JSC Galt & Taggart allows a percentage of the collateral invested in certain ETFs to be used for margin trading activities (Forex, CFDs, Futures and Contract Options trading). See the percentage of collateral that can be used from each ETF.

ETFs used as collateral for margin trading cannot be used to cover realised/unrealised losses.

Certain exchanges do not support Market orders. If a client places a market order in these markets, Galt & Taggart will automatically convert the order to an aggressive Limit order within a certain percentage limit “in the money”.

The Percentage Limit varies between 1% and 4% depending on the exchange and the type of instrument. Please note that it is a client’s responsibility to check if the order is filled in the market after order entry.

If you experience or suspect any errors with your order, you should contact Galt & Taggart immediately.

Exchanges

• American Stock Exchange (AMEX)
• Oslo Stock Exchange (OSE)
• OMX Copenhagen (CSE)
• OMX Helsinki (HSE)
• London International Exchange (LSE_INTL)
• OMX Stockholm (SSE)
• London Stock Exchange (LSE_SETS)

In addition, some of our execution brokers may choose to convert Market orders on certain exchanges into aggressive limit orders 3% “in the money”. This is due to their internal compliance and is intended to protect clients from unintentionally moving the market.

Galt & Taggart will not be responsible for missing fills due to this.

Galt & Taggart supports the placement of market orders while the market is closed. As the market may open at a very different price from where it closed, this could lead to shares being bought for more cash than is available in your account.

To minimize this risk, the system will calculate an additional cash buffer that must be available in order to place market orders to buy shares. Should the order placement be rejected a limit order may be attempted instead as the limit price will provide a maximum purchase price.

In case an order regarding a security is split, and filled partially over a period of more than one day, the total trading costs may increase. The reason for such increase is that the minimum fee may be charged more than one time based on the number of days necessary for the total execution of the order.

Algorithmic orders are available for both ETFs and Single ETF CFDs. Essentially, Algorithmic orders provide clients with the opportunity to trade through various strategies with larger ticket sizes that may otherwise impact the market price. They can also break down an order in smaller bites to avoid showing the full size of their order. This may be of particular interest for clients trading ETFs and Single ETF CFDs outside of the most liquid names.

• VWAP
• TWAP
• With Volume
• Implementation Shortfall
• Pre-Market Limit
• Iceberg
• Reload
• Dark
• Liquidity Seeking
• Market on Close
• Limit on Close

Algorithmic orders are supported markets:

Dividend payments from ETF positions will be credited to the clients account with any applicable standard withholding taxes deducted. Galt & Taggart cannot currently support or offer preferential withholding tax rates that may be available due to residency or legal status.

How much does a securities transfer cost?
The transfer of stocks, ETFs and bonds into Galt & Taggart custody is performed free of charge. Furthermore, Galt & Taggart allows clients to use their stocks, ETFs and bonds portfolio as collateral for margin trading.

When transferring securities out of your account, the following exit fees are charged:

• DK Stocks - EUR 25 per ISIN (max. EUR 100)
• Other Stocks - EUR 50 per ISIN (max. EUR 160)

How long does a securities transfer take?
The timing of securities transfers may vary depending on the counterparty, security and market. In general, you can expect a transfer to be complete within 1 week.

For Hong Kong ETFs, Stamp Duty and other charges apply: 0.108%. Note: Automated trading from 09:30-16:30 with a break between 12:00 - 13:30.

From 1 March 2013 the Italian Financial Transaction Tax (FTT) of 0.10% will go live on all purchases of Italian ETFs and Equity linked securities (i.e. depositary receipts) in listed companies that have a registered office in Italy. Please find here the Ministerial Decree as issued by the Italian Minister of Economy and Finance.

For UK ETFs a Panel for Takeovers and Mergers (PTM) Levy and Stamp Duty may be applicable. Stamp Duty is applied on all buy transactions at a rate of 0.5% of the transaction value. A PTM Levy of GBP 1 is applied to buy and sell transactions where the Gross Value of the trade exceeds GBP 10,000. Please note that for Irish registered ETFs, Stamp Duty is 1% of the transaction value.

