E-FORM 02742 (10/2019)
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of
the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct
Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing
is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank
of Canada 2019. All rights reserved.
RBC Direct Investing Inc.
RISK DISCLOSURE STATEMENT
FOR FUTURES AND OPTIONS
This brief statement does not disclose all of the risks and other significant aspects of trading in futures and options. In light of the risks, you should undertake such transactions only if you understand the
nature of the contacts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures and options is not suitable for many members of the public.
You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.
FUTURES
1. Effect of "Leverage" or "Gearing"
Transactions in futures carry a high degree of risk. The amount of initial margin is small
relative to the value of the futures contract so that transactions are "leveraged" or
"geared". A relatively small market movement will have a proportionately larger impact
on the funds you have deposited or will have to deposit: this may work against you as
well as for you. You may sustain a total loss of initial margin funds and any additional
funds deposited with the firm to maintain your position. If the market moves against your
position or margin levels are increased, you may be called upon to pay substantial
additional funds on short notice to maintain your position. If you fail to comply with a
request for additional funds within the time prescribed, your position may be liquidated
at a loss and you will be liable for any resulting deficit.
2. Risk reducing Orders or Strategies
The placing of certain orders begin (e.g. "stop-loss" order, where permitted under local
law, or "stop-limit" orders) which are intended to limit losses to certain amounts may not
be effective because market conditions may make it impossible to execute such orders.
Strategies using combinations of positions such as "spread” and "straddle" positions may
be as risky as taking simple "long" or "short" positions.
OPTIONS
3. Variable Degree of Risk
Transactions in options carry a high degree of risk. Purchasers and sellers of options
should familiarize themselves with the type of options (i.e. put or call) which they
contemplate trading and the associated risks. You should calculate the extent to which
the value of the options must increase for your position to become profitable, taking into
account the premium and all transaction costs.
The purchaser of options may offset or exercise the options or allow the options to
expire. The exercise of an option results either in a cash settlement or in the purchaser
acquiring or delivering the underlying interest. If the option is on a future, the purchaser
will acquire a futures position with associated liabilities for margin (see the section of
Futures above). If the purchased options expire worthless, you will suffer a total loss of
your investment which will consist of the option premium plus transaction costs. If you
are contemplating purchasing deep out-of-the-money options, you should be aware that
the chance of such options becoming profitable ordinarily is remote.
Selling ("writing" or "granting") an option generally entails considerably greater risk than
purchasing options. Although the premium received by the seller is fixed, the seller may
sustain a loss well in excess of that amount. The seller will be liable for additional margin
to maintain the position if the market moves unfavourably. The seller will also be
exposed to the risk of the purchaser exercising the option and the seller will be obligated
to either settle the option in cash or to acquire or deliver the underlying interest. If the
option is on a future, the seller will acquire a positioning a future with associated
liabilities for a margin (see the section on Futures above). If the option is "covered" by the
seller holding a corresponding position in the underlying interest or a future or another
option, the risk may be reduced. If the option is not covered, the risk of loss can be
unlimited.
Certain exchanges in some jurisdictions permit deferred payment of the option premium,
exposing the purchaser to liability for margin payments for exceeding the amount of the
premium. The purchaser is still subject to the risk of losing the premium and transaction
costs. When the option is exercised or expires, the purchaser is responsible for any
unpaid premium outstanding at that time.
ADDITIONAL RISKS COMMON TO FUTURES AND OPTIONS
4. Terms and Conditions of Contracts
You should ask the firm with which you deal about the terms and conditions of the
specific futures or options which you are trading and associated obligations (e.g., the
circumstances under which you may become obligated to make or take delivery of the
underlying interest of a futures contract and, in respect of options, expiration dates and
restrictions on the time for exercise). Under certain circumstances the specifications of
outstanding contracts (including the exercise price of an option) may be modified by the
exchange or clearing house to reflect changes in the underlying interest.
