Disclaimer : This website or any services and information on the website are not intended for the solicitation of U.S. clients/investors. www.bcfex.co.uk does not accept clients/investors from the U.S. Nothing contained on this website constitutes a solicitation of offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Not all products will be available to all investors. The products or services of BCFEX Ltd are only offered to clients in those countries and regions with applicable laws and regulations. You should take appropriate advice from a suitably qualified professional adviser in the country in which you reside or do business in order to find out if any restrictions are applicable. You are advised that most services are only available following completion of the BCFEX contractual documentation. BCFEX’s website is translated into various languages for the added convenience of the client. In the event of conflict between the original English website content and any translation of the website into other languages, or any other translated communication by BCFEX, the English version shall take precedence.
Terms & Condition : This agreement is a contract between the Client (as identified in the Client Application Form, (Part A of this Agreement) and BCFEX (the 'Company').
This agreement is a contract between the Client (as identified in the Client Application Form, (Part A of this Agreement) and BCFEX (the 'Company'). It sets out the terms under which BCFEX will provide its services to Clients. Please read it carefully and seek clarification of any points that may be unclear. The terms set out will come into effect, and the rights and obligations of the parties will apply, from the date of signing of this Agreement.
BCFEX deals as principal in Spot Foreign Exchange and Spot Metal Contracts and agrees to provide Services to the Client on the basis of the:
The Client wishes to appoint BCFEX to deal in Spot Foreign Exchange and Spot Metal Contracts on its behalf. In doing so, the Client acknowledges that:
The defined Terms as used in this Agreement are in capitals and are defined in this Clause.
In the Agreement, the following terms, unless otherwise stated, have the following meanings:
Agreement means all the terms, conditions, appendices, representations and warranties contained herein and in any supplementary agreement including BCFEX‟s Client Services Agreement and Disclosure Statement.
Allocation Policy provides that orders will be executed in the order in which they are received; except that client orders will be filled before house trades are filled.
Authorized Person means the Client and any other person who has been authorized in writing by the Client to transact on the Clients account and who may bind the Client under the terms of this Agreement.
Base Currency means the currency in which the relevant account has been denominated and will be US dollars unless otherwise notified.
Business Day means for Spot Foreign Exchange Contracts and Spot Metal Contracts a day on which the relevant underlying exchange rate or commodity is available for dealing. In relation tother services and notices, it means any day (other than a Saturday, Sunday or public holiday) on which banks are open for business in Saint Vincent Grenadines. Client means the person(s) who have executed this document in the Client Services Agreement and have been granted an account with the Company.
Client Application Form means the form given to Clients to apply for an account with BCFEX.
Client Bank Account has the meaning given to it in the Futures Industry (Client Funds) Regulations 1990.
Client Funds has the meaning given to it in the Futures Industry (Client Funds) Regulations 1990.
Client Fund Regulations means the Futures Industry (Client Funds) Regulations 1990.
Collateral means securities or other assets, including money, or any guarantee or indemnity accepted by BCFEX from the Client instead of cash for the purposes of complying with the Client‟s obligations to pay, or as approved by BCFEX as collateral.
Contract means any transaction relating to Spot Foreign Exchange and Spot Metals or any other contracts that may be introduced by BCFEX from time to time or any other agreement which BCFEX may enter into to enable it to fulfill its obligations under such contract.
Contract for Difference (or “CFD”) means an agreement which allows you to make a profit or loss from fluctuations in the price of a CFD. The price of a CFD is based on the price of an underlying asset ("Underlying Asset ") e.g. a commodity on an exchange.
Counterparty means a person or entity that takes the contra position of any Contract, including a bank or financial intermediary, whether in NZ or overseas.
Dealing has the meaning as defined by Section 37 (5) of the Securities Markets Act 1988.
Disclosure Statement means the information required to be disclosed to Clients by investment brokers and advisors in order to comply with the Securities Markets Act 1988.
Discretionary Account means an account where the Client has authorized another person(s) to trade that account on the Clients behalf.
Effective Date means the Date of signing of this Agreement as stated on this Agreement.
End of Day means 5.00 pm New York time.
Futures Contract has the meaning given to that term in Section 37 (1) of the Securities Markets Act 1988.
Futures & Options Exchange means an authorized or registered Exchange for the purpose of trading Futures and/or Options.
Initial margin means the amount required in respect of a Contract entered into by the Client.
Long Position means where a person holds an excess of purchase over sales of the relevant commodity, currency or other investment instrument.
Margin means either an Initial Margin or a Variation Margin
Minimum Equity Balance means the minimum money required in an account to maintain a Position.
Minor means a person under the age of 18 years at time of application.
Saint Vincent Grenadines Exchange Limited is referred to in this document as NZX.
