Important notice of changes to US Exchange Traded Options (ETO) Product Disclosure Statement (PDS) effective Tuesday, April 30 2019.

Effective from Tuesday, 30 April 2019, there will be some important updates to the US Exchange Traded Options (ETOs) Product Disclosure Statement (PDS).

The terms will be amended as follows:

Updated section

Summary of change

Further information

Trading US Options with us

  • Trading online section updated using simpler language
  • Additional brokerage of options contract updated

Please refer to page 3 of the US ETO PDS.

Options trading, step by step

  • Amount options must be ‘in the money’* to be auto exercised** updated  
  • Settlement period updated

Please refer to page 10 of the US ETO PDS.

Options trading strategies

  • Amount options must be ‘in the money’* to be auto exercised** updated 

Please refer to pages 12 and 13 of the US ETO PDS.

Part B

  • Additional brokerage of options contract updated

Please refer to page 15 of the US ETO PDS.

A copy of the updated US ETO PDS will also be available on www.onlineinvesting.westpac.com.au from 30 April 2019.

We're here to help

If you have any questions, please contact our Global Markets Desk on 1300 757 319 (within Australia) or +61 2 9115 2996 (from outside Australia), 24 hours a day on US trading days. 

Important information

*In the money: Options give buyers the right, but not the obligation, of buying or selling the underlying security at a certain price, known as the ‘strike price’, before a certain date (known as the expiration date). In the money therefore means that a call option's ‘strike price’ is below the market price of the underlying asset, or that the ‘strike price’ of a put option is above the market price of the underlying asset.

**Automatic exercise: A procedure implemented to protect an option holder where the Option Clearing Corporation (OCC) automatically ‘exercises’ (puts into effect) an ‘in the money’ (see above definition).

Published: 18 April 2019