5. Suspension or Restriction of Trading and Pricing
Relationships Market conditions (e.g. illiquidity) and/or the operation of the rules of certain
markets (e.g. the suspension of trading in any contract or contract month because of price
limits or "circuit breakers") may increase the risk of loss by making it difficult or impossible
to effect transactions or liquidate/offset positions. If you have sold options, this may
increase the risk of loss.
Further, normal pricing relationships between the underlying interest and the future, and
the underlying interests and the option may not exist. This can occur when, for example,
the futures contact underlying the option is subject to price limits while the option is not.
The absence of an underlying reference price may make it difficult to judge "fair" value.
6. Deposited Cash and Property
You should familiarize yourself with the protections accorded money or other property you
deposit for domestic and foreign transactions, particularly in the event of a firm insolvency
or bankruptcy. The extent to which you may recover your money or property may be
governed by specific legislation or local rules. In some jurisdictions, property which had
been specifically identifiable as your own will be prorated in the same manner as cash for
purposes of distribution in the event of a shortfall.
7. Commission and Other Charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees and
other charges for which you will be liable. These charges will affect your net profit (if any) or
increase your loss.
8. Transactions in Other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a
domestic market, may expose you to additional risk. Such markets may be subject to
regulation which may offer different or diminished investor protection. Before you trade
you should inquire about any rules relevant to your particular transactions. Your local
regulatory authority will be unable to compel the enforcement of the rules of regulatory
authorities or markets in other jurisdictions where your transactions have been effected.
You should ask the firm with which you deal for details about the types of redress available
in both your home jurisdiction and other relevant jurisdictions before you start to trade.
9. Currency Risks
The profit or loss in transactions in foreign currency-denominated contracts (whether they
are traded in your own or another jurisdiction) will be affected by fluctuations in currency
rates where there is a need to convert from the currency denomination of the contract to
another currency.
10. Trading Facilities
Most open-outcry and electronic trading facilities are supported by computer-based
component systems for the order-routing, execution, matching, registration or clearing or
trades. As with all facilities and systems, they are vulnerable to temporary disruption or
failure. Your ability to recover certain losses may be subject to limits on liability imposed by
the system provider, the market, the clearing house and/or member firms. Such limits may
vary; you should ask the firm with which you deal for details in this respect.
11. Electronic Trading
Trading on an electronic trading system may differ not only from trading in an open-outcry
market but also from trading on other electronic trading systems. If you undertake
transactions on an electronic trading system, you will be exposed to risks associated with
the system including the failure of hardware and software. The result of any system failure
may be that your order is either not executed according to your instructions or is not
executed at all. Your ability to recover certain losses which are particularly attributed to
trading on a market using an electronic trading system may be limited to less than the
amount of your total loss.
12. Off-exchange Transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to
effect off-exchange transactions. The firm with which you deal may be acting as your
counterparty to the transaction. It may be difficult or impossible to liquidate an existing
position, to assess the value, to determine a fair price or to assess the exposure to risk. For
these reasons, these transactions may involve increased risks.
Off-exchange transactions may be less regulated or subject to a separate regulatory regime.
Before you undertake such transactions, you should familiarize yourself with applicable
rules.
READ AND KEEP FOR YOUR RECORDS
ORIGINAL SIGNATURE REQUIRED
Page 1 of 4
E-FORM 02742 (10/2019)
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of
the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct
Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing
is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank
of Canada 2019. All rights reserved.
RBC Direct Investing Inc.
OPTIONS TRADING AND MARGIN AGREEMENT
To: RBC Direct Investing Inc. ("RBC Direct Investing®")
In consideration of RBC Direct Investing opening or maintaining one or more accounts for the
customer executing this Agreement (the "Customer"). The Customer agrees to the following
terms and conditions for the operation of each Account.
1. APPLICABLE BY LAWS, CUSTOMS, ETC.
Each transaction executed for the Account will be subject to, and the customer will abide by
the prevailing by-laws, rules, regulations, policies and customs of the Regulatory Authorities.
