Before you apply to open an account with Jarden, you must carefully consider whether trading the particular financial product is appropriate for you in light of your circumstances and financial position. You should not trade unless you understand the nature of the contract and the extent of your exposure to risk.
Disclosure documents
Make sure you have read and understood these important documents before completing the Application Form. They contain important information about our services to you and the products provided. We recommend that you download these documents and keep in a safe place for future reference.
Information in the Privacy Policy can change from time to time. When information that changes is not materially adverse to clients, we may update the information in these documents or by publishing an update on our website. You can access the latest version of these documents free of charge from our website or by contacting us.
General trading risks
1. Investment risk
You should only trade with money you can afford to lose. Derivatives trading, in particular where it is margined, carries a high level of risk. You could lose more than your initial investment and may owe money under the derivative, and it may not be suitable for you. The value of your investment may fall for a number of reasons, including the risks set out below. You should ensure that you fully understand the risks involved before trading.
2. Market risk
Markets can be volatile. Certain events may have a negative effect on the value of investments within a particular market. These events may include changes in economic, social, technological or political conditions, as well as market sentiment. The market rate or price which you are quoted may change significantly due to volatility, up until such time as you choose to accept that rate or price. Once you have accepted a rate or price it will remain fixed.
3. Product risks
Each of our products has different product features and our products may differ from those offered by other product issuers. It is important that you read the disclosure documents to ensure you understand how each of our products operate and the risks and benefits of those products before trading. Features to consider include, but are not limited to:
- How to open a transaction
- Deposit and margining requirements
- Termination and extension of transactions
- Types of orders and limitations
- How we get paid
Where you enter into an OTC derivative, the issuer is not obliged to sell or buy back these products before the settlement date and they cannot be traded on a market with anyone else.
3.1 Deposit and margin risks
You may be required to make an initial margin deposit or one or more additional margin deposits for derivative products. If you are unable to pay any additional margin deposits on time the transaction may be closed out and any other transaction that you have open without notice.
You may be required to make additional margin payments to contribute towards your future obligations if you are the seller of an Option. These payments may be required at short notice and can be substantial.
In volatile markets, you may be required to make additional margin payments to contribute towards your future obligations under these derivatives. These payments may be required at short notice and can be substantial.
3.2 Counterparty risks
Because you may be dealing with us as a counterparty to a transaction, you will have an exposure to us in that you rely on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as a “counterparty risk” or “credit risk.” If our business becomes insolvent, we may be unable to meet our obligations to you. You can assess our financial ability to meet our counterparty obligations to you by reviewing financial information about us.
4. Operational risks
Delay in receiving funds may happen due to technical or administrative problems by us or by intermediaries for reasons that are outside our control.
4.1 AML/CTF requirement
Jarden Australia is committed to meeting the regulatory requirements for Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF). To comply with these requirements we may:
- require you to provide to us, or otherwise obtain, any additional documentation or other information;
- suspend, block or delay transactions on your account, or refuse to provide services to you;
- report any, or any proposed, transaction or activity to anybody authorised to accept such reports relating to AML/CTF or any other law.
4.2 Government risks
There is a risk that your money may be delayed or lost due to an event or incident of a sovereign, strategic, political, or governmental nature in any of the countries in which we operate. In such an event, we would attempt to recover your money, however we do not guarantee the security of your funds in this situation.
4.3 System risks
Technology risks in relation to our trading platforms are inherent in every online trading system. For example, disruptions in our operational processes such as communications, computers, computer networks, software errors and bugs or external events may lead to delays in execution and settlement of transactions. In the event that a disruption occurs, you may be unable to trade in a financial product offered and you may suffer a financial loss or opportunity to close a position. Any disruption to the system of a third-party provider is beyond our control.
5. No cooling off
There is no ‘cooling off’ period associated with our products. Once you enter into a forward or spot contract with us, the contract cannot be terminated or varied without our consent.
6. Regulatory risks
Limitations of ASIC regulation
Jarden Australia Pty Limited holds an Australian Financial Services licence (AFS licence) issued by ASIC and is required to meet certain regulations.
You should be aware that:
- licensing and regulation does not imply endorsement by ASIC;
- does not protect you from investment loss; and
- does not mean that you should disregard the risks involved in trading in retail OTC derivatives.
Jarden Australia is part of the Jarden Group of companies. Jarden Australia’s’ AFS licence and Australian regulation only covers the financial services provided in Australia and does not necessarily cover services provided by other members of the corporate group.
7. Privacy policy
Account set-up cannot be completed until the information you have provided has been verified. The information Jarden Australia collects on this form will be used to process your application and provide services to you. You can view our Privacy Policy here.
8. Other legal risk
Australia is a member state of the United Nations and must implement United Nations Security Council sanctions. It may also implement other international sanctions and impose sanctions of its own. Sanctions can cover various subject matters including financial restrictions, which may have the consequence of meaning we can’t deal with certain persons, entities or currencies. This means that if we become aware that you are such a person or entity, then we may be required to suspend, cancel or refuse you services or close or terminate any account, facility, transaction, arrangement or agreement with you. This may be at a significant cost to you.