Basisprospekt [ 2010 ] - Interactive Brokers Financial Products S.A.

Transcription

This document comprises a base prospectus with respect to different categories of securities pursuant
to Article 22(6) of the Commission Regulation (EC) No. 809/2004 of 29 April 2004 (the Prospectus
Regulation) containing non-equity securities within the meaning of No. 4 of Article 22 (6) of the
Prospectus Regulation (EC) (the Base Prospectus).
Base Prospectus
25 March 2010
Interactive Brokers Financial Products S.A.
a Luxembourg Joint Stock Company
as Issuer
Warrant and Certificate Programme (the Programme)
unconditionally and irrevocably guaranteed as to payment and delivery obligations by
IBG LLC
a Connecticut, U.S.A. Limited Liability Company
as Guarantor
Under this Programme, Interactive Brokers Financial Products S.A. (the Issuer) may from time to time
issue warrants (the Warrants) and certificates (the Certificates) (as specified in the relevant Final
Terms) (together the Derivative Securities) in each case guaranteed (such guarantee, as amended
or restated from time to time, the Guarantee) by IBG LLC (the Guarantor ).
The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) as Competent Authority under the
Prospectus Directive (as defined herein) has approved this Base Prospectus pursuant to § 13
paragraph (1) sentence 2 of the German Securities Prospectus Act (Wertpapierprospektgesetz), which
requires the scrutiny of the Base Prospectus in relation to its completeness, coherence and
comprehensibility.
This document contains the binding English language version of the Base Prospectus, including a
German language translation of the Summary Note.
The Issuer may request BaFin to provide competent authorities in other host Member States within the
European Economic Area with a certificate of approval attesting that this Base Prospectus has been
drawn up in accordance with the German Securities Prospectus Act which implements the Prospective
Directive into German law.
This Base Prospectus and the relevant Final Terms together constitute the complete prospectus for
the relevant series of the Derivative Securities offered.
No person is or has been authorised to give any information or to make any representations, other
than those contained in this Base Prospectus, in connection with the Programme or the issue and sale
of the Derivative Securities and, if given or made, such information or representations must not be
relied upon as having been authorised by the Issuer. Neither the delivery of this Base Prospectus nor
any sale made hereunder shall, under any circumstances, create any implication that the information
herein is correct as of any time subsequent to the date hereof (except that the Issuer will publish a
supplement to this Base Prospectus if and when required pursuant to applicable law in the event of
certain material changes occurring subsequent to the publication of this Base Prospectus in
accordance with § 16 German Securities Prospectus Act).
Neither this Base Prospectus nor any other information supplied in connection with the Programme or
any Derivative Securities should be considered as a recommendation by the Issuer or any of the
Dealers that any recipient of this Base Prospectus or any recipient of any other information supplied in
connection with the Programme or any Derivative Securities should purchase any Derivative
Securities. Each investor contemplating purchasing any Derivative Securities should make its own
independent investigation of the financial condition and affairs, and its own appraisal of the
creditworthiness, of the Issuer.
Complete information about the Issuer and the Derivative Securities offered would be available only
when the Base Prospectus is read together with the relevant Final Terms, which are not yet contained
in this document but which will be presented and published as a separate document. All capitalized
terms not defined in this Base Prospectus shall have the meaning ascribed to them in the relevant
Final Terms.
Application may, in the future, be made for inclusion of the Derivative Securities in an alternative
segment (Freiverkehr) of any Stock Exchange in Germany or on an equivalent market of a Stock
Exchange in any other Member State within the European Economic Area, or the Derivative Securities
may not be so listed or so traded at all, in each case as specified in the relevant Final Terms.
The Derivative Securities and the Guarantee have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the Securities Act), or with any securities regulatory authority of
any state or other jurisdiction of the United States, and trading in the Derivative Securities has not
been approved by the U.S. Commodity Futures Trading Commission under the U.S. Commodity
Exchange Act, as amended. The Derivative Securities will be issued in bearer form and are subject to
certain U.S. tax law requirements. The Derivative Securities may not be offered, sold or delivered
within the United States or, to or for the account or benefit of, any U.S. Person (as defined in the U.S.
Internal Revenue Code of 1986, as amended, and regulations thereunder). The Derivative Securities
are being offered and sold outside the United States to non-U.S. Persons pursuant to Regulation S
under the Securities Act of 1933 (Regulation S) and may not be legally or beneficially owned at any
time by any U.S. Person except in certain transactions exempt from the registration requirements of
the Securities Act.
In case of interests which are initially represented in a Temporary Global Note, these interests will be
exchangeable, in whole or in part, for interests in a Permanent Global Note on the day falling 40 days
after the relevant issue date (the Exchange Date), upon certification as to non-U.S. beneficial
ownership.
Arranger and Dealer
Timber Hill (Europe) AG
The Base Prospectus has been filed with the Competent Authority and has been published on the
website of the Issuer (www.ibfp.com).
This Base Prospectus is valid for a period of 12 months from the date of its publication.
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TABLE OF CONTENTS
1
SUMMARY .....................................................................................................................................5
1.1 SUMMARY OF RISK FACTORS .........................................................................................5
1.2 SUMMARY OF RISKS RELATING TO THE GUARANTOR AND THE ISSUER................5
1.3 SUMMARY OF RISKS RELATING TO THE DERIVATIVE SECURITIES ..........................8
1.4 SUMMARY OF THE DESCRIPTION OF THE ISSUER ................................................... 17
1.5 SUMMARY OF THE DESCRIPTION OF THE GUARANTOR ......................................... 22
1.6 SUMMARY OF THE DESCRIPTION OF THE DERIVATIVE SECURITIES .................... 30
1.7 SUMMARY OF THE DESCRIPTION OF THE PROGRAMME ........................................ 30
2
DEUTSCHE ÜBERSETZUNG DER ZUSAMMENFASSUNG .................................................... 33
2.1 ZUSAMMENFASSUNG DER RISIKOFAKTOREN .......................................................... 33
2.2 ZUSAMMENFASSUNG DER MIT DER GARANTIN UND DER EMITTENTIN ...............
VERBUNDENEN RISIKEN ............................................................................................... 34
2.3 ZUSAMMENFASSUNG DER MIT DEN DERIVATIVEN WERTPAPIEREN ...................
VERBUNDENEN RISIKEN ............................................................................................... 37
2.4 ZUSAMMENFASSUNG DER BESCHREIBUNG DER EMITTENTIN .............................. 47
2.5 ZUSAMMENFASSUNG DER BESCHREIBUNG DER GARANTIN ................................. 52
2.6 ZUSAMMENFASSUNG DER BESCHREIBUNG DER DERIVATIVEN WERTPAPIERE 61
2.7 ZUSAMMENFASSUNG DER BESCHREIBUNG DES PROGRAMMES ......................... 62
3
RISK FACTORS.......................................................................................................................... 64
3.1 RISKS RELATING TO THE GUARANTOR AND THE ISSUER ...................................... 64
3.2 RISKS RELATING TO THE DERIVATIVE SECURITIES................................................. 74
3.3 RISKS RELATING TO THE UNDERLYINGS................................................................... 83
4
INTERACTIVE BROKERS FINANCIAL PRODUCTS S.A. (ISSUER)........................................ 84
4.1 STATUTORY AUDITORS................................................................................................. 84
4.2 INFORMATION ABOUT THE ISSUER............................................................................. 84
4.3 BUSINESS OVERVIEW ................................................................................................... 84
4.4 ORGANISATIONAL STRUCTURE................................................................................... 85
4.5 TREND INFORMATION ................................................................................................... 85
4.6 ADMINISTRATIVE AND MANAGEMENT BODIES.......................................................... 85
4.7 BOARD PRACTISES........................................................................................................ 86
4.8 MAJOR SHAREHOLDERS............................................................................................... 86
4.9 FINANCIAL INFORMATION ............................................................................................. 87
4.10 ADDITIONAL INFORMATION .......................................................................................... 89
4.11 MATERIAL CONTRACTS................................................................................................. 89
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IBG LLC (GUARANTOR) ............................................................................................................ 90
5.1 STATUTORY AUDITORS................................................................................................. 90
5.2 INFORMATION ABOUT THE GUARANTOR ................................................................... 90
5.3 BUSINESS OVERVIEW ................................................................................................... 90
5.4 ORGANISATIONAL STRUCTURE................................................................................... 90
5.5 TREND INFORMATION ................................................................................................... 93
5.6 ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES ............................. 93
5.7 BOARD PRACTISES........................................................................................................ 93
5.8 MAJOR SHAREHOLDERS............................................................................................... 94
5.9 FINANCIAL INFORMATION ............................................................................................. 94
5.10 ADDITIONAL INFORMATION .......................................................................................... 99
5.11 MATERIAL CONTRACTS................................................................................................. 99
6
WERTPAPIERBEDINGUNGEN / TERMS AND CONDITIONS OF THE DERIVATIVE .........
SECURITIES............................................................................................................................. 100
6.1 OPTIONSSCHEINE / WARRANTS ................................................................................ 100
6.2 ZERTIFIKATE / CERTIFICATES .................................................................................... 142
7
FORM OF FINAL TERMS (MUSTER – ENDGÜLTIGE BEDINGUNGEN)............................... 198
PART I - GENERAL INFORMATION .................................................................................................. 200
PART II - INFORMATION ON THE UNDERLYING ............................................................................ 201
PART III - RISK FACTORS REGARDING THE UNDERLYING ......................................................... 202
PART IV - INFORMATION ON THE [WARRANTS] [CERTIFICATES]............................................... 202
PART V - CONDITIONS OF THE DERIVATIVE SECURITIES .......................................................... 205
8
SUBSCRIPTION AND SALE .................................................................................................... 206
9
TAXATION ................................................................................................................................ 209
10
GENERAL DESCRIPTION OF THE PROGRAMME ................................................................ 217
11
IMPORTANT NOTICE ABOUT THIS BASE PROSPECTUS ................................................... 218
ANNEX I - HISTORICAL FINANCIAL INFORMATION OF THE ISSUER .......................................... 224
ANNEX II - HISTORICAL FINANCIAL INFORMATION OF THE GUARANTOR................................ 235
ANNEX III - FORM OF GUARANTEE................................................................................................. 300
SIGNATURE PAGE............................................................................................................................. U - 1
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SUMMARY
The following constitutes a summary (the Summary) of the essential characteristics and risks
associated with Interactive Brokers Financial Products S.A. (the Issuer), IBG LLC (the
Guarantor) and warrants and certificates (the Derivative Securities) to be issued under the
warrant and certificate programme of the Issuer (the Programme). This Summary should be
read as an introduction to this prospectus (the Base Prospectus). Any decision by an investor
to invest in the Derivative Securities should be based on consideration of this Base Prospectus
as a whole, including the supplements thereto (if any) and the relevant final terms (the Final
Terms). Where a claim relating to the information contained in this Base Prospectus, any
supplement thereto and the relevant Final Terms is brought before a court, the plaintiff investor
might, under the national legislation of the contracting states of the European Economic Area,
have to bear the costs of translating the Base Prospectus, any supplement thereto and the
relevant Final Terms before the legal proceedings are initiated. The Issuer, who has assumed
responsibility for this Summary including any translation thereof, can be held liable, but only if
the Summary is misleading, inaccurate or inconsistent when read together with the other parts
of this Base Prospectus.
The following Summary is taken from and qualified in its entirety by the remainder of this
Base Prospectus and, in relation to a particular Series of Derivative Securities, the
relevant Final Terms.
1.1
SUMMARY OF RISK FACTORS
The purchase of the Derivative Securities issued under the Programme is associated with the
risks summarised below. The specific risks in relation to the relevant underlying may be set out
in the respective Final Terms, which must therefore always be taken into account in assessing
the risks associated with an investment in those Derivative Securities. In this respect, investors
should apart from the other information on the Issuer, the Guarantor and the Derivative
Securities contained in this Base Prospectus and in the Final Terms also consider the
description of risks for their investment decision.
Investors in the Derivative Securities offered hereby should consider their current financial
circumstances and investment objectives and always consult their own financial, legal and tax
advisers with regard to the suitability of the relevant Derivative Securities to realise the
envisaged investment objective in the light of their personal circumstances before acquiring
such Derivative Securities.
Should one or more of the circumstances described below occur, this could lead to a
material and long-term decline in the price of the Derivative Securities or, in extreme
cases, to a total loss of the amount invested by the investor.
Even when the Derivative Securities are capital protected at maturity to the extent of the
minimum amount repayable (the Minimum Repayment Amount) and hence, the risk of a loss
is initially limited, each holder of the Derivative Securities (the Securityholder) bears the risk of
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the Issuer’s situation worsening.
1.2
SUMMARY OF RISKS RELATING TO THE GUARANTOR AND THE ISSUER
Summary of risks relating to the Guarantor
The Guarantor as the parent company of the Interactive Brokers group of companies (consisting
of the Guarantor and its subsidiaries, and also defined as IB Group) is a holding company
whose primary assets consist of shares of stock or other equity interests in or amounts due from
subsidiaries; hence, almost all of its income is derived from those subsidiaries. Accordingly, the
Guarantor will be dependent on dividends and other distributions or loans from its subsidiaries
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Whether the Derivative Securities are vested with a capital guarantee (i.e. a Minimum Repayment Amount is guaranteed) or
without a capital guarantee is set out in the Final Terms.
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to generate the funds necessary to meet obligations with respect to the Derivative Securities
guaranteed by it and a holder of such Derivative Securities could lose all or part of his
investment.
IB Group’s (including the Guarantor’s) financial condition and results of operations, on which
payment of any dividends and other distributions or loans to the Guarantor depends, may be
affected by uncertain or unfavourable economic, market, legal and other conditions. These
conditions include but are not limited to the following risks:
Market Risk
The term “Market Risk” describes changes in interest
and foreign exchange rates, financial instruments and
real estate valuations and increases in volatility.
Competitive Environment
The term “Competitive Environment” describes the fact
that Guarantor’s competitive ability in the global
financial markets depends on factors such as its
reputation, the quality of its services, product
innovation, execution ability, pricing, sales and the
talent of its employees.
Business Environment
The term “Business Environment” describes the global
financial markets being affected by concerns about
geopolitical developments.
Liquidity
The term “Liquidity” describes liquidity and liquidity
management being affected by the Guarantor’s
inability, however temporary, to access the long-term
or short-term debt, repurchase or securities-lending
markets or to draw under credit facilities.
Credit Ratings
The term “Credit Ratings” describes Guarantor’s ability
and costs to access to the unsecured funding markets
being dependent on its credit ratings.
Credit Exposure
The term “Credit Exposure” describes the possibility,
however unforeseen or remote, that a counterparty
may be unable to honour its contractual obligations to
the Guarantor.
Operational Risk
The term “Operational Risk” describes the risk of loss
resulting from inadequate or failed internal or
outsourced processes, people, infrastructure and
technology systems.
Legal, Regulatory and Reputational
Risk
The term “Legal, Regulatory and Reputational Risk”
describes any increases in the costs of compliance
requirements under, together with the legal,
reputational and/or administrative costs of any violation
of, the extensive regulation to which the securities and
financial services industries are subject in the many
jurisdictions in which the Guarantor does business.
In particular, such uncertain or unfavourable economic, market, legal and other conditions
include but are not limited to risks arising from the following:

IB Group may be harmed by global events beyond its control, including overall
slowdowns in securities trading.
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
Because IB Group’ revenues and profitability depend on trading volume, they are prone
to significant fluctuations and are difficult to predict.

IB Group’s reliance on its computer software could cause IB Group great financial harm
in the event of any disruption or corruption of its computer software. IB Group may
experience technology failures while developing its software.

IB Group’s business could be harmed by a systemic market event.

IB Group may incur material trading losses from its market making activities.

Reduced spreads in securities pricing, levels of trading activity and trading through
market makers and/or specialists could harm IB Group’s business.

IB Group may incur losses in its market making activities in the event of failures of its
proprietary pricing model.

The valuation of the financial instruments IB Group hold may result in large and
occasionally anomalous swings in the value of its positions and in its earnings in any
period.

IB Group is exposed to losses due to lack of perfect information.

Rules governing specialists and designated market makers may require IB Group to
make unprofitable trades or prevent it from making profitable trades.

IB Group is subject to potential losses as a result of its clearing and execution activities.

IB Group depends on its proprietary technology, and its future results may be impacted if
it cannot maintain technological superiority in its industry.

The loss of IB Group key employees would materially adversely affect its business.

IB Group is exposed to risks associated with its international operations.

IB Group does not have fully redundant systems. System failures could harm IB Group’s
business.

Failure of third-party systems on which IB Group rely could adversely affect its business.

IB Group’s direct market access clearing and non-clearing brokerage operations face
intense competition.

Any future acquisitions may result in significant transaction expenses, integration and
consolidation risks and risks associated with entering new markets, and IB Group may be
unable to profitably operate its consolidated company.

Internet-related issues may reduce or slow the growth in the use of IB Group’s services in
the future.

IB Group’s computer infrastructure may be vulnerable to security breaches. Any such
problems could jeopardize confidential information transmitted over the Internet, cause
interruptions in its operations or cause IB Group to have liability to third persons.

IB Group may not be able to protect its intellectual property rights or may be prevented
from using intellectual property necessary for its business.
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
IB Group’s future success will depend on its response to the demand for new services,
products and technologies.

The expansion of IB Group’s market making activities into forex-based products entails
significant risk, and unforeseen events in such business could have an adverse effect on
its business, financial condition and results of operation.

IB Group is subject to counterparty risk whereby defaults by parties with whom it does
business can have an adverse effect on its business, financial condition and/or operating
results.
Summary of risks relating to the Issuer
As each company of IB Group, and in addition to the potential risks outlined in the previous
section, the Issuer may be affected by uncertain or unfavourable economic, market, legal and
other conditions that are likely to affect IB Group. By purchasing securities issued by the Issuer,
investors will take a credit risk on the Issuer (that is the risk of the Issuer not being able to meet
its payment obligations (if any) with respect to any securities issued by the Issuer and
purchased by the investors).
The Issuer may hedge its obligations by offsetting derivatives instruments with other IB Group
companies. The Issuer’s ability to perform its obligations may therefore be affected by any
inability or failure to perform obligations owed to the Issuer by other IB Group companies.
The Issuer is not rated and to the extent it taps the unsecured funding markets, its ability to do
so may also be dependent on the credit ratings of IB Group.
Several IB Group companies are involved in a number of judicial, regulatory and arbitration
proceedings concerning matters arising in connection with the conduct of their business.
Possible losses in connection with the actions against IB Group may be material to IB Group’s
operating results for any particular future period, depending on the level of the income for such
period.
1.3
SUMMARY OF RISKS RELATING TO THE DERIVATIVE SECURITIES
Summary of risks relating to the Warrants
An investment in the Warrants carries product-specific risks for the investor. The value of a
Warrant is determined not only by changes in the price of the underlying reference (the
Underlying) but also depends upon a number of other factors. Accordingly, the value of the
Warrants may decline even if the price of the Underlying remains constant. Prospective
investors should note that changes in the price of the Underlying on which the Warrant is based
(or even the non-occurrence of anticipated changes) can lower the value of a Warrant. This risk
is independent of the financial situation of the Issuer.
Moreover, one of the key features of the Warrants as warrants is its so-called Leverage Effect:
Any change in the value of the Underlying may result in a disproportionate change in the value
of the Warrant. The Warrants, consequently, also involve disproportionate loss exposure, if the
Underlying develops unfavourably. Therefore, when buying a certain Warrant, it should be
noted that the higher the leverage effect of a warrant, the higher the loss exposure involved. In
addition, it should be noted that, typically, the shorter the (remaining) maturity of the Warrant,
the higher the leverage effect.
In addition to the Term of the Warrants, the frequency and intensity of price fluctuations
(volatility) in the Underlying, the prevailing interest rates and the level of dividends paid or, as
the case may be, to the general development of foreign exchange markets, the following
circumstances are, in the Issuer's opinion, the essential factors, which may have an impact on
the value of the Warrants and which may create certain risks for the investors in the Warrants.
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Each potential investor must determine, based on its own independent review and such
professional advice as it deems appropriate under the circumstances, that its acquisition of the
Warrants is fully consistent with its (or if it is acquiring the Warrants in a fiduciary capacity, the
beneficiary's) financial needs, objectives and condition, complies and is fully consistent with all
investment policies, guidelines and restrictions applicable to it (whether acquiring the Warrants
as principal or in a fiduciary capacity) and is a fit, proper and suitable investment for it (or if it is
acquiring the Warrants in a fiduciary capacity, for the beneficiary), notwithstanding the clear and
substantial risks inherent in investing in or holding the Warrants.
Further features of the Warrant structure
Prior to investing in the Warrants, prospective investors should note that the following special
features of the Warrants, if specified in the relevant Final Terms, may have an impact on the
value of the Warrants or, as the case may be, on any amount, if any, payable according to the
Conditions of the Warrants and that the Warrants accordingly have special risk profiles:
Extent of participation in the performance of the Underlying
The application of the Ratio within the determination of the Option Right results in the Warrants
being in economic terms similar to a direct investment in the Underlying but being nonetheless
not fully comparable with such a direct investment, in particular because the Securityholders do
not participate in the relevant performance by a 1:1 ratio, but by the proportion of the relevant
Ratio.
Exchange rate risk
If so specified in the relevant Final Terms of the Warrants, the Securityholder's right vested in
the Warrants is determined on the basis of a currency other than the Settlement Currency,
currency unit or calculation unit and/or, also the value of the Underlying is determined in such a
currency other than the Settlement Currency, currency unit or calculation unit. Potential
investors should, therefore, be aware that investments in these Warrants could entail risks due
to fluctuating exchange rates, and that the risk of loss does not depend solely on the
performance of the Underlying but also on unfavourable developments in the value of the
foreign currency, currency unit or calculation unit.
Such developments can additionally increase the Securityholders' exposure to losses, because
an unfavourable performance of the relevant currency exchange rate may correspondingly
decrease the value of the purchased Warrants during their term or, as the case may be, the
level of the Settlement Amount. Currency exchange rates are determined by factors of offer and
demand on the international currency exchange markets, which are themselves exposed to
economic factors, speculations and measures by governments and central banks (for example
monetary controls or restrictions).
Special Features of Warrants on currency exchange rates, commodities or, as the case
may be, precious metals
In cases of currency exchange rates, commodities or, as the case may be, precious metals
used as the Underlying, it should be noted that the values are traded 24 hours a day through
the time zones of Australia, Asia, Europe and America. Potential investors of the Warrants
should, therefore, be aware that a relevant limit or, as the case may be, threshold described in
the Conditions of the Warrants, may be reached, exceeded or fallen short at any time and even
outside of local or business hours of the Issuer, the Calculation Agent or the Offeror.
Limitation of the exercise of the Option Right by the Securityholders
those Warrants, which are directly or indirectly based on German equities as the Underlying,
may, in accordance with the Conditions of the Warrants, not be exercised on certain days, i.e. on
the day, on which the shareholders' general meeting of the German stock corporation, the share
of which is used for the purposes of the Warrants, takes place, and on the calculation date (ex
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dividend day) immediately preceding such day. In addition, the relevant Final Terms may also
stipulate that the Warrants may be exercised by the Securityholders on certain dates only. In
the event that the Exercise Notice is not duly received by this Exercise Date, the Warrants
cannot be exercised until the next Exercise Date stated in the Conditions of the Warrants.
Limitation of the exercise of the Option Right by the Securityholders by Minimum
Exercise Size
If so specified in the relevant Final Terms of the Warrants, any Securityholder must in
accordance with the Conditions of the Warrants tender a specified minimum number of the
Warrants, in order to exercise the Option Right vested in the Warrants, so-called Minimum
Exercise Size. Holders with less than the specified Minimum Exercise Size of Warrants will,
therefore, either have to sell their Warrants or purchase additional Warrants (incurring
transaction costs in each case).
Termination and Early Redemption at the option of the Issuer
Potential investors in the Warrants should furthermore be aware that the Issuer is, pursuant to
the Conditions of the Warrants, entitled to terminate and redeem the Warrants in total prior to
Expiration Date. In case the Issuer terminates and redeems the Warrants prior to Expiration
Date, the Securityholder is entitled to demand the payment of an amount in relation to this early
redemption. However, the Securityholder is not entitled to request any further payments on the
Warrants after the relevant termination date.
The Securityholder, therefore, bears the risk of not participating in the performance of the
Underlying, to the expected extent and during the expected period.
In case of a termination of the Warrants by the Issuer, the Securityholder bears the risk of a
reinvestment, i.e. the investor bears the risk that it will have to re-invest the amount, if any, paid
by the Issuer in case of termination at market conditions, which are less favourable than those
prevailing at the time of the acquisition of the Warrants.
No termination right of the Securityholders
The Securityholders do not have a termination right and the Warrants may, hence, not be
terminated by the Securityholders during their term. Prior to the maturity of the Warrants the
realisation of the economic value of the Warrants (or parts thereof), if any, is, consequently and
except for the Issuer's termination and early redemption of the Warrants or, as the case may be,
and if specified in the relevant Final Terms, an exercise of the Option Right by the
Securityholders in accordance with the Conditions of the Warrants, only possible by way of
selling the Warrants.
Possible decline in the Price of the Underlying after termination of the Warrants
In the event that the term of the Warrants is terminated early by the Issuer pursuant to the
Conditions of the Warrants, potential investors of the Warrants should note that any negative
performance of price of the Underlying between the announcement of the termination by the
Issuer and the determination of the price of the Underlying relevant for calculation of the then
payable cash amount are borne by the Securityholders.
Adverse Impact of adjustments of the Option Right
In case of the occurrence of a potential adjustment event, the Issuer shall be entitled, if so
specified in the relevant Final Terms of the Warrants, to effect adjustments according to the
Conditions of the Warrants. These adjustments might have a negative impact on the value of
the Warrants.
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Negative effect of ancillary costs
Commissions and other transaction costs incurred in connection with the purchase or sale of
Warrants may result in charges, particularly in combination with a low order value, which can
substantially reduce any settlement amount, if any, to be paid under the Warrants. Before
acquiring a Warrant, prospective investors should therefore inform themselves of all costs
incurred through the purchase or sale of the Security, including any costs charged by their
custodian banks upon purchase and maturity of the Warrants.
Transactions to offset or limit risk
Prospective investors of the Warrants should not rely on the ability to conclude transactions at
any time during the Term of the Warrants that will allow them to offset or limit relevant risks.
This depends on the market situation and the prevailing conditions. Transactions designed to
offset or limit risks might only be possible at an unfavourable market price that will entail a loss
for investors.
Trading in the Warrants / Illiquidity
It is not possible to predict if and to what extent a secondary market may develop in the
Warrants or at what price the Warrants will trade in the secondary market or whether such
market will be liquid or illiquid. Potential investors therefore should not rely on the ability to sell
Warrants at a specific time or at a specific price.
Representation and Custody of the Warrants
The Warrants under this Programme are issued in bearer form and represented by one or more
Permanent Global Note(s) or one or more Temporary Global Note(s), respectively.
The Permanent Global Note and the Temporary Global Note are kept in custody by the
Depositary Agent on behalf of the Clearing Agent (CA) in accordance with the applicable rules
and regulations of the Depository Agent and the Clearing Agent. The Warrants are transferable
as co-ownership interests in the Permanent Global Note or, as the case may be, the Temporary
Global Note in accordance with the relevant CA Rules and may be transferred within the
collective securities settlement procedure in the Minimum Trading Size only. Such transfer
becomes effective upon registration of the transfer in the records of the Clearing Agent.
Securityholders will have to rely on the procedures of the Depositary Agent and the Clearing
Agent for transfer, payment and communication with the Issuer. Securityholders are not entitled
to request the delivery of definitive Warrants.
The Issuer has no responsibility or liability under any circumstances for any acts and omissions
of the Depository Agent or the Clearing Agent, as the case may be, as well as for any losses
which might occur to a Securityholder out of such acts and omissions in general and for the
records relating to, or payments made in respect of, beneficial interests of the Securityholder, in
particular.
Pricing of Warrants
Unlike most other Warrants the pricing of these Warrants is regularly not based on the principle
of offer and demand in relation to Warrants, since the secondary market traders might quote
independent bid and offer prices. This price calculation is based on price calculation models
prevailing in the market, whereas the theoretical value of the Warrants is, in principle,
determined on the basis of the value of the Underlying and the value of other features attached
to the Warrants, each of which features may, in economic terms, be represented by another
derivative financial instrument.
The potentially quoted prices do not necessarily correspond to the Warrants' intrinsic value as
determined by a trader.
11
Expansion of the spread between bid and offer prices
In special market situations, where the Issuer is completely unable to conclude hedging
transactions, or where such transactions are very difficult to conclude, the spread between the
bid and offer prices may be temporarily expanded, in order to limit the economic risks to the
Issuer. Therefore, Securityholders who wish to sell their Warrants via a stock exchange or in the
over-the-counter trading might sell at a price considerably lower than the actual price of the
Warrants at the time of their sale.
Borrowed funds
If the purchase of Warrants is financed by borrowed funds and investors' expectations are not
met, they not only suffer the loss incurred under the Warrants, but in addition also have to pay
interest on and repay the loan. This produces a substantial increase in investors' risk of loss.
Investors of Warrants should never rely on being able to redeem and pay interest on the loan
through gains from a Warrants transaction. Rather, before financing the purchase of a Security
with borrowed funds, the investors' financial situations should be assessed, as to their ability to
pay interest on or redeem the loan immediately, even if they incur losses instead of the
expected gains.
The effect on the Warrants of hedging transactions by the Issuer
The Issuer may use all or some of the proceeds received from the sale of the Warrants to enter
into hedging transactions relating to the risks incurred in issuing the Warrants. In such a case,
the Issuer or one of its affiliated companies may conclude transactions that correspond to the
Issuer's obligations arising from the Warrants. Generally speaking, this type of transaction will
be concluded before or on the Issue Date of the Warrants, although these transactions can also
be concluded after the Warrants have been issued. The Issuer or one of its affiliated companies
may at any time take the necessary steps for the closing out of any hedging transactions. The
market price of the Underlying might, in certain cases, be negatively affected by such
transactions. The entering into or the closing out of such hedging transactions may in relation to
the securities value, which is depending on the occurrence of a certain event in relation to the
Underlying, influence the likelihood of this event to occur or not to occur.
General
Therefore, it is expressly recommended that any potential investor familiarises himself with the
specific risk profile of the product type described in this Prospectus and that any investor seeks
the advice of a professional, if necessary. Potential investors are expressly made aware of the
fact that the Warrants constitute a risk investment which can lead to the loss of the invested
capital. Apart from the specific risk profile of the product type the investor bears the risk of the
Issuer's and the Guarantor’s financial situation worsening, in particular the insolvency of the
Issuer and/or the Guarantor. As a result, prospective investors must be prepared and able to
accept a partial or even a total loss of the invested capital. Any investors interested in
purchasing the Warrants should assess their financial situation, to ensure that they are in a
position to bear the risks of loss connected with the Warrants.
Potential Conflicts of Interest
The Issuer and/or its affiliates may engage in trading activities (including hedging activities) that
may give rise to conflicts of interest. The Issuer and/or its affiliates may actively trade in the
Underlying of the Derivative Securities, other instruments or derivatives, exchange-traded
options or exchange-traded futures contracts referenced to the Underlying, or may issue other
securities or derivatives referenced to the Underlying. These activities may give rise to conflicts
of interest and may affect the price of the Underlying or the Derivative Securities referenced to
the Underlying.
12
Summary of risks relating to the Certificates
An investment in the Certificates carries product-specific risks for the investor. The value of
Certificates is determined not only by changes in the price of the Underlying, but also depends
upon a number of other factors. Accordingly, the value of the Certificates may decline even if
the price of the Underlying remains constant. The Certificates constitute investment instruments
involving a particularly high degree of risk. As compared to other investments, Certificates
involve a substantial level of loss exposure, including the total loss of the amounts invested, and
transaction costs incurred.
Prospective investors should note that changes in the price of the Underlying on which the
Certificate is based (or even the non-occurrence of anticipated price changes) can lower the
value of a Certificate. In the light of typically limited maturity of the Certificates, there is no
certainty that the value of the Certificate will recover before the Certificates reach maturity. This
risk is independent of the financial situation of the Issuer.
Prospective investors of the Certificates should recognise that the Certificates constitute a risk
investment which can lead to a total loss of their investment in the Certificates. Even if the
Certificates are capital protected at maturity to the extent of the Minimum Repayment Amount
and, hence, the risk of a loss is initially limited, the investor bears the risk of the Issuer's and the
Guarantor's financial situation worsening. Potential investors must therefore be prepared and
able to sustain a partial or even a total loss of the invested capital. Any investors interested in
purchasing the Certificates should assess their financial situation, to ensure that they are in a
position to bear the risks of loss connected with the Certificates.
In addition to the Term of the Certificates, the frequency and intensity of price fluctuations
(volatility) in the Underlying, the prevailing interest rates and the level of dividends paid or, as
the value of the Certificates and which may create certain risks for the investors in the
Certificates:
Features of the Certificate structure
Prior to investing in the Certificates, prospective investors should note that the following special
features of the Certificates may have an impact on the value of the Certificates or on any
amount payable according to the Terms and Conditions and that the Certificates accordingly
have special risk profiles.
Extent of participation in the performance of the Underlying
The application of the Ratio within the determination of the Certificate Right results in the
Certificates being in economic terms similar to a direct investment in the Underlying, but being
nonetheless not fully comparable with such a direct investment, in particular because the
Securityholders do not participate in the relevant performance by a 1:1 ratio, but by the
proportion of the Ratio only.
Limitation of potential profits to the Cap Amount
Prospective investors should furthermore consider that the Settlement Amount under the
Certificates is limited to the Cap Amount as determined in the Terms and Conditions. In contrast
to a direct investment in the Underlying the potential profit of the Certificates is, therefore,
limited to the Cap Amount.
Existence of a currency exchange rate risk
If so specified in relevant Final Terms, the value of the Underlying is determined in a currency
other than the Settlement Currency, currency unit or calculation unit. Potential investors should,
therefore, be aware that investments in these Certificates could entail risks due to fluctuating
exchange rates, and that the risk of loss does not depend solely on the performance of the
13
Underlying, but also on unfavourable developments in the value of the foreign currency,
currency unit or calculation unit.
decrease the value of the purchased Certificates during their term or the level of the Settlement
Amount. Currency exchange rates are determined by factors of offer and demand on the
international currency exchange markets, which are themselves exposed to economic factors,
speculations and measures by governments and central banks (for example monetary controls
or restrictions).
Special Features of Certificates on currency exchange rates, commodities or, as the case
used as the Underlying, it should be noted that the values are traded 24 hours a day through the
time zones of Australia, Asia, Europe and America.
Potential investors of the Certificates should, therefore, be aware that a relevant limit or, as the
case may be, threshold described in the Terms and Conditions of the Certificates, may be
reached, exceeded or fallen short at any time and even outside of local business hours of the
Issuer, the Calculation Agent or the Offeror.
The capital protection only applies at the end of the term of the Certificates
If so specified in the relevant Final Terms, the Certificates are as at the end of their term capital
protected to the extent of the Minimum Repayment Amount, i.e. the investor receives at the end
of the term disregarding the actual performance of the Underlying in any case the Minimum
Repayment Amount. If an investor acquires the Certificates after the issue at a price, which is
higher than the Minimum Repayment Amount, the prospective investor should be aware that the
proportional capital protection only refers to the lower Minimum Repayment Amount. In this
context, it has to be considered that the capital protection only applies at the end of the term,
provided that the Certificates have not been terminated.
The cash amount to be paid in case of an early redemption of the Certificates can be
considerably below the amount, which would be payable as a minimum at the end of the term of
the Certificates, where the capital protection applies to the extent of the relevant Minimum
Repayment Amount.
Potential investors of the Certificates should furthermore recognise that despite the capital
protection to the extent of the relevant Minimum Repayment Amount, the investor bears the risk
of the Issuer's and the Guarantor’s financial ability. Prospective investors must therefore be
prepared and able to sustain a partial or even a total loss of the capital invested. Purchasers of
the Certificates should in any case assess their financial situation, to ensure that they are in a
Potential investors in the Certificates should furthermore be aware that the Issuer is in case of
the occurrence of a Termination Event, pursuant to the Terms and Conditions, entitled to
terminate and redeem the Certificates in total prior to the Expiration Date. In case the Issuer
terminates and redeems the Certificates prior to the Expiration Date, the Securityholder is
entitled to demand the payment of an amount in relation to the early redemption. However, the
Securityholder is not entitled to request any further payments on the Certificates after the
Termination Date.
Underlying to the expected extent and during the expected period.
14
In case of a termination of the Certificates by the Issuer, the Securityholder bears the risk of a
reinvestment, i.e. the investor bears the risk that it will have to re-invest the Termination
Amount, if any, paid by the Issuer in case of termination at market conditions, which are less
favourable than those prevailing at the time of the acquisition of the Certificates.
The Securityholders do not have a termination right and the Certificates may, hence, not be
terminated by the Securityholders during their term. Prior to the maturity of the Certificates the
realisation of the economic value of the Certificates (or parts thereof), if any, is, consequently
and except for the Issuer's termination and early redemption, only possible by way of selling the
Certificates.
The selling of the Certificates requires that market participants are willing to acquire the
Certificates at a certain price. In case that no market participants are readily available, the value
of the Certificates may not be realised. The Issuer is not obligated under the issuance of these
Certificates towards the Securityholders to compensate for or to repurchase the Certificates.
Possible decline in the Price of the Underlying after termination of the Certificates
In the event that the term of the Certificates is terminated early by the Issuer pursuant to the
Terms and Conditions of the Certificates, potential investors of the Certificates should note that
any negative performance of the Price of the Underlying between the announcement of the
termination by the Issuer and the determination of the Price of the Underlying relevant for
calculation of the then payable Termination Amount are borne by the Securityholders.
Adverse Impact of adjustments of the Certificate Right
In case of the occurrence of a potential adjustment event, the Issuer shall be entitled to effect
adjustments according to the Terms and Conditions. These adjustments might have a negative
impact on the value of the Certificates.
Effect of ancillary costs
Certificates may result in charges, particularly in combination with a low order value, which can
substantially reduce any settlement amount to be paid under the Certificates. Before acquiring a
Certificate, prospective investors should therefore inform themselves of all costs incurred
through the purchase or sale of the Certificate, including any costs charged by their custodian
banks upon purchase and maturity of the Securities.
Prospective investors of the Certificates should not rely on the ability to conclude transactions at
any time during the Term of the Certificates that will allow them to offset or limit relevant risks.
for investors.
Trading in the Certificates and Illiquidity
Certificates or at what price the Certificates will trade in the secondary market or whether such
Certificates at a specific time or at a specific price.
Representation and Custody of the Certificates
The Certificates under this Programme are issued in bearer form and represented by one or
more Permanent Global Note(s) or one or more Temporary Global Note(s), respectively.
15
Depositary Agent on behalf of the Clearing Agent in accordance with the applicable rules and
regulations of the Depository Agent and the Clearing Agent. The Certificates are transferable as
co-ownership interests in the Permanent Global Note or, as the case may be, the Temporary
collective securities settlement procedure in the Minimum Trading Size only. Such transfer
to request the delivery of definitive Certificates.
which might occur to a Securityholder out of such acts and omissions in general and for the
particular.
Pricing of Certificates
Unlike most other securities the pricing of these Certificates is regularly not based on the
principle of offer and demand in relation to Certificates, since the secondary market traders
might quote independent bid and offer prices. This price calculation is based on price
calculation models prevailing in the market, whereas the theoretical value of the Certificates is,
in principle, determined on the basis of the value of the Underlying and the value of other
features attached to the Certificates, each of which features may, in economic terms, be
represented by another derivative financial instrument.
The potentially quoted prices do not necessarily correspond to the Certificates' intrinsic value as
Issuer. Therefore, Securityholders who wish to sell their Certificates via a securities exchange or
in the over-the-counter trading might sell at a price considerably lower than the actual price of
the Certificates at the time of their sale.
Borrowed funds
If the purchase of Certificates is financed by borrowed funds and investors' expectations are not
met, they not only suffer the loss incurred under the Certificates, but in addition also have to pay
Investors of Certificates should never rely on being able to redeem and pay interest on the loan
through gains from a Certificates transaction. Rather, before financing the purchase of a
Certificate with borrowed funds, the investors' financial situations should be assessed, as to
their ability to pay interest on or redeem the loan immediately, even if they incur losses instead
of the expected gains.
The effect on the Certificates of hedging transactions by the Issuer
The Issuer may use all or some of the proceeds received from the sale of the Certificates to
enter into hedging transactions relating to the risks incurred in issuing the Certificates. In such a
case, the Issuer or one of its affiliated companies may conclude transactions that correspond to
the Issuer's obligations arising from the Certificates. Generally speaking, this type of transaction
will be concluded before or on the Issue Date of the Certificates, although these transactions
can also be concluded after the Certificates have been issued. The Issuer or one of its affiliated
companies may at any time take the necessary steps for the closing out of any hedging
16
transactions. The Price of the Underlying might, in certain cases, be negatively affected by
these transactions.
General
fact that the Certificates constitute a risk investment which can lead to the loss of the invested
capital. Even when the Certificates are capital protected at maturity to the extent of the
Minimum Repayment Amount and, hence, the risk of a loss is initially limited, the investor bears
the risk of the Issuer's and the Guarantor’s financial situation worsening, in particular the
insolvency of the Issuer and/or the Guarantor. As a result, prospective investors must be
prepared and able to accept a partial or even a total loss of the invested capital. Any investors
interested in purchasing the Certificates should assess their financial situation, to ensure that
they are in a position to bear the risks of loss connected with the Certificates.
Underlying of the Derivative Securities, other instruments or derivatives, exchange-traded
options or exchange-traded futures contracts referenced to the Underlying, or may issue other
securities or derivatives referenced to the Underlying. These activities may give rise to conflicts
of interest and may affect the price of the Underlying or the Derivative Securities referenced to
the Underlying.
1.4
SUMMARY OF THE DESCRIPTION OF THE ISSUER
Statutory Auditors
For the period between 8 January 2009 and 31
December 2009, BDO AUDIT S.A., 2, av. Charles de
Gaulle, L-2013 Luxembourg, Grand Duchy of
Luxembourg, is appointed as the independent auditor of
the Issuer.
Information about the Issuer
The Issuer acts under its legal name Interactive Brokers
Financial Products S.A. and under its commercial name
IBFP. The Issuer was incorporated under the laws of the
Grand Duchy of Luxembourg under its legal name
Interactive Brokers Financial Products S.A. on 8 January
2009 and registered in the commercial register of Grand
Duchy of Luxembourg on 19 January 2009 under No.
B144088.
The head office of the Issuer is located at L-2453
Luxembourg, 19, rue Eugène Ruppert. Its telephone
number is +52 26 30 26 34.
Business Overview
The Issuer, a special purpose vehicle, is 100% owned by
the Guarantor, which is the parent company of the
Interactive Brokers group of companies (collectively IB
Group). IB Group is an automated global electronic
market maker and broker specializing in routing orders
and executing and processing trades in securities, futures
and foreign exchange instruments on more than 80
electronic exchanges and trading venues around the
world. In the U.S., IB Group’s business is conducted from
its headquarters in Greenwich, Connecticut and from
Chicago, Illinois. Abroad, IB Group conducts business
through offices located in Canada, England, Switzerland,
17
Hong Kong, India, Australia and Japan. The Issuer
intends to offer the Derivative Securities in the Federal
Republic of Germany and may decide to offer them at a
later stage in other countries within the European
Economic Area.
Pursuant to Article 4 of its Articles of Association the
Issuer operates all financial transactions, including the
issue of both securities and any other financial
instruments of any nature and in any currency to private
and institutional investors and to borrow in any other
form; to enter into swap agreements and other derivative
transactions and to pledge, mortgage or charge or
otherwise create security interests in and over its assets,
property and rights to secure the payment or repayment
of any amounts payable by the Issuer under or in respect
of any bond, note, debenture or debt instrument of any
kind, issued from time to time by the Issuer.
Without limiting any of the foregoing, the Issuer may use
its funds for the setting up, the management, the
development, the acquisition and the disposal of debt and
other securities or other financial instruments; to
participate in the creation, the development and/ or the
control of any enterprise; to acquire by way of investment,
subscription, underwriting or by option to purchase or any
other way whatever, securities or other financial
instruments; to realize such securities or other financial
instruments by way of sale, transfer, exchange or
otherwise and to grant to the companies in which it has
participating interests any support, loans, advances or
guarantees.
In general, the Issuer may employ any techniques and
instruments relating to its assets and/or investments for
the purpose of their efficient management, including
techniques and instruments to protect against exchange
risks and interest rate risks; it may take any controlling
and supervisory measures and carry out any financial,
moveable or immovable commercial and industrial
operation which it may deem useful in the
accomplishment and development of its purpose.
Organisational Structure
The Issuer is 100% owned by the Guarantor, a limited
liability company organized under the laws of the State of
Connecticut, U.S.A.
Trend Information
There has been no material adverse change in the
prospects of the Issuer since the date of its last published
audited financial statements.
Administrative and Management
Bodies
The Issuer’s governing bodies are the Board of Directors
(Verwaltungsrat) and the general shareholder’s meeting
(Generalversammlung).
Board of Directors
The Board of Directors currently consists of three
members:
Earl H. Nemser is also the Vice Chairman of the
Guarantor and a director and Vice Chairman of
18
Interactive Brokers Group, Inc. He also serves as director
and/or officer for various subsidiaries of the Guarantor.
Mr. Nemser is also Special Counsel to the law firm of
Dechert LLP, which provides legal services to the
Guarantor and Interactive Brokers Group, Inc.
Roger Ryff, also Vice President of Timber Hill (Europe)
AG
Jean Lambert
Address of the Board of
Directors
19, rue Eugène Ruppert, L-2453 Luxembourg
General Meeting of Shareholders
The Guarantor as the sole shareholder will exercise the
powers of the general meeting of Shareholders.
Conflict of Interests
There are no potential conflicts of interests of the
members of the administrative, management and
supervisory bodies between their duties to the Issuer and
their private interests and/or other duties.
Board Practices
The Luxembourg Corporate Governance Code does not
apply to the Issuer as the Issuer is not a member of the
Luxembourg Stock Exchange. The Luxembourg
Corporate Governance Code is a document of the
Luxembourg Stock Exchange which is primarily
applicable for companies listed at this stock exchange.
The Issuer is of the opinion that the code is tailored to the
needs of stock companies and the application of the code
to the Issuer as a special purpose vehicle is not
reasonable. Hence, the Issuer does not voluntarily submit
to the Luxembourg Corporate Governance Code.
Major Shareholders
The Issuer is 100% owned by the Guarantor.
Historical Financial Information
The following table sets out in summary form the balance sheet, income statement and cash
flow statement of the Issuer, which have been extracted from the audited individual financial
statements of the Issuer for the period beginning from the start of the Issuer’s business
operations until 31 December 2009. The individual financial statements have been drawn up in
accordance with International Financial Reporting Standards (IFRS).
19
Balance Sheet
(in Euro)
31 December 2009
Assets
Cash and cash equivalents
Receivable from affiliate
Total assets
199,732
4,816,004
5,015,736
Liabilities and equity
Liabilities:
Payable to affiliate
Accounts payable, accrued expenses and other liabilities
Equity:
Stockholder’s equity
Common stock, EUR1,000 stated value per share:
Authorized, Issued and Outstanding:
5,000 shares at 31 December 2009
Net Loss
Total stockholder’s equity
Total liabilities and equity
60,863
25,493
86,356
5,000,000
(70,620)
4,929,380
5,015,736
Income Statement
Period from
8 January through
31 December 2009
(in Euro)
Revenues:
Translation losses
Interest income
Total revenues
(21)
16,009
15,988
Interest expense
15,988
Total net revenues
Non-interest expenses:
Communications
General and administrative
Total non-interest expenses
154
86,454
86,608
Loss before income taxes
(70,620)
Income tax expense
Net loss
(70,620)
20
Cash Flow Statement
Period from
8 January through
31 December 2009
(in Euro)
Cash Flows from operating activities:
Net loss
(Increase) decrease in assets:
Increase (decrease) in liabilities:
Payable to affiliates
Accrued expenses
Total cash used in operating activities
(70,620)
(4,816,004)
60,863
25,493
(4,800,268)
Cash flows from financing activities:
Issuance of common stock
Total cash provided by financing activities
5,000,000
5,000,000
Net Increase in cash:
Cash, beginning of period
Cash, end of period
199,732
199,732
Auditing of Historical Financial
Information
The auditors of the Issuer have issued an unqualified
auditor report in respect of the financial statements for
the period beginning from the start of the Issuer’s
business operations until 31 December 2009.
Legal and Arbitration Proceedings
The Issuer has not been and is not involved in any
governmental, legal or arbitration proceedings
(including any such proceedings which are pending or
threatened of which the Issuer is aware) during a
period covering the previous 12 months which may
have, or have had in the recent past, significant effects
on the Issuer and/or IB Group’s financial position or
profitability.
Significant Change in Issuer’s
Financial or Trading Position
There has been no significant change in the Issuer’s
financial or trading position since the date of the last
audited financial statements of the Issuer.
Share Capital (Article 5 of the
Articles of Association)
The subscribed share capital is Euro 5 Mio. divided
into 5,000 shares of Euro 1,000.00 each. The shares
are in registered form. They may be represented, at
the owner’s option, by certificates representing single
shares or certificates representing two or more shares.
The Issuer may, to the extent and under the terms
permitted by law, purchase its own shares. The share
capital may be increased or reduced in compliance
with the legal requirements.
Material Contracts
On 28 August 2009 the Issuer in its capacity as a
borrower entered into an unsecured loan agreement
with Timber Hill Europe AG in its capacity as a lender
21
in the amount of USD 10 Million.
1.5
SUMMARY OF THE DESCRIPTION OF THE GUARANTOR
Statutory Auditors
For the financial years ended 31 December 2008 and
31 December 2009, the independent auditor of the
Guarantor was Deloitte & Touche LLP, Two World
Financial Center, New York, New York 10281-1414
USA.
Information about the Guarantor
The Guarantor acts under its legal name IBG LLC and
under its commercial name Interactive Brokers Group.
The Guarantor was organized as a limited liability
company under the laws of the State of Connecticut
under its legal name IBG LLC on 1 July 1996 and
registered with the Secretary of the State of
Connecticut, USA under the number 0538978.
The head office of the Guarantor is located at One
Pickwick Plaza, Greenwich, Connecticut, 06830, USA.
Its telephone number is +1 (203) 618-5800.
Investments
The Guarantor periodically engages in evaluations of
potential strategic investments and acquisitions.
In February 2009, the Guarantor invested $ 7,500,000
(USD) in Quadriserv Inc., an electronic securities
lending platform provider.
Business Overview
The Guarantor is a subsidiary of Interactive Brokers
Group, Inc. and part of the IB Group. The Guarantor
conducts its business through its operating
subsidiaries. IB Group is an automated global
electronic market maker and broker specializing in
routing orders and executing and processing trades in
securities, futures, foreign exchange instruments,
bonds and funds on more than 80 electronic
exchanges and trading venues around the world. As a
market maker, IB Group provides liquidity at these
marketplaces and, as a broker, it provides professional
traders and investors with electronic access to stocks,
options, futures, forex, bonds and mutual funds from a
SM
single IB Universal Account . Employing proprietary
software on a global communications network, IB
Group is continuously integrating its software with a
growing number of exchanges and trading venues into
one automatically functioning, computerized platform
that requires minimal human intervention.
Pursuant to section 1.3 of the Amended and Restated
Operating Agreement of IBG LLC, which is similar to
the European concept of Articles of Association, as of
3 May 2007 the purpose of the Guarantor is any lawful
act or activity for which limited liability companies may
be formed under Sections 34-100 to 34-242, inclusive,
of the Connecticut Limited Liability Company Act, as
amended from time to time.
22
Organisational Structure
The Guarantor is owned by IBG Holdings LLC
(approximately 89.5%) and Interactive Brokers Group,
Inc. (approximately 10.5%).
Interactive Brokers Group, Inc. is a corporation
organized under the laws of the State of Delaware,
U.S.A. It is a holding company whose primary asset is
its ownership of approximately 10.5% of the
membership interests of the Guarantor. The Class A
common stock of Interactive Brokers Group, Inc. is
publicly traded and listed on NASDAQ. The Class B
common stock of Interactive Brokers Group, Inc. has
voting power in Interactive Brokers Group, Inc.
proportionate to the extent of IBG Holdings LLC’s
ownership of IBG LLC. As of 10 August 2009, there
were 41,214,498 shares of Class A common stock and
100 shares of Class B common stock outstanding.
IBG Holdings LLC, a limited liability company
organized under the laws of the State of Connecticut,
U.S.A., owns 100 % of Class B common stock
(representing approximately 89.5% voting interest in
the Guarantor).
Mr. Thomas Peterffy and his affiliates (including TP
Holdings Limited Partnership) own approximately 85%
of the membership interests of IBG Holdings LLC.
Interactive Brokers Group, Inc. is the sole
managing member of the Guarantor and controls
the business and affairs of the Guarantor.
Trend Information
There has been no material adverse change in the
prospects of the Guarantor since the date of its last
published audited financial statements.
Administrative and Management
Interactive Brokers Group, Inc. is the sole managing
member of the Guarantor and controls the business
and affairs of the Guarantor.
Day-to-day operations are managed by the following
officers of the Guarantor:
Thomas Peterffy, Chairman, Chief Executive Officer
and President. Mr Peterffy also serves as Chairman,
Chief Executive Officer and President of Interactive
Brokers Group, Inc. and as director and/or officer for
various subsidiaries of the Guarantor.
Earl H. Nemser, Vice Chairman of the Guarantor and a
director and Vice Chairman of Interactive Brokers
Group, Inc. He also serves as director and/or officer for
various subsidiaries of the Guarantor. Mr Nemser is
also Special Counsel to the law firm of Dechert LLP,
which provides legal services to the Guarantor and
Interactive Brokers Group, Inc.
Paul J. Brody, Chief Financial Officer and Secretary.
Mr Brody also serves as Chief Financial Officer,
Secretary and Director of Interactive Brokers Group,
23
Inc. and as director and/or officer for various
subsidiaries of the Guarantor.
Milan Galik, Senior Vice President, Software
Development. Mr Galik also serves as Senior Vice
President, Software Development and Director of
Interactive Brokers Group, Inc. and as officer for
various subsidiaries of the Guarantor.
David M. Battan, Vice President. Mr Battan also serves
as director and/or officer for various subsidiaries of the
Guarantor
Susan J. Cramer, Treasurer. Ms Cramer also serves
as officer for various subsidiaries of the Guarantor.
Bradford L. Jacobowitz, Associate General Counsel.
Mr Jacobowitz serves as officer for various
Business address of the
Guarantor’s Management
One Pickwick Plaza
Greenwich, Connecticut 06830
U.S.A.
Conflict of Interests
There are no potential conflicts of interests of the
members of the administrative and management
bodies between their duties to the Guarantor and their
private interests and/or other duties.
Board practices
The Guarantor has established an Audit & Compliance
Committee. The Audit & Compliance Committee
oversees the operation of internal controls covering
compliance with laws, regulations, and internal
policies, and independent auditor’s qualifications,
performance, and independence. The members of the
Audit & Compliance Committee are:
Earl Nemser
Paul Brody
Alexander Loffe
Arnold Feist
Bradford Jacobowitz
David Battan
Douglas Madonia
Flavio Iten
Jean-Francois Bernier
Jeffrey Bauch
John Good
24
Josef Kornmann
Marlene Ward
Yogi Aggarwal
The Guarantor complies with the U.S. corporate
governance regime.
Major Shareholders
The Guarantor is owned by IBG Holdings LLC
(approximately 89.5%) and Interactive Brokers Group,
Inc. (approximately 10.5%).
Mr. Thomas Peterffy and his affiliates own
approximately 85% of the membership interests of IBG
Holdings LLC.
The following table sets out in summary form the balance sheet, consolidated income statement
and consolidated cash flow statement of the Guarantor, which has been extracted from the
audited annual consolidated financial statements (US-GAAP) of IBG LLC and Subsidiaries for
the financial years ended 31 December 2008 and 31 December 2009 respectively.
Balance Sheet
(in thousands)
Assets
Cash and securities - segregated for
regulatory purposes
Securities borrowed
Securities purchased under agreements to
resell
Trading assets, at fair value
Financial instruments owned
Financial instruments owned and
pledged as collateral
December 31,
2009
$
Other receivables:
Customers, less allowance for doubtful
accounts of $16,637 and $ 17,572 at
December 31, 2009 and 2008
Brokers, dealers and clearing
organizations
Receivable from affiliates
Interest
Other assets
Total assets
$
25
806,046
December 31,
2008
$
942,889
6,728,936
5,063,026
4,992,121
5,911,881
413,005
715,732
7,809,944
10,049,481
1,534,038
9,343,982
1,065,180
11,114,661
3,239,625
1,621,162
493,063
1,122
14,720
3,748,530
162,018
26,265,543
2,527,981
641
25,185
4,174,969
149,024
28,001,277
$
Liabilities and Equity
Liabilities:
Trading liabilities - financial instruments
sold but not yet purchased, at fair value
Securities loaned
Short-term borrowings
Other payables:
Customers
Brokers, dealers and clearing
organizations
Accounts payable, accrued expenses
and other liabilities
Interest
$
Senior notes payable
Senior secured credit facility
Commitments, contingencies and
guarantees
Equity:
Members’ interests, including accumulated
other comprehensive income of $277,906
and $173,139
Non-controlling interests in subsidiaries
Total equity
26
$
8,763,201
1,133,658
320,803
$
13,476,757
656,625
208,117
10,587,701
6,929,617
164,523
9,560
1,614,810
14,019
238,224
9,114
11,009,122
205,777
21,432,561
284,488
16,182
8,859,116
143,054
300,000
23,643,669
4,831,794
1,188
4,832,982
26,265,543
4,356,668
940
4,357,608
28,001,277
$
Income Statement
Year ended December 31,
(in thousands)
Revenues:
2009
Trading gains
Commissions and execution fees
Interest income
Other income
Total revenues
$
Interest expense
Total net revenues
Execution and clearing
Employee compensation and
benefits
Occupancy, depreciation and
amortization
Communications
Income before income taxes
Income tax expense
Net income including non-controlling
interests
Net income attributable to non-controlling
interests
Net income
$
27
633,865
353,030
121,618
61,260
1,169,773
2008
$
1,303,994
359,529
437,167
81,669
2,182,359
69,591
332,130
1,100,182
1,850,229
273,203
322,746
175,827
158,018
40,340
22,789
43,518
555,677
37,663
18,650
63,138
600,215
544,505
1,250,014
37,569
102,611
506,936
1,147,403
294
506,642
$
262
1,147,141
Cash Flow Statement
(in thousands)
Cash flows from operating activities:
Net income
Adjustment to reconcile net income to net
cash provided by operating activities:
Translation (gains) losses (2008, as
adjusted)
Deferred income taxes
Depreciation and amortization
Employee stock plan compensation
Gains (losses) on non-trading
investments, net
Bad debt expense and other
Change in operating assets and liabilities
(2008, as adjusted):
Decrease (increase) in cash and
securities - segregated for regulatory
purposes
Decrease (increase) in securities
borrowed
Decrease (increase) in securities
purchased under agreements to resell
Decrease (increase) in trading assets
Decrease (increase) in receivables from
customers
Decrease (increase) in other
receivables
Increase in other assets
Decrease in trading liabilities
Increase (decrease) in securities loaned
Increase (decrease) in payable to
customers
Increase (decrease) in other payables
Net cash provided by (used in)
operating activities
Cash flows form investing activities:
(Purchase) sale of investments
Distributions received from equity
investment
(Purchase) of trading rights
Purchase of property and equipment
Net cash used in investing activities
Dividends paid
Issuance of senior notes
Redemptions of senior notes
Borrowings under senior secured credit
facility
Repayments of senior secured credit
facility
Increase (decrease) in short-term
borrowings, net
IBG LLC member interests redeemed
Reduction in non-controlling interest
subsidiary
Repurchase of Class A Common Stock
28
2009
$
506,936
2008
$
1,147,403
10,555
(38,610)
21,074
33,192
59,201
34,763
17,897
25,921
8,939
(559)
14,107
20,287
(1,736,695)
240,462
855,874
956,426
302,710
1,810,626
(680,721)
5,764,571
(1,618,958)
295,559
2,053,292
(14,270)
(4,683,259)
479,335
26,138
(3,707)
(820,817)
(4,310,029)
3,656,289
(1,481,156)
(698,735)
30,389
165,315
2,119,115
(11,300)
5,866
2,292
(18,492)
(27,500)
635
(26,695)
(20,194)
(139,324)
508,116
(445,393)
(248,529)
474,566
(491,968)
800
550,000
(300,800)
(550,000)
86,464
(14,903)
(1,281,108)
(76,001)
22
-
(866)
Cash capital contribution to THE
Class A Common Stock acquired from
employees
Net cash used in financing activities
Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
period
Cash and cash equivalents at end of period
Supplemental disclosures of cash flow
information:
Interest paid
Taxes paid
Non-cash investing activities:
Refinancing of bridge loan
Total non-cash investing activities
-
-
(305,018)
(1,623,906)
30,360
(52,256)
(136,843)
422,759
$
942,889
806,046
$
520,130
942,889
$
$
76,659
87,354
$
$
369,200
60,406
$
$
-
$
$
-
Auditing of Historical Financial
Information
The auditors of the Guarantor have issued unqualified
auditor's reports in respect of each annual financial
statement for the two financial years ended 31
December 2008 and 31 December 2009.
The Guarantor has not been and is not involved in any
governmental, legal or arbitration proceedings
(including any such proceedings which are pending or
threatened of which the Guarantor is aware) during a
period covering the last 12 months which may have, or
have had in the recent past, significant effects on the
Guarantor and/or IB Group’s financial position or
profitability.
Significant Change in Guarantor’s
Financial or Trading Position
There has been no significant change in the
Guarantor’s financial or trading position since the date
of the last audited financial statement of the Guarantor.
Share Capital
The Guarantor’s membership interests are owned by
IBG Holdings LLC (approximately 89.5%) and
Interactive Brokers Group, Inc. (approximately 10.5%).
Material Contracts
The Guarantor has not entered into material contracts
not in the ordinary course of its business, which could
result in the Guarantor or any member of the IB Group
being under an obligation or entitlement that is material
to the Guarantor’s ability to meet its obligation to
security holders in respect of the securities being
issued.
29
1.6
SUMMARY OF THE DESCRIPTION OF THE DERIVATIVE SECURITIES
Derivative Securities
The Derivative Securities constitute non-interest bearing notes within the meaning of section
793 German Civil Code. The Derivative Securities entitle the securityholder to receive a
settlement amount from the Issuer in respect of the Derivative Securities, which is an amount
dependent on the development of the relevant underlyings on which the Derivative Securities
are based. These underlyings may be a share, an index, a currency exchange rate, a precious
metal, a commodity, an interest rate, or a fund unit and will be determined in the Final Terms.
The price of the respective underlying on the date on which the underlying is valuated and the
ratio, which is the proportion of the number of underlyings to the number of Derivative
Securities, form among others a point of reference for the calculation of the settlement amount.
The terms and conditions of the Derivative Securities contain provisions which set out the claim
for the payment of the settlement amount. The settlement amount equals to the price of the
respective underlying on the date on which the underlying is valuated multiplied with the ratio. A
description of the underlying and the place where information on the underlying can be viewed
is provided in the Final Terms. The Derivative Securities may be capital protected, in which case
the settlement amount is at least equal to the capital protected amount, i.e. the minimum
2
amount to repay the Derivative Securities or there may be no capital protection.
Under this Base Prospectus, Interactive Brokers Financial Products S.A. shall issue the
respective Derivative Securities as Issuer in accordance with German law. All payments relating
to the Derivative Securities are made in the currency as set out in the Final Terms.
The Derivative Securities expire - provided that the Derivative Securities are not terminated or
expired early - on the expiration date as set out in the Final Terms.
Status
The Derivative Securities constitute direct, unsecured and unsubordinated obligations of the
Issuer, ranking pari passu among themselves and with all other present and future unsecured
and unsubordinated obligations of the Issuer, other than obligations preferred by mandatory
provisions of law.
1.7
SUMMARY OF THE DESCRIPTION OF THE PROGRAMME
Arranger and Dealer
Timber Hill (Europe) AG (THE)
The Issuer may appoint other dealers in accordance
with the provisions of the Dealer Agreement in relation
to the Programme as a whole or in relation to one or
more Series (the Dealers).
2
Fiscal and Paying Agent
Timber Hill (Europe) AG, unless otherwise specified in
the Final Terms.
Type of Programme
Programme for the issue of bearer Derivative
Securities (Inhaberschuldverschreibungen) the terms
and conditions of which are governed by German law.
Any payment upon exercise or redemption, as the
case may be, of the Derivative Securities will be
determined by reference to one or more underlyings.
Guarantee
The Guarantor will unconditionally and irrevocably
guarantee the due and punctual settlement in full of all
Whether the Derivative Securities are vested with a capital guarantee (i.e. a Minimum Repayment Amount is guaranteed) or
without a capital guarantee is set out in the Final Terms.
30
obligations due and owing by the Issuer under the
Derivative Securities pursuant to a Guarantee
Agreement between the Issuer and the Guarantor.
Issuance in Series
The Derivative Securities will be issued in Series (each
also an Issue). Each Issue may comprise one or more
tranches (Tranches and each a Tranche) issued on
different issue dates. The Derivative Securities of each
Issue will all be subject to identical terms, except that
the issue date and the issue price may be different in
respect of different Tranches.
Taxation
All payments under the Derivative Securities will be
made free and clear of, and without withholding or
deduction for, any taxes, duties, assessments or
governmental charges of whatever nature imposed,
levied, collected, withheld or assessed by Luxembourg
or the United States of America (as the case may be)
or any political subdivision or any authority of the
Luxembourg or the United States of America (as the
case may be) that has power to tax unless such
withholding or deduction is required by law.
If such withholding or deduction is required by law, the
Issuer will not pay any additional amounts.
Selling Restrictions
There will be specific restrictions on the offer and sale
of the Derivative Securities and the distribution of
offering material in the United States of America and
the European Economic Area and such other
restrictions as may be required under applicable law in
connection with the offering and sale of a particular
Tranche of the Derivative Securities.
Form of the Derivative Securities
The Derivative Securities will be issued as bearer
securities (Inhaberschuldverschreibungen) governed
by German law.
Approval and Notification
Approval for this Base Prospectus pursuant to Article
13 of the Prospectus Directive and Section 13 of the
German
Securities
Prospectus
Act
(Wertpapierprospektgesetz) has exclusively been
sought from the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) as the competent authority.
The BaFin has approved this Base Prospectus
pursuant to § 13 paragraph (1) sentence 2 of the
German Securities Prospectus Act, which requires the
scrutiny of the Base Prospectus in relation to its
completeness, coherence and comprehensibility.
As at the date of this Base Prospectus, a notification of
the Base Prospectus pursuant to Articles 17 and 18 of
the Prospectus Directive to the United Kingdom has
been applied for. In addition, the Issuer may request
the competent authority to provide competent
authorities in additional host Member States within the
European Union with a notification pursuant to Articles
17 and 18 of the Prospectus Directive.
Listing/Admission to an alternative
The Final Terms will determine for the specific Tranche
31
segment of a stock exchange
whether the Derivative Securities will be included in an
alternative segment (Freiverkehr) of a stock exchange
or whether Derivative Securities will not be admitted to
trading at all.
32
2
DEUTSCHE ÜBERSETZUNG DER ZUSAMMENFASSUNG
Die nachfolgenden Ausführungen stellen eine Zusammenfassung (die Zusammenfassung) der
wesentlichen Merkmale und Risiken, die auf die Interactive Brokers Financial Products S.A. (die
Emittentin), IBG LLC (die Garantin) und die unter dem Zertifikate- und
Optionsscheinprogramm der Emittentin (das Programm) zu begebenden Zertifikate und
Optionsscheine (die Derivativen Wertpapiere) zutreffen, dar. Die Zusammenfassung ist als
Einführung zu diesem Basisprospekt (der Basisprospekt) zu verstehen. Der Anleger sollte jede
Entscheidung zur Anlage in die Derivativen Wertpapiere auf die Prüfung des gesamten
Basisprospekts einschließlich etwaiger Nachträge hierzu und der maßgeblichen endgültigen
Bedingungen (die Endgültigen Bedingungen) stützen. Wenn vor einem Gericht Ansprüche
aufgrund der in diesem Basisprospekt, einem etwaigen Nachtrag oder den Endgültigen
Bedingungen enthaltenen Informationen geltend gemacht werden, könnte der als Kläger
auftretende Anleger in Anwendung der einzelstaatlichen Rechtsvorschriften der Staaten des
Europäischen Wirtschaftsraums die Kosten für die Übersetzung des Basisprospekts, etwaiger
Nachträge und der maßgeblichen Endgültigen Bestimmungen vor Prozessbeginn zu tragen
haben. Die Emittentin, die für diese Zusammenfassung verantwortlich ist, kann haftbar gemacht
werden, jedoch nur für den Fall, dass die Zusammenfassung irreführend, unrichtig oder
widersprüchlich ist, wenn sie zusammen mit anderen Teilen des Prospekts gelesen wird.
Die nachstehende Zusammenfassung ist keine vollständige Darstellung, sondern gehört
zum Basisprospekt und ist im Zusammenhang mit dem Basisprospekt insgesamt sowie,
in Bezug auf eine Serie von Derivativen Wertpapieren mit den Endgültigen Bedingungen
zu lesen.
2.1
ZUSAMMENFASSUNG DER RISIKOFAKTOREN
Der Erwerb von unter dem Angebotsprogramm begebenen Derivaten Wertpapieren ist mit den
im Folgenden zusammengefassten Risiken verbunden. Die konkreten Risiken hinsichtlich der
Basiswerte können in den jeweiligen Endgültigen Bedingungen dargestellt werden. Diese
müssen daher immer mit in die Betrachtung der mit einer Anlage in die Derivativen Wertpapiere
verbundenen Risiken einbezogen werden. In diesem Zusammenhang sollten Anleger neben
den übrigen in diesem Prospekt und in den die Emission betreffenden Endgültigen
Bedingungen enthaltenen Informationen über die Emittentin, die Garantin und die Derivativen
Wertpapiere auch die Beschreibung der Risiken für ihre Anlageentscheidung heranziehen.
Anleger sollten bei der Entscheidung über einen Erwerb von Derivativen Wertpapieren zunächst
ihre jeweilige finanzielle Situation und ihre Anlageziele berücksichtigen und die Eignung der
betreffenden Derivativen Wertpapiere für das Erreichen des angestrebten Anlagezieles
angesichts ihrer persönlichen Umstände immer vor dem Erwerb mit ihren eigenen FinanzRechts- und Steuerberatern erörtern.
Sollte einer oder sollten mehrere der unten beschriebenen Umstände eintreten, könnte
es zu wesentlichen und nachhaltigen Kursrückgängen der Derivativen Wertpapiere oder
im Extremfall zu einem Totalverlust des vom Anleger eingesetzten Kapitals kommen.
Selbst wenn die Derivativen Wertpapiere bei Fälligkeit mit einem Kapitalschutz in Höhe des
Mindestrückzahlungsbetrages (der Mindestrückzahlungsbetrag) ausgestaltet sind, und damit
das Verlustrisiko begrenzt ist, trägt jeder Inhaber der Derivativen Wertpapiere (der Anleger) das
3
Risiko, dass sich die Situation der Emittentin verschlechtert.
3
Ob die Derivativen Wertpapiere mit einer Kapitalgarantie ausgestaltet sind (d.h. ein Mindestrückzahlungsbetrag garantiert
wird) oder ob keine Kapitalgarantie besteht, ist in den Endgültigen Bedingungen geregelt.
33
2.2
ZUSAMMENFASSUNG DER MIT DER GARANTIN UND DER EMITTENTIN VERBUNDENEN
RISIKEN
Zusammenfassung der mit der Garantin verbundenen Risiken
Die Garantin als Muttergesellschaft der Interactive Brokers Unternehmensgruppe (bestehend
aus der Garantin und ihren Tochtergesellschaften, definiert als IB Gruppe) ist eine
Holdinggesellschaft, deren maßgebliche Vermögenswerte aus Aktien und aus sonstigen
aktienähnlichen Beteiligungen an Tochtergesellschaften sowie aus Forderungen gegen solche
Gesellschaften bestehen. Infolgedessen bezieht sie ihre Einkünfte beinahe ausschließlich von
ihren Tochtergesellschaften. Hieraus folgt, dass die Garantin zur Gewinnung der Mittel, die sie
zur Erfüllung ihrer Verbindlichkeiten aus von ihr garantierten Derivativen Wertpapieren benötigt,
auf Dividenden und sonstige Ausschüttungen ihrer Tochtergesellschaften bzw. auf von diesen
gewährte Darlehen angewiesen ist und der Inhaber der Derivativen Wertpapiere seine
Investition ganz oder teilweise verlieren kann.
Die finanzielle Situation sowie die Geschäftsergebnisse der IB Gruppe, von denen jegliche
Dividenden und sonstigen Ausschüttungen bzw. Darlehen an die Garantin abhängig sind,
können durch ungewisse bzw. unvorteilhafte Umstände wirtschaftlicher, marktbezogener,
rechtlicher oder sonstiger Art betroffen sein. Dies schließt unter anderem die folgenden
Umstände ein:
Marktrisiko
Der
Begriff
„Marktrisiko“
beschreibt
Veränderungen
von
Zinssätzen
und
Währungskursen,
Kursen
von
Finanzinstrumenten und Bewertungen von
Immobilien, sowie Anstiege der Volatilität.
Wettbewerbsintensives Marktumfeld
Der Begriff „Wettbewerbsintensives Marktumfeld“
beschreibt
den
Umstand,
dass
die
Wettbewerbsfähigkeit der Garantin in den
globalen Finanzmärkten von Faktoren wie ihrer
Reputation, der Qualität ihrer Dienstleistungen,
ihrer Produktinnovation, ihren Fähigkeiten bei der
Ausführung, der Preisgestaltung, den Verkäufen
sowie vom Talent ihrer Mitarbeiter abhängig ist.
Geschäftsumfeld
Der Begriff „Geschäftsumfeld“ beschreibt die
Beeinflussung der globalen Finanzmärkte durch
geopolitische Entwicklungen.
Liquidität
Der Begriff „Liquidität“ beschreibt Liquidität und
Liquiditätsmanagement, welche durch das (wenn
auch nur kurzzeitige) Unvermögen der Garantin
beeinflusst werden, Zugang zu den kurz- bzw.
langfristigen Fremdkapitalmärkten oder den
Märkten
für
Wertpapierpensionsoder
Wertpapierleihgeschäfte zu erhalten, bzw.
Kreditfazilitäten in Anspruch zu nehmen.
Bonitätsbewertungen (Credit Ratings)
Der Begriff „Bonitätsbewertungen“ beschreibt die
Fähigkeit bzw. die Kosten der Garantin, Zugang
zu den Märkten für unbesicherte Mittelaufnahme
in Abhängigkeit von ihrer Bonitätsbewertung zu
erhalten.
Kreditrisiken
Der Begriff „Kreditrisiken“ beschreibt die (wenn
auch unvorhersehbare bzw. fern liegende)
Möglichkeit, dass eine Vertragspartei nicht fähig
sein sollte, ihren vertraglichen Verpflichtungen
34
gegenüber der Garantin nach zu kommen.
Betriebsrisiko
Der Begriff „Betriebsrisiko“ beschreibt das
Verlustrisiko, dass sich aus den unzulänglichen
oder
fehlgeschlagenen
internen
oder
ausgelagerten
betrieblichen
Prozessen,
personenbezogenen
Problemen,
Infrastrukturproblemen sowie Problemen mit
Technologiesystemen ergibt.
Rechtliches und Regulatorisches Risiko,
Reputationsrisiko
Der Begriff „Rechtliches und Regulatorisches
Risiko, Reputationsrisiko“, beschreibt jegliche
Erhöhung der Kosten der Einhaltung der
umfangreichen Vorschriften, denen die Finanzund
Wertpapierindustrie
in
vielen
Rechtsordnungen unterliegt, in denen die
Garantin tätig ist, sowie der rechtlichen,
reputationsbezogenen
und/oder
verwaltungsbezogenen Kosten, die mit etwaigen
Verstößen dieser Vorschriften einhergehen.
Insbesondere können ungewisse bzw. unvorteilhafte Umstände wirtschaftlicher,
marktbezogener, rechtlicher oder sonstiger Art folgende, nicht abschließend genannte Risiken
beinhalten:

Das Geschäft der IB Gruppe kann durch weltweite Ereignisse, die außerhalb ihres
Einflusses liegen, geschädigt werden, einschließlich eines allgemeinen Rückgangs des
Wertpapierhandels.