Off-Exchange means a market for trading Contracts that are not executed through a Futures & Options Exchange.
On-Exchange means a market for trading Futures Contracts that are executed through a recognized Futures & Options Exchange.
Order means an instruction to buy or sell Contracts or Securities and includes instructions to amend or cancel a previous instruction(s).
Regulatory Authority means any authority, body or person having responsibility for or in connection with the regulation or supervision of dealing in Futures Contracts or for the enforcement of any other law or regulation applicable to dealing in Futures Contracts.
Regulations means the Futures Industry (Client Funds) Regulations 1990 and any subsequent amendments.
Securities includes securities, stocks, warrants, exchange and non exchange traded funds, bonds, tradable contracts and other negotiable instruments in NZ and overseas.
Securities Commission means the Securities Commission established under Section 9 of the Securities Act 1978.
Short Position means where a person holds excess of sales over purchase of a relevant commodity, currency or investment instrument.
Specified Client Investment has the same meaning as in the Futures Industry (Client Funds) Regulations 1990
Spot means the price that is quoted for immediate (spot) settlement. These are leveraged contracts for an agreed quantity at an agreed rate. The agreed quantity underlying this contract is not deliverable. These contracts are valued at the end of the trading day and reopened the following trading day at the current market price with the resulting profit or loss either debited or credited to the clients account.
Underlying Asset The underlying asset with reference to which the value of a Contract is determined
Variation Margin means the difference between the value of a contract at the time it is made and its value at any later date.
This Agreement takes effect, and the rights and obligations of the parties under this Agreement will apply, on and from the Effective Date and continues unless terminated in accordance with these General Terms and Conditions.
The Client acknowledges that these Terms and Conditions and your Account will continue until you have performed all of your obligations under this Agreement, all positions have been closed out and your account has been terminated in accordance with these General Terms and Conditions.
Both parties agree that the terms of their relationship and any subsequent dealings are subject to and bound by:
the Securities Markets Act 1988 and any other legislation, regulations or Exchange Rules that are applicable; this Agreement
Some of the significant risks include the following:
Leveraged Products. The high degree of leverage that is obtainable in these type of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions.
Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict.
Sometimes markets move so fast that „gapping‟ or „slippage‟ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order.
The placing of contingent orders (such as a stop-loss order) may not always limit a Client‟s losses to the amounts they may want. Conditions may prevent execution of such orders.
Other Factors in the Underlying Market
As the price of the Contract is based upon an Underlying Asset several factors in the Market may also affect an individual’s position. Certain political, governmental or other events may cause the underlying security to be suspended from trading. This may affect BCFEX’s ability to offer our products to Clients, including closing out existing positions.
Where the Market lacks liquidity (because of insufficient trading activity or where order demand at a particular price or for a particular asset in a specific underlying market exceeds supply), this may affect BCFEX’s ability to offer the relevant Contract in sufficient volume to allow a Client to close out a position or open a new position.
Margin calls
If the price moves against you, you may be required, at short notice, to deposit additional margin funds with BCFEX in order to satisfy our Margin Call requirements and maintain your position. This amount may be substantial.
If any Client does not provide those additional funds within the required timeframe, their position may be liquidated at a loss and they will be liable for any shortfall in their account. Positions are marked to market on a daily basis with payments being settled daily to account for market movements.
Minimum balance
If a Client’s account balance falls below the minimum required balance as outlined in this Agreement, BCFEX reserves the right to reduce or close out that Client’s positions. The minimum balance may be varied at BCFEX‟s sole discretion.
Loss caused by spread
If a Client opens a position and closes it before the market has moved favorably, they may still incur a loss to the extent of the spread and any fees and commissions payable. Furthermore, the spread may be larger at the time the Client closes the position than when they opened it.
Liquidation
BCFEX reserves its right not to accept a Clients order request or to close out a position without their agreement in certain circumstances. Please refer to Clause 12 of these Terms and Conditions.
Third Party Supply
Data supplied by third parties may be delayed, incorrect or unavailable. BCFEX is not responsible for provision of those information services nor the consequences if they fail, are delayed or are wrong.
Foreign Exchange exposure
Client accounts are maintained in the currency that Client has nominated (Base Currency).Where a Client deals in a Contract that is in a currency other than their Base Currency, all margins, profits, losses etc relating to that Contract are calculated using the currency in which the Contract is denominated.
For this reason, a Client’s profits and losses may be affected by fluctuations in foreign exchange rates. The conversions of the foreign currency balance of that Client’s account are undertaken automatically each day at End of Day using the Exchange Rate as quoted by BCFEX.
Operational risk
While BCFEX have made every reasonable effort to ensure continuity of services, operational risk such as disruptions to communications, computers, networks or external events may lead to delays in the execution and settlement of a transaction.
