International Trading

What do we do
DJC have strong international broking connections. Primarily these are through one of our major shareholders in WH Ireland Plc. As a result of this association, which has been in place since early 2000 we have built a dealing platform not only into the United Kingdom, but also to most European markets and the USA and Canada.

We are comfortable in the knowledge that our dealer relationships are second to none with strong focus on tailored execution and exemplary service. We pride ourselves on being able to report back to our clients on all order execution in the most timely and efficient manner. We do not consider having to wait until the next day for order execution/confirmation on international trades appropriate for a brokerage model in the 21st century.

How do we do it
We have in place several procedures for international dealing. Our primary requisite is to have all client orders for the international market on our order book at *3pm WST. Our dealing team will pass on the order book to our dealing team in the UK and all instructions with regard to price and volume are generally forwarded prior to the overseas markets opening. If there are any significant announcements made after the orders are placed with our dealers then general practice will see those orders referred back to clients for additional instructions. In certain circumstances where we are working size orders for clients, we generally see our DJC dealers in constant dialogue with the UK dealers and more timely reporting to our clients.

What do you need to do
International clients are required to complete:

• International account opening forms
• Anti Money Laundering declaration
• Collateral Agreement

What other services are there for an International Client?

Research:
We have an extensive network of research houses both here in Australia and abroad. Through this major network we can provide our clients with up to the minute research on most stocks that make up the major international exchanges. Whilst up to now this has been provided to our clients free of charge on an inquiry basis, during early 2010 we are looking to provide this information to our clients via our International Broker relationships.

Corporate opportunities:
S 708 investors have the opportunity to participate in capital raisings both in the Australian market and abroad. Once again through our overseas connections we can provide those members who are interested in diversifying their portfolio and or share exposure risk to overseas markets these such opportunities. Other opportunities are available in the Oil and Gas sector and the Alternative Investment Market (AIM) in which WH Ireland are an active participant.

FAQ!

How do you cover the currency exposure?
DJC have always provided their clients with the ability to hedge their currency exposure at the time of trade. Once we have executed the trade as per our clients instruction we are then aware of the settlement date. Most UK trades by way of example are settled t+ 5 (this can vary from anything between t+1 and t+20 in the rarest circumstance) so we contact our bankers and give them the settlement date and amount and they then fix the forex rate for us at that time.

Obviously there is a cost involved and due to this fact we generally use a cut off trade value of $100,000. We can set the forex on any trade but our experience tells us that by using the spot rate on settlement trades under this amount, the currency fluctuations are generally not material enough to warrant fixing the forex versus the cost.

Certificated Paper versus the CREST system, what are they and how do you settle overseas trades ?
Most markets around the world have done away with certificated paper. There are exceptions such as UK , Canada and the US. Where there are certificated holdings we generally require shareholders to sign additional documentation to release those shares for settlement. Please note this can delay a transaction for a prolonged period of time (up to 20 working days in some instances) so we encourage clients to act early so as to avoid the situation where they can't sell a shareholding (with an unwanted falling share price) through that administration period.

In the United Kingdom they now have CREST which is a system similar to the Australian CHESS system. We can convert shareholdings onto the CREST system within 24 hours (once the paperwork is with our overseas brokers). This will enable our clients to settle their trades within the generally accepted settlement period of t+5.

Do you provide a nominee service for overseas markets?
We use a nominee for the UK market for those clients that require it. This provides additional administration from both DJC and our UK colleagues. To this end, we will generally charge additional fees for the nominee service as agreed between us and the client.

The overseas markets are trading throughout the Australian evening (UK market) and following morning (US market), how do I know what happens with an order for the US market for example?
We generally can confirm UK trades (as they happen) to our clients if they request for us to do so. The US markets are somewhat different in that reporting from the US generally happens at close of trade. Once again for larger orders that require order amendment the DJC dealer is in constant phone contact with the client.

With world stock markets at such a critical juncture, can DJC recommend a portfolio of overseas shares to me?
Under ASX and ASIC regulations we cannot recommend a portfolio to you. As we have experienced brokers in all of the markets that we deal in, we are more than happy to have them provide you with recommendations for specific shares. This will entail you opening an account with our brokers directly and as such incurs additional costs and administration. We are happy to provide you with the costings and administration paperwork upon request.

What happens if I want to place a trade after the 3pm cut-off?
For clients that have been trading with DJC for a period of time we do provide an additional service whereby they can place orders after the designated 3pm cut-off. This is generally for those clients that have an active portfolio in the AIM end of the market and or trade in Dual Listed Companies (DLC's) that not only for example have a listing in the UK but also Australia. We encourage those clients who are active in the DLC market to contact us about the arbitrage opportunities that exist and the correct procedures for successful settlement of such opportunities.