Effective 26th October, 2015

Calculation

The FX Expiry Margin model calculates the maximum future loss in a given FX option strategy using the current market prices. If there is an unlimited loss either upwards or downwards (spot price limited to 0), we look at the potential exposure at expiry of these intervals and apply spot margin requirement on the entire notional.

If the strategy has both a maximum loss and an unlimited loss downwards and/or upwards, the margin requirement will be the maximum of the three calculations.

In any case, evaluating the potential outcome of the options, the margin requirement will be capped to the absolute maximum potential exposure multiplied by spot margin requirement. This will ensure that we always have a margin requirement smaller than or equal to the margin requirement of an equivalent spot position.

The calculations are done per currency pair and per expiry.

The model allows for netting with spot if the spot is in the same currency cross as the options. The model allocates any available spot to the option strategy (per expiry and nearest expiry have priority), such that the absolute maximum potential exposure at expiry is minimized. Any spot that is left and is not allocated to an expiry will be margined as a spot position. This means that any remaining spot will have single currency netting with other spot currency pairs in the portfolio.

Collateral

For each expiry and currency pair, we evaluate the net value of an option strategy. If the net value of an option strategy for one expiry is positive, the model will deduct this value from the client collateral. This means that the client cannot use the value of the options for margin trading. If the net value of an option strategy for one expiry is negative, there is no collateral deduction.

Example

EURUSD spot is trading at 1.09, and a client is entering a 1 million EURUSD short call spread at strike 1.10 and at strike 1.11 with expiry in two days. The maximum loss is the difference between the strikes, so 1,000,000 x 0.01 = 10k USD. There is no potential unlimited loss downwards or upwards.

The absolute maximum potential exposure at expiry is 1 million, since this will be the case if the short leg of the spread expires in-the-money and the long leg of the spread expires out-of-the-money. So the margin requirement will be the minimum of the maximum loss (10k USD) and the margin requirement for 1 million spot position.

Had EURUSD spot been at 1.105, i.e. having an unrealized loss of 5k, the margin requirement would be 5k USD (maximum future loss).

We are excited to announce that on the 19th of October, your GTS trading platform will be upgraded to the all-new Global TradeStation – the world’s most intuitive multi-asset trading platform – providing you with:

• Smarter technology
• Easier access
• Faster execution

Seize more opportunity with a multi-asset trading platform that offers you a more intuitive trading experience. View market prices on more than 30,000 instruments across FX, CFDs, Futures, Options and Stocks anywhere, anytime on any device – all from a single account.

Previously downloaded apps may experience an automatic update depending on your phone settings.

Lean more about Global TradeStation and sign up to be notified when it goes live here.

DATE: Tuesday September 15, 2015

Due to changing market conditions, the below FX margin requirements will be updated.

For any questions about these changes please contact the Bank by phone, or email, or contact your banker.

DATE: September 1, 2015

As previously communicated, Silverlight chart in DesktopTrader cannot be used in Google Chrome browsers from this month (September 2015).

DATE: September 1, 2015

Global TradeStation Pro has been tested and is officially on the new Windows 10 Operating System.

DATE: September 1, 2015

Stock Options are now available covering all 40 Stocks in the French CAC 40 Index.

Stock Options are ideal for strategic stock trading, allowing you to trade almost any market and are particularly well suited to:

• Leveraged directional plays with a known-loss potential
• Volatility strategies where a stock’s price is expected to move outside a range (either up or down)
• Low-volatility strategies where a stock’s price is not expected to move outside a range
• Hedging existing portfolios
• Revenue enhancing portfolios – writing options against a portfolio to take the premium.

As opposed to warrants, Stock Options offer tighter prices, higher volumes and more transparency. Combination strategies are highly versatile and allow you to trade almost any kind of market you have a view on.

DATE: August 25th 2015

Due to the stablization of economic conditions in Greece, Euro Pacific Bank has adjusted margin rates on the specified instruments below.

Margins will be reviewed periodically as developments in market conditions unfold.

CFD INDEX

FX

For any questions about these changes please contact the Bank by phone, or email, or contact your banker.

DATE: JUNE 30th 2015

In light of recent developments in conjunction with the Greek economic crisis, and its potential to drive market gap risk over the coming weekend (Referendum July 5), clients should be aware that the margins on selected instruments will be increased on Friday July 3 2015 at 18.00 CET/16.00 GMT.

Margins will be reviewed again on Monday July 6 after European markets have opened.

Below selected instruments will be affected.

CFD INDEX

FX

For any questions about these changes please contact the Bank by phone, or email, or contact your banker.