The SEC Section 31 fee on US exchange CFD DMA and ETF SELL transactions (where client orders are entered directly into the underlying market) is passed on to Galt & Taggart clients. This fee only applies to US exchanges.

Effective 16 April 2019 the fee will be USD 20.70 per million, increased from the previous USD 13.00 per million.

For more information please read press release published by the U. S. Securities and Exchange Commission.

In US markets, Galt & Taggart consolidates liquidity from a number of sources in addition to the primary exchanges. When there is a delay in the opening of the primary exchange, orders can be filled from these other sources before trading commences on the primary exchange.

Additional ETFs are allocated on the Ex-date.

Cash payment is allocated on Ex-date for value Pay date.

Cash dividends are booked on the Pay date based on the holdings as one day prior to the Ex-date. Dividend payments from ETF positions will be credited to the clients account with any applicable withholding taxes deducted.

The day before a Corporate Action event is scheduled to take effect (the Ex-date), open orders are deleted for certain event types. The following details the rules of behaviour:

For dividends and rights issues, all open orders for the given instrument will be deleted if the change in the market price is calculated to be over 20% due to the Corporate Action event.

The default payment form is cash. However, clients can elect to receive shares. The cash entitlements are booked at pay date based on Ex-Date holdings. The shares entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.

For dividend option events with tradable coupons these will be allocated at ex-date. The default payment is shares. Clients can however elect to receive cash. For dividend options clients will be able to manually insert standing instructions at the individual security level.

The default payment form is cash. However, clients can elect to receive shares. The cash entitlements are booked at pay date based on Ex-Date holdings. The shares entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date. For dividend reinvestments clients will be able to manually insert standing instructions at the individual security level.

For exchange offers, clients holding a position in their portfolio will have the possibility to elect prior to the deadline.

A fractional ETF is less than one full ETF, and can arise as a result of a Corporate Action entitlement calculation. For the following Corporate Actions, Galt & Taggart pays cash compensation for fractions whenever fraction compensation is applicable:

• Stock splits 
• Reverse stock splits 
• Optional dividends on ETF positions 
• Mergers

Holdings in the liquidated company will be removed. Liquidation proceeds, if any, will be allocated.

For mandatory Mergers there are different outcomes:

1. Cash (distributed on Pay-Date)
2. Shares (distributed on Ex-Date)
3. Mix of Cash & Shares (distributed on Ex-date)

For mergers with elections, clients have the possibility to elect prior to the deadline.

Sometimes a Corporate Action involves an instrument that is not tradable online with Galt & Taggart. Under those circumstances, the procedures are as follows: Positions in new instruments that are not tradable online, assigned as a result of a Corporate Action, are booked to the clients account. The instrument will be added to the client account for reporting purposes.

Clients holding the ETF as of Ex-date will be given the possibility to subscribe for new shares. The offer to purchase new shares is not transferable.

Clients holding ETF positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If Galt & Taggart has not received a response from clients by the reply deadline date stipulated by Galt & Taggart, the Bank will if possible, sell the rights on behalf of our clients before they expire. If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason the Bank carries out this action is to prevent rights from being worthless when they expire. For rights issues were a temporary line is paid as a result of the subscription, the temporary line will be moved into the ordinary line via a Pari Passu event.

Cash payment is allocated on Ex-date for value Pay date.

Special and infrequent Corporate Actions that do not come under the descriptions above may occur. Galt & Taggart will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.

Additional ETFs are allocated on the Ex-date for value on the Pay Date.

New ETF positions are allocated on the Ex-date.

Taxes and fees may also occur on other corporate action other than cash dividends such as fee on a ETF dividend or tax on a merger. When such taxes and fees occur Galt & Taggart will debit the client’s account accordingly.

Clients holding ETFs in their portfolio will have the possibility to tender.

Clients holding warrants will have the possibility to exercise their warrant prior to the deadline. Warrants not sold or exercised will lapse worthless.