Weil der Erlös und die Rentabilität der IB Gruppe vom Handelsvolumen abhängt, liegt
eine Anfälligkeit für erhebliche Schwankungen vor, die sich schwer vorherzusagen
lassen.

Weil die IB Gruppe auf ihre Computersoftware angewiesen ist, können im Falle einer
Störung derselben der IB Gruppe erhebliche finanzielle Nachteile entstehen. Im Zuge der
Weiterentwicklung der Software können technologische Ausfälle zum Nachteil der IB
Gruppe entstehen.

Der Geschäftsbetrieb der IB Gruppe kann aufgrund eines systemischen Marktereignisses
gefährdet sein.

Bei der IB Gruppe können Betriebsverluste aufgrund ihrer Market-Making Tätigkeit
entstehen.

Der Geschäftsbetrieb der IB Gruppe kann wegen geminderter Kursdifferenz der
Wertpapierpreise (spreads), geringem Handelsaufkommen und Handel durch Market
Maker und/oder Specialists gestört werden.

Der IB Gruppe können im Falle des Scheiterns ihres firmeneigenen Preismodells Verluste
ihrer Market-Making Tätigkeit entstehen.

Die Bewertung der von der IB Gruppe gehaltenen Finanzinstrumente kann jederzeit
wesentliche und zeitweise ungewöhnliche Schwankungen des Wertes und des Ertrages
derselben zur Folge haben.

Die IB Gruppe kann Verlusten ausgesetzt sein, die wegen mangelnder Informationen
entstehen.
35

Gesetzliche Vorgaben und bestimmte Market-Maker können verlangen, dass die IB
Gruppe unprofitable Geschäfte tätigt oder verhindern, dass die IB Gruppe profitable
Geschäfte tätigt.

Die IB Gruppe kann wegen ihrer Clearing- und Abwicklungstätigkeit möglichen Verlusten
ausgesetzt sein.

Die IB Gruppe ist auf ihre firmeneigene Technologie angewiesen. Die Zukunft der IB
Gruppe kann nachteilig beeinträchtigt werden, falls die IB Gruppe die technologische
Überlegenheit in ihrer Branche nicht erhalten kann.

Der Verlust von qualifizierten Mitarbeitern würde die Geschäfte der IB Gruppe nachteilig
beeinflussen.

Das Geschäft der IB Gruppe ist Risiken im Zusammenhang mit ihren internationalen
Aktivitäten ausgesetzt.

Die IB Gruppe hat keine vollständig redundanten Systeme. Systemausfälle können dem
Geschäftsbetrieb der IB Gruppe schaden.

Der Ausfall von Fremdsystemen, auf welche die IB Gruppe angewiesen ist, kann den
Geschäftsbetrieb nachteilig beeinflussen.

Der direkte Marktzugang der IB Gruppe sowie das clearing und non-clearing
Maklergeschäft sind intensivem Wettbewerb ausgesetzt.

Jegliche zukünftige Akquisition kann bedeutende Transaktionskosten, Integrationsrisiken
und Konsolidierungsrisiken und Risiken im Zusammenhang mit dem Eintritt in neue
Märkte zur Folge haben und die IB Gruppe könnte außer Stande sein, das konsolidierte
Unternehmen profitabel zu führen.

Mit dem Internet verbundene Problemstellungen können das Wachstum in der Nutzung
von der IB Gruppe angebotenen Dienstleistungen verlangsamen oder reduzieren.

Die Computer-Infrastruktur der IB Gruppe kann durch Sicherheitsverstöße angreifbar
sein. Solche Probleme können über das Internet übermittelte vertrauliche Daten
gefährden, zur Unterbrechung der Geschäftstätigkeit und zur Haftung der IB Gruppe
gegenüber Dritten führen.

Die IB Gruppe könnte außer Stande sein, ihre Immaterialgüterrechte zu schützen oder
könnte gehindert sein, Immaterialgüterrechte für ihre Geschäftstätigkeit zu nutzen.

Der zukünftige Erfolg der IB Gruppe ist abhängig von ihrer Reaktion auf die Nachfrage
nach neuen Dienstleistungen, Produkten und Technologien.

Die Ausweitung der Market-Making Aktivitäten der IB Gruppe auf forex-basierte Produkte
umfasst bedeutende Risiken. Unvorhersehbare Ereignisse in derartigen Geschäften
können eine nachteilige Beeinflussung auf die Geschäftstätigkeit der IB Gruppe und
dessen Finanzlage und Geschäftsergebnis haben.

