Regulations: protection of client funds

Client money

Important Information:

• Retail client money is held in segregated client bank accounts

• CMC Markets does not use retail client money towards margins with its hedging counterparties

• CMC Markets Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO). CFDs are distributed in Canada by CMC Markets Canada Inc. acting as principal.

As a client, are my funds segregated?

Retail client money is held separately from CMC Markets’ own funds so that under property, trust and insolvency law, client money is protected and therefore unavailable to general creditors of the firm, if the firm fails.

When you open a trading account with CMC Markets, you will be categorized as a retail/private client. Unless you are informed of a different categorization and explicitly consent to the “title transfer” of your funds, your money is treated as retail/private client money.

Where does CMC Markets hold segregated client money?

We hold retail client funds in segregated bank accounts with a Canadian bank. This account is opened and maintained in the name of CMC Markets Canada Inc.

How does CMC Markets segregate my funds?

Funds deposited by our Canadian retail clients are held in segregated bank accounts. When funds are segregated, the cash held with a bank does not belong to the firm but to the clients of the firm, and it will be held in a way that enables it to be identified as such, and any charges, liens or rights of set-off or retention over the cash are waived.

CMC Markets performs daily client money reconciliations in accordance with CIRO requirements. This process ensures that funds held in segregated bank accounts always accurately reflect retail client assets. The full value of a client trading account is treated as client money. CMC Markets’ client money controls and processes are audited annually by our statutory auditors (Deloitte) and the results are reported to CIRO. Internal audits and reviews are also undertaken periodically, which are overseen by independent Non-Executive Directors.

What happens to my money if CMC Markets goes into liquidation?

In the event of insolvency (known as primary pooling), retail clients would have their share of segregated money returned, minus the administrators’ costs in handling and distributing these funds.

What happens to my money if a bank holding client money on behalf of CMC Markets goes into liquidation?

In the event of a insolvency (known as secondary pooling), losses would be shared by clients in proportion to the share of funds held with a bank which has failed.