Indemnification
Should any Client fail to pay or provide security for amounts payable to BCFEX or fail to perform any obligation as outlined in the Client Agreement, these Terms and Conditions allow BCFEX to take steps to protect our position (including for example the power to close out positions and to charge default interest). Under these Terms and Conditions, the Client also indemnifies BCFEX and its agents, representatives and employees against certain losses and liabilities. BCFEX‟s liability is expressly limited. Please read these Terms and Conditions and our Disclosure Statement carefully to ensure these matters are clear prior to signing any documentation.
Regulatory requirements
As these products are Contracts with BCFEX directly and are not traded on a licensed market or regulated exchange, they are not afforded the same protection as trades undertaken through an exchange or licensed market. There is no Guarantee Fund or equivalent applicable to trading in the OTC market.
Changes to NZ legislation, regulatory or taxation requirements may affect BCFEX's ability to provide our services to the Client and/or mayhave an adverse effect on the Client‟s dealings with BCFEX.
Unless caused by BCFEX’s fraud, willful default or gross negligence, neither we nor any associated company nor any employee shall be liable to the Client:
Unless caused by our fraud, willful default or gross negligence, the Client will upon demand, indemnify us, our associated companies and employees against any costs, damage, losses or liabilities however arising by reason of or in connection with any action taken, not taken, or any transaction entered into or not entered into by BCFEX under this Agreement.
BCFEX agrees to make good any errors identified by the Client; except that:
BCFEX shall not be bound by any transaction which purports to have been made (whether or not confirmed by BCFEX) at a price which:
BCFEX reserves the right to exercise certain discretions in respect of Client trading and Account management. In this regard, BCFEX will consider our commercial objectives, regulatory considerations and ethical obligations as a dealer. These discretions include, but are in no way limited to a right to:
Refuse any application for an Account without cause
Call for funds or security where we consider it would make commercial sense to do so (refer Clause 7.4)
Refuse to accept any trades placed by the Client that we judge to be clearly outside the prevailing market price such that they may be deemed non-market price transactions, whether due to manifest human error or stale/incorrect/broken price feeds. Where we have opened or closed a trade before becoming aware of the price disparity, we may at our absolute discretion either treat that trade as void or accept that trade at the prevailing Market priceDetermine Commission rates and financing charges,
Decline the Client’s instructions or cancel any Order or instruction without reason, where:
BCFEX is not liable for any financial inconvenience or consequence as a result of using such discretions to cancel, limit or refuse an instruction from a Client.
BCFEX does not give financial or taxation advice and strongly recommends that such advice is sought before entering into any agreement or engaging in any trading.
We may provide generic financial advice or market reports to all our Clients. These do not take into account any individual‟s specific circumstances, needs or financial objectives. We will not give advice about whether the Client should open, close or hold a Contract as BCFEX is an execution only broker.
Either party may terminate this Agreement by giving notice in writing to the other. Termination will be effective upon receipt of the notice by the other party in accordance with Clause 24 of this Agreement.Termination does not affect the existing rights and obligations of either party at termination. Upon termination of this Agreement, we will close out all Contracts and close out, abandon or exercise any Contracts not yet exercised, entered into by us for the Client unless earlier advised to transfer these Contracts to another Dealer. The balance in the Client‟s account at termination will be repaid to the Client by bank transfer no later than five business days after this Agreement terminates. We reserve the right to terminate this Agreement immediately and without notice in the event of any abuse of the Services provided, any abuse of our staff, or for any reason as may be deemed reasonable and appropriate by us in respect of our legal and regulatory obligations. BCFEX further reserves the right to suspend this Agreement pending review of our possible subsequent termination and without prior notice to the Client under such circumstances.
Where an Account is held jointly, this Agreement shall bind them jointly and severally and each of those persons is authorized to give instructions in relation to the Account unless BCFEX is otherwise advised in writing.
BCFEX is not required to verify that each Client approves instructions taken and may take instruction and any one of the persons named as Joint Account Holders may act as the Client and may give effective and final discharge of any of BCFEX‟s obligations.
If a Minor applies to become a Client, then either the Minor‟s parent or guardian are required to be a party to this Agreement. Any reference to Client in this Agreement is a reference to the parent or guardian of the Minor.
BCFEX, its subsidiaries, partners and agents recognizes its responsibility, and is committed to, ensuring the privacy of Client information.
The following tax information applies only to NZ residents for tax purposes as defined within the Income Tax Act 2004. This information is general in nature and we recommend that Clients consult their own adviser relating to their specific situation.
Returns to NZ investors are affected by NZ taxation rules under the Income Tax Act 2004. Any gain is likely to be considered assessable income and therefore be subject to tax. Conversely, expenditure will only be deductible if it is:
We strongly recommend that Clients seek independent taxation advice on their trading.
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