Die IB Gruppe unterliegt einem Adressenausfallrisiko, indem Ausfälle von Parteien mit
denen die IB Gruppe in Geschäftsbeziehungen steht, nachteilige Auswirkungen auf die
geschäftlichen Aktivitäten, die Finanzverfassung und/oder die Geschäftsergebnisse
haben können.
Zusammenfassung der mit der Emittentin verbundenen Risiken
Wie jede Gesellschaft der IB Gruppe kann die Emittentin, zusätzlich zu den im
vorhergehenden Abschnitt genannten Risiken, durch ungewisse bzw. unvorteilhafte
36
Umstände wirtschaftlicher, marktbezogener, rechtlicher oder sonstiger Art betroffen sein, die
sich aller Wahrscheinlichkeit auf die IB Gruppe auswirken können. Durch den Erwerb von der
Emittentin begebener Wertpapiere übernehmen Anleger das Kreditrisiko der Emittentin, d.h.
das Risiko, dass die Emittentin nicht in der Lage sein wird, ihren (möglichen)
Zahlungsverpflichtungen unter den von ihr begebenen und von den Anlegern erworbenen
Wertpapieren nachzukommen.
Die Emittentin kann ihre Verpflichtungen durch Begründung derivativer Instrumente mit anderen
Gesellschaften der IB Gruppe absichern. Deshalb kann die Fähigkeit der Emittentin, ihre
Zahlungsverpflichtungen zu erfüllen, dadurch beeinträchtigt werden, dass andere
Gesellschaften der IB Gruppe nicht in der Lage sind oder es versäumen, ihre gegenüber der
Emittentin geschuldeten Verpflichtungen zu erfüllen.
Für die Emittentin liegt keine Bonitätsbewertung (Credit Rating) vor, und soweit die Emittentin
die ungesicherten Finanzierungsmärkte in Anspruch nimmt, kann die diesbezügliche Fähigkeit
der Emittentin auch von den Bonitätsbewertungen der IB Gruppe abhängen.
Verschiedene Gesellschaften der IB Gruppe sind in eine Reihe gerichtlicher,
aufsichtsrechtlicher und schiedsgerichtlicher Verfahren verwickelt, die Angelegenheiten
betreffen, die im Zusammenhang mit der Geschäftstätigkeit dieser Gesellschaften stehen.
Mögliche Verluste im Zusammenhang mit den Prozessen gegen die IB Gruppe können sich in
erheblicher Weise auf das operative Ergebnis zukünftiger Zeiträume auswirken, je nach Höhe
der Erträge für diese Zeiträume.
2.3
ZUSAMMENFASSUNG DER MIT DEN DERIVATIVEN WERTPAPIEREN VERBUNDENEN
RISIKEN
Zusammenfassung der mit den Optionsscheinen verbundenen Risiken
Für den Erwerber der Optionsscheine ist eine Investition mit produktspezifischen Risiken
verbunden. So wird der Wert eines Optionsscheins nicht nur von den Kursveränderungen des
Basiswerts beeinflusst, sondern hängt zusätzlich von einer Reihe weiterer Faktoren ab. Eine
Wertminderung der Optionsscheine kann daher selbst dann eintreten, wenn der Kurs des
Basiswerts konstant bleibt. Potenzielle Erwerber sollten beachten, dass Kursveränderungen
(oder auch schon das Ausbleiben einer erwarteten Kursveränderung) des Basiswerts den Wert
des jeweiligen Optionsscheins mindern können. Dieses Risiko besteht unabhängig von der
finanziellen Leistungsfähigkeit der Emittentin.
Eines der wesentlichen Merkmale des Optionsscheins als Kapitalanlage ist sein so genannter
Leverage-Effekt: Eine Veränderung des Werts des Basiswerts kann eine überproportionale
Veränderung des Werts des Optionsscheins zur Folge haben. Dementsprechend sind mit den
Optionsscheinen auch überproportionale Verlustrisiken verbunden, wenn sich der Kurs des
Basiswerts ungünstig entwickelt. Beim Kauf eines bestimmten Optionsscheins ist deshalb zu
berücksichtigen, dass je größer der Leverage-Effekt eines Optionsscheins ist, umso größer
auch das mit ihm verbundene Verlustrisiko ist. Ferner ist zu beachten, dass der Leverage-Effekt
typischerweise umso größer ist, je kürzer die (Rest-) Laufzeit des Optionsscheins ist.
Neben der Laufzeit der Optionsscheine, der Häufigkeit und der Intensität von
Kursschwankungen (Volatilität) des Basiswerts oder dem allgemeinen Zins- und
Dividendenniveau bzw. der allgemeinen Entwicklung der Devisenmärkte sind nach Auffassung
der Emittentin vor allem folgende Umstände für den Wert eines Optionsscheins wesentlich bzw.
können aus folgenden Umständen Risiken für die Erwerber der Optionsscheine erwachsen.
Jeder potentielle Erwerber muss auf der Grundlage seiner eigenen unabhängigen Einschätzung
und der entsprechenden unabhängigen den Umständen entsprechenden professionellen
Beratung entscheiden, ob der Kauf der Optionsscheine in jeder Hinsicht seinen eigenen
finanziellen Möglichkeiten, Zielen und Umständen (oder, für den Fall, dass die Optionsscheine
treuhänderisch erworben werden, derjenigen des Begünstigten) entspricht, mit allen geltenden
Anlagerichtlinien, Richtlinien und Einschränkungen (je nachdem, ob die Optionsscheine im
eigenen Namen oder treuhänderisch erworben werden) übereinstimmt und sich als geeignete
37
angemessene und zulässige Investition darstellt (für sich selbst oder, für den Fall, dass die
Optionsscheine treuhänderisch erworben werden, für den Begünstigten). Dies gilt unabhängig
von den offensichtlichen und erheblichen Risiken, die mit einer Investition oder der
Inhaberschaft an den Optionsscheinen verbunden sind.
Weitere Besonderheiten der Optionsscheinstruktur
Potenzielle Erwerber der Optionsscheine müssen vor einer Investition in die Optionsscheine
beachten, dass die folgenden Besonderheiten der Optionsscheine, soweit diese in den
jeweiligen Endgültigen Bedingungen angegeben werden, Auswirkungen auf den Wert der
Optionsscheine bzw. die Höhe des nach den Bedingungen der Optionsscheine gegebenenfalls
zu zahlenden Geldbetrags haben können, und die Optionsscheine dementsprechend
besondere Risikoprofile aufweisen:
Umfang der Teilnahme an der Entwicklung des Basiswerts
Die Verwendung des Bezugsverhältnisses innerhalb der Bestimmung des Optionsrechts führt
dazu, dass die Optionsscheine zwar wirtschaftlich einer Direktinvestition in den Basiswert
ähnlich sind, mit einer solchen jedoch insbesondere deshalb nicht vollständig vergleichbar sind,
weil die Wertpapiergläubiger an der entsprechenden Wertentwicklung nicht im Verhältnis 1:1
partizipieren, sondern in dem Verhältnis des Bezugsverhältnisses teilnehmen.
Wechselkursrisiko
Soweit in den Endgültigen Bedingungen angegeben, wird der durch die Optionsscheine
verbriefte Anspruch der Wertpapiergläubiger mit Bezug auf eine von der Auszahlungswährung
abweichenden Währung, Währungseinheit bzw. Rechnungseinheit berechnet und/oder der Wert
des Basiswerts in einer von der Auszahlungswährung abweichenden Währung,
Währungseinheit oder Rechnungseinheit bestimmt, weshalb sich potenzielle Erwerber der
Optionsscheine darüber im Klaren sein sollten, dass mit der Anlage in die Optionsscheine
Risiken aufgrund von schwankenden Wechselkursen verbunden sein können und dass das
Verlustrisiko nicht allein von der Entwicklung des Werts des Basiswerts, sondern auch von
ungünstigen Entwicklungen des Werts der fremden Währung, Währungseinheit bzw.
Rechnungseinheit abhängt.
Derartige Entwicklungen können das Verlustrisiko der Wertpapiergläubiger zusätzlich dadurch
erhöhen,
dass
sich
durch
eine
ungünstige
Entwicklung
des
betreffenden
Währungswechselkurses der Wert der erworbenen Optionsscheine während ihrer Laufzeit
entsprechend vermindert oder sich die Höhe des möglicherweise unter den Optionsscheinen zu
zahlenden Auszahlungsbetrags entsprechend vermindert. Währungswechselkurse werden von
Angebots- und Nachfragefaktoren auf den international en Devisenmarkten bestimmt, die
volkswirtschaftlichen Faktoren, Spekulationen und Maßnahmen von Regierungen und
Zentralbanken ausgesetzt sind (zum Beispiel währungspolitische Kontrollen oder
Einschränkungen).
Besonderheiten bei Optionsscheinen auf Währungswechselkurse, Rohstoffe bzw.
Edelmetalle
Es ist zu beachten, dass Währungswechselkurse, Rohstoffe bzw. Edelmetalle als Basiswert 24
Stunden am Tag durch die Zeitzonen in Australien, Asien, Europa und Amerika gehandelt
werden. Potenzielle Erwerber der Optionsscheine sollten somit beachten, dass es jederzeit und
auch außerhalb der lokalen Handelszeiten oder der Handelszeiten der Emittentin, der
Berechnungsstelle oder des Anbieters zum Erreichen, Überschreiten bzw. Unterschreiten einer
nach den Bedingungen der Optionsscheine maßgeblichen Grenze oder Schwelle kommen
kann.
Beschränkung der Ausübung der Optionsscheine durch die Wertpapiergläubiger
Soweit in den Endgültigen Bedingungen angegeben, kann das in den Bedingungen der
Optionsscheine, die sich, unmittelbar oder mittelbar, auf deutsche Aktien als Basiswert
38
beziehen, verbriefte Optionsrecht an bestimmten Tagen nicht ausgeübt werden. Hierbei handelt
es sich um den Tag, an dem die ordentliche Hauptversammlung der deutschen
Aktiengesellschaft, die die den Optionsscheinen zu Grunde liegenden Aktien begeben hat,
stattfindet, sowie den diesem Tag unmittelbar vorangehenden Berechnungstag (ex Dividende
Tag). Die Endgültigen Bedingungen können zudem vorsehen, dass die Wertpapiergläubiger die
Optionsscheine nur zu bestimmten Terminen ausüben können. Wenn die Ausübungserklärung
nicht fristgerecht zu diesem Ausübungstermin vorliegt, kann eine erneute Ausübung erst wieder
zu dem nächsten in den Bedingungen der Optionsscheine vorgesehenen Termin erfolgen.
Beschränkung der Ausübung der Optionsscheine durch die Wertpapiergläubiger durch
eine Mindestausübungsanzahl
Soweit in den Endgültigen Bedingungen angegeben, muss gemäß den Bedingungen der
Optionsscheine jeder Wertpapiergläubiger von Optionsscheinen eine festgelegte Mindestanzahl
an Optionsscheinen, die so genannte Mindestausübungsanzahl, vorlegen, um das in den
Optionsscheinen verbriefte Optionsrecht ausüben zu können. Wertpapiergläubiger, die nicht
über die erforderliche Mindestausübungsanzahl verfügen, müssen somit entweder ihre
Optionsscheine verkaufen oder zusätzliche Optionsscheine kaufen (wobei dafür jeweils
Transaktionskosten anfallen).
Kündigung und vorzeitige Tilgung der Optionsscheine durch die Emittentin
Potenziellen Erwerbern der Optionsscheine sollte bewusst sein, dass die Emittentin gemäß den
Bedingungen der Optionsscheine die Möglichkeit hat, die Optionsscheine insgesamt vor dem
Verfalltag zu kündigen und vorzeitig zu tilgen. Wenn die Emittentin die Optionsscheine vor dem
Verfalltag kündigt und vorzeitig tilgt, hat der Wertpapiergläubiger das Recht, die Zahlung eines
Geldbetrags in Bezug auf die vorzeitige Tilgung zu verlangen. Der Wertpapiergläubiger hat
jedoch keinen Anspruch auf irgendwelche weiteren Zahlungen auf die Optionsscheine nach
dem maßgeblichen Kündigungstag.
Der Wertpapiergläubiger trägt damit das Risiko, dass er an der Wertentwicklung des Basiswerts
nicht in dem erwarteten Umfang und über den erwarteten Zeitraum partizipieren kann.
Im Falle einer Kündigung der Optionsscheine durch die Emittentin trägt der Wertpapiergläubiger
zudem das Wiederanlagerisiko. Dies bedeutet, dass er den durch die Emittentin im Falle einer
Kündigung gegebenenfalls ausgezahlten Geldbetrag möglicherweise nur zu ungünstigeren
Marktkonditionen als denen, die beim Erwerb der Optionsscheine vorlagen, wiederanlegen
kann.
Keine Kündigungsmöglichkeit der Wertpapiergläubiger
Die Optionsscheine können während ihrer Laufzeit nicht von den Wertpapiergläubigern
gekündigt werden. Vor Laufzeitende ist, soweit es nicht zu einer Kündigung durch die Emittentin
und einer vorzeitigen Tilgung der Optionsscheine bzw., soweit in den Endgültigen Bedingungen
angegeben, einer Ausübung des Optionsrechts durch die Wertpapiergläubiger gemäß den
Bedingungen der Optionsscheine kommt, die Realisierung des durch die Optionsscheine
gegebenenfalls verbrieften wirtschaftlichen Werts (bzw. eines Teils davon) nur durch
Veräußerung der Optionsscheine möglich.
Mögliche Wertminderung des Basiswerts
Soweit die Laufzeit der Optionsscheine durch die Emittentin vorzeitig durch Kündigung gemäß
den Bedingungen der Optionsscheine beendet wird, müssen potenzielle Erwerber der
Optionsscheine beachten, dass eine möglicherweise negative Entwicklung des Kurses des
Basiswerts nach dem Zeitpunkt der Kündigungserklärung bis zur Ermittlung des für die
Berechnung des dann zahlbaren Geldbetrags verwendeten Kurses des Basiswerts zu Lasten
der Wertpapiergläubiger geht.
39
Nachteilige Auswirkungen von Anpassungen des Optionsrechts
Die Emittentin ist - soweit in den Endgültigen Bedingungen angegeben - gemäß den
Bedingungen der Optionsscheine bei Vorliegen eines potenziellen Anpassungsereignisses
berechtigt, Anpassungen der Bedingungen der Optionsscheine vorzunehmen. Diese
Anpassungen können sich negativ auf den Wert der Optionsscheine auswirken.
Einfluss von Nebenkosten
Provisionen und andere Transaktionskosten, die beim Kauf oder Verkauf von Optionsscheinen
anfallen, können - insbesondere in Kombination mit einem niedrigen Auftragswert - zu
Kostenbelastungen führen, die den unter den Optionsscheinen gegebenenfalls zu zahlenden
Auszahlungsbetrag der Höhe nach extrem vermindern können. Potenzielle Erwerber sollten
sich deshalb vor Erwerb eines Optionsscheins über alle beim Kauf oder Verkauf des
Optionsscheins anfallenden Kosten einschließlich etwaiger Kosten ihrer Depotbank bei Erwerb
und bei Fälligkeit der Optionsscheine informieren.
Risiko ausschließende oder einschränkende Geschäfte
Potenzielle Erwerber der Optionsscheine dürfen nicht darauf vertrauen, dass während der
Laufzeit der Wertpapiere jederzeit Geschäfte abgeschlossen werden können, durch die
relevante Risiken ausgeschlossen oder eingeschränkt werden können; tatsächlich hängt dies
von den Marktverhältnissen und den jeweils zugrunde liegenden Bedingungen ab. Unter
Umständen können solche Geschäfte nur zu einem ungünstigen Marktpreis getätigt werden, so
dass für den Anleger ein entsprechender Verlust entsteht.
Handel in den Optionsscheinen / Mangelnde Liquidität
Es lässt sich nicht voraussagen, ob und inwieweit sich ein Sekundärmarkt für die
Optionsscheine entwickelt, zu welchem Preis die Optionsscheine in diesem Sekundärmarkt
gehandelt werden und ob dieser Sekundärmarkt liquide sein wird oder nicht. Potenzielle
Erwerber sollten deshalb nicht darauf vertrauen, den jeweiligen Optionsschein zu einer
bestimmten Zeit oder einem bestimmten Kurs veräußern zu können.
Verbriefung und Verwahrung der Optionsscheine
Optionsscheine, die unter diesem Programm begeben werden, sind als Inhaberpapiere
(Dauerglobalurkunde(n) und Vorläufige Globalurkunde(n)) verbrieft.
Die Dauerglobalurkunde bzw. die Vorläufige Dauerglobalurkunde wird bei der Verwahrstelle im
Auftrag der Clearingstelle entsprechend der anwendbaren Vorschriften der Verwahr- und der
Clearingstelle verwahrt. Die Optionsscheine sind als Miteigentumsanteile an der
Dauerglobalurkunde bzw. der Vorläufigen Dauerglobalurkunde in Übereinstimmung mit den
maßgeblichen Regeln der Clearingstelle (die CS-Regeln) übertragbar und sind im
Effektengiroverkehr ausschließlich in der Kleinsten handelbaren Einheit übertragbar. Die
Übertragung wird mit Eintragung der Übertragung in den Büchern der Clearingstelle wirksam.
Hinsichtlich Übertragungen, Zahlungen und die Kommunikation mit der Emittentin können sich
die Wertpapiergläubiger ausschließlich auf die Verfahren der Verwahr- und der Clearingstelle
berufen. Die Wertpapiergläubiger haben keinen Anspruch, die Lieferung von effektiven
Wertpapieren zu verlangen.
Unabhängig davon, ob die Optionsscheine in einer Dauerglobalurkunde oder einer Vorläufigen
Globalurkunde verbrieft werden, trifft die Emittentin keinerlei Verantwortlichkeit oder Haftung
unter jedweden Umständen für Handlungen und Unterlassungen der Clearingstelle oder, soweit
in den Endgültigen Bedingungen angegeben, der Verwahrstelle als auch für jeden daraus
resultierenden Schaden für Wertpapiergläubiger im Allgemeinen und für Aufzeichnungen über
das wirtschaftliche Eigentum an den Globalurkunden sowie Zahlungen daraus im Besonderen.
40
Preisbildung von Optionsscheinen
Die Preisbildung dieser Optionsscheine orientiert sich im Gegensatz zu den meisten anderen
Wertpapieren regelmäßig nicht an dem Prinzip von Angebot und Nachfrage in Bezug auf die
Optionsscheine, da Wertpapierhändler möglicherweise im Sekundärmarkt eigenständig
berechnete An- und Verkaufskurse für die Optionsscheine stellen. Diese Preisberechnung wird
auf der Basis von im Markt üblichen Preisberechnungsmodellen vorgenommen, wobei der
theoretische Wert von Optionsscheinen grundsätzlich auf Grund des Werts des Basiswerts und
des Werts der weiteren Ausstattungsmerkmale der Optionsscheine, die jeweils wirtschaftlich
gesehen durch ein weiteres Derivatives Finanzinstrument abgebildet werden können, ermittelt
wird.
Die möglicherweise gestellten Kurse müssen dem vom Wertpapierhändler ermittelten inneren
Wert der Optionsscheine nicht entsprechen.
Ausweitung der Spanne zwischen Kauf- und Verkaufskursen und -preisen
Im Falle besonderer Marktsituationen, in denen Sicherungsgeschäfte durch die Emittentin nicht
oder nur unter erschwerten Bedingungen möglich sind, kann es zu zeitweisen Ausweitungen
der Spanne zwischen Kauf- und Verkaufskursen bzw. zwischen Kauf- und Verkaufspreisen
kommen, um die wirtschaftlichen Risiken der Emittentin einzugrenzen. Daher veräußern
Wertpapiergläubiger, die ihre Optionsscheine an der Börse oder im Over-the-Counter-Markt
veräußern möchten, gegebenenfalls zu einem Preis, der erheblich unter dem tatsächlichen
Wert der Optionsscheine zum Zeitpunkt ihres Verkaufs liegt.
Inanspruchnahme von Krediten
Wenn Anleger den Erwerb der Optionsscheine mit einem Kredit finanzieren, müssen sie beim
Nichteintritt ihrer Erwartungen, zusätzlich zu der Rückzahlung und Verzinsung des Kredits,
auch den unter den Optionsscheinen eingetretenen Verlust hinnehmen. Dadurch erhöht sich
das Verlustrisiko des Anlegers erheblich. Erwerber von Optionsscheinen sollten nie darauf
setzen, den Kredit aus Gewinnen eines Wertpapiergeschäfts tilgen sowie die Zinsen darauf
zahlen zu können. Vielmehr sollten vor dem kreditfinanzierten Erwerb eines Optionsscheins die
maßgeblichen wirtschaftlichen Verhältnisse daraufhin überprüft werden, ob der
Wertpapiergläubiger zur Zahlung der Zinsen und gegebenenfalls zur kurzfristigen Tilgung des
Kredits auch dann in der Lage ist, wenn statt der von ihm erwarteten Gewinne Verluste
eintreten.
Einfluss von Hedge-Geschäften der Emittentin auf die Optionsscheine
Die Emittentin kann einen Teil oder den gesamten Erlös aus dem Verkauf der Optionsscheine
für Absicherungsgeschäfte hinsichtlich des Risikos der Emittentin aus der Begebung der
Optionsscheine verwenden. In einem solchen Fall kann die Emittentin oder ein mit ihr
verbundenes Unternehmen Geschäfte abschließen, die den Verpflichtungen der Emittentin aus
den Optionsscheinen entsprechen. Im Allgemeinen werden solche Transaktionen vor dem oder
am Emissionstag der Optionsscheine abgeschlossen; es ist aber auch möglich, solche
Transaktionen nach Begebung der Optionsscheine abzuschließen. Die Emittentin oder ein mit
ihr verbundenes Unternehmen kann jederzeit die für die Auflösung abgeschlossener
Deckungsgeschäfte erforderlichen Schritte ergreifen. Der Kurs des Basiswerts kann im
Einzelfall durch solche Transaktionen negativ beeinflusst werden. Die Eingehung oder
Auflösung dieser Hedge-Geschäfte kann bei Wertpapieren, deren Wert vom Eintritt eines
bestimmten Ereignisses in Bezug auf den Basiswert abhängt, die Wahrscheinlichkeit des
Eintritts oder Ausbleibens des Ereignisses beeinflussen.
Allgemeines
Deshalb ist es unbedingt empfehlenswert, sich mit dem besonderen Risikoprofil des in diesem
Prospekt beschriebenen Produkttyps vertraut zu machen und gegebenenfalls fachkundigen Rat
in Anspruch zu nehmen. Potenzielle Erwerber werden ausdrücklich darauf hingewiesen, dass
es sich bei Optionsscheinen um eine Risikoanlage handelt, die mit der Möglichkeit von
41
Verlusten hinsichtlich des eingesetzten Kapitals verbunden ist. Unabhängig von dem
produktspezifischen Risiko tragen Anleger das Risiko der Verschlechterung der finanziellen
Leistungsfähigkeit der Emittentin und der Garantin, insbesondere das Risiko der Insolvenz der
Emittentin oder Garantin. Potenzielle Erwerber müssen deshalb bereit und in der Lage sein,
Verluste des eingesetzten Kapitals bis hin zum Totalverlust hinzunehmen. In jedem Falle sollten
Erwerber der Optionsscheine ihre jeweiligen wirtschaftlichen Verhältnisse daraufhin überprüfen,
ob sie in der Lage sind, die mit den Optionsscheinen verbundenen Verlustrisiken zu tragen.
Potentielle Interessenkonflikte
Die Emittentin und/oder ihre Tochtergesellschaften und verbundenen Unternehmen sind
berechtigt, von Zeit zu Zeit mit den Derivativen Wertpapieren oder Basiswerten verbundene
Geschäfte abzuschließen oder auf andere Weise mit Bezug auf diese tätig zu werden. Im
Umfeld dieser Tätigkeiten bestehen möglicherweise bestimmte Konflikte zwischen den
Interessen der Gläubiger der Derivativen Wertpapiere und den Interessen der Emittentin und
ihrer Tochtergesellschaften und verbundenen Unternehmen, und solche Transaktionen können
den Wert der Derivativen Wertpapiere nachteilig beeinträchtigen.
Risikofaktoren in Bezug auf die Zertifikate
Für den Erwerber der Zertifikate ist eine Investition mit produktspezifischen Risiken verbunden.
So wird der Wert von Zertifikaten nicht nur von den Kursveränderungen des Basiswerts
bestimmt, sondern hängt zusätzlich von einer Reihe weiterer Faktoren ab. Eine Wertminderung
der Zertifikate kann daher selbst dann eintreten, wenn der Kurs des Basiswerts konstant bleibt.
Die Zertifikate sind damit besonders risikoreiche Instrumente der Vermögensanlage. Im
Vergleich zu anderen Kapitalanlagen ist bei ihnen das Risiko von Verlusten - bis hin zum
Totalverlust des eingesetzten Kapitals einschließlich der aufgewendeten Transaktionskosten besonders hoch.
Potenzielle Erwerber sollten beachten, dass Kursänderungen (oder auch schon das Ausbleiben
einer erwarteten Kursänderung) des Basiswerts den Wert des jeweiligen Zertifikats mindern
können. Angesichts der regelmäßig begrenzten Laufzeit der Zertifikate kann nicht darauf
vertraut werden, dass sich der Wert des Wertpapiers rechtzeitig vor dem Ende der Laufzeit der
Zertifikate wieder erholen wird. Dieses Risiko besteht unabhängig von der finanziellen
Leistungsfähigkeit der Emittentin.
Potenzielle Erwerber sollten sich darüber im Klaren sein, dass es sich bei Zertifikaten um eine
Risikoanlage handelt, die mit der Möglichkeit von Totalverlusten hinsichtlich des eingesetzten
Kapitals verbunden ist. Auch wenn die Zertifikate zum Ende der Laufzeit im Umfang des
jeweiligen Mindestrückzahlungsbetrags kapitalgeschützt sind und das Verlustrisiko zunächst
begrenzt ist, tragen Anleger das Risiko der Verschlechterung der finanziellen Leistungsfähigkeit
der Emittentin. Potenzielle Erwerber müssen deshalb bereit und in der Lage sein, Verluste des
eingesetzten Kapitals bis hin zum Totalverlust hinzunehmen. In jedem Falle sollten Erwerber
der Zertifikate ihre jeweiligen wirtschaftlichen Verhältnisse daraufhin überprüfen, ob sie in der
Lage sind, die mit dem Wertpapier verbundenen Verlustrisiken zu tragen.
Neben der Laufzeit der Zertifikate, der Häufigkeit und der Intensität von Kursschwankungen
(Volatilität) des Basiswertes oder dem allgemeinen Zins- und Dividendenniveau bzw. der
allgemeinen Entwicklung der Devisenmärkte sind nach Auffassung der Emittentin vor allem
folgende Umstände für den Wert eines Zertifikats wesentlich bzw. können aus folgenden
Umständen Risiken für die Erwerber der Zertifikate erwachsen.
Besonderheiten der Zertifikatsstruktur
Potenzielle Erwerber der Zertifikate müssen vor einer Investition in die Zertifikate beachten,
dass die folgenden Besonderheiten der Zertifikate Auswirkungen auf den Wert der Zertifikate
bzw. die Höhe des nach den Wertpapierbedingungen zu zahlenden Geldbetrags haben können
und dementsprechend die Zertifikate besondere Risikoprofile aufweisen:
42
Umfang der Teilnahme an der Entwicklung des Basiswerts
Die Verwendung des Bezugsverhältnisses innerhalb der Bestimmung des Zertifikatsrechts führt
dazu, dass die Zertifikate zwar wirtschaftlich einer Direktinvestition in den Basiswertähnlich sind,
mit einer solchen jedoch insbesondere deshalb nicht vollständig vergleichbar sind, weil die
Wertpapiergläubiger an der entsprechenden Wertentwicklung nicht im Verhältnis 1:1
partizipieren, sondern in dem Verhältnis des Bezugsverhältnisses teilnehmen.
Begrenzung der Ertragsmöglichkeit auf den Höchstbetrag
Potenzielle Erwerber sollten sich zudem bewusst sein, dass bei den Zertifikaten der
Auszahlungsbetrag auf den in den Wertpapierbedingungen vorgegebenen Höchstbetrag
beschränkt ist. Im Vergleich zu einer Direktinvestition in den Basiswert ist die Ertragsmöglichkeit
der Zertifikate deshalb auf den Höchstbetrag begrenzt.
Wechselkursrisiko
Der Wert des Basiswerts wird, soweit dies in den Endgültigen Bedingungen angegeben ist, in
einer von der Auszahlungswährung abweichenden Währung, Währungseinheit oder
Rechnungseinheit bestimmt, weshalb sich potenzielle Erwerber der Zertifikate darüber im
Klaren sein sollten, dass mit der Anlage in die Zertifikate Risiken aufgrund von schwankenden
Wechselkursen verbunden sein können und dass das Verlustrisiko nicht allein von der
Entwicklung des Werts des Basiswerts, sondern auch von ungünstigen Entwicklungen des
Werts der fremden Währung, Währungseinheit bzw. Rechnungseinheit abhängt.
Derartige Entwicklungen können das Verlustrisiko der Wertpapiergläubiger zusätzlich dadurch
erhöhen,
dass
sich
durch
eine
ungünstige
Entwicklung
des
betreffenden
Währungswechselkurses der Wert der erworbenen Zertifikate während ihrer Laufzeit
entsprechend vermindert oder sich die Höhe des möglicherweise unter den Zertifikaten zu
zahlenden Auszahlungsbetrags entsprechend vermindert. Währungswechselkurse werden von
Angebots- und Nachfragefaktoren auf den internationalen Devisenmarkten bestimmt, die
volkswirtschaftlichen Faktoren, Spekulationen und Maßnahmen von Regierungen und
Zentralbanken ausgesetzt sind (zum Beispiel währungspolitische Kontrollen oder
Einschränkungen).
Besonderheiten bei Zertifikaten auf Währungswechselkurse, Rohstoffe bzw. Edelmetalle
Es ist zu beachten, dass Währungswechselkurse, Rohstoffe bzw. Edelmetalle als Basiswert 24
Stunden am Tag durch die Zeitzonen in Australien, Asien, Europa und Amerika gehandelt
werden. Potenzielle Erwerber der Zertifikate sollten somit beachten, dass es jederzeit und auch
außerhalb der lokalen Handelszeiten oder der Handelszeiten der Emittentin, der
Berechnungsstelle bzw. der Anbieterin zum Erreichen, Überschreiten bzw. Unterschreiten einer
nach den Wertpapierbedingungen maßgeblichen Grenze oder Schwelle kommen kann.
Der Kapitalschutz greift nur zum Ende der Laufzeit der Zertifikate
Die Zertifikate sind, soweit dies in den Endgültigen Bedingungen vorgesehen ist, zum Ende der
Laufzeit im Umfang des jeweiligen Mindestrückzahlungsbetrags kapitalgeschützt, das heißt der
Anleger erhält zum Ende der Laufzeit unabhängig von der Entwicklung des Basiswerts
jedenfalls den Mindestrückzahlungsbetrag. Erwirbt ein Anleger die Zertifikate nach Emission zu
einem Preis, der über dem jeweiligen Mindestrückzahlungsbetrag liegt, so sollte dem
potenziellen Erwerber bewusst sein, dass sich der anteilige Kapitalschutz nur auf den kleineren
jeweiligen Mindestrückzahlungsbetrag bezieht. Dabei ist zudem zu beachten, dass der
Kapitalschutz nur zum Ende der Laufzeit, das heißt soweit die Zertifikate nicht gekündigt
worden sind, greift.
Der Geldbetrag, der bei vorzeitiger Fälligkeit der Zertifikate bzw. Kündigung und vorzeitiger
Tilgung der Zertifikate durch die Emittentin geleistet wird, kann erheblich geringer sein als der
Betrag,
der
bei
Greifen
des
Kapitalschutzes
im
Umfang
des
jeweiligen
Mindestrückzahlungsbetrags zum Ende der Laufzeit der Zertifikate mindestens zu zahlen wäre.
43
Potenziellen Erwerbern der Zertifikate sollte zudem bewusst sein, dass sie trotz des
Kapitalschutzes im Umfang des jeweiligen Mindestrückzahlungsbetrags, das Risiko der
finanziellen Leistungsfähigkeit der Emittentin und der Garantin tragen. Potenzielle Erwerber
müssen deshalb bereit und in der Lage sein, Verluste des eingesetzten Kapitals bis hin zum
Totalverlust hinzunehmen. In jedem Falle sollten Erwerber der Zertifikate ihre jeweiligen
wirtschaftlichen Verhältnisse daraufhin überprüfen, ob sie in der Lage sind, die mit dem
Zertifikat verbundenen Verlustrisiken zu tragen.
Kündigung und vorzeitige Tilgung der Zertifikate durch die Emittentin
Potenziellen Erwerbern der Zertifikate sollte bewusst sein, dass die Emittentin bei Vorliegen
eines Kündigungsereignisses gemäß den Wertpapierbedingungen die Möglichkeit hat, die
Zertifikate insgesamt vor dem Verfalltag zu kündigen und vorzeitig zu tilgen. Wenn die
Emittentin die Zertifikate vor dem Verfalltag kündigt und vorzeitig tilgt, hat der
Wertpapiergläubiger das Recht, die Zahlung eines Geldbetrags in Bezug auf die vorzeitige
Tilgung zu verlangen. Der Wertpapiergläubiger hat jedoch keinen Anspruch auf irgendwelche
weiteren Zahlungen auf die Zertifikate nach dem Kündigungstag.
Der Wertpapiergläubiger trägt damit das Risiko, dass er an der Wertentwicklung des Basiswerts
nicht in dem erwarteten Umfang und über den erwarteten Zeitraum partizipieren kann.
Im Falle einer Kündigung der Zertifikate durch die Emittentin trägt der Wertpapiergläubiger
zudem das Wiederanlagerisiko. Dies bedeutet, dass er den durch die Emittentin im Falle einer
Kündigung gegebenenfalls ausgezahlten Kündigungsbetrag möglicherweise nur zu
ungünstigeren Marktkonditionen als denen, die beim Erwerb der Zertifikate vorlagen,
wiederanlegen kann.
Keine Kündigungsmöglichkeit der Wertpapiergläubiger
Die Zertifikate können während ihrer Laufzeit nicht von den Wertpapiergläubigern gekündigt
werden. Vor Laufzeitende ist, soweit es nicht zu einer Kündigung durch die Emittentin und einer
vorzeitigen Tilgung der Zertifikate kommt, die Realisierung des durch die Zertifikate
gegebenenfalls verbrieften wirtschaftlichen Werts (bzw. eines Teils davon) nur durch
Veräußerung der Zertifikate möglich.
Eine Veräußerung der Zertifikate setzt voraus, dass sich Marktteilnehmer finden, die zum
Ankauf der Zertifikate zu einem entsprechenden Preis bereit sind. Finden sich keine solchen
kaufbereiten Marktteilnehmer, kann der Wert der Zertifikate nicht realisiert werden. Aus der
Begebung der Zertifikate ergibt sich für die Emittentin keine Verpflichtung gegenüber den
Wertpapiergläubigern, einen Marktausgleich für die Zertifikate vorzunehmen bzw. die Zertifikate
zurückzukaufen.
Mögliche Wertminderung des Basiswerts
Soweit die Laufzeit der Zertifikate durch die Emittentin vorzeitig durch Kündigung gemäß den
Wertpapierbedingungen beendet wird, müssen potenzielle Erwerber der Zertifikate beachten,
dass eine möglicherweise negative Entwicklung des Kurses des Basiswerts nach dem Zeitpunkt
der Kündigungserklärung bis zur Ermittlung des für die Berechnung des dann zahlbaren
Kündigungsbetrags verwendeten Kurses des Basiswerts zu Lasten der Wertpapiergläubiger
geht.
Nachteilige Auswirkungen von Anpassungen des Wertpapierrechts
Die Emittentin ist gemäß den Wertpapierbedingungen bei Vorliegen eines potenziellen
Anpassungsereignisses berechtigt, Anpassungen der Bedingungen der Zertifikate
vorzunehmen. Diese Anpassungen können sich negativ auf den Wert der Zertifikate auswirken.
44
Einfluss von Nebenkosten
Provisionen und andere Transaktionskosten, die beim Kauf oder Verkauf von Zertifikaten
anfallen, können - insbesondere in Kombination mit einem niedrigen Auftragswert - zu
Kostenbelastungen führen, die den unter den Zertifikaten gegebenenfalls zu zahlenden
Auszahlungsbetrag der Höhe nach extrem vermindern können. Potenzielle Erwerber sollten
sich deshalb vor Erwerb eines Wertpapiers über alle beim Kauf oder Verkauf des Wertpapiers
anfallenden Kosten einschließlich etwaiger Kosten ihrer Depotbank bei Erwerb und bei
Fälligkeit der Zertifikate informieren.
Risiko ausschließende oder einschränkende Geschäfte
Potenzielle Erwerber der Zertifikate dürfen nicht darauf vertrauen, dass während der Laufzeit
der Wertpapiere jederzeit Geschäfte abgeschlossen werden können, durch die relevante
Risiken ausgeschlossen oder eingeschränkt werden können; tatsächlich hängt dies von den
Marktverhältnissen und den jeweils zugrunde liegenden Bedingungen ab. Unter Umständen
können solche Geschäfte nur zu einem ungünstigen Marktpreis getätigt werden, so dass für
den Anleger ein entsprechender Verlust entsteht.
Handel in den Zertifikaten / Mangelnde Liquidität
Es lässt sich nicht voraussagen, ob und inwieweit sich ein Sekundärmarkt für die Zertifikate
entwickelt, zu welchem Preis die Zertifikate in diesem Sekundärmarkt gehandelt werden und ob
dieser Sekundärmarkt liquide sein wird oder nicht. Potenzielle Erwerber sollten deshalb nicht
darauf vertrauen, das jeweilige Zertifikat zu einer bestimmten Zeit oder einem bestimmten Kurs
veräußern zu können.
Verbriefung und Verwahrung der Zertifikate
Die Zertifikate, die unter diesem Programm begeben werden, sind Inhaberpapiere und durch
eine oder mehrere Dauerglobalurkunde(n) bzw. Vorläufige Dauerglobalurkunde(n) verbrieft.
Die Dauerglobalurkunde bzw. die Vorläufige Dauerglobalurkunde wird bei der Verwahrstelle im
Auftrag der Clearingstelle entsprechend der anwendbaren Vorschriften der Verwahr- und der
Clearingstelle verwahrt. Die Zertifikate sind als Miteigentumsanteile an der Dauerglobalurkunde
bzw. der Vorläufigen Dauerglobalurkunde in Übereinstimmung mit den maßgeblichen CSRegeln übertragbar und sind im Effektengiroverkehr ausschließlich in der Kleinsten
handelbaren Einheit übertragbar. Die Übertragung wird mit Eintragung der Übertragung in den
Büchern der Clearingstelle wirksam. Hinsichtlich Übertragungen, Zahlungen und die
Kommunikation mit der Emittentin können sich die Wertpapiergläubiger ausschließlich auf die
Verfahren der Verwahr- und der Clearingstelle berufen. Die Wertpapiergläubiger haben keinen
Anspruch, die Lieferung von effektiven Wertpapieren zu verlangen.
Die Emittentin hat keinerlei Verantwortlichkeit oder Haftung unter jedweden Umstanden für
Handlungen und Unterlassungen der Verwahr- und der Clearingstelle als auch für jeden daraus
resultierenden Schaden für Inhaber von Schuldverschreibungen generell und für
Aufzeichnungen über das wirtschaftliche Eigentum der Inhaber von Schuldverschreibungen
sowie Zahlungen daraus im Besonderen.
Preisbildung von Wertpapieren
Die Preisbildung dieser Zertifikate orientiert sich im Gegensatz zu den meisten anderen
Wertpapieren regelmassig nicht an dem Prinzip van Angebot und Nachfrage in Bezug auf die
Zertifikate, da Wertpapierhändler möglicherweise im Sekundärmarkt eigenständig berechnete
An- und Verkaufskurse für die Zertifikate stellen. Diese Preisberechnung wird auf der Basis von
im Markt üblichen Preisberechnungsmodellen vorgenommen, wobei der theoretische Wert von
Zertifikaten grundsätzlich auf Grund des Werts des Basiswerts und des Werts der weiteren
Ausstattungsmerkmale der Zertifikate, die jeweils wirtschaftlich gesehen durch ein weiteres
derivatives Finanzinstrument abgebildet werden können, ermittelt wird.
45
Die möglicherweise gestellten Kurse müssen dem vom Wertpapierhändler ermittelten inneren
Wert der Zertifikate nicht entsprechen.
Ausweitung der Spanne zwischen Kauf- und Verkaufskursen und -preisen
Im Falle besonderer Marktsituationen, in denen Sicherungsgeschäfte durch die Emittentin nicht
oder nur unter erschwerten Bedingungen möglich sind, kann es zu zeitweisen Ausweitungen
der Spanne zwischen Kauf- und Verkaufskursen bzw. zwischen Kauf- und Verkaufspreisen
kommen, um die wirtschaftlichen Risiken der Emittentin einzugrenzen. Daher veräußern
Wertpapiergläubiger, die ihre Zertifikate an der Börse oder im Over-the-Counter-Markt
veräußern möchten, gegebenenfalls zu einem Preis, der erheblich unter dem tatsächlichen
Wert der Zertifikate zum Zeitpunkt ihres Verkaufs liegt.
Inanspruchnahme von Krediten
Wenn Anleger den Erwerb der Zertifikate mit einem Kredit finanzieren, müssen sie beim
Nichteintritt ihrer Erwartungen, zusätzlich zu der Rückzahlung und Verzinsung des Kredits,
auch den unter den Zertifikaten eingetretenen Verlust hinnehmen. Dadurch erhöht sich das
Verlustrisiko des Anlegers erheblich. Erwerber von Zertifikaten sollten nie darauf setzen, den
Kredit aus Gewinnen eines Wertpapiergeschäfts verzinsen und zurückzahlen zu können.
Vielmehr sollten vor dem kreditfinanzierten Erwerb eines Wertpapiers die maßgeblichen
wirtschaftlichen Verhältnisse daraufhin überprüft werden, ob der Anleger zur Verzinsung und
gegebenenfalls zur kurzfristigen Tilgung des Kredits auch dann in der Lage ist, wenn statt der
von ihm erwarteten Gewinne Verluste eintreten.
Einfluss von Hedge-Geschäften der Emittentin auf die Wertpapiere
Die Emittentin kann einen Teil oder den gesamten Erlös aus dem Verkauf der Zertifikate für
Absicherungsgeschäfte hinsichtlich des Risikos der Emittentin aus der Begebung der Zertifikate
verwenden. In einem solchen Fall kann die Emittentin oder ein mit ihr verbundenes
Unternehmen Geschäfte abschließen, die den Verpflichtungen der Emittentin aus den
Zertifikaten entsprechen. Im Allgemeinen werden solche Transaktionen vor dem oder am
Emissionstag der Zertifikate abgeschlossen; es ist aber auch möglich, solche Transaktionen
nach Begebung der Zertifikate abzuschließen. Die Emittentin oder ein mit ihr verbundenes
Unternehmen kann jederzeit die für die Auflösung abgeschlossener Deckungsgeschäfte
erforderlichen Schritte ergreifen. Der Kurs des Basiswerts kann im Einzelfall durch solche
Transaktionen negativ beeinflusst werden.
Allgemeines
Deshalb ist es unbedingt empfehlenswert, sich mit dem besonderen Risikoprofil des in diesem
Prospekt beschriebenen Produkttyps vertraut zu machen und gegebenenfalls fachkundigen Rat
in Anspruch zu nehmen. Potenzielle Erwerber werden ausdrücklich darauf hingewiesen, dass
es sich bei den Zertifikaten um eine Risikoanlage handelt, die mit der Möglichkeit von Verlusten
hinsichtlich des eingesetzten Kapitals verbunden ist. Auch wenn die Zertifikate zum Ende der
Laufzeit im Umfang des jeweiligen Mindestrückzahlungsbetragskapital geschützt sind und das
Verlustrisiko zunächst begrenzt ist, tragen Anleger das Risiko der Verschlechterung der
finanziellen Leistungsfähigkeit der Emittentin und der Garantin, insbesondere das Risiko der
Insolvenz der Emittentin und der Garantin. Potenzielle Erwerber müssen deshalb bereit und in
der Lage sein, Verluste des eingesetzten Kapitals bis hin zum Totalverlust hinzunehmen. In
jedem Falle sollten Erwerber der Zertifikate ihre jeweiligen wirtschaftlichen Verhältnisse
daraufhin überprüfen, ob sie in der Lage sind, die mit dem Wertpapier verbundenen
Verlustrisiken zu tragen.
Potentielle Interessenkonflikte
Die Emittentin und/oder ihre Tochtergesellschaften und verbundenen Unternehmen sind
berechtigt, von Zeit zu Zeit mit den Derivativen Wertpapieren oder Basiswerten verbundene
Geschäfte abzuschließen oder auf andere Weise mit Bezug auf diese tätig zu werden. Im
Umfeld dieser Tätigkeiten bestehen möglicherweise bestimmte Konflikte zwischen den
46
Interessen der Gläubiger der Derivativen Wertpapiere und den Interessen der Emittentin und
ihrer Tochtergesellschaften und verbundenen Unternehmen, und solche Transaktionen können
den Wert der Derivativen Wertpapiere nachteilig beeinträchtigen.
2.4
ZUSAMMENFASSUNG DER BESCHREIBUNG DER EMITTENTIN
Gesetzliche Wirtschaftsprüfer
Unabhängige Wirtschaftsprüferin der Emittentin für
die Zeit vom 8. Januar 2009 bis zum 31. Dezember
2009 war die BDO AUDIT S.A., av. Charles de
Gaulle 2, L-2013 Luxemburg, Großherzogtum
Luxemburg.
Informationen über die Emittentin
Die Emittentin handelt unter der Firma Interactive
Brokers Financial Products S.A. und unter dem
Geschäftsnamen IBFP. Die Emittentin wurde am 08.
Januar 2009 unter der Firma Brokers Financial
Products
S.A.
nach
den
Gesetzen
des
Großherzogtums Luxemburg gegründet und am 19.
Januar 2009 unter Nr. B144088 in das
Handelsregister des Großherzogtums Luxemburg
eingetragen.
Die Hauptniederlassung der Emittentin befindet sich
in der rue Eugène Ruppert, Nr. 19, L-2453
Luxemburg. Die Telefonnummer der Emittentin lautet
+52 26 30 26 34.
Geschäftsüberblick
Die Emittentin ist eine Zweckgesellschaft, die zu
100% im Eigentum der Garantin steht. Die Garantin
ist die Muttergesellschaft der Interactive Brokers
Firmengruppe (zusammen IB Gruppe). Die IB
Gruppe ist ein weltweit agierender Market Maker
sowie eine Wertpapierhandelsfirma, die in der
Ordererteilung sowie der Durchführung und
Abwicklung
von
Wertpapiergeschäften,
Termingeschäften
und
ausländischen
Börsengeschäften an über 80 elektronischen Börsen
und Handelsplätzen weltweit tätig ist. In den
Vereinigten Staaten werden die Geschäfte der IB
Gruppe vom Hauptsitz in Greenwich, Connecticut
und von Chicago, Illinois ausgeführt. Im Ausland
werden die Geschäfte der IB Gruppe von
Zweigstellen in Kanada, England, Schweiz,
Hongkong, Indien, Australien und Japan ausgeführt.
Die Emittentin beabsichtigt, die Derivativen
Wertpapiere in der Bundesrepublik Deutschland
anzubieten und behält sich ebenfalls vor, diese zu
einem späteren Zeitpunkt in anderen Staaten
innerhalb des Europäischen Wirtschaftsraums
anzubieten.
Gemäß Artikel 4 der Gesellschaftssatzung führt die
Emittentin alle Arten von Finanztransaktionen aus,
einschließlich der Ausgabe von sowohl Wertpapieren
als auch jeglichen anderen Finanzinstrumenten aller
Art in jeder Währung an private und institutionelle
Anleger und die Aufnahme von Fremdkapital in jeder
anderen Form; die Emittentin kann Swap-
47
Vereinbarungen und andere Derivategeschäfte
abschließen, ihr Vermögenswerte, Eigentum und
Rechte verpfänden, beleihen oder belasten oder
anderweitig hierüber Sicherheiten bestellen, um die
Zahlung oder Rückzahlung jedweder von der
Emittentin
zu
zahlender
Geldbeträge
im
Zusammenhang mit jedweder von der Emittentin von
Zeit zu Zeit begebenen Anleihe, Schuldschein,
Schuldverschreibung oder Schuldtitel jedweder Art
sicherzustellen.
Ohne das Vorhergehende einzuschränken, kann die
Emittentin ihre Finanzmittel für die Gründung, die
Verwaltung, die Entwicklung, den Erwerb und die
Veräußerung von Verbindlichkeiten und anderen
Wertpapieren oder anderen Finanzinstrumenten
verwenden. Die Emittentin kann an der Gründung,
Entwicklung und / oder der Überwachung jedweder
Unternehmung teilnehmen. Die Emittentin kann
durch Beteiligung, Zeichnung, Übernahme oder
durch Kaufoption oder durch jedwede andere Art,
Wertpapiere
oder
andere
Finanzinstrumente
erwerben. Die Emittentin kann solche Wertpapiere
oder andere Finanzinstrumente durch Verkauf,
Übertragung, Tausch oder anderweitig verwerten.
Die Emittentin kann Gesellschaften, an denen sie
eine Beteiligung hält, jedwede Unterstützung,
Darlehen, Zahlungen oder Garantien gewähren.
Im Allgemeinen kann die Emittentin zum Zweck der
effizienten Verwaltung jedwede Techniken und
Instrumente
verwenden
im
Bezug
auf
Vermögenswerte
und
/
oder
Beteiligungen
anwenden, einschließlich Techniken und Instrumente
um Währungs- und Zinsrisiken abzusichern. Die
Emittentin kann Kontrollen und Aufsichtsmaßnahmen
durchführen und jede Art finanzieller, beweglicher
und unbeweglicher, kommerzieller und industrieller
Aktivitäten ausführen, die sie zur Erreichung und
Entwicklung des Gesellschaftszweckes für nützlich
erachtet.
Organisationsstruktur
Die Emittentin wird zu 100% von der Garantin
gehalten. Die Garantin ist nach dem Recht von
Connecticut, U.S.A. gegründete, in der Haftung
beschränkte Gesellschaft.
Trendinformationen
Seit dem Datum des letzten veröffentlichten und
geprüften
Jahresabschlusses
hat
es
keine
wesentlichen nachteiligen Veränderungen in den
Aussichten der Emittentin gegeben.
Management
Die leitenden Organe der Emittentin sind der
Verwaltungsrat und die Generalversammlung.
Der Verwaltungsrat
Der Verwaltungsrat setzt sich gegenwärtig aus 3
Personen zusammen:
Earl H. Nemser, ist gleichzeitig stellvertretender
Vorsitzender der Garantin und Verwaltungsrat und
48
stellvertretender Vorsitzender der Interactive Brokers
Group, Inc. Er ist gleichzeitig als Verwaltungsrat
und/oder
Vorstandsmitglied
für
mehrere
Tochtergesellschaften der Garantin tätig. Herr
Nemser ist daneben Sonderberater (Special
Counsel) für die Rechtsanwaltskanzlei Dechert LLP,
welche die Garantin und Interactive Brokers Group,
Inc. in rechtlichen Angelegenheiten berät.
Roger Ryff, gleichzeitig Vizepräsident von Timber Hill
(Europe) AG
Jean Lambert
Adresse des Verwaltungsrates
Rue Eugéne Ruppert 19, L-2453 Luxemburg
Generalversammlung
Die Befugnisse der Generalversammlung werden
durch die Garantin als Einzelaktionärin ausgeübt.
Interessenkonflikte
Es bestehen keine potenziellen Interessenkonflikte
der Mitglieder der Verwaltungs-, Geschäftsführungsund Aufsichtsorgane zwischen ihren Verpflichtungen
gegenüber der Emittentin und ihren privaten
Interessen oder sonstigen Verpflichtungen.
Praktiken der Geschäftsführung
Die Emittentin erfüllt nicht den CoporateGovernance-Kodex
der
Luxemburgischen
Wertpapierbörse, da die Emittentin kein Mitglied der
Luxemburgischen
Wertpapierbörse
ist.
Der
Coporate-Governance-Kodex ist ein Dokument der
Luxemburgischen Wertpapierbörse, das primär für
die an dieser Börse gelisteten Unternehmen
Anwendung findet. Da es sich bei der Emittentin nicht
um eine börsennotierte Gesellschaft handelt, findet
der
Corporate-Governance-Kodex
der
Luxemburgischen Wertpapierbörse auf sie keine
Anwendung. Die Emittentin ist der Auffassung, dass
für sie als Zweckgesellschaft die auf eine
Aktiengesellschaft zugeschnittenen Regelungen des
Corporate-Governance-Kodex
keine
sinnvolle
Anwendung findet und hat sich daher auch nicht
freiwilllig der Beachtung des Corporate-GovernanceKodex unterworfen.
Hauptaktionäre
Die Emittentin befindet sich zu 100% im Eigentum
der Garantin.
Historische Finanzinformationen
Die nachfolgende Übersicht stellt in zusammengefasster Form die Bilanz, die Gewinn- und
Verlustrechnung und die Kapitalflussrechnung der Emittentin dar, die den geprüften
historischen Finanzinformationen (Einzelabschluss) der Emittentin aus der Zeit von der
Aufnahme des Geschäftsbetriebs der Emittentin bis zum 31. Dezember 2009 entnommen
wurde. Der Einzelabschluss wurde in Übereinstimmung mit den International Financial
Reporting Standards (IFRS) erstellt.
49
Bilanz
31. Dezember
2009
(in Euro)
Aktiva
Zahlungsmittel und Zahlungsmitteläquivalente
Forderungen gegen verbundene Unternehmen
Gesamte Aktiva
199.732
4.816.004
5.015.736
Passiva und Eigenkapital
Verbindlichkeiten:
gegenüber verbundenen Unternehmen
Schuldposten, Kostenrückstellungen und andere Verbindlichkeiten
Eigenkapital:
Gesellschaftskapital
Stammaktien, EUR1.000 angegebener Wert pro Aktie:
Zur Ausgabe genehmigte, ausgegebene und noch nicht ausgegebene
Aktien:
5.000 Aktien am 31. Dezember 2009
Netto Verlust
Gesamteigenkapital
Gesamtverbindlichkeiten und Eigenkapital
60.863
25.493
86.356
5.000.000
(70.620)
4.929.380
5.015.736
Gewinn- und Verlustrechnung
Zeit vom
08. Januar bis
zum
31. Dezember
2009
(in Euro)
Einnahmen:
Umrechnungsverlust
Zinsertrag
Einkünfte gesamt
(21)
16.009
15.988
Zinsaufwand
-
Gesamtnettoeinkünfte
15.988
Aufwendungen ausgenommen Zinsaufwand:
Kommunikation
Verwaltung
Gesamtaufwendungen ausgenommen Zinsaufwand
154
86.454
86.608
Verlust vor Steuern
(70.620)
Einkommenssteuer
Verlust netto
(70.620)
50
Kapitalflussrechnung
Zeit vom
8. Januar
bis zum
31. Dezember
2009
(in Euro)
Kapitalfluss aus Geschäftstätigkeit:
Netto Verlust
(Zunahme) Abnahme der Vermögenswerte:
Forderungen gegen verbundene Unternehmen
Zunahme (Abnahme) von Verbindlichkeiten:
gegenüber Tochterunternehmen und verbundenen Unternehmen
Rechnungsabgrenzungsposten
Zahlungsmittel für Geschäftstätigkeit insgesamt verwendet
Kapitalfluss aus Finanzierungstätigkeit (Cash flows from financing
activities):
Ausgabe von Stammaktien
Zahlungsmittel aus der Finanzierungstätigkeit insgesamt
Netto-Zunahme der flüssigen Mittel:
Zahlungsmittel zu Beginn des Berichtszeitraums
Zahlungsmittel zum Ende des Berichtszeitraums
(70.620)
(4.816.004)
60.863
25.493
(4.800.268)
5.000.000
5.000.000
199.732
199.732
Prüfung der historischen
Finanzinformationen
Die Abschlussprüfer der Emittentin haben den
Jahresabschluss für die Zeit von der Aufnahme
des Geschäftsbetriebs der Emittentin bis zum 31.
Dezember
2009
geprüft
und
einen
uneingeschränkten Bestätigungsvermerk erteilt.
Prozesse und Schiedsgerichtsverfahren
Die Emittentin war und ist an keinen staatlichen
Interventionen,
Gerichtsoder
Schiedsgerichtsverfahren
(einschließlich
derjenigen Verfahren, die nach Kenntnis der
Emittentin noch anhängig sind oder eingeleitet
werden könnten) beteiligt, die im Zeitraum der 12
letzten Monate bestanden/abgeschlossen wurden,
und die sich erheblich auf die Finanzlage oder die
Rentabilität der Emittentin und/oder der IB Gruppe
auswirken bzw. in jüngster Zeit ausgewirkt haben.
Wesentliche Änderung der Finanzlage
der Emittentin
Die Finanzlage oder Handelsposition der
Emittentin hat sich seit dem letzten Geschäftsjahr,
für das geprüfte Finanzinformationen der
Emittentin vorliegen, nicht wesentlich verändert.
Stammkapital (Artikel 5 der
Gesellschaftssatzung)
Das gezeichnete Stammkapital beträgt 5 Mio
Euro, unterteilt auf 5.000 Anteile zu 1.000,00 Euro
pro Stück. Die Anteile sind als Namensaktien
begeben. Nach Wahl des Aktionärs können diese
als Urkunden, die entweder einzelne Aktien oder
zwei oder mehr Aktien verbriefen, ausgestaltet
sein. Die Emittentin kann, soweit dies gesetzlich
möglich ist, eigene Aktien erwerben. Das
51
Stammkapital kann unter Einhaltung der
gesetzlichen Vorgaben erhöht und reduziert
werden.
Wesentliche Verträge
2.5
Am 28. August 2009 hat die Emittentin als
Darlehensnehmerin
einen
unbesicherten
Kreditvertrag mit der Timber Hill Europe AG als
Darlehensgeberin über einen Betrag von 10 Mio.
USD abgeschlossen.
ZUSAMMENFASSUNG DER BESCHREIBUNG DER GARANTIN
Gesetzliche Wirtschaftsprüfer
Unabhängige Wirtschaftsprüferin der Garantin für die
am 31. Dezember 2008 und am 31. Dezember 2009
beendeten Geschäftsjahre war die Deloitte & Touche
LLP, Two World Financial Center, New York, New
York 10281-1414 USA.
Informationen über die Garantin
Die Garantin handelt unter der Firma IBG LLC und
unter dem Geschäftsnamen Interactive Brokers Group.
Die Garantin wurde am 01. Juli 1996 unter der Firma
IBG LLC nach dem Recht des US-Bundestaates
Connecticut als eine in der Haftung beschränkte
Gesellschaft
gegründet
und
ist
unter
der
Registrierungsnummer 0538978 im US-Bundestaat
Connecticut organisiert.
Die Hauptniederlassung der Garantin befindet sich in
One Pickwick Plaza, Greenwich, Connecticut, 06830,
USA. Die Telefonnummer der Garantin lautet +1 (203)
618-5800.
Investments
Die
Garantin
führt
regelmäßig
Evaluationen
strategischer Investitionen und Akquisitionen aus.
Im Februar 2009 hat die Garantin $ 7.500.000 in
Quadriserv
Inc.,
eine
elektronische
Wertpapierleiheplattform investiert.
Geschäftsüberblick
Die Garantin ist eine Tochtergesellschaft der
Interactive Brokers Group, Inc und Teil der IB Gruppe.
Die Garantin betreibt ihre Geschäfte über ihre
operativen Tochtergesellschaften. Die IB Gruppe ist
gemeinsam mit ihren Tochtergesellschaften eine
weltweite Wertpapierhandelsfirma, die auch als Market
Maker agiert und auf Orderrouting (elektronische
Übermittlung einer Wertpapierorder an einen
Handelsplatz), Ausführungen und Abwicklungen im
Handel von Wertpapieren, Futures, ausländischen
Finanzinstrumenten, Anleihen und Fonds an über 80
elektronischen Börsen und Handelsplätzen weltweit
spezialisiert ist.
Als Market Maker sorgt die IB Gruppe für Liquidität an
diesen
Handelsplätzen
und
als
Wertpapierhandelsfirma ermöglicht sie professionellen
Händlern und Anleger den elektronischen Zugang zu
Aktien, Optionen, futures, forex, Anleihen und mutual
52
funds von einem einzelnen IB Universal AccountSM. Die
IB Gruppe setzt eigene Software auf einem weltweiten
Kommunikationsnetzwerk ein und integriert laufend die
Software mit einer steigenden Zahl von Börsen und
Handelsplätzen in eine selbstständig arbeitende
computergestützte
Plattform,
die
minimales
menschliches Zutun erfordert.
Gemäß Ziffer 1.3 des Amended and Restated
Operating Agreement of IBG LLC, das dem
europäischen
Verständnis
eines
Gesellschaftsvertrages nahekommt, vom 3. Mai 2007
ist es Geschäftszweck der Garantin, jede rechtmäßige
Handlung oder Aktivität auszuführen, für die
Gesellschaften mit beschränkter Haftung nach den
Abschnitten 34-100 bis einschließlich 34-242 des
Connecticut Limited Liability Company Act gegründet
werden können.
Organisationsstruktur
Die Garantin steht zu ca. 89,5% im Eigentum der IBG
Holdings LLC und zu ca. 10,5% im Eigentum der
Interactive Brokers Group, Inc. ist eine Gesellschaft,
die nach dem Recht des Staates Delaware, U.S.A.
gegründet ist. Es handelt sich um eine HoldingGesellschaft, deren Hauptvermögensgut die Anteile
von ungefähr 10,5% der Geschäftsanteile der Garantin
darstellt. Die Class A Aktien der Interactive Brokers
Group, Inc. werden öffentlich gehandelt und sind an
der NASDAQ notiert. Die Class B Aktien der
Interactive Brokers Group, Inc. gewähren Stimmrechte
in der Interactive Brokers Group, Inc. in Höhe von IBG
Holdings LLC’s Mitgliedschaftsrechten an IBG LLC.
Zum 10. August 2009 bestehen 41.214.498
ausgegebene Class A und 100 ausgegebene Class B
Aktien.
IBG Holdings LLC, eine nach dem Recht des Staates
Connecticut, U.S.A. gegründete, in der Haftung
beschränkte Gesellschaft, hält 100% der Anteile an
den Class B Aktien (Diese verkörpern ungefähr 89.5%
der Stimmrechte in der Gesellschaft).
Herr Thomas Peterffy und die mit ihm verbundenen
Unternehmen (einschließlich TP Holdings Limited
Partnership) halten rund 85% der Mitgliedschaftsrechte
an IBG Holdings LLC.
Interactive Brokers Group, Inc. ist das einzige
Management-Mitglied der Garantin und kontrolliert
die Geschäftstätigkeit der Garantin.
Trendinformationen
Seit dem Datum des letzten veröffentlichten und
geprüften
Jahresabschlusses
hat
es
keine
wesentlichen nachteiligen Veränderungen in den
Aussichten der Garantin gegeben.
Verwaltungsorgane
Interactive Brokers Group, Inc. ist das einzige
geschäftsführende Organ der Garantin und steuert die
53
Geschäftsprozesse der Garantin.
Das operative Geschäft wird durch folgende Personen
durchgeführt:
Thomas Peterffy, Vorsitzender, Vorstandsvorsitzender
und Präsident. Herr Peterffy ist außerdem
Vorsitzender, Vorstandsvorsitzender und Präsident
von Interactive Brokers Group, Inc. Er ist gleichzeitig
als Verwaltungsrat und/oder Vorstandsmitglied für
mehrere Tochtergesellschaften der Garantin tätig.
Earl H. Nemser ist stellvertretender Vorsitzender der
Garantin und Verwaltungsrat und stellvertretender
Vorsitzender der Interactive Brokers Group, Inc. Er ist
gleichzeitig
als
Verwaltungsrat
und/oder
Vorstandsmitglied für mehrere Tochtergesellschaften
der Garantin tätig. Herr Nemser ist daneben
Sonderberater
(Special
Counsel)
für
die
Rechtsanwaltskanzlei Dechert LLP, welche die
Garantin und Interactive Brokers Group, Inc. in
rechtlichen Angelegenheiten berät.
Paul J. Brody, Finanzvorstand, Schriftführer. Herr
Brody ist außerdem Finanzvorstand, Schriftführer und
Verwaltungsrat für Interactive Brokers Group, Inc. Er
ist
gleichzeitig
als
Verwaltungsrat
und/oder
der Garantin tätig.
Milan
Galik,
Senior
Vizepräsident,
Softwareentwicklung. Herr Galik ist außerdem als
Senior Vizepräsident, Softwareentwicklung und
Verwaltungsrat für mehrere Tochtergesellschaften der
Garantin tätig.
David M. Battan, Vizepräsident. Herr Battan ist
gleichzeitig
als
Verwaltungsrat
und/oder
der Garantin tätig.
Susan J. Cramer, Schatzmeisterin. Frau Cramer ist
gleichzeitig als Vorstandsmitglied für mehrere
Tochtergesellschaften der Garantin tätig.
Bradford L. Jacobowitz, Associate General Counsel.
Herr Jacobowitz ist gleichzeitig als Vorstandsmitglied
für mehrere Tochtergesellschaften der Garantin tätig.
Adresse der Geschäftsleitung der
Garantin
One Pickwick Plaza
Greenwich, Connecticut 06830
U.S.A.
Interessenkonflikte
Es bestehen keine potenziellen Interessenkonflikte der
Mitglieder der Verwaltungs- und Managementorgane
zwischen ihren Verpflichtungen gegenüber der
Garantin und ihren privaten Interessen oder sonstigen
Verpflichtungen.
54
Praktiken der Geschäftsführung
Die Garantin hat einen Audit und Compliance
Ausschuss gegründet, der die Funktionsweise interner
Kontrollen,
die
Einhaltung
von
Gesetzen,
Verordnungen und interner Geschäftspraktiken sowie
die Eignung, Leistung und Unabhängigkeit der
unabhängigen
Wirtschaftsprüfer
überprüft.
Die
Mitglieder des Audit und Compliance Ausschuss sind:
Earl Nemser
Paul Brody
Alexander Loffe
Arnold Feist
Bradford Jacobowitz
David Battan
Douglas Madonia
Flavio Iten
Jeffrey Bauch
John Good
Josef Kornmann
Marlene Ward
Yogi Aggarwal
Die Garantin hat sich den Corporate-GovernanceRegeln der U.S.A. unterworfen.
Hauptaktionäre
Herrn Thomas Peterffy und die mit ihm verbundenen
Unternehmen (einschließlich TP Holdings Limited
Partnership) halten rund 85% der Mitgliedschaftsrechte an IBG Holdings LLC.
Historische Finanzinformationen
Die nachfolgende Übersicht stellt in zusammengefasster Form die Bilanz, die Gewinn- und
Verlustrechnung und die Kapitalflussrechnung der Garantin dar, die den konsolidierten
geprüften Jahresabschlüssen (US-GAAP) der IBG LLC und ihren Tochterunternehmen für die
jeweils am 31. Dezember endenden Geschäftsjahre 2008 und 2009 entnommen wurden.
55
Bilanz
(in tausend)
Aktiva (Assets)
(Cash and cash equivalents)
Zahlungsmittel und Wertpapiere - getrennt für
regulatorische Zwecke (Cash and securities segregated for regulatory purpose)
Wertpapierleihgeschäfte (Securities borrowed)
Wertpapier-Pensionsgeschäfte
(Securities
purchased under agreements to resell)
Handelsaktiva zum beizulegenden Zeitwert
(Trading assets, at fair value):
Im
Eigenbestand
gehaltene
Finanzinstrumente (Financial instruments
owned)
Als Sicherheit aus dem Eigenbestand
verpfändete Finanzinstrumente (Financial
instruments owned and pledged as collateral)
31. Dezember
2009
$
Sonstige Forderungen (Other receivables):
an Kunden, abzüglich Wertberichtigung auf
zweifelhafte Forderungen in Höhe von
$16.637 und $ 17.572 am 31. Dezember
2009 und 2008 (Customers, less allowance
for doubtful accounts of $16,637 and $
17,572 at December 31, 2009 and 2008)
Broker, Händler und Clearingunternehmen
(Brokers, dealers and clearing organizations)
Forderungen anverbundenes Unternehmen
(Receivable from affiliates)
Zinsen (Interest)
Sonstige Vermögenswerte (Other assets)
Vermögenswerte gesamt (Total assets)
$
Passiva (Liabilities and Equity )
Verbindlichkeiten (Liabilities):
Handelspassiva - verkaufte aber noch nicht
gekaufte Finanzinstrumente zum beizulegenden
Zeitwert
(Trading
liabilities
financial
instruments sold but not yet purchased, at fair
value)
Wertpapierverleihgeschäfte (Securities loaned)
Kurzfristige
Kreditaufnahmen
(Short-term
borrowings)
Sonstige Verbindlichkeiten (Other payables):
Kunden (Customers)
Broker, Händler und Clearingunternehmen
(Brokers, dealers and clearing organizations)
gegenüber
verbundenem
Unternehmen
(Payable to affiliate)
Verbindlichkeiten, Aufwandsabgrenzungen
und sonstige Verbindlichkeiten (Accounts
payable, accrued expenses and other
liabilities)
Zinsen (Interest)
56
$
806.046
31. Dezember
2008
$
942.889
6.728.936
5.063.026
4.992.121
5.911.881
413.005
715.732
7.809.944
10.049.481
1.534.038
9.343.982
1.065.180
11.114.661
3.239.625
1.621.162
493.063
2.527.981
1.122
14.720
3.748.530
162.018
26.265.543
641
25.185
4.174.969
149.024
28.001.277
8.763.201
1.133.658
$
$
13.476.757
656.625
320.803
208.117
10.587.701
6.929.617
164.523
1.614.810
9.560
14.019
238.224
9.114
284.488
16.182
Verbindlichkeiten aus
(Senior notes payable)
Vorrangig besicherte
secured credit facility)
vorrangigen
11.009.122
8.859.116
205.777
143.054
21.432.561
300.000
23.643.669
4.831.794
4.356.668
1.188
4.832.982
26.265.543
940
4.357.608
28.001.277
Anleihen
Kreditfazilität
(Senior
Verpflichtungen, Eventualverbindlichkeiten
und Garantien (Commitments, contingencies
and guarantees)
Eigenkapital (Equity):
Gesellschafteranteile
einschließlich
aufgelaufener Gewinne in Höhe von $277.906
and $173.139 (Members’ interests, including
accumulated other comprehensive income of
$277,906 and $173,139)
Nicht
beherrschende
Anteile
an
Tochterunternehmen (Non-controlling interests
in subsidiaries)
Eigenkapital gesamt (Total equity)
Summe der Passiva (Total liabilities and equity)
$
$
Gewinn- und Verlustrechnung
Jahr endend am 31. Dezember
(in tausend)
Erträge (Revenues):
Operatives
Ergebnis
(Trading
gains)
Provisionen
und
Transaktionskosten (Commissions
and execution fees)
Zinserträge (Interest income)
Sonstige Erträge (Other income)
Erträge gesamt (Total revenues)
2009
$
633.865
Zinsaufwendungen
(Interest
expense)
Nettoerträge gesamt (Total net
revenues)
Sonstige
Aufwendungen
(Noninterest expenses):
Abwicklung
und
Clearing
(Execution and clearing)
Mitarbeitervergütung und Boni
(Employee compensation and
benefits)
Raumkosten,
Abschreibung,
(Occupancy, depreciation and
amortization)
Kommunikation
(Communications)
Verwaltungskosten (General and
administrative)
Zinsunabhängige
Aufwendungen insgesamt
(Total non-interest expenses)
57
2008
$
1.303.994
353.030
121.618
61.260
1.169.773
359.529
437.167
81.669
2.182.359
69.591
332.130
1.100.182
1.850.229
273.203
322.746
175.827
158.018
40.340
37.663
22.789
18.650
43.518
63.138
555.677
600.215
Ergebnis vor Steuern (Income before
income taxes)
Ertragssteueraufwand (Income tax
expense)
Nettoertrag
einschließlich
nicht
beherrschender Anteile (Net income
including non-controlling interests)
Den nicht beherrschenden Anteilen
zurechenbarer
Nettoertrag
(Net
income attributable to non-controlling
interests)
Nettoertrag (Net income)
544.505
1.250.014
37.569
102.611
506.936
1.147.403
294
506.642
$
262
1.147.141
$
Kapitalflussrechnung
Jahr endend am 31. Dezember
(in tausend)
Cashflow aus laufender Geschäftstätigkeit
(Cash flows from operating activities):
Nettoeinnahmen (Net income)
Anpassung von Nettoeinkommen und Netto
Geldmitteln aus operativem Geschäft
(Adjustment to reconcile net income to net
cash provided by operating activities):
Umrechnungsverluste (-gewinne) (2008,
wie angepasst) (Translation (gains) losses
(2008, as adjusted))
Abgegrenzte Einkommensteuern
(Deferred income taxes)
Abschreibungen (Depreciation and
amortization)
Aufwendungen für
Mitarbeiterbeteiligungsprogramm
(Employee stock plan compensation)
Netto- Gewinne (Verluste) aus
Investitionen, die nicht aus
Handelgeschäften resultieren (Gains
(losses) on non-trading investments, -net)
Forderungsausfallkosten und andere
Kosten (Bad debt expense and other)
Veränderung des betrieblichen Aktiva und
Passiva (2008, wie angepasst) (Change in
operating assets and liabilities (2008, as
adjusted)):
Abnahme (Zunahme) von Zahlungsmitteln
und Wertpapieren (Decrease (increase) in
cash and securities) - getrennt für
regulatorische Zwecke (segregated for
regulatory purposes)
Abnahme (Zunahme) von
Wertpapierleihgeschäften (Decrease
(increase) in securities borrowed)
Abnahme (Zunahme) von WertpapierPensionsgeschäften (Decrease (increase)
in securities purchased under agreements
to resell)
Abnahme (Zunahme) von Handelsaktiva
58
2009
$
506.936
2008
$
1.147.403
10.555
59.201
(38.610)
34.763
21.074
17.897
33.192
25.921
8.939
14.107
(559)
20.287
(1.736.695)
240,462
855.874
956.426
302.710
(680.721)
(Decrease (increase) in trading assets)
Abnahme (Zunahme) der Forderungen an
Kunden (Decrease (increase) in
receivables from customers)
Abnahme (Zunahme) der sonstigen
Forderungen (Decrease (increase) in
other receivables)
Zunahme sonstiger Vermögenswerte
(Increase in other assets)
Abnahme von Handelspassiva (Decrease
in trading liabilities)
Zunahme (Abnahme) von
Wertpapierverleihgeschäften (Increase
(decrease) in securities loaned)
Zunahme(Abnahme) von
Verbindlichkeiten gegenüber Kunden
(Increase (decrease) in payable to
customers)
Zunahme (Abnahme) der sonstigen
Verbindlichkeiten (Increase (decrease) in
other payables)
Aus der laufenden Geschäftstätigkeit
erwirtschaftete (eingesetzte)
Zahlungsmittel ((Net cash provided by
(used in) operating activities)
Cashflow aus Investitionstätigkeit (Cash flows
from investing activities):
Erwerb (Veräußerung) von Investitionen
((Purchase) sale of investments)
Ausschüttungen aus Börseninvestitionen
(Distributions received from equity
investment )
Kauf von Handelsrechten (Purchase of
trading rights)
Erwerb von Sachanlagen (Purchase of
property and equipment)
Mittelabfluß aus Investitionstätigkeit
(Net cash used in investing activities)
Cashflow aus Finanzierungstätigkeit (Cash flows
from financing activities):
Dividendenzahlungen (Dividends paid)
Begebung von vorrangigen Anleihen
(Issuance of senior notes)
Tilgung von vorrangigen Anleihen
(Redemptions of senior notes)
Kreditverbindlichkeiten unter vorrangig
besicherten Kreditfazilitäten (Borrowings
under senior secured credit facility)
Rückzahlungen unter vorrangig
besicherten Kreditfazilitäten (Repayments
of senior secured credit facility
Netto-Zunahme (Netto-Abnahme) von
kurzfristiger Kreditaufnahme (Increase
(decrease) increase in short-term
borrowings, net)
eingelöste Anteile von IBG LLC (IBG LLC
member interests redeemed)
Verringerung der nicht beherrschenden
Anteile an Tochterunternehmen
59
1.810.626
5.764.571
(1.618.958)
295.559
2.053.292
26.138
(14.270)
(3.707)
(4.683.259)
(820.817)
479.335
(4.310.029)
3.656.289
(698.735)
(1.481.156)
30.389
165.315
2.119.115
(11.300)
5.866
2.292
635
-
-
(18.492)
(26.695)
(27.500)
(20.194)
(139.324)
(248.529)
508.116
474.566
(445.393)
(491.968)
800
550.000
(300.800)
(550.000)
86.464
(1.281.108)
(14.903)
(76.001)
22
-
(Reduction in non-controlling interest in
subsidiary)
Rücknahme von Stammaktien der Klasse
A (Repurchase of Class A Common
Stock)
Kapitaleinlagen an THE (Cash capital
contribution to THE)
Von Mitarbeitern erworbene Stammaktien
der Klasse A (Class A Common Stock
acquired from employees)
Aus der Finanzierungstätigkeit
erwirtschaftete (eingesetzte)
Zahlungsmittel (Net cash (used in )
provided by financing activities)
Auswirkung von Wechselkursänderungen auf
(Effect of exchange rate changes on cash and
cash equivalents)
Nettozunahme (Abnahme) von Zahlungsmitteln
und Zahlungsmitteläquivalenten (Net increase
(decrease) in cash and cash equivalents)
zu Beginn des Berichtszeitraums (Cash and
cash equivalents at beginning of period)
zum Ende des Berichtzeitraumes (Cash and
cash equivalents at end of period)
Zusätzliche Offenlegung von Cash FlowInformationen:
Zinsaufwand (Interest paid)
Gezahlte Steuern (Taxes paid)
Zahlungsunwirksame Investitionstätigkeiten
(Non-cash investing activities):
Refinanzierung von Überbrückungskredit
(Refinancing of bridge loan)
Zahlungsunwirksame
Investitionstätigkeiten gesamt (Total
non-cash investing activities)
-
(866)
-
-
-
-
(305.018)
(1.623.906)
30.360
(52.256)
(136.843)
422.759
942.889
520.130
$
806.046
$
942.889
$
$
76.659
87.354
$
$
369.200
60.406
$
-
$
$
-
$
Prüfung der historischen
Finanzinformationen
Die Abschlussprüfer der Garantin haben die
Jahresabschlüsse für das am 31. Dezember 2008 und
das am 31. Dezember 2009 beendete Geschäftsjahr
geprüft und in jedem Fall einen uneingeschränkten
Bestätigungsvermerk erteilt.
Gerichts- und
Schiedsgerichtverfahren
Die Garantin ist an keinen staatlichen Interventionen,
Gerichts- oder Schiedsgerichtverfahren (einschließlich
derjenigen Verfahren, die nach Kenntnis der Garantin
noch anhängig sind oder eingeleitet werden könnten)
beteiligt, die im Zeitraum der 12 letzten Monate
bestanden/abgeschlossen wurden, und die sich
erheblich auf die wirtschaftliche Position oder
Rentabilität der Garantin oder der IB Group auswirken
60
bzw. ausgewirkt haben.
2.6
Wesentliche Veränderungen in der
Finanzlage oder der
Handelsposition der Garantin
Seit dem Ende des letzten Geschäftsjahres, für das ein
geprüfter Jahresabschluss veröffentlicht wurde, sind
keine wesentlichen Veränderungen in der Finanzlage
oder der Handelsposition der Garantin eingetreten.
Stammkapital
Wesentliche Verträge
Die Garantin ist im Rahmen der normalen
Geschäftstätigkeit
keine
wesentlichen
Verträge
eingegangen, die dazu führen könnten, dass jedwedes
Mitglied der Gruppe eine Verpflichtung oder ein Recht
erlangt, das für die Fähigkeit der Garantin, ihren
Verpflichtungen gegenüber den Wertpapierinhabern in
Bezug
auf
die
ausgegebenen
Wertpapier
nachzukommen, von wesentlicher Bedeutung ist.
ZUSAMMENFASSUNG DER BESCHREIBUNG DER DERIVATIVEN WERTPAPIERE
Derivative Wertpapiere
Die Derivativen Wertpapiere stellen zinslose Inhaberschuldverschreibungen im Sinne des § 793
des Bürgerlichen Gesetzbuches dar. Die Derivativen Wertpapiere berechtigen den
Wertpapierinhaber zu einem Auszahlungsbetrag in Bezug auf die Derivativen Wertpapiere
gegenüber der Emittentin. Der Auszahlungsbetrag ist ein Betrag, der von der Entwicklung des
jeweiligen dem Derivativen Wertpapier zu Grunde liegenden Basiswertes abhängt. Basiswerte
können eine Aktie, ein Index, ein Währungswechselkurs, ein Edelmetall, ein Rohstoff, ein
Zinssatz oder ein Fondsanteil sein. Der Basiswert wird in den Endgültigen Bedingungen
bestimmt. Für die Derivativen Wertpapiere können als Referenz für die Berechnung des
Auszahlungsbetrages unter anderem der Kurs des Basiswertes an dem Tage, an dem die
Bewertung erfolgt, sowie das Bezugsverhältnis, welches das numerische Verhältnis der
Derivativen Wertpapiere zu dem Basiswert darstellt, dienen. In den Wertpapierbedingungen
finden sich Regelungen bezüglich des Anspruchs auf Zahlung des Auszahlungsbetrages. Die
Höhe des Auszahlungsbetrages ist das Produkt aus dem Kurs des Basiswertes am
Bewertungstag und dem Bezugsverhältnis. Eine Beschreibung des Basiswertes sowie der Ort,
an dem Informationen zu dem Basiswert zu finden sind, werden in den Endgültigen
Bedingungen enthalten sein. Die Derivativen Wertpapiere können mit einer oder ohne eine
Kapitalgarantie ausgestattet sein; im Fall der Ausstattung mit einer Kapitalgarantie entspricht
der Auszahlungsbetrag mindestens dem kapitalgarantierten Mindestrückzahlungsbetrag, d.h.
4
der Höhe des Betrages zu dem die Derivativen Wertpapiere mindestens zurückgezahlt werden.
Interactive Brokers Financial Products S.A. begibt gemäß den Bestimmungen des
Basisprospekts die jeweiligen Derivativen Wertpapiere als Emittentin nach deutschem Recht.
Jegliche Zahlungen betreffend die Derivativen Wertpapiere sind in der in den Endgültigen
Bedingungen festgelegten Währung vorzunehmen.
Die Laufzeit der Derivativen Wertpapiere endet - vorbehaltlich einer ordentlichen oder
außerordentlichen Kündigung oder einer vorzeitigen Kündigung, sofern in den
Wertpapierbedingungen vorgesehen - am Verfalltag, der in den Endgültigen Bedingungen
festgelegt wird.
4
In den Endgültigen Bedingungen wird festgelegt, ob die Derivativen Wertpapiere mit einer Kapitalgarantie (d.h. ein
Mindestrückzahlungsbetrag wird garantiert) oder ohne eine Kapitalgarantie ausgestattet sind.
61
Status
Die Derivativen Wertpapiere begründen unmittelbare, ungesicherte und nicht nachrangige
Verbindlichkeiten, die untereinander und mit anderen gegenwärtigen und zukünftigen
ungesicherten und nicht nachrangigen Verbindlichkeiten, ausgenommen der Verbindlichkeiten,
die nach den zwingenden Vorschriften des Rechts vorrangig sind, im gleichen Rang stehen.
2.7
ZUSAMMENFASSUNG DER BESCHREIBUNG DES PROGRAMMES
Arranger and Dealer
Timber Hill (Europe) AG (THE)
Die Emittentin ist berechtigt, entsprechend den
Bestimmungen des Dealer Agreement zusätzlich zu
dem vorstehend genannten Dealer andere Dealer in
Bezug auf das gesamte Angebotsprogramm oder in
Bezug auf einzelne oder mehrere Serien zu bestellen
(Dealer).
Fiscal Agent und Zahlstelle
Timber Hill (Europe) AG, sofern in den Endgültigen
Bedingungen nichts anderes bestimmt ist.
Programmtyp
Angebotsprogramm zur Begebung von Derivativen
Wertpapieren (Inhaberschuldverschreibungen), deren
Wertpapierbedingungen deutschem Recht unterliegen.
Zahlungen bei Ausübung oder Rückzahlung der
Derivativen Wertpapiere sind von einem oder
mehreren Basiswerten abhängig.
Garantie
Die Garantin übernimmt die unbedingte und
unwiderrufliche Garantie für die termingerechte
Erfüllung von fälligen Zahlungsverpflichtungen der
Emittentin der Derivativen Wertpapiere entsprechend
dem Garantievertrag zwischen Emittentin und
Garantin.
Emission in Serien
Die Derivativen Wertpapiere werden in Serien
begeben (jeweils eine Emission). Jede Emission kann
eine oder mehrere Tranchen einschließen (Tranchen
und jeweils eine Tranche), die an verschiedenen
Ausgabetagen ausgegeben werden. Die unter jeder
Emission
begebenen
Derivativen
Wertpapiere
unterliegen grundsätzlich den gleichen Bedingungen,
mit der Ausnahme, dass der Ausgabetag und der
Ausgabepreis in Bezug auf verschiedene Tranchen
unterschiedlich sein können.
Steuern
Zahlungen unter den Derivativen Wertpapieren werden
ohne Einbehalt oder Abzug von Steuern, Abgaben
Festsetzungen oder behördlichen Gebühren jedweder
Art geleistet, die von Luxemburg bzw. den Vereinigten
Staaten oder einer Gebietskörperschaft oder Behörde
von Luxemburg bzw. der Vereinigten Staaten mit der
Befugnis zur Erhebung von Steuern auferlegt,
erhoben, einbezogen, einbehalten oder festgesetzt
wird, es sei denn der Einbehalt oder der Abzug ist
gesetzlich vorgeschrieben.
Falls ein solcher Einbehalt oder Abzug gesetzlich
vorgeschrieben ist, wird die Emittentin keine
62
zusätzlichen Beträge leisten.
Verkaufsbeschränkungen
Angebot und Verkauf der Derivativen Wertpapiere
sowie die Verteilung von Angebotsunterlagen
unterliegen in den Vereinigten Staaten und in den
Vertragsstaaten des Europäischen Wirtschaftsraumes
Verkaufsbeschränkungen
und
sonstigen
Beschränkungen, die nach dem anwendbaren Recht
mit dem Angebot und Verkauf einzelner Tranchen von
Derivativen Wertpapieren im Zusammenhang stehen.
Form der Derivativen Wertpapiere
Die
Derivativen
Wertpapiere
werden
als
Inhaberschuldverschreibungen nach deutschem Recht
ausgegeben.
Billigung und Notifizierung
Die Billigung des Basisprospekts gemäß Art. 13
Prospektrichtlinie
und
gemäß
§
13
des
Wertpapierprospektgesetz wurde ausschließlich bei
der Bundesanstalt für Finanzdienstleistungsaufsicht
(BaFin) als zuständiger Behörde beantragt. Die BaFin
hat diesen Basisprospekt nach Maßgabe des § 13
Abs. 1 Satz 2 Wertpapierprospektgesetz gebilligt, der
eine Prüfung des Basisprospekts auf Vollständigkeit,
Kohärenz und Verständlichkeit verlangt.
Unter dem Datum dieses Prospekts wurde eine
Notifizierung gemäß Art. 17 und 18 der
Prospektrichtlinie
nach
Großbritannien
(United
Kingdom) beantragt. Darüber hinaus kann die
Emittentin bei der BaFin beantragen, dass eine
Bescheinigung über die Billigung den zuständigen
Behörden der Aufnahmestaaten innerhalb der
Europäischen Union gemäß Art. 17 und 18 der
Prospektrichtlinie übermittelt wird.
Listing / Börseneinführung
In den Endgültigen Bedingungen wird für die jeweilige
Tranche festgelegt, ob eine Einbeziehung der
Derivativen Wertpapiere in den Freiverkehr einer
Wertpapierbörse stattfindet.
63
3
RISK FACTORS
The following is a disclosure of risk factors that may affect Interactive Brokers Financial
Products S.A.’s (the Issuer’s) and IBG LLC (the Guarantor’s) ability to fulfil its obligations
under the warrants (the Warrants) and certificates (the Certificates and together with the
Warrants, the Derivative Securities) and of risk factors that are related to the Derivative
Securities issued under this prospectus (the Base Prospectus). Prospective purchasers