2. SETTLEMENT, COMMISSIONS AND INTEREST.
Full and timely settlement will be made of each transaction. The Customer will pay to RBC
Direct Investing commissions and other transaction charges in respect of each transaction
or option exercised (including any transaction pursuant to section 8) and interest, calculated
daily and compounded monthly, on outstanding indebtedness. Such commissions and
other charges shall be at RBC Direct Investing's customary rates in the circumstances or as
negotiated from time to time. The interest rate shall be the interest rate designed from time
to time by RBC Direct Investing to its branches as being its effective rate for determining
interest on debit balances. The Customer waives notices of all changes in such rates.
3. OPERATION OF THE ACCOUNT.
(a) RBC Direct Investing will credit to the Account any interest, dividends or other monies
received in respect of Securities held in the Account and any monies (net of all charges)
received as proceeds from the sale or other disposition of Securities from the Account, and
will debit to the Account any amounts owing, including interest, by the Customer to RBC
Direct Investing pursuant to this Agreement. RBC Direct Investing will maintain a record of
receipts and deliveries of Securities and the Customer's resulting positions in the Account.
(b) For the purpose of this Agreement "indebtedness" at any time means the indebtedness
of the Customer to RBC Direct Investing represented by the debit balance, if any, of the
Account at the time.
4. PAYMENT OF INDEBTEDNESS.
The Customer will promptly pay indebtedness when due except to the extent covered by a
margin facility.
5. MARGIN.
RBC Direct Investing will open or maintain the Account and grant a margin facility to the
Customer provided that RBC Direct Investing may, without notice, at any time and from time
to time;
(a) reduce or cancel any margin facility made available to the Customer or refuse to grant
any additional margin facility to the Customer; or
(b) require the Customer to provide margin in addition to the margin requirement of the
Regulatory Authorities.
The Customer acknowledges that for certain option strategies producing a credit, the
Regulatory Authorities may require significant additional margin. The customer will provide
RBC Direct Investing with any margin which is requested by RBC Direct Investing and will
promptly pay any Indebtedness due as a result of any reduction or cancellation of any
margin facility.
6. PLEDGE OF SECURITIES.
As continuing collateral security for the payment of any Indebtedness, the customer hereby
pledges to RBC Direct Investing all of the Customer's Securities which may now or hereafter
be held by RBC Direct Investing, whether or not such Indebtedness relates to the Securities
pledged.
7. USE OF COLLATERAL BY RBC DIRECT INVESTING.
So long as any indebtedness remains unpaid, RBC Direct Investing is hereby authorized to
the extent permitted by law, without notice, to use at any time and from time to time the
Customer's Securities in the conduct of RBC Direct Investing's business, including the right
to:
(a) combine any of the Customer's Securities with the property of RBC Direct Investing or
other customers or both;
(b) pledge any of the Customer's Securities which are held in RBC Direct Investing's
possession as security for its own indebtedness;
(c) loan any of the Customer's Securities to RBC Direct Investing for its own purposes; or
(d) use any of the Customer's Securities for making delivery against a sale, whether a short
sale or otherwise and whether such sale is for the Account or the account of any other RBC
Direct Investing's customers.
8. ELIMINATION OR REDUCTION OF INDEBTEDNESS BY RBC DIRECT INVESTING IF:
(a) the Customer fails to pay any Indebtedness when due;
(b) RBC Direct Investing deems the margin held by it to be insufficient for its protection;
(c) On or before any settlement date the Customer fails to provide to RBC Direct Investing
any required Securities or certificates in acceptable delivery form; or
(d) The Customer fails to comply with any other requirement contained in this Agreement;
then, in addition to any other right or remedy to which RBC Direct Investing is entitled, RBC
Direct Investing may at any time and from time to time without notice or demand to the
Customer:
(e) Apply monies held to the credit of the Customer in any other account with RBC Direct
Investing to eliminate or reduce Indebtedness;
(f) Sell, contract to sell or otherwise dispose of any or all of the Securities held by RBC Direct
Investing for the Customer and apply the net proceeds therefrom to eliminate or reduce
Indebtedness;
(g) Purchase or borrow any Securities necessary to cover short sales or any other sales made
on the Customer's behalf in respect of which delivery or certificates in
an acceptable
delivery form has not been made; or
(h) Cancel any outstanding orders.
