Credit Policy/Agreement
The credit policy is part of the Execution Terms and client agreement.
(b) By availing approved credit, the parties agree that this Credit Agreement forms an integral part of the existing Client Agreement and any other terms that govern the relationship between the parties.
(c) The credit facility is to provide to the Client with Trading Credit to be utilised as additional margin/equity in the Trading Account.
It is therefore agreed as follows:
1.1. The Credit Facility and/or any Trading Credit shall be granted to enable the Client to carry out transactions in one or more financial instruments offered by the Company, provided that the Company is involved in the transaction.
1.2. Temporary Credit may be facilitated by Ellipsys to the Client if he/she has furnished valid proof of transfer of the equivalent amount, to Ellipsys, and will be removed upon receipt of funds. In case the funds fail for any reason to reach the Company's bank account, such credit shall be regarded as a used credit.
1.3. Without prejudice of any other rights the Company might have to remove all or part of a Trading Credit under this Agreement, the Company reserves the right to provide or revoke the Credit Facility or a Trading Credit that is not used to support any Open Positions in the Trading Account, at any time and without notice.
1.4. The Client will be entitled to withdraw only any realized profits generated in the Trading Account. For the avoidance of doubt, the Credit Facility shall only be utilized as additional margin to support Client's trading in Company's product, and may not be withdrawn. The Client hereby authorises the Company to debit the Client’s Trading Account against the clear client funds at any time without notice with the amount representing a credit deficit.
1.5. The Client shall ensure that the Trading Account always has a positive equity Balance greater than the credit facility.
1.6. This Credit Policy/Agreement will be binding upon the parties and their respective successors and assigns
2. Settlement
2.1. The Client undertakes to settle, in full, all outstanding amounts due under the Trading Credit of any utilisation of the Trading Credit (the Settlement). Settlement will be accompanied by appropriate evidence, such as a SWIFT confirmation or any other method as determined by the Company at its sole discretion.
2.2. Settlement will not be subject to a positive or adverse movement in the Open Positions in the Trading Account. The Company will be entitled to maintain or withdraw a positive Balance in a Trading Account, at its discretion, after Settlement.
2.3. If the Client is unable to comply with its Settlement obligations under this clause, it must immediately notify the Company in writing, providing reasons for such delay and formally requesting that the Settlement be postponed to a mutually agreed date or time. The Company, may at its sole discretion, agree to the request or refuse such request and demand Settlement immediately, which the Client is bound to settle, failing which the Company may exercise its rights to debit the Trading Account against the clear funds of the Client.
2.4. The Company will be entitled to close some or all of Client's Open Positions in the Trading Account without notice:
a. if the Client fails to comply with its Settlement obligations;
b. if the Client requests a delay in Settlement that is not agreed by the Company; or
c. If the Client fails to Settle its obligations, the Company reserves the right to revoke the Trading Credit and cancel any Credit Facility without notice.
3. Indemnity
3.1. The Client agrees to indemnify, and keep indemnified, the Company for any losses, costs, claims, liabilities, expenses, fines, demands, proceedings, damages (including direct and indirect damages, either special, consequential, incidental, loss of profits, and/or revenue and/or loss of opportunity) suffered or reasonably incurred by the Company, as a result of the Client not satisfying its obligations under this Credit Agreement or otherwise as per Clients acts or omissions.
3.2. The liability of the Client will not be reduced, discharged or otherwise adversely affected by:
a) an intermediate payment, or discharge in whole or in part of the Payment Obligations; •
b) a variation, extension, discharge, compromise, dealing with, exchange or renewal of any right or remedy which the Company may now, or after the date of this Credit Agreement, have in connection with the Payment Obligations;
c) any act or omission by the Company in taking up or enforcing the indemnity under this clause 4 from or against the Client;
d) a termination, amendment, variation, novation, replacement or supplement of or to this Credit Agreement, 'including, an increase in or extension of the Trading Credit and an addition of new Payment Obligations;
e) a grant of time, waiver or concession by the Company; or
f) the insolvency, bankruptcy, liquidation, administration or winding up, or any incapacity, limitation, disability, discharge by operation of law or change in the constitution, name or style, of the Client or the Company.
3.3. The Company will not be obligated, before taking steps to enforce any of its rights and remedies, to take an action or obtain judgment in a court against the Client.