of Derivative Securities should consider these risk factors, together with the other
information in this Base Prospectus, before deciding to purchase Derivative Securities
issued under the warrant and certificate programme of the Issuer (the Programme).
Prospective purchasers of Derivative Securities are also advised to consult their own tax
advisors, legal advisors, accountants or other relevant advisors as to the risks
associated with, and consequences of, the purchase, ownership and disposition of
Derivative Securities, including the effect of any laws of each country of which they are
resident.
3.1
RISKS RELATING TO THE GUARANTOR AND THE ISSUER
Risks relating to the Guarantor
This section sets forth risks and conditions that the Guarantor believes could adversely affect
the Guarantor’s financial condition.
The Guarantor is the parent company of the Interactive Brokers group of companies (consisting
of the Guarantor and its subsidiaries, and also defined as IB Group). Any guarantees with
respect to Derivative Securities granted by the Guarantor will be solely the Guarantor’s
obligations, and no other IB Group entity (including Interactive Brokers Group, Inc.) will
have any obligation, contingent or otherwise, to make any payments in respect thereof.
Because the Guarantor is a holding company whose primary assets consist of shares of stock
or other equity interests in or amounts due from subsidiaries, almost all of its income is derived
from those subsidiaries. The Guarantor’s parent, affiliates and subsidiaries will have no
obligation to pay any amount in respect of Derivative Securities guaranteed by the
Guarantor (unless the relevant subsidiary is itself the issuer of a Derivative Securities
guaranteed by the Guarantor) or to make any funds available for this. Accordingly, the
Guarantor will be dependent on dividends and other distributions or loans from its subsidiaries
to generate the funds necessary to meet obligations with respect to Derivative Securities
guaranteed by it and a holder of such Derivative Securities could lose all or part of its
investment. Due to covenants contained in certain of the Guarantor’s debt agreements and
regulations relating to capital requirements affecting certain of its more significant subsidiaries,
the ability of certain subsidiaries to pay dividends and other distributions and make loans to the
Guarantor is restricted. Additionally, as an equity holder, the Guarantor’s ability to participate in
any distribution of assets of any subsidiary may be subordinated to the claims of creditors of the
subsidiary, except to the extent that any claims the Guarantor may have as a creditor of the
subsidiary are judicially recognized. If these sources are not adequate, the Guarantor may be
unable to make payments of principal in respect of Derivative Securities guaranteed by it, and a
holder of such Derivative Securities could lose all or a part of its investment.
Factors Affecting the Guarantors Results of Operations
IB Group’s (including the Guarantor’s) financial condition and results of operations, on which
payment of any dividends and other distributions or loans to the Guarantor depends, may be
affected by uncertain or unfavourable economic, market, legal and other conditions. These
conditions include but are not limited to the following risks:
64
Market Risk
The term “Market Risk” describes changes in interest
and foreign exchange rates, financial instruments and
real estate valuations and increases in volatility.
Competitive Environment
The term “Competitive Environment” describes the fact
that the Guarantor’s competitive ability in the global
financial markets depends on factors such as its
reputation, the quality of its services, product
innovation, execution ability, pricing, sales and the
talent of its employees.
Business Environment
The term “Business Environment” describes the global
financial markets being affected by concerns about
geopolitical developments.
Liquidity
The term “Liquidity” describes liquidity and liquidity
management being affected by the Guarantor’s
inability, however temporary, to access the long-term
or short-term debt, repurchase or securities-lending
markets or to draw under credit facilities.
Credit Ratings
The term “Credit Ratings” describes the Guarantor’s
ability and costs to access to the unsecured funding
markets being dependent on its credit ratings.
Credit Exposure
The term “Credit Exposure” describes the possibility,
however unforeseen or remote, that a counterparty
may be unable to honour its contractual obligations to
the Guarantor.
Operational Risk
The term “Operational Risk” describes the risk of loss
resulting from inadequate or failed internal or
outsourced processes, people, infrastructure and
technology systems.
Legal, Regulatory and Reputational
Risk
The term “Legal, Regulatory and Reputational Risk”
describes any increases in the costs of compliance
requirements under, together with the legal,
reputational and/or administrative costs of any violation
of, the extensive regulation to which the securities and
financial services industries are subject in the many
jurisdictions in which the Guarantor does business.
The additional risk factors set out below with respect to IB Group apply to the Issuer in the case
of an investment in the Issuer’s securities guaranteed by the Guarantor, as (i) the Issuer’s cash
flows depend to a material extent on cash flows received from hedging activities of other IB
Group companies and (ii) the business activities of the Issuer with third party market
participants, being broadly of the same nature as the business activities of IB Group as a whole;
hence, the Issuer and the Guarantor are affected by the same risks:
IB Group may be harmed by global events beyond its control, including overall
slowdowns in securities trading.
Like other brokerage and financial services firms, IB Group’s business and profitability are
directly affected by elements that are beyond its control, such as economic and political
conditions, broad trends in business and finance, changes in volume of securities and futures
transactions, changes in the markets in which such transactions occur and changes in how
65
such transactions are processed. A weakness in equity markets, such as a slowdown causing
reduction in trading volume in U.S. or foreign securities and derivatives, has historically resulted
in reduced transaction revenues and would have a material adverse effect on IB Group’s
business, financial condition and results of operations.
Because IB Group’s revenues and profitability depend on trading volume, they are prone
to significant fluctuations and are difficult to predict.
IB Group’s revenues are dependent on the level of trading activity on securities and derivatives
exchanges in the United States and abroad. In the past, IB Group’s revenues and operating
results have varied significantly from period to period due primarily to the willingness of
competitors to trade more aggressively by decreasing their bid/offer spreads and thereby
assuming more risk in order to acquire market share, to movements and trends in the
underlying markets, and to fluctuations in trading levels. As a result, period to period
comparisons of IB Group’s revenues and operating results may not be meaningful and future
revenues and profitability may be subject to significant fluctuations or declines.
IB Group’s reliance on its computer software could cause IB Group great financial harm
in the event of any disruption or corruption of its computer software. IB Group may
experience technology failures while developing its software.
IB Group relies on its computer software to receive and properly process internal and external
data. Any disruption for any reason in the proper functioning or any corruption of its software or
erroneous or corrupted data may cause IB Group to make erroneous trades or suspend its
services and could cause IB Group great financial harm. In order to maintain its competitive
advantage, IB Group’s software is under continuous development. As IB Group identifies and
enhances its software, there is risk that software failures may occur and result in service
interruptions and have other unintended consequences.
IB Group’s business could be harmed by a systemic market event.
Some market participants could be overleveraged. In case of sudden, large price movements,
such market participants may not be able to meet their obligations to brokers who, in turn, may
not be able to meet their obligations to their counterparties. As a result, the financial system or a
portion thereof could collapse, and the impact of such an event could be catastrophic to IB
Group’s business.
IB Group may incur material trading losses from its market making activities.
A substantial portion of IB Group’s revenues and operating profits is derived from trading as
principal in its role as a market maker and specialist. IB Group may incur trading losses relating
to these activities since each primarily involves the purchase or sale of securities for its own
account. In any period, IB Group may incur trading losses in a significant number of securities
for a variety of reasons including:
- price changes in securities;
- lack of liquidity in securities in which it has positions; and
- the required performance of its market making and specialist obligations.
These risks may limit or restrict IB Group’s ability to either resell securities it purchased or to
repurchase securities it sold. In addition, IB Group may experience difficulty borrowing securities
to make delivery to purchasers to whom it sold short, or lenders from whom it has borrowed.
From time to time, IB Group has large position concentrations in securities of a single issuer or
issuers engaged in a specific industry or traded in a particular market. Such a concentration
could result in higher trading losses than would occur if its positions and activities were less
concentrated.
66
In IB Group’s role as a market maker, it attempts to derive a profit from the difference between
the prices at which it buys and sells, or sells and buys, securities. However, competitive forces
often require it to match the quotes other market makers display and to hold varying amounts of
securities in inventory. By having to maintain inventory positions, IB Group is subjected to a
high degree of risk. IB Group cannot assure that it will be able to manage such risk successfully
or that it will not experience significant losses from such activities, which could have a material
adverse effect on IB Group’s business, financial condition and operating results.
Reduced spreads in securities pricing, levels of trading activity, high frequency traders,
and trading through market makers and/or specialists could harm IB Group’s business.
Computer-generated buy/sell programs and other technological advances and regulatory
changes in the marketplace may continue to tighten spreads on securities transactions. Tighter
spreads and increased competition could make the execution of trades and market making
activities less profitable. There is also an ever growing presence of high frequency traders in the
listed options market. These traders compete with market makers, but receive certain customer
preferences on exchanges. Increased competition by high frequency traders could result in
reduced revenues in market making activities. In addition, new and enhanced alternative trading
systems such as electronic communication networks (ECN) have emerged as an alternative for
individual and institutional investors, as well as broker-dealers, to avoid directing their trades
through market makers, and could result in reduced revenues derived from IB Group’s market
making business.
IB Group may incur losses in its market making activities in the event of failures of its
proprietary pricing model.
The success of IB Group’s market making business is substantially dependent on the accuracy
of its proprietary pricing mathematical model, which continuously evaluates and monitors the
risks inherent in its portfolio, assimilates market data and re-evaluates IB Group’s outstanding
quotes each second. The model is designed to automatically rebalance IB Group’s positions
throughout the trading day to manage risk exposures on its positions in options, futures and the
underlying securities. In the event of a flaw in IB Group’s pricing model and /or a failure in the
related software, IB Group’s pricing model may lead to unexpected and/or unprofitable trades,
which may result in material trading losses.
The valuation of the financial instruments IB Group hold may result in large and
occasionally anomalous swings in the value of its positions and in its earnings in any
period.
The market prices of IB Group’s long and short positions are reflected on its books at closing
prices which are typically the last trade price before the official close of the primary exchange on
which each such security trades. Given that IB Group manages a globally integrated portfolio, it
may have large and substantially offsetting positions in securities that trade on different
exchanges that close at different times of the trading day. As a result, there may be large and
occasionally anomalous swings in the value of its positions daily and, accordingly, in its
earnings in any period.
IB Group is exposed to losses due to lack of perfect information.
As market makers, IB Group provides liquidity by buying from sellers and selling to buyers.
Quite often, it trades with others who have different information than it does, and as a result, it
may accumulate unfavourable positions preceding large price movements in companies. Should
the frequency or magnitude of these events increase, IB Group’s losses will likely increase
correspondingly.
Rules governing specialists and designated market makers may require IB Group to
make unprofitable trades or prevent it from making profitable trades.
Specialists and designated market makers are granted certain rights and have certain
obligations to “make a market” in a particular security. They agree to specific obligations to
67
maintain a fair and orderly market. In acting as a specialist or designated market maker, IB
Group is subjected to a high degree of risk by having to support an orderly market. In this role,
IB Group may at times be required to make trades that adversely affect its profitability. In
addition, IB Group may at times be unable to trade for its own account in circumstances in
which it may be to its advantage to trade, and it may be obligated to act as a principal when
buyers or sellers outnumber each other. In those instances, IB Group may take a position
counter to the market, buying or selling securities to support an orderly market. Additionally, the
rules of the markets which govern IB Group’s activities as a specialist or designated market
maker are subject to change. If these rules are made more stringent, IB Group’s trading
revenues and profits as specialist or designated market maker could be adversely affected.
IB Group is subject to potential losses as a result of its clearing and execution activities.
As a clearing member firm providing financing services to certain of its brokerage customers, IB
Group is ultimately responsible for their financial performance in connection with various stock,
options and futures transactions. IB Group’s clearing operations require a commitment of its
capital and, despite safeguards implemented by its software, involve risks of losses due to the
potential failure of its customers to perform their obligations under these transactions. If
customers default on their obligations, IB Group remains financially liable for such obligations,
and although these obligations are collateralized, IB Group is subject to market risk in the
liquidation of customer collateral to satisfy those obligations. There can be no assurance that IB
Group risk management procedures will be adequate. Any liability arising from clearing
operations could have a material adverse effect on IB Group’s business, financial condition
and/or operating results.
As a clearing member firm of securities and commodities clearing houses in the United States
and abroad, IB Group is also exposed to clearing member credit risk. Securities and
commodities clearing houses require member firms to deposit cash and/or government
securities to a clearing fund. If a clearing member defaults in its obligations to the clearing
house in an amount larger than its own margin and clearing fund deposits, the shortfall is
absorbed pro rata from the deposits of the other clearing members. Many clearing houses of
which IB Group is a member also have the authority to assess their members for additional
funds if the clearing fund is depleted. A large clearing member default could result in a
substantial cost to IB Group if it is required to pay such assessments.
Regulatory and legal uncertainties could harm IB Group’s business.
The securities and derivatives businesses are heavily regulated. Firms in financial service
industries have been subject to an increasingly regulated environment over recent years, and
penalties and fines sought by regulatory authorities have increased accordingly. This regulatory
and enforcement environment has created uncertainty with respect to various types of
transactions that historically had been entered into by financial services firms and that were
generally believed to be permissible and appropriate. IB Group’s broker-dealer subsidiaries are
subject to regulations in the United States and abroad covering all aspects of their business.
Regulatory bodies include, in the United States, the SEC, FINRA, the Board of Governors of the
Federal Reserve System, the Chicago Board Options Exchange, the Chicago Mercantile
Exchange, the Commodity Futures Trading Commission, and the National Futures Association;
in Switzerland, the Federal Banking Commission; in the United Kingdom, the Financial Services
Authority; in Hong Kong, the Securities and Futures Commission; in Australia, the Australian
Securities and Investment Commission; in India, the Securities and Exchange Board of India;
and in Canada, the Investment Industry Regulatory Organization and various Canadian
securities commissions. IB Group’s mode of operation and profitability may be directly affected
by additional legislation changes in rules promulgated by various domestic and foreign
government agencies and self-regulatory organizations that oversee its businesses, and
changes in the interpretation or enforcement of existing laws and rules. Non-compliance with
applicable laws or regulations could result in sanctions being levied against IB Group, including
fines and censures, suspension or expulsion from a certain jurisdiction or market or the
revocation or limitation of licenses. Non-compliance with applicable laws or regulations could
adversely affect IB Group’s reputation, prospects, revenues and earnings. In addition, changes
68
in current laws or regulations or in governmental policies could adversely affect IB Group’s
operations, revenues and earnings.
Domestic and foreign stock exchanges, other self-regulatory organizations and state and
foreign securities commissions can censure, fine, issue cease-and-desist orders, suspend or
expel a broker-dealer or any of its officers or employees. IB Group’s ability to comply with all
applicable laws and rules is largely dependent on its internal system to ensure compliance, as
well as its ability to attract and retain qualified compliance personnel. IB Group could be subject
to disciplinary or other actions in the future due to claimed non-compliance, which could have a
material adverse effect on its business, financial condition and results of operations. To
continue to operate and to expand its services internationally, IB Group may have to comply
with the regulatory controls of each country in which it conducts, or intends to conduct business,
the requirements of which may not be clearly defined. The varying compliance requirements of
these different regulatory jurisdictions, which are often unclear, may limit IB Group’s ability to
continue existing international operations and further expand internationally.
IB Group depends on its proprietary technology and its future results may be impacted if
it cannot maintain technological superiority in its industry.
IB Group’s success in the past has largely been attributable to its sophisticated proprietary
technology. IB Group’s has benefited from the fact that the type of proprietary technology
equivalent to that which it employs has not been widely available to its competitors. If IB
Group’s technology becomes more widely available to its current or future competitors for any
reason, its operating results may be adversely affected. Additionally, adoption or development
of similar or more advanced technologies by competitors may require that IB Group devote
substantial resources to the development of more advanced technology to remain competitive.
The markets in which IB Group competes are characterized by rapidly changing technology,
evolving industry standards and changing trading systems, practices and techniques. Although
IB Group has been at the forefront of many of these developments in the past, it may not be
able to keep up with these rapid changes in the future, develop new technology, realize a return
on amounts invested in developing new technologies or remain competitive in the future.
The loss of IB Group key employees would materially adversely affect its business.
IB Group’s key executives have substantial experience and have made significant contributions
to its business, and its continued success is dependent upon the retention of key management
executives, as well as the services provided by its staff of trading system, technology and
programming specialists and a number of other key managerial, marketing, planning, financial,
technical and operations personnel. The loss of such key personnel could have a material
adverse effect on IB Group’s business. Growth in IB Group’s business is dependent, to a large
degree, on the ability to retain and attract such employees.
IB Group is exposed to risks associated with its international operations.
IB Group is exposed to risks and uncertainties inherent in doing business in international
markets, particularly in the heavily regulated brokerage industry. Such risks and uncertainties
include political, economic and financial instability; unexpected changes in regulatory
requirements, tariffs and other trade barriers; exchange rate fluctuations; applicable currency
controls; and difficulties in staffing, including reliance on newly hired local experts, and
managing foreign operations. These risks could cause a material adverse effect on IB Group’s
business, financial condition or results of operations.
IB Group does not have fully redundant systems. System failures could harm IB Group’s
business.
If IB Group’s systems fail to perform, it could experience unanticipated disruptions in operations,
slower response times or decreased customer service and customer satisfaction. IB Group’s
ability to facilitate transactions successfully and provide high quality customer service also
depends on the efficient and uninterrupted operation of its computer and communications
hardware and software systems. IB Group’s service has experienced periodic system
69
interruptions, which may continue to occur from time to time. IB Group’s systems and operations
also are vulnerable to damage or interruption from human error, natural disasters, power loss,
telecommunication failures, break-ins, sabotage, computer viruses, intentional acts of vandalism
and similar events. Although IB Group’s maintains redundant servers to provide limited service
during system disruptions, it does not have fully redundant systems, and its formal disaster
recovery plan does not include restoration of all services. In addition, IB Group does not carry
business interruption insurance to compensate for losses that could occur to the extent not
required. Any system failure that causes an interruption in IB Group’s service or decreases the
responsiveness of its service could impair its reputation, damage its brand name and materially
adversely affect its business, financial condition and results of operations.
Failure of third-party systems on which IB Group rely could adversely affect its business.
IB Group relies on certain third-party computer systems or third-party service providers,
including clearing systems, exchange systems, Internet service, communications facilities and
other facilities. Any interruption in these third-party services, or deterioration in their
performance, could be disruptive to IB Group’s business. If IB Group’s arrangement with any
third party is terminated, it may not be able to find an alternative source of systems support on a
timely basis or on commercially reasonable terms. This could have a material adverse effect on
its business, financial condition and results of operations.
IB Group faces competition in its market making activities.
In IB Group’s market making activities, it competes with other firms who act as market makers
based on its ability to provide liquidity at competitive prices and to attract order flow. Market
makers range from sole proprietors with very limited resources, of which there are still a few
hundred left, to a few highly sophisticated groups which have substantially greater financial and
other resources, including research and development personnel, than IB Group does. These
larger and better capitalized competitors may be better able to respond to changes in the
market making industry, to compete for skilled professionals, to finance acquisitions, to fund
internal growth and to compete for market share generally. IB Group may not be able to
compete effectively against these firms, particularly those with greater financial resources, and
its failure to do so could materially and adversely affect its business, financial condition and
results of operations. As in the past, IB Group may in the future face enhanced competition,
resulting in narrowing bid/offer spreads in the marketplace that may adversely impact its
financial performance. This is especially likely if others can acquire systems that enable them to
predict markets or process trades more efficiently than IB Group can.
IB Group’s direct market access clearing and non-clearing brokerage operations face
intense competition.
With respect to IB Group’s direct market access brokerage business, the market for electronic
and interactive bidding, offering and trading services in connection with equities, options and
futures is relatively new, rapidly evolving and intensely competitive. IB Group expects
competition to continue and intensify in the future. Increasing levels of competition in the online
trading industry could significantly harm IB Group’s business.
IB Group is subject to risks relating to litigation and potential securities laws liability.
IB Group is exposed to substantial risks of liability under federal and state securities laws, other
federal and state laws and court decisions, as well as rules and regulations promulgated by the
SEC, the CFTC, the Federal Reserve, state securities regulators, the self-regulatory
organizations and foreign regulatory agencies. IB Group is also subject to the risk of litigation
and claims that may be without merit. IB Group could incur significant legal expenses in
defending itself against and resolving lawsuits or claims. An adverse resolution of any future
lawsuits or claims against IB Group could have an adverse effect on its business, financial
condition and/or operating results.
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Any future acquisitions may result in significant transaction expenses, integration and
consolidation risks and risks associated with entering new markets, and IB Group may
be unable to profitably operate its consolidated company.
Although IB Group growth strategy has not focused historically on acquisitions, it may in the
future engage in evaluations of potential acquisitions and new businesses. IB Group may not
have the financial resources necessary to consummate any acquisitions in the future or the
ability to obtain the necessary funds on satisfactory terms. Any future acquisitions may result in
significant transaction expenses and risks associated with entering new markets in addition to
integration and consolidation risks. Because acquisitions historically have not been a core part
of IB Group growth strategy, it has no material experience in successfully utilizing acquisitions.
IB Group may not have sufficient management, financial and other resources to integrate any
such future acquisitions or to successfully operate new businesses and it may be unable to
profitably operate in the expanded company.
Internet-related issues may reduce or slow the growth in the use of IB Group’s services
in the future.
Critical issues concerning the commercial use of the Internet, such as ease of access, security,
privacy, reliability, cost, and quality of service, remain unresolved and may adversely impact the
growth of Internet use. If Internet usage continues to increase rapidly, the Internet infrastructure
may not be able to support the demands placed on it by this growth, and its performance and
reliability may decline. The recent growth in Internet traffic has caused frequent periods of
decreased performance, outages and delays. Although IB Group’s larger institutional customers
use leased data lines to communicate with IB Group, its ability to increase the speed with which
it provides services to consumers and to increase the scope and quality of such services is
limited by and dependent upon the speed and reliability of IB Group’s customers’ access to the
Internet, which is beyond IB Group’s control. If periods of decreased performance, outages or
delays on the Internet occur frequently or other critical issues concerning the Internet are not
resolved, overall Internet usage or usage of IB Group’s web based products could increase
more slowly or decline, which would cause IB Group’s business, results of operations and
financial condition to be materially and adversely affected.
IB Group’s computer infrastructure may be vulnerable to security breaches. Any such
problems could jeopardize confidential information transmitted over the Internet, cause
interruptions in its operations or cause IB Group to have liability to third persons.
IB Group’s computer infrastructure is potentially vulnerable to physical or electronic computer
break-ins, viruses and similar disruptive problems and security breaches. Any such problems or
security breaches could cause IB Group to have liability to one or more third parties, including
its customers, and disrupt its operations. A party able to circumvent IB Group’s security
measures could misappropriate proprietary information or customer information, jeopardize the
confidential nature of information transmitted over the Internet or cause interruptions in IB
Group’s operations. Concerns over the security of Internet transactions and the privacy of users
could also inhibit the growth of the Internet or the electronic brokerage industry in general,
particularly as a means of conducting commercial transactions. To the extent that IB Group’s
activities involve the storage and transmission of proprietary information such as personal
financial information, security breaches could expose IB Group to a risk of financial loss,
litigation and other liabilities. Any of these events, particularly if they (individually or in the
aggregate) result in a loss of confidence in IB Group or electronic brokerage firms in general,
could have a material adverse effect on IB Group business, results of operations and financial
condition.
IB Group may not be able to protect its intellectual property rights or may be prevented
from using intellectual property necessary for its business.
IB Group relies primarily on trade secret, contract, copyright, patent and trademark laws to
protect its proprietary technology. It is possible that third parties may copy or otherwise obtain
and use IB Group’s proprietary technology without authorization or otherwise infringe on IB
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Group’s rights. IB Group may also face claims of infringement that could interfere with its ability
to use technology that is material to its business operations.
In the future, IB Group may have to rely on litigation to enforce its intellectual property rights,
protect its trade secrets, determine the validity and scope of the proprietary rights of others or
defend against claims of infringement or invalidity. Any such litigation, whether successful or
unsuccessful, could result in substantial costs and the diversion of resources and the attention
of management, any of which could negatively affect IB Group’s business.
IB Group’s future success will depend on its response to the demand for new services,
products and technologies.
The demand for market making services, particularly services that rely on electronic
communications gateways, is characterized by:
- rapid technological change;
- changing customer demands;
- the need to enhance existing services and products or introduce new services and products;
and
- evolving industry standards.
New services, products and technologies may render IB Group’s existing services, products and
technologies less competitive. IB Group’s future success will depend, in part, on its ability to
respond to the demand for new services, products and technologies on a timely and costeffective basis and to adapt to technological advancements and changing standards to address
the increasingly sophisticated requirements and varied needs of its customers and prospective
customers. IB Group cannot assure that it will be successful in developing, introducing or
marketing new services, products and technologies. In addition, IB Group may experience
difficulties that could delay or prevent the successful development, introduction or marketing of
these services and products, and IB Group’s new service and product enhancements may not
achieve market acceptance. Any failure on IB Group’s part to anticipate or respond adequately
to technological advancements, customer requirements or changing industry standards, or any
significant delays in the development, introduction or availability of new services, products or
enhancements could have a material adverse effect on its business, financial condition and
operating results.
The expansion of IB Group’s market making activities into forex-based products entails
significant risk, and unforeseen events in such business could have an adverse effect on
its business, financial condition and results of operation.
Over the past several years IB Group has entered into market making for forex-based products.
This includes the trading of cash in foreign currencies with banks and exchange-listed futures,
options on futures, options on cash deposits and currency-based exchange-traded funds (ETF).
All of the risks that pertain to IB Group’s market making activities in equity-based products also
apply to its forex-based market making. In addition, IB Group has comparatively less experience
in the forex markets and even though IB Group is expanding this activity very slowly, any kind of
unexpected event can occur that can result in great financial loss.
IB Group is subject to counterparty risk whereby defaults by parties with whom it does
business can have an adverse effect on its business, financial condition and/or operating
results.
In IB Group’s electronic brokerage business, its customer margin credit exposure is to a great
extent mitigated by IB Group’s policy of automatically evaluating each account throughout the
trading day and closing out positions automatically for accounts that are found to be undermargined. While this methodology is effective in most situations, it may not be effective in
situations in which no liquid market exists for the relevant securities or commodities or in which,
72
for any reason, automatic liquidation for certain accounts has been disabled. If no liquid market
exists or automatic liquidation has been disabled, IB Group is subject to risks inherent in
extending credit, especially during periods of rapidly declining markets. Any loss or expense
incurred due to defaults by its customers in failing to repay margin loans or to maintain
adequate collateral for these loans would cause harm to IB Group’s business.
Risks relating to the Issuer
General
The Issuer, Interactive Brokers Financial Products S.A., is a subsidiary of the Guarantor. Like
each company of IB Group, the Issuer may be affected by uncertain or unfavourable economic,
market, legal and other conditions that are likely to affect IB Group.
By purchasing securities issued by Issuer, investors will take a credit risk on the Issuer (that is
the risk of the Issuer not being able to meet its payment obligations (if any) with respect to any
securities issued by it and purchased by the investors).
The proceeds of the issuance of securities by the Issuer may be used to enter into hedging
arrangements with other IB Group companies, principally Timber Hill (Europe) AG. The Issuer
may hedge its obligations by transacting in offsetting derivatives instruments with other IB
Group companies, principally Timber Hill (Europe) AG. In such cases, the derivative element of
any structured note would be consistently valued with the related hedging instruments.
Due to the above mentioned hedging structure of the Issuer, the ability to perform its obligations
may be affected by any inability or failure to perform obligations owed to the Issuer by other IB
Group companies, principally Timber Hill (Europe) AG.
The Issuer is not rated and to the extent it utilizes the unsecured funding markets, its ability to
do may also be dependent on the credit ratings of the Guarantor (IBG LLC).
As at the date of this Base Prospectus, the following ratings are available for the Guarantor:
Standard & Poor’s - Counterparty Risk: BBB+
BBB+
Long-Term (Standard & Poor’s): An obligation rated BBB exhibits adequate
protection parameters. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the obligor to
meet its financial commitment on the obligation.
Obligations rated BB, B, CCC, CC and C are regarded as having speculative
characteristics. BB indicates the least degree of speculation and C the highest.
While such obligations will likely have some quality and protective characteristics,
these may be outweighed by large uncertainties or major exposures to adverse
conditions.
Standard and Poor’s ratings from AA to CCC may be modified by the addition of a
plus or minus sign to show relative standing within the major rating categories.
The current rating respectively is available via electronic information systems. Where a tranche
of Derivative Securities is rated, such rating will not necessarily be the same as the ratings
assigned to the Programme.
Ratings are an attempt to quantify the risks relating to the Issuer, the Guarantor and the
Derivative Securities. These ratings may not reflect the potential impact of all risks relating to
the Guarantor or the Derivative Securities. Rating information is merely an aid for investors for
the purposes of decision-making and cannot replace an individual assessment as to the
suitability of an investment to be made by the investor and may not be taken as a
recommendation to purchase or sell certain Derivative Securities. Ratings are merely intended
as a support when making an investment decision and are only one of the factors relevant to an
73
evaluation, which factor must be seen and weighted in the context of other factors. As ratings
often are amended only after the creditworthiness of an issuer has changed, investors have to
make their own judgments although a rating may exist. Please note that a security rating is not
a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at
any time by the assigning rating organisation. Any negative change in the credit rating of the
Guarantor could adversely affect the trading price of the Derivative Securities.
Legal proceedings and regulatory matters
lawsuits or claims against IB Group could result in an adverse effect on its business, financial
condition and/or operating results.
The securities industry is highly regulated and many aspects of IB Group’s business involve
substantial risk of liability. In recent years, there has been an increasing incidence of litigation
involving the securities brokerage industry, including class action suits that generally seek
substantial damages, including in some cases punitive damages. Compliance and trading
problems that are reported to federal, state and provincial securities regulators, securities
exchanges or other self-regulatory organizations by dissatisfied customers are investigated by
such regulatory bodies, and, if pursued by such regulatory body or such customers, may rise to
the level of arbitration or disciplinary action. IB Group is also subject to periodic regulatory
audits and inspections. Like other securities brokerage firms, IB Group has been named as a
defendant in lawsuits and from time to time IB Group has been threatened with, or named as a
defendant in, arbitrations and administrative proceedings. IB Group may in the future become
involved in additional litigation or regulatory proceedings in the ordinary course of its business,
including litigation or regulatory proceedings that could be material to its business.
IB Group’s businesses are heavily regulated by state, federal and foreign regulatory agencies
as well as numerous exchanges and self-regulatory organizations. IB Group’s various
companies are regulated under state securities laws, U.S. and foreign securities, commodities
and financial services laws and under the rules of more than 25 exchanges and self-regulated
organisations (SRO).
IB Group receives hundreds of regulatory inquiries each year in addition to being subject to
frequent regulatory examinations. As of the date of this Base Prospectus, the Issuer is unaware
of any specific regulatory matter that, itself, or together with similar regulatory matters, would
have a material impact on IB Group’s financial condition.
3.2
RISKS RELATING TO THE DERIVATIVE SECURITIES
Risk factors relating to the Derivative Securities can be divided into the following categories:
Risks relating to the Warrants
An investment in the Warrants carries product-specific risks for the investor. The value of a
Warrant is determined not only by changes in the price of the underlying but also depends upon
a number of other factors. Accordingly, the value of the Warrants may decline even if the price
of the underlying remains constant. Prospective investors should note that changes in the price
of the underlying on which the Warrant is based (or even the non-occurrence of anticipated
changes) can lower the value of a Warrant. This risk is independent of the financial situation of
the Issuer.
Moreover, one of the key features of the Warrants as warrants is its so-called leverage effect:
Any change in the value of the underlying may result in a disproportionate change in the value
of the Warrant. The Warrants, consequently, also involve disproportionate loss exposure, if the
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underlying develops unfavourably. Therefore, when buying a certain Warrant, it should be noted
that the higher the leverage effect of a warrant, the higher the loss exposure involved. In
addition, it should be noted that, typically, the shorter the (remaining) maturity of the Warrant,
the higher the leverage effect.
In addition to the term of the Warrants, the frequency and intensity of price fluctuations
(volatility) in the underlying, the prevailing interest rates and the level of dividends paid or, as
the value of the Warrants and which may create certain risks for the investors in the Warrants.
Each potential investor must determine, based on its own independent review and such
professional advice as it deems appropriate under the circumstances, that its acquisition of the
Warrants is fully consistent with its (or if it is acquiring the Warrants in a fiduciary capacity, the
beneficiary's) financial needs, objectives and condition, complies and is fully consistent with all
investment policies, guidelines and restrictions applicable to it (whether acquiring the Warrants
as principal or in a fiduciary capacity) and is a fit, proper and suitable investment for it (or if it is
acquiring the Warrants in a fiduciary capacity, for the beneficiary), notwithstanding the clear and
substantial risks inherent in investing in or holding the Warrants.
Further features of the Warrant structure
Prior to investing in the Warrants, prospective investors should note that the following special
features of the Warrants, if specified in the relevant final terms (the Final Terms), may have an
impact on the value of the Warrants or, as the case may be, on any amount, if any, payable
according to the terms and conditions of the Warrants and that the Warrants accordingly have
special risk profiles:
Extent of participation in the performance of the underlying
The application of the exchange ratio within the determination of the option right results in the
Warrants being in economic terms similar to a direct investment in the underlying but being
nonetheless not fully comparable with such a direct investment, in particular because the
persons acknowledged by German laws as legal owners of the Derivative Securities (the
Securityholders) do not participate in the relevant performance by a 1: 1 ratio, but by the
proportion of the relevant exchange ratio.
Exchange rate risk
the Warrants is determined on the basis of a currency other than the Settlement Currency,
currency unit or calculation unit and/or, also the value of the underlying is determined in such a
currency other than the settlement currency, currency unit or calculation unit. Potential investors
should, therefore, be aware that investments in these Warrants could entail risks due to
fluctuating exchange rates, and that the risk of loss does not depend solely on the performance
of the underlying but also on unfavourable developments in the value of the foreign currency,
decrease the value of the purchased Warrants during their term or, as the case may be, the
level of the settlement amount. Currency exchange rates are determined by factors of offer and
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Special Features of Warrants on currency exchange rates, commodities or, as the case
used as the underlying, it should be noted that the values are traded 24 hours a day through the
time zones of Australia, Asia, Europe and America. Potential investors of the Warrants should,
therefore, be aware that a relevant limit or, as the case may be, threshold described in the
terms and conditions of the Warrants, may be reached, exceeded or fallen short at any time and
even outside of local or business hours of the Issuer, the calculation agent or the offeror.
Limitation of the exercise of the Option Right by the Securityholders
those Warrants, which are directly or indirectly based on German equities as the underlying,
may, in accordance with the terms and conditions of the Warrants, not be exercised on certain
days, i.e. on the day, on which the shareholders' general meeting of the German stock
corporation, the share of which is used for the purposes of the Warrants, takes place, and on
the calculation date (ex dividend day) immediately preceding such day. In addition, the relevant
Final Terms may also stipulate that the Warrants may be exercised by the Securityholders on
certain dates only. In the event that the exercise notice is not duly received by such exercise
date, the Warrants cannot be exercised until the next exercise date stated in the terms and
conditions of the Warrants.
Limitation of the exercise of the Option Right by the Securityholders by Minimum
Exercise Size
If so specified in the relevant Final Terms of the Warrants, any Securityholder must in
accordance with the terms and conditions of the Warrants tender a specified minimum number
of the Warrants in order to exercise the option right vested in the Warrants ( the Minimum
Exercise Size). Holders with less than the specified Minimum Exercise Size of Warrants will,
therefore, either have to sell their Warrants or purchase additional Warrants (incurring
transaction costs in each case).
Potential investors in the Warrants should furthermore be aware that the Issuer is, pursuant to
the terms and conditions of the Warrants, entitled to terminate and redeem the Warrants in total
prior to expiration date. In case the Issuer terminates and redeems the Warrants prior to
expiration date, the Securityholder is entitled to demand the payment of an amount in relation to
this early redemption. However, the Securityholder is not entitled to request any further
payments on the Warrants after the relevant termination date.
underlying, to the expected extent and during the expected period.
In case of a termination of the Warrants by the Issuer, the Securityholder bears the risk of a
reinvestment, i.e. the investor bears the risk that it will have to re-invest the amount, if any, paid
by the Issuer in case of termination at market conditions, which are less favourable than those
prevailing at the time of the acquisition of the Warrants.
The Securityholders do not have a termination right and the Warrants may, hence, not be
terminated by the Securityholders during their term. Prior to the maturity of the Warrants the
realisation of the economic value of the Warrants (or parts thereof), if any, is, consequently and
except for the Issuer's termination and early redemption of the Warrants or, as the case may be,
and if specified in the relevant Final Terms, an exercise of the option right by the
Securityholders in accordance with the terms and conditions of the Warrants, only possible by
way of selling the Warrants.
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Possible decline in the Price of the underlying after termination of the Warrants
In the event that the term of the Warrants is terminated early by the Issuer pursuant to the
Conditions of the Warrants, potential investors of the Warrants should note that any negative
performance of price of the underlying between the announcement of the termination by the
Issuer and the determination of the price of the underlying relevant for calculation of the then
payable cash amount are borne by the Securityholders.
Adverse Impact of adjustments of the Option Right
In case of the occurrence of a potential adjustment event, the Issuer shall be entitled, if so
specified in the relevant Final Terms of the Warrants, to effect adjustments according to the
terms and conditions of the Warrants. These adjustments might have a negative impact on the
value of the Warrants.
Negative effect of ancillary costs
Warrants may result in charges, particularly in combination with a low order value, which can
substantially reduce any settlement amount, if any, to be paid under the Warrants. Before
acquiring a Warrant, prospective investors should therefore inform themselves of all costs
incurred through the purchase or sale of the Warrant, including any costs charged by their
custodian banks upon purchase and maturity of the Warrants.
Prospective investors of the Warrants should not rely on the ability to conclude transactions at
any time during the term of the Warrants that will allow them to offset or limit relevant risks. This
depends on the market situation and the prevailing conditions. Transactions designed to offset
or limit risks might only be possible at an unfavourable market price that will entail a loss for
investors.
Trading in the Warrants / Illiquidity
Warrants or at what price the Warrants will trade in the secondary market or whether such
Warrants at a specific time or at a specific price.
Representation and Custody of the Warrants
The Warrants under this Programme are issued in bearer form and represented by one or more
permanent global note (the Permanent Global Note) or one or more temporary global note (the
Temporary Global Note), respectively.
Depositary Agent on behalf of the Clearing Agent (also CA) in accordance with the applicable
rules and regulations of the Depository Agent and the Clearing Agent. The Warrants are
transferable as co-ownership interests in the Permanent Global Note or, as the case may be,
the Temporary Global Note in accordance with the relevant CA Rules and may be transferred
within the collective securities settlement procedure in the minimum trading size only. Such
transfer becomes effective upon registration of the transfer in the records of the Clearing Agent.
to request the delivery of definitive Warrants.
which might occur to a Securityholder out of such acts and omission in general and for the
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particular.
Pricing of Warrants
Unlike most other Warrants the pricing of these Warrants is regularly not based on the principle
of offer and demand in relation to Warrants, since the secondary market traders might quote
independent bid and offer prices. This price calculation is based on price calculation models
prevailing in the market, whereas the theoretical value of the Warrants is, in principle,
determined on the basis of the value of the underlying and the value of other features attached
to the Warrants, each of which features may, in economic terms, be represented by another
derivative financial instrument.
The potentially quoted prices do not necessarily correspond to the Warrants' intrinsic value as
Issuer. Therefore, Securityholders who wish to sell their Warrants via a stock exchange or in the
over-the-counter trading might sell at a price considerably lower than the actual price of the
Warrants at the time of their sale.
Borrowed funds
If the purchase of Warrants is financed by borrowed funds and investors' expectations are not
met, they not only suffer the loss incurred under the Warrants, but in addition also have to pay
Investors of Warrants should never rely on being able to redeem and pay interest on the loan
through gains from a Warrants transaction. Rather, before financing the purchase of a Security
with borrowed funds, the investors' financial situations should be assessed, as to their ability to
pay interest on or redeem the loan immediately, even if they incur losses instead of the
expected gains.
The effect on the Warrants of hedging transactions by the Issuer
The Issuer may use all or some of the proceeds received from the sale of the Warrants to enter
into hedging transactions relating to the risks incurred in issuing the Warrants. In such a case,
the Issuer or one of its affiliated companies may conclude transactions that correspond to the
Issuer's obligations arising from the Warrants. Generally speaking, this type of transaction will
be concluded before or on the issue date of the Warrants, although these transactions can also
be concluded after the Warrants have been issued. The Issuer or one of its affiliated companies
may at any time take the necessary steps for the closing out of any hedging transactions. The
market price of the underlying might, in certain cases, be negatively affected by such
transactions. The entering into or the closing out of such hedging transactions may in relation to
the securities value, which is depending on the occurrence of a certain event in relation to the
underlying, influence the likelihood of this event to occur or not to occur.
General
fact that the Warrants constitute a risk investment which can lead to the loss of the invested
capital. Apart from the specific risk profile of the product type the investor bears the risk of the
Issuer's and the Guarantor’s financial situation worsening, in particular the insolvency of the
Issuer and/or the Guarantor. As a result, prospective investors must be prepared and able to
accept a partial or even a total loss of the invested capital. Any investors interested in
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purchasing the Warrants should assess their financial situation, to ensure that they are in a
position to bear the risks of loss connected with the Warrants.
underlying of the Derivative Securities, other instruments or derivatives, exchange-traded
options or exchange-traded futures contracts referenced to the underlying, or may issue other
securities or derivatives referenced to the underlying. These activities may give rise to conflicts
of interest and may affect the price of the underlying or the Derivative Securities referenced to
the underlying.
Risks relating to the Certificates
An investment in the Certificates carries product-specific risks for the investor. The value of a
Certificate is determined not only by changes in the price of the underlying, but also depends
upon a number of other factors. Accordingly, the value of the Certificates may decline even if
the price of the underlying remains constant. The Certificates constitute investment instruments
involving a particularly high degree of risk. As compared to other investments, Certificates
involve a substantial level of loss exposure, including the total loss of the amounts invested, and
transaction costs incurred.
Prospective investors should note that changes in the price of the underlying on which the
Certificate is based (or even the non-occurrence of anticipated price changes) can lower the
value of a Certificate. In the light of typically limited maturity of the Certificates, there is no
certainty that the value of the Certificate will recover before the Certificates reach maturity. This
risk is independent of the financial situation of the Issuer.
Prospective investors of the Certificates should recognise that the Certificates constitute a risk
investment which can lead to a total loss of their investment in the Certificates. Even if the
Certificates are capital protected at maturity to the extent of the minimum repayment amount
and, hence, the risk of a loss is initially limited, the investor bears the risk of the Issuer's and the
Guarantor's financial situation worsening. Potential investors must therefore be prepared and
able to sustain a partial or even a total loss of the invested capital. Any investors interested in
purchasing the Certificates should assess their financial situation, to ensure that they are in a
In addition to the term of the Certificates, the frequency and intensity of price fluctuations
(volatility) in the underlying, the prevailing interest rates and the level of dividends paid or, as
the value of the Certificates and which may create certain risks for the investors in the
Certificates:
Features of the Certificate structure
Prior to investing in the Certificates, prospective investors should note that the following special
features of the Certificates may have an impact on the value of the Certificates or, as the case
may be, on any amount payable according to the terms and conditions and that the Certificates
accordingly have special risk profiles.
Extent of participation in the performance of the underlying
The application of the exchange ratio within the determination of the Certificate Right results in
the Certificates being in economic terms similar to a direct investment in the underlying, but
being nonetheless not fully comparable with such a direct investment, in particular because the
Securityholders do not participate in the relevant performance by a 1:1 ratio, but by the
proportion of the exchange ratio only.
79
Limitation of potential profits to the Cap Amount
Prospective investors should furthermore consider that the settlement amount under the
Certificates is limited to the cap amount as determined in the terms and conditions. In contrast
to a direct investment in the underlying the potential profit of the Certificates is, therefore, limited
to the cap amount.
Existence of a currency exchange rate risk
If so specified in relevant Final Terms, the value of the underlying is determined in a currency
other than the settlement currency, currency unit or calculation unit. Potential investors should,
therefore, be aware that investments in these Certificates could entail risks due to fluctuating
exchange rates, and that the risk of loss does not depend solely on the performance of the
underlying, but also on unfavourable developments in the value of the foreign currency,
decrease the value of the purchased Certificates during their term or, as the case may be, the
level of the settlement amount. Currency exchange rates are determined by factors of offer and
Special Features of Certificates on currency exchange rates, commodities or, as the case
used as the underlying, it should be noted that the values are traded 24 hours a day through the
time zones of Australia, Asia, Europe and America.
Potential investors of the Certificates should, therefore, be aware that a relevant limit or, as the
case may be, threshold described in the terms and conditions of the Certificates, may be
reached, exceeded or fallen short at any time and even outside of local business hours of the
Issuer, the calculation agent or the offeror.
The capital protection only applies at the end of the term of the Certificates
If so specified in the relevant Final Terms, the Certificates are as at the end of their term capital
protected to the extent of the minimum repayment amount (the Minimum Repayment
Amount), i.e. the investor receives at the end of the term disregarding the actual performance
of the underlying in any case the Minimum Repayment Amount. If an investor acquires the
Certificates after the issue at a price, which is higher than the Minimum Repayment Amount, the
prospective investor should be aware that the proportional capital protection only refers to the
lower Minimum Repayment Amount. In this context, it has to be considered that the capital
protection only applies at the end of the term, provided that the Certificates have not been
terminated.
The cash amount to be paid in case of an early redemption of the Certificates can be
considerably below the amount, which would be payable as a minimum at the end of the term of
the Certificates, where the capital protection applies to the extent of the relevant Minimum
Repayment Amount.
Potential investors of the Certificates should furthermore recognise that despite the capital
protection to the extent of the relevant Minimum Repayment Amount, the investor bears the risk
of the Issuer's and the Guarantor’s financial ability. Prospective investors must therefore be
prepared and able to sustain a partial or even a total loss of the capital invested. Purchasers of
the Certificates should in any case assess their financial situation, to ensure that they are in a
80
Potential investors in the Certificates should furthermore be aware that the Issuer is in case of
the occurrence of a termination event, pursuant to the terms and conditions, entitled to
terminate and redeem the Certificates in total prior to the expiration date. In case the Issuer
terminates and redeems the Certificates prior to the expiration date, the Securityholder is
entitled to demand the payment of an amount in relation to the early redemption. However, the
Securityholder is not entitled to request any further payments on the Certificates after the
termination date.
underlying to the expected extent and during the expected period.
In case of a termination of the Certificates by the Issuer, the Securityholder bears the risk of a
reinvestment, i.e. the investor bears the risk that it will have to re-invest the termination amount,
if any, paid by the Issuer in case of termination at market conditions, which are less favourable
than those prevailing at the time of the acquisition of the Certificates.
The Securityholders do not have a termination right and the Certificates may, hence, not be
terminated by the Securityholders during their term. Prior to the maturity of the Certificates the
realisation of the economic value of the Certificates (or parts thereof), if any, is, consequently
and except for the Issuer's termination and early redemption, only possible by way of selling the
Certificates.
The selling of the Certificates requires that market participants are willing to acquire the
Certificates at a certain price. In case that no market participants are readily available, the value
of the Certificates may not be realised. The Issuer is not obligated under the issuance of these
Certificates towards the Securityholders to compensate for or to repurchase the Certificates.
Possible decline in the Price of the underlying after termination of the Certificates
In the event that the term of the Certificates is terminated early by the Issuer pursuant to the
terms and conditions of the Certificates, potential investors of the Certificates should note that
any negative performance of the price of the underlying between the announcement of the
termination by the Issuer and the determination of the price of the underlying relevant for
calculation of the then payable Termination Amount are borne by the Securityholders.
Adverse Impact of adjustments of the Certificate Right
In case of the occurrence of a potential adjustment event, the Issuer shall be entitled to effect
adjustments according to the terms and conditions. These adjustments might have a negative
impact on the value of the Certificates.
Effect of ancillary costs
Certificates may result in charges, particularly in combination with a low order value, which can
substantially reduce any settlement amount to be paid under the Certificates. Before acquiring a
Certificate, prospective investors should therefore inform themselves of all costs incurred
through the purchase or sale of the Certificate, including any costs charged by their custodian
banks upon purchase and maturity of the Derivative Securities.
Prospective investors of the Certificates should not rely on the ability to conclude transactions at
any time during the term of the Certificates that will allow them to offset or limit relevant risks.
81
for investors.
Trading in the Certificates and Illiquidity
Certificates or at what price the Certificates will trade in the secondary market or whether such
Certificates at a specific time or at a specific price.
Representation and Custody of the Certificates
The Certificates under this Programme are issued in bearer form and represented by one or
more Permanent Global Note(s) or one or more Temporary Global Note(s), respectively.
Depositary Agent on behalf of the Clearing Agent in accordance with the applicable rules and
regulations of the Depository Agent and the Clearing Agent. The Certificates are transferable as
co-ownership interests in the Permanent Global Note or, as the case may be, the Temporary
collective securities settlement procedure in the minimum trading size only. Such transfer
to request the delivery of definitive Certificates.
of the depository agent or the Clearing Agent, as the case may be, as well as for any losses
which might occur to a Securityholder out of such acts and omission in general and for the
particular.
Pricing of Certificates
Unlike most other securities the pricing of these Certificates is regularly not based on the
principle of offer and demand in relation to Certificates, since the secondary market traders
might quote independent bid and offer prices. This price calculation is based on price
calculation models prevailing in the market, whereas the theoretical value of the Certificates is,
in principle, determined on the basis of the value of the underlying and the value of other
features attached to the Certificates, each of which features may, in economic terms, be
represented by another derivative financial instrument.
The potentially quoted prices do not necessarily correspond to the Certificates' intrinsic value as
Issuer. Therefore, Securityholders who wish to sell their Certificates via a securities exchange or
in the over-the-counter trading might sell at a price considerably lower than the actual price of
the Certificates at the time of their sale.
Borrowed funds
If the purchase of Certificates is financed by borrowed funds and investors' expectations are not
met, they not only suffer the loss incurred under the Certificates, but in addition also have to pay
Investors of Certificates should never rely on being able to redeem and pay interest on the loan
82
through gains from a Certificates transaction. Rather, before financing the purchase of a
Certificate with borrowed funds, the investors' financial situations should be assessed, as to
their ability to pay interest on or redeem the loan immediately, even if they incur losses instead
of the expected gains.
The effect on the Certificates of hedging transactions by the Issuer
The Issuer may use all or some of the proceeds received from the sale of the Certificates to
enter into hedging transactions relating to the risks incurred in issuing the Certificates. In such a
case, the Issuer or one of its affiliated companies may conclude transactions that correspond to
the Issuer's obligations arising from the Certificates. Generally speaking, this type of transaction
will be concluded before or on the issue date of the Certificates, although these transactions
can also be concluded after the Certificates have been issued. The Issuer or one of its affiliated
companies may at any time take the necessary steps for the closing out of any hedging
transactions. The price of the underlying might, in certain cases, be negatively affected by these
transactions.
General
fact that the Certificates constitute a risk investment which can lead to the loss of the invested
capital. Even when the Certificates are capital protected at maturity to the extent of the
Minimum Repayment Amount and, hence, the risk of a loss is initially limited, the investor bears
the risk of the Issuer's and the Guarantor’s financial situation worsening, in particular the
insolvency of the Issuer and/or the Guarantor. As a result, prospective investors must be
prepared and able to accept a partial or even a total loss of the invested capital. Any investors
interested in purchasing the Certificates should assess their financial situation, to ensure that
they are in a position to bear the risks of loss connected with the Certificates.
underlying of the Derivative Securities, other instruments or derivatives, exchange-traded
options or exchange-traded futures contracts referenced to the underlying, or may issue other
securities or derivatives referenced to the underlying. These activities may give rise to conflicts
of interest and may affect the price of the underlying or the Derivative Securities referenced to
the underlying.
3.3
RISKS RELATING TO THE UNDERLYINGS
Information on the underlying-specific risk is provided in the relevant Final Terms.
83
4
4.1
INTERACTIVE BROKERS FINANCIAL PRODUCTS S.A. (ISSUER)
STATUTORY AUDITORS
For the period between 8 January 2009 and 31 December 2009, BDO AUDIT S.A., 2, av.
Charles de Gaulle, L-2013 Luxembourg, Grand Duchy of Luxembourg, is appointed as the
independent auditor of the Issuer.
They have audited the financial statements of the Issuer for the period between 8 January 2009
and 31 December 2009 and have issued an unqualified auditor's report. BDO AUDIT S.A. is a
member of the Luxembourg Auditors Association (IRE).
4.2
INFORMATION ABOUT THE ISSUER
The Issuer acts under its legal name Interactive Brokers Financial Products S.A. and under its
commercial name IBFP. The Issuer was incorporated under the laws of the Grand Duchy of
Luxembourg under its legal name Interactive Brokers Financial Products S.A. on 8 January
2009 and registered in the commercial register of Grand Duchy of Luxembourg on 19 January
2009 under No. B144088. The Issuer is incorporated as a public stock corporation (Societé
Anonyme). The head office of the Issuer is located at L-2453 Luxembourg, 19, rue Eugène
Ruppert. Its telephone number is +52 26 30 26 34.
4.3
BUSINESS OVERVIEW
The Issuer, a special purpose vehicle, is 100% owned by the Guarantor, which is the parent
company of the Interactive Brokers group of companies (collectively IB Group). IB Group is an
automated global electronic market maker and broker specializing in routing orders and
executing and processing trades in securities, futures and foreign exchange instruments on
more than 80 electronic exchanges and trading venues around the world. In the U.S., IB
Group’s business is conducted from its headquarters in Greenwich, Connecticut and from
Chicago, Illinois. Abroad, IB Group conducts business through offices located in Canada,
England, Switzerland, Hong Kong, India, Australia and Japan. The Issuer intends to offer the
Derivative Securities in the Federal Republic of Germany and may decide to offer them at a
later stage in other countries within the European Economic Area.
Pursuant to Article 4 of its Articles of Association the Issuer operates all financial transactions,
including the issue of both securities and any other financial instruments of any nature and in
any currency to private and institutional investors and to borrow in any other form; to enter into
swap agreements and other derivative transactions and to pledge, mortgage or charge or
otherwise create security interests in and over its assets, property and rights to secure the
payment or repayment of any amounts payable by the Issuer under or in respect of any bond,
note, debenture or debt instrument of any kind, issued from time to time by the Issuer.
Without limiting any of the foregoing, the Issuer may use its funds for the setting up, the
management, the development, the acquisition and the disposal of debt and other securities or
other financial instruments; to participate in the creation, the development and/ or the control of
any enterprise; to acquire by way of investment, subscription, underwriting or by option to
purchase or any other way whatever, securities or other financial instruments; to realize such
securities or other financial instruments by way of sale, transfer, exchange or otherwise and to
grant to the companies in which it has participating interests any support, loans, advances or
guarantees.
In general, the Issuer may employ any techniques and instruments relating to its assets and/or
investments for the purpose of their efficient management, including techniques and
instruments to protect against exchange risks and interest rate risks; it may take any controlling
and supervisory measures and carry out any financial, moveable or immovable commercial and
industrial operation which it may deem useful in the accomplishment and development of its
purpose.
84
4.4
ORGANISATIONAL STRUCTURE
