.05 plus GST per contract. If you are assigned on an options position, ASX Clear will charge a fee of $0.05 plus GST per contract. 

In the case of index options, ASX Clear will charge a registration fee of $0.45 plus GST per contract for ETOs and an exercise fee of $0.35 plus GST per contract. For index option registration, ASX Clear will charge a registration fee of $0.40 plus GST per contract and an exercise fee of $0.30 plus GST per contract.

Product Disclosure Statement (PDS):

1. Added a new section titled ‘How we process your transactions’ on page 8
   • “Participant Identification Numbers (PIDs) are used to identify organisations which are authorised by ASX, the Authorised Market Operator, to trade, clear and settle trades with the market.  AUSIEX trades, clears and settles transactions using two Participant Identifiers (PIDs): 6381, or 6382. 
     
     Your account will be established on a PID nominated by AUSIEX, at its absolute discretion, and all your transactions on that account will be processed on that PID. If your Exchange Traded Options transactions have been executed or cleared via PID 6382, your trade confirmations and statements will contain the notation at the end of the document, “Traded, settled and/or cleared through AUSIEX’s ASX Participant ID 6382.” All other transactions are cleared through Participant ID 6381.  
     
     AUSIEX may transfer your account from PID 6381 to PID 6382 without prior notice. The Contract Fees which apply to your Exchange Traded Options transactions will depend on the PID on which your account is recorded for the trading, clearing and settlement of your transactions at the time at which the fee is applied. You agree to pay the applicable Contract Fee charged to your account, as outlined below.”
2. Updates to ‘How to calculate the cost of an options trade’:
   • Renamed the existing column heading to PID 6381 and added a new column titled ‘PID 6382’ to identify the costs differences between the two PIDs:
     

     	PID 6381	PID 6382
     Trade	Buy 50 Contracts of XYZ March $20 Call Options at $1	Buy 50 Contracts of XYZ March $20 Call Options at $1
     Premium	50 Contracts at 100 shares per contract	50 Contracts at 100 shares per contract (50 x 100 shares = 5,000) x $1 = $5,000
     Brokerage + Adviser Fee	(50 x 100 shares = 5,000) x $1 = $5,000 (Greater of $33 or 0.275% of the premium) = $33 including GST + Adviser Fee	(Greater of $33 or 0.275% of the premium) = $33 including GST + Adviser Fee
     ETO Contract fees	50 x $0.13 (excl. GST) = $7.15 including GST	50 x $0.21 (excl. GST) = $11.55 including GST
     Total Costs	$5,040.15 + Adviser Fee	$5,044.55 + Adviser Fee

You can find the updated FSG and PDS now available for download from our website. Should you have any questions about these changes, please contact us.