Such rights may be exercised separately, successively or concurrently. RBC Direct Investing
shall not be required by this Agreement to exercise any such rights nor shall it be required to
exercise any right prior to exercising any other right. The failure to exercise any or all of such
rights of the granting of any indulgence shall not in any way limit, reduce or discharge any
Indebtedness or part thereof. Any such sales or purchases for the Account may be made upon
any exchange or market or at a public or private sale upon such terms and in such manner as
RBC Direct Investing deems advisable. If demand is made or notice given to the Customer by
RBC Direct Investing, it shall not constitute a waiver of any of RBC Direct Investing's rights to
act hereunder without demand or notice. Any and all expenses (including any legal expenses)
reasonably incurred by RBC Direct Investing, in connection with exercising any right pursuant
to this section 8 may be charged to the Account. The Customer acknowledges that the
Customer shall remain liable to RBC Direct Investing for any deficiency remaining following
the exercising by RBC Direct Investing of any or all of the foregoing rights and that the rights
which RBC Direct Investing is entitled to exercise pursuant to this section are reasonable and
necessary for its protection having regard to the nature of securities markets, including in
particular, their volatility.
9. OPTION TRADING.
With respect to any trading for the Account in options:
(a) Rights of RBC Direct Investing - RBC Direct Investing may from time to time:
(i) reject any order placed by the Customer
(ii) act through its market maker or options attorney as principal on the other side of any
transaction executed for the Customer;
(iii) require any transaction to be on a cash-only basis, particularly during the last 10 days
prior to expiry of an option;
(iv) limit or restrict short positions of, or short sales by, the Customer;
(v) limit or restrict the timing by which options orders or exercise instructions must be
placed; or
(vi) disclose the Customer's trading and positions to any responsible exchange or
clearing corporation.
(b) Customer Obligations. The Customer will:
(i) whether acting alone or in concert with others, comply with the position and exercise
limits set by any relevant exchange or clearing corporation; and
(ii) give RBC Direct Investing timely instructions regarding the exercise or disposition of
any option position.
(c) Amendments to Rules. The customer acknowledges that rules may be enacted, amended
or repealed by any relevant exchange or clearing corporation which will affect existing
positions or subsequent transactions.
(d) Exercise Assignment Notices. The Customer acknowledges that exercise assignment
notices are allocated by the relevant clearing corporation at any time during the day. RBC
Direct Investing will allocate such notices when received on a "first in, first out" basis unless
the customer is notified otherwise by prior written notice. RBC Direct Investing is not
responsible for any delay with respect to the assignment by the clearing corporation or the
receipt by RBC Direct Investing of such notices. The Customer confirms that the Customer will
accept an allocation on this basis.
(e) Liability of RBC Direct Investing. Errors or omissions with respect to any transaction for the
Account which are caused by RBC Direct Investing will be adjusted by RBC Direct Investing.
RBC Direct Investing will not be liable to the Customer in any way for errors or omissions
caused by persons, or by conditions, over which RBC Direct Investing has no control.
(f) Instructions and Absence of Instructions. The accountholder will instruct RBC Direct
Investing regarding any option transaction by no later than 3:30 p.m. Eastern time on the last
trading day of the option. If the last day of trading of the option occurs on a day where the
market closes early, the accountholder will instruct RBC Direct Investing by no later than thirty
(30) minutes before the market closes.
If the accountholder fails to give RBC Direct Investing timely instruction, then RBC Direct
Investing may take any action with respect to an option that it in its sole discretion
determines should be taken, including but not limited to: (i) exercising, buying or selling any
valuable option on behalf of the accountholder in which case the accountholder will pay any
resulting transaction costs; and (ii) exercising for the account and risk of the accountholder,
buying, selling or closing out any expiring valuable option.