The Issuer is 100% owned by the Guarantor, a limited liability company organized under the
laws of the State of Connecticut, U.S.A.
Dependency of the Issuer within the Group
The Guarantor holds 100% of the shares in the Issuer. The majority-owned enterprise is
dependent on the company holding the majority interest.
4.5
TREND INFORMATION
There has been no material adverse change in the prospects of the Issuer since the date of its
last published audited financial statements for the period between 8 January 2009 and 31
December 2009.
4.6
ADMINISTRATIVE AND MANAGEMENT BODIES
The corporate bodies of the Issuer are:
(i)
the Board of Directors (Verwaltungsrat); and
(ii)
the General Meeting of Shareholders (Generalversammlung).
The Board of Directors
In accordance with the Articles of Association, the Board of Directors currently consists of three
members. The Guarantor as sole shareholder of the Issuer determines the number of the
members of the Board of Directors and appoints the members of the Board of Directors. The
Board of Directors represents the Issuer and is responsible for its management.
As at the date of this Base Prospectus, members of the Board of Directors are:
Name, Position and Functions
Earl H. Nemser
Director and also the Vice Chairman of the Guarantor and a director and
Vice Chairman of Interactive Brokers Group, Inc. He also serves as director
and/or officer for various subsidiaries of the Guarantor. Mr Nemser is also
Special Counsel to the law firm of Dechert LLP, which provides legal
services to the Guarantor and Interactive Brokers Group, Inc.
Roger Ryff
Director and also Vice President of Timber Hill (Europe) AG
Jean Lambert
Director
The business address of the members of the Board of Directors is 19, rue Eugène Ruppert, L2453 Luxembourg.
General Meeting of Shareholders
The General Meeting of Shareholders, which is called by the Guarantor as the sole shareholder,
is held in Luxembourg at the place specified in the convening notices on the fourth Wednesday
in the month of May at 4 p.m. and for the first time in the year 2010. The voting right of each
registered share gives entitlement to one vote. The Guarantor as the sole shareholder will
exercise the powers of the general meeting of Shareholders.
85
Conflicts of Interest
There are no potential conflicts of interests of the members of the administrative, management
and supervisory bodies between their duties to the Issuer and their private interests or other
duties. Regarding the issue of Derivative Securities potential conflicts of interest will be
indicated in the Final Terms.
4.7
BOARD PRACTISES
The Luxembourg Corporate Governance Code does not apply to the Issuer as the Issuer is not
a member of the Luxembourg Stock Exchange. The Luxembourg Corporate Governance Code
is a document of the Luxembourg Stock Exchange which is primarily applicable for companies
listed on this stock exchange. The Issuer is of the opinion that the code is tailored to the needs
of stock companies and the application of the code to the Issuer as a special purpose vehicle is
not reasonable. Hence, the Issuer does not voluntarily submit to the Luxembourg Corporate
Governance Code.
4.8
MAJOR SHAREHOLDERS
The Issuer is 100% owned by the Guarantor.
Major Shareholders in the Issuer
Members of IBG Holdings LLC
Public Stockholders
100% of economic interest
10.5% of voting interest
100% owner of class B common stock (representing approximately 89.5% voting interest)
IBG Holdings LLC
89.5% membership interest
10.5% membership interest
IBG LLC
100% Investment: 5 Mio EUR
Interactive Brokers Financial Products
S.A.
86
4.9
FINANCIAL INFORMATION
The Issuer’s individual financial statements (comprising balance sheet, income statement, cash
flow statement and notes to the financial statement) for the period from 8 January 2009 through
31 December 2009 and the independent auditor’s report thereon form part of this Prospectus
hereto and are available and may be obtained from the Issuer. The individual financial
statements have been drawn up in accordance with International Financial Reporting Standards
(IFRS).The financial statements and the independent auditor’s report thereon are attached in
Annex I to this Prospectus. The above mentioned reports are also available at the Issuer’s
website www.ibfp.com.
Financial statements
The following table sets out in summary form the balance sheet, income statement and cash
flow statement of the Issuer, which have been extracted from the audited financial statements of
the Issuer for the period from 8 January 2009 through 31 December 2009.
Balance Sheet
(in Euro)
31 December 2009
Assets
Total Assets
199,732
4,816,004
5,015,736
Liabilities:
60,863
25,493
86,356
Equity:
Stockholder’s Equity
Common Stock, EUR1,000 stated value per share:
5,000 shares at 31 December 2009
Net Loss
Total stockholder’s equity
5,000,000
(70,620)
4,929,380
5,015,736
Income Statement
Period from
8 January through
31 December 2009
(in Euro)
Revenues:
Translation losses
Interest income
Total revenues
(21)
16,009
15,988
87
Interest expense
-
Total net revenues
15,988
Communications
154
86,454
86,608
(70,620)
Income tax expense
Net loss
(70,620)
Cash Flow Statement
Period from
8 January through
31 December 2009
(in Euro)
Cash Flows from operating activities:
Net loss
(Increase) decrease in assets:
Accrued expenses
(70,620)
(4,816,004)
60,863
25,493
(4,800,268)
5,000,000
5,000,000
Net Increase in cash:
Cash, end of period
199,732
199,732
Auditing of Historical Financial Information
The auditors of the Issuer have issued an unqualified auditor report in respect of the financial
statements for the period beginning from the start of the Issuer’s business operations until 31
December 2009.
The Issuer has not been and is not involved in any governmental, legal or arbitration
proceedings (including any such proceedings which are pending or threatened of which the
Issuer is aware) during a period covering the previous 12 months which may have, or have had
in the recent past, significant effects on the Issuer and/or IB Group’s financial position or
profitability.
Regarding Legal and Arbitration Proceedings the following should be mentioned:
88
lawsuits or claims against IB Group could have an adverse effect on IB Group’s business,
financial condition and/or operating results.
The securities industry is highly regulated and many aspects of IB Group’ business involve
IB Group’s businesses are heavily regulated by state, federal and foreign regulatory agencies s
well as numerous exchanges and self-regulatory organizations. IB Group’s various companies
are regulated under state securities laws, U.S. and foreign securities, commodities and financial
services laws and under the rules of more than 25 exchanges and SROs.
frequent regulatory examinations. The Issuer is unaware of any specific regulatory matter that,
itself, or together with similar regulatory matters, would have a material impact on IB Group’s
financial condition.
Significant change in the Issuer’s financial position
There has been no significant change in the Issuer’s financial or trading position since the date
of the last audited financial statements of the Issuer.
4.10
ADDITIONAL INFORMATION
Share Capital
The Guarantor contributed capital of Euro 50,000, which amount was recorded as formation
capital as of 8 January 2009. In connection with its incorporation, the Issuer issued 50 shares of
capital stock, with a stated value of 1,000 per share, to the Guarantor as the sole shareholder of
the Issuer. In July 2009, the Guarantor contributed additional capital of Euro 4,950,000 and was
issued 4,950 shares of capital stock. The subscribed share capital is therefore Euro 5 Mio.
divided into 5,000 shares of Euro 1,000.00 each. The shares are in registered form. They may
be represented, at the owner’s option, by certificates representing single shares or certificates
representing two or more shares. The Issuer may, to the extent and under the terms permitted
by law, purchase its own shares. The share capital may be increased or reduced in compliance
with the legal requirements.
4.11
MATERIAL CONTRACTS
On 28 August 2009 the Issuer in its capacity as a borrower entered into an unsecured loan
agreement with Timber Hill Europe AG in its capacity as a lender in the amount of USD 10
Million.
89
5
5.1
IBG LLC (GUARANTOR)
STATUTORY AUDITORS
For the financial years ended 31 December 2008 and 31 December 2009, the independent
auditor of the Guarantor was Deloitte & Touche LLP, Two World Financial Center, New York,
New York 10281-1414 USA.
They have audited the annual financial statements of the Guarantor for the financial years
ended 31 December 2008 and 31 December 2009 and have issued an unqualified auditor's
report in each case. Deloitte & Touche LLP is registered with the Public Company Accounting
Oversight Board (PCAOB).
5.2
INFORMATION ABOUT THE GUARANTOR
HISTORY AND DEVELOPMENT OF THE GUARANTOR
The Guarantor acts under its legal name IBG LLC and under its commercial name Interactive
Brokers Group. The Guarantor is organized as a limited liability company under the laws of the
State of Connecticut under its legal name IBG LLC on 1 July 1996 and registered with the
Secretary of the State of Connecticut, USA under the number 0538978.
The head office of the Guarantor is located at One Pickwick Plaza, Greenwich, Connecticut,
06830, USA. Its telephone number is +1 (203) 618-5800.
INVESTMENTS
The Guarantor periodically engages in evaluations of potential strategic investments and
acquisitions.
In February 2009, IBG LLC invested $ 7,500,000 (USD) in Quadriserv Inc., an electronic
securities lending platform provider.
5.3
BUSINESS OVERVIEW
The Guarantor is a subsidiary of Interactive Brokers Group, Inc. and is part of the IB Group. The
Guarantor conducts its business through its operating subsidiaries. IB Group is an automated
global electronic market maker and broker specializing in routing orders and executing and
processing trades in securities, futures, foreign exchange instruments, bonds and funds on
more than 80 electronic exchanges and trading venues around the world. As a market maker,
IB Group provides liquidity at these marketplaces and, as a broker, it provides professional
traders and investors with electronic access to stocks, options, futures, forex, bonds and mutual
funds from a single IB Universal AccountSM. Employing proprietary software on a global
communications network, IB Group is continuously integrating its software with a growing
number of exchanges and trading venues into one automatically functioning, computerized
platform that requires minimal human intervention.
Pursuant to section 1.3 of the Amended and Restated Operating Agreement of IBG LLC, which
is similar to the European concept of Articles of Association, as of 3 May 2007 the purpose of
the Guarantor is any lawful act or activity for which limited liability companies may be formed
under Sections 34-100 to 34-242, inclusive, of the Connecticut Limited Liability Company Act,
as amended from time to time.
5.4
ORGANISATIONAL STRUCTURE
The Guarantor is owned by IBG Holdings LLC (approximately 89.5%) and Interactive Brokers
Group, Inc. (approximately 10.5%).
90
Interactive Brokers Group, Inc. is a corporation organized under the laws of the State of
Delaware, U.S.A. It is a holding company whose primary asset is its ownership of approximately
10.5% of the membership interests of the Guarantor. The Class A common stock of Interactive
Brokers Group, Inc. is publicly traded and listed on NASDAQ. The Class B common stock of
Interactive Brokers Group, Inc. has voting power in Interactive Brokers Group, Inc. proportionate
to the extent of IBG Holdings LLC’s ownership of IBG LLC. As of 10 August 2009, there were
41,214,498 shares of Class A common stock and 100 shares of Class B common stock
outstanding.
IBG Holdings LLC, a limited liability company organized under the laws of the State of
Connecticut, U.S.A., owns 100 % of Class B common stock (representing approximately 89.5%
voting interest in the Guarantor).
Mr. Thomas Peterffy and his affiliates (including TP Holdings Limited Partnership) own
approximately 85% of the membership interests of IBG Holdings LLC.
Interactive Brokers Group, Inc. is the sole managing member of the Guarantor and
controls the business and affairs of the Guarantor.
91
INTERACTIVE BROKERS GROUP
Organizational Chart
December 2009
Interactive Brokers
Group, Inc.
IBG Holdings LLC
Greenwich, CT
Greenwich, CT
Nasdaq Symbol: IBKR
10.5%
89.5%
IBG LLC
Greenwich, CT
Thomas Peterffy
99.99%
0.01%
Timber Hill LLC
Greenwich, CT (USA)
SEC Broker–Dealer
CFTC Futures Commission
Merchant
100%
99.9%
0.1%
Interactive Brokers
LLC
Greenwich, CT (USA)
SEC Broker–Dealer
CFTC Futures Commission
Merchant
FSA Arranger
ASIC Futures Broker
ASIC Securities Dealer
SFC Securities Dealer
SFC Commodity Dealer
100%
Interactive Brokers
Forex Services LLC
Interactive Brokers
Corp.
Greenwich, CT
Jersey City, NJ
SEC Broker-Dealer
100%
Interactive Brokers
Canada Inc.
Montreal,Quebec,Canada
IDA Investment Dealer
100%
Interactive Brokers
(U.K.) Limited 100%
London, England
FSA Dealer
Timber Hill (Europe)
AG
Zug, Switzerland
FBC Securities Dealer
100%
Timber Hill
Securities Hong
Kong Limited
Hong Kong
SFC Securities Dealer
100%
Timber Hill Australia
Pty Limited
Sydney, Australia
100%
Timber Hill Canada
Company
Montreal, Quebec, Canada
ASIC Securities Dealer
ASIC Futures Broker
IDA Investment Dealer
.001%
100%
100%
100%
Interactive Brokers
Software Services
Rus
Interactive Brokers
Software Services
Estonia OU
St. Petersburg, Russia
Tallinn, Estonia
Timber Hill
(Mauritius) Limited
Port Louis, Mauritius
99.999%
100%
Interactive Brokers
(India) Private
Limited
IB Exchange Corp.
Greenwich, CT
Mumbai, India
99.99%
92
100%
Interactive Brokers
Securities Japan,
Inc.
Interactive Brokers
Financial Products
S.A.
Tokyo, Japan
Luxembourg
100%
100%
Interactive Brokers
Hungary Kft
Timber Hill
Specialists Corp.
Budapest, Hungary
Greenwich, CT
5.5
TREND INFORMATION
There has been no material adverse change in the prospects of the Guarantor since the date of
its last published audited financial statements.
5.6
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
Interactive Brokers Group, Inc. is the sole managing member of the Guarantor and controls the
business and affairs of the Guarantor.
Day-to-day operations of the Guarantor are managed by the following officers of the Guarantor:
Name
Thomas Peterffy
Position and Functions
Chairman, Chief Executive Officer and President. Mr Peterffy also serves
as Chairman, Chief Executive Officer and President of Interactive Brokers
Group, Inc. and as director and/or officer for various subsidiaries of the
Guarantor.
Earl H. Nemser
Vice Chairman of the Guarantor and a director and Vice Chairman of
Interactive Brokers Group, Inc. He also serves as director and/or officer for
various subsidiaries of the Guarantor. Mr Nemser is also Special Counsel
to the law firm of Dechert LLP, which provides legal services to the
Guarantor and Interactive Brokers Group, Inc.
Paul Brody
Chief Financial Officer and Secretary. Mr Brody also serves as Chief
Financial Officer, Secretary and Director of Interactive Brokers Group, Inc.
and as director and/or officer for various subsidiaries of the Guarantor.
Milan Galik
Senior Vice President, Software Development. Mr Galik also serves as
Senior Vice President, Software Development and Director of Interactive
Brokers Group, Inc. and as officer for various subsidiaries of the Guarantor.
David M. Battan
Vice President. Mr Battan also serves as director and/or officer for various
Susan J. Cramer
Treasurer. Ms Cramer also serves as officer for various subsidiaries of the
Guarantor.
Bradford L.
Jacobowitz
Associate General Counsel. Mr Jacobowitz serves as officer for various
The business address of the Guarantor’s management is:
Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, Connecticut 06830, U.S.A.
Conflicts of Interest
There are no potential conflicts of interests of the members of the administrative and
management bodies between their duties to the Guarantor and their private interests or other
duties. Regarding the issue of Derivative Securities potential conflict of interest will be indicated
in the Final Terms.
5.7
BOARD PRACTISES
The Guarantor has established an Audit & Compliance Committee. The members of the Audit &
Compliance Committee are:
Earl Nemser
93
Paul Brody
Alexander Loffe
Arnold Feist
Bradford Jacobowitz
David Battan
Douglas Madonia
Flavio Iten
Jeffrey Bauch
John Good
Josef Kornmann
Marlene Ward
Yogi Aggarwal
The Audit & Compliance Committee oversees the operation of internal controls covering
compliance with laws, regulations, and internal policies, and the independent auditor’s
qualifications, performance, and independence.
The Guarantor complies with its country’s corporate governance regime.
5.8
MAJOR SHAREHOLDERS
The Guarantor is owned by IBG Holdings LLC (approximately 89.5%) and by Interactive
Brokers Group, Inc. (approximately 10.5%).
Mr. Thomas Peterffy and his affiliates (including TP Holdings Limited Partnership) own
approximately 85% of the membership interests of IBG Holdings LLC.
5.9
FINANCIAL INFORMATION
The Guarantor’s Consolidated Financial Statements (US-GAAP) for the years ended 31
December 2008 and 31 December 2009, including the annual financial statements (each
comprising Consolidated Statements of Financial Condition, Consolidated Statements of
Income, Consolidated Statements of Cash Flows and Consolidated Statement of Changes in
Redeemable Members’ Interests) and the independent auditor’s reports thereon form part of
this Prospectus hereto and are available and may be obtained from the Issuer. The Guarantor’s
Consolidated Financial Statements and the independent auditor’s reports thereon are attached
in Annex II to this Prospectus.
The above mentioned reports
www.interactivebrokers.com.
are
also
94
available
at
the
Guarantor’s
website
Financial statements
The following table sets out in summary form the balance sheet, consolidated income statement
and consolidated cash flow statement of the Guarantor, which have been extracted from the
audited annual consolidated financial statements of IBG LLC and Subsidiaries for the financial
years ended 31 December 2008 and 31 December 2009.
Balance Sheet
December 31,
2009
(in thousands)
Assets
Cash and securities - segregated for regulatory
purposes
Securities borrowed
Securities purchased under agreements to resell
Trading assets, at fair value
Financial instruments owned and pledged as
collateral
$
Other receivables:
Customers, less allowance for doubtful
accounts of $16,637 and $ 17,572 at
December 31, 2009 and 2008
Brokers, dealers and clearing organizations
Interest
Other assets
Total assets
$
Liabilities:
Trading liabilities - financial instruments sold but
not yet purchased, at fair value
Securities loaned
Other payables:
Customers
Accounts payable, accrued expenses and
other liabilities
Interest
Commitments, contingencies and guarantees
Equity:
Members’ interests, including accumulated other
comprehensive income of $277,906 and $173,139
Total equity
95
$
806,046
December 31,
2008
$
942,889
6,728,936
5,063,026
413,005
4,992,121
5,911,881
715,732
7,809,944
10,049,481
1,534,038
9,343,982
1,065,180
11,114,661
3,239,625
493,063
1,122
14,720
3,748,530
162,018
26,265,543
1,621,162
2,527,981
641
25,185
4,174,969
149,024
28,001,277
8,763,201
1,133,658
320,803
$
$
13,476,757
656,625
208,117
10,587,701
164,523
9,560
6,929,617
1,614,810
14,019
238,224
9,114
11,009,122
205,777
21,432,561
284,488
16,182
8,859,116
143,054
300,000
23,643,669
4,831,794
1,188
4,832,982
4,356,668
940
4,357,608
$
96
26,265,543
$
28,001,277
Income Statement
(in thousands)
Revenues:
2009
Trading gains
Interest income
Other income
Total revenues
$
Interest expense
633,865
353,030
121,618
61,260
1,169,773
2008
$
1,303,994
359,529
437,167
81,669
2,182,359
69,591
332,130
1,100,182
1,850,229
Employee compensation and benefits
Occupancy, depreciation and amortization
Communications
273,203
175,827
40,340
22,789
43,518
555,677
322,746
158,018
37,663
18,650
63,138
600,215
544,505
1,250,014
Income tax expense
Net income including non-controlling interests
Net income attributable to non-controlling interests
Net income
37,569
506,936
294
506,642
102,611
1,147,403
262
1,147,141
Total net revenues
$
$
Cash Flow Statement
(in thousands)
Net income
Adjustment to reconcile net income to net cash
provided by operating activities:
Translation (gains) losses (2008, as adjusted)
Gains (losses) on non-trading investments, net
Change in operating assets and liabilities (2008, as
adjusted):
Decrease (increase) in cash and securities segregated for regulatory purposes
Decrease (increase) in securities borrowed
Decrease (increase) in securities purchased
under agreements to resell
Decrease (increase) in receivables from customers
Decrease (increase) in other receivables
97
2009
$
506,936
2008
$
1,147,403
10,555
(38,610)
21,074
33,192
8,939
(559)
59,201
34,763
17,897
25,921
14,107
20,287
(1,736,695)
855,874
240,462
956,426
302,710
1,810,626
(1,618,958)
2,053,292
(14,270)
(680,721)
5,764,571
295,559
26,138
(3,707)
(Decrease) in trading liabilities
Increase (decrease) increase in payable to
customers
Increase (decrease) in other payables
Net cash provided by (used in) operating
activities
Cash flows form investing activities:
Distributions received from equity investment
Purchaseof trading rights
Dividends paid
Borrowings under senior secured credit facility
Repayments of senior secured credit facility
Increase (decrease) in short-term borrowings, net
Reduction in non-controlling interests in subsidiary
Class A Common Stock acquired from employees
Net cash (used in ) provided by financing
activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Supplemental disclosures of cash flow information:
Interest paid
Taxes paid
(4,683,259)
479,335
3,656,289
(820,817)
(4,310,029)
(698,735)
(1,481,156)
30,389
165,315
2,119,115
(11,300)
2,292
(18,492)
(27,500)
5,866
635
(26,695)
(20,194)
(139,324)
508,116
(445,393)
800
(300,800)
86,464
(14,903)
22
-
(248,529)
474,566
(491,968)
550,000
(550,000)
(1,281,108)
(76,001)
(866)
-
(305,018)
30,360
(1,623,906)
$
(136,843)
942,889
806,046
$
(52,256)
422,759
520,130
942,889
$
$
76,659
87,354
$
$
369,200
60,406
$
$
-
$
$
-
Auditing of Historical Financial Information
The auditors of the Guarantor have issued unqualified auditor's reports in respect of each
annual financial statement for the two financial years ended 31 December 2008 and 31
December 2009.
The Guarantor has not been and is not involved in any governmental, legal or arbitration
proceedings (including any such proceedings which are pending or threatened of which the
Guarantor is aware) during a period covering the previous 12 months which may have, or have
had in the recent past, significant effects on the Guarantor and/or IB Group’s financial position
or profitability.
98
Regarding Legal and Arbitration Proceedings the following should be mentioned:
lawsuits or claims against IB Group could have an adverse effect on IB Group’s business,
financial condition and/or operating results.
The securities industry is highly regulated and many aspects of IB Group’ business involve
IB Group’s businesses are heavily regulated by state, federal and foreign regulatory agencies s
well as numerous exchanges and self-regulatory organizations. IB Group’s various companies
are regulated under state securities laws, U.S. and foreign securities, commodities and financial
services laws and under the rules of more than 25 exchanges and SROs.
frequent regulatory examinations. The Guarantor is unaware of any specific regulatory matter
that, itself, or together with similar regulatory matters, would have a material impact on IB
Group’s financial condition.
Significant change in the Guarantor’s financial or trading position
There has been no significant change in IB Group’s financial or trading position since the date
of the last audited financial statement of the Guarantor.
5.10
ADDITIONAL INFORMATION
Share Capital
The Guarantor’s membership interests are owned by IBG Holdings LLC (approximately 89.5%)
and Interactive Brokers Group, Inc. (approximately 10.5%)
5.11
MATERIAL CONTRACTS
The Guarantor has not entered into material contracts not in the ordinary course of its business,
which could result in the Guarantor or any member of the IB Group being under an obligation or
entitlement that is material to the Guarantor’s ability to meet its obligation to security holders in
respect of the securities being issued.
99
6
WERTPAPIERBEDINGUNGEN / TERMS AND CONDITIONS OF THE
DERIVATIVE SECURITIES
Terms and Conditions
The Terms and Conditions of the Derivative Securities (the Terms and Conditions) are set
forth below in two Parts:
6.1
OPTIONSSCHEINE / WARRANTS
§1
Optionsrecht; Garantie
§1
Option Right; Guarantee
(1)
Die Emittentin gewährt hiermit dem
Wertpapiergläubiger von je einem (1) [Call]
[Put] Optionsschein bezogen auf den Kurs
des Basiswerts nach Maßgabe dieser
Bedingungen
das
Recht
(das
Optionsrecht),
bei
Ausübung
des
Optionsscheins gemäß § 3 den [in die
Auszahlungswährung
umgerechneten]
Abrechnungsbetrag (§ 1 (2)), multipliziert
mit
dem
Bezugsverhältnis
und
anschließend auf zwei Dezimalstellen
kaufmännisch gerundet, zu beziehen (der
Auszahlungsbetrag).
(1)
The Issuer hereby grants the Securityholder
of each (1) [Call] [Put] Warrant relating to
the Price of the Underlying under these
Conditions the right (the Option Right) to
receive upon exercise of the warrant in
accordance with § 3 the Redemption
Amount (§ 1 (2)) multiplied by the Ratio [,
converted into the Settlement Currency,]
and afterwards commercially rounded to
two decimal points (the Settlement
Amount).
(2)
Der Abrechnungsbetrag entspricht der
Differenz, um die der Abrechnungskurs
des Basiswerts (§ 1 (3)) den Basispreis [im
Falle eines Call Optionsscheins folgenden
Text einfügen: überschreitet] [im Falle
eines Put Optionsscheins folgenden Text
einfügen: unterschreitet], kaufmännisch
auf zwei Dezimalstellen gerundet.
(2)
The Redemption Amount equals the
difference at which the Settlement Price of
the Underlying (§ 1 (3)) [in case of a Call
Warrant insert the following text: exceeds]
[in case of a Put Warrant insert the
following text: falls short of] the Strike Price,
commercially rounded to two decimal
points.
(3)
Der Abrechnungskurs des Basiswerts
entspricht [dem Kurs des Basiswerts an
dem Bewertungstag] [dem von der
Berechnungsstelle ermittelten Durchschnitt
der
an
jedem
der
Bewertungsdurchschnittstage
jeweils
festgestellten Kurse des Basiswerts] zur
Bewertungszeit.
(3)
The Settlement Price of the Underlying is
[the Price of the Underlying on the
Valuation Date] [the average of the Prices
of the Underlying on each of the Valuation
Averaging Dates as determined by the
Calculation Agent] at the Valuation Time.
(4)
IBG LLC (Garantin) hat gemäß einem
zwischen der Garantin und der Emittentin
geschlossenen
Garantievertrag
die
unbedingte und unwiderrufliche Garantie
für
die
Erfüllung
der
Zahlungsverpflichtungen der Emittentin
hinsichtlich der Wertpapiere übernommen
(die Garantie).
(4)
IBG LLC (Guarantor) has unconditionally
and irrevocably guaranteed the fulfilment of
the Issuer's payment obligations relating to
the Securities, pursuant to the terms of a
guarantee agreement between the Issuer
and the Guarantor (the Guarantee).
100
§2
Definitionen
§2
Definitions
Anbieterin
Offeror
[●]
[●]
Ausübungsfrist
Exercise Period
Die Ausübungsfrist beginnt am [●] und endet am
(einschließlich) [[●]] [Verfalltag].
The Exercise Period starts on [●] and ends on
(including) [[●]] [the Expiration Date].
Ausübungszeit
Exercise Time
Die Ausübungszeit entspricht [●] Uhr (Ortszeit)
[●].
The Exercise Time means [●] hrs (local time) [●].
Auszahlungswährung
Settlement Currency
Die Auszahlungswährung entspricht [●].
The Settlement Currency means [●].
Bankgeschäftstag
Banking Day
Der Bankgeschäftstag steht für [●] [jeden Tag, an
dem die Banken in [Frankfurt am Main,
Bundesrepublik Deutschland,] [und] [in [●]] für
den Geschäftsverkehr geöffnet sind[, das TransEuropean Automated Realtime Gross settlement
Express Transfer System (TARGET-System)
geöffnet
ist]
und
die
Clearingstelle
Wertpapiergeschäfte abwickelt].
Banking Day means [●] [each day on which the
banks in [Frankfurt am Main, Federal Republic of
Germany,] [and] [in [●]] are open for business[,
the Trans-European Automated Real-time Gross
settlement Express Transfer System (TARGET
System) is open] and the Clearing Agent settles
securities dealings].
Basispreis
Strike Price
Der Basispreis entspricht dem
Basiswerts am Festlegungstag] [●].
[Kurs
des
The Strike Price equals the [Price of the
Underlying on the Fixing Date] [●].
Basiswährung
Underlying Currency
Die Basiswährung entspricht [●].
The Underlying Currency means [●].
Basiswert
Underlying
Der Basiswert entspricht [Bezeichnung [der
Aktie] [des Index] [des Währungswechselkurses]
[des Edelmetalls] [des Rohstoffs] [des
Zinssatzes] [des Fondsanteils] einfügen: [•]].
The Underlying equals [insert description of [the
share] [the Index] [the currency exchange rate]
[the precious metal] [the commodity] [the interest
rate] [the fund unit]: [•]].
[im Fall eines Index als Basiswert folgenden
Text zusätzlich einfügen: (der Index), wie er von
[●] (der Index Sponsor) verwaltet, berechnet
und veröffentlicht wird.]
[in case of an Index as the Underlying add the
following text: (the Index), as maintained,
calculated and published by [●] (the Index
Sponsor).]
[im Fall eines Fondsanteils als Basiswert
folgenden Text zusätzlich einfügen: (der
Fondsanteil)
an
dem
[●]
(der
Investmentfonds).]
[in case of a fund unit as the Underlying insert
the following text: (the Fund Unit) in the [●] (the
Investment Fund).]
Der
Basiswert
wird
[[ausgedrückt
in]
[umgerechnet in] [bezogen auf] [der] [die]
The Underlying is [[expressed in] [converted into]
[related to] [the Underlying Currency] [●]].
101
Basiswährung] [●]].
[In diesem Zusammenhang werden die dem
Basiswert zugrunde liegenden Werte jeweils als
Einzelwert bzw. die Einzelwerte bezeichnet.]
[In this context, the individual underlying values
of the Underlying are referred to as a
Component or, as the case may be, the
Components.]
Basiswert-Berechnungstag
Underlying Calculation Date
Basiswert-Berechnungstag steht für jeden Tag,
[an dem [das Maßgebliche Handelssystem] [und]
[die Maßgebliche Börse] für den Handel geöffnet
[ist] [sind] [, und] [der Kurs des Basiswerts in
Übereinstimmung mit den maßgeblichen Regeln
bestimmt wird]] [im Fall eines Index als Basiswert
folgenden Text einfügen: an dem (i) der Index
Sponsor den offiziellen Kurs für den Index
bestimmt, berechnet und veröffentlicht und (ii) ein
Handel bzw. eine Notierung in den dem Index
zugrunde liegenden Werten, die mindestens 80%
der Marktkapitalisierung aller Index-Werte bzw.
des Gesamtwerts des Index darstellen, [, an dem
[Maßgeblichen Handelssystem] [bzw.] [an der
Maßgeblichen Börse] stattfindet].
Underlying Calculation Date means each day [on
which [the Relevant Trading System] [and] [the
Relevant Stock Exchange] [is] [are] open for
trading [and] [the Price of the Underlying is
determined in accordance with the relevant
rules]] [in case of an Index as the Underlying
insert the following text: on which (i) the Index
Sponsor determines, calculates and publishes
the official price of the Index, and (ii) the
Components, which are comprised in the Index
are, to the extent of at least 80% of the market
capitalisation of all Index Components or of the
overall value of the Index, available for trading
and quotation [on the Relevant Trading System]
[or] [on the Relevant Stock Exchange].
Berechnungsstelle
Calculation Agent
Die Berechnungsstelle bezeichnet [●], Anschrift:
[●].
The Calculation Agent means [●] having its
business address in [●].
[Bewertungsdurchschnittstag(e)
[Valuation Averaging Date(s)
[●]
[vorbehaltlich
eines
wirksamen
Ausübungsverfahrens,
einschließlich
[des
Ausübungstags] [des unmittelbar auf den
Ausübungstag folgenden Tags]]. Falls einer
dieser Tage kein Basiswert-Berechnungstag ist,
dann gilt der unmittelbar darauf folgende
Basiswert-Berechnungstag als der maßgebliche
Bewertungsdurchschnittstag.]
[●] [subject to an effective exercise procedure,
including [the Exercise Date] [the day
immediately succeeding the Exercise Date]]. If
one of these days is not an Underlying
Calculation Date, the immediately succeeding
Underlying Calculation Date is deemed to bet the
relevant Valuation Averaging Date.]
Bewertungstag
Valuation Date
[Der Bewertungstag entspricht [●].]
[The Valuation Date means [●] ]
[Der Bewertungstag entspricht dem [Verfalltag]
[unmittelbar auf den Verfalltag folgenden Tag]
[●].]
[The Valuation Date means [the Expiration Date]
[the day immediately succeeding the Expiration
Date] [●].]
Falls dieser Tag kein Basiswert-Berechnungstag
für den Basiswert ist, dann gilt der unmittelbar
[vorangehende] [darauf folgende] BasiswertBerechnungstag
als
maßgeblicher
Bewertungstag für den Basiswert.
If this day is not an Underlying Calculation Date
in relation to the Underlying], the immediately
[preceding] [succeeding] Underlying Calculation
Date is deemed to be the relevant Valuation Date
in relation to the Underlying.
Bewertungszeit
Valuation Time
Die Bewertungszeit entspricht [[●] Uhr (Ortszeit
[●])] [dem Zeitpunkt der offiziellen Bestimmung
des Schlusskurses des Basiswerts] [durch den
Valuation Time means [[●] hrs (local time [●])]
[the time of official determination of the closing
price of the Underlying] [by the Index Sponsor].
102
Index Sponsor].
Bezugsverhältnis
Ratio
[Das Bezugsverhältnis entspricht [●][[●] bzw. als
Dezimalzahl ausgedrückt [●]; das heißt [●]
[Wertpapier bezieht] [Wertpapiere beziehen] sich
auf 1 Basiswert [bzw. 1 Wertpapier bezieht sich
auf [●] Basiswert[e]].]]
[The Ratio equals [●] [[●], or expressed as a
decimal number [●], i.e. [●] [Security relates]
[Securities relate] to 1 Underlying [, respectively,
1 Security relates to [●] Underlying[s], as the
case may be].]]
[Das Bezugsverhältnis wird am Festlegungstag
[zur Festlegungszeit] von der Berechnungsstelle
festgelegt.]]
Clearingstelle
[The Ratio will be fixed by the Calculation Agent
[at the Fixing Time] on the Fixing Date.]]
Clearing System
Clearingstelle steht für [Clearstream Banking AG,
Frankfurt am Main, (Neue Börsenstraße 1, D60487 Frankfurt am Main, Bundesrepublik
Deutschland)] [,] [Clearstream Banking S.A.,
Luxemburg, (42 Avenue JF Kennedy; L-1855
Luxemburg; Luxemburg)] [und] [Euroclear Bank
S.A./ N.V., Brüssel, als Betreiber des Euroclear
Systems (1 Boulevard du Roi Albert IIB - 1210
Brüssel, Belgien)] oder jeder Nachfolger. [Der
Begriff Clearingstelle umfasst in diesem Fall
sämtliche Clearingstellen.]
Clearing System means [Clearstream Banking
AG, Frankfurt am Main, (Neue Börsenstraße 1,
D-60487 Frankfurt am Main, Federal Republic of
Germany)] [,] [Clearstream Banking S.A.,
Luxembourg, (42 Avenue JF Kennedy; L-1855
Luxembourg; Luxembourg)] [and] [Euroclear
Bank S.A. / N.V., Brussels, as operator of the
Euroclear System (1 Boulevard du Roi Albert IIB
- 1210 Brussels, Belgium)] or any successor in
this capacity. [The term Clearing-System shall
also refer to all Clearing-Systems.]
Emissionstag
Issue Date
Der Emissionstag bezeichnet den [●].
The Issue Date means [●].
Emittentin
Issuer
Die Emittentin bezeichnet die Interactive Brokers
Financial Products S.A.
The Issuer means Interactive Brokers Financial
Products S.A.
[Festlegungstag
[Fixing Date
[●]. Falls dieser Tag kein BasiswertBerechnungstag ist, dann gilt der unmittelbar
darauf folgende Basiswert-Berechnungstag als
Festlegungstag.
[Bei
Verkürzung
oder
Verlängerung der Zeichnungsfrist kann sich der
Festlegungstag entsprechend verschieben.]]
[●]. If this day is not an Underlying Calculation
Date, the immediately succeeding Underlying
Calculation Date is deemed to be the Fixing
Date. [In case of abbreviation or extension of the
subscription period the Fixing Date may be
changed accordingly.]]
[im Fall einer Festlegungszeit folgenden Text
einfügen:
Festlegungszeit
[in case of a Fixing Time insert the following text:
Die Festlegungszeit entspricht [•]
The Fixing Time equals [•]
[[•] Uhr [(Ortszeit [•] [Frankfurt am Main,
Bundesrepublik Deutschland]).]
[[•] [(local time [•] [Frankfurt am Main, Federal
Republic of Germany]).]
[[dem Zeitpunkt der offiziellen Bestimmung des
[•]-Kurses des [Basiswerts] [durch den Index
Sponsor].] [•]]
[[the time of the official determination of the [•]
price of the [Underlying] [by the Index Sponsor].]
[•]]
Fixing Time
103
Kleinste handelbare Einheit
Minimum Trading Size
Die Kleinste handelbare Einheit entspricht [●]
bzw. einem ganzzahligen Vielfachen davon.
The Minimum Trading Size equals [•] [●] or an
integral multiple thereof.
Kurs des Basiswerts
Price of the Underlying
Der Kurs des Basiswerts entspricht
Price of the Underlying means
[•]
[•]
[dem
[fortlaufend]
[im
Maßgeblichen
Handelssystem] [bzw.] [an der Maßgeblichen
Börse] ermittelten [•] Kurs des Basiswerts]
[[the [•] price of the Underlying as [continuously]
determined [in the Relevant Trading System] [or]
[on the Relevant Stock Exchange]]
[im Fall eines Index als Basiswert folgenden Text
einfügen: dem von dem Index Sponsor
berechneten und veröffentlichten [•] Kurs des
Basiswerts]
[in case of an Index as Underlying insert the
following text: the [•] price of the Underlying as
calculated and published by the Index Sponsor]
[im Fall eines Währungswechselkurses als
Basiswert folgenden Text einfügen: [•] [dem auf
[Reuters]
[Bloomberg]
auf
der
Seite
[„EUROFX/1“] [•], bzw. auf einer diese Seite
ersetzenden Seite, veröffentlichten [Geld-]
[Mittel-] [Brief-] [•] Kurs des Basiswerts]]
[in case of a currency exchange rate as
Underlying insert the following text: [•] [the
relevant [bid] [mean] [ask] [•] rate of the
Underlying
as
published
on
[Reuters]
[Bloomberg] on page [“EUROFX/1”] [•], or a
substitute thereof]
folgenden
Text
einfügen:
[•]
[dem
Nettoinventarwert des Investmentfonds bezogen
auf den Fondsanteil, wie er von dem
Administrator des Investmentfonds berechnet
[und veröffentlicht] wird]
[in case of a fund unit as Underlying insert the
following text: [•] [the Net Asset Value of the
Investment Fund in relation to the Fund Unit, as
calculated [and published] by the administrator of
the Investment Fund]
[, [ausgedrückt in] [umgerechnet in] [bezogen
auf] [der] [die] Basiswährung][•]].
[, [expressed in] [converted into] [related to] [the
Underlying Currency] [•]].
[Maßgebliche Börse
[Relevant Stock Exchange
[●] [die Börse(n), an (der) (denen) aufgrund der
Bestimmung des Index Sponsors die im Index
enthaltenen Einzelwerte gehandelt werden.]
[●] [the stock exchange(s) on which the
Components comprised in the Index are traded,
as determined by the Index Sponsor.]
[im Fall von Währungswechselkursen
Basiswert folgenden Text einfügen:
[in case of currency exchange
Underlying, insert the following text:
als
rates
as
Maßgeblicher Devisenmarkt
Relevant Exchange Market
Der Maßgebliche Devisenmarkt bezeichnet
The Relevant Exchange Market means:
[•]
[•]
[[den
internationalen
Devisenmarkt]
[die
internationalen Devisenmärkte], an [dem] [denen]
der umsatzstärkste Handel in Bezug auf den
Basiswert stattfindet.]]
[the foreign exchange market[s], on which the
Underlying is primarily traded.]]
104
[im Fall von nicht börsennotierten Aktien,
Rohstoffen, Edelmetallen, Zinssätzen, Indizes
und Fondsanteilen als Basiswert folgenden Text
einfügen:
[Maßgebliches Handelssystem
[in case of non listed shares, commodities,
precious metals, interest rates, indices and fund
units as Underlying, insert the following text:
[●]]
[●]]
[im Fall von Währungswechselkursen als
Basiswert
oder
einer
von
der
Auszahlungswährung
abweichenden
Basiswährung gegebenenfalls folgenden Text
einfügen:
Maßgebliches Land
[in case of currency exchange rates as
Underlying or of a Settlement Currency other
than the Underlying Currency, insert, if
appropriate, the following text:
Das Maßgebliche Land bezeichnet in Bezug auf
die als Basiswert verwendete Währung, sowohl (i)
ein Land (oder eine Verwaltungs- oder
Aufsichtsbehörde desselben), in dem die als
Basiswert verwendete Währung gesetzliches
Zahlungsmittel oder offizielle Währung ist, als
auch (ii) ein Land (oder eine Verwaltungs- oder
Aufsichtsbehörde desselben), zu dem die als
[Basiswert] verwendete Währung in einer
wesentlichen Beziehung steht, wobei sich die
Berechnungsstelle bei ihrer Beurteilung, was als
wesentlich zu betrachten ist, auf die ihrer Ansicht
nach geeigneten Faktoren beziehen kann,
sämtlich wie von der Emittentin und der
Berechnungsstelle nach Ausübung billigen
Ermessens (gemäß § 315 BGB bzw. § 317 BGB)
bestimmt.]
The Relevant Country means with respect to
[the Underlying], each of (i) any country (or any
political or regulatory authority thereof) in which
the currency used as Underlying is the legal
tender or currency; and (ii) any country (or any
political or regulatory authority thereof) with
which the currency used as [Underlying] has a
material connection and, in determining what is
material the Calculation Agent may, without
limitation, refer to such factors as it may deem
appropriate, all as determined by the Issuer and
the Calculation Agent at their reasonable
discretion (pursuant to § 315 of the BGB or, as
the case may be, § 317 of the BGB).]
[Maßgebliche Terminbörse
[Relevant Futures and Options Exchange
[●]].
[●]].
Mindestausübungsanzahl
Minimum Exercise Size
Die Mindestausübungsanzahl entspricht [●] bzw.
einem ganzzahligen Vielfaches davon.
Minimum Exercise Size equals [●] or an
Nettoinventarwert
Net Asset Value
Der Nettoinventarwert (NAV) entspricht [dem
Nettoinventarwert
des
Investmentfonds
je
Fondsanteil, wie er von dem maßgeblichen
Administrator
des
Investmentfonds
in
Übereinstimmung mit dem Verkaufsprospekt und
den Gründungsdokumenten des Investmentfonds
berechnet
und
veröffentlicht
wird.
Der
Nettoinventarwert wird ermittelt, indem sämtliche
Vermögenswerte addiert und anschließend davon
sämtliche Verbindlichkeiten des Investmentfonds
(insbesondere
einschließlich
Gebühren
(einschließlich
Beratungsund
leistungsabhängigen Gebühren), die an den
Berater des Investmentfonds, den Administrator,
die
Bank
oder
die
Verwahrstelle des
The Net Asset Value (NAV) means [the
Investment Fund's net asset value as calculated
and published by the Investment Fund's
administrator in accordance with the relevant
Investment Fund's prospectus and constitutional
documents by adding the value of all the assets
of the Investment Fund and deducting the total
liabilities (including, in particular but not limited
to, any fees (including an advisory fee and an
incentive fee) payable to the Investment Fund's
advisor, the administrator, the banker and
custodian of the Investment Fund, all
borrowings, brokerage fees, provisions for taxes
(if any), allowances for contingent liabilities and
any other costs and expenses reasonably and
[Relevant Trading System
Relevant Country
105
Investmentfonds
gezahlt
werden,
von
Darlehensaufnahmen,
Vermittlungsgebühren,
Steuerzahlungen
(soweit
geleistet),
Wertberichtigungen für bedingte Verbindlichkeiten
und sämtlichen anderen Kosten und Auslagen,
die der Bank oder Verwahrstelle des Basiswerts
bei
ordnungsgemäßer
Durchführung
von
Wertpapieranund
verkäufen
oder
der
Verwaltung des Investmentfonds entstehen)
abgezogen werden.] [•].]
properly incurred to the bank or the custodian of
the Investment Fund in effecting the acquisition
or disposal of securities or in administering the
Investment Fund) of the Investment Fund.] [•].]
Optionsstelle
Warrant Agent
[●] [Adresse] [Der Begriff Optionsstelle umfasst
in diesem Fall sämtliche Optionsstellen.]
[●] [Address] [The term Warrant Agent shall
also refer to all Warrant Agents.].
Rückzahlungstag
Settlement Date
Der Rückzahlungstag entspricht [●] [dem [●]
Bankgeschäftstag nach (i) dem [maßgeblichen
Bewertungstag]
[letzten
der
Bewertungsdurchschnittstage], und (ii) im Fall
einer Kündigung durch die Emittentin nach § 7
der
Wertpapierbedingungen
nach
dem
Kündigungstag].
The Settlement Date means [●] [the [●] Banking
Day after (i) the [relevant Valuation Date] [latest
of the Valuation Averaging Dates], and (ii) in
case of a Termination by the Issuer in
accordance with § 7 of the Terms and
Conditions of the Securities, after the
Termination Date].
Verfalltag
Expiration Date
[●].
Falls
dieser
Tag
kein
BasiswertBerechnungstag ist, dann gilt der unmittelbar
darauf folgende Basiswert-Berechnungstag als
der Verfalltag.
[●]. If this day is not an Underlying Calculation
Date, the immediately succeeding Underlying
Calculation Date is deemed to be the Expiration
Date.
Wertpapiere
Securities
Wertpapiere steht für die von der Emittentin im
Umfang des Emissionsvolumens begebenen
[Call] [Put] Optionsscheine, die auf den Inhaber
lauten.
Securities means [Call] [Put] Warrants, issued in
bearer form by the Issuer in the issue size.
Wertpapiergläubiger
Securityholder
Wertpapiergläubiger steht für die nach deutschem
Recht
als
Eigentümer
der
Wertpapiere
anerkannten Personen. Der Wertpapiergläubiger
wird in jeder Hinsicht seitens (i) der Emittentin, (ii)
der Optionsstelle, (iii) der Berechnungsstelle, (iv)
der Zahlstelle und (v) aller sonstigen Personen
als Berechtigter und Begünstigter bezüglich der in
den
Wertpapieren
repräsentierten
Rechte
behandelt.
Securityholder
means
the
persons
acknowledged by German laws as legal owner
of the Securities. The Securityholder shall, for all
purposes, be treated by (i) the Issuer, (ii) the
Warrant Agent, (iii) the Calculation Agent, (iv)
the Paying Agent and (v) all other persons as
the person entitled to such Securities and the
person entitled to receive the benefits of the
rights represented by such Securities.
Zahlstelle
Paying Agent
[●] [Der Begriff Zahlstelle umfasst in diesem Fall
sämtliche Zahlstellen.]
[●] [The term Paying Agent shall also refer to all
Paying Agents.]
[gegebenenfalls weitere Ausstattungsmerkmale
und Definitionen der Wertpapiere einfügen: [•]]
[if applicable, insert further key terms and
definitions of the Securities: [•]]
106
§3
Ausübungsverfahren; Ausübungserklärung;
Ausübungstag; Automatische Ausübung
§3
Exercise Procedure; Exercise Notice;
Exercise Day ; Automatic Exercise
(1)
Das Optionsrecht kann durch den
Wertpapiergläubiger jeweils nur bis zur
Ausübungszeit
an
einem
Bankgeschäftstag,
der
zugleich
ein
Basiswert-Berechnungstag ist, innerhalb
der Ausübungsfrist (der Ausübungstag)
und in Übereinstimmung mit dem
nachfolgend
beschriebenen
Ausübungsverfahren ausgeübt werden:
(1)
The Option Right may in each case only
be exercised by the Securityholder until
the Exercise Time on a Banking Day,
which also is an Underlying Calculation
Date, within the Exercise Period (Exercise
Date) and in accordance with the exercise
procedure described below.
(2)
Außer im Fall der Automatischen
Ausübung können die Optionsrechte
[vorbehaltlich von § 3 (4)] jeweils nur in der
ausgeübt
werden. Eine Ausübung von weniger als
der
von
Wertpapieren ist ungültig und entfaltet
keine Wirkung. Eine Ausübung von mehr
als der Mindestausübungsanzahl von
Wertpapieren,
deren
Anzahl
kein
ganzzahliges Vielfaches derselben ist, gilt
als Ausübung der nächst kleineren Anzahl
von Wertpapieren, die ein ganzzahliges
Vielfaches der Mindestausübungsanzahl
ist.
(2)
Except when Automatic Exercise applies,
the Option Right may [, subject to § § 3 (4)]
only be exercised in a number equal to the
Minimum Exercise Size. An exercise of
less than the Minimum Exercise Size of
the Securities will be invalid and
ineffective. An exercise of more than the
Minimum Exercise Size of the Securities
that is not an integral multiple thereof will
be deemed to be an exercise of a number
of Securities that is equal to the next
lowest integral multiple of the Minimum
Exercise Size.
(3)
Zur
wirksamen
Ausübung
der
Optionsrechte müssen am maßgeblichen
Ausübungstag bis zur Ausübungszeit die
folgenden Bedingungen erfüllt sein:
(3)
For a valid exercise of the Option Rights
the following conditions have to be met on
the relevant Exercise Date until the
Exercise Time:
(i)
Bei der Optionsstelle muss eine
schriftliche und rechtsverbindlich
unterzeichnete
Erklärung
des
Wertpapiergläubigers, dass er das
durch das Wertpapier verbriefte
Optionsrecht
ausübt
(Ausübungserklärung),
eingegangen sein. Statt einer
schriftlichen und rechtsverbindlich
unterzeichneten
Ausübungserklärung
darf
der
seine
Ausübungserklärung auch unter der
passwortgeschützten
Rubrik
"Members Only" auf der Internetseite
des
Emittenten
(www.ibfp.com)
übermitteln. Die Ausübungserklärung
ist unwiderruflich und bindend und
hat
unter
anderem
folgende
Angaben zu enthalten: (a) den
Namen des Wertpapiergläubigers,
(b) die Bezeichnung und die Anzahl
der
Wertpapiere,
deren
Optionsrechte ausgeübt werden und
(c)
das
Konto
des
107
(i)
The Warrant Agent must receive
written and legally signed notice by
the Securityholder stating his
intention to exercise the Option
Right securitised in the Security (the
Exercise Notice). Instead of a
written and legally signed Exercise
Notice the Securityholder may also
submit his Exercise Notice unter the
password-protected
"Members
Only"-Section on the Website of the
The
Issuer
(www.ibfp.com).
Exercise Notice is irrevocable and
binding and shall contain among
others (a) the name of the
Securityholder, (b) an indication of
the number of Securities to be
exercised and (c) the account of the
Securityholder
with
a
credit
institution, to which the transfer of
the Settlement Amount, if any, shall
be effected.
Wertpapiergläubigers bei einem
Kreditinstitut,
auf
das
der
gegebenenfalls
zu
zahlende
Auszahlungsbetrag
überwiesen
werden soll;
(ii)
die
erfolgte
Übertragung
der
betreffenden Wertpapiere auf die
Optionsstelle, und zwar entweder (a)
durch
eine
unwiderrufliche
Anweisung an die Optionsstelle, die
Wertpapiere
aus
dem
gegebenenfalls bei der Optionsstelle
unterhalten
Wertpapierdepot
zu
entnehmen oder (b) durch Gutschrift
der Wertpapiere auf das Konto der
Optionsstelle bei der Clearingstelle.
(ii)
the effected transfer of the
respective Securities to the Warrant
Agent either (a) by an irrevocable
order to the Warrant Agent to
withdraw the Securities from a
deposit
maintained
with
the
Warrant Agent or (b) by crediting
the Securities to the account
maintained by the Warrant Agent
with the Clearing System.
Falls diese Bedingungen erst nach Ablauf
der
Ausübungszeit
an
einem
Ausübungstag erfüllt sind, gilt das
Optionsrecht als zum nächstfolgenden
Ausübungstag ausgeübt, vorausgesetzt,
dass dieser Tag in die Ausübungsfrist fällt.
If these conditions are met after lapse of
the Exercise Time on the Exercise Date,
the Option Right shall be deemed to be
exercised on the immediately succeeding
Exercise Date provided that such day falls
within the Exercise Period.
Im Fall von deutschem Aktien als Basiswert
folgende Absatz (4) einfügen: Die
Ausübung des Optionsrechts ist an dem
Tag ausgeschlossen, an dem die
ordentliche
Hauptversammlung
der
deutschen Aktiengesellschaft, deren Aktie
den Basiswert bildet, stattfindet, sowie an
dem
diesem
Tag
unmittelbar
vorangehenden Bankgeschäftstag. Falls
eine Ausübungserklärung der Optionsstelle
zu einem Zeitpunkt zugeht, zu dem nach
Maßgabe dieses Absatzes (4) die
Ausübung
des
Optionsrechts
ausgeschlossen ist, gilt das Optionsrecht
als zum nächstfolgenden Ausübungstag
ausgeübt, vorausgesetzt, dass dieser Tag
in die Ausübungsfrist fällt. Ist die Ausübung
des Optionsrechts nach Maßgabe dieses
Absatzes (4) am letzten Tag der
Ausübungsfrist
ausgeschlossen,
so
verlängert sich die Ausübungsfrist nicht
und die Wertpapiere gelten als automatisch
ausgeübt gemäß § 3 (7). In diesem Fall gilt
der unmittelbar auf den Tag, an dem die
ordentliche
Hauptversammlung
der
deutschen Aktiengesellschaft, deren Aktie
den Basiswert bildet, stattgefunden hat,
folgende Basiswert-Berechnungstag als
maßgeblicher
[Bewertungstag]
[Bewertungsdurchschnittstag].]
[(4) In case of a German share as Underlying
add the following paragraph (4):
The exercise of the Option Right is
excluded on the day, on which the
shareholders’ general meeting of the
German stock corporation, the share of
which is used as Underlying, takes place,
and on the Banking Day immediately
preceding such day. If any Exercise
Notices is received by the Warrant Agent
on a day, on which the exercise of the
Option Right is in accordance with this
paragraph (4) excluded, the Option Right
shall be deemed to be exercised on the
immediately succeeding Exercise Date
provided that such day falls within the
Exercise Period. If the exercise of the
Option Right is in accordance with this
paragraph (4) excluded on the last day of
the Exercise Period, the Exercise Period
will not be extended and the Securities are
deemed to be automatically exercised in
accordance with § 3 (7). In this case, the
Underlying Calculation Date, immediately
succeeding the day, on which the
shareholders’ general meeting of the
German stock corporation, the share of
which is used as Underlying, took place,
shall be deemed to be the [Valuation Date]
[relevant Valuation Averaging Date].]
([4] [5]) Nach Ausübung der Optionsrechte sowie
([4] [5]) Upon exercise of the Option Rights as
[(4)
108
der Feststellung des Abrechnungskurses
des
Basiswerts
berechnet
die
Berechungsstelle (§ 9) den gegebenenfalls
zu zahlenden Auszahlungsbetrag entweder
nach der Anzahl der tatsächlich gelieferten
Wertpapiere oder nach der in der
Ausübungserklärung genannten Anzahl
von Wertpapieren, je nachdem, welche
Zahl niedriger ist. Ein etwa verbleibender
Überschuss bezüglich der gelieferten
Wertpapiere wird an den maßgeblichen
Wertpapiergläubiger auf dessen Kosten
und Gefahr zurückgewährt.
well as determination of the Settlement
Price of the Underlying the Calculation
Agent (§ 9) shall calculate the Settlement
Amount
payable,
if
any,
either
corresponding to the number of Securities
actually delivered or to the number of
Securities specified in the Exercise Notice,
whichever is lower. Any remaining excess
amount with respect to the Securities
delivered will be returned to the relevant
Securityholder at this cost and risk.
([5] [6]) Die insoweit von der Berechnungsstelle
getroffenen Berechnungen sind, außer in
Fällen
offensichtlichen
Irrtums,
abschließend und für alle Beteiligten
bindend.
([5] [6]) Calculations made in this respect by the
Calculation Agent are final and binding for
all participants except in the event of
manifest error.
([6][7])Optionsrechte,
die
innerhalb
der
Ausübungsfrist nicht oder nicht wirksam
ausgeübt wurden, gelten als am Verfalltag
automatisch ausgeübt (ebenfalls der
Ausübungstag), ohne dass es der Abgabe
einer
Ausübungserklärung,
der
Übertragung der Wertpapiere oder der
Erfüllung
sonstiger
Voraussetzungen
bedarf (die Automatische Ausübung).
([6][7]) Option Rights, which have not been or
have not been validly exercised, are
deemed to be exercised without requiring
the submission of an Exercise Notice, the
transfer of the Securities or the fulfilment
of further special preconditions (also the
Automatic Exercise) on the Expiration
Date (the Exercise Day).
§4
Form der Wertpapiere; Verzinsung und
Dividenden; Dauerglobalurkunde Vorläufige
Globalurkunde; Übertragbarkeit; Status
§4
Form of Securities; Interest and Dividends,
Permanent Global Note; Temporary Global
Note; Transfer; Status
[Werden
die
Wertpapiere
in
einer
Dauerglobalurkunde verbrieft, folgende Absätze
(1) - (2) einfügen:
[in case of Securities represented in a
permanent global note, insert the following
paras. (1) – (2):
(1)
(1)
Die von der Emittentin begebenen auf den
Inhaber lautenden Wertpapiere sind durch
eine
oder
mehrere
Dauer-InhaberSammelurkunde(n)
(die
Dauerglobalurkunde) ohne Zinsscheine
verbrieft. Effektive Wertpapiere werden
nicht ausgegeben. Der Anspruch auf
Lieferung
effektiver
Wertpapiere
ist
ausgeschlossen.
Auf die Wertpapiere werden weder Zinsen
noch Dividenden gezahlt.
(2)
Die Dauerglobalurkunde ist bei der
Clearingstelle hinterlegt. Die Wertpapiere
sind als Miteigentumsanteile an der
Dauerglobalurkunde übertragbar und sind
im Effektengiroverkehr ausschließlich in
der
Kleinsten
Handelbaren
Einheit
übertragbar. Die Übertragung wird mit
Eintragung der Übertragung in den
The bearer Securities issued by the Issuer
are represented in one or more permanent
global
bearer
document(s)
(the
Permanent
Global
Note)
without
coupons. No definitive Securities will be
issued. The right to request the delivery of
definitive Securities is excluded.
No interest and no dividends are payable
on the Securities.
(2)
109
The Permanent Global Note is deposited
with the Clearing System. The Securities
are transferable as co-ownership interests
in the Permanent Global Note and may be
transferred within the collective securities
settlement procedure in the Minimum
Trading Size only. Such transfer becomes
effective upon registration of the transfer in
Büchern der Clearingstelle wirksam.]
the records of the Clearing System.]
[Werden die Wertpapiere zunächst in einer
Vorläufigen Globalurkunde verbrieft, folgende
Absätze (1) - (2) einfügen:
[in case of Securities which are initially
represented by a temporary global note, insert
the following paras. (1) – (2):
(1)
Die Wertpapiere sind zunächst in einer
vorläufigen Globalurkunde (die Vorläufige
Globalurkunde)
ohne
Zinsscheine
verbrieft. Die Vorläufige Globalurkunde
wird am oder nach dem Austauschtag
gegen Nachweis über das Nichtbestehen
US-wirtschaftlichen Eigentums, wie in der
Vorläufigen Globalurkunde vorgegeben, für
den Wertpapiergläubiger unentgeltlich ganz
oder teilweise gegen Anteile an einer
Dauerglobalurkunde
(die
Dauerglobalurkunde)
(die
Dauerglobalurkunde und die Vorläufige
Globalurkunde
jeweils
eine
Globalurkunde)
ohne
Zinsscheine
ausgetauscht werden. Die Vorläufige
Globalurkunde
und
die
Dauerglobalurkunde tragen jeweils eine
eigenhändige
Unterschrift
[eines
ordnungsgemäß
bevollmächtigten
Vertreters].
(1)
The Securities are initially represented by
a temporary global note (the Temporary
Global Note) without coupons. The
Temporary
Global
Note
will
be
exchangeable, free of charge to the
Securityholder, on or after its Exchange
Date, in whole or in part upon certification
as to non- U.S. beneficial ownership in the
form set out in the Temporary Global Note
for interests in a permanent global security
(the Permanent Global Note) (the
Permanent
Global
Note
and
the
Temporary Global Note being each
referred to as a Global Note) without
coupons. The Temporary Global Note and
the Permanent Global Note shall each be
signed manually [by one authorised
signatory].
(2)
Austauschtag steht bezüglich einer
Vorläufigen Globalurkunde für den Tag, der
40 Kalendertage nach ihrem Emissionstag
liegt und an dem Banken am angegebenen
Sitz der Zahlstelle und am angegebenen
Sitz
der
Clearingstelle
für
den
Geschäftsverkehr geöffnet sind.]
(2)
Exchange Date means, in relation to a
Temporary Global Security, the day falling
40 calendar days after its Issue Date and
being a day on which banks are open for
business in the city in which the specified
office of the Paying Agent is located and in
the city in which the Clearing Agent is
located.]
(3)
Die Wertpapiere begründen unmittelbare,
unbesicherte und nicht nachrangige
Verbindlichkeiten der Emittentin, die
untereinander und mit allen sonstigen
gegenwärtigen
und
künftigen
unbesicherten und nicht nachrangigen
Verbindlichkeiten
der
Emittentin
gleichrangig sind, ausgenommen solche
Verbindlichkeiten,
denen
aufgrund
zwingender
gesetzlicher
Vorschriften
Vorrang zukommt.
(3)
The Securities constitute direct, unsecured
and unsubordinated obligations of the
Issuer, ranking pari passu among
themselves and with all other present and
future unsecured and unsubordinated
obligations of the Issuer, other than
obligations preferred by mandatory
provisions of law.
§5
Tilgung; [Umrechnungskurs; ] Vorlegungsfrist
(1)
Die Emittentin wird, vorbehaltlich einer
Marktstörung (§ 8 (3)) bis zum
Rückzahlungstag (keinesfalls aber vor dem
Rückzahlungstag), die Überweisung des
Auszahlungsbetrags bzw. des Vorzeitigen
Auszahlungsbetrags (§ 7 (3)) in der
Auszahlungswährung über die Zahlstelle
§5
Settlement; [Conversion Rate; ] Period of
Presentation
(1)
110
The Issuer will, subject to a Market
Disruption (§ 8 (3)), procure until the
Settlement Date (in any case not before
the Settlement Date) the payment of the
Settlement
Amount
or
the
Early
Redemption Amount (§ 7 (3)), as the case
may be, in the Settlement Currency to be
zur Gutschrift auf das Konto des jeweils
maßgeblichen Wertpapiergläubigers über
die Clearingstelle veranlassen.
credited via the Paying Agent to the
account of the relevant Securityholder via
the Clearing System.
Die
Bestimmung
des
Währungsumrechnungskurses
für
die
erforderliche
Umrechnung
des
Auszahlungsbetrags,
des
Vorzeitigen
Auszahlungsbetrags
oder
sonstiger
Zahlungsbeträge
unter
diesen
Bedingungen in die Auszahlungswährung
erfolgt
auf
Grundlage
desjenigen
relevanten [Brief-] [Mittel-] [Geld-] Kurses,
[wie er (i) an dem [Bewertungstag] [letzten
der Bewertungsdurchschnittstage], oder (ii)
im Fall der Kündigung durch die Emittentin,
an dem Bankgeschäftstag, in den das
Kündigungsereignis (§ 7 (1)) fällt bzw., falls
der
letztgenannte
Tag
kein
Bankgeschäftstag
ist,
an
dem
Bankgeschäftstag, der unmittelbar auf den
Tag, in den das Kündigungsereignis fällt,
folgt] [wie er an dem Bankgeschäftstag
unmittelbar
folgend
(i)
auf
den
[Bewertungstag]
[letzten
der
Bewertungsdurchschnittstage] oder (ii) im
Fall der Kündigung durch die Emittentin,
auf
den
Tag,
in
den
das
Kündigungsereignis (§ 7 (1)) fällt, von
Reuters unter EUROFX/1, bzw. auf einer
diese
Seite
ersetzenden
Seite,
veröffentlicht wird. Falls auf dieser Seite
voneinander abweichende [Brief-] [Mittel-]
[Geld-] Kurses veröffentlicht werden bzw.
kein entsprechender [Brief-] [Mittel-] [Geld-]
Kurs veröffentlicht wird, ist die Emittentin
berechtigt, einen angemessenen [Brief-]
[Mittel-] [Geld-] Kurs, wie er von einem
vergleichbaren
Anbieter
von
Wirtschaftsdaten
(wie
zum
Beispiel
Bloomberg) unter Verwendung einer
vergleichbaren
Berechnungsmethode
veröffentlicht wird, zu verwenden. Die
Entscheidung über die Auswahl der
Wirtschaftsdatenbank steht im billigen
Ermessen der Emittentin nach § 315 BGB.
[(2) The currency conversion rate used for
converting the Settlement Amount, the
Early Redemption Amount, as the case
may be, or any other amount payable
under these Conditions into the Settlement
Currency shall be determined on the basis
of the relevant [bid] [ask] [mean] rate as
published on [(i) [the Valuation Date] [the
latest of the Valuation Averaging Dates] or
(ii) in case of Termination by the Issuer, on
the Banking Day, on which the Termination
Event (§ 7 (1)) occurs, or if the latter day is
not a Banking Day, on the Banking Day
immediately succeeding the day on which
the Termination Event occurs] [the
Banking Day immediately succeeding (i)
the [Valuation Date] [the latest of the
Valuation Averaging Dates] or (ii) in case
of Termination by the Issuer, the day, on
which the Termination Event (§ 7 (1))
occurs], on Reuters on page EUROFX/1,
or a substitute thereof. In case that
controversial [bid] [ask] [mean] rates are or
no relevant [bid] [ask] [mean] rate is
published on such page, the Issuer is
entitled to use an appropriate [bid] [ask]
[mean] rate as published by another
comparable
provider
of
financial
information (e.g. Bloomberg), calculated
with a similar calculation methodology. The
determination of the provider of financial
information shall be done in the Issuer’s
reasonable discretion pursuant to § 315 of
the German Civil Code (BGB).
Sollte der Währungsumrechnungskurs
nicht in der vorgesehenen Art und Weise
festgestellt oder angezeigt werden, ist die
Emittentin berechtigt, als maßgeblichen
Währungsumrechnungskurs einen auf der
Basis der dann geltenden Marktusancen
ermittelten
Währungsumrechnungskurs
festzulegen.]
In case that the currency conversion rate is
not determined or quoted in the manner
described above, the Issuer shall be
entitled to identify a currency conversion
rate, determined on the basis of the then
prevailing markets customs.]
([2] [3]) Die Emittentin wird von ihrer Verpflichtung
unter diesen Wertpapieren durch Zahlung
des Auszahlungsbetrags, des Vorzeitigen
Auszahlungsbetrags oder der sonstigen
([2] [3]) The Issuer will be discharged from its
obligations under the Securities by
payment of the Settlement Amount, the
Early Redemption Amount, or of any
[(2)
111
Zahlungsbeträge
unter
diesen
Bedingungen an die Clearingstelle zur
Weiterleitung
an
den
jeweiligen
Wertpapiergläubiger befreit.
other amount payable under these
Conditions to the Clearing System for
further
credit
to
the
relevant
Securityholder.
([3] [4]) Alle im Zusammenhang mit (i) der
Ausübung der Wertpapiere und/oder (ii) der
Zahlung des Auszahlungsbetrags, des
Vorzeitigen Auszahlungsbetrags oder der
sonstigen Zahlungsbeträge unter diesen
Bedingungen
anfallenden
Steuern,
Abgaben und/oder Kosten sind von dem
jeweiligen Wertpapiergläubiger zu tragen
und zu zahlen. Die Emittentin und die
Zahlstelle sind berechtigt, jedoch nicht
verpflichtet,
von
den
an
den
Wertpapiergläubiger zahlbaren Beträgen
zur Begleichung von Steuern, Abgaben,
Gebühren, Abzügen oder sonstigen
Zahlungen den erforderlichen Betrag
einzubehalten oder abzuziehen. Jeder
Wertpapiergläubiger hat die Emittentin
bzw. die Zahlstelle von Verlusten, Kosten
oder sonstigen Verbindlichkeiten, die ihr in
Verbindung
mit
derartigen
Steuern,
Abgaben, Gebühren, Abzügen oder
sonstigen Zahlungen im Hinblick auf die
Wertpapiere
des
jeweiligen
Wertpapiergläubigers
entstehen,
freizustellen.
([3] [4]) All taxes, charges and/or expenses
incurred in connection with (i) the exercise
of the Securities and/or (ii) the payment of
the Settlement Amount, the Early
Redemption Amount or of any other
amount payable under these Conditions,
shall be borne and paid by the
Securityholder. The Issuer and the Paying
Agent, are entitled, but not obliged, to
withhold or deduct, from any amount
payable to the Securityholder such
amount required for the purpose of
settlement of taxes, charges, expenses,
deductions or other payments. Each
Securityholder shall reimburse the Issuer
or the Paying Agent, as the case may be,
from any losses, costs or other debts
incurred in connection with these taxes,
charges, expenses, deductions or other
payments related to the Security of the
relevant Securityholder.
([4] [5]) Die Vorlegungsfrist gemäß § 801 Absatz
1 Satz 1 BGB wird auf zehn Jahre verkürzt.
([4]
[Im Fall von Aktien, Edelmetallen, Rohstoffen
oder Zinsätzen als Basiswert folgenden § 6 [a]
einfügen:
[in case of shares, precious metals, commodities
or interest rates as Underlying insert the
following § 6 [a]:
§6
Anpassungen; Optionskontrakte; Potenzielles
Anpassungsereignis; Ersatz-Handelssystem;
Ersatz-Börse
§6
Adjustments; Option Contracts; Potential
Adjustment Event; Substitute Trading
System; Substitute Stock Exchange
(1)
Die Emittentin ist bei Vorliegen eines
Potenziellen Anpassungsereignisses (§ 6
(2)) berechtigt, Anpassungen dieser
Bedingungen in der Weise und in dem
Verhältnis
vorzunehmen,
wie
entsprechende Anpassungen im Hinblick
auf die an der Maßgeblichen Terminbörse
gehandelten Optionskontrakte auf den
Basiswert
(die
Optionskontrakte)
vorgenommen
werden,
sofern
der
nachstehend bezeichnete Stichtag vor oder
auf
[den
Bewertungstag]
[einen
Bewertungsdurchschnittstag] fällt. Werden
an der Maßgeblichen Terminbörse keine
Optionskontrakte gehandelt, so wird die
Emittentin die Anpassung in der Weise
(1)
112
[5]) The period of presentation as
established in § 801 section 1 sentence 1
of the BGB is reduced to ten years.
In case of the occurrence of a Potential
Adjustment Event (§ 6 (2)), the Issuer shall
be entitled to effect adjustments to these
Conditions in a manner and relation
corresponding to the relevant adjustments
made with regard to option contracts on
the Underlying traded on the Relevant
Futures and Options Exchange (the
Option Contracts) provided that the
Record Date (as defined below) is prior to
or on [the Valuation Date] [a Valuation
Averaging Date]. If no such Option
Contracts are being traded on the
Relevant Futures and Options Exchange,
the adjustments may be effected by the
Issuer in a manner as relevant
(2)
vornehmen,
wie
die
Maßgebliche
Terminbörse sie vornehmen würde, wenn
entsprechende
Optionskontrakte
dort
gehandelt werden würden.
adjustments would be made by the
Relevant Futures and Options Exchange if
those Option Contracts were traded on the
Relevant Futures and Options Exchange.
Der Stichtag ist der erste Handelstag an
der Maßgeblichen Terminbörse, an dem
die
Optionskontrakte
unter
Berücksichtigung der erfolgten Anpassung
gehandelt werden oder gehandelt werden
würden,
wenn
entsprechende
Optionskontrakte dort gehandelt werden
würden.
The Record Date will be the first trading
day on the Relevant Futures and Options
Exchange on which the adjusted Option
Contracts on the Underlying are traded on
the Relevant Futures and Options
Exchange or would be traded if those
Option Contracts were traded on the
Ein Potenzielles Anpassungsereignis
bezeichnet jede Maßnahme in Bezug auf
den Basiswert, durch die sich die
Maßgebliche
Terminbörse
zu
einer
Anpassung
des
Basispreises,
der
Kontraktgröße des Basiswerts oder der
Bezugnahme
[der]
[des]
für
die
Bestimmung des Kurses des Basiswerts
zuständigen [Börse] [Handelssystems]
veranlasst sieht oder veranlasst sähe,
wenn Optionskontrakte auf den Basiswert
(2)
A Potential Adjustment Event means
any measure in relation to the Underlying,
which gives reason, or would give reason,
if the Option Contracts on the share(s) of
the Company were traded on the Relevant
Futures and Options Exchange to the
Relevant Futures and Options Exchange
for an adjustment to the strike price, the
contract volume of the Underlying or to the
quotation of the [stock exchange] [trading
system] relevant for the calculation and
determination of the Price of the
Underlying.
[Bei
den
Potenziellen
Anpassungsereignissen handelt es sich
insbesondere, aber nicht abschließend, um
folgende Maßnahmen, wobei, vorbehaltlich
von § 6 (3), jedoch die tatsachliche oder
hypothetische
Entscheidung
der
Maßgeblichen Terminbörse maßgeblich ist:
[Potential Adjustment Events are, in
particular, but not limited to, the following
measures, whereas, however, subject to
§ 6 (3), the de facto or hypothetical
decision of the Relevant Futures and
Options Exchange is decisive:
[im Fall von Edelmetallen oder Rohstoffen als
[in case of precious metals or commodities as
Underlying insert the following text:
(i)
Der Basiswert wird [an der] [in dem]
für die Bestimmung des Kurses des
Basiswerts
zuständigen
[Maßgeblichen
Börse]
[Maßgeblichen Handelssystem] in
einer anderen Qualität, in einer
anderen Zusammensetzung (zum
Beispiel
mit
einem
anderen
Reinheitsgrad
oder
anderem
Herkunftsort) oder in einer anderen
Standardmaßeinheit gehandelt.
(i)
The Underlying is traded [on] [in] the
[Relevant
Stock
Exchange]
[Relevant Trading System] relevant
for the calculation and determination
of the Price of the Underlying in a
different consistency (e.g. with a
different degree of purity or a
different point of origin) or in a
different standard measuring unit.
(ii)
Eintritt eines sonstiges Ereignis oder
Ergreifen
einer
sonstigen
Maßnahme, infolge dessen bzw.
derer der Basiswert, wie er [an der]
[in dem] für die Bestimmung des
Kurses des Basiswerts zuständigen
[Maßgeblichen
Börse]
[Maßgeblichen
Handelssystem]
gehandelt wird, eine wesentliche
(ii)
The occurrence of another event or
action, due to which the Underlying,
as traded [on] [in] the [Relevant
Stock Exchange] [Relevant Trading
System] relevant for the calculation
and determination of the Price of the
Underlying, is materially modified.]
113
Veränderung erfährt.]
[im Fall von Aktien als Basiswert folgenden Text
einfügen:
[in case of shares as Underlying insert the
following text:
(i)
Kapitalerhöhung
der
Aktiengesellschaft, deren Aktie(n)
den
Basiswert
bilden
(die
Gesellschaft) durch Ausgabe neuer
Aktien
gegen
Einlage
unter
Einräumung eines unmittelbaren
oder mittelbaren Bezugsrechts an
ihre Aktionäre, Kapitalerhöhung der
Gesellschaft
aus
Gesellschaftsmitteln, Ausgabe von
Schuldverschreibungen
oder
sonstigen Wertpapieren mit Optionsoder Wandelrechten auf Aktien unter
ihre Aktionäre.
(i)
The stock corporation, the share(s)
of which is/are used as the
Underlying
(the
Company)
increases its share capital against
deposits/contributions granting a
direct or indirect subscription right to
its shareholders, capital increase out
of the Company’s own funds,
through the issuance of new shares,
direct or indirect granting a right to
its shareholders to subscribe for
bonds or other Securities with option
or conversions rights to shares.
(ii)
Kapitalherabsetzung
der
Gesellschaft durch Einziehung oder
Zusammenlegung von Aktien der
Gesellschaft.
Kein
Potenzielles
Anpassungsereignis liegt vor, wenn
die
Kapitalherabsetzung
durch
Herabsetzung des Nennbetrages der
Aktien der Gesellschaft erfolgt.
(ii)
The Company decreases its share
capital through cancellation or
combination of shares of the
Company. No Potential Adjustment
Event shall occur, if the capital
decrease is effected by way of
reduction of the nominal amount of
the shares of the Company.
(iii)
Ausschüttung
außergewöhnlich
hoher
Dividenden,
Boni
oder
sonstige
Baroder
Sachausschüttungen
(Sonderausschüttungen).
Die
Ausschüttungen
von
normalen
Dividenden,
die
keine
Sonderausschüttungen
sind,
begründen
kein
Potenzielles
Anpassungsereignis. Hinsichtlich der
Abgrenzung zwischen normalen
Dividenden
und
Sonderausschüttungen ist die von
der
Maßgeblichen
Terminbörse
vorgenommene
Abgrenzung
maßgeblich.
(iii)
The Company grants exceptionally
high dividends, boni or other cash or
non-cash distributions (Special
Distributions) to its shareholders.
The
distributions
of
regular
dividends, which do not constitute
Special Distributions, do not create
any Potential Adjustment Event.
With regard to the differentiation
between regular dividends and
Special
Distributions
the
differentiation made by the Relevant
Futures and Options Exchange shall
prevail.
(iv)
Durchführung eines Aktiensplits
(Herabsetzung des Nennbetrags und
entsprechende Vergrößerung der
Anzahl
der
Aktien
ohne
Kapitalveränderung)
oder
einer
ähnlichen Maßnahme.
(iv)
In case of a stock split (reduction of
the
nominal
amount
and
corresponding increase in the
number of shares without a change
in the share capital) or a similar
measure.
(v)
Angebot gemäß dem Aktien- oder
Umwandlungsgesetz oder gemäß
einer vergleichbaren Regelung des
für die Gesellschaft anwendbaren
Rechts an die Aktionäre der
(v)
Offer to the shareholders of the
Company pursuant to the German
Stock
Corporation
Act
(Aktiengesetz), the German Law
regulating the transformation of
114
Gesellschaft,
die
Aktien
der
Gesellschaft in Aktien einer anderen
Aktiengesellschaft oder Altaktien der
Gesellschaft
in
neue
Aktien
umzutauschen.
Companies (Umwandlungsgesetz)
or any other similar proceeding
