Disclosure of Transaction Related Information

 202202- V.1.1

Disclosure of Transaction Related Information

The disclosure of transaction related information is applicable when Eddid Securities and Futures Limited (“ESFL”) distributes the following investment products to clients and/or buy/sell the following investment products on behalf of clients.

1. Capacity

A.  Exchange Traded Products

  ESFL shall be acting as an agent of customers for executing orders in exchange traded products.

 B.  Debt Securities and Debt Securities Placement

ESFL shall be acting as an agent when dealing in over-the-counter debt securities and entering into debt securities placing transactions with customers.

 C.  Leveraged Foreign Exchange

ESFL shall be acting as a principal when entering into over-the-counter leveraged foreign exchange contracts with customers.

 D.  Initial Public Offer (“IPO”)

ESFL shall be acting as an agent of customers who subscribe to IPOs.

 E.  Listed Securities Sub-Underwriting Transactions

ESFL shall be acting as a back-to-back principal when entering into sub-underwriting transactions with customers.

 F.  Listed Securities Placement

ESFL shall be acting as an agent of customers when entering into listed securities placing transactions.

 G.  Unlisted Unit Trusts

ESFL shall be acting as an agent of customers who subscribe to, switch or redeem units in unlisted unit trusts.

2. Affiliation

A.  Funds products

Affiliation of ESFL to the product issuer: NO

B.  Other investment products

ESFL may distribute investment products which are issued by product issuers with agent(s) appointed by the product issuer being ESFL or other Eddid Holdings group companies. Customers may refer to the disclosure at the point of sale for information about the affiliation between ESFL and the relevant product issuer for the investment products purchased (if any).

3. Independence

ESFL will not be an independent intermediary whenever:

A. ESFL and/or other Eddid Holdings group companies receive fees, commissions, or any other monetary or non-monetary benefits from any party in return for ESFL (i) distributing investment products (including exchange traded products, unlisted unit trusts and debt securities) to customers; or (ii) offering its customers to participate in transactions (including IPO, placement and sub-underwriting transactions); and/or

B. Such investment products being distributed by the relevant ESFL as mentioned in 3(A)(i) above are issued by ESFL or other Eddid Holdings group companies; OR ESFL or other Eddid Holdings group companies have any role in such transactions mentioned in 3(A)(ii) above.

Otherwise than in the circumstances set out in 3(A) and 3(B) above (which are likely to impair the independence of ESFL to favour any particular investment product (or class thereof), any transaction, any execution venue or any product issuer), ESFL will be an independent intermediary.

4. Complex Products

Investors should exercise caution in relation to complex products. Note that if a complex product is authorized by the Securities and Futures Commission (“SFC”) this does not imply an official recommendation or endorsement by the SFC nor does it guarantee the commercial merits of the product or its performance. Past performance, if any, of a product is not indicative of future performance. Do not invest in a complex product unless you fully understand and are willing to assume the risks associated with it, including (in some cases) the risk that you may lose more than the invested amount.

To learn more about a particular product’s features and associated risks, please refer to the offering documents or other information provided by the issuer (if any) for that product; however, please note that the SFC does not review materials of products it has not authorized and you are advised to exercise caution in relation to any offer. You can also learn more about associated risks by reading the Risk Disclosure Statement in ESFL’s Terms and Conditions.

Set out below is a non-exhaustive list of examples of investment products ESFL has classified as “complex”:

 A. Debt Securities with one or more special features (including, but not limited to, perpetual or subordinated bonds, or those with variable (e.g. step-up or step-down) or deferred interest payment terms, extendable maturity dates, or those which are convertible or

exchangeable or have contingent write down or loss absorption features, or those with multiple credit support providers and structures);

B. Leveraged Foreign Exchange;

C. Synthetic ETFs & Leveraged and Inverse ETFs;

D. Warrants & Callable Bull/Bear Contracts; and

E. Futures & Options.

5. Disclosure of monetary and non-monetary benefits

A. Unlisted Unit Trusts

ESFL receives commission from the product issuer or its agent up to 5% of investment amount upon each subscription and up to 0.6% of asset value annually for the relevant funds products. The amount of such commission may vary from time to time depending on the nature and size of transaction, market demand and condition.

B.  Other investment products

ESFL or its agent may receive a fee or commission from the product issuer or any agent or otherwise make a trading profit when entering into placement or sub-underwriting or bonds transactions with the clients.

ESFL may receive benefits in connection with transactions effected for clients from product issuers or their agents which are not quantifiable at the point of sale, including selling concession, cash rebates or goods and services in the form of soft dollars.

6. Terms and Conditions under which Customers may Receive a Discount of Fees and Charges

In certain circumstances, ESFL may in its discretion consider to give the clients a discount on the fees and charges payable by the clients on a case-by-case basis. In determining whether it is appropriate to give a discount to any client, ESFL will consider a number of factors, including but not limited to transaction size, market condition and costs.