(g) Writing Covered Options. If the Customer is authorized to write (sell) covered Call options,
then the Customer must have the underlying Securities covered by any such option in the
Account, or an acceptable escrow receipt made available to RBC Direct Investing evidencing
ownership of such Securities and their availability to RBC Direct Investing upon exercise of the
option, at the time of writing such options. The Customer will not sell or withdraw from the
Account such Securities or any Securities accruing thereto during the term of such options
and acknowledges that RBC Direct Investing may prohibit the withdrawal from the Account
of any cash dividends or other cash distributions accruing thereon during the term of such
options.
10. HOLDING AND RETURN OF SECURITIES.
RBC Direct Investing may hold the Customer's Securities at its head office or any of its
branches or at any other location where it is customary for RBC Direct Investing to keep its
Securities and RBC Direct Investing's responsibilities to the Customer for so holding the
Customer's Securities shall be limited to the same degree of care exercised by RBC Direct
Investing in the custody of its own Securities. Certificates for Securities for the same issue and
for the same aggregate amounts may be delivered to the Customer in lieu of those originally
deposited by the Customer.
11. FREE CREDIT BALANCES
Any monies held by RBC Direct Investing from time to time to the Customer's credit are
payable on demand. Except to the extent required by law, such monies need not be
segregated and may be used by RBC Direct Investing in the ordinary conduct of its business.
The Customer acknowledges that the relationship of the Customer and RBC Direct Investing
with respect to such monies is one of debtor and creditor only.
READ AND KEEP FOR YOUR RECORDS
Page 2 of 4
E-FORM 02742 (10/2019)
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of
the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct
Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing
is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank
of Canada 2019. All rights reserved.
RBC Direct Investing Inc.
OPTIONS TRADING AND MARGIN AGREEMENT
12. TRANSFER TO OTHER ACCOUNTS
RBC Direct Investing may at any time and from time to time take any monies or securities in
the Account and any proceeds from the sale or other disposition of such Securities to pay or
cover any obligations of the Customer to RBC Direct Investing including obligations of the
Customer in respect of any other account with RBC Direct Investing whether such account is
a joint account or is an account guaranteed by the Customer.
13. DECLARATION OF SHORT SALES
Whenever the Customer orders a short sale, the Customer will declare it as a short sale.
14. GOOD DELIVERY OF SECURITIES
Except for any declared short sale, the Customer will not order any sale or other disposition
of any Securities not owned by the Customer or of which the Customer will be unable to
make delivery in acceptable delivery form on or before the settlement date.
15. CUSTOMER INFORMATION
The Customer will from time to time advise RBC Direct Investing if the Customer acquires a
controlling interest in or otherwise becomes an insider of any reporting issuer.
16. ACCOUNT STATEMENTS
Every confirmation, statement or other communication sent by RBC Direct Investing to the
Customer shall be deemed to have been acknowledged as correct, approved and consented
to by the Customer unless RBC Direct Investing shall have received written notice to the
contrary within fifteen days after it is sent to the Customer.
17. COMMUNICATION TO THE CUSTOMER
Any notice or communication to the Customer may be given by prepaid mail, facsimile,
telegraph or telex to any address of record of the Customer with RBC Direct Investing, or
may be delivered personally to the Customer or to any such address of record and shall be
deemed to have been received, if mailed, on the second business day after mailing or, if sent
by facsimile, telegram or telex, on the day sent or, if delivered, when delivered. Nothing in
this section shall be interpreted as requiring RBC Direct Investing to give any notice to the
Customer which is not otherwise required to be given by RBC Direct Investing.
18. ACKNOWLEDGEMENT
The Customer acknowledges receipt of a copy of, and agrees to the terms and conditions of,
the Account Opening Application and the Operation of Account Agreement. The terms of
this Agreement shall prevail in case of inconsistency with such terms and conditions.