under the jurisdiction applicable to
and governing the Company to
convert existing shares of the
Company to new shares or to
shares of another stock corporation.
(vi)
Die
nach
Abgabe
eines
Übernahmeangebots
gemäß
Wertpapiererwerbsund
Übernahmegesetz
erfolgte
Übernahme
der
Aktien
der
Gesellschaft durch einen Aktionär
(Hauptaktionär)
in
Höhe
von
mindestens 95% des Grundkapitals.
(vi)
Take-over of shares of the Company
in the amount of at least 95% of the
share capital of the Company by a
shareholder (Principal Shareholder)
in course of a tender offer in
accordance with the German
Securities Acquisition and Take-over
Act
(Wertpapiererwerbsund
Übernahmegesetz).
(vii)
Ausgliederung
eines
Unternehmensteils der Gesellschaft
in der Weise, dass ein neues
rechtlich
selbstständiges
Unternehmen entsteht, oder der
Unternehmensteil von einem dritten
Unternehmen aufgenommen wird,
den Aktionären der Gesellschaft
unentgeltlich
oder
zu
einem
geringeren Preis als dem Marktpreis
Anteile entweder an dem neuen
Unternehmen
oder
an
dem
aufnehmenden
Unternehmen
gewährt werden, und für die den
Aktionären gewährten Anteile ein
Markt- oder Börsenpreis festgestellt
werden kann.
(vii)
The Company spins off any part of
the Company so that a new
independent enterprise is created or
any part of the Company is
absorbed by a third company, the
Company’s
shareholders
are
granted shares in the new company
or the absorbing company free of
charge or at a price below the
market price and so that a market
price or price quotation may be
determined for the shares granted to
shareholders,
(viii)
Endgültige Einstellung der Notierung
oder des Handels der Aktien [in dem
Maßgeblichen
Handelssystem]
[bzw.] [an der Maßgeblichen Börse]
aufgrund einer Verschmelzung durch
Aufnahme oder Neubildung oder aus
einem sonstigen vergleichbaren
Grund, insbesondere als Folge eines
Delistings der Gesellschaft. Das
Recht der Emittentin zur Kündigung
gemäß § 7 dieser Bedingungen
bleibt hiervon unberührt.]
(viii)
The quotation of or trading in the
shares of the Company [on the
Relevant Trading System] [or] [on
the Relevant Stock Exchange] is
permanently discontinued due to a
merger or a new company
formation, or for any other
comparable reason, in particular as
a result of a delisting of the
Company. The Issuer’s right for
termination in accordance with § 7
of
these
Conditions
remains
unaffected.]
Auf andere als die in den § 6 (2)
bezeichneten Ereignisse, die jedoch in
ihren werterhöhenden oder verwässernden
Auswirkungen
diesen
Ereignissen
vergleichbar sind, sind die beschriebenen
Regeln entsprechend anzuwenden.]
(3)
Die
Emittentin
gegebenenfalls von
Maßgebliche
ist
den
berechtigt,
durch die
Terminbörse
The provisions set out above shall apply
mutatis mutandis to events other than
those mentioned in § 6 (2), if the
concentrative or dilutive effects of these
events are comparable.]
(3)
115
The Issuer shall be entitled to deviate from
the adjustments made by the Relevant
Futures and Options Exchange, should
vorgenommenen
Anpassungen
abzuweichen,
sofern
sie
dies
für
erforderlich
hält,
um
Unterschiede
zwischen diesen Wertpapieren und den an
der
Maßgeblichen
Terminbörse
gehandelten
Optionskontrakten
zu
berücksichtigen. Unabhängig davon, ob
und welche Anpassungen zu welchem
Zeitpunkt tatsächlich an der Maßgeblichen
Terminbörse erfolgen, kann die Emittentin
Anpassungen mit dem Ziel vornehmen, die
Wertpapiergläubiger wirtschaftlich soweit
wie möglich so zu stellen, wie sie vor den
Maßnahmen nach § 6 (2) standen.
this be considered by the Calculation
Agent as being necessary in order to
account for existing differences between
the Securities and the Options Contracts
traded on the Relevant Futures and
Options Exchange. Disregarding, whether
or how adjustments are de facto effected
by the Relevant Futures and Options
Exchange, the Issuer is entitled to effect
adjustments for the purpose to reconstitute
to the extent possible the Securityholder’s
economic status prior to the measures in
terms of § 6 (2).
(4)
Im Fall der endgültigen Einstellung der
Notierung
oder
des
Handels
des
Basiswerts
[in
dem
Maßgeblichen
Handelssystem] [an der Maßgeblichen
Börse] und des gleichzeitigen Bestehens
oder des Beginns der Notierung oder des
Handels
[in
einem
anderen
Handelssystem] [an einer anderen Börse]
ist, sofern die Emittentin die Wertpapiere
nicht gemäß § 7 dieser Bedingungen
gekündigt hat, die Emittentin berechtigt,
[ein solches anderes Handelssystem] [eine
solche
andere
Börse]
durch
Bekanntmachung gemäß § 11 dieser
Bedingungen als [neues maßgebliches
Handelssystem
(das
ErsatzHandelssystem)] [als neue maßgebliche
Börse (die Ersatz-Börse)] zu bestimmen.
Im Fall einer solchen Ersetzung gilt jede in
diesen
Bedingungen
enthaltene
Bezugnahme auf [das Maßgebliche
Handelssystem]
[bzw.]
[auf
die
Maßgebliche
Börse]
fortan
als
Bezugnahme
auf
[das
ErsatzHandelssystem] [bzw.] [die Ersatz-Börse].
Die
vorgenannte
Anpassung
wird
spätestens nach Ablauf eines Monats nach
der endgültigen Einstellung der Notierung
des Basiswerts [in dem Maßgeblichen
Börse] gemäß § 11 bekannt gemacht.
(4)
If the quotation of or trading in the
Underlying [on the Relevant Trading
System] [on the Relevant Stock Exchange]
is permanently discontinued, however, a
quotation or trading is started up or
maintained [on another trading system]
[on] [another stock exchange], the Issuer
shall be entitled to stipulate such other
[trading system] [or] [stock exchange] [as
the new relevant trading system (the
Substitute Trading System)] [as new
relevant stock exchange (the Substitute
Stock Exchange) through publication in
accordance with § 11 of these Conditions,
provided that the Issuer has not terminated
the Securities in accordance with § 7 of
these Conditions. In case of such a
substitution any reference in these
Conditions [to the Relevant Trading
System] [or] [to] [the Relevant Stock
Exchange] thereafter shall be deemed to
refer [to the Substitute Trading System] [to
the Substitute Stock Exchange] [, as the
case may be]. The adjustment described
above shall be published in accordance
with § 11 upon the expiry of one month
following the permanent discontinuation of
the quotation of the Underlying [on the
Relevant Trading System] [on the Relevant
Stock Exchange], at the latest.
(5)
Jede Anpassung wird von der Emittentin
nach billigem Ermessen gemäß § 315
BGB,
unter
Berücksichtigung
der
herrschenden Marktgegebenheiten und
unter
Wahrung
des
bisherigen
wirtschaftlichen
Ergebnisses
des
Basiswerts vorgenommen. In Zweifelsfällen
über
(i)
die
Anwendung
der
Anpassungsregeln
der
Maßgeblichen
Terminbörse und (ii) die vorzunehmende
Anpassung entscheidet die Emittentin über
die Anwendung der Anpassungsregeln
gemäß § 315 BGB nach billigem
(5)
Any adjustment shall be done in the
Issuer’s reasonable discretion pursuant to
§ 315 of the German Civil Code (BGB),
under consideration of the market
conditions then prevailing and protecting
the previous economic development of the
Underlying. The Issuer reserves the right
to determine in cases of doubt (i) the
applicability of the adjustment rules of the
and (ii) the required adjustment. Such
determination shall be done in the Issuer’s
116
Ermessen, unter Berücksichtigung
herrschenden Marktgegebenheiten.
der
the BGB, considering
conditions then prevailing.
the
market
(6)
Anpassungen und Festlegungen nach den
vorstehenden Absätzen werden durch die
Emittentin vorgenommen und von der
Emittentin nach § 11 bekannt gemacht.
Anpassungen und Festlegungen sind
(sofern nicht ein offensichtlicher Fehler
vorliegt) für alle Beteiligten endgültig und
bindend.
(6)
The adjustments and determinations of the
Issuer pursuant to the paragraphs above
shall be effected by the Issuer and shall be
published by the Issuer in accordance with
§ 11. Any adjustment and determination
shall be final, conclusive and binding on all
parties, except where there is a manifest
error.
(7)
Anpassungen und Festlegungen treten zu
dem Zeitpunkt in Kraft, zu dem
entsprechende Anpassungen an der
Maßgeblichen Terminbörse in Kraft treten
oder in Kraft treten würden, wenn
entsprechende
Optionskontrakte
dort
gehandelt werden würden.]
(7)
Any adjustment and determination will
become effective as of the time at which
the relevant adjustments become effective
on the Relevant Futures and Options
Exchange or would become effective, if the
Relevant Futures and Options Exchange.]
Basiswert folgenden § 6 einfügen:
als
§6
Anpassungen; Nachfolge-Basiswert; ErsatzHandelssystem; Ersatz-Börse
[in case of currency exchange as Underlying
insert the following § 6 :
§6
Adjustments; Successor Underlying;
Substitute Trading System; Substitute Stock
Exchange
(1)
Sind
die
Emittentin
und
die
Ermessens gemäß § 315 BGB der Ansicht,
dass eine erhebliche Änderung der
Marktbedingungen an [der] [bzw.] [dem] für
die
Bestimmung
des
Kurses
des
Basiswerts zuständigen [Maßgeblichen
Börse] [Maßgeblichen Handelssystem]
[Maßgeblichen Devisenmarkt] eingetreten
ist,
ist
die
Emittentin
berechtigt,
Anpassungen dieser Bedingungen in der
Weise
und
in
dem
Verhältnis
vorzunehmen,
um
den
geänderten
Marktbedingungen Rechnung zu tragen.
(1)
If, in the opinion of the Issuer and of the
Calculation Agent in their reasonable
discretion pursuant to § 315 of the BGB, a
material change in the market conditions
occurred in relation to the [Relevant Stock
Exchange] [Relevant Trading System]
[Relevant Exchange Market] relevant for
the calculation and determination of the
Price of the Underlying, the Issuer shall be
entitled to effect adjustments to these
Conditions to count for these changed
market conditions.
(2)
Veränderungen in der Berechnung des
Basiswerts (einschließlich Bereinigungen)
oder
der
Zusammensetzung
oder
Gewichtung der Kurse oder Wertpapiere,
auf deren Grundlage der Basiswert
berechnet wird, führen nicht zu einer
Anpassung, es sei denn, dass das an dem
[Bewertungstag]
[Bewertungsdurchschnittstag] maßgebende
Konzept und die Berechnung des
Basiswerts infolge einer Veränderung
(einschließlich einer Bereinigung) nach
Auffassung der Berechnungsstelle und der
Emittentin nach billigem Ermessen gemäß
§ 315 BGB nicht mehr vergleichbar ist mit
dem bisher maßgebenden Konzept oder
der maßgebenden Berechnung des
(2)
Any changes in the calculation of the
Underlying (including corrections) or of the
composition or of the weighting of the
prices or securities, which form the basis
of the calculation of the Underlying, shall
not lead to an adjustment unless the
Calculation Agent and the Issuer, upon
exercise of their reasonable discretion
(§ 315 of the BGB), determine that the
underlying concept and the calculation of
the Underlying (including corrections)
applicable on any [Valuation Date]
[Valuation Averaging Date] is no longer
comparable to the underlying concept or
calculation of the Underlying applicable
prior to such change. [This applies
especially, if due to any change the
117
Basiswerts. [Dies gilt insbesondere, wenn
sich aufgrund irgendeiner Änderung trotz
gleich bleibender Kurse der in dem
Basiswert enthaltenen Einzelwerte und
ihrer
Gewichtung
eine
wesentliche
Änderung des Wertes des Basiswerts
ergibt.] Eine Anpassung kann auch bei
Aufhebung des Basiswerts und/oder seiner
Ersetzung durch einen anderen Basiswert
erfolgen. Zum Zweck einer Anpassung
ermitteln die Berechnungsstelle und die
§ 315 BGB einen angepassten Wert je
Einheit des Basiswerts, der bei der
zugrunde gelegt wird und in seinem
wirtschaftlichen Ergebnis der bisherigen
Regelung entspricht, und bestimmen unter
Berücksichtigung des Zeitpunktes der
Veränderung den Tag, zu dem der
angepasste Wert je Einheit des Basiswerts
erstmals zugrunde zu legen ist. Der
angepasste Wert je Einheit des Basiswerts
sowie der Zeitpunkt seiner erstmaligen
Anwendung werden unverzüglich gemäß
§ 11
dieser
Bedingungen
bekannt
gemacht.
(3)
Wird der Basiswert zu irgendeiner Zeit
aufgehoben und/oder durch einen anderen
Wert als Basiswert ersetzt, legen die
Berechnungsstelle und die Emittentin nach
billigem Ermessen gemäß § 315 BGB,
gegebenenfalls
unter
entsprechender
Anpassung entsprechend § 6 (2) dieser
Bedingungen, fest, welcher mit dem bisher
maßgebenden Konzept des Basiswerts
vergleichbare neue Basiswert künftig
zugrunde zu legen ist (der NachfolgeBasiswert).
Der
Nachfolge-Basiswert
Anwendung werden unverzüglich gemäß §
11 dieser Bedingungen bekannt gemacht.
Underlying value changes considerably,
although the prices and weightings of the
securities included in the Underlying
remain unchanged.] Adjustments may also
be made as a result of the termination of
the Underlying and/or its substitution by
another underlying. For the purposes of
making any adjustments, the Calculation
Agent and the Issuer shall at their
the BGB determine an adjusted value per
unit of the Underlying as the basis of the
Underlying, which in its result corresponds
with the economic result prior to this
change, and shall, taking into account the
time the change occurred, determine the
day, on which the adjusted value per unit
of the Underlying shall apply for the first
time. The adjusted value per unit of the
Underlying as well as the date of its first
application shall be published without
undue delay pursuant to § 11 of these
Conditions.
(3)
Jede in diesen Bedingungen enthaltene
Bezugnahme auf den Basiswert gilt dann,
sofern es der Zusammenhang erlaubt, als
Bezugnahme auf den Nachfolge-Basiswert.
(4)
Notierung
oder
des
Handels
des
Basiswerts
[in
dem
Maßgeblichen
Börse]
[in
dem
Maßgeblichen
Devisenmarkt, der als Grundlage für die
Feststellung des Basiswerts dient, ] und
des gleichzeitigen Bestehens oder des
Beginns der Notierung oder des Handels
[in einem anderen Handelssystem] [an
einer
anderen
Börse]
[in
dem
In the event that the Underlying is
terminated and/or replaced by another
underlying as Underlying, the Calculation
Agent and the Issuer shall determine at
their reasonable discretion pursuant to §
315 of the BGB, after having made
appropriate adjustments according to § 6
(2) of these Conditions, which underlying,
comparable with the underlying concept of
the
Underlying,
(the
Successor
Underlying) shall be applicable in the
future. The Successor Underlying and the
date it is applied for the first time shall be
published without undue delay in
accordance with § 11 of these Conditions.
Any reference in these Conditions of
Securities to the Underlying shall, to the
extent appropriate, be deemed to refer to
the Successor Underlying.
(4)
118
Underlying on [the Relevant Trading
System] [the Relevant Stock Exchange]
[the international foreign exchange market,
which is used as a basis for the calculation
of the Underlying,] is permanently
discontinued, however, a quotation or
trading is started up or maintained [on
another trading system] [another stock
exchange] [the Relevant Exchange
Market], the Issuer shall be entitled to
internationalen Devisenmarkt] ist, sofern
die Emittentin die Wertpapiere nicht gemäß
§ 7 dieser Bedingungen gekündigt hat, die
Emittentin berechtigt, [ein solches anderes
Handelssystem] [eine solche andere Börse]
[einen solchen anderen internationalen
Devisenmarkt] durch Bekanntmachung
gemäß § 11 dieser Bedingungen als
[neues maßgebliches Handelssystem (das
Ersatz-Handelssystem)]
[als
neue
maßgebliche Börse (die Ersatz-Börse)]
[als neuen maßgeblichen internationalen
Devisenmarkt] zu bestimmen. Im Fall einer
solchen Ersetzung gilt jede in diesen
Bedingungen enthaltene Bezugnahme [auf
das Maßgebliche Handelssystem] [bzw.]
[auf die Maßgebliche Börse] [auf den
internationalen Devisenmarkt, der als
Grundlage für die Feststellung des
Basiswerts dient,] fortan als Bezugnahme
auf [das Ersatz-Handelssystem] [die
Ersatz-Börse]
[den
ersetzenden
internationalen
Devisenmarkt].
Die
vorgenannte Anpassung wird spätestens
nach Ablauf eines Monats nach der
endgültigen Einstellung der Notierung oder
des Handels des Basiswerts [in dem
Maßgeblichen Handelssystem] [an der
Maßgeblichen
Börse]
[in
dem
internationalen Devisenmarkt, der als
Basiswerts dient,] gemäß § 11 bekannt
gemacht.
stipulate such other [trading system] [or]
[stock exchange] [such other international
foreign exchange market,] [as the new
relevant trading system (the Substitute
Trading System)] [as new relevant stock
exchange
(the
Substitute
Stock
Exchange)] [as new relevant international
foreign exchange market,] [, as the case
may be,] through publication in accordance
with § 11 of these Conditions, provided
that the Issuer has not terminated the
Securities in accordance with § 7 of these
Conditions. In case of such a substitution
any reference in these Conditions to [the
Relevant Trading System] [the Relevant
Stock Exchange] [the international foreign
exchange market, which is used as a basis
for the calculation of the Underlying,]
thereafter shall be deemed to refer to [the
Substitute Trading System] [or] [the
Substitute Stock Exchange] [the substitute
international foreign exchange market,].
The adjustment described above shall be
published in accordance with § 11 upon
the expiry of one month following the
permanent discontinuation of the quotation
of or trading in the Underlying on [the
Relevant Trading System] [the Relevant
Stock Exchange] [the international foreign
exchange market, which is used as a basis
for the calculation of the Underlying,], at
the latest.
(5)
BGB,
unter
Berücksichtigung
der
unter
Wahrung
des
bisherigen
wirtschaftlichen
Ergebnisses
des
Basiswerts vorgenommen. In Zweifelsfällen
über die vorzunehmende Anpassung
entscheidet die Emittentin über die
Anwendung der Anpassungsregeln gemäß
§ 315 BGB nach billigem Ermessen, unter
Berücksichtigung
der
herrschenden
Marktgegebenheiten.
(5)
Any adjustment shall be done in the
§ 315 of the BGB, under consideration of
the market conditions then prevailing and
protecting
the
previous
economic
development of the Underlying. The Issuer
reserves the right to determine the
required adjustment in cases of doubt.
Such determination shall be done in the
§ 315 of the BGB, considering the market
conditions then prevailing.
(6)
Emittentin vorgenommen und von der
Emittentin nach § 11 bekannt gemacht.
bindend.]
(6)
Issuer pursuant to the paragraphs above
shall be effected by the Issuer and shall be
published by the Issuer in accordance with
§ 11. Any adjustment and determination
shall be final, conclusive and binding on all
parties, except where there is a manifest
error.]
[im Fall eines Index als Basiswert folgenden § 6
einfügen:
following § 6 :
119
§6
Anpassungen; Nachfolge-Index Sponsor;
Nachfolgeindex
(1)
§6
Adjustments; Successor Index Sponsor,
Successor Index
Sollte der Index endgültig nicht mehr vom
Index Sponsor verwaltet, berechnet und
veröffentlicht werden, ist die Emittentin
berechtigt, den Index Sponsor durch eine
Person, Gesellschaft oder Institution, die
für die Berechnungsstelle und die
§ 315 BGB akzeptabel ist (der NachfolgeIndex Sponsor), zu ersetzen.
(1)
In diesem Fall gilt dieser Nachfolge-Index
Sponsor als Index Sponsor und jede in
diesen
Bedingungen
enthaltene
Bezugnahme auf den Index Sponsor als
Bezugnahme auf den Nachfolge-Index
Sponsor.
(2)
Veränderungen in der Berechnung des
Index (einschließlich Bereinigungen) oder
der Zusammensetzung oder Gewichtung
der Kurse oder Wertpapiere, auf deren
Grundlage der Index berechnet wird,
führen nicht zu einer Anpassung, es sei
denn, dass das an dem [Bewertungstag]
[Bewertungsdurchschnittstag] maßgebende
Konzept und die Berechnung des Index
infolge einer Veränderung (einschließlich
einer Bereinigung) nach Auffassung der
Berechnungsstelle und der Emittentin nach
billigem Ermessen gemäß § 315 BGB nicht
mehr vergleichbar ist mit dem bisher
maßgebenden
Konzept
oder
der
maßgebenden Berechnung des Index. Dies
gilt insbesondere, wenn sich aufgrund
irgendeiner
Änderung
trotz
gleich
bleibender Kurse der in dem Index
enthaltenen
Einzelwerte
und
ihrer
Gewichtung eine wesentliche Änderung
des Indexwertes ergibt. Eine Anpassung
kann auch bei Aufhebung des Index
und/oder seiner Ersetzung durch einen
anderen Index erfolgen. Zum Zweck einer
Anpassung ermitteln die Berechnungsstelle
und die Emittentin nach billigem Ermessen
gemäß § 315 BGB einen angepassten
Wert je Index-Einheit, der bei der
Regelung entspricht, und bestimmen unter
Berücksichtigung des Zeitpunktes der
Veränderung den Tag, zu dem der
angepasste Wert je Index-Punkt erstmals
zugrunde zu legen ist. Der angepasste
Wert je Index-Einheit sowie der Zeitpunkt
seiner erstmaligen Anwendung werden
If the Index is definitively not maintained,
calculated and published by the Index
Sponsor anymore, the Issuer shall be
entitled to replace the Index Sponsor by a
person, company or institution, which is
acceptable to the Calculation Agent and
the Issuer in their reasonable discretion
pursuant to § 315 of the BGB (the
Successor Index Sponsor).
In such case, the Successor Index
Sponsor will be deemed to be the Index
Sponsor and each reference in these
Conditions to the Index Sponsor shall be
deemed to refer to the Successor Index
Sponsor.
(2)
120
Any changes in the calculation of the Index
(including
corrections)
or
of
the
prices or securities, which form the basis
of the calculation of the Index, shall not
lead to an adjustment unless the
Calculation Agent and the Issuer, upon
exercise of their reasonable discretion (§
315 of the BGB), determine that the
underlying concept and the calculation of
the Index (including corrections) applicable
on any [Valuation Date] [Valuation
Averaging Date] is no longer comparable
to the underlying concept or calculation of
the Index applicable prior to such change.
This applies especially, if due to any
change the Index value changes
considerably, although the prices and
weightings of the securities included in the
Index remain unchanged. Adjustments
may also be made as a result of the
termination of the Index and/or its
substitution by another Index. For the
purposes of making any adjustments, the
Calculation Agent and the Issuer shall at
their reasonable discretion pursuant to §
315 of the BGB determine an adjusted
value per Index unit as the basis of the
day, on which the adjusted value per Index
unit shall apply for the first time. The
adjusted value per Index unit as well as
the date of its first application shall be
published without undue delay pursuant to
§ 11 of these Conditions.
unverzüglich
gemäß
§ 11
Bedingungen bekannt gemacht.
(3)
dieser
Erlischt die Erlaubnis der [Emittentin]
[Berechnungsstelle], den Index für die
Zwecke der Wertpapiere zu verwenden
oder wird der Index aufgehoben und/oder
durch einen anderen Index ersetzt, legen
die Berechnungsstelle und die Emittentin
BGB, gegebenenfalls unter entsprechender
Anpassung entsprechend § 6 (2) dieser
Bedingungen fest, welcher Index künftig
zugrunde
zu
legen
ist
(der
Nachfolgeindex). Der Nachfolgeindex
Anwendung werden unverzüglich gemäß §
(3)
Bezugnahme auf den Index gilt dann,
Bezugnahme auf den Nachfolgeindex.
In the event that the authorisation of the
[Issuer] [Calculation Agent] to use the
Index for the purposes of the Securities is
terminated or that the Index is terminated
and/or replaced by another index, the
Calculation Agent and the Issuer shall
determine at their reasonable discretion
pursuant to § 315 of the BGB, after having
made appropriate adjustments according
to § 6 (2) of these Conditions, which Index
(the Successor Index) shall be applicable
in the future. The Successor Index and the
date it is applied for the first time shall be
Any reference in these Conditions of
Securities to the Index shall, to the extent
appropriate, be deemed to refer to the
Successor Index.
(4)
Ist nach Ansicht der Berechnungsstelle und
der Emittentin nach billigem Ermessen
gemäß § 315 BGB eine Anpassung oder
die Festlegung eines Nachfolgeindex, aus
welchen Gründen auch immer, nicht
möglich, werden die Berechnungsstelle
und die Emittentin für die Weiterrechnung
und Veröffentlichung des Index auf der
Grundlage des bisherigen Indexkonzeptes
und des letzten festgestellten Indexwertes
Sorge tragen. Eine derartige Fortführung
wird unverzüglich gemäß § 11 dieser
(4)
If, in the opinion of the Calculation Agent
and the Issuer at their reasonable
discretion pursuant to § 315 of the BGB,
an adjustment or the determination of a
Successor Index is not possible, for
whatsoever reason, the Calculation Agent
and the Issuer shall, at their reasonable
discretion pursuant to § 315 of the BGB
provide for the continued calculation and
publication of the Index on the basis of the
existing Index concept and the last
determined Index value. Any such
continuation shall be published without
Conditions.
(5)
Die in den vorgenannten § 6 (1) bis (4)
dieser
Bedingungen
erwähnten
Anpassungen und Festlegungen der
Berechnungsstelle und der Emittentin nach
billigem Ermessen gemäß § 315 BGB sind
abschließend und verbindlich, es sei denn,
es liegt ein offensichtlicher Irrtum vor.
(5)
Calculation Agent and the Issuer pursuant
to § 6 (1) through (4) of these Conditions
at their reasonable discretion pursuant to §
315 of the BGB shall be conclusive and
binding, except where there is a manifest
error.
(6)
Vorgenommene
Anpassungen
und
Festlegungen werden von der Emittentin
nach § 11 dieser Bedingungen bekannt
gemacht.
(6)
Any effected adjustment and determination
described above shall be published by the
Issuer in accordance with § 11 of these
Conditions.
(7)
Das Recht der Emittentin zur Kündigung
gemäß § 7 dieser Bedingungen bleibt
hiervon unberührt.]
(7)
The Issuer’s right for termination in
accordance with § 7 of these Conditions
remains unaffected.]
[im Fall eines Fondsanteils
folgenden § 6 einfügen:
als
Basiswert
121
following § 6:
§6
Anpassungen; Nachfolge-Basiswert
(1)
(2)
§6
Adjustments; Successor Underlying
Bei Eintritt oder dem wahrscheinlichen
Eintritt eines Ersetzungsgrundes (§ 6 (2)) in
Bezug auf den Fondsanteil als Basiswert
können
die
Emittentin
und
die
Berechnungsstelle, wenn sie nach billigem
Ermessen (gemäß § 315 BGB bzw. § 317
BGB) der Ansicht sind, dass dieser Grund
wesentlich ist und sich nachteilig auf den
Basiswert oder die Berechnung des NAV
des Fondsanteils als Basiswert auswirkt,
(1)
If a Replacement Event (§ 6 (2)) in
respect of the Fund Unit used as
Underlying occurs or is likely to occur, the
Issuer and the Calculation Agent may, if
they determine at their reasonable
discretion (pursuant to § 315 of the BGB
or, as the case may be, § 317 of the
BGB), that such event is material and
adversely affects the Underlying or the
calculation of the NAV of the Fund Unit
used as Underlying,
(i)
einen anderen Investmentfonds, der
nach Ansicht der Emittentin und der
Berechnungsstelle bei Ausübung
billigen Ermessens (gemäß § 315
BGB bzw. § 317 BGB) eine ähnliche
Strategie und Liquidität aufweist
( der
Nachfolge-Basiswert),
auswählen und/oder
(i)
select an alternative investment
fund, which the Issuer and the
Calculation Agent determine at their
reasonable discretion (pursuant to
§ 315 of the BGB or, as the case
may be, § 317 of the BGB) to have
a similar strategy and liquidity ( the
Successor Underlying) and/or
(ii)
Anpassungen
an
Berechnungsmethoden, Werten oder
Regelungen in Bezug auf die
Wertpapiere vornehmen, die (nach
Ausübung
billigen
Ermessens
(gemäß § 315 BGB bzw. § 317 BGB)
durch
den
Ersetzungsgrund
erforderlich werden.
(ii)
make any adjustments to any
calculation methods, values or
terms in respect of the Securities
that they determine at their
may be, § 317 of the BGB) to be
necessary to account for such
Replacement Event.
Ersetzungsgrund bezeichnet einen der
folgenden Umstände:
[(a)
(2)
Die Anlagestrategie oder das
Anlageziel des Investmentfonds (die
Strategie) weicht wesentlich von der
Strategie
am
[Emissionstag]
[Festlegungstag] bzw. an dem Tag,
zu dem der Basiswert nach diesen
Bestimmungen angepasst wurde,
oder von der Strategie, die in dem
Verkaufsprospekt oder anderen im
Zusammenhang
mit
der
Vermarktung des Investmentfonds
erstellten Unterlagen (zusammen die
Unterlagen) beschrieben wird, oder
von den Regeln in Bezug auf den
Investmentfonds ab.]
[([a] [b]) Die Frequenz, mit welcher ein
Fondsanteil als Basiswert gehandelt
werden kann (die Handelsfrequenz)
wird geändert und weicht nun von
der
Handelsfrequenz
am
[Emissionstag]
[Festlegungstag]
bzw. an dem Tag, zu dem der
122
Replacement Event means any of the
following:
[(a)
The
investment
strategy
or
investment
objective
of
an
Investment Fund (the Strategy)
differs substantially from the
Strategy at the [Issue Date] [Fixing
Date] or the date on which the
Underlying
was
adjusted
in
accordance with these Conditions,
as the case may be, or from the
Strategy outlined in the prospectus
or other documents prepared in
connection with the marketing of
the Investment Fund (together the
Documents) or from the rules in
relation to the Investment Fund.]
[([a] [b]) The frequency at which the Fund
Unit used as Underlying can be
traded (the Trading Frequency) is
changed and now differs from the
Trading Frequency at the [Issue
Date] [Fixing Date] or the date on
which the Underlying was adjusted
Basiswert
nach
diesen
oder von der Handelsfrequenz, die in
den Unterlagen beschrieben wird,
oder von den Regeln in Bezug auf
den Investmentfonds ab.]
in
accordance
with
these
Conditions or from the Trading
Frequency
outlined
in
the
Documents or from the rules in
[([•]) Die Währung, in der der NAV eines
Investmentfonds veröffentlicht wird,
(die
Währungseinheit)
wird
geändert und weicht nun von der
Währung
am
[Emissionstag]
oder von der Währungseinheit, die in
[([•]) The currency denomination in
which the NAV of the Investment
Fund is published (the Currency
Denomination) is changed and
now differs from the Currency
Denomination at the [Issue Date]
[Fixing Date] or the date on which
the Underlying was adjusted in
Currency Denomination outlined in
the Documents or from the rules in
[([•]) Die Frequenz der Veröffentlichung
oder
der
Zeitraum
zwischen
Berechnung und Veröffentlichung
oder
die
Berechnungsmethode,
jeweils in Bezug auf den NAV (oder
einen vorläufigen oder geschätzten
NAV) (die NAV-Frequenz) wird
NAV-Frequenz am [Emissionstag]
oder von der NAV-Frequenz, die in
von oder den Regeln in Bezug auf
[([•]) In respect of the NAV (or any
preliminary or estimated NAV) the
frequency of publication or the time
delay between calculation and
publication or the calculation
method (the NAV Frequency) is
NAV Frequency at the [Issue Date]
NAV Frequency outlined in the
[([•]) Der Investmentfonds führt Gebühren
oder Kosten, die dem Vermögen des
Investmentfonds belastet werden,
ein oder erhöht diese bzw. führt
einen Ausgabeaufschlag oder eine
Rücknahmegebühr ein.]
[([•]) The Investment Fund introduces or
increases charges or fees payable
out of the assets of the Investment
Fund or charges a subscription fee
or redemption fee.]
[([•]) Der Betrieb oder die Organisation
des Investmentfonds (insbesondere
Struktur, Verfahren oder Richtlinien)
oder
die
Anwendung
solcher
Verfahren oder Richtlinien hat sich
gegenüber
dem
[Emissionstag]
geändert.]
[([•]) The operation or organisation of the
Investment Fund (including, without
limitation, structure, procedures or
policies) or the application of such
procedures or policies has changed
from that at the [Issue Date] [Fixing
Underlying
was
adjusted
in
as the case may be.]
[([•]) Die
aufsichtsrechtliche
oder
steuerliche Behandlung in Bezug auf
den Investmentfonds ändert sich.]
[([•]) The regulatory or tax treatment
applicable with respect to the
Investment Fund is changed.]
123
[([•]) Die Anzahl von Anteilen des
Investmentfonds, seiner Teilfonds
oder Anteilklassen, die ein Investor
halten darf, wird aufgrund Gesetzes
oder
behördlicher
Maßnahmen
beschränkt.]
[([•]) The restriction by law or regulatory
measures of the holding of units of
the Investment Fund, its sub-funds
and/or its unit classes, if any, that
may be held by an investor in the
Investment Fund.]
[([•]) Jede
Aussetzung
oder
Beschränkung des Handels in dem
Fondsanteil, der als Basiswert
verwendet
wird,
(wegen
Liquiditätsbeschränkungen oder aus
anderen Gründen), soweit diese
nicht bereits zuvor an dem
[Emissionstag]
[Festlegungstag]
bzw. zu dem Tag, zu dem der
Basiswert
nach
diesen
bestanden, wie in den Regeln in
Bezug auf den Investmentfonds
beschrieben.]
[([•]) Any suspension of or limitation
imposed on trading in the Fund Unit
used as Underlying (by reason of
liquidity restrictions or otherwise)
other than those existing on the
[Issue Date] [Fixing Date] or the
date on which the Underlying was
adjusted in accordance with these
Conditions, as the case may be, as
laid out in the rules in relation to the
Investment Fund.]
[([•]) Der Investmentfonds verlangt, dass
ein (beliebiger) Investor seine Anteile
ganz oder teilweise zurückgibt.]
[([•]) The Investment Fund requires a
partial or whole redemption of units
from any of the investors in the
Investment Fund.]
[([•]) Es wird erwartet, dass ein beliebiger
Investor bei einer Rückgabe der
Anteile an dem Investmentfonds
nicht
den
vollen
Erlös
(Rückkaufwert)
innerhalb
der
üblichen,
unter
den
in
den
Dokumenten dargelegten normalen
Marktbedingungen
anwendbaren,
Zahlungsfrist
für
Rücknahmen
erhalten würde.]
[([•]) It is expected that upon redemption
of units any investor in the
Investment Fund does not receive
the full proceeds (redemption
value) within the regular period for
redemption payments applicable
under normal market conditions set
out in the Documents.]
[([•]) Der Investmentfonds oder sein
Investment Manager unterliegt der
Liquidation, Auflösung, Einstellung
oder Zwangsvollstreckung, oder der
Investment Manager deutet an, dass
die Strategie nicht eingehalten
werden wird oder beabsichtigt,
empfiehlt
oder
initiiert
die
Liquidation,
Auflösung
oder
Einstellung des Investmentfonds.]
[([•]) The Investment Fund or its
investment manager is or becomes
subject to liquidation, dissolution,
discontinuance or execution, or the
investment manager indicates that
the Strategy will not be met or
proposes, recommends or initiates
the liquidation, dissolution or
discontinuance of the Investment
Fund.]
Investment
Manager
oder
Angestellte von diesen unterfallen
der
Überwachung
oder
Untersuchung einer Aufsichts- oder
sonstigen Behörde oder werden
unter Anklage oder Strafverfolgung
gestellt.]
investment manager or any of their
employees are placed under review
or investigation by any regulatory or
other authority or are subject to any
charges or prosecution.]
Investment Manager wird Partei
investment manager becomes party
124
einer
gerichtlichen
außergerichtlichen
Auseinandersetzung.]
(3)
oder
to any litigation or dispute.]
[([•]) Der
Administrator
des
Investmentfonds versäumt es, den
NAV wie vorgesehen zu berechnen
oder
zu
veröffentlichen
oder
versäumt es, andere Informationen
bezüglich des Investmentfonds zu
veröffentlichen, die nach den Regeln
oder
den
Unterlagen
zu
veröffentlichen wären.]
[([•]) The
Investment
Fund's
administrator fails to calculate or
publish the NAV as scheduled or
fails
to
publish
any
other
information
relating
to
the
Investment Fund to be published in
accordance with its rules or the
Documents.]
[([•]) Ein von einem Wirtschaftsprüfer
geprüfter NAV weicht von dem
veröffentlichten NAV ab, oder die
Wirtschaftsprüfer
des
Investmentfonds versehen ihren
Bericht
in
Bezug
auf
den
Investmentfonds oder einen NAV mit
Einschränkungen oder weigern sich,
einen uneingeschränkten Bericht
abzugeben.]
[([•]) The audited NAV differs from the
published NAV, or the auditors of
the Investment Fund qualify any
audit report or refuse to provide an
unqualified audit report in respect of
the Investment Fund or the NAV.]
[([•]) Versäumnis
des
Investment
Managers des Investmentfonds, in
einer angemessenen und zeitnahen
Weise auf einen Verstoß gegen
Verpflichtungen, Zusicherungen oder
Vereinbarungen aus dem Anlage
Managementvertrag
für
den
Investmentfonds zu reagieren.]
[([•]) The investment manager of the
Investment Fund fails to react in an
appropriate and timely manner to
any breach of representations,
covenants and agreements under
the
investment
management
agreement
relating
to
the
Investment Fund.]
[([•]) Rücktritt, Kündigung, Aufhebung der
Registrierung oder eine sonstige
Veränderung in Bezug auf den
Investment
Manager
des
Investmentfonds
oder
eine
Veränderung im Personal des
Investment Managers oder der
Dienstleistungsunternehmen
des
Investmentfonds.]
[([•]) Resignation, termination, loss of
registration or any other change in
respect of the investment manager
of the Investment Fund or any
change in the personnel of the
investment manager or in the
service providers to the Investment
Fund.]
[([•]) Die Beteiligung eines Investors an
Anteilen des Investmentfonds, seiner
Teilfonds
oder
Anteilklassen,
überschreitet 20% der Anteile des
oder Anteilklassen.]
[([•]) An investor's holding of units of the
Investment Fund, its sub-funds
and/or its unit classes, if any,
exceeds 20% of the Investment
Fund, its sub-funds and/or its unit
classes.]
[([•]) [•]]
[([•]) [•]]
Bezugnahme auf den Nachfolge-Basiswert.
Any reference in these Conditions to the
Underlying
shall,
to
the
extent
Successor Underlying.
(3)
125
The adjustments and determinations of
the Issuer pursuant to the paragraphs
Emittentin nach billigem Ermessen (gemäß
§
315
BGB)
bzw.
von
der
Berechnungsstelle nach billigem Ermessen
(gemäß § 317 BGB), vorgenommen und
von der Emittentin nach § 11 dieser
Bedingungen
bekannt
gemacht.
bindend.
(4)
above shall be effected by the Issuer at its
reasonable discretion (pursuant to § 315
of the BGB) or, as the case may be, by
the Calculation Agent (pursuant to § 317
of the BGB) and shall be published by the
Conditions.
Any
adjustment
and
determination shall be final, conclusive
and binding on all parties, except where
there is a manifest error.
(4)
[im Fall einer von Euro abweichenden
Auszahlungswährung gegebenenfalls zusätzlich
folgenden § 6 a einfügen:
[in case of a Settlement Currency other than
Euro add the following § 6 a, where applicable:
§6a
Anpassungen aufgrund der Europäischen
Wirtschafts- und Währungsunion
§6a
Adjustments due to the European Economic
and Monetary Union
(1)
Nimmt ein Land, unabhängig davon, ob ab
1999 oder später, an der dritten Stufe der
Europäischen
Wirtschaftsund
Währungsunion teil, sind die Emittentin und
die Berechnungsstelle berechtigt, nach
billigem Ermessen (gemäß § 315 BGB
bzw. § 317 BGB) folgende Anpassungen
dieser Bedingungen vorzunehmen:
(i)
(1)
Ist die Auszahlungswährung unter
diesen Bedingungen eine von Euro
abweichende
nationale
Währungseinheit eines Landes, das
an
der
dritten
Stufe
der
Europäischen
Wirtschaftsund
Währungsunion
beteiligt
ist,
unabhängig davon, ob ab 1999 oder
später,
dann
gilt
die
Auszahlungswährung als ein Betrag
in Euro, der aus der ursprünglichen
Auszahlungswährung zum rechtlich
festgesetzten Wechselkurs und unter
Anwendung
der
rechtlich
festgesetzten Rundungsregeln in
Euro umgetauscht wurde.
Where a country participates in the third
stage of the European Economic and
Monetary Union, whether as from 1999 or
after such date, the Issuer and the
Calculation Agent at their reasonable
BGB), shall be entitled to effect the
following adjustments to these Conditions:
(i)
Nach der Anpassung erfolgen
sämtliche Zahlungen hinsichtlich der
Wertpapiere in Euro, als ob in ihnen
der Euro als Auszahlungswährung
genannt wäre.
(ii)
Ist in diesen Bedingungen ein
angegeben oder gibt eine Bedingung
eine
Währung
(die
126
Where the Settlement Currency
under these Conditions is the
national currency unit other than
Euro of a country which is
participating in the third stage of the
European Economic and Monetary
Union, whether as from 1999 or
after such date, such Settlement
Currency shall be deemed to be an
amount of Euro converted from the
original Settlement Currency into
Euro at the statutory applicable
exchange rate and subject to such
statutory
applicable
rounding
provisions.
After the adjustment, all payments
in respect of the Securities will be
made solely in Euro as though
references in the Securities to the
Settlement Currency were to Euro.
(ii)
Where these Conditions contain a
currency conversion rate or any of
these Conditions are expressed in
a currency (the Original Currency)
Originalwährung) eines Landes an,
das an der dritten Stufe der
Europäischen
Wirtschaftsund
Währungsunion
beteiligt
ist,
unabhängig davon, ob ab 1999 oder
später, gelten der angegebene
und/oder
sonstige
Währungsangaben
in
diesen
Bedingungen als Angabe in Euro,
oder,
soweit
ein
angegeben ist, als Kurs für den
Umtausch in oder aus Euro unter
Zugrundelegung
des
rechtlich
festgesetzten Wechselkurses.
of a country which is participating in
the third stage of the European
Economic and Monetary Union,
whether as from 1999 or after such
date, such currency conversion rate
and/or any other terms of these
Conditions shall be deemed to be
expressed in or, in the case of a
currency conversion rate, converted
for or, as the case may be into,
exchange rate.
(iii)
Die
Emittentin
und
die
Berechnungsstelle können weitere
Änderungen an diesen Bedingungen
vornehmen,
um
diese
ihrer
Auffassung nach den dann gültigen
Gepflogenheiten anzupassen, die für
Instrumente mit Währungsangaben
in Euro gelten.
(iii)
The Issuer and the Calculation
Agent are entitled to effect
adjustments to these Conditions as
they may decide to conform them to
conventions then applicable to
instruments expressed in Euro.
(iv)
Die
Emittentin
und
die
Berechnungsstelle können ferner
solche
Anpassungen
dieser
Bedingungen vornehmen, die sie
nach billigem Ermessen (gemäß §
315 BGB bzw. § 317 BGB) für
angebracht
halten,
um
den
Auswirkungen der dritten Stufe der
Europäischen
Wirtschaftsund
Währungsunion gemäß dem Vertrag
zur Gründung der Europäischen
Gemeinschaft
auf
diese
Bedingungen Rechnung zu tragen.
(iv)
Agent at their reasonable discretion
(pursuant to § 315 of the BGB or,
as the case may be, § 317 of the
BGB) shall be entitled to effect such
they may determine to be
appropriate to account for the effect
of the third stage of the European
Economic and Monetary Union
pursuant to the Treaty establishing
the European Community on these
Conditions.
(2)
Die Emittentin und die Wertpapierstellen
(§ 9) haften weder gegenüber den
Wertpapiergläubigern noch gegenüber
sonstigen Personen für Provisionen,
Kosten, Verluste oder Ausgaben, die aus
oder in Verbindung mit der Überweisung
von
Euro
oder
einer
damit
zusammenhängenden
Währungsumrechnung oder Rundung von
Beträgen entstehen.
(2)
The Issuer and the Security Agents (§ 9)
shall not be liable to any Securityholder or
other person for any commissions, costs,
losses or expenses in relation to or
resulting from the transfer of Euro or any
currency conversion or rounding effected
in connection therewith.
(3)
Emittentin nach billigem Ermessen (gemäß
§
315
BGB)
bzw.
von
der
Berechnungsstelle nach billigem Ermessen
(gemäß § 317 BGB), vorgenommen und
von der Emittentin nach § 11 dieser
Bedingungen
bekannt
gemacht.
(3)
Conditions.
Any
adjustment
and
127
bindend.]
there is a manifest error.]
[im Fall von Aktien, Rohstoffen, Edelmetallen,
Zinssätzen und Indizes als Basiswert folgenden §
7 einfügen:
[in case of shares, commodities, precious
metals, interest rates and indices as Underlying
insert the following § 7:
§7
Kündigung
§7
Termination
(1)
Bei Vorliegen eines der nachstehend
beispielhaft
beschriebenen
Kündigungsereignisse ist die Emittentin
berechtigt, aber nicht verpflichtet, die
Wertpapiere
durch
Bekanntmachung
gemäß § 11 dieser Bedingungen unter
Angabe des Kündigungsereignisses zu
kündigen (die Kündigung):
(1)
If any of the following Termination
Events, as described below, occurs at
any time, the Issuer shall be entitled, but
not obliged, to terminate the Securities by
way of publication pursuant to § 11 of
these
Conditions,
specifying
the
Termination Event (the Termination):
(i)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses [der
Aktie]
[des
Rohstoffs][des
Edelmetalls][des
Zinssatzes][des
Index] als Basiswert wird endgültig
eingestellt, oder der Emittentin oder
der Berechnungsstelle wird eine
entsprechende Absicht bekannt.
(i)
The
determination
and/or
publication of the Price of [the
share]
[the
commodity]
[the
precious
metal][the
interest
rate][the Index] used as Underlying
is discontinued permanently, or the
Issuer or the Calculation Agent
obtains knowledge about the
intention to do so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
der Ansicht, dass eine Anpassung
dieser
Bedingungen oder
die
Festlegung
eines
NachfolgeBasiswerts [oder eines NachfolgeIndex Sponsors], aus welchen
Gründen auch immer, nicht möglich
sei.
(ii)
It is, in the opinion of the Issuer and
of the Calculation Agent at their
may be, § 317 of the BGB), not
possible, for whatever reason, to
make
adjustments
to
these
Conditions or to select a Successor
Underlying [or to select a
Successor Index Sponsor].
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
der Ansicht, dass eine sonstige
erhebliche
Änderung
der
Marktbedingungen
[an
der
Maßgeblichen
Börse][in
dem
Maßgeblichen
Handelssystem]
eingetreten ist.
(iii)
In the opinion of the Issuer and of
the Calculation Agent at their
may be, § 317 of the BGB), another
material change in the market
conditions occurred [in relation to
the Relevant Stock Exchange][in
relation to the Relevant Trading
System].
[im Fall von Aktien als Basiswert zusätzlich
folgende Absätze (iv) bis (vii) einfügen:
(iv)
[in case of shares as Underlying add the
following paras. (iv) to (vii):
Der Emittentin wird die Absicht, die
Notierung
der
Aktien
der
Gesellschaft [in dem Maßgeblichen
Handelssystem] [bzw.] [an der
128
(iv)
The Issuer obtains knowledge
about the intention to discontinue
permanently the quotation of the
shares of the Company [in the
Maßgeblichen Börse] aufgrund einer
Verschmelzung durch Aufnahme
oder durch Neubildung, einer
Umwandlung in eine Rechtsform
ohne Aktien oder aus irgendeinem
sonstigen vergleichbaren Grund,
insbesondere
in
Folge
eines
Delistings der Gesellschaft, endgültig
einzustellen, bekannt.
the Relevant Stock Exchange] [, as
the case may be] due to a merger
or a new company formation, due
to a transformation of the Company
into a legal form without shares, or
due to any other comparable
reason, in particular as a result of a
delisting of the Company,
(v)
Die
Beantragung
des
Insolvenzverfahrens
oder
eines
vergleichbaren Verfahrens über das
Vermögen der Gesellschaft nach
dem
für
die
Gesellschaft
anwendbaren Recht.
(v)
An insolvency proceeding or any
other similar proceeding under the
jurisdiction applicable to and
governing the Company is initiated
in regard to the assets of the
Company.
(vi)
Die Übernahme der Aktien der
Gesellschaft durch einen Aktionär in
Höhe von mindestens 75 % des
Grundkapitals, wodurch die Liquidität
der Aktie im Handel nach Ansicht der
Emittentin maßgeblich beeinträchtigt
wird.
(vi)
Take-over of the shares of the
Company in the amount of at least
75 % of the share capital of the
Company by a shareholder,
resulting in, in the Issuer's opinion,
a massive impact on the liquidity of
such shares in the market.
(vii)
Das Angebot gemäß dem Aktienoder
Umwandlungsgesetz
oder
gemäß
einer
vergleichbaren
Regelung des für die Gesellschaft
anwendbaren
Rechts
an
die
Aktionäre der Gesellschaft, die
Altaktien der Gesellschaft gegen
Barausgleich, andere Wertpapiere
als Aktien oder andere Rechte, für
die keine Notierung an einer Börse
bzw. einem Handelssystem besteht,
umzutauschen.]
(vii)
Stock Corporation Act, the German
Law regulating the Transformation
of Companies or any other similar
proceeding under the jurisdiction
applicable to and governing the
Company to convert existing shares
of the Company to cash settlement,
to Securities other than shares or
rights, which are not quoted on a
stock exchange and/or in a trading
system.]
[([•]) [gegebenenfalls andere Bestimmung
im
Zusammenhang
mit
der
Kündigung einfügen: [•]]]
[([•]) [if
appropriate,
insert
other
determination in the context of a
termination: [•]]]
(2)
Die Kündigung hat innerhalb von [•] nach
dem Vorliegen des Kündigungsereignisses
und unter Angabe des Kalendertags, zu
dem die Kündigung wirksam wird (der
Kündigungstag),
zu
erfolgen.
In
Zweifelsfällen über das Vorliegen des
Kündigungsereignisses entscheidet die
Emittentin gemäß § 315 BGB nach billigem
Ermessen.
(2)
The Termination shall be effected within
[•] following the occurrence of the
Termination Event and shall specify the
calendar day, on which the Termination
becomes effective (the Termination
Date). The Issuer reserves the right to
determine in cases of doubt the
occurrence of a Termination Event. Such
determination shall be done at the
Issuer‘s reasonable discretion pursuant to
§ 315 of the BGB.
(3)
Im Fall der Kündigung zahlt die Emittentin
an jeden Wertpapiergläubiger bezüglich
jedes von ihm gehaltenen Wertpapiers
einen
Geldbetrag
in
der
Auszahlungswährung,
der
von
der
(3)
In case of Termination the Issuer shall
pay to each Securityholder an amount in
the Settlement Currency with respect to
each Security held by him, which is
stipulated by the Issuer at its reasonable
129
Ermessen,
gegebenenfalls
unter
Berücksichtigung des dann maßgeblichen
Kurses des Basiswerts und der durch die
Kündigung bei der Emittentin angefallenen
Kosten, als angemessener Marktpreis
eines
Wertpapiers
bei
Kündigung
festgelegt wird (der Kündigungsbetrag).]
als
discretion and, if applicable, considering
the Price of the Underlying then prevailing
and the expenses of the Issuer caused by
the Termination, pursuant to § 315 of the
BGB as fair market price at occurrence of
termination (the Termination Amount).]
Underlying insert the following § 7:
§7
Kündigung
(1)
rates
as
§7
Termination
beispielhaft
beschriebenen
Wertpapiere
durch
Bekanntmachung
(1)
these
Conditions,
specifying
the
(i)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses einer im
Zusammenhang
mit
einem
Währungswechselkurs als Basiswert
verwendeten
Währung
wird
endgültig eingestellt, oder der
Emittentin
oder
der
Berechnungsstelle
wird
eine
(i)
The
determination
and/or
publication of the price of a
currency used in relation to the
currency exchange rate used as
Underlying
is
discontinued
permanently, or the Issuer or the
Calculation
Agent
obtains
knowledge about the intention to do
so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
dieser Bedingungen, aus welchen
sei.
(ii)
make
adjustments
to
these
Conditions.
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
erhebliche
Änderung
der
Marktbedingungen
an
dem
Maßgeblichen
Devisenmarkt
eingetreten ist.
(iii)
conditions occurred in relation to
the Relevant Exchange Market.
(iv)
Eine im Zusammenhang mit einem
verwendete Währung wird in ihrer
Funktion
als
gesetzliches
Zahlungsmittel des Landes oder der
Rechtsordnung bzw. der Länder
oder Rechtsordnungen, welche die
(iv)
The currency used in connection
with the currency exchange rate
used as Underlying is, in its
function as legal tender, in the
country or jurisdiction, or countries
or jurisdictions, maintaining the
authority, institution or other body
130
Behörde, Institution oder sonstige
Körperschaft unterhalten, die diese
Währung ausgibt, durch eine andere
Währung ersetzt oder mit einer
anderen
Währung
zu
einer
gemeinsamen
Währung
verschmolzen, oder der Emittentin
oder der Berechnungsstelle wird
eine entsprechende Absicht bekannt.
which issues such currency,
replaced by another currency, or
merged with another currency to
become a common currency, or the
intention to do so.
(v)
Der
Umstand,
dass
ein
Maßgebliches Land (aa) Kontrollen
einführt oder eine entsprechende
Absicht bekundet, (bb) (i) Gesetze
und Vorschriften einführt oder eine
entsprechende Absicht bekundet
oder (ii) die Auslegung oder
Anwendung von Gesetzen oder
Vorschriften ändert oder eine
entsprechende Absicht bekundet,
und die Emittentin und/oder deren
verbundene Unternehmen nach
Auffassung der Berechnungsstelle
dadurch voraussichtlich in ihren
Möglichkeiten beeinträchtigt werden,
die im Zusammenhang mit einem
verwendete Währung zu erwerben,
zu halten, zu übertragen, zu
veräußern
oder
andere
Transaktionen in Bezug auf diese
Währung durchzuführen.
(v)
A Relevant Country (aa) imposes
any controls or announces its
intention to impose any controls or
(bb) (i) implements or announces
its intention to implement or (ii)
changes or announces its intention
to change the interpretation or
administration of any laws or
regulations, in each case which the
Calculation Agent determines is
likely to affect the Issuer’s and/or
any of its affiliates’ ability to
acquire, hold, transfer or realise the
currency used in connection with
the currency exchange rate used as
Underlying or otherwise to effect
transactions in relation to such
currency.
(vi)
Das Eintreten eines Ereignisses, das
es der Emittentin, und/oder deren
verbundenen Unternehmen nach
Feststellung der Berechnungsstelle
unmöglich machen würde, die im
Folgenden genannten Handlungen
vorzunehmen, bzw. deren Vornahme
beeinträchtigen
oder
verzögern
würde:
(vi)
The occurrence at any time of an
event, which the Calculation Agent
determines would have the effect of
preventing, restricting or delaying
the Issuer and/or any of its affiliates
from:
(aa)
Umtausch
einer
im
Zusammenhang mit einem
Währungswechselkurs
als
Basiswert
verwendeten
Währung
in
die
Auszahlungswährung bzw. in
eine sonstige Währung auf
üblichen und legalen Wegen
oder Transferierung einer
dieser Währungen innerhalb
des Maßgeblichen Landes
bzw. aus dem entsprechenden
Land,
infolge
von
dem
Maßgeblichen
Land
verhängter Kontrollen, die
einen solchen Umtausch oder
eine solche Transferierung
131
(aa)
converting the currency used
in connection with the
currency exchange rate used
as Underlying into the
Settlement Currency or into
another currency through
customary legal channels or
transferring within or from
any Relevant Country either
currency,
due
to
the
imposition by such Relevant
Country of any controls
restricting or prohibiting such
conversion or transfer, as the
case may be;
einschränken oder verbieten;
(bb)
Umtausch
einer
im
als
Basiswert
verwendeten
Währung
in
die
eine sonstige Währung zu
einem
Kurs,
der
nicht
schlechter ist als der für
inländische Finanzinstitute mit
Sitz in dem Maßgeblichen
Land geltende Kurs;
(bb)
another currency at a rate at
least as favourable as the
rate for domestic institutions
located in any Relevant
Country;
(cc)
Transferierung
einer
im
als
Basiswert]
verwendeten
Währung
von
Konten
innerhalb des Maßgeblichen
Lands auf Konten außerhalb
des Maßgeblichen Lands,
oder
(cc)
delivering the currency used
as Underlying from accounts
inside any Relevant Country
to accounts outside such
Relevant Country; or
(dd)
Transferierung
einer
im
als
Basiswert
verwendeten
Währung zwischen Konten in
dem Maßgeblichen Land oder
an eine nicht in dem
Maßgeblichen Land ansässige
Person.
(dd)
transferring the currency
used in connection with the
as
Underlying
between
accounts inside any Relevant
Country or to a party that is a
non-resident
of
such
Relevant Country.
im Zusammenhang mit der Kündigung
einfügen: [•]]]
[([•])
[if
appropriate,
insert
determination in the context
other
of a
(2)
Kündigungstag),
zu
erfolgen.
In
Ermessen.
(2)
§ 315 of the BGB.
(3)
einen
Geldbetrag
in
der
der
von
der
Ermessen,
gegebenenfalls
unter
(3)
132
eines
Wertpapiers
bei
Kündigung
[im Fall von Fondsanteilen
als
Basiswert
[in case of Fund Units as Underlying insert the
following § 7 :
§7
Kündigung
(1)
§7
Termination
beispielhaft
beschriebenen
Wertpapiere
durch
Bekanntmachung
(1)
these
Conditions,
specifying
the
(i)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses des als
Basiswert verwendeten Fondsanteils
wird endgültig eingestellt, oder der
Emittentin
oder
der
Berechnungsstelle
wird
eine
(i)
The
determination
and/or
publication of the price of the Fund
Unit used as Underlying is
discontinued permanently, or the
intention to do so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
dieser
Bedingungen oder
die
Festlegung
eines
NachfolgeBasiswerts, aus welchen Gründen
auch immer, nicht möglich sei.
(ii)
make
adjustments
to
these
Underlying.
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
erhebliche
Änderung
der
Marktbedingungen
[an
der
Maßgeblichen Börse] [oder] [in dem
Maßgeblichen
Handelssystem]
eingetreten ist.
(iii)
the Relevant Stock Exchange] [or]
[in relation to the Relevant Trading
System].
(iv)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
der Ansicht, dass ein Ereignis, das
einen Ersetzungsgrund (§ 6 (2))
begründen würde, eintreten wird.
(iv)
may be, § 317 of the BGB), an
event,
which
qualifies
as
Replacement Event (§ 6 (2)), will
occur.
im
Zusammenhang
mit
der
133
[([•]) [if
appropriate,
insert
other
Kündigung einfügen: [•]]]
(2)
Kündigungstag),
zu
erfolgen.
In
Ermessen.
(2)
§ 315 of the BGB.
(3)
einen
Geldbetrag
in
der
der
von
der
Ermessen,
gegebenenfalls
unter
eines
Wertpapiers
bei
Kündigung
(3)
§8
Marktstörungen
§8
Market Disruptions
(1)
Sind
die
Emittentin
und
die
Ermessens gemäß § 315 BGB der
Ansicht, dass an [dem Verfalltag] [bzw.]
[dem
Bewertungstag]
[einem
der
Bewertungsdurchschnittstage] [oder] [dem
Festlegungstag] eine Marktstörung (§ 8
(3)) vorliegt, dann wird [der Verfalltag]
[bzw.] [der Bewertungstag] [der jeweilige
Bewertungsdurchschnittstag] [oder] [der
Festlegungstag] auf den unmittelbar darauf
folgenden Basiswert-Berechnungstag, an
dem keine Marktstörung mehr vorliegt,
verschoben. Die Emittentin wird sich
bemühen, den Beteiligten unverzüglich
gemäß § 11 mitzuteilen, dass eine
Marktstörung eingetreten ist. Eine Pflicht
zur Mitteilung besteht jedoch nicht.
(1)
Calculation Agent in their reasonable
discretion pursuant to § 315 of the BGB, a
Market Disruption (§ 8 (3)) prevails on [the
Expiration Date] [or] [the Valuation Date]
[one of the Valuation Averaging Dates] [or]
[on] the Fixing Date] [, as the case may
be,][the Expiration Date] [or] [the Valuation
Date] [the relevant Valuation Averaging
Date] [or] [the Fixing Date] [, as the case
may be,] shall be postponed to the next
succeeding Underlying Calculation Date on
which no Market Disruption prevails. The
Issuer shall endeavour to notify the parties
pursuant to § 11 without delay of the
occurrence of a Market Disruption.
However, there is no notification obligation.
(2)
Wenn [der Verfalltag] [bzw.] [der
Bewertungstag]
[der
jeweilige
Bewertungsdurchschnittstag] aufgrund der
Bestimmungen des § 8 (1) um acht
Basiswert-Berechnungstage nach [dem
Verfalltag]
[bzw.]
[dem
Bewertungstag][dem
jeweiligen
Bewertungsdurchschnittstag] verschoben
worden ist und auch an diesem Tag die
Marktstörung fortbesteht, dann gilt dieser
(2)
If [the Expiration Date] [or] [the Valuation
Date] [, as the case may be,] has been
postponed, due to the provisions of § 8 (1),
by eight Underlying Calculation Dates
following [the Expiration Date] [or] [the
Valuation Date] [the relevant Valuation
Averaging Date] [, as the case may be,]
and if the Market Disruption continues to
prevail on this day, this day shall be
134
(3)
Tag als [der Verfalltag] [bzw.] [der
Bewertungstag]
[maßgebliche
Bewertungsdurchschnittstag]; eine weitere
Verschiebung [des Verfalltags] [bzw.] [des
Bewertungstags]
[der
maßgeblichen
Bewertungsdurchschnittstage] findet nicht
statt.
deemed [the Expiration Date][or] [the
Valuation Date] [the relevant Valuation
Averaging Date] [, as the case may be],
and [the Expiration Date] [or] [the Valuation
Date] [, as the case may be] shall not be
further postponed.
Die Emittentin und die Berechnungsstelle
werden dann nach Ausübung billigen
Ermessens gemäß § 315 BGB sowie unter
Berücksichtigung
(i)
der
dann
herrschenden Marktgegebenheiten, (ii)
eines geschätzten Kurses des Basiswerts,
ermittelt auf Grundlage der zuletzt
erhältlichen Kurse des Basiswerts [im Fall
eines Index als Basiswert folgenden Text
einfügen: und der von dem Index Sponsor
abgegebenen Schätzungen,] und (iii)
sämtlicher sonstiger Konditionen bzw.
Faktoren, die die Emittentin und die
Berechnungsstelle
angemessenerweise
für bedeutsam halten, bestimmen, ob, und
gegebenenfalls in welcher Höhe, die
Emittentin einen Geldbetrag in der
Auszahlungswährung zahlen wird. Auf
diesen Geldbetrag finden die in diesen
Bedingungen enthaltenen Bestimmungen
über
den
Auszahlungsbetrag
entsprechende Anwendung.
The Issuer and the Calculation Agent will
then, in their reasonable discretion
pursuant to § 315 of the BGB and taking
into account (i) the market conditions then
prevailing, (ii) a Price of the Underlying
estimated on the basis of last announced
Prices of the Underlying [in case of an
Index as the Underlying insert the following
text: and of any estimate given by the Index
Sponsor, ] and (iii) such other conditions or
factors as the Issuer and the Calculation
Agent reasonably consider to be relevant,
determine whether and in which amount, if
applicable, the Issuer will make payment of
an amount in the Settlement Currency. The
provisions of these Conditions relating to
the Settlement Amount shall apply mutatis
mutandis to such payment.
Eine Marktstörung bedeutet
(3)
A Market Disruption shall mean
die Suspendierung der Bekanntgabe des
maßgeblichen Kurses des Basiswerts an
einem
für
die
Berechung
eines
Auszahlungsbetrags
bzw.
eines
Vorzeitigen
Auszahlungsbetrags
maßgeblichen Basiswert-Berechnungstags
oder die Suspendierung oder eine nach
Auffassung der Emittentin und der
Berechnungsstelle
wesentliche
Einschränkung des Handels
a suspension of the announcement of the
Price of the Underlying on any Underlying
Calculation Date relevant for determining
the Settlement Amount or the Early
Redemption Amount, as the case may be,
or a suspension or a restriction, the latter of
which is in the Issuer’s and Calculation
Agent’s opinion significant, imposed on
trading
(i)
[in
dem
Maßgeblichen
Maßgeblichen Börse] [oder] [, im
Fall eines Währungswechselkurses
als Basiswert: in dem Maßgeblichen
Devisenmarkt, der als Grundlage für
die Feststellung des Basiswerts
dient,] [, im Fall eines Index als
Basiswert: an der/den Börse(n) bzw.
in dem Markt/den Märkten, an/in
der/dem/ denen die dem Basiswert
zugrunde liegenden Werte notiert
oder gehandelt werden,] allgemein
oder
(i)
[on the Relevant Trading System]
[or] [on the Relevant Stock
Exchange] [, as the case may be,]
[or] [, in case of an exchange rate as
Underlying:
on
the
Relevant
Exchange Market, which is used as
a basis for the calculation of the
Underlying,] [or] [, in case of an
Index as Underlying: on the stock
exchange/s or in the market/s on/in
which the underlying values of
Underlying are quoted or traded,] in
general or
(ii)
[in
(ii)
[in the Underlying [on the Relevant
dem
Basiswert
[in
dem
135
Maßgeblichen
Handelssystem]
[bzw.] [an der Maßgeblichen Börse]]
[[oder] [,im Fall eines Index als
Basiswert:
in
einzelnen
dem
Basiswert zugrunde liegender Werte
an der/den Börse(n) bzw. in dem
Markt/den Märkten an/in der/dem/
denen diese Werte notiert oder
gehandelt werden, sofern
eine
wesentliche
Anzahl
oder
ein
wesentlicher
Anteil
unter
Berücksichtigung
der
Marktkapitalisierung betroffen ist
(als wesentliche Anzahl bzw.
wesentlicher Anteil gilt eine solche
oder ein solcher von mehr als [10%]
[20%]),] oder
Trading System] [or] [on the
Relevant Stock Exchange] [, as the
case may be] [[or] [, in case of an
Index as Underlying: in individual
underlying values of the Underlying
on the stock exchange/s or in the
market/s on/in which these values
are quoted or traded, provided that a
major number or a major portion in
terms of market capitalization is
concerned (a number or part in
excess of [10%] [20%] shall be
deemed to be material),] or
(iii)
in Options- oder Terminkontrakten in
Bezug auf [den Basiswert] [[oder] [,
im Fall eines Index als Basiswert:
die dem Basiswert zugrunde
liegenden
Werte]
an
der
Maßgeblichen Terminbörse, falls
solche
Optionsoder
Terminkontrakte dort gehandelt
werden, oder
(iii)
in option or futures contracts with
respect to the [Underlying] [[or] [, in
case of an Index as Underlying: to
the underlying values of the
Underlying] on the Relevant Futures
and Options Exchange, if such
option or futures contracts are traded
there, or
[(iv)
in
dem/den
Währungsmarkt/märkten,
in
dem/denen
gegebenenfalls die Kurse für die
Währungsumrechnung
in
die
Auszahlungswährung gemäß § 5(2)
festgestellt werden, oder]
[(iv)
on the foreign exchange market(s) in
which the rates for the conversion
into
the
Settlement
Currency
pursuant to § 5(2) are determined, if
applicable, or]
[(iv)] [(v)] aufgrund einer Anordnung einer
Behörde
[,
des
betreffenden
Handelssystems]
[oder]
[der
Maßgeblichen Börse] bzw. aufgrund
eines
Moratoriums
für
Bankgeschäfte in dem Land, in dem
[das Maßgebliche Handelssystem]
[bzw.] [die Maßgebliche Börse]
ansässig
ist,
oder
aufgrund
sonstiger Umstände.
(4)
Eine Beschränkung der Stunden oder
Anzahl der Tage, an denen ein Handel
statt findet, gilt nicht als Marktstörung,
sofern die Einschränkung auf einer
Änderung der regulären Geschäftszeiten
[des
Maßgeblichen
Handelssystems]
[bzw.] [der Maßgeblichen Börse] [oder] [im
Fall eines Wechselkurses als Basiswert: in
dem Maßgeblichen Devisenmarkt, der als
Basiswerts dient, ] beruht, die mindestens
eine (1) Stunde vor (i) entweder dem
tatsachlichen
regulären
Ende
der
Geschäftszeiten [in dem Maßgeblichen
[(iv)] [(v)] due to a directive of an authority [,
of the Relevant Trading System] [or]
[of the Relevant Stock Exchange] or
due to a moratorium, which is
declared in respect of banking
activities in the country, in which [the
Relevant Trading System] [or] [the
Relevant
Stock
Exchange]
is
located, or due to other whatsoever
reasons.
(4)
136
A restriction of the hours or the number of
days during which trading takes place is
not deemed a Market Disruption, if the
restriction is based on a change in regular
trading hours [on the Relevant Trading
System] [or] [at the Relevant Stock
Exchange] [, as the case may be,] [or] [, in
case of an exchange rate as Underlying: on
the Relevant Exchange Market, which is
used as a basis for the calculation of the
Underlying,] announced in advance at least
one (1) hour prior to the earlier of (i) the
actual closing time for the regular trading
hours [on the Relevant Trading System]
Handelssystem]
[bzw.]
[an
der
Maßgeblichen Börse] oder (ii) dem Termin
für die Abgabe von Handelsaufträgen zur
Bearbeitung an dem betreffenden Tag [in
dem Maßgeblichen Handelssystem] [bzw.]
[an der Maßgeblichen Börse], je nachdem
welcher Zeitpunkt früher ist, angekündigt
worden ist. Eine im Laufe eines Tages
auferlegte Beschränkung im Handel
aufgrund von Preisbewegungen, die
bestimmte
vorgegebene
Grenzen
überschreiten,
gilt
nur
dann
als
Marktstörung, wenn diese Beschränkung
bis zum Ende der Handelszeit an dem
betreffenden Tag fortdauert.
(5)
Das Bestehen einer Marktstörung vor [dem
Verfalltag]
[bzw.]
[vor]
[dem
Bewertungstag]
[einem
der
Bewertungsdurchschnittstage] [oder] [dem
Festlegungstag] bleibt für die Feststellung
des Erreichens, Überschreitens oder
Unterschreitens
einer
nach
diesen
Bedingungen maßgeblichen Schwelle
unberücksichtigt.
[or] [of the Relevant Stock Exchange] or (ii)
the submission deadline for orders entered
[into the Relevant Trading System] [or] [into
the Relevant Stock Exchange] for
execution on the relevant day. A restriction
of trading which is levied during the course
of any day due to price developments
exceeding certain prescribed limits shall
only be deemed a Market Disruption, if
such restriction continues until the end of
trading hours on the relevant day.
(5)
§9
Berechnungsstelle; Optionsstelle;
Zahlstelle
The existence of a Market Disruption prior
to [the Expiration Date] [or] [to] [the
Valuation Date] [one of the Valuation
Averaging Dates] [or] [to] the Fixing Date] [,
as the case may be,] shall be disregarded
when determining reaching, exceeding or
falling short of any threshold, relevant
under these Conditions.
§9
Calculation Agent; Warrant Agent;
Paying Agent;
(1)
Die Berechnungsstelle, die Optionsstelle
und die Zahlstelle (die Wertpapierstellen)
übernehmen diese Funktion jeweils in
Übereinstimmung
mit
diesen
Bedingungen. Jede der Wertpapierstellen
haftet dafür, dass sie im Zusammenhang
mit den Wertpapieren Handlungen bzw.
Berechnungen vornimmt, nicht vornimmt
oder nicht richtig vornimmt oder sonstige
Maßnahmen trifft oder unterlässt nur,
wenn und soweit sie jeweils die Sorgfalt
eines ordentlichen Kaufmanns verletzt hat.
(1)
The Calculation Agent, the Warrant Agent
and the Paying Agent (the Security
Agents) shall assume such role in
accordance with the Conditions. Each of
the Security Agents shall be liable for
making, failing to make or incorrectly
making any measure or calculations, as the
case may be, or for taking or failing to take
any other measures only if and insofar as
they fail to exercise the due diligence of a
prudent businessman.
(2)
Jede der Wertpapierstellen handelt
ausschließlich als Erfüllungsgehilfin der
Emittentin und hat keinerlei Pflichten
gegenüber dem Wertpapiergläubiger. Die
Wertpapierstellen sind jeweils von den
Beschränkungen des § 181 BGB befreit.
(2)
Each of the Security Agents acts
exclusively as vicarious agent of the Issuer
and
has
no
obligations
to
the
Securityholder. Each of the Security Agents
is exempt from the restrictions under § 181
of the BGB.
(3)
Die Emittentin ist berechtigt, jederzeit jede
oder alle der Wertpapierstellen durch ein
anderes Finanzinstitut zu ersetzen, eine
oder
mehrere
zusätzliche
Wertpapierstellen zu bestellen und deren
Bestellung zu widerrufen. Ersetzung,
Bestellung und Widerruf werden gemäß §
11 bekannt gemacht.
(3)
The Issuer is entitled at any time to replace
any of or all the Security Agents by another
financial institution, to appoint one or
several additional Security Agents, and to
revoke
their
appointment.
Such
replacement, appointment and revocation
shall be published in accordance with § 11.
(4)
Jede der Wertpapierstellen ist berechtigt,
(4)
Each of the Security Agents is entitled to
137
durch schriftliche Anzeige gegenüber der
Emittentin jederzeit ihr Amt niederzulegen.
Die Niederlegung wird nur wirksam mit der
Bestellung einer anderen Gesellschaft als
Berechnungsstelle, Optionsstelle bzw. als
Zahlstelle
durch
die
Emittentin.
Niederlegung und Bestellung werden
gemäß § 11 bekannt gemacht.
resign at any time from their function upon
prior written notice to the Issuer. Such
resignation shall only become effective if
another company is appointed by the
Issuer as Calculation Agent, Warrant Agent
or as Paying Agent, as the case may be.
Resignation and appointment are published
in accordance with § 11.
§ 10
Ersetzung der Emittentin
(1)
§ 10
Substitution of the Issuer
Die Emittentin ist jederzeit berechtigt, ohne
Zustimmung der Wertpapiergläubiger eine
andere Gesellschaft als Emittentin (die
Neue
Emittentin)
hinsichtlich
aller
Verpflichtungen aus oder in Verbindung
mit den Wertpapieren an die Stelle der
Emittentin zu setzen, sofern
(1)
The Issuer is entitled at any time, without
the consent of the Securityholders, to
substitute another company as issuer (the
New Issuer) with respect to all obligations
under or in connection with the Securities,
if
(i)
die
Neue
Emittentin
alle
Verpflichtungen der Emittentin aus
oder in Verbindung mit den
Wertpapieren übernimmt,
(i)
the New Issuer assumes all
obligations of the Issuer under or in
connection with the Securities,
(ii)
die Neue Emittentin alle etwa
notwendigen Genehmigungen von
den zuständigen Behörden erhalten
hat, wonach die Neue Emittentin alle
sich aus oder in Verbindung mit den
Wertpapieren
ergebenden
Verpflichtungen erfüllen kann und
Zahlungen ohne Einbehalt oder
Abzug von irgendwelchen Steuern,
Abgaben oder Gebühren an die
Zahlstelle transferieren darf, und
(ii)
the New Issuer has obtained all
necessary authorisations, if any, by
the competent authorities, under
which the New Issuer may perform
all obligations arising under or in
connection with the Securities and
transfer payments to the Paying
Agent
without
withholding
or
deduction of any taxes, charges or
expenses, and
(iii)
die Emittentin unbedingt und
unwiderruflich die Verpflichtungen
der Neuen Emittentin garantiert.
(iii)
the Issuer unconditionally
irrevocably
guarantees
obligations of the New Issuer.
and
the
(2)
Im Falle einer solchen Ersetzung der
Emittentin gilt jede in diesen Bedingungen
enthaltene Bezugnahme auf die Emittentin
fortan als auf die Neue Emittentin
bezogen.
(2)
In case of such a substitution of the Issuer
any reference in these Conditions to the
Issuer shall forthwith be deemed to refer to
the New Issuer.
(3)
Die Ersetzung der Emittentin ist für die
endgültig
und
bindend
und
wird
den
Wertpapiergläubigern unverzüglich gemäß
§ 11 bekannt gemacht.
(3)
The substitution of the Issuer shall be final,
binding
and
conclusive
on
the
Securityholders and will be published to the
Securityholders without undue delay in
§ 11
Bekanntmachungen
(1)
§ 11
Publications
Bekanntmachungen, die die Wertpapiere
betreffen, werden [in einer oder mehreren
Zeitungen veröffentlicht, die in [dem
Mitgliedstaat] [den Mitgliedstaaten] des
(1)
138
Publications relating to the Securities will
be published [by insertion in one or more
newspapers circulated throughout, or
widely circulated in, the Member State[s] of
Europäischen Wirtschaftsraums, in [dem]
[denen]
das
öffentliche
Angebot
unterbreitet wird, gängig sind oder in
großer Auflage verlegt werden,] [und,
sofern
rechtlich
erforderlich,
im
[elektronischen]
Bundesanzeiger
veröffentlicht] [bzw.] [in einer der jeweils
maßgeblichen
Rechtsordnung
entsprechenden
Form
veröffentlicht].
Soweit rechtlich zulässig werden die
Bekanntmachungen
den
Wertpapiergläubigern ausschließlich durch
Mitteilung
der
Emittentin
an
die
Clearingstelle zur Benachrichtigung der
Wertpapiergläubiger übermittelt.
the European Economic Area, in which the
offer to the public is made] [and, to the
extent required by law, in the [online]
German
Federal
Gazette
(Bundesanzeiger)] [or, as the case may
be,] [in the way required by the relevant
jurisdiction, respectively]. To the extent
legally possible, the publications will be
published by way of Issuer’s notification to
the Clearing System for the purposes of
notifying the Securityholders.
(2)
Bekanntmachungen
sind
mit
Veröffentlichung bzw. mit Mitteilung an die
Clearingstelle durch die Emittentin den
Wertpapiergläubigern gegenüber wirksam
abgegeben.
(2)
All publications have been validly given to
the Securityholders with their publication or
with the Issuer’s notification to the Clearing
System, as the case may be.
(3)
Bekanntmachungen sind, falls sie der
Clearingstelle zugehen, am dritten Tag
nach Zugang bei der Clearingstelle den
Wertpapiergläubigern
wirksam
zugegangen oder, falls sie veröffentlicht
werden (unabhängig davon, ob dies
zusätzlich geschieht), am Tag der
Veröffentlichung oder, falls sie mehr als
einmal veröffentlicht werden, am Tag der
ersten Veröffentlichung, oder falls eine
Veröffentlichung in mehr als einem
Medium erforderlich ist, am Tag der ersten
Veröffentlichung in allen erforderlichen
Medien. Im Fall der Bekanntmachung
sowohl durch Veröffentlichung als auch
durch
Erklärung
gegenüber
der
Clearingstelle ist die zeitlich vorangehende
Bekanntmachung
bzw.
Erklärung
maßgeblich.
(3)
All publications shall, in case of the Issuer’s
notification to the Clearing System, be
