2.1 Principal
2.1.1 In our dealings with you, we will act as principal and not as agent on your behalf. Accordingly, we will be the counterparty to all of your trades.

10.1.12 You must not instruct us to submit an Order to enter into a Contract which would breach or cause us or any other person to breach any Applicable Laws including, without limitation, any law or the Rules in relation to: a) market manipulation, false trading, market rigging, fictitious transactions, black box trading, high frequency trading, scalping, wash trading or matching of Orders;

CLSA Premium primarily takes on market risk to facilitate instant execution of client trades, and therefore market risk limits are generally very conservative.

We do not take proprietary positions based on an expectation of market movements. However, since CLSA Premium does not hedge all client transactions, we may have a net position in any of the markets on which we offer financial products. As such, we have exposure to market risk to the extent that it has a residual un-hedged position.

Currently we hedge all trades back to back with our Group Companies including CLSA Premium Limited and CLSA Premium New Zealand Limited. Our Group Companies cooperate with the following hedging counterparties:
• Finalto (Australia) Pty Ltd;
• Invast Financial Services Pty Ltd;
• Interactive Brokers Limited;
• Saxo Bank A/S