19. CAPACITY
The Customer, if a married woman, represents that she is not a “married woman not
separate as to property” under the laws of Quebec (if she is, her husband must also sign this
Agreement). The Customer, if a corporation, represents that it has the power and capacity to
enter into this Agreement and to effect the transactions contemplated herein and that the
execution and delivery of this Agreement have been duly authorized.
20. GENERAL
(a) This Agreement expresses the complete understanding between the Customer and RBC
Direct Investing and none of the terms and conditions of this Agreement may be waived or
changed without the approval in writing of the Customer and a duly authorized officer of
RBC Direct Investing. If any statute or any statutory regulation or any by-law, rule, regulation,
policy or custom of the Regulatory Authorities is enacted, made, amended or otherwise
changed with the result that any term or condition of this Agreement is, in whole or in part,
invalid, then such term or condition will be deemed to be varied or superseded to the extent
necessary to give effect to such statute, regulation, by-law, rule, policy or custom. Any term
or condition of this Agreement which notwithstanding any such variation is invalid shall not
invalidate the remaining terms and conditions hereof.
(b) This Agreement shall enure to the benefit of and shall be binding upon RBC Direct
Investing and the Customer and their respective personal representatives, heirs, successors
and assigns. This Agreement shall survive and remain in effect notwithstanding any
incidental, temporary or intermittent closing out, reopening or renumbering of any Account.
(c) In this Agreement where the singular is used, it shall include the plural.
(d) It is the express wish of the parties that this agreement and all documents, notices and
other communication relating to the operation of the Account be in English. Il est de la
volonté expresse des parties que ce contrat et tous les documents, avis et autres
communications qui concernent l'opération du Compte soient rédigés en langue anglaise.
(e) The headings used in this Agreement are for convenience of reference only and shall not
in any way affect the interpretation of this Agreement.
(f) This Agreement shall be construed in accordance with the laws of the jurisdiction in which
the Customer's Account is maintained or, where the Customer has more than one Account,
this Agreement shall be construed separately for each Account in accordance with the laws of
the jurisdiction on which the Account is maintained.
(g) Whenever this Agreement entitles RBC Direct Investing to alternative courses of action,
RBC Direct Investing shall be entitled to choose any, none or all such alternatives in its sole
and unfettered discretion.
21. EFFECTIVE TIME
This Agreement will be effective and binding upon the Customer and RBC Direct Investing for
option trading only after approval by RBC Direct Investing has been given for the granting of
any margin facility from the time at which RBC Direct Investing first acts upon the instructions
of the Customer.
22. DEFINED TERMS
For the purpose of this Agreement:
(a) "Securities" includes shares, share certificates, scrip certificates, deposit receipts, warrants,
rights, bonds, debentures, notes and any other securities of any kind whatsoever,
commodities and futures contracts, options on securities and options on commodities and
futures contracts.
(b) « Regulatory Authorities » means any relevant securities commission, exchange, market,
clearing corporation or association of brokers or dealers; and
(c) "RBC Direct Investing Approval" means the approval in writing given on behalf of RBC
Direct Investing by any one of the following persons: RBC Direct Investing's qualified local
Branch Manager, the Designated Registered Options Principal of RBC Direct Investing or any
of his or her alternates, or any designated director of RBC Direct Investing.
23. CERTIFICATION BY CUSTOMER
(a) the Customer has read and understood this Agreement and acknowledges receipt of a
copy of this Agreement and the Risk Disclosure Statement for Futures and Options; and
(b) the Customer is aware of the nature of the risks involved in both the purchase and
the writing of options, whether or not undertaken in combination with the purchase or
sale of other options or securities, understands the rights and obligations associated
with put and call option contracts and is financially able to assume such risks and to
sustain any losses resulting from such trading.