effectively given to the Securityholders on
the third day after its receipt by the
Clearing System or, if published (whether
or not such publication occurs in addition to
a notification to the Clearing System) on
the date of its publication, or, if published
more than once, on the date of its first
publication, or, if a publication is required in
more than one medium, on the date of the
first publication in all required media. In
case of announcement by both, publication
and Issuer’s notification to the Clearing
System, the publication becomes effective
on the date of the first of such publication
or Issuer’s notification, as the case may be.
§ 12
Begebung weiterer Wertpapiere; Ankauf;
Einziehung; Entwertung
§ 12
Issue of further Securities; Purchase; Call;
Cancellation
(1)
Die Emittentin ist berechtigt, ohne
Zustimmung der Wertpapiergläubiger,
jederzeit weitere Wertpapiere mit gleicher
Ausstattung in der Weise zu begeben,
dass sie mit diesen Wertpapieren eine
einheitliche Serie bilden, wobei in diesem
Fall der Begriff Wertpapiere entsprechend
auszulegen ist.
(1)
The Issuer is entitled at any time to issue,
without the consent of the Securityholders,
further securities having the same terms
and conditions as the Securities so that the
same shall be consolidated and form a
single series with such Securities, and
references to Securities shall be construed
accordingly.
(2)
jederzeit Wertpapiere im Markt oder
anderweitig zu jedem beliebigen Preis zu
kaufen. Sofern diese Käufe durch
(2)
The Issuer is entitled at any time to
purchase, without the consent of the
Securityholders, Securities at any price in
the open market or otherwise. If purchases
are made by public tender, public tenders
139
öffentliches Angebot erfolgen, muss dieses
Angebot
allen
gegenüber erfolgen. Die von der Emittentin
erworbenen Wertpapiere können nach
Wahl der Emittentin von ihr gehalten,
weiterverkauft oder entwertet werden.
must be available to all Securityholders
alike. Such Securities may be held,
reissued, resold or cancelled, all at the
option of the Issuer.
(3)
jederzeit
ausstehende
Wertpapiere
einzuziehen und damit ihre Anzahl zu
reduzieren.
(3)
The Issuer is entitled at any time to call,
without the consent of the Securityholders,
outstanding Securities and to reduce their
number.
(4)
Aufstockung bzw. Reduzierung der
Wertpapiere werden unverzüglich gemäß
§ 11 dieser Bedingungen bekannt
gemacht.
(4)
Increase or reduction of Securities shall be
(5)
Sämtliche vollständig zurückgezahlten
Wertpapiere
sind
unverzüglich
zu
entwerten
und
können
nicht
wiederbegeben
oder
wiederverkauft
werden.
(5)
All Securities redeemed in full shall be
cancelled forthwith and may not be
reissued or resold.
§ 13
Sprache
§ 13
Language
[Diese Bedingungen sind in deutscher Sprache
abgefasst. Eine Übersetzung in die englische
Sprache ist beigefügt. Der deutsche Text ist
bindend und maßgeblich. Die Übersetzung in die
englische Sprache ist unverbindlich.] [Diese
Bedingungen sind in englische Sprache
abgefasst. Eine Übersetzung in die deutsche
Sprache ist beigefügt. Der englische Text ist
bindend und maßgeblich. Die Übersetzung in die
deutsche Sprache ist unverbindlich.]
[These Conditions are written in the German
language and provided with an English language
translation. The German text shall be controlling
and binding. The English language translation is
provided for convenience only.] [These
Conditions are written in the English language
and provided with a German language
translation. The English text shall be controlling
and binding. The German language translation is
provided for convenience only.]
§ 14
Anwendbares Recht; Erfüllungsort;
Gerichtsstand; Zustellungsbevollmächtigte;
Korrekturen; Teilunwirksamkeit
§ 14
Governing Law; Place of Performance; Place
of Jurisdiction; Agent of Process;
Corrections; Severability
(1)
Form und Inhalt der Wertpapiere sowie
alle Rechte und Pflichten aus den in
diesen
Bedingungen
geregelten
Angelegenheiten bestimmen sich in jeder
Hinsicht
nach
dem
Recht
der
Bundesrepublik Deutschland.
(1)
The form and content of the Securities as
well as all rights and duties arising from the
matters provided for in these Conditions
shall in every respect be governed by the
laws of the Federal Republic of Germany.
(2)
Erfüllungsort und Gerichtsstand für alle
Klagen oder sonstigen Verfahren aus oder
im Zusammenhang mit den Wertpapieren
ist, soweit rechtlich zulässig, Frankfurt am
Main, Bundesrepublik Deutschland.
(2)
The place of performance and place of
jurisdiction for all actions or other
procedures under or in connection with the
Securities shall, to the extent legally
possible, be Frankfurt am Main, Federal
Republic of Germany.
(3)
in ihrer Funktion als Emittentin und [•] in
ihren Funktionen als Anbieterin und
(3)
in its role as Issuer and [•] in its roles as
Offeror, and Paying Agent hereby appoints
140
Zahlstelle ernennen hiermit [•], als
deutsche Bevollmächtigte, an die innerhalb
der Bundesrepublik Deutschland im
Rahmen jedes Verfahrens aus oder im
Zusammenhang mit den Wertpapieren die
Zustellung bewirkt werden kann (die
Zustellungsbevollmächtigte). Falls, aus
welchem Grund auch immer, die
Zustellungsbevollmächtigte diese Funktion
nicht mehr ausübt oder keine Anschrift
innerhalb der Bundesrepublik Deutschland
mehr hat, verpflichten sich [•] und die [•]
eine Ersatz-Zustellungsbevollmächtigte in
der Bundesrepublik Deutschland zu
ernennen. Hiervon unberührt bleibt die
Möglichkeit, die Zustellung in jeder
anderen gesetzlich zulässigen Weise zu
bewirken.
(4)
Sollte
eine
Bestimmung
dieser
Bedingungen
ganz
oder
teilweise
unwirksam sein oder werden, so bleiben
die übrigen Bestimmungen wirksam. Die
unwirksame Bestimmung ist durch eine
wirksame Bestimmung zu ersetzen, die
den
wirtschaftlichen
Zwecken
der
unwirksamen Bestimmung so weit wie
rechtlich
möglich
entspricht.
Entsprechendes gilt für etwaige Lücken in
den Bedingungen.
[•], as its agent in the Federal Republic of
Germany to receive service of process in
any proceedings under or in connection
with the Securities in the Federal Republic
of Germany (the Agent of Process). If, for
any reason, such Agent of Process ceases
to act as such or no longer has an address
in the Federal Republic of Germany, [•] and
[•] agree to appoint a substitute agent of
process in the Federal Republic of
Germany. Nothing herein shall affect the
right to serve the process in any other
manner permitted by law.
(4)
141
If any of the provisions of these Conditions
is or becomes invalid in whole or in part,
the remaining provision(s) shall remain
valid. The invalid provision shall be
replaced by a valid provision, which, to the
extent legally possible, serves the
economic purposes of the invalid provision.
The same applies to gaps, if any, in these
Conditions.
6.2
ZERTIFIKATE / CERTIFICATES
WERTPAPIERBEDINGUNGEN
TERMS AND CONDITIONS OF THE
SECURITIES
§1
Zertifikatsrecht; Garantie
(1)
§1
Certificate Right; Guarantee
Die Emittentin gewährt hiermit dem
Wertpapiergläubiger von je einem (1)
[Capital Protected] Discount (Capped)
Zertifikat bezogen auf den Kurs des
Basiswerts
nach
Maßgabe
dieser
Bedingungen das folgende Recht (das
Zertifikatsrecht):
(a)
[(b)
(1)
Entspricht der Abrechnungskurs
des Basiswerts dem Höchstbetrag
bzw. ist der Abrechnungskurs
kleiner als der Höchstbetrag, hat
der Wertpapiergläubiger das Recht,
The
Issuer
hereby
grants
the
Securityholder of each (1) [Capital
Protected] Discount (Capped) Certificate
relating to the Price of the Underlying
under these Conditions the following right
(the Certificate Right):
(a)
If the Settlement Price of the
Underlying is lower than or equal to
the Cap Amount, the Securityholder
is entitled to receive,
[im Fall eines kapitalgeschützten
Mindestrückzahlungsbetrags
folgenden
Text
einfügen:
vorbehaltlich der Zahlung des
kapitalgeschützten
Mindestrückzahlungsbetrags, ]
[in case of a capital protected
Minimum Repayment Amount add
the following text: subject to the
payment of the capital protected
Minimum Repayment Amount, ]
[im Fall der Tilgung durch den
Auszahlungsbetrag folgenden Text
einfügen: den Abrechnungskurs
des Basiswerts multipliziert mit dem
Bezugsverhältnis
[in
die
Auszahlungswährung
umgerechnet]
und
auf
zwei
Dezimalstellen
kaufmännisch
gerundet]
(der
Auszahlungsbetrag) zu beziehen].
[in case of cash settlement insert
the following text: the Settlement
Price of the Underlying multiplied
by the Ratio [converted into the
Settlement
Currency]
and
afterwards commercially rounded to
Amount)].
[im Fall eines kapitalgeschützten
Mindestrückzahlungsbetrags
folgenden Text einfügen: Dabei
entspricht der Auszahlungsbetrag
nach § 1 (1) (a) dieser
Bedingungen mindestens dem
kapitalgeschützten
Mindestrückzahlungsbetrag.]
[in case of a capital protected
Minimum Repayment Amount add
the following text: The Settlement
Amount in accordance with § 1 (1)
(a) of these Conditions is, in any
case, equal to the capital protected
Minimum Repayment Amount.]
[gegebenenfalls
andere
Bestimmung
des
Auszahlungsbetrags einfügen: [•]].
[if
appropriate,
insert
other
determination of the Settlement
Amount: [•]].
Ist der Abrechnungskurs des
Basiswerts
größer
als
der
Höchstbetrag,
hat
der
Wertpapiergläubiger das Recht,
den Höchstbetrag multipliziert mit
dem Bezugsverhältnis [in die
Auszahlungswährung
142
[(b)
If the Settlement Price of the
Underlying exceeds the Cap
Amount, the Securityholder is
entitled to receive the Cap Amount
multiplied by the Ratio [converted
into the Settlement Currency] and
afterwards commercially rounded to
umgerechnet]
und
auf
zwei
Dezimalstellen
kaufmännisch
gerundet (der Auszahlungsbetrag)
zu beziehen.]
Amount).]
[gegebenenfalls
andere
Bestimmung
des
Auszahlungsbetrags einfügen: [•].]
[if
appropriate,
insert
other
determination of the Settlement
Amount: [•].]
(2)
Sämtliche im Zusammenhang mit dem
Zertifikatsrecht
vorzunehmenden
Festlegungen
und
Berechnungen,
insbesondere die Berechnung des
Auszahlungsbetrags, erfolgen durch die
Berechnungsstelle (§ 9). Die insoweit von
der
Berechnungsstelle
getroffenen
Festlegungen und Berechnungen sind,
außer in Fällen offensichtlichen Irrtums,
abschließend und für alle Beteiligten
bindend.
(3)
Any determination and calculation in
connection with the Certificate Right, in
particular the calculation of the Settlement
Amount, will be made by the Calculation
Agent (§ 9). Determinations and
calculations made in this respect by the
Calculation Agent are final and binding for
all participants except in the event of
manifest error.
(3)
IBG LLC (die Garantin) hat gemäß einem
zwischen der Garantin und der Emittentin
geschlossenen
Garantievertrag
die
unbedingte und unwiderrufliche Garantie
für
die
Erfüllung
der
Zahlungsverpflichtungen der Emittentin
hinsichtlich der Wertpapiere übernommen
(die Garantie).
(4)
IBG
LLC
(the
Guarantor)
has
unconditionally
and
irrevocably
guaranteed the fulfilment of the Issuer's
payment obligations relating to the
Securities, pursuant to the terms of a
guarantee agreement between the Issuer
and the Guarantor (the Guarantee).
§2
Definitionen
§2
Definitions
Abrechnungskurs
Settlement Price
Der Abrechnungskurs entspricht
The Settlement Price equals
[•]
[•]
[dem
Kurs
des
Basiswerts
an
Bewertungstag [zur Bewertungszeit].]
dem
[the Price of the Underlying on the Valuation
Date [at the Valuation Time].]
[Sofern
nach
billigem
Ermessen
der
Berechnungsstelle gemäß § 317 BGB am
Bewertungstag nicht ausreichend Liquidität in
dem Basiswert gegeben ist oder die Auflösung
von
Absicherungsgeschäften
wegen
der
Marktenge oder aus anderen Gründen den Kurs
des Basiswerts unangemessen beeinflusst, wird
die Berechnungsstelle den Abrechnungskurs
aus dem [arithmetischen] Durchschnitt der [•]Kurse des Basiswerts, die bei Auflösung der
Absicherungsgeschäfte für den Basiswert an
[dem Bewertungstag] erzielt werden, ermitteln.
[Die
Berechnungsstelle
wird
[die
Abschlusszeitpunkte am Festlegungstag bzw.]
die
Auflösungszeitpunkte
der
Absicherungsgeschäfte nach billigem Ermessen
gemäß § 317 BGB festlegen.]]
[If on the Valuation Date, in the opinion of the
Calculation Agent at its reasonable discretion
pursuant to § 317 of the BGB, there is not
sufficient liquidity in relation to the Underlying or
if the unwinding of any hedging transaction, due
to such illiquidity or any other reason, has an
inadequate impact on the Price of the
Underlying, the Calculation Agent shall
determine the Settlement Price based on the
[arithmetical] average of the [•] prices of the
Underlying, as indicated by the unwinding of the
related hedging transactions in the Underlying,
on [the Valuation Date]. [The Calculation Agent
shall determine [the closing dates on the Fixing
Date and] the unwinding dates of the hedging
transactions at its reasonable discretion
pursuant to § 317 of the BGB.]]
143
Anbieterin
Offeror
[•]
[•]
Anwendbares Recht
Governing Law
Deutsches Recht
German Law
Auszahlungswährung
Settlement Currency
Die Auszahlungswährung entspricht [•].
The Settlement Currency means [•].
Bankgeschäftstag
Banking Day
Der Bankgeschäftstag steht für jeden Tag, an
dem die Banken in [Frankfurt am Main,
Bundesrepublik Deutschland, ] [und] [in [•]] für
den Geschäftsverkehr geöffnet sind [, das
Trans-European Automated Real-time Gross
settlement Express Transfer System (TARGETSystem) geöffnet ist] und die Clearingstelle
Wertpapiergeschäfte abwickelt.
The Banking Day means each day on which the
banks in [Frankfurt am Main, Federal Republic
of Germany, ] [and] [in [•]] are open for business
[, the Trans-European Automated Real-time
Gross settlement Express Transfer System
(TARGET System) is open] and the Clearing
Agent settles securities dealings.
[im Fall einer Basiswährung folgenden Text
einfügen:
[in case of an Underlying Currency insert the
following text:
Basiswährung
Underlying Currency
Die Basiswährung entspricht [•].]
The Underlying Currency means [•].]
Basiswert
Underlying
Der Basiswert entspricht [Bezeichnung [der
Aktie] [des Index] [des Währungswechselkurses]
[des Edelmetalls] [des Rohstoffs] [des
Zinssatzes] [des Fondsanteils]: [•].]
The Underlying equals [Description of [the
share] [the Index] [the currency exchange rate]
[the precious metal] [the commodity] [the interest
rate] [the fund unit] [•].]
Text zusätzlich einfügen: (der Index), wie er von
[•] (der Index Sponsor) verwaltet, berechnet
und veröffentlicht wird].]
[in case of an Index as Underlying add the
following text: (the Index), as maintained,
calculated and published by [•] (the Index
Sponsor).]
folgenden Text zusätzlich einfügen: (der
Fondsanteil)
an
dem
[•]
(der
Investmentfonds).]
following text: (the Fund Unit) in the [•] (the
Investment Fund).]
[Der
Basiswert
wird
[ausgedrückt
in]
[umgerechnet in] [bezogen auf] [der] [die]
Basiswährung] [•].]
[The Underlying is [expressed in] [converted
into] [related to] [the Underlying Currency] [•].]
[In diesem Zusammenhang werden die dem
Basiswert zugrunde liegenden Werte bzw.
Komponenten jeweils als Einzelwert bzw. die
Einzelwerte bezeichnet.]
[In this context, the individual underlying values
or components of the Underlying are referred to
as a Component or, as the case may be, the
Components.]
144
Berechnungstag
Calculation Date
Der Berechnungstag steht
The Calculation Date means
für [•]
[•]
[für jeden Tag, an dem [das Maßgebliche
Handelssystem] [und] [die Maßgebliche Börse]
[und] [der Maßgebliche Devisenmarkt] für den
Handel geöffnet [ist] [sind] [, und] [der Kurs des
Basiswerts in Übereinstimmung mit den
maßgeblichen Regeln bestimmt wird]]
[each day, on which [the Relevant Trading
System] [and] [the Relevant Stock Exchange]
[and] [the Relevant Exchange Market] [is] [are]
open for trading [and] [the Price of the
Underlying is determined in accordance with the
relevant rules]]
Text einfügen: [[bzw.], in Bezug auf den Index, ]
für jeden Tag, an dem [(i)] der Index Sponsor
den offiziellen Kurs für den Index bestimmt,
berechnet und veröffentlicht [und (ii) ein Handel
bzw. eine Notierung in den dem Index zugrunde
liegenden Einzelwerten [, die mindestens [•]
[80%] [90%] der Marktkapitalisierung aller
Einzelwerte des Index bzw. des Gesamtwerts
des Index darstellen,] [an dem [Maßgeblichen
Börse] stattfindet]]]
following text: [[or, as the case may be, ] in
relation to the Index] each day, on which [(i)] the
Index Sponsor determines, calculates and
publishes the official price of the Index, [and (ii)
the Components, which are comprised in the
Index are [, to the extent of at least [•] [80%]
[90%] of the market capitalisation of all
Components or of the overall value of the Index,
] available for trading and quotation [in the
Relevant Trading System] [or] [on the Relevant
Stock Exchange]]]
folgenden Text zusätzlich einfügen: [[bzw.], in
Bezug auf den Fondsanteil,] für jeden Tag, an
dem
der
jeweilige
Administrator
des
Investmentfonds in Übereinstimmung mit den
Gründungsdokumenten
und
dem
Verkaufsprospekt des Investmentfonds den
Nettoinventarwert für den Investmentfonds
veröffentlicht].
following text: [[or, as the case may be,] in
relation to the Fund Unit] each day on which the
administrator of the Investment Fund publishes
the Net Asset Value for such Investment Fund in
accordance with the relevant Investment Fund's
prospectus and constitutional documents].
[Beginn des
Wertpapiere
[Start of public offer of the Securities
öffentlichen
Angebots
der
[•] ]
[•] ]
Berechnungsstelle
Calculation Agent
Die Berechnungsstelle bezeichnet [●]; Anschrift:
[●].
Calculation Agent means [●] having its business
address in [●].
[im Fall eines Bewertungstags folgenden Text
einfügen:
[in case of a Valuation Date insert the following
text
Bewertungstag
Valuation Date:
[Der Bewertungstag entspricht [•].]
[The Valuation Date means [•].]
[Der Bewertungstag entspricht dem [Verfalltag]
[unmittelbar auf den Verfalltag folgenden Tag]
[•].]
[The Valuation Date means [the Expiration Date]
[the day immediately succeeding the Expiration
Date] [•].]
Falls dieser Tag kein Berechnungstag in Bezug
If this day is not a Calculation Date in relation to
145
auf den Basiswert ist, dann gilt
the Underlying then
[der
unmittelbar
[vorangehende]
[darauf
folgende] Kalendertag, der ein Berechnungstag
in Bezug auf den Basiswert ist, als maßgeblicher
Bewertungstag in Bezug auf den Basiswert.] [•]]
[the immediately [preceding] [succeeding]
calendar day, which is a Calculation Date in
relation to the Underlying is deemed to be the
relevant Valuation Date in relation to the
Underlying.] [•] ]
[im Fall einer Bewertungszeit folgenden Text
einfügen:
[in case of a Valuation Time insert the following
text:
Bewertungszeit
Valuation Time
Die Bewertungszeit entspricht
The Valuation Time equals
[•]-Kurses des Basiswerts [durch den Index
Sponsor].] [•]]]
price of the Underlying [by the Index Sponsor].]
[•]]]
Bezugsverhältnis
Ratio
Das Bezugsverhältnis entspricht [•] [bzw. als
Dezimal ausgedrückt [•]; das heißt [[•]
[Wertpapier bezieht] [Wertpapiere beziehen]
sich auf [•] 1 Basiswert]] [bzw. 1 Wertpapier
bezieht sich auf [•] Basiswert[e]].
The ratio equals [•] [or expressed as a decimal
number [•], i.e. [[•] [Security relates] [Securities
relate] to 1 Underlying][, respectively, 1 Security
relates to [•] Underlying[s], as the case may be].
[Das Bezugsverhältnis wird am Festlegungstag
zur Festlegungszeit von der Berechnungsstelle
festgelegt.]
[The Ratio will be fixed by the Calculation Agent
[at the Fixing Time] on the Fixing Date.]
Clearingstelle
Clearing Agent
Clearingstelle steht für [Clearstream Banking
AG, Frankfurt am Main, (Neue Börsenstraße 1,
60487 Frankfurt am Main, Bundesrepublik
Deutschland)] [,] [Clearstream Banking S.A.,
Luxemburg, (42 Avenue JF Kennedy, L-1855
Luxemburg, Luxemburg)] [und] [Euroclear Bank
S.A./ N.V., Brüssel, als Betreiber des Euroclear
Systems (1 Boulevard du Roi Albert IIB - 1210
Brüssel, Belgien)] [•] oder jeden Nachfolger in
dieser Funktion. [Der Begriff „Clearingstelle“
umfasst sämtliche Clearingstellen.] [Dabei wird
die Dauerglobalurkunde, die die Wertpapiere
verbrieft, von [der Clearstream Banking AG,
Frankfurt am Main,] [•] als Verwahrstelle
verwahrt.]
Clearing Agent means [Clearstream Banking
AG, Frankfurt am Main, (Neue Boersenstraße 1,
60487 Frankfurt am Main, Federal Republic of
Germany)] [,] [Clearstream Banking S.A.,
Luxembourg (42 Avenue JF Kennedy, L-1855
Luxembourg, Luxembourg)] [and] [Euroclear
Bank S.A./ N.V., Brussels, as operator of the
Euroclear System (1 Boulevard du Roi Albert IIB
- 1210 Brussels, Belgium)] [•] or any successor
in this capacity. [The term “Clearing Agent” shall
refer to all Clearing Agents.] [The Permanent
Global Note, which represents the Securities is
deposited with [Clearstream Banking AG,
Frankfurt am Main,] [•] as Depositary Agent.]
CS-Regeln
CA Rules
CS-Regeln steht
Vorschriften und
[für [•], sowie] für
Verfahren, die auf
die
die
CA Rules means [[•] as well as] any regulation
and operating procedure applicable to and/or
146
Clearingstelle Anwendung finden und/oder von
dieser herausgegeben werden.
issued by the Clearing Agent.
[im Fall eines Emissionsbegleiters folgenden
Text einfügen
[in case of an Issuing Agent insert the following
text:
[Emissionsbegleiter
[Issuing Agent
Der Emissionsbegleiter bezeichnet [•].]]
The Issuing Agent means [•].]]
Emissionspreis
Issue Price
[Der Emissionspreis entspricht [•] [zuzüglich
eines Ausgabeaufschlags in Höhe von [•] je
Wertpapier].]
[The Issue Price equals [•] [plus an offering
premium amounting to [•] per Security].]
[Der Emissionspreis wird am Festlegungstag
festgelegt.]
[The Issue Price will be fixed by the Calculation
Agent on the Fixing Date [at the Fixing Time].]
Emissionstag
Issue Date
Der Emissionstag bezeichnet den [•].
The Issue Date means [•].
Emissionsvolumen
Issue Size
[Das
Emissionsvolumen
[Wertpapiere].]
beträgt
[•]
[The Issue Size means [•] [Securities].]
[Das Emissionsvolumen wird am Festlegungstag
festgelegt.]
[The Issue Size will be fixed by the Calculation
Agent on the Fixing Date [at the Fixing Time].]
Emittentin
Issuer
Die Emittentin bezeichnet die Interactive Brokers
Financial Products S.A.
The Issuer means Interactive Brokers Financial
Products S.A.
[im Fall eines Festlegungstags folgenden Text
einfügen:
[in case of a Fixing Date insert the following text:
Festlegungstag
Fixing Date
Der Festlegungstag bezeichnet [•].
The Fixing Date means [•].
Falls dieser Tag kein Berechnungstag in Bezug
auf [den Basiswert] ist, dann gilt
If this day is not a Calculation Date in relation to
[the Underlying] or, as the case may be, , then
[der
unmittelbar
[vorangehende]
[darauf
in Bezug auf [den [jeweils] betroffenen Basiswert
ist, als Festlegungstag in Bezug auf den [jeweils]
betroffenen Basiswert.]
relation to [the affected Underlying] is deemed to
be the Fixing Date in relation to the affected
Underlying.]
[der
unmittelbar
[vorangehende]
[darauf
in Bezug auf [den Basiswert] ist, als
relation to [the Underlying] is deemed to be the
147
Festlegungstag in Bezug auf den Basiswert.]
Fixing Date in relation to the Underlying.]
[Bei Verkürzung oder Verlängerung der
Zeichnungsfrist kann sich der Festlegungstag
entsprechend verschieben.] ]
[In case of abbreviation or extension of the
Subscription Period the Fixing Date may be
changed accordingly.] ]
[im Fall einer Festlegungszeit folgenden Text
einfügen:
[in case of a Fixing Time insert the following
text:
Festlegungszeit
Fixing Time
Die Festlegungszeit entspricht [•]
The Fixing Time equals [•]
[•]-Kurses des [Basiswerts] [durch den Index
Sponsor].] [•]]
price of the [Underlying] [by the Index Sponsor].]
[•]]
Gesamtsumme der Emission
Aggregate Amount of the Issue
[[Emissionspreis [(ohne Berücksichtigung des
Ausgabeaufschlags)] x Emissionsvolumen] [•].]
[[Issue Price [(without consideration of the
offering premium)] x Issue Size] [•].]
[Die Gesamtsumme der Emission wird am
Festlegungstag [zur Festlegungszeit] von der
Berechnungsstelle festgelegt.]
[The Aggregate Amount of the Issue will be fixed
by the Calculation Agent on the Fixing Date [at
the Fixing Time].]
Höchstbetrag
Cap Amount
[Der Höchstbetrag entspricht [•] [umgerechnet in
die Auszahlungswährung] [und] [auf zwei
Dezimalstellen kaufmännisch gerundet].]
[The Cap Amount equals [•] [converted into the
Settlement Currency] [and] [commercially
rounded to two decimal places].]
[Der Höchstbetrag wird am Festlegungstag [zur
Festlegungszeit von der Berechungsstelle
festgelegt.]
[The Cap Amount will be fixed by the Calculation
Agent at the Fixing Time on the Fixing Date.]
Kleinste handelbare Einheit
Minimum Trading Size
Die Kleinste handelbare Einheit entspricht [•]
bzw. einem ganzzahligen Vielfachen davon.
The Minimum Trading Size equals [•] or an
Kurs des Basiswerts
Price of the Underlying
Der Kurs des Basiswerts entspricht
The Price of the Underlying means
[•]
[•]
[dem
[fortlaufend]
[im
Maßgeblichen
Börse] ermittelten [•] Kurs des Basiswerts]
[[the [•] price of the Underlying as [continuously]
determined [in the Relevant Trading System] [or]
[on the Relevant Stock Exchange]]
Text einfügen: dem von dem Index Sponsor
berechneten und veröffentlichten [•] Kurs des
following text: the [•] price of the Underlying as
calculated and published by the Index Sponsor]
148
Basiswerts]
[im Fall eines Währungswechselkurses als
Basiswert folgenden Text einfügen: [•] [dem auf
[Reuters]
[Bloomberg]
auf
der
Seite
[„EUROFX/1“] [•], bzw. auf einer diese Seite
ersetzenden Seite, veröffentlichten [Geld-]
[Mittel-] [Brief-] [•] Kurs des Basiswerts]]
[in case of a currency exchange rate as
Underlying insert the following text: [•] [the
relevant [bid] [mean] [ask] [•] rate of the
Underlying
as
published
on
[Reuters]
[Bloomberg] on page [“EUROFX/1”] [•], or a
substitute thereof]
folgenden
Text
einfügen:
[•]
[dem
Nettoinventarwert des Investmentfonds bezogen
auf den Fondsanteil, wie er von dem
Administrator des Investmentfonds berechnet
[und veröffentlicht] wird]
following text: [•] [the Net Asset Value of the
Investment Fund in relation to the Fund Unit, as
calculated [and published] by the administrator
of the Investment Fund]
[, [ausgedrückt in] [umgerechnet in] [bezogen
auf] [der] [die] Basiswährung][•]].
[, [expressed in] [converted into] [related to] [the
Underlying Currency] [•]].
Laufzeit der Wertpapiere
Term of the Securities
Die Laufzeit der Wertpapiere steht für [•] [den
Zeitraum beginnend [um [•] Uhr, Ortszeit [•]
[Frankfurt
am
Main,
Bundesrepublik
Deutschland]
[•]]
am
[Emissionstag]
[Festlegungstag] [•] und endend [um [•] Uhr,
Ortszeit [Frankfurt am Main, Bundesrepublik
Deutschland] [•]] [mit der Feststellung des
Abrechnungskurses]
am
[Verfalltag]
[Bewertungstag]].
The Term of the Securities means [•] [the period,
commencing on the [Issue Date] [Fixing Date] [•]
[at [•] hrs local time [Frankfurt am Main, Federal
Republic of Germany] [•]] and ending [at [•] hrs
local time [Frankfurt am Main, Federal Republic
of Germany] [•]] [with the determination of the
Settlement Price] on the [Expiration Date]
[Valuation Date].]
[im
Fall
von
börsennotierten
Aktien,
börsennotierten Fondsanteilen oder einem Index
als Basiswert folgenden Text einfügen:
[in case of listed shares, listed fund units or an
Index as Underlying, as the case may be, insert
the following text:
Maßgebliche Börse
Relevant Stock Exchange
Die Maßgebliche Börse bezeichnet
The Relevant Stock Exchange means
[•]
[•]
[im Fall eines Index als Basiswert einfügen: die
Börse(n), an (der) (denen) aufgrund der
Bestimmung des Index Sponsors die im Index
enthaltenen Einzelwerte gehandelt werden.]]
[in case of an Index as Underlying, as the case
may be, insert the following text: the stock
exchange(s) on which the Components
comprised in the Index are traded, as
determined by the Index Sponsor.]]
Underlying, as the case may be, insert the
following text:
als
Maßgeblicher Devisenmarkt
Relevant Exchange Market
Der Maßgebliche Devisenmarkt bezeichnet
The Relevant Exchange Market means:
[•]
[•]
149
[[den
internationalen
Devisenmarkt]
[die
internationalen Devisenmärkte], an [dem]
[denen] der umsatzstärkste Handel in Bezug auf
den Basiswert stattfindet.]]
[the foreign exchange market[s], on which the
Underlying is primarily traded.]]
[im Fall von nicht börsennotierten Aktien ,
Rohstoffen, Edelmetallen, Zinssätzen, Indizes
und Fondsanteilen als Basiswert folgenden Text
einfügen:
[in case of non listed shares , commodities,
precious metals, interest rates, indices and fund
units as Underlying, as the case may be, insert
the following text:
Maßgebliches Handelssystem
Relevant Trading System
Das Maßgebliche Handelssystem bezeichnet
The Relevant Trading System means
[•]
[•]
Text einfügen: [das bzw. die Handelssystem(e),
in (dem) (denen) aufgrund der Bestimmung des
Index Sponsors die im Index enthaltenen
Einzelwerte gehandelt werden.]
[in case of an Index as Underlying or, as the
case may be, insert the following text: The
trading system(s) in which the Components
comprised in the Index are traded, as
determined by the Index Sponsor.]
folgenden Text einfügen: [den Investmentfonds]
[•].]]
[in case of a Fund Unit as Underlying, as the
case may be, insert the following text: [the
Investment Fund] [•].]]
Basiswert
oder
einer
von
der
Auszahlungswährung
abweichenden
Basiswährung gegebenenfalls folgenden Text
einfügen:
Underlying as the case may be, or of a
Settlement Currency other than the Underlying
Currency, insert, if appropriate, the following
text:
Maßgebliches Land
Relevant Country
Das Maßgebliche Land bezeichnet in Bezug auf
die als Basiswert verwendete Währung, sowohl
(i) ein Land (oder eine Verwaltungs- oder
Aufsichtsbehörde desselben), in dem die als
Basiswert verwendete Währung gesetzliches
Zahlungsmittel oder offizielle Währung ist, als
auch (ii) ein Land (oder eine Verwaltungs- oder
Aufsichtsbehörde desselben), zu dem die als
[Basiswert] verwendete Währung in einer
wesentlichen Beziehung steht, wobei sich die
Berechnungsstelle bei ihrer Beurteilung, was als
wesentlich zu betrachten ist, auf die ihrer
Ansicht nach geeigneten Faktoren beziehen
kann, sämtlich wie von der Emittentin und der
Ermessens (gemäß § 315 BGB bzw. § 317
BGB) bestimmt.]
The Relevant Country means with respect to
[the Underlying], each of (i) any country (or any
political or regulatory authority thereof) in which
the currency used as Underlying is the legal
tender or currency; and (ii) any country (or any
political or regulatory authority thereof) with
which the currency used as [Underlying] has a
material connection and, in determining what is
material the Calculation Agent may, without
limitation, refer to such factors as it may deem
appropriate, all as determined by the Issuer and
the Calculation Agent at their reasonable
discretion (pursuant to § 315 of the BGB or, as
the case may be, § 317 of the BGB).]
[Maßgebliche Terminbörse
[Relevant Futures and Options Exchange
Die Maßgebliche Terminbörse bezeichnet
The Relevant Futures and Options Exchange
means
[•]
[•]
150
[diejenige[n] Terminbörse[n], an [der] [denen]
der umsatzstärkste Handel in Bezug auf Terminoder Optionskontrakte auf den Basiswert
stattfindet].]
[The futures and options exchange[s], on which
future and option contracts on the Underlying
are primarily traded].]
[im Fall eines Mindestanlagebetrags folgenden
Text einfügen:
[in case of a Minimum Investment Amount add
the following text:
Mindestanlagebetrag
Minimum Investment Amount
Der Mindestanlagebetrag entspricht [•]]
The Minimum Investment Amount equals [•].]
[im Fall eines Mindestrückzahlungsbetrags
folgenden Text einfügen:
[in case of a Minimum Repayment Amount add
the following text:
Mindestrückzahlungsbetrag
[Der Mindestrückzahlungsbetrag entspricht [•]
[umgerechnet in die Auszahlungswährung] [auf
zwei Dezimalstellen kaufmännisch gerundet]]
Minimum Repayment Amount
[The Minimum Repayment Amount equals [•]
[converted into the Settlement Currency]
[commercially rounded to two decimal places]]
[Der Mindestrückzahlungsbetrag wird am
Festlegungstag [zur Festlegungszeit] von der
Berechnungsstelle festgelegt].]
[The Minimum Repayment Amount will be fixed
by the Calculation Agent [at the Fixing Time] on
the Fixing Date].]
Nennbetrag
Nominal Amount
Der Nennbetrag je Wertpapier entspricht [•].
The Nominal Amount per Security equals [•].
[in case of Fund Units insert the following text:
als
Basiswert
Nettoinventarwert
Net Asset Value
Der Nettoinventarwert (NAV) entspricht [dem
Nettoinventarwert des Investmentfonds je
Fondsanteil, wie er von dem maßgeblichen
Administrator
des
Investmentfonds
in
Übereinstimmung mit dem Verkaufsprospekt
und
den
Gründungsdokumenten
des
Investmentfonds berechnet und veröffentlicht
wird. Der Nettoinventarwert wird ermittelt, indem
sämtliche
Vermögenswerte
addiert
und
anschließend davon sämtliche Verbindlichkeiten
des
Investmentfonds
(insbesondere
einschließlich
Gebühren
(einschließlich
Beratungsund
leistungsabhängigen
Gebühren), die
an den
Berater
des
Investmentfonds, den Administrator, die Bank
oder die Verwahrstelle des Investmentfonds
gezahlt werden, von Darlehensaufnahmen,
Vermittlungsgebühren, Steuerzahlungen (soweit
geleistet), Wertberichtigungen für bedingte
Verbindlichkeiten und sämtlichen anderen
Kosten und Auslagen, die der Bank oder
Verwahrstelle
des
Basiswerts
bei
ordnungsgemäßer
Durchführung
von
Wertpapieran- und verkäufen oder der
Verwaltung des Investmentfonds entstehen)
The Net Asset Value (NAV) means [the
Investment Fund's net asset value as calculated
and published by the Investment Fund's
administrator in accordance with the relevant
Investment Fund's prospectus and constitutional
documents by adding the value of all the assets
of the Investment Fund and deducting the total
liabilities (including, in particular but not limited
to, any fees (including an advisory fee and an
incentive fee) payable to the Investment Fund's
advisor, the administrator, the banker and
custodian of the Investment Fund, all
borrowings, brokerage fees, provisions for taxes
(if any), allowances for contingent liabilities and
any other costs and expenses reasonably and
properly incurred to the bank or the custodian of
the Investment Fund in effecting the acquisition
or disposal of securities or in administering the
Investment Fund) of the Investment Fund.] [•].]
151
abgezogen werden.] [•].]
Rückzahlungstag
Settlement Date
Der Rückzahlungstag entspricht [•] [dem [•]
Bankgeschäftstag nach (i) dem [maßgeblichen
Bewertungstag] und (ii) im Fall einer Kündigung
durch die Emittentin nach § 7 [•] der
Wertpapierbedingungen
nach
dem
Kündigungstag].]
The Settlement Date means [•] [the [•] Banking
Day after (i) the [relevant Valuation Date] and (ii)
in case of a Termination by the Issuer in
accordance with § 7 [•] of the Conditions of the
Securities, after the Termination Date].]
[Im Fall einer Übernahme- und / oder
Platzierungsprovision gegebenenfalls einfügen:
[in case of an underwriting and / or placing fee
insert, if applicable, the following text:
Übernahmeund
Platzierungsprovision
oder
Underwriting and / or placing fee
oder
The underwriting and / or placing fee equals [•].]
/
Die
Übernahmeund
Platzierungsprovision beträgt [•].]
/
Verfalltag
Expiration Date
Der Verfalltag entspricht [•]. [Falls dieser Tag
kein Berechnungstag in Bezug auf den
Basiswert ist, dann gilt der unmittelbar
[vorangehende] [darauf folgende] Kalendertag,
der ein Berechnungstag in Bezug auf den
Basiswert ist, als der Verfalltag.] [•]
The Expiration Date means [•]. [If this day is not
a Calculation Date in relation to the Underlying
then the immediately [preceding] [succeeding]
relation to the Underlying is deemed to be the
Expiration Date.]
[im Fall einer Verwahrstelle folgenden Text
einfügen:
[in case of a Depositary Agent insert the
following text:
Verwahrstelle
Depositary Agent
Die Verwahrstelle steht für [Clearstream
Banking AG, Frankfurt am Main, (Neue
Börsenstraße 1, 60487 Frankfurt am Main,
Bundesrepublik Deutschland)] [•] oder jeden
Nachfolger in dieser Funktion. ]
The Depositary Agent means [Clearstream
Banking AG, Frankfurt am Main, (Neue
Boersenstraße 1, 60487 Frankfurt am Main,
Federal Republic of Germany)] [•] or any
successor in this capacity.]
Wertpapiere
Securities
Wertpapiere bezeichnet die von der Emittentin
im Umfang des Emissionsvolumens begebenen
[Capital
Protected]
Discount
(Capped)Zertifikate.
Securities means the [Capital Protected]
Discount (Capped) Certificates issued by the
Issuer in the Issue Size.
[im Fall einer Börsennotierung der Wertpapiere
[in case of a listing of the Securities insert the
following text:
Wertpapier-Börse[n]
Security Exchange[s]
Wertpapier-Börse[n]
bezeichnet
[gegebenenfalls Marktsegment einfügen: [•]]
[•]
Security Exchange[s] means [•] [if applicable,
insert segment: [•] ]
Securityholder
steht
für
die
nach
Securityholder means the person acknowledged
152
deutschem
Recht
als
Eigentümer
Wertpapiere anerkannte Personen.
der
by German law as legal owners of the
Securities.
Der Wertpapiergläubiger wird in jeder Hinsicht
seitens
(i)
der
Emittentin,
(ii)
der
Berechnungsstelle, (iii) der Zahlstelle [, (iv) des
Emissionsbegleiters] und [(iv)] [(v)] aller
sonstigen Personen als Berechtigter und
Begünstigter bezüglich der in den Wertpapieren
repräsentierten Rechte behandelt.
The Securityholder shall, for all purposes, be
treated by (i) the Issuer, (ii) the Calculation
Agent, (iii) the Paying Agent [, (iv) the Issuing
Agent] and [(iv)] [(v)] all other persons as the
person entitled to such Securities and the
person entitled to receive the benefits of the
rights represented by such Securities.
Wertpapier-Kenn-Nummer[n]
Security Identification Code[s]:
ISIN: [•] [,] [WKN: [•],] [Common Code: [•],]
[Valor: [•]]
ISIN: [•] [,] [WKN: [•],] [Common Code: [•],]
[Valor: [•]]
Zahlstelle
Paying Agent
Die Zahlstelle bezeichnet [•] [Der Begriff
„Zahlstelle“ umfasst sämtliche Zahlstellen.]
The Paying Agent means [•] [The term “Paying
Agent” shall also refer to all Paying Agents.]
Zahltag bei Emission
Initial Payment Date
Der Zahltag bei Emission bezeichnet [•]. [Bei
Verkürzung
oder
Verlängerung
der
Zeichnungsfrist kann sich der Zahltag bei
Emission entsprechend verschieben.]
The Initial Payment Date means [•]. [In case of
abbreviation or extension of the Subscription
Period the Initial Payment Date may be changed
accordingly.]
[im Fall einer Zeichnungsfrist folgenden Text
einfügen:
[in case of a Subscription Period insert the
following text:
Zeichnungsfrist
Subscription Period
[•]. [Die Emittentin behält sich vor, die
Zeichnungsfrist bei entsprechender Marktlage
zu verkürzen oder zu verlängern.] ]
[•]. [The Issuer reserves the right to earlier close
or to extend the Subscription Period if market
conditions so require.] ]
[gegebenenfalls weitere Ausstattungsmerkmale
und Definitionen der Wertpapiere einfügen: [•]]
[if applicable, insert further key terms and
definitions of the Securities: [•]]
§3
Verzinsung
§3
Interest
Auf die Wertpapiere werden weder Zinsen noch
Dividenden gezahlt.
No interest and no dividends are payable on the
Securities.
§4
Form der Wertpapiere; Übertragbarkeit;
Status
§4
Form of Securities; Transfer; Status
[Werden
die
Wertpapiere
in
einer
Dauerglobalurkunde verbrieft, folgende Absätze
(1) - (2) einfügen:
[in case of Securities represented in a
permanent global note, insert the following
paras. (1) – (2):
(1)
(1)
Die von der Emittentin begebenen, auf
den Inhaber lautenden Wertpapiere sind
durch eine oder mehrere Dauer-InhaberSammelurkunde(n)
(die
153
The bearer Securities issued by the Issuer
are represented in one or more
permanent global bearer document(s) (the
Permanent
Global
Note)
without
Dauerglobalurkunde) ohne Zinsscheine
verbrieft. Effektive Wertpapiere werden
nicht ausgegeben. Der Anspruch auf
Lieferung effektiver Wertpapiere ist
ausgeschlossen.
(2)
Die Dauerglobalurkunde ist bei der
Verwahrstelle hinterlegt. Die Wertpapiere
sind als Miteigentumsanteile an der
Dauerglobalurkunde in Übereinstimmung
mit den CS-Regeln übertragbar und sind
im Effektengiroverkehr ausschließlich in
der
Kleinsten
handelbaren
Einheit
übertragbar. Die Übertragung wird mit
Eintragung der Übertragung in den
Büchern der Clearingstelle wirksam.]
coupons. No definitive Securities will be
issued. The right to request the delivery of
definitive Securities is excluded.
(2)
The Permanent Global Note is deposited
with the Depositary Agent. The Securities
are transferable as co-ownership interests
in the Permanent Global Note in
accordance with the CA Rules and may
be transferred within the collective
securities settlement procedure in the
Minimum Trading Size only. Such transfer
becomes effective upon registration of the
transfer in the records of the Clearing
Agent.]
[Werden die Wertpapiere zunächst in einer
vorläufigen Globalurkunde verbrieft, folgende
Absätze (1) - (2) einfügen:
[in case of Securities which are initially
represented by a temporary global note, insert
the following paras. (1) – (2):
(1)
Die Wertpapiere sind zunächst in einer
vorläufigen
Globalurkunde
(die
Vorläufige
Globalurkunde)
ohne
Zinsscheine verbrieft. Die Vorläufige
Globalurkunde wird am oder nach dem
Austauschtag gegen Nachweis über das
Nichtbestehen
US-wirtschaftlichen
Eigentums, wie in der Vorläufigen
Globalurkunde vorgegeben, für den
Wertpapiergläubiger unentgeltlich ganz
oder teilweise gegen Anteile an einer
Dauerglobalurkunde
(die
Dauerglobalurkunde)
(die
Dauerglobalurkunde und die Vorläufige
Globalurkunde
jeweils
eine
Globalurkunde)
ohne
Zinsscheine
ausgetauscht werden. Die Vorläufige
Globalurkunde
und
die
Dauerglobalurkunde tragen jeweils eine
eigenhändige
Unterschrift
[eines
ordnungsgemäß
bevollmächtigten
Vertreters].
(1)
The Securities are initially represented by
a temporary global security (the
Temporary
Global
Note)
without
coupons. The Temporary Global Note will
be exchangeable, free of charge to the
Securityholder, on or after its Exchange
Date, in whole or in part upon certification
as to non- U.S. beneficial ownership in the
form set out in the Temporary Global Note
for interests in a permanent Global Note
(the Permanent Global Note) (the
Permanent Global Note and the
Temporary Global Note being each
referred to as a Global Note) without
coupons. The Temporary Global Note and
the Permanent Global Note shall each be
signed manually [by one authorised
signatory].
(2)
Austauschtag steht bezüglich einer
Vorläufigen Globalurkunde für den Tag,
der 40 Kalendertage nach ihrem
Emissionstag liegt und an dem Banken
am angegebenen Sitz der Zahlstelle und
am angegebenen Sitz der Clearingstelle
für den Geschäftsverkehr geöffnet sind.]
(2)
Exchange Date means, in relation to a
Temporary Global Note, the day falling 40
calendar days after its Issue Date and
being a day on which banks are open for
business in the city in which the specified
office of the Paying Agent is located and
in the city in which the Clearing Agent is
located.]
(3)
Die Wertpapiere begründen unmittelbare,
unbesicherte und nicht nachrangige
Verbindlichkeiten der Emittentin, die
untereinander und mit allen sonstigen
gegenwärtigen
und
künftigen
unbesicherten und nicht nachrangigen
(3)
The
Securities
constitute
direct,
unsecured
and
unsubordinated
obligations of the Issuer, ranking pari
passu among themselves and with all
other present and future unsecured and
unsubordinated obligations of the Issuer,
154
Verbindlichkeiten
der
Emittentin
gleichrangig sind, ausgenommen solche
Verbindlichkeiten,
denen
aufgrund
zwingender gesetzlicher Vorschriften
Vorrang zukommt.
other than obligations preferred
mandatory provisions of law.
§5
Tilgung; [Umrechnungskurs;]
Vorlegungsfrist
(1)
by
§5
Settlement; [Conversion Rate;] Period of
Presentation
Jedes [Capital Protected] Discount
(Capped) Zertifikat gilt als seitens des
Wertpapiergläubigers am [Bewertungstag]
[Verfalltag] ausgeübt, und die Emittentin
wird, vorbehaltlich einer Marktstörung (§ 8
(3)), bis zum Rückzahlungstag die
Überweisung des Auszahlungsbetrags
bzw. des Kündigungsbetrags (§ 7 [a] [,]
[bzw.] [b] [bzw.] [c] (3)) in der
Auszahlungswährung über die Zahlstelle
zur Gutschrift auf das Konto des jeweils
maßgeblichen Wertpapiergläubigers über
die Clearingstelle veranlassen.
(1)
Each
[Capital
Protected]
Discount
(Capped) Certificate shall be deemed as
exercised by the Securityholder on the
[Valuation Date] [Expiration Date], and the
Issuer will, subject to a Market Disruption
(§ 8 (3)), procure until the Settlement Date
the payment of the Settlement Amount or
of the Termination Amount (§ 7 [a] [,] [or]
[b] [or] [c] [, as the case may be,] (3)), as
the case may be, in the Settlement
Currency to be credited via the Paying
Agent to the account of the relevant
Securityholder via the Clearing Agent.
[im
Fall
einer
erforderlichen
Währungsumrechnung zusätzlich folgenden
Absatz 2 einfügen:
[in case of a required currency conversion add
the following para. 2:
(2)
(2)
Die
Bestimmung
des
Währungsumrechnungskurses für die
erforderliche
Umrechnung
des
Auszahlungsbetrags,
des
Kündigungsbetrags
oder
sonstiger
Zahlungsbeträge
unter
diesen
Bedingungen in die Auszahlungswährung
erfolgt
auf
Grundlage
desjenigen
relevanten [Geld-] [Mittel-] [Brief-] Kurses,
The currency conversion rate used for
converting the Settlement Amount, the
Termination Amount or any other amount
payable under these Conditions, as the
case may be, into the Settlement
Currency shall be determined on the basis
of the relevant [bid] [mean] [ask] rate as
published on
[wie er (i) an dem [Bewertungstag], oder
(ii) im Fall der Kündigung durch die
Emittentin, an dem Tag, auf den das
Kündigungsereignis (§ 7 [a] [,] [bzw.] [b]
[bzw.] [c] (1)) fällt bzw., falls der
letztgenannte Tag kein Bankgeschäftstag
ist, an dem unmittelbar nachfolgenden
Bankgeschäftstag, ]
[(i) [the Valuation Date] or (ii) in case of
Termination by the Issuer, on the day, on
which the Termination Event (§ 7 [a] [,]
[or] [b] [or] [c] [, as the case may be,] (1))
occurs, or if this day is not a Banking Day,
on the immediately succeeding Banking
Day, ]
[wie er an dem Bankgeschäftstag
unmittelbar
folgend
(i)
auf
den
[Bewertungstag] oder (ii) im Fall der
Kündigung durch die Emittentin, auf den
Tag, auf den das Kündigungsereignis (§ 7
[a] [,] [bzw.] [b] [bzw.] [c] (1)) fällt, ]
[the Banking Day immediately succeeding
(i) the [Valuation Date] or (ii) in case of
Termination by the Issuer, the day, on
which the Termination Event (§ 7 [a] [,]
[or] [b] [or] [c] [, as the case may be,] (1))
occurs, ]
von [Reuters] [•] unter [„EUROFX/1“]
[„ECB37“] [•], bzw. auf einer diese Seite
ersetzenden Seite, veröffentlicht wird.
on [Reuters] [•] on page [“EUROFX/1”]
[“ECB37”] [•], or a substitute thereof.
Falls auf dieser Seite voneinander
abweichende [Geld-] [Mittel-] [Brief-]
In case that controversial [bid] [mean]
[ask] rates are or no relevant [bid] [mean]
155
Kurse veröffentlicht werden bzw. kein
entsprechender [Geld-] [Mittel-] [Brief-]
Kurs veröffentlicht wird, ist die Emittentin
berechtigt, einen angemessenen [Geld-]
[Mittel-] [Brief-] Kurs, wie er von einem
vergleichbaren
Anbieter
von
Wirtschaftsdaten (wie zum Beispiel
[Bloomberg] [•]) unter Verwendung einer
vergleichbaren
Berechnungsmethode
veröffentlicht wird, zu verwenden. Die
Entscheidung über die Auswahl der
Wirtschaftsdatenbank steht im billigen
Ermessen der Emittentin nach § 315
BGB.
[ask] rate is published on such page, the
Issuer is entitled to use an appropriate
[bid] [mean] [ask] rate as published by
another comparable provider of financial
information
(e.g.
[Bloomberg]
[•]),
calculated with a similar calculation
methodology. The determination of the
provider of financial information shall be
done at the Issuer‘s reasonable discretion
pursuant to § 315 of the German Civil
Code (BGB).
Sollte der Währungsumrechnungskurs
nicht in der vorgesehenen Art und Weise
festgestellt oder angezeigt werden, ist die
Emittentin berechtigt, als maßgeblichen
Währungsumrechnungskurs einen auf der
Basis der dann geltenden Marktusancen
ermittelten
festzulegen.]
In case that the currency conversion rate
is not determined or quoted in the manner
described above, the Issuer shall be
entitled to identify a currency conversion
rate, determined on the basis of the then
prevailing market customs.]
[3]) Die Emittentin wird von ihrer
Verpflichtung unter diesen Wertpapieren
durch Zahlung des Auszahlungsbetrags,
des
Kündigungsbetrags
oder
der
sonstigen Zahlungsbeträge unter diesen
Bedingungen
in
der
vorstehend
beschriebenen Weise befreit.
([2] [3]) The Issuer will be discharged from its
obligations under the Securities by
payment of the Settlement Amount, the
Termination Amount or of any other
amount payable under these Conditions,
as the case may be, in the way described
above.
([3] [4]) Alle im Zusammenhang mit der Zahlung
des
Auszahlungsbetrags,
des
Kündigungsbetrags oder der sonstigen
Zahlungsbeträge
unter
diesen
Bedingungen
anfallenden
Steuern,
Abgaben und/oder Kosten sind von dem
jeweiligen Wertpapiergläubiger zu tragen
und zu zahlen. Die Emittentin und die
Zahlstelle sind berechtigt, jedoch nicht
verpflichtet,
von
den
an
den
Wertpapiergläubiger zahlbaren Beträgen
zur Begleichung von Steuern, Abgaben,
Gebühren, Abzügen oder sonstigen
Zahlungen den erforderlichen Betrag
einzubehalten oder abzuziehen. Jeder
Wertpapiergläubiger hat die Emittentin
bzw. die Zahlstelle von Verlusten, Kosten
oder sonstigen Verbindlichkeiten, die ihr
in Verbindung mit derartigen Steuern,
Abgaben, Gebühren, Abzügen oder
sonstigen Zahlungen im Hinblick auf die
Wertpapiere
des
jeweiligen
Wertpapiergläubigers
entstehen,
freizustellen.
([3] [4]) All taxes, charges and/or expenses
incurred in connection with the payment of
the Settlement Amount, the Termination
Amount or of any other amount payable
under these Conditions, as the case may
be, shall be borne and paid by the
relevant Securityholder. The Issuer and
the Paying Agent, as the case may be,
are entitled, but not obliged, to withhold or
deduct, as the case may be, from any
amount payable to the Securityholder
such amount required for the purpose of
settlement of taxes, charges, expenses,
deductions or other payments. Each
Securityholder shall reimburse the Issuer
or the Paying Agent, as the case may be,
from any losses, costs or other debts
incurred in connection with these taxes,
charges, expenses, deductions or other
payments related to the Securities of the
relevant Securityholder.
([4] [5]) Die Vorlegungsfrist gemäß § 801 Absatz
1 Satz 1 BGB wird auf zehn Jahre
verkürzt.
([4]
([2]
156
[5]) The period of presentation as
established in § 801 section 1 sentence 1
of the [BGB] [German Civil Code (BGB)]
is reduced to ten years.
([5] [6]) Die Emittentin kann zur Deckung ihrer
Verpflichtungen aus den Wertpapieren
einen Deckungsbestand unterhalten. Der
Deckungsbestand kann dabei nach der
Wahl und dem freien Ermessen der
Emittentin
insbesondere
aus
dem
Basiswert bzw. aus den darin enthaltenen
einzelnen Werten bzw. aus Optionen auf
die vorgenannten Werte bestehen. Den
Wertpapiergläubigern stehen jedoch keine
Rechte oder Ansprüche in Bezug auf
einen etwaigen Deckungsbestand zu.]
([5] [6]) The Issuer may hold a coverage portfolio
to cover its obligations under these
Securities. The coverage portfolio may
comprise the Underlying or the assets
comprised in the Underlying, as the case
may
be,
or
options
on
these
aforementioned assets, at the Issuer’s
option and free discretion. However, the
Securityholders are not entitled to any
rights or claims with respect to any
coverage portfolio.]
[im Fall von Aktien, Edelmetallen, Rohstoffen
oder Zinssätzen als Basiswert, folgenden § 6
einfügen:
[in case of shares, precious metals,
commodities or interest rates as Underlying
§6
Anpassungen; [Nachfolge-Basiswert];
[Ersatz-Handelssystem;] [Ersatz-Börse]
§6
Adjustments; [Successor Underlying];
[Substitute Trading System;] [Substitute
Stock Exchange]
(1)
(2)
Die Emittentin ist bei Vorliegen eines
Potenziellen Anpassungsereignisses (§ 6
(2)) berechtigt, Anpassungen dieser
Bedingungen in der Weise und in dem
Verhältnis
vorzunehmen,
wie
entsprechende Anpassungen im Hinblick
auf die an der
Maßgeblichen
Terminbörse gehandelten Options- und
Terminkontrakte auf [die Aktie][das
Edelmetall][den Rohstoff] [den Zinssatz]
als Basiswert (die Optionskontrakte)
vorgenommen
werden,
sofern
der
nachstehend bezeichnete Stichtag vor
oder auf den Bewertungstag fällt.
(1)
In case of the occurrence of a Potential
Adjustment Event (§ 6 (2)), the Issuer
shall be entitled to effect adjustments to
these Conditions in a manner and relation
corresponding to the relevant adjustments
made with regard to option and futures
contracts on [the share][the precious
metal][the commodity][the interest rate]
used as Underlying traded on the
(the Option Contracts) provided that the
Record Date (as defined below) is prior to
or on the Valuation Date, as the case may
be.
Werden
an
der
Maßgeblichen
Terminbörse
keine
Optionskontrakte
gehandelt, so wird die Emittentin die
Anpassung in der Weise vornehmen, wie
die
Maßgebliche
Terminbörse
sie
vornehmen würde, wenn entsprechende
Optionskontrakte dort gehandelt werden
würden.
If no such Option Contracts are being
Options Exchange, the adjustments may
be effected by the Issuer in a manner as
relevant adjustments would be made by
Exchange if those Option Contracts were
Options Exchange.
Der Stichtag ist der erste Handelstag an
der Maßgeblichen Terminbörse, an dem
die
Optionskontrakte
unter
Berücksichtigung
der
erfolgten
Anpassung gehandelt werden oder
gehandelt
werden
würden,
wenn
entsprechende Optionskontrakte dort
The Record Date will be the first trading
day on the Relevant Futures and Options
Exchange on which the adjusted Option
Contracts on the Underlying are traded on
Exchange or would be traded if those
Ein Potenzielles Anpassungsereignis
bezeichnet jede Maßnahme in Bezug auf
(2)
157
A Potential Adjustment Event means
any measure in relation to [the share] [the
[die Aktie] [das Edelmetall] [den Rohstoff]
[den Zinssatz] als Basiswert, durch die
sich die Maßgebliche Terminbörse zu
einer Anpassung des Basiskurses, der
Kontraktgröße des Basiswerts, der
Bezugsgröße des Basiswerts oder der
Bezugnahme [der] [des] [jeweils] für die
[zuständigen
Börse]
[zuständigen
Handelssystems] veranlasst sieht oder
veranlasst sähe, wenn Optionskontrakte
auf den Basiswert gehandelt werden
würden.
precious metal] [the commodity] [the
interest rate] used as Underlying, which
gives reason, or would give reason, if the
Option Contracts on the Underlying were
Options Exchange to the Relevant
Futures and Options Exchange for an
adjustment to the strike price, the contract
volume of the underlying, the ratio of the
underlying or to the quotation of [the stock
exchange] [trading system], relevant for
price of the underlying.
[Bei
den
Potenziellen
Anpassungsereignissen handelt es sich
insbesondere, aber nicht abschließend,
um
folgende
Maßnahmen,
wobei,
vorbehaltlich von § 6 (3), jedoch die
tatsächliche
oder
hypothetische
Entscheidung
der
Maßgeblichen
Terminbörse maßgeblich ist:
[Potential Adjustment Events are, in
particular, but not limited to, the following
measures, whereas, however, subject to §
6 (3), the de facto or hypothetical decision
of the Relevant Futures and Options
Exchange is decisive:
[im Fall von Edelmetallen oder Rohstoffen
als Basiswert oder folgende Absätze (i)
bis (ii) einfügen:
[in case of precious metals or
commodities as Underlying insert the
following paras. (i) to (ii):
(i)
[Das Edelmetall][Der Rohstoff] als
Basiswert wird [an der] [in dem] für
die Bestimmung des Kurses des
Basiswerts
zuständigen
[Maßgeblichen
Börse]
[Maßgeblichen Handelssystem] in
einer anderen Qualität, in einer
anderen Zusammensetzung (zum
Beispiel
mit
einem
anderen
Reinheitsgrad
oder
anderen
Herkunftsort) oder in einer anderen
Standardmaßeinheit gehandelt.
(i)
[The
precious
metal]
[The
commodity] used as Underlying is
traded [on] [in] the [Relevant Stock
Exchange]
[Relevant
Trading
System] relevant for the calculation
and determination of the Price of
the Underlying in a different quality,
in a different consistency (e.g. with
a different degree of purity or a
different point of origin) or in a
different standard measuring unit.
(ii)
Eintritt eines sonstigen Ereignisses
oder Ergreifen einer sonstigen
Maßnahme, infolge dessen bzw.
derer [das Edelmetall][der Rohstoff]
als Basiswert, wie er [an der] [in
dem] für die Bestimmung des
Kurses des Basiswerts zuständigen
[Maßgeblichen
Börse]
[Maßgeblichen
Handelssystem]
gehandelt wird, eine wesentliche
Veränderung erfährt.]
(ii)
The occurrence of another event or
action, due to which [the precious
metal][the commodity] used as
Underlying, as traded [on] [in] the
[Relevant
Stock
Exchange]
[Relevant Trading System] relevant
for
the
calculation
and
Underlying is materially modified.]
[im Fall von Aktien als Basiswert folgende
Absätze (i) bis (viii) einfügen:
[in case of shares as Underlying insert the
following paras. (i) to (viii):
(i)
(i)
Kapitalerhöhung
der
Aktiengesellschaft, deren Aktie(n)
den Basiswert bildet/bilden (die
Gesellschaft)
durch
Ausgabe
neuer Aktien gegen Einlage unter
158
The stock corporation, the share(s)
of which is/are used as the as
Underlying
(the
Company)
increases its share capital against
deposits/contributions granting a
ihre Aktionäre, Kapitalerhöhung der
Gesellschaft
aus
Gesellschaftsmitteln, Ausgabe von
Schuldverschreibungen
oder
sonstigen
Wertpapieren
mit
Options- oder Wandelrechten auf
Aktien unter Einräumung eines
unmittelbaren oder mittelbaren
Bezugsrechts an ihre Aktionäre.
direct or indirect subscription right
to its shareholders, capital increase
out of the Company’s own funds,
through the issuance of new
shares,
directly
or
indirectly
granting a right to its shareholders
to subscribe for bonds or other
securities with option or conversion
rights to shares.
(ii)
Kapitalherabsetzung
der
Gesellschaft durch Einziehung oder
Zusammenlegung von Aktien der
Gesellschaft. Kein Potenzielles
Anpassungsereignis liegt vor, wenn
die Kapitalherabsetzung durch
Herabsetzung des Nennbetrags der
Aktien der Gesellschaft erfolgt.
(ii)
The Company decreases its share
capital through cancellation or
combination of shares of the
Company. No Potential Adjustment
Event shall occur, if the capital
decrease is effected by way of
reduction of the nominal amount of
the shares of the Company.
(iii)
Ausschüttung
außergewöhnlich
hoher Dividenden, Boni oder
sonstige
Baroder
Sachausschüttungen
(Sonderausschüttungen).
Die
Ausschüttungen von normalen
Dividenden,
die
keine
Sonderausschüttungen
sind,
begründen
kein
Potenzielles
Anpassungsereignis.
Hinsichtlich
der
Abgrenzung
zwischen
normalen
Dividenden
und
Sonderausschüttungen ist die von
der Maßgeblichen Terminbörse
vorgenommene
Abgrenzung
maßgeblich.
(iii)
The Company grants exceptionally
high dividends, boni or other cash
or non-cash distributions (Special
Distributions) to its shareholders.
The
distributions
of
regular
dividends, which do not constitute
Special Distributions, do not create
any Potential Adjustment Event.
With regard to the differentiation
between regular dividends and
Special
Distributions
the
differentiation
made
by
the
Relevant Futures and Options
Exchange shall prevail.
(iv)
Durchführung eines Aktiensplits
(Herabsetzung des Nennbetrags
und entsprechende Vergrößerung
der Anzahl der Aktien ohne
Kapitalveränderung) oder einer
ähnlichen Maßnahme.
(iv)
In case of a stock split (reduction of
the
nominal
amount
and
corresponding increase in the
number of shares without a change
in the share capital) or a similar
measure.
(v)
Angebot gemäß dem Aktien- oder
Umwandlungsgesetz oder gemäß
Rechts an die Aktionäre der
Gesellschaft,
die
Aktien
der
Gesellschaft
in
Aktien
einer
anderen Aktiengesellschaft oder
Altaktien der Gesellschaft in neue
Aktien umzutauschen.
(v)
Law regulating the transformation
of the Company to new shares or to
shares
of
another
stock
corporation.
(vi)
Die
nach
Abgabe
Übernahmeangebots
Wertpapiererwerbs-
(vi)
Take-over of shares of the
95% of the share capital of the
eines
gemäß
und
159
Übernahmegesetz oder gemäß
Rechts erfolgte Übernahme der
Aktien der Gesellschaft durch einen
Aktionär (Hauptaktionär) in Höhe
von
mindestens
95%
des
Grundkapitals.
(vii)
(3)
Company
by
a
shareholder
(Principal Shareholder) in the
course of a tender offer in
accordance with the German
Securities Acquisition and Takeover Act or with any other similar
provision under the jurisdiction
Company.
Ausgliederung
eines
Unternehmensteils der Gesellschaft
in der Weise, dass ein neues
rechtlich
selbstständiges
Unternehmen entsteht oder der
Unternehmensteil von einem dritten
Unternehmen aufgenommen wird,
den Aktionären der Gesellschaft
unentgeltlich
oder
zu
einem
geringeren
Preis
als
dem
Marktpreis Anteile entweder an
dem neuen Unternehmen oder an
dem aufnehmenden Unternehmen
gewährt werden, und für die den
Aktionären gewährten Anteile ein
Markt- oder Börsenpreis festgestellt
werden kann.
(vii)
The Company spins off any part of
the Company so that a new
independent enterprise is created
or any part of the Company is
absorbed by a third company, the
Company’s
shareholders
are
granted shares in the new company
or the absorbing company free of
charge or at a price below the
market price and so that a market
price or price quotation may be
determined for the shares granted
to the shareholders.
(viii) Endgültige
Einstellung
der
Notierung oder des Handels der
Aktien [in dem Maßgeblichen
Maßgeblichen Börse] aufgrund
einer
Verschmelzung
durch
Aufnahme oder Neubildung oder
aus
einem
sonstigen
vergleichbaren
Grund,
insbesondere als Folge eines
Delistings der Gesellschaft. Das
Recht der Emittentin zur Kündigung
gemäß § 7 dieser Bedingungen
bleibt hiervon unberührt.]
(viii)
The quotation of or trading in the
the Relevant Stock Exchange] is
permanently discontinued due to a
merger or a new company
formation, or for any other
comparable reason, in particular as
a result of a delisting of the
Company. The Issuer’s right for
termination in accordance with § 7
[, as the case may be,] of these
Conditions remains unaffected.]
Auf andere als die in dem vorstehenden
Absatz bezeichneten Ereignisse, die
jedoch in ihren werterhöhenden oder
verwässernden Auswirkungen diesen
Ereignissen vergleichbar sind, sind die
beschriebenen Regeln entsprechend
anzuwenden.]
The provisions set out above shall apply
mutatis mutandis to events other than
those mentioned in the paragraph above,
if the concentrative or dilutive effects of
these events are comparable.]
Die
Emittentin
ist
berechtigt,
gegebenenfalls von den durch die
Maßgebliche
Terminbörse
vorgenommenen
Anpassungen
abzuweichen, sofern die Emittentin dies
für erforderlich hält, um Unterschiede
zwischen diesen Wertpapieren und den
an der Maßgeblichen Terminbörse
gehandelten
Optionskontrakten
zu
(3)
160
The Issuer shall be entitled to deviate
from the adjustments made by the
should this be considered by the Issuer as
being necessary in order to account for
existing
differences
between
the
Securities and the Option Contracts
Options Exchange. Irrespective of,
berücksichtigen. Unabhängig davon, ob
und welche Anpassungen zu welchem
Zeitpunkt
tatsächlich
an
der
Maßgeblichen Terminbörse erfolgen,
kann die Emittentin Anpassungen mit dem
Ziel vornehmen, die Wertpapiergläubiger
wirtschaftlich soweit wie möglich so zu
stellen, wie sie vor den Maßnahmen nach
§ 6 (2) standen.
(4)
Wird [die Aktie][das Edelmetall][der
Rohstoff][der Zinssatz]als Basiswert zu
irgendeiner Zeit aufgehoben und/oder
durch einen anderen Wert ersetzt, legen
die Emittentin und die Berechnungsstelle
nach billigem Ermessen (gemäß § 315
BGB bzw. § 317 BGB), sofern die
Emittentin die Wertpapiere nicht gemäß §
7 dieser Bedingungen gekündigt hat,
gegebenenfalls unter Vornahme von
Anpassungen nach dem vorstehenden
Absatz, fest, welcher mit dem bisher
maßgebenden Konzept [der Aktie][des
Edelmetalls][des
Rohstoffs][des
Zinssatzes] als Basiswert vergleichbare
neue Basiswert künftig zugrunde zu legen
ist [der Nachfolge-Basiswert). Der
Nachfolge-Basiswert sowie der Zeitpunkt
der erstmaligen Anwendung werden
unverzüglich gemäß § 11 dieser
whether or how adjustments are de facto
effected by the Relevant Futures and
Options Exchange, the Issuer is entitled to
effect adjustments for the purpose to
reconstitute to the extent possible the
Securityholders’ economic status prior to
the measures in terms of § 6 (2).
(4)
Bezugnahme
auf
den
NachfolgeBasiswert.
(5)
Notierung oder des Handels [der Aktie]
[des
Edelmetalls][des
Rohstoffs][des
Zinssatzes] als Basiswert [in dem
Maßgeblichen Handelssystem][an der
Maßgeblichen
Börse]
und
des
gleichzeitigen Bestehens oder des
[in einem anderen Handelssystem][an
einer anderen Börse] ist die Emittentin
berechtigt,
[ein
solches
anderes
Handelssystem][eine
solche
andere
Börse] durch Bekanntmachung gemäß §
11 dieser Bedingungen als [neues
maßgebliches
Handelssystem
(das
Ersatz-Handelssystem)]
[neue
maßgebliche Börse (die Ersatz-Börse)]
zu bestimmen, sofern die Emittentin die
Wertpapiere nicht gemäß § 7 dieser
Bedingungen gekündigt hat. Im Fall einer
Bedingungen enthaltene Bezugnahme
In the event that [the share][the precious
metal][the commodity][the interest rate]
used as Underlying is terminated and/or
replaced by another underlying, the Issuer
and the Calculation Agent shall, provided
Conditions, determine at their reasonable
BGB), after having made appropriate
adjustments according to the paragraph
above, which underlying, comparable with
the underlying concept of [the share][the
precious metal] [the commodity] [the
interest rate] used as Underlying shall be
applicable in the future (the Successor
Underlying). The Successor Underlying
and the date it is applied for the first time
shall be published without undue delay in
Underlying
shall,
to
the
extent
(5)
161
If the quotation of or trading in [the
share][the
precious
metal][the
commodity][the interest rate] used as
System][the Relevant Stock Exchange] is
permanently discontinued, however, a
quotation or trading is started up or
maintained [on another trading system][on
another stock exchange], the Issuer shall
be entitled to stipulate such other [trading
system][stock exchange] [as the new
relevant trading system (the Substitute
Trading System)][as new relevant stock
exchange
(the
Substitute
Stock
Exchange)] through publication in
provided that the Issuer has not
terminated the Securities in accordance
with § 7 of these Conditions. In case of
such a substitution any reference in these
Conditions to [the Relevant Trading
System][the Relevant Stock Exchange]
[auf das Maßgebliche Handelssystem]
[auf die Maßgebliche Börse] fortan als
Bezugnahme
auf
[das
ErsatzHandelssystem][die Ersatz-Börse]. Die
vorgenannte Anpassung wird spätestens
nach Ablauf [eines] [•] Monats nach der
endgültigen Einstellung der Notierung
oder des Handels des Basiswerts [in dem
Maßgeblichen Handelssystem][an der
Maßgeblichen Börse] gemäß § 11 dieser
thereafter shall be deemed to refer to [the
Substitute Trading System][the Substitute
Stock
Exchange].
The
adjustment
described above shall be published in
upon the expiry of [one] [•] month
the quotation of or trading in the
System][the Relevant Stock Exchange] at
the latest.
(6)
BGB) bzw. von der Berechnungsstelle
BGB),
unter
Berücksichtigung
der
unter
Wahrung
des
bisherigen
wirtschaftlichen
Ergebnisses
der
Wertpapiere
vorgenommen.
In
Zweifelsfällen über (i) die Anwendung der
Anpassungsregeln der Maßgeblichen
Terminbörse
und
(ii)
die
jeweils
vorzunehmende Anpassung entscheidet
die Emittentin über die Anwendung der
Anpassungsregeln
nach
billigem
Ermessen (gemäß § 315 BGB), unter
Berücksichtigung
der
herrschenden
Marktgegebenheiten.
(6)
Any adjustment shall be done at
reasonable discretion of the Issuer
(pursuant to § 315 of the BGB) or, as the
case may be, of the Calculation Agent
(pursuant to § 317 of the BGB), under
consideration of the market conditions
then prevailing and protecting the
previous economic development of the
Securities. The Issuer reserves the right
Issuer‘s reasonable discretion (pursuant
to § 315 of the BGB), considering the
market conditions then prevailing.
(7)
Anpassungen und Festlegungen nach
den vorstehenden Absätzen werden
durch die Emittentin nach billigem
Ermessen (gemäß § 315 BGB) bzw. von
der Berechnungsstelle nach billigem
Ermessen (gemäß § 317 BGB),
vorgenommen und von der Emittentin
gemacht.
Anpassungen
und
Festlegungen sind (sofern nicht ein
offensichtlicher Fehler vorliegt) für alle
Beteiligten endgültig und bindend.
(7)
Conditions.
Any
adjustment
and
(8)
Anpassungen und Festlegungen treten zu
dem Zeitpunkt in Kraft, zu dem
entsprechende Anpassungen an der
Maßgeblichen Terminbörse in Kraft treten
oder in Kraft treten würden, wenn
entsprechende Optionskontrakte dort
gehandelt werden würden.]
(8)
Any adjustment and determination will
become effective as of the time at which
the relevant adjustments become effective
on the Relevant Futures and Options
Exchange or would become effective, if
the Option Contracts were traded on the
[Im Fall von nicht börsennotierten Wertpapieren
als Basiswert folgenden § 6:
[In case of non-listed securities as Underlying
§6
Anpassungen; [Nachfolge-Basiswert ];
Ersatz-Handelssystem
§6
Adjustments; [Successor Underlying];
Substitute Trading System
162
(1)
Sind
die
Emittentin
und
die
Berechnungsstelle
nach
Ausübung
billigen Ermessens (gemäß § 315 BGB
bzw. § 317 BGB) der Ansicht, dass eine
erhebliche
Änderung
der
Marktbedingungen an dem für die
Bestimmung des Kurses des nicht
börsennotierten
Wertpapiers
als
Basiswert zuständigen Maßgeblichen
Handelssystem eingetreten ist, ist die
Emittentin
berechtigt,
Anpassungen
dieser Bedingungen in der Weise und in
dem Verhältnis vorzunehmen, um den
geänderten Marktbedingungen Rechnung
zu tragen.
(1)
BGB), a material change in the market
conditions occurred in relation to the
Relevant Trading System relevant for the
calculation and determination of the Price
of the non-listed security used as
Underlying, the Issuer shall be entitled to
effect adjustments to these Conditions to
count for these changed market
conditions.
(2)
Veränderungen in der Berechnung
(einschließlich Bereinigungen) des nicht
börsennotierten
Wertpapiers
als
Basiswert
führen
nicht
zu
einer
Anpassung, es sei denn, dass das maßgebende Konzept und die Berechnung
des Basiswerts infolge einer Veränderung
(einschließlich einer Bereinigung) nach
Berechnungsstelle
nach
billigem
BGB) nicht mehr vergleichbar sind mit
dem bisher maßgebenden Konzept oder
der maßgebenden Berechnung des
Basiswerts. Eine Anpassung kann auch
bei Aufhebung des Basiswerts und/oder
seiner Ersetzung durch einen anderen
Basiswert erfolgen.
(2)
Any changes in the calculation (including
corrections) of the non-listed security
used as Underlying, shall not lead to an
adjustment unless the Issuer and the
Calculation Agent, upon exercise of their
of the BGB or, as the case may be, § 317
of the BGB) determine that the underlying
concept and the calculation (including
corrections) of the Underlying are no
longer comparable to the underlying
concept or calculation of the Underlying
applicable prior to such change.
Adjustments may also be made as a
result of the termination of the Underlying
and/or its substitution by another
underlying.
Zum Zweck einer Anpassung ermitteln die
Emittentin und die Berechnungsstelle
BGB bzw. § 317 BGB) einen angepassten
Wert je Einheit des nicht börsennotierten
Wertpapiers als Basiswert, der bei der
Regelung entspricht, und bestimmen
unter Berücksichtigung des Zeitpunktes
der Veränderung den Tag, zu dem der
angepasste Wert je Einheit des nicht
börsennotierten
Wertpapiers
als
Basiswert erstmals zugrunde zu legen ist.
Der angepasste Wert je Einheit des
Basiswerts sowie der Zeitpunkt seiner
erstmaligen
Anwendung
werden
(3)
Wird das nicht börsennotierte Wertpapier
als Basiswert zu irgendeiner Zeit
aufgehoben
und/oder
durch
einen
anderen Wert ersetzt, legen die Emittentin
For the purpose of making any
adjustment, the Issuer and the Calculation
Agent shall at their reasonable discretion
(pursuant to § 315 of the BGB or, as the
case may be, § 317 of the BGB)
determine an adjusted value per unit of
the non-listed security used as Underlying
as the basis of the determination of the
price of the Underlying, which in its result
corresponds with the economic result
prior to this change, and shall, taking into
account the time the change occurred,
determine the day, on which the adjusted
value per unit of the non-listed security
used as Underlying shall apply for the first
time. The adjusted value per unit of the
Conditions.
(3)
163
In the event that the non-listed security
used as Underlying is terminated and/or
replaced by another underlying, the Issuer
and the Calculation Agent shall, provided
BGB) und die Berechnungsstelle nach
billigem Ermessen (gemäß § 317 BGB),
sofern die Emittentin die Wertpapiere
gekündigt hat, gegebenenfalls unter
Vornahme von Anpassungen nach dem
vorstehenden Absatz, fest, welcher mit
dem bisher maßgebenden Konzept des
nicht börsennotierten Wertpapiers als
Basiswert vergleichbare neue Basiswert
künftig zugrunde zu legen ist ( der
Nachfolge-Basiswert). Der NachfolgeBasiswert sowie der Zeitpunkt der
erstmaligen
Anwendung
werden
Conditions, determine at the reasonable
discretion of the Issuer (pursuant to § 315
of the BGB) or, as the case may be, of the
Calculation Agent (pursuant to § 317 of
the BGB), after having made appropriate
adjustments according to the paragraph
above, which underlying, comparable with
the underlying concept of the non-listed
security used as Underlying shall be
applicable in the future ( the Successor
Bezugnahme
auf
den
NachfolgeBasiswert.
Underlying
shall,
to
the
extent
(4)
Notierung oder des Handels des nicht
börsennotierten
Wertpapiers
als
Basiswert
in
dem
Maßgeblichen
Handelssystem und des gleichzeitigen
Bestehens oder des Beginns der
Notierung oder des Handels in einem
anderen Handelssystem ist die Emittentin
berechtigt,
ein
solches
anderes
Handelssystem durch Bekanntmachung
neues maßgebliches Handelssystem (das
Ersatz-Handelssystem) zu bestimmen,
sofern die Emittentin die Wertpapiere
gekündigt hat. Im Fall einer solchen
Ersetzung gilt jede in diesen Bedingungen
enthaltene
Bezugnahme
auf
das
Maßgebliche Handelssystem fortan als
Bezugnahme
auf
das
ErsatzHandelssystem.
Die
vorgenannte
Anpassung wird spätestens nach Ablauf
[eines] [•] Monats nach der endgültigen
Einstellung der Notierung oder des
Handels des Basiswerts in dem
Maßgeblichen Handelssystem gemäß §
(4)
If the quotation of or trading in the nonlisted security used as Underlying in the
Relevant Trading System is permanently
discontinued, however, a quotation or
trading is started up or maintained on
another trading system, the Issuer shall
be entitled to stipulate such other trading
system as the new relevant trading
system ( the Substitute Trading System)
through publication in accordance with §
11 of these Conditions, provided that the
Issuer has not terminated the Securities in
In case of such a substitution any
reference in these Conditions to the
Relevant Trading System thereafter shall
be deemed to refer to the Substitute
Trading
System.
The
adjustment
described above shall be published in
upon the expiry of [one] [•] month
the quotation of or trading in the
Underlying in the Relevant Trading
System at the latest.
(5)
BGB),
unter
Berücksichtigung
der
