MF Global

This article describes how a client can request a balance conversion on their account balance or an FX conversion.

What is converted?

The balance of your free equity in your account. This is located at the end of your statement as "free eqiuty".

What is free equity?

Initial margins are required by futures exchanges to cover the maximum expected movements in the market for the open positions in your account. The "free equity" is the excess of funds you have in your account or the amount you need to purchase in order to cover your initial margin requirement.

Why should FX balances be converted?

Interest is calculated on the individual balance of each currency in your account, so even if your account is in credit in Australian Dollars (AUD), your account could be in margin deficit in another currency. If so, debit interest would be charged to your account.

How does it work?

MF Global can now automatically convert your foreign currency margin deficit. This will be done by selling AUD and purchasing the relevant currency required.

MF Global will also convert all foreign currency in excess of your initial margin requirements. This will be done by selling the relevant currency and purchasing AUD.

Once your positions are closed, the remaining currency balance will be converted to AUD.

How does this benefit you?

• You will not pay any foreign currency debit interest; and
• You are minimising your currency exposure risk as funds are converted daily, based on the rate that MF Global receives.

What are the next steps?

Fill out the authorisation section of the Automatic Daily Foreign Currency (FX) Conversion form and return it via:

• send an email to your advisor
• or fax to (02) 9247 4067
• or post to MF Global Australia Limited, PO Box N699 Grosvenor Place NSW 1220

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