ADDITIONAL INFORMATION (Please print clearly in large block letters)
1. Do you have past experience trading options? Yes No
2. Do you plan to trade options with other brokers?
Yes No
RBC Direct Investing Account Number
(An options position established with one Member firm may not be closed out through another Member firm)
CUSTOMER NAME
NO. AND STREET
CITY
PROVINCE POSTAL CODE
TELEPHONE NUMBER (DAY)
DATE
X
X
24. ACCOUNT APPROVAL. The Customer is approved to buy or sell (closing sales only) options and write covered call options, The Customer may NOT write uncovered options or covered put options;
engage in spreads combinations or straddles; write options against convertible securities; nor buy or sell futures.
Complete and Return to RBC Direct Investing.
RBC DIRECT INVESTING USE
CUSTOMER SIGNATURE
CUSTOMER SIGNATURE
RBC DIRECT INVESTING AUTHORIZED NAME RBC DIRECT INVESTING AUTHORIZED SIGNATURE DATE (DD/MM/YYYY)
Page 3 of 4
E-FORM 02742 (10/2019)
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of
the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct
Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing
is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank
of Canada 2019. All rights reserved.
RBC Direct Investing Inc.
OPTIONS TRADING AND MARGIN AGREEMENT
12. TRANSFER TO OTHER ACCOUNTS
RBC Direct Investing may at any time and from time to time take any monies or securities in
the Account and any proceeds from the sale or other disposition of such Securities to pay or
cover any obligations of the Customer to RBC Direct Investing including obligations of the
Customer in respect of any other account with RBC Direct Investing whether such account is
a joint account or is an account guaranteed by the Customer.
13. DECLARATION OF SHORT SALES
Whenever the Customer orders a short sale, the Customer will declare it as a short sale.
14. GOOD DELIVERY OF SECURITIES
Except for any declared short sale, the Customer will not order any sale or other disposition
of any Securities not owned by the Customer or of which the Customer will be unable to
make delivery in acceptable delivery form on or before the settlement date.
15. CUSTOMER INFORMATION
The Customer will from time to time advise RBC Direct Investing if the Customer acquires a
controlling interest in or otherwise becomes an insider of any reporting issuer.
16. ACCOUNT STATEMENTS
Every confirmation, statement or other communication sent by RBC Direct Investing to the
Customer shall be deemed to have been acknowledged as correct, approved and consented
to by the Customer unless RBC Direct Investing shall have received written notice to the
contrary within fifteen days after it is sent to the Customer.
17. COMMUNICATION TO THE CUSTOMER
Any notice or communication to the Customer may be given by prepaid mail, facsimile,
telegraph or telex to any address of record of the Customer with RBC Direct Investing, or
may be delivered personally to the Customer or to any such address of record and shall be
deemed to have been received, if mailed, on the second business day after mailing or, if sent
by facsimile, telegram or telex, on the day sent or, if delivered, when delivered. Nothing in
this section shall be interpreted as requiring RBC Direct Investing to give any notice to the
Customer which is not otherwise required to be given by RBC Direct Investing.
18. ACKNOWLEDGEMENT
The Customer acknowledges receipt of a copy of, and agrees to the terms and conditions of,
the Account Opening Application and the Operation of Account Agreement. The terms of
this Agreement shall prevail in case of inconsistency with such terms and conditions.
19. CAPACITY
The Customer, if a married woman, represents that she is not a “married woman not
separate as to property” under the laws of Quebec (if she is, her husband must also sign this
Agreement). The Customer, if a corporation, represents that it has the power and capacity to
enter into this Agreement and to effect the transactions contemplated herein and that the
execution and delivery of this Agreement have been duly authorized.
20. GENERAL
(a) This Agreement expresses the complete understanding between the Customer and RBC
Direct Investing and none of the terms and conditions of this Agreement may be waived or
changed without the approval in writing of the Customer and a duly authorized officer of
RBC Direct Investing. If any statute or any statutory regulation or any by-law, rule, regulation,
policy or custom of the Regulatory Authorities is enacted, made, amended or otherwise
changed with the result that any term or condition of this Agreement is, in whole or in part,
invalid, then such term or condition will be deemed to be varied or superseded to the extent
necessary to give effect to such statute, regulation, by-law, rule, policy or custom. Any term
or condition of this Agreement which notwithstanding any such variation is invalid shall not
invalidate the remaining terms and conditions hereof.