unter Wahrung des bisherigen
wirtschaftlichen
Ergebnisses
der
(5)
164
Wertpapiere
vorgenommen.
In
Terminbörse
und
(ii)
die
jeweils
Anpassungsregeln
nach
billigem
unter
Berücksichtigung
der
herrschenden
Marktgegebenheiten.
(6)
Ermessen (gemäß §
317
BGB),
gemacht.
Anpassungen
und
Beteiligten endgültig und bindend.]
Basiswert § 6 einfügen:
als
(6)
Conditions.
Any
adjustment
and
Underlying insert the following § 6:
§6
Anpassungen; Nachfolge-Basiswert; ErsatzDevisenmarkt
rates
as
§6
Adjustments; Successor Underlying;
Substitute Exchange Market
(1)
Sind
die
Emittentin
und
die
Berechnungsstelle
nach
Ausübung
erhebliche
Änderung
der
Marktbedingungen an dem für die
Bestimmung
des
Kurses
des
Währungswechselkurses als Basiswert
zuständigen Maßgeblichen Devisenmarkt
eingetreten ist, ist die Emittentin
berechtigt,
Anpassungen
dieser
Bedingungen vorzunehmen, um den
geänderten Marktbedingungen Rechnung
zu tragen.
(1)
BGB), a material change in the market
conditions occurred in relation to the
Relevant Exchange Market relevant for
price of the currency exchange rate used
as Underlying, the Issuer shall be entitled
to effect adjustments to these Conditions
to count for these changed market
conditions.
(2)
(einschließlich
Bereinigungen)
des
oder
der
Zusammensetzung
oder
Gewichtung der Kurse oder anderer
Bezugsgrößen, auf deren Grundlage der
als
Basiswert
Anpassung, es sei denn, dass das
maßgebende
Konzept
und
die
Berechnung des Basiswerts infolge einer
Veränderung
(einschließlich
einer
Bereinigung) nach Auffassung
der
Emittentin und der Berechnungsstelle
(2)
corrections) of the currency exchange rate
used as Underlying or of the composition
or of the weighting of the prices or other
reference assets, which form the basis of
the calculation of the currency exchange
rate used as Underlying, shall not lead to
an adjustment unless the Issuer and the
Calculation Agent, upon exercise of their
of the BGB), determine that the underlying
concept and the calculation (including
corrections) of the Underlying are no
165
(3)
BGB bzw. § 317 BGB) nicht mehr
vergleichbar sind mit dem bisher
maßgebenden
Konzept
oder
der
maßgebenden
Berechnung
des
Währungswechselkurses als Basiswert.
Eine
Anpassung
kann
auch
bei
Aufhebung des Basiswerts und/oder
seiner Ersetzung durch einen anderen
Basiswert erfolgen.
longer comparable to the underlying
concept or calculation of the currency
exchange rate used as Underlying
applicable prior to such change.
underlying.
Wert
je
Einheit
des
Währungswechselkurses als Basiswert ,
der bei der Bestimmung des Kurses des
Basiswerts zugrunde gelegt wird und in
seinem wirtschaftlichen Ergebnis der
bisherigen Regelung entspricht, und
bestimmen unter Berücksichtigung des
Zeitpunktes der Veränderung den Tag, zu
dem der angepasste Wert je Einheit des
erstmals zugrunde zu legen ist. Der
angepasste
Wert
je
Einheit
des
Basiswerts sowie der Zeitpunkt seiner
erstmaligen
Anwendung
werden
adjustments
the
Issuer
and
the
Calculation Agent shall at their reasonable
or, as the case may be, § 317 of the BGB)
Underlying as the basis of the
determination of the price of the
of the currency exchange rate used as
Underlying shall apply for the first time.
The adjusted value per unit of the
Conditions.
Wird eine im Zusammenhang mit einem
als
Basiswert
verwendete Währung in ihrer Funktion als
gesetzliches Zahlungsmittel des Landes
oder der Rechtsordnung bzw. der Länder
oder Rechtsordnungen, welche die
Behörde,
Institution
oder
sonstige
Währung ausgibt, durch eine andere
Währung ersetzt oder mit einer anderen
Währung
zu
einer
gemeinsamen
Währung verschmolzen, so wird, sofern
die Emittentin die Wertpapiere nicht
gemäß § 7 dieser Bedingungen gekündigt
hat, die im Zusammenhang mit einem
als
Basiswert
verwendete betroffene Währung für die
Zwecke dieser Bedingungen durch die
andere bzw. gemeinsame Währung,
gegebenenfalls
unter
Vornahme
entsprechender Anpassungen nach dem
vorstehenden Absatz, ersetzt ( der
Nachfolge-Basiswert). Der NachfolgeBasiswert sowie der Zeitpunkt der
erstmaligen
Anwendung
werden
Bedingungen bekannt gemacht. Jede in
(3)
166
In the event that a currency used in
relation to the currency exchange rate
used as Underlying is, in its function as
legal tender, in the country or jurisdiction,
or countries or jurisdictions, maintaining
the authority, institution or other body
which issues such currency, replaced by
another currency, or merged with another
currency to become a common currency,
the currency used in connection with the
Underlying is, provided that the Issuer has
not
terminated
the
Securities
in
for the purposes of these Conditions
replaced, if applicable, after having made
appropriate adjustments according to the
paragraph above, by such replacing or
merged currency ( the Successor
Underlying
shall,
to
the
extent
diesen
Bedingungen
enthaltene
Bezugnahme
auf
den
NachfolgeBasiswert.
(4)
Notierung oder des Handels einer im
Zusammenhang
mit
dem
als
Basiswert
verwendeten
Währung
in
dem
Maßgeblichen Devisenmarkt und des
gleichzeitigen Bestehens oder des
in
einem
anderen
internationalen
Devisenmarkt ist die Emittentin berechtigt,
einen solchen anderen internationalen
Devisenmarkt durch Bekanntmachung
neuen
maßgeblichen
internationalen
Devisenmarkt (der Ersatz-Devisenmarkt)
zu bestimmen, sofern die Emittentin die
Wertpapiere nicht gemäß § 7 dieser
Bedingungen gekündigt hat. Im Fall einer
Bedingungen enthaltene Bezugnahme auf
den Maßgeblichen Devisenmarkt fortan
als Bezugnahme auf den ErsatzDevisenmarkt.
Die
vorgenannte
Anpassung wird spätestens nach Ablauf
[eines] [•] Monats nach der endgültigen
Einstellung der Notierung oder des
Handels der im Zusammenhang mit dem
als
Basiswert
verwendeten
Währung
in
dem
Maßgeblichen Devisenmarkt gemäß § 11
dieser Bedingungen bekannt gemacht.
(4)
currency used in connection with the
Underlying on the Relevant Exchange
Market is permanently discontinued,
however, a quotation or trading is started
up or maintained on another international
foreign exchange market, the Issuer shall
be entitled to stipulate such other
international foreign exchange market as
the new relevant international foreign
exchange
market
(the
Substitute
Exchange Market) through publication in
provided that the Issuer has not
terminated the Securities in accordance
with § 7 of these Conditions. In case of
such a substitution any reference in these
Conditions to the Relevant Exchange
Market thereafter shall be deemed to refer
to the Substitute Exchange Market. The
adjustment described above shall be
published in accordance with § 11 of
these Conditions upon the expiry of [one]
[•] month following the permanent
discontinuation of the quotation of or
trading in the currency used in connection
with the currency exchange rate used as
Underlying on the Relevant Exchange
Market, at the latest.
(5)
BGB),
unter
Berücksichtigung
der
unter Wahrung des bisherigen
wirtschaftlichen
Ergebnisses
der
Wertpapiere
vorgenommen.
In
Terminbörse
und
(ii)
die
jeweils
Anpassungsregeln
nach
billigem
Ermessen (gemäß § 315 BGB), unter
Berücksichtigung
der
herrschenden
Marktgegebenheiten.
(5)
(6)
(6)
167
317
BGB),
gemacht.
Anpassungen
und
Conditions.
Any
adjustment
and
[im Fall eines Index als Basiswert folgenden § 6
einfügen:
following § 6:
§6
Anpassungen; Nachfolge-Index Sponsor;
Nachfolge-Basiswert
§6
Adjustments; Successor Index Sponsor;
Successor Underlying
(1)
Sollte der Index als Basiswert endgültig
nicht mehr vom Index Sponsor verwaltet,
berechnet und veröffentlicht werden, ist
die Emittentin berechtigt, den Index
Sponsor durch eine Person, Gesellschaft
oder
Institution,
die
für
die
Berechnungsstelle und die Emittentin
BGB bzw. § 317 BGB) akzeptabel ist (der
Nachfolge-Index Sponsor), zu ersetzen.
(1)
In diesem Fall gilt dieser Nachfolge-Index
Sponsor als Index Sponsor und jede in
diesen
Bedingungen
enthaltene
Bezugnahme auf den Index Sponsor als
Bezugnahme auf den Nachfolge-Index
Sponsor.
(2)
(einschließlich
Bereinigungen)
des
Basiswerts oder der Zusammensetzung
oder Gewichtung der Indexbestandteile,
auf deren Grundlage der Basiswert
Anpassung, es sei denn, dass das
maßgebende
Konzept
und
die
Berechnung des Basiswerts infolge einer
Veränderung
(einschließlich
einer
Bereinigung) nach
Auffassung
der
Emittentin und der Berechnungsstelle
BGB bzw. § 317 BGB) nicht mehr
vergleichbar sind mit dem bisher
maßgebenden
Konzept
oder
der
maßgebenden Berechnung des Index als
Basiswert. Dies gilt insbesondere, wenn
sich aufgrund irgendeiner Änderung trotz
gleich bleibender Kurse der in dem Index
enthaltenen
Einzelwerte
und
ihrer
Gewichtung eine wesentliche Änderung
des Werts des Index als Basiswert ergibt.
Eine
Anpassung
kann
auch
bei
If the Index used as Underlying is
definitively not maintained, calculated and
published by the Index Sponsor anymore,
the Issuer shall be entitled to replace the
Index Sponsor by a person, company or
institution, which is acceptable to the
Calculation Agent and the Issuer at their
of the BGB) (the Successor Index
Sponsor).
In such case, the Successor Index
Sponsor will be deemed to be the Index
Sponsor and each reference in these
Conditions to the Index Sponsor shall be
deemed to refer to the Successor Index
Sponsor.
(2)
168
corrections) of the Underlying or of the
Index components, on which the
calculation of the Underlying is based,
shall not lead to an adjustment unless the
Issuer and the Calculation Agent, upon
exercise of their reasonable discretion
case may be, § 317 of the BGB),
determine that the underlying concept and
the calculation (including corrections) of
the Underlying are no longer comparable
to the underlying concept or calculation of
the Index used as the Underlying
applicable prior to such change. This
applies especially, if due to any change
the Index value changes considerably,
although the prices and weightings of the
components included in the Index used as
the Underlying remain unchanged.
Aufhebung des Index als Basiswert
und/oder seiner Ersetzung durch einen
anderen Basiswert erfolgen.
underlying.
Wert je Einheit des Index als Basiswert,
der bei der Bestimmung des Kurses des
Basiswerts zugrunde gelegt wird und in
seinem wirtschaftlichen Ergebnis der
bisherigen Regelung entspricht, und
bestimmen unter Berücksichtigung des
Zeitpunktes der Veränderung den Tag, zu
dem der angepasste Wert je Einheit des
Index als Basiswert erstmals zugrunde zu
legen ist. Der angepasste Wert je Einheit
des Basiswerts sowie der Zeitpunkt seiner
erstmaligen
Anwendung
werden
adjustments
the
Issuer
and
the
Calculation Agent shall at their reasonable
the Index used as Underlying as the basis
of the determination of the price of the
of the Index used as Underlying shall
apply for the first time. The adjusted value
per unit of the Underlying as well as the
date of its first application shall be
published without undue delay pursuant to
§ 11 of these Conditions.
(3)
Erlischt die Erlaubnis [der Emittentin]
[und] [oder] [der Berechnungsstelle], den
Index als Basiswert für die Zwecke der
Wertpapiere zu verwenden oder wird der
Index als Basiswert aufgehoben und/oder
durch einen anderen Index ersetzt, legen
BGB bzw. § 317 BGB), gegebenenfalls
unter entsprechender Anpassung nach
dem vorstehenden Absatz, fest, welcher
Index künftig zugrunde zu legen ist ( der
Nachfolge-Basiswert. Der NachfolgeBasiswert sowie der Zeitpunkt der
erstmaligen
Anwendung
werden
(3)
In the event that the authorisation [of the
Issuer] [and] [or] [of the Calculation Agent]
to use the Index used as Underlying for
the purposes of the Securities is
terminated or that the Index used as
Underlying is terminated and/or replaced
by another index, the Issuer and the
Calculation Agent shall determine at their
of the BGB), after having made
appropriate adjustments according to the
paragraph above, which index shall be
applicable in the future ( the Successor
Underlying. The Successor Underlying
(4)
Ist nach Ansicht der Emittentin und der
Berechnungsstelle,
nach
billigem
BGB), eine Anpassung oder die
Festlegung eines Nachfolge-Basiswerts,
aus welchen Gründen auch immer, nicht
möglich, werden die Emittentin und die
Berechnungsstelle
nach
billigem
BGB) für die Weiterrechnung und
Veröffentlichung des Index als Basiswert
auf der Grundlage des bisherigen
Indexkonzeptes
und
des
letzten
festgestellten Werts des Index Sorge
tragen. Eine derartige Fortführung wird
(4)
If, in the opinion of the Issuer and the
BGB), an adjustment or the determination
of a Successor Underlying is not possible,
for whatsoever reason, the Issuer and the
Calculation
Agent
shall,
at
their
of the BGB) provide for the continued
calculation and publication of the Index
used as Underlying on the basis of the
existing Index concept and the last
determined value of the Index. Any such
continuation shall be published without
169
Conditions.
(5)
317
BGB),
gemacht.
Anpassungen
und
(5)
Conditions.
Any
adjustment
and
(6)
(6)
[in case of a fund unit as Underlying, as the
case may be, insert the following § 6:
§6
Anpassungen; Nachfolge-Basiswert
§6
Adjustments; Successor Underlying
(1)
(2)
Bei Eintritt oder dem wahrscheinlichen
Eintritt eines Ersetzungsgrundes (§ 6 (2))
in Bezug auf den Fondsanteil als
Basiswert können die Emittentin und die
Berechnungsstelle, wenn sie nach
billigem Ermessen (gemäß § 315 BGB
bzw. § 317 BGB) der Ansicht sind, dass
dieser Grund wesentlich ist und sich
nachteilig auf den Basiswert oder die
Berechnung des NAV des Fondsanteils
als Basiswert auswirkt,
(1)
If a Replacement Event (§ 6 (2)) in
respect of the Fund Unit used as
Underlying occurs or is likely to occur, the
Issuer and the Calculation Agent may, if
they determine at their reasonable
BGB), that such event is material and
adversely affects the Underlying or the
calculation of the NAV of the Fund Unit
used as Underlying,
(i)
einen anderen Investmentfonds,
der nach Ansicht der Emittentin und
der
Berechnungsstelle
bei
Ausübung
billigen
Ermessens
(gemäß § 315 BGB bzw. § 317
BGB) eine ähnliche Strategie und
Liquidität aufweist ( der NachfolgeBasiswert), auswählen und/oder
(i)
select an alternative investment
fund, which the Issuer and the
Calculation Agent determine at their
may be, § 317 of the BGB) to have
a similar strategy and liquidity ( the
Successor Underlying) and/or
(ii)
Anpassungen
an
Berechnungsmethoden,
Werten
oder Regelungen in Bezug auf die
Wertpapiere vornehmen, die (nach
Ausübung
billigen
Ermessens
BGB) durch den Ersetzungsgrund
erforderlich werden.
(ii)
make any adjustments to any
calculation methods, values or
terms in respect of the Securities
that they determine at their
may be, § 317 of the BGB) to be
necessary to account for such
Replacement Event.
Ersetzungsgrund bezeichnet einen der
folgenden Umstände:
[(a)
Die
Anlagestrategie
oder
(2)
das
170
Replacement Event means any of the
following:
[(a)
The
investment
strategy
or
Anlageziel des Investmentfonds
(die Strategie) weicht wesentlich
von
der
Strategie
am
[Emissionstag]
[Festlegungstag]
Basiswert
nach
diesen
oder von der Strategie, die in dem
Verkaufsprospekt oder anderen im
Zusammenhang
mit
der
Vermarktung des Investmentfonds
erstellten Unterlagen (zusammen
die Unterlagen) beschrieben wird,
investment
objective
of
an
Investment Fund (the Strategy)
differs substantially from the
Strategy at the [Issue Date] [Fixing
Underlying
was
adjusted
in
Strategy outlined in the prospectus
or other documents prepared in
connection with the marketing of
the Investment Fund (together the
Documents) or from the rules in
[([a] [b]) Die Frequenz, mit welcher ein
Fondsanteil
als
Basiswert
gehandelt werden kann (die
Handelsfrequenz) wird geändert
und
weicht
nun
von
der
Handelsfrequenz
am
[Emissionstag]
[Festlegungstag]
Basiswert
nach
diesen
oder von der Handelsfrequenz, die
in den Unterlagen beschrieben
wird, oder von den Regeln in Bezug
auf den Investmentfonds ab.]
[([a] [b]) The frequency at which the Fund
Unit used as Underlying can be
traded (the Trading Frequency) is
Trading Frequency at the [Issue
Date] [Fixing Date] or the date on
which the Underlying was adjusted
in
accordance
with
these
Conditions, as the case may be, or
from the Trading Frequency
outlined in the Documents or from
the rules in relation to the
Investment Fund.]
[([•]) Die Währung, in der der NAV eines
Investmentfonds veröffentlicht wird,
(die
Währungseinheit)
wird
Währung
am
[Emissionstag]
oder von der Währungseinheit, die
in den Unterlagen beschrieben
wird, oder von den Regeln in Bezug
auf den Investmentfonds ab.]
[([•]) The currency denomination in
which the NAV of the Investment
Fund is published (the Currency
Denomination) is changed and
now differs from the Currency
Denomination at the [Issue Date]
Currency Denomination outlined in
the Documents or from the rules in
[([•]) Die Frequenz der Veröffentlichung
oder der Zeitraum zwischen
Berechnung und Veröffentlichung
oder die Berechnungsmethode,
jeweils in Bezug auf den NAV (oder
einen vorläufigen oder geschätzten
NAV) (die NAV-Frequenz) wird
NAV-Frequenz am [Emissionstag]
oder von der NAV-Frequenz, die in
von oder den Regeln in Bezug auf
[([•]) In respect of the NAV (or any
preliminary or estimated NAV) the
frequency of publication or the time
delay between calculation and
publication or the calculation
method (the NAV Frequency) is
NAV Frequency at the [Issue Date]
NAV Frequency outlined in the
171
[([•]) Der
Investmentfonds
führt
Gebühren oder Kosten, die dem
Vermögen des Investmentfonds
belastet werden, ein oder erhöht
diese
bzw.
führt
einen
Ausgabeaufschlag
oder
eine
Rücknahmegebühr ein.]
[([•]) The Investment Fund introduces or
increases charges or fees payable
out of the assets of the Investment
Fund or charges a subscription fee
or redemption fee.]
[([•]) Der Betrieb oder die Organisation
des Investmentfonds (insbesondere
Struktur,
Verfahren
oder
Richtlinien) oder die Anwendung
solcher Verfahren oder Richtlinien
hat
sich
gegenüber
dem
[Emissionstag]
[Festlegungstag]
Basiswert
nach
diesen
geändert.]
[([•]) The operation or organisation of the
Investment Fund (including, without
limitation, structure, procedures or
policies) or the application of such
procedures or policies has changed
from that at the [Issue Date] [Fixing
Underlying
was
adjusted
in
[([•]) Die
aufsichtsrechtliche
oder
steuerliche Behandlung in Bezug
auf den Investmentfonds ändert
sich.]
[([•]) The regulatory or tax treatment
applicable with respect to the
Investment Fund is changed.]
[([•]) Die Anzahl von Anteilen des
oder Anteilklassen, die ein Investor
halten darf, wird aufgrund Gesetzes
oder behördlicher Maßnahmen
beschränkt.]
[([•]) The restriction by law or regulatory
measures of the holding of units of
the Investment Fund, its sub-funds
and/or its unit classes, if any, that
may be held by an investor in the
Investment Fund.]
[([•]) Jede
Aussetzung
oder
Beschränkung des Handels in dem
Fondsanteil, der als Basiswert
verwendet
wird,
(wegen
Liquiditätsbeschränkungen
oder
aus anderen Gründen), soweit
diese nicht bereits zuvor an dem
[Emissionstag]
[Festlegungstag]
bzw. zu dem Tag, zu dem der
Basiswert
nach
diesen
bestanden, wie in den Regeln in
Bezug auf den Investmentfonds
beschrieben.]
[([•]) Any suspension of or limitation
imposed on trading in the Fund Unit
used as Underlying (by reason of
liquidity restrictions or otherwise)
other than those existing on the
[Issue Date] [Fixing Date] or the
date on which the Underlying was
adjusted in accordance with these
Conditions, as the case may be, as
laid out in the rules in relation to the
Investment Fund.]
[([•]) Der Investmentfonds verlangt, dass
ein (beliebiger) Investor seine
Anteile
ganz
oder
teilweise
zurückgibt.]
[([•]) The Investment Fund requires a
partial or whole redemption of units
from any of the investors in the
Investment Fund.]
[([•]) Es wird erwartet, dass ein
beliebiger Investor bei einer
Rückgabe der Anteile an dem
Investmentfonds nicht den vollen
Erlös (Rückkaufwert) innerhalb der
üblichen, unter den in den
[([•]) It is expected that upon redemption
of units any investor in the
Investment Fund does not receive
the full proceeds (redemption
value) within the regular period for
redemption payments applicable
172
Dokumenten dargelegten normalen
Marktbedingungen anwendbaren,
Zahlungsfrist
für
Rücknahmen
erhalten würde.]
under normal market conditions set
out in the Documents.]
Investment Manager unterliegt der
Liquidation, Auflösung, Einstellung
oder Zwangsvollstreckung, oder der
Investment Manager deutet an,
dass die Strategie nicht eingehalten
werden wird oder beabsichtigt,
empfiehlt
oder
initiiert
die
Liquidation,
Auflösung
oder
Einstellung des Investmentfonds.]
investment manager is or becomes
subject to liquidation, dissolution,
discontinuance or execution, or the
investment manager indicates that
the Strategy will not be met or
proposes, recommends or initiates
the liquidation, dissolution or
discontinuance of the Investment
Fund.]
Investment
Manager
oder
Angestellte von diesen unterfallen
der
Überwachung
oder
Untersuchung einer Aufsichts- oder
sonstigen Behörde oder werden
unter Anklage oder Strafverfolgung
gestellt.]
investment manager or any of their
employees are placed under review
or investigation by any regulatory or
other authority or are subject to any
charges or prosecution.]
Investment Manager wird Partei
einer
gerichtlichen
oder
außergerichtlichen
Auseinandersetzung.]
investment manager becomes party
to any litigation or dispute.]
[([•]) Der
Administrator
des
Investmentfonds versäumt es, den
NAV wie vorgesehen zu berechnen
oder zu veröffentlichen oder
versäumt es, andere Informationen
bezüglich des Investmentfonds zu
veröffentlichen, die nach den
Regeln oder den Unterlagen zu
veröffentlichen wären.]
[([•]) The
Investment
Fund's
administrator fails to calculate or
publish the NAV as scheduled or
fails
to
publish
any
other
information
relating
to
the
Investment Fund to be published in
accordance with its rules or the
Documents.]
[([•]) Ein von einem Wirtschaftsprüfer
geprüfter NAV weicht von dem
veröffentlichten NAV ab, oder die
Wirtschaftsprüfer
des
Investmentfonds versehen ihren
Bericht
in
Bezug
auf
den
Investmentfonds oder einen NAV
mit Einschränkungen oder weigern
sich, einen uneingeschränkten
Bericht abzugeben.]
[([•]) The audited NAV differs from the
published NAV, or the auditors of
the Investment Fund qualify any
audit report or refuse to provide an
unqualified audit report in respect of
the Investment Fund or the NAV.]
[([•]) Versäumnis
des
Investment
Managers des Investmentfonds, in
einer angemessenen und zeitnahen
Weise auf einen Verstoß gegen
Verpflichtungen,
Zusicherungen
oder Vereinbarungen aus dem
Anlage Managementvertrag für den
Investmentfonds zu reagieren.]
[([•]) The investment manager of the
Investment Fund fails to react in an
appropriate and timely manner to
any breach of representations,
covenants and agreements under
the
investment
management
agreement
relating
to
the
Investment Fund.]
173
[([•]) Rücktritt, Kündigung, Aufhebung
der
Registrierung
oder
eine
sonstige Veränderung in Bezug auf
den Investment Manager des
Investmentfonds
oder
eine
Veränderung im Personal des
Investment Managers oder der
Dienstleistungsunternehmen
des
Investmentfonds.]
[([•]) Resignation, termination, loss of
registration or any other change in
respect of the investment manager
of the Investment Fund or any
change in the personnel of the
investment manager or in the
service providers to the Investment
Fund.]
[([•]) Die Beteiligung eines Investors an
Anteilen
des
Investmentfonds,
seiner Teilfonds oder Anteilklassen,
überschreitet 20% der Anteile des
oder Anteilklassen.]
[([•]) An investor's holding of units of the
Investment Fund, its sub-funds
and/or its unit classes, if any,
exceeds 20% of the Investment
Fund, its sub-funds and/or its unit
classes.]
[([•]) [•]]
[([•]) [•]]
Bezugnahme
auf
den
NachfolgeBasiswert.
Underlying shall, to the extent appropriate,
be deemed to refer to the Successor
Underlying.
(3)
gemacht.
Anpassungen
und
(3)
Conditions.
Any
adjustment
and
(4)
(4)
[im Fall einer von Euro abweichenden
Auszahlungswährung gegebenenfalls zusätzlich
folgenden § 6 a einfügen:
[in case of a Settlement Currency other than
Euro add the following § 6 a, where applicable:
§6a
Anpassungen aufgrund der Europäischen
Wirtschafts- und Währungsunion
§6a
Adjustments due to the European Economic
and Monetary Union
(1)
Nimmt ein Land, unabhängig davon, ob
ab 1999 oder später, an der dritten Stufe
der Europäischen Wirtschafts- und
Währungsunion teil, sind die Emittentin
und die Berechnungsstelle berechtigt,
BGB bzw. § 317 BGB) folgende
Anpassungen
dieser
Bedingungen
vorzunehmen:
(1)
174
Where a country participates in the third
stage of the European Economic and
Monetary Union, whether as from 1999 or
after such date, the Issuer and the
BGB), shall be entitled to effect the
following adjustments to these Conditions:
(i)
Ist die Auszahlungswährung unter
diesen Bedingungen eine von Euro
abweichende
nationale
Währungseinheit eines Landes, das
an
der
dritten
Stufe
der
Europäischen Wirtschafts- und
Währungsunion
beteiligt
ist,
unabhängig davon, ob ab 1999
oder
später,
dann gilt
die
Auszahlungswährung
als
ein
Betrag in Euro, der aus der
ursprünglichen
Auszahlungswährung zum rechtlich
festgesetzten Wechselkurs und
unter Anwendung der rechtlich
festgesetzten Rundungsregeln in
Euro umgetauscht wurde.
(i)
Nach der Anpassung erfolgen
sämtliche Zahlungen hinsichtlich
der Wertpapiere in Euro, als ob in
ihnen
der
Euro
als
Auszahlungswährung
genannt
wäre.
Where the Settlement Currency
under these Conditions is the
national currency unit other than
Euro of a country which is
participating in the third stage of the
European Economic and Monetary
Union, whether as from 1999 or
after such date, such Settlement
Currency shall be deemed to be an
amount of Euro converted from the
original Settlement Currency into
exchange rate and subject to such
statutory
applicable
rounding
provisions.
After the adjustment, all payments
in respect of the Securities will be
made solely in Euro as though
references in the Securities to the
Settlement Currency were to Euro.
(ii)
Ist in diesen Bedingungen ein
angegeben
oder
gibt
eine
Bedingung eine Währung (die
Originalwährung) eines Landes
an, das an der dritten Stufe der
Währungsunion
beteiligt
ist,
unabhängig davon, ob ab 1999
oder später, gelten der angegebene
und/oder
sonstige
Währungsangaben
in
diesen
Bedingungen als Angabe in Euro,
oder,
soweit
ein
angegeben ist, als Kurs für den
Umtausch in oder aus Euro unter
Zugrundelegung
des
rechtlich
festgesetzten Wechselkurses.
(ii)
Where these Conditions contain a
currency conversion rate or any of
these Conditions are expressed in
a currency (the Original Currency)
of a country which is participating in
the third stage of the European
Economic and Monetary Union,
whether as from 1999 or after such
date, such currency conversion rate
and/or any other terms of these
Conditions shall be deemed to be
expressed in or, in the case of a
currency conversion rate, converted
for or, as the case may be into,
exchange rate.
(iii)
Die
Emittentin
und
die
Berechnungsstelle können weitere
Änderungen
an
diesen
Bedingungen vornehmen, um diese
ihrer Auffassung nach den dann
gültigen
Gepflogenheiten
anzupassen, die für Instrumente mit
Währungsangaben in Euro gelten.
(iii)
Agent are entitled to effect
they may decide to conform them to
conventions then applicable to
instruments expressed in Euro.
(iv)
Die
Emittentin
und
die
Berechnungsstelle können ferner
solche
Anpassungen
dieser
Bedingungen vornehmen, die sie
(iv)
Agent at their reasonable discretion
(pursuant to § 315 of the BGB or,
as the case may be, § 317 of the
175
nach billigem Ermessen (gemäß §
315 BGB bzw. § 317 BGB) für
angebracht
halten,
um
den
Auswirkungen der dritten Stufe der
Währungsunion
gemäß
dem
Vertrag
zur
Gründung
der
Europäischen Gemeinschaft auf
diese Bedingungen Rechnung zu
tragen.
BGB) shall be entitled to effect such
they may determine to be
appropriate to account for the effect
of the third stage of the European
Economic and Monetary Union
pursuant to the Treaty establishing
the European Community on these
Conditions.
(2)
Die Emittentin und die Wertpapierstellen
(§ 9) haften weder gegenüber den
Wertpapiergläubigern noch gegenüber
sonstigen Personen für Provisionen,
Kosten, Verluste oder Ausgaben, die aus
oder in Verbindung mit der Überweisung
von
Euro
oder
einer
damit
zusammenhängenden
Währungsumrechnung oder Rundung von
Beträgen entstehen.
(2)
The Issuer and the Security Agents (§ 9)
shall not be liable to any Securityholder or
other person for any commissions, costs,
losses or expenses in relation to or
resulting from the transfer of Euro or any
currency conversion or rounding effected
in connection therewith.
(3)
gemacht.
Anpassungen
und
(3)
Conditions.
Any
adjustment
and
Zinssätzen und Indizes als Basiswert folgenden
§ 7 einfügen:
[in case of shares , commodities, precious
metals, interest rates and indices as Underlying
§7
Kündigung
§7
Termination
(1)
beispielhaft
beschriebenen
Wertpapiere
durch
Bekanntmachung
(i)
(1)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses [der
Aktie]
[des
Rohstoffs][des
Edelmetalls][des
Zinssatzes][des
Index] als Basiswert wird endgültig
176
these
Conditions,
specifying
the
(i)
The
determination
and/or
publication of the Price of [the
share]
[the
commodity]
[the
precious
metal][the
interest
rate][the Index] used as Underlying
is discontinued permanently, or the
intention to do so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
BGB) der Ansicht, dass eine
Anpassung dieser Bedingungen
oder
die
Festlegung
eines
Nachfolge-Basiswerts [oder eines
Nachfolge-Index Sponsors], aus
welchen Gründen auch immer,
nicht möglich sei.
(ii)
make
adjustments
to
these
Underlying [or to select a
Successor Index Sponsor].
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
sonstige erhebliche Änderung der
Marktbedingungen
[an
der
Maßgeblichen
Börse][in
dem
Maßgeblichen
Handelssystem]
eingetreten ist.
(iii)
the Relevant Stock Exchange][in
relation to the Relevant Trading
System].
[im Fall von Aktien als Basiswert zusätzlich
folgende Absätze (iv) bis (vii) einfügen:
[in case of shares as Underlying add the
following paras. (iv) to (vii):
(iv)
Der Emittentin wird die Absicht, die
Notierung
der
Aktien
der
Gesellschaft [in dem Maßgeblichen
Maßgeblichen Börse] aufgrund
einer
Verschmelzung
durch
Aufnahme oder durch Neubildung,
einer
Umwandlung
in
eine
Rechtsform ohne Aktien oder aus
irgendeinem
sonstigen
vergleichbaren
Grund,
insbesondere in Folge eines
Delistings
der
Gesellschaft,
endgültig einzustellen, bekannt.
(iv)
The Issuer obtains knowledge
about the intention to discontinue
permanently the quotation of the
the Relevant Stock Exchange] [, as
the case may be] due to a merger
or a new company formation, due
to a transformation of the Company
into a legal form without shares, or
due to any other comparable
reason, in particular as a result of a
delisting of the Company,
(v)
Die
Beantragung
des
Insolvenzverfahrens oder eines
vergleichbaren Verfahrens über das
Vermögen der Gesellschaft nach
dem
für
die
Gesellschaft
anwendbaren Recht.
(v)
An insolvency proceeding or any
other similar proceeding under the
jurisdiction applicable to and
governing the Company is initiated
in regard to the assets of the
Company.
(vi)
Die Übernahme der Aktien der
Gesellschaft durch einen Aktionär
in Höhe von mindestens 75 % des
Grundkapitals,
wodurch
die
Liquidität der Aktie im Handel nach
Ansicht der Emittentin maßgeblich
beeinträchtigt wird.
(vi)
Take-over of the shares of the
75 % of the share capital of the
Company by a shareholder,
resulting in, in the Issuer's opinion,
a massive impact on the liquidity of
such shares in the market.
(vii)
Das Angebot gemäß dem Aktienoder Umwandlungsgesetz oder
gemäß
einer
vergleichbaren
(vii)
177
Regelung des für die Gesellschaft
anwendbaren Rechts an die
Aktionäre der Gesellschaft, die
Altaktien der Gesellschaft gegen
Barausgleich, andere Wertpapiere
als Aktien oder andere Rechte, für
die keine Notierung an einer Börse
bzw.
einem
Handelssystem
besteht, umzutauschen.]
Law regulating the Transformation
of the Company to cash settlement,
to Securities other than shares or
rights, which are not quoted on a
stock exchange and/or in a trading
system.]
[([•]) [gegebenenfalls
andere
Bestimmung im Zusammenhang
mit der Kündigung einfügen: [•]]]
[([•]) [if
appropriate,
insert
other
(2)
dem
Vorliegen
des
Kündigungsereignisses und unter Angabe
des Kalendertags, zu dem die Kündigung
wirksam wird (der Kündigungstag), zu
erfolgen. In Zweifelsfällen über das
Vorliegen des Kündigungsereignisses
entscheidet die Emittentin gemäß § 315
BGB nach billigem Ermessen.
(2)
§ 315 of the BGB.
(3)
einen
Geldbetrag
in
der
Auszahlungswährung, der von der
Emittentin gemäß § 315 BGB nach
billigem Ermessen, gegebenenfalls unter
Kündigung
bei
der
Emittentin
angefallenen Kosten, als angemessener
Marktpreis
eines
Wertpapiers
bei
Kündigung
festgelegt
wird
(der
Kündigungsbetrag).]
(3)
als
Underlying as the case may be, insert the
following § 7:
§7
Kündigung
(1)
§7
Termination
beispielhaft
beschriebenen
Wertpapiere
durch
Bekanntmachung
(i)
(1)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses einer
178
these
Conditions,
specifying
the
(i)
The
determination
and/or
publication of the price of a
im Zusammenhang mit einem
als
Basiswert verwendeten Währung
wird endgültig eingestellt, oder der
Emittentin
oder
der
Berechnungsstelle
wird
eine
currency used in relation to the
Underlying
is
discontinued
permanently, or the Issuer or the
Calculation
Agent
obtains
knowledge about the intention to do
so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
Anpassung dieser Bedingungen,
aus welchen Gründen auch immer,
nicht möglich sei.
(ii)
make
adjustments
to
these
Conditions.
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
Marktbedingungen
an
dem
Maßgeblichen
Devisenmarkt
eingetreten ist.
(iii)
conditions occurred in relation to
the Relevant Exchange Market.
(iv)
Eine im Zusammenhang mit einem
als
Basiswert verwendete Währung
wird
in
ihrer
Funktion
als
gesetzliches Zahlungsmittel des
Landes oder der Rechtsordnung
bzw.
der
Länder
oder
Rechtsordnungen,
welche
die
Behörde, Institution oder sonstige
Währung ausgibt, durch eine
andere Währung ersetzt oder mit
einer anderen Währung zu einer
gemeinsamen
Währung
verschmolzen, oder der Emittentin
oder der Berechnungsstelle wird
eine
entsprechende
Absicht
bekannt.
(iv)
The currency used in connection
with the currency exchange rate
used as Underlying is, in its
function as legal tender, in the
country or jurisdiction, or countries
or jurisdictions, maintaining the
authority, institution or other body
which issues such currency,
replaced by another currency, or
merged with another currency to
become a common currency, or the
intention to do so.
(v)
Der
Umstand,
dass
ein
(v)
A Relevant Country (aa) imposes
179
Möglichkeiten
beeinträchtigt
werden, die im Zusammenhang mit
einem Währungswechselkurs als
Basiswert verwendete Währung zu
erwerben, zu halten, zu übertragen,
zu
veräußern
oder
andere
Währung durchzuführen.
(vi)
Das Eintreten eines Ereignisses,
das es der Emittentin, und/oder
deren verbundenen Unternehmen
nach
Feststellung
der
Berechnungsstelle
unmöglich
machen würde, die im Folgenden
genannten
Handlungen
vorzunehmen,
bzw.
deren
Vornahme beeinträchtigen oder
verzögern würde:
Underlying or otherwise to effect
transactions in relation to such
currency.
(vi)
The occurrence at any time of an
event, which the Calculation Agent
determines would have the effect of
preventing, restricting or delaying
the Issuer and/or any of its affiliates
from:
(aa)
Umtausch
einer
im
als
Basiswert
verwendeten
Währung
in
die
bzw.
aus
dem
entsprechenden
Land,
infolge
von
dem
Maßgeblichen
Land
einen solchen Umtausch
oder
eine
solche
Transferierung einschränken
oder verbieten;
(aa)
another currency through
currency,
due
to
the
case may be;
(bb)
Umtausch
einer
im
als
Basiswert
verwendeten
Währung
in
die
einem Kurs, der nicht
inländische
Finanzinstitute
mit
Sitz
in
dem
Maßgeblichen Land geltende
Kurs;
(bb)
another currency at a rate at
least as favourable as the
rate for domestic institutions
located in any Relevant
Country;
(cc)
Transferierung
einer
im
als
Basiswert]
verwendeten
Währung
von
Konten
(cc)
as Underlying from accounts
inside any Relevant Country
180
innerhalb des Maßgeblichen
Lands auf Konten außerhalb
des Maßgeblichen Lands,
oder
(dd)
to accounts outside such
Relevant Country; or
Transferierung
einer
im
als
Basiswert
verwendeten
Währung zwischen Konten in
dem Maßgeblichen Land
oder an eine nicht in dem
Maßgeblichen
Land
ansässige Person.
(dd)
im Zusammenhang mit der Kündigung
einfügen: [•]]]
as
Underlying
between
Country or to a party that is a
non-resident
of
such
Relevant Country.
[([•])
[if
appropriate,
insert
other
of a
(2)
dem
Vorliegen
des
(2)
§ 315 of the BGB.
(3)
einen
Geldbetrag
in
der
Kündigung
bei
der
Emittentin
Marktpreis
eines
Wertpapiers
bei
Kündigung
festgelegt
wird
(der
(3)
als
Basiswert
[in case of Fund Units as Underlying insert the
following § 7 :
§7
Kündigung
(1)
§7
Termination
beispielhaft
beschriebenen
Wertpapiere
durch
Bekanntmachung
(1)
181
these
Conditions,
specifying
the
(i)
Die
Ermittlung
und/oder
Veröffentlichung des Kurses des
als
Basiswert
verwendeten
Fondsanteils
wird
endgültig
(i)
The
determination
and/or
publication of the price of the Fund
Unit used as Underlying is
discontinued permanently, or the
intention to do so.
(ii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
Anpassung dieser Bedingungen
oder
die
Festlegung
eines
Nachfolge-Basiswerts, aus welchen
sei.
(ii)
make
adjustments
to
these
Underlying.
(iii)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
Marktbedingungen
[an
der
Maßgeblichen Börse] [oder] [in dem
Maßgeblichen
Handelssystem]
eingetreten ist.
(iii)
the Relevant Stock Exchange] [or]
[in relation to the Relevant Trading
System].
(iv)
Die
Emittentin
und
die
Berechnungsstelle
sind
nach
Ausübung
billigen
Ermessens
BGB) der Ansicht, dass ein
Ereignis,
das
einen
Ersetzungsgrund
(§
6
(2))
begründen würde, eintreten wird.
(iv)
may be, § 317 of the BGB), an
event,
which
qualifies
as
Replacement Event (§ 6 (2)), will
occur.
andere
mit der Kündigung einfügen: [•]]]
[([•]) [if
appropriate,
insert
other
(2)
dem
Vorliegen
des
(2)
§ 315 of the BGB.
(3)
einen
Geldbetrag
in
der
(3)
182
Kündigung
bei
der
Emittentin
Marktpreis
eines
Wertpapiers
bei
Kündigung
festgelegt
wird
(der
§8
Marktstörungen
(1)
(2)
§8
Market Disruptions
[Sind
die
Emittentin
und
die
Berechnungsstelle
nach
Ausübung
bzw. § 317 BGB) der Ansicht, dass an
[dem
Bewertungstag]
[oder]
[dem
Festlegungstag] [gegebenenfalls anderen
zeitlichen Bezugspunkt einfügen: [•]] eine
Marktstörung (§ 8 (3)) vorliegt, dann wird
[der
Bewertungstag]
[oder]
[der
zeitlichen Bezugspunkt einfügen: [•]] [für]
(1)
[If, in the opinion of the Issuer and of the
BGB), a Market Disruption (§ 8 (3))
prevails on [the Valuation Date] [on the
Fixing Date] [, as the case may be,] [if
appropriate, insert different point of
temporal reference: [•]] [the Valuation
Date] [or] [the Fixing Date] [, as the case
may be,] [if appropriate, insert different
point of temporal reference: [•]] [in relation
to]
[den jeweils betroffenen Basiswert] [den
jeweils betroffenen Einzelwert]
[the affected Underlying] [the affected
Component]
[den Basiswert] [sämtliche Einzelwerte]
[the Underlying] [all Components]
auf den unmittelbar darauf folgenden
[Berechnungstag]
[Kalendertag]
[gegebenenfalls
anderen
zeitlichen
Bezugspunkt einfügen: [•]], an dem keine
Marktstörung mehr vorliegt, verschoben.
Die Emittentin wird sich bemühen, den
Beteiligten unverzüglich gemäß § 11
dieser Bedingungen mitzuteilen, dass
eine Marktstörung eingetreten ist. Eine
Pflicht zur Mitteilung besteht jedoch nicht.]
shall be postponed to the next succeeding
[Calculation Date] [calendar day] [if
temporal reference: [•]], on which no
Market Disruption prevails. The Issuer
shall endeavour to notify the parties
pursuant to § 11 of these Conditions
without delay of the occurrence of a
Market Disruption. However, there is no
notification obligation.]
[Gegebenenfalls andere Bestimmung im
Zusammenhang mit der Marktstörung
einfügen: [•].]
[if appropriate, insert other determination
in the context of a market disruption: [•].]
[Wenn
der
[Bewertungstag][gegebenenfalls anderen
zeitlichen Bezugspunkt einfügen: [•]]
aufgrund der Bestimmungen des § 8 (1)
um
[•]
[acht]
[Berechnungstage]
[Kalendertage] [gegebenenfalls anderen
zeitlichen Bezugspunkt einfügen: [•]]
verschoben worden ist und auch an
diesem Tag die Marktstörung fortbesteht,
dann gilt dieser Tag als der maßgebliche
[Bewertungstag] [gegebenenfalls anderen
zeitlichen Bezugspunkt einfügen: [•]] [für]
(2)
183
[If the [Valuation Date] [if appropriate,
insert different point of temporal
reference: [•]] has been postponed, due to
the provisions of § 8 (1), by [•] [eight]
[Calculation Dates] [calendar days] [if
temporal reference: [•]], and if the Market
Disruption continues to prevail on this
day, this day shall be deemed to be the
relevant [Valuation Date] [if appropriate,
insert different point of temporal
reference: [•]] [in relation to]
[den jeweils betroffenen Basiswert][den
jeweils betroffenen Einzelwert]
[the affected Underlying] [the affected
Component]
[den Basiswert][sämtliche Einzelwerte]
[the Underlying][all Components]
Eine weitere Verschiebung findet nicht
statt.
No further postponement shall take place.
Die Emittentin und die Berechnungsstelle
werden dann nach Ausübung billigen
Ermessens (gemäß § 315 BGB bzw. §
317 BGB) sowie unter Berücksichtigung
(i)
der
dann
herrschenden
Marktgegebenheiten und (ii)
sämtlicher
sonstigen Konditionen bzw. Faktoren, die
angemessenerweise
für
bedeutsam
halten, auf Grundlage der zuletzt
erhältlichen Kurse des [betroffenen]
Basiswerts [bzw. des Einzelwerts] [im Fall
eines Index als Basiswert folgenden Text
einfügen: und der von dem Index Sponsor
abgegebenen Schätzungen,] einen Kurs
des [betroffenen] Basiswert [bzw. des
Einzelwerts]
in
Bezug
auf
den
verschobenen [Bewertungstag]
[gegebenenfalls
anderen
zeitlichen
Bezugspunkt einfügen: [•]] schätzen. (Zur
Klarstellung: Dieser Kurs kann auch Null
(0) betragen.)
The Issuer and the Calculation Agent will
then, at their reasonable discretion
case may be, § 317 of the BGB) and
taking into account (i) the market
conditions then prevailing and (ii) such
other conditions or factors as the Issuer
and the Calculation Agent reasonably
consider to be relevant, estimate the Price
of the [affected] Underlying [or, as the
case may be, Component] in relation to
the postponed [Valuation Date] [if
temporal reference: [•]] (which for the
avoidance of doubt could be zero (0)) on
the basis of the last announced Prices of
the [affected] Underlying [or, as the case
may be, Component] [in case of an Index
as Underlying insert the following text:
and of any estimate given by the Index
Sponsor].
Sind
die
Emittentin
und
die
Berechnungsstelle
nach
Ausübung
Schätzung des Kurses des [betroffenen]
Basiswert [bzw. des Einzelwerts] aus
welchen Gründen auch immer nicht
möglich ist, dann werden die Emittentin
und
die
Berechnungsstelle
nach
Ausübung billigen Ermessens (gemäß §
315 BGB bzw. § 317 BGB) sowie unter
Berücksichtigung
(i)
der
dann
herrschenden Marktgegebenheiten, (ii)
sämtlicher sonstigen Konditionen bzw.
Faktoren, die die Emittentin und die
Berechnungsstelle angemessenerweise
für
bedeutsam
halten
und
(iii)
gegebenenfalls unter Berücksichtigung
der durch die Marktstörung bei der
Emittentin
angefallenen
Kosten,
bestimmen, ob, und gegebenenfalls in
welcher Höhe, die Emittentin einen
Geldbetrag in der Auszahlungswährung
zahlen wird. Auf diesen Geldbetrag finden
die in diesen Bedingungen enthaltenen
Bestimmungen
über
den
Auszahlungsbetrag
entsprechende
Anwendung.]
BGB), an estimate of the Price of the
[affected] Underlying [or, as the case may
be, of the Component] is, for whatsoever
reason, not possible, the Issuer and the
Calculation Agent will, at their reasonable
and taking into account (i) the market
conditions then prevailing, (ii) such other
conditions or factors as the Issuer and the
Calculation Agent reasonably consider to
be relevant and (iii) the expenses of the
Issuer, if any, caused by the Market
Disruption, determine whether and in
which amount, if applicable, the Issuer will
make payment of an amount in the
Settlement Currency. The provisions of
these
Conditions
relating
to
the
Settlement Amount shall apply mutatis
mutandis to such payment.]
184
[Gegebenenfalls andere Bestimmung im
Zusammenhang mit der Marktstörung
einfügen: [•].]
(3)
Eine Marktstörung bedeutet
[if appropriate, insert other determination
in the context of a market disruption: [•].].
(3)
A Market Disruption shall mean
Zinssätzen, Indizes und Fondsanteilen als
Basiswert gegebenenfalls folgenden Text
einfügen:]
[in case of shares, commodities, precious
metals, interest rates, indices and fund units as
Underlying insert, if appropriate, the following
text:]
[in Bezug auf [eine Aktie] [einen
Rohstoff][ein
Edelmetall]
[einen
Zinssatz][einen Index][einen Fondsanteils]
als Basiswert [bzw. auf sämtliche seiner
Einzelwerte]:
[in relation to [a share] [a commodity][a
precious metal][an interest rate][an
Index][a Fund Unit] used as Underlying
[or, as the case may be, in relation to
each of its Components]:
(a)
die Suspendierung oder das
Ausbleiben der Bekanntgabe des
maßgeblichen Kurses an einem für
die
Berechnung
eines
Auszahlungsbetrags bzw. eines
Kündigungsbetrags maßgeblichen
[Berechnungstag]
[Kalendertag]
[gegebenenfalls anderen zeitlichen
Bezugspunkt einfügen: [•]] oder
(a)
a suspension or a failure of the
announcement of the relevant price
on any [Calculation Date] [calendar
day] [if appropriate, insert different
point of temporal reference: [•]]
relevant
for
determining
a
Settlement
Amount
or
a
Termination Amount, as the case
may be, or
(b)
die Begrenzung, Suspendierung
bzw.
Unterbrechung
oder,
vorbehaltlich von Absatz (4), eine
nach Auffassung der Emittentin und
der Berechnungsstelle wesentliche
(b)
a
limitation,
suspension
or
disruption of or, subject to para. (4),
a restriction on, the latter of which
is in the Issuer’s and the
Calculation
Agent’s
opinion
significant, imposed on trading
(i)
[in
dem
Maßgeblichen
Handelssystem][an
der
Maßgeblichen Börse] [oder]
[an der/den Börse(n) bzw. in
dem Markt/den Märkten,
an/in der/dem/denen die
Einzelwerte
notiert
oder
gehandelt werden,] allgemein
[(sei
es
wegen
Kursbewegungen, die die
Grenzen des von [dem
Maßgeblichen
Handelssystem][der
[der/den Börse(n) bzw. dem
Markt/den Märkten, an/in
der/dem/denen
die
Einzelwerte
notiert
oder
gehandelt werden,] Erlaubten
überschreiten,
oder
aus
sonstigen Gründen)], oder
(i)
[in the Relevant Trading
System][on the Relevant
Stock Exchange] [or] [on the
stock exchange(s) or in the
market(s) on/in which the
Components are quoted or
traded,] in general [(whether
by movements in price
exceeding limits permitted by
[the
Relevant
Trading
System][the Relevant Stock
Exchange][or] [the stock
exchange(s) or the market(s)
on/in which the Components
are quoted or traded,] or
otherwise)], or
(ii)
[in
dem
Maßgeblichen
Handelssystem]
[an
der
(ii)
System] [on the Relevant
Stock Exchange] [, as the
185
[an der/den Börse(n) bzw. in
Einzelwerte
notiert
oder
gehandelt werden,] in [der
Aktie] [dem Rohstoff] [dem
Edelmetall] [dem Zinssatz]
[dem
Index]
[dem
Fondsanteil]
[in
den
Einzelwerten [der Aktie] [des
Rohstoffs] [des Edelmetalls]
[des Zinssatzes] [des Index]
[des
Fondsanteils]
an
der/den Börse(n) bzw. in
dem Markt/den Märkten an/in
der/dem/denen
die
Einzelwerte
notiert
oder
eine wesentliche Anzahl oder
ein wesentlicher Anteil [unter
Berücksichtigung
der
Marktkapitalisierung]
betroffen ist (als wesentliche
Anzahl bzw. wesentlicher
Anteil gilt eine solche oder
ein solcher von mehr als [•]
[20%] [10%]),] [(sei es wegen
Maßgeblichen
Handelssystem] [bzw.] [der
[der/den Börse(n) bzw. dem
der/dem/denen
die
Einzelwerte
notiert
oder
gehandelt werden,] Erlaubten
überschreiten,
oder
aus
case may be,] [or] [on the
traded,] in [the share] [the
commodity] [the precious
metal] [the interest rate] [the
Index] [the Fund Unit] [in the
Components of [the share]
[the commodity] [the precious
Index] [the Fund Unit] on the
market(s) on/in which these
values are quoted or traded,
provided that a major number
or a major part [in terms of
market
capitalization]
is
concerned (a number or part
in excess of [•] [20%] [10%]
shall be deemed to be
material),]
[(whether
by
movements
in
price
[the
Relevant
Trading
System] [or] [the Relevant
Stock Exchange] [, as the
case may be,] [or] [the stock
are quoted or traded,] or
otherwise)], or
(iii)
an
der
Maßgeblichen
Terminbörse,
falls
dort
Optionskontrakte auf [die
Aktie] [den Rohstoff] [das
Edelmetall] [den Zinssatz]
[den Index] [den Fondsanteil]
[bzw. auf die Einzelwerte]
gehandelt werden, oder
(iii)
on the Relevant Futures and
Options Exchange, if Option
Contracts on [the share] [the
commodity] [the precious
Index] [the Fund Unit] [or, as
the case may be, on the
Components] are traded
there, or
[(iv)
in dem/den Währungsmarkt/märkten,
in
dem/denen
gegebenenfalls die Kurse für
die Währungsumrechnung in
die
Auszahlungswährung
gemäß § 5 (2) dieser
Bedingungen
festgestellt
werden, oder]
[(iv]
on the foreign exchange
market(s) in which the rates
for the conversion into the
Settlement
Currency
pursuant to § 5 (2) of these
Conditions are determined, if
applicable, or]
([iv] [v]) aufgrund einer Anordnung
186
([iv] [v]) due to a directive of an
einer Behörde oder [der
Maßgeblichen Börse] [des
Maßgeblichen
Handelssystems] [(sei es
wegen Kursbewegungen, die
die Grenzen des von [der
Maßgeblichen Börse] [dem
Maßgeblichen
Handelssystem]
Erlaubten
überschreiten,
oder
aus
sonstigen Gründen)], bzw.
aufgrund eines Moratoriums
für Bankgeschäfte in dem
Land,
in
dem
[die
Maßgebliche Börse] [bzw.]
[das
Maßgebliche
Handelssystem] ansässig ist,
oder
aufgrund
sonstiger
Umstände.
[(c)
authority or of [the Relevant
Stock Exchange]
[the
Relevant Trading System] [,
as the case may be,]
[(whether by movements in
price
exceeding
limits
permitted by [the Relevant
Stock Exchange] [or] [the
Relevant Trading System]
[,or otherwise)] or due to a
moratorium,
which
is
declared in respect of
banking activities in the
country,
in
which
[the
Relevant Stock Exchange]
[or] [the Relevant Trading
System] is located, or due to
other whatsoever reasons.
Der maßgebliche Kurs ist ein
Grenzpreis (limit price), was
bedeutet, dass der für einen Tag
ermittelte
[•]
Kurs
für
den
betroffenen Basiswert [bzw. für den
betroffenen Einzelwert] den [•] Kurs
an dem unmittelbar vorangehenden
Tag um den nach den Vorschriften
[des
Maßgeblichen
Handelssystems]
[der
Maßgeblichen Börse] [oder] [der
Börse(n) bzw. des Markts/der
Märkte, an/in der/dem/denen die
Einzelwerte notiert oder gehandelt
werden,] zulässigen maximalen
Umfang
überschritten
bzw.
unterschritten hat.]
[(c)
The relevant price is a “limit price”,
which means that the [•] price for
the affected Underlying [or, as the
case may be, the affected
Component] for a day has
increased or decreased from the
immediately preceding day’s [•]
price by the maximum amount
permitted under applicable rules of
[the Relevant Trading System] [or]
[the Relevant Stock Exchange] [or]
[the stock exchange(s) or the
market(s)
on/in
which
the
Components are quoted or traded].]
([c] [d]) Der Eintritt eines sonstigen
Ereignisses, das nach Ansicht der
Emittentin
und
der
Berechnungsstelle nach Ausübung
BGB bzw. § 317 BGB) die
allgemeine
Möglichkeit
von
Marktteilnehmern
beeinträchtigt
oder behindert, Transaktionen in
dem Basiswert [bzw. dem jeweils
betroffenen
Einzelwert]
[dem
Basiswert][bzw.
sämtlichen
Einzelwerten] durchzuführen oder
diesbezügliche Marktbewertungen
zu erhalten. ]
([c] [d]) The occurrence of any other event
that, in the opinion of the Issuer and
may be, § 317 of the BGB), disrupts
or impairs the ability of market
participants in general to effect
transactions in, or obtain market
values for the Underlying [or, as the
Component] [the Underlying] [or, as
the case may be, all Components].
]
andere
mit der Marktstörung einfügen: [•]]]
[([•]) [if
appropriate,
insert
other
market disruption: [•]]]
[im Fall von Indizes als Basiswert, die aus
Rohstoffen bzw. Edelmetallen als Einzelwerten
[in case of indices as Underlying comprising
commodities or precious metals, as the case
187
bestehen,
einfügen:]
gegebenenfalls
folgenden
Text
may be, as Components insert, if appropriate,
the following text:]
[in Bezug auf einen Index als Basiswert
bzw. auf sämtliche seiner Einzelwerte:
[in relation to an Index used as Underlying
or, as the case may be, in relation to each
of its Components:
(a)
die Suspendierung oder das
Ausbleiben der Bekanntgabe des
maßgeblichen Kurses an einem für
die
Berechnung
eines
[Berechnungstag]
[Kalendertag]
Bezugspunkt einfügen: [•]] oder
(a)
a suspension or a failure of the
announcement of the relevant price
on any [Calculation Date] [calendar
day] [if appropriate, insert different
point of temporal reference:[•]]
relevant
for
determining
a
Settlement
Amount
or
a
Termination Amount, as the case
may be, or
(b)
die Begrenzung, Suspendierung
bzw.
Unterbrechung
oder,
vorbehaltlich von Absatz (4), eine
nach Auffassung der Emittentin und
der Berechnungsstelle wesentliche
(b)
a
limitation,
suspension
or
disruption of or, subject to para. (4),
a restriction on, the latter of which
is in the Issuer’s and the
Calculation
Agent’s
opinion
(i)
[in
dem
Maßgeblichen
Handelssystem]
[an
der
Maßgeblichen Börse] oder
an der/den Börse(n) bzw. in
Einzelwerte
notiert
oder
gehandelt werden, allgemein
[(sei
es
wegen
Maßgeblichen
Handelssystem]
[der
der/den Börse(n) bzw. dem
der/dem/denen
die
Einzelwerte
notiert
oder
gehandelt werden, Erlaubten
überschreiten,
oder
aus
(i)
System] [or] [on the Relevant
Stock Exchange] or on the
traded, in general [(whether
by movements in price
[the
Relevant
Trading
System] [or] [the Relevant
Stock Exchange] or the stock
are quoted or traded, or
otherwise)], or
(ii)
[in
dem
Maßgeblichen
Handelssystem]
[an
der
an der/den Börse(n) bzw. in
Einzelwerte
notiert
oder
gehandelt werden, in dem
Index
bzw.
in
den
Einzelwerten des Index an
der/den Börse(n) bzw. in
dem Markt/den Märkten an/in
der/dem/denen
die
Einzelwerte
notiert
oder
(ii)
System] [or] [on the Relevant
Stock Exchange] or on the
traded, in the Index or, as the
case may be, in the
Components of the Index on
the stock exchange(s) or in
the market(s) on/in which the
traded, provided that a major
number or a major part [in
188
eine wesentliche Anzahl oder
ein wesentlicher Anteil [unter
Berücksichtigung
der
Marktkapitalisierung]
betroffen ist (als wesentliche
Anzahl bzw. wesentlicher
Anteil gilt eine solche oder
ein solcher von mehr als [•]
[20%] [10%]), [(sei es wegen
Maßgeblichen
Handelssystem]
[der
der/den Börse(n) bzw. dem
der/dem/denen
die
Einzelwerte
notiert
oder
gehandelt werden, Erlaubten
überschreiten,
oder
aus
terms
of
market
capitalization] is concerned
(a number or part in excess
of [•] [20%] [10%] shall be
deemed to be material),
price
exceeding
limits
Trading System] [or] [the
Relevant Stock Exchange] or
the stock exchange(s) or the
traded, or otherwise)], or
(iii)
an
der
Maßgeblichen
Terminbörse,
falls
dort
Optionskontrakte auf den
Index
bzw.
auf
die
Einzelwerte
gehandelt
werden, oder
(iii)
Contracts on the Index or, as
the case may be, on the
Components
are
traded
there, or
[(iv)
in dem/den Währungsmarkt/märkten,
in
dem/denen
gegebenenfalls die Kurse für
die Währungsumrechnung in
die
Auszahlungswährung
gemäß § 5 (2) dieser
Bedingungen
festgestellt
werden, oder]
[(iv)
on the foreign exchange
market(s) in which the rates
for the conversion into the
Settlement
Currency
pursuant to § 5 (2) of these
Conditions are determined, if
applicable, or]
([iv] [v]) aufgrund einer Anordnung
einer Behörde oder [der
Maßgeblichen Börse] [des
Maßgeblichen
Handelssystems] [(sei es
wegen Kursbewegungen, die
die Grenzen des von [der
Maßgeblichen Börse] [bzw.]
[dem
Maßgeblichen
Handelssystem]
Erlaubten
überschreiten,
oder
aus
sonstigen Gründen)], bzw.
Land,
in
dem
[die
Maßgebliche Börse] [bzw.]
[das
Maßgebliche
Handelssystem] ansässig ist,
oder
aufgrund
sonstiger
Umstände.
189
([iv] [v]) due to a directive of an
authority or of [the Relevant
Relevant Trading System]
price
exceeding
limits
Relevant Trading System] [,
as the case may be,] or
otherwise)] or due to a
moratorium,
which
is
country,
in
which
[the
Relevant Stock Exchange]
[or] [the Relevant Trading
System] is located, or due to
other whatsoever reasons.
[(c)
Der maßgebliche Kurs ist ein
Grenzpreis (limit price), was
bedeutet, dass der für einen Tag
ermittelte [•] Kurs für [den
betroffenen Basiswert bzw. für den
betroffenen Einzelwert den [•] Kurs
an dem unmittelbar vorangehenden
Tag um den nach den Vorschriften
[des
Maßgeblichen
Handelssystems]
[bzw.]
[der
Maßgeblichen Börse] oder der
Börse(n) bzw. des Markts/der
Märkte, an/in der/dem/denen die
Einzelwerte notiert oder gehandelt
werden, zulässigen maximalen
Umfang
überschritten
bzw.
unterschritten hat.]
[(c)
The relevant price is a “limit price”,
which means that the [•] price for
[the affected Underlying] [or, as the
Component] for a day has
increased or decreased from the
immediately preceding day’s [•]
price by the maximum amount
permitted under applicable rules of
[the Relevant Trading System] [or]
[the Relevant Stock Exchange] [, as
the case may be,] or the stock
exchange(s) or the market(s) on/in
which the Components are quoted
or traded.]
([c] [d]) Der Eintritt eines sonstigen
Ereignisses, das nach Ansicht der
Emittentin
und
der
Berechnungsstelle nach Ausübung
BGB bzw. § 317 BGB) die
allgemeine
Möglichkeit
von
Marktteilnehmern
beeinträchtigt
oder behindert, Transaktionen in
[dem Basiswert] [bzw. dem jeweils
betroffenen
Einzelwert]
[dem
Basiswert]
[bzw.
sämtlichen
Einzelwerten] durchzuführen oder
diesbezügliche Marktbewertungen
zu erhalten. ]
([c] [d]) The occurrence of any other event
that, in the opinion of the Issuer and
may be, § 317 of the BGB), disrupts
or impairs the ability of market
participants in general to effect
transactions in, or obtain market
values for [the Underlying] [or, as
the case may be, the affected
Component] [the Underlying] [or, as
the case may be, all Components].
]
andere
mit der Marktstörung einfügen: [•]]]
[([•]) [if
appropriate,
insert
other
market disruption: [•]]]
Basiswert gegebenenfalls folgenden Text
einfügen:]
Underlying, insert, if appropriate, the following
text:]
[in
Bezug
auf
einen
Währungswechselkurs als Basiswert:
[in relation to currency exchange rate
used as Underlying:
(a)
die
Suspendierung
der
Bekanntgabe des maßgeblichen
Kurses einer im Zusammenhang
mit dem Währungswechselkurs
verwendeten Währung an einem für
die
Berechnung
eines
[Berechnungstag]
[Kalendertag]
Bezugspunkt einfügen: [•]]
(a)
a suspension of the announcement
of the Price of a currency used in
relation to the currency exchange
rate on any [Calculation Date]
[calendar day] [if appropriate, insert
different
point
of
temporal
reference:
[•]]
relevant
for
determining a Settlement Amount
or a Termination Amount, as the
case may be, or
(b)
der
Umstand,
dass
ein
(b)
a Relevant Country (aa) imposes
190
Möglichkeiten
beeinträchtigt
werden, eine im Zusammenhang
mit dem Währungswechselkurs
verwendete Währung zu erwerben,
zu halten, zu übertragen, zu
veräußern
oder
andere
Währung durchzuführen, oder
(c)
das Eintreten eines Ereignisses,
das es der Emittentin, und/oder
deren verbundenen Unternehmen
nach Feststellung der Emittentin
und
der
Berechnungsstelle
unmöglich machen würde, die
folgenden
Handlungen
vorzunehmen,
bzw.
deren
Vornahme beeinträchtigen oder
verzögern würde:
the currency exchange rate or
otherwise to effect transactions in
relation to such currency, or
(c)
the occurrence at any time of an
event, which the Issuer and the
Calculation Agent determine would
have the effect of preventing,
restricting or delaying the Issuer
and/or any of its affiliates from:
(i)
Umtausch
einer
im
verwendeten Währung in die
bzw.
aus
dem
entsprechenden
Land,
infolge
von
dem
Maßgeblichen
Land
einen solchen Umtausch
oder
eine
solche
Transferierung einschränken
oder verbieten;
(i)
currency exchange rate into
the Settlement Currency or
into another currency through
currency,
due
to
the
case may be;
(ii)
Umtausch
einer
im
verwendeten Währung in die
einem Kurs, der nicht
inländische
Finanzinstitute
(ii)
currency exchange rate into
the Settlement Currency or
into another currency at a
rate at least as favourable as
the rate for domestic financial
institutions located in any
Relevant Country;
191
mit
Sitz
in
dem
Maßgeblichen Land geltende
Kurs;
(d)
(iii)
Transferierung
einer
im
verwendeten Währung von
Konten
innerhalb
des
Maßgeblichen Lands auf
Konten
außerhalb
des
Maßgeblichen Lands, oder
(iii)
currency exchange rate from
Country to accounts outside
such Relevant Country; or
(iv)
Transferierung
einer
im
verwendeten
Währung
zwischen Konten in dem
Maßgeblichen Land oder an
eine
nicht
in
dem
Maßgeblichen
Land
ansässige Person.
(iv)
as between accounts inside
any Relevant Country or to a
party that is a non-resident of
such Relevant Country.
die Suspendierung oder eine nach
Berechnungsstelle
wesentliche
(d)
a suspension or a restriction, the
latter of which is in the Issuer’s and
Calculation
Agent’s
opinion
(i)
in einer im Zusammenhang
mit
einem
verwendeten Währung in
dem
Maßgeblichen
Devisenmarkt
allgemein,
oder
(i)
in the currency used in
connection with the currency
exchange
rate
on
the
Relevant Exchange Market in
general, or
(ii)
an
der
Maßgeblichen
Terminbörse,
falls
dort
Optionskontrakte auf eine im
verwendete
Währung
gehandelt werden, oder
(ii)
Contracts on the currency
currency exchange rate are
traded there, or
(iii)
aufgrund einer Anordnung
einer Behörde oder des
Maßgeblichen
Devisenmarkts
bzw.
Land,
in
dem
der
Maßgebliche Devisenmarkt
ansässig ist, oder aufgrund
sonstiger Umstände.]
(iii)
due to a directive of an
authority or of the Relevant
Exchange Market or due to a
moratorium,
which
is
country,
in
which
the
Relevant Exchange Market is
located, or due to other
whatsoever reasons.]
andere
Bestimmung
im
Zusammenhang
mit
der
Marktstörung einfügen: [•]]]
192
[([•]) [if appropriate, insert other
of a market disruption: [•]]]
(4)
Eine
Verkürzung
der
regulären
Handelszeiten oder eine Beschränkung
der Stunden oder Anzahl der Tage, an
denen ein Handel stattfindet, gilt nicht als
Marktstörung, sofern die Einschränkung
auf einer Änderung der regulären
Handelszeiten
[des
Maßgeblichen
Handelssystems]
[bzw.]
[der
Maßgeblichen
Börse]
[oder]
[des
Maßgeblichen Devisenmarkts] beruht, die
mindestens eine (1) Stunde vor (i)
entweder dem tatsächlichen regulären
Ende der Handelszeiten [in dem
Maßgeblichen Handelssystem] [bzw.] [an
der Maßgeblichen Börse] [oder] [an dem
Maßgeblichen Devisenmarkt] oder (ii)
dem Termin für die Abgabe von
Handelsaufträgen zur Bearbeitung an
dem
betreffenden
Tag
[in
dem
Maßgeblichen Handelssystem] [bzw.] [an
der Maßgeblichen Börse] [oder] [an dem
Maßgeblichen Devisenmarkt], je nachdem
welcher Zeitpunkt früher ist, angekündigt
worden ist. Eine im Laufe eines Tages
auferlegte Beschränkung im Handel
aufgrund von Preisbewegungen, die
bestimmte
vorgegebene
Grenzen
überschreiten,
gilt
nur
dann
als
Marktstörung, wenn diese Beschränkung
bis zum Ende der Handelszeit an dem
betreffenden Tag fortdauert.
(4)
Any closing prior to the scheduled trading
time or any restriction of the hours or the
number of days during which trading
takes place is not deemed to be a Market
Disruption, if the restriction is based on a
change in regular trading hours [in the
Relevant Trading System] [or] [at the
Relevant Stock Exchange] [or] [on the
Relevant Exchange Market] [, as the case
may be,] announced in advance at least
one (1) hour prior to the earlier of (i) the
actual closing time for the regular trading
hours [in the Relevant Trading System]
[or] [on the Relevant Stock Exchange] [or]
[in the Relevant Exchange Market] [, as
the case may be,] or (ii) the submission
deadline for orders entered [into the
Relevant Trading System] [or] [into the
Relevant Stock Exchange] [or] [into the
Relevant Exchange Market] [, as the case
may be,] for execution on the relevant
day. A restriction of trading which is levied
during the course of any day due to price
developments
exceeding
certain
prescribed limits shall only be deemed to
be a Market Disruption, if such restriction
continues until the end of trading hours on
the relevant day.
[(5)
Das Bestehen einer Marktstörung vor
[dem Bewertungstag][bzw. vor] [dem
zeitlichen Bezugspunkt einfügen: [•]] bleibt
für die Feststellung des Erreichens,
Überschreitens
oder
Unterschreitens
einer
nach
diesen
Bedingungen
maßgeblichen Schwelle oder Grenze
unberücksichtigt.]
[(5)
The existence of a Market Disruption prior
to [the Valuation Date] [or] [the Fixing
Date] [, as the case may be,] [if
temporal
reference:[•]]
shall
be
disregarded when determining reaching,
exceeding or falling short of any threshold
or limit, relevant under these Conditions.]
§9
Berechnungsstelle; Zahlstelle
§9
Calculation Agent; Paying Agent
(1)
Die Berechnungsstelle und die Zahlstelle
(die Wertpapierstellen) übernehmen
diese
Funktion
jeweils
in
Übereinstimmung
mit
diesen
Bedingungen. Jede der Wertpapierstellen
haftet dafür, dass sie im Zusammenhang
mit den Wertpapieren Handlungen bzw.
Berechnungen vornimmt, nicht vornimmt
oder nicht richtig vornimmt oder sonstige
Maßnahmen trifft oder unterlässt nur,
wenn und soweit sie jeweils die Sorgfalt
eines ordentlichen Kaufmanns verletzt
hat.
(1)
The Calculation Agent and the Paying
Agent (the Security Agents) shall
assume such role in accordance with
these Conditions. Each of the Security
Agents shall be liable for making, failing to
make or incorrectly making any measure
or calculations, as the case may be, or for
taking or failing to take any other
measures only if and insofar as they fail to
exercise the due diligence of a prudent
businessman.
(2)
Jede
(2)
Each
der
Wertpapierstellen
handelt
193
of
the
Security
Agents
acts
ausschließlich als Erfüllungsgehilfin der
Emittentin und hat keinerlei Pflichten
gegenüber dem Wertpapiergläubiger. Die
Wertpapierstellen sind jeweils von den
Beschränkungen des § 181 BGB befreit.
exclusively as vicarious agent of the
Issuer and has no obligations to the
Securityholder. Each of the Security
Agents is exempt from the restrictions
under § 181 of the BGB.
(3)
Die Emittentin ist berechtigt, jederzeit jede
oder alle der Wertpapierstellen durch eine
andere Gesellschaft zu ersetzen, eine
oder
mehrere
zusätzliche
Wertpapierstellen zu bestellen und deren
Bestellung zu widerrufen. Ersetzung,
Bestellung und Widerruf werden gemäß §
(3)
replace any of or all the Security Agents
by another company, to appoint one or
several additional Security Agents, and to
revoke
their
appointment.
Such
replacement, appointment and revocation
shall be notified in accordance with § 11
of these Conditions.
(4)
Jede der Wertpapierstellen ist berechtigt,
durch schriftliche Anzeige gegenüber der
Emittentin
jederzeit
ihr
Amt
niederzulegen. Die Niederlegung wird nur
wirksam mit der Bestellung einer anderen
Gesellschaft als Berechnungsstelle bzw.
als Zahlstelle durch die Emittentin.
Niederlegung und Bestellung werden
gemäß § 11 dieser Bedingungen bekannt
gemacht.
(4)
Each of the Security Agents is entitled to
resign at any time from its function upon
prior written notice to the Issuer. Such
resignation shall only become effective if
another company is appointed by the
Issuer as Calculation Agent or as Paying
Agent, as the case may be. Resignation
and
appointment
are
notified
in
§ 10
Ersetzung der Emittentin
(1)
§ 10
Substitution of the Issuer
Die Emittentin ist jederzeit berechtigt,
ohne
Zustimmung
der
eine
andere
Gesellschaft als Emittentin (die Neue
Emittentin)
hinsichtlich
aller
Verpflichtungen aus oder in Verbindung
mit den Wertpapieren an die Stelle der
Emittentin zu setzen, sofern
(1)
The Issuer is entitled at any time, without
the consent of the Securityholders, to
substitute another company as issuer (the
New Issuer) with respect to all obligations
under or in connection with the Securities,
if
(i)
die Neue Emittentin alle
Verpflichtungen
der
Emittentin aus oder in
Verbindung
mit
den
Wertpapieren übernimmt,
(i)
the New Issuer assumes all
obligations of the Issuer
under or in connection with
the Securities,
(ii)
die Neue Emittentin alle etwa
notwendigen
Genehmigungen von den
zuständigen
Behörden
erhalten hat, wonach die
Neue Emittentin alle sich aus
oder in Verbindung mit den
Wertpapieren
ergebenden
Verpflichtungen erfüllen kann
und
Zahlungen
ohne
Einbehalt oder Abzug von
irgendwelchen
Steuern,
Abgaben oder Gebühren an
die Zahlstelle transferieren
darf, [und]
(ii)
the New Issuer has obtained
all necessary authorisations,
if any, by the competent
authorities, under which the
New Issuer may perform all
obligations arising under or in
connection
with
the
Securities
and
transfer
payments to the Paying
Agent without withholding or
deduction of any taxes,
charges or expenses, [and]
194
(iii)
die Emittentin unbedingt und
unwiderruflich
die
Verpflichtungen der Neuen
Emittentin garantiert [und] [.]
(iii)
the Issuer unconditionally
and irrevocably guarantees
the obligations of the New
Issuer [, and] [.]
[(iv)
[•].]
[(iv)
[•].]
(2)
Im Falle einer solchen Ersetzung der
Emittentin gilt jede in diesen Bedingungen
enthaltene
Bezugnahme
auf
die
Emittentin fortan als auf die Neue
Emittentin bezogen.
(2)
In case of such a substitution of the Issuer
any reference in these Conditions to the
Issuer shall forthwith be deemed to refer
to the New Issuer.
(3)
Die Ersetzung der Emittentin ist für die
endgültig
und
bindend
und
wird
den
unverzüglich
gemäß § 11 dieser Bedingungen bekannt
gemacht.
(3)
The substitution of the Issuer shall be
final, binding and conclusive on the
Securityholders and will be published to
the Securityholders without undue delay
in accordance with § 11 of these
Conditions.
§ 11
Bekanntmachungen
§ 11
Publications
(1)
Bekanntmachungen, die die Wertpapiere
betreffen, werden in einer der jeweils
maßgeblichen
Rechtsordnung
entsprechenden
Form
veröffentlicht.
Soweit rechtlich zulässig, werden die
Bekanntmachungen
den
ausschließlich
durch Mitteilung der Emittentin an die
Clearingstelle zur Benachrichtigung der
Wertpapiergläubiger übermittelt.
(1)
Publications relating to the Securities will
be published in the way required by the
relevant jurisdiction, respectively. To the
extent legally possible, the publications
will be published by way of Issuer’s
notification to the Clearing Agent for the
purposes of notifying the Securityholders.
(2)
Bekanntmachungen
sind
mit
Veröffentlichung bzw. mit Mitteilung an die
Clearingstelle durch die Emittentin den
Wertpapiergläubigern gegenüber wirksam
abgegeben.
(2)
All publications have been validly given to
the Securityholders with their publication
or with the Issuer’s notification to the
Clearing Agent, as the case may be.
(3)
Bekanntmachungen sind, falls sie der
Clearingstelle zugehen, am dritten Tag
nach Zugang bei der Clearingstelle den
wirksam
zugegangen oder, falls sie veröffentlicht
werden (unabhängig davon, ob dies
zusätzlich geschieht), am Tag der
Veröffentlichung oder, falls sie mehr als
einmal veröffentlicht werden, am Tag der
ersten
Veröffentlichung,
oder
falls
Veröffentlichungen in mehr als einem
Medium erforderlich sind, am Tag der
ersten
Veröffentlichung
in
allen
erforderlichen Medien. Im Fall der
Bekanntmachung
sowohl
durch
Veröffentlichung als auch durch Erklärung
gegenüber der Clearingstelle ist die
zeitlich vorangehende Bekanntmachung
bzw. Erklärung maßgeblich.
(3)
All publications shall, in case of the
Issuer’s notification to the Clearing Agent,
be effectively given to the Securityholders
on the third day after their receipt by the
Clearing Agent or, if published (whether or
not such publication occurs in addition to
a notification to the Clearing Agent) on the
date of their publication, or, if published
more than once, on the date of their first
publication, or, if a publication is required
in more than one medium, on the date of
the first publication in all required media.
In case of announcement by both,
publication and Issuer’s notification to the
Clearing Agent, the publication becomes
effective on the date of the first of such
publication or Issuer’s notification, as the
case may be.
195
§ 12
Begebung weiterer Wertpapiere; Ankauf;
Einziehung; Entwertung
§ 12
Issue of further Securities; Purchase; Call;
Cancellation
(1)
jederzeit weitere Wertpapiere mit gleicher
Ausstattung in der Weise zu begeben,
dass sie mit diesen Wertpapieren eine
einheitliche Serie bilden, wobei in diesem
Fall
der
Begriff
Wertpapiere
entsprechend auszulegen ist.
(1)
The Issuer is entitled at any time to issue,
without
the
consent
of
the
Securityholders, further securities having
the same terms and conditions as the
Securities so that the same shall be
consolidated and form a single series with
such Securities, and references to
Securities
shall
be
construed
accordingly.
(2)
jederzeit Wertpapiere zu jedem beliebigen
Preis zu kaufen. Die von der Emittentin
erworbenen Wertpapiere können nach
Wahl der Emittentin von ihr gehalten,
erneut begeben, weiterverkauft oder
entwertet werden.
(2)
purchase, without the consent of the
Securityholders, Securities at any price.
Such Securities may be held, reissued,
resold or cancelled, all at the option of the
Issuer.
(3)
jederzeit
ausstehende
Wertpapiere
einzuziehen und damit ihre Anzahl zu
reduzieren.
(3)
The Issuer is entitled at any time to call,
without
the
consent
of
the
Securityholders, outstanding Securities
and to reduce their number.
(4)
Aufstockung bzw. Reduzierung der
Wertpapiere werden unverzüglich gemäß
§ 11 dieser Bedingungen bekannt
gemacht.
(4)
Increase or reduction of Securities shall
be notified without undue delay in
(5)
Sämtliche vollständig zurückgezahlten
Wertpapiere
sind
unverzüglich
zu
entwerten
und
können
nicht
wiederbegeben
oder
wiederverkauft
werden.
(5)
All Securities redeemed in full shall be
cancelled forthwith and may not be
reissued or resold.
§ 13
Sprache
§ 13
Language
[Diese Bedingungen sind in deutscher Sprache
abgefasst. Eine Übersetzung in die englische
Sprache ist beigefügt. Der deutsche Text ist
bindend und maßgeblich. Die Übersetzung in
die englische Sprache ist unverbindlich.] [Diese
Bedingungen sind in englischer Sprache
abgefasst. Eine Übersetzung in die deutsche
Sprache ist beigefügt. Der englische Text ist
bindend und maßgeblich. Die Übersetzung in
die deutsche Sprache ist unverbindlich.]
[These Conditions are written in the German
language and provided with an English language
translation. The German text shall be controlling
and binding. The English language translation is
provided for convenience only.] [These
Conditions are written in the English language
and provided with a German language
translation. The English text shall be controlling
and binding. The German language translation
is provided for convenience only.]
§ 14
Anwendbares Recht; Erfüllungsort;
Gerichtsstand; Zustellungsbevollmächtigte;
Teilunwirksamkeit
§ 14
Governing Law; Place of Performance