(b) This Agreement shall enure to the benefit of and shall be binding upon RBC Direct
Investing and the Customer and their respective personal representatives, heirs, successors
and assigns. This Agreement shall survive and remain in effect notwithstanding any
incidental, temporary or intermittent closing out, reopening or renumbering of any Account.
(c) In this Agreement where the singular is used, it shall include the plural.
(d) It is the express wish of the parties that this agreement and all documents, notices and
other communication relating to the operation of the Account be in English. Il est de la
volonté expresse des parties que ce contrat et tous les documents, avis et autres
communications qui concernent l'opération du Compte soient rédigés en langue anglaise.
(e) The headings used in this Agreement are for convenience of reference only and shall not
in any way affect the interpretation of this Agreement.
(f) This Agreement shall be construed in accordance with the laws of the jurisdiction in which
the Customer's Account is maintained or, where the Customer has more than one Account,
this Agreement shall be construed separately for each Account in accordance with the laws of
the jurisdiction on which the Account is maintained.
(g) Whenever this Agreement entitles RBC Direct Investing to alternative courses of action,
RBC Direct Investing shall be entitled to choose any, none or all such alternatives in its sole
and unfettered discretion.
21. EFFECTIVE TIME
This Agreement will be effective and binding upon the Customer and RBC Direct Investing for
option trading only after approval by RBC Direct Investing has been given for the granting of
any margin facility from the time at which RBC Direct Investing first acts upon the instructions
of the Customer.
22. DEFINED TERMS
For the purpose of this Agreement:
(a) "Securities" includes shares, share certificates, scrip certificates, deposit receipts, warrants,
rights, bonds, debentures, notes and any other securities of any kind whatsoever,
commodities and futures contracts, options on securities and options on commodities and
futures contracts.
(b) « Regulatory Authorities » means any relevant securities commission, exchange, market,
clearing corporation or association of brokers or dealers; and
(c) "RBC Direct Investing Approval" means the approval in writing given on behalf of RBC
Direct Investing by any one of the following persons: RBC Direct Investing's qualified local
Branch Manager, the Designated Registered Options Principal of RBC Direct Investing or any
of his or her alternates, or any designated director of RBC Direct Investing.
23. CERTIFICATION BY CUSTOMER
(a) the Customer has read and understood this Agreement and acknowledges receipt of a
copy of this Agreement and the Risk Disclosure Statement for Futures and Options; and
(b) the Customer is aware of the nature of the risks involved in both the purchase and
the writing of options, whether or not undertaken in combination with the purchase or
sale of other options or securities, understands the rights and obligations associated
with put and call option contracts and is financially able to assume such risks and to
sustain any losses resulting from such trading.
ADDITIONAL INFORMATION (Please print clearly in large block letters)
1. Do you have past experience trading options? Yes No
2. Do you plan to trade options with other brokers?
Yes No
RBC Direct Investing Account Number
(An options position established with one Member firm may not be closed out through another Member firm)
CUSTOMER NAME
NO. AND STREET
CITY
PROVINCE POSTAL CODE
TELEPHONE NUMBER (DAY)
DATE
X
X
24. ACCOUNT APPROVAL. The Customer is approved to buy or sell (closing sales only) options and write covered call options, The Customer may NOT write uncovered options or covered put options;
engage in spreads combinations or straddles; write options against convertible securities; nor buy or sell futures.
KEEP FOR YOUR RECORDS.
RBC DIRECT INVESTING USE
CUSTOMER COPY
CUSTOMER SIGNATURE
CUSTOMER SIGNATURE
RBC DIRECT INVESTING AUTHORIZED NAME RBC DIRECT INVESTING AUTHORIZED SIGNATURE DATE (DD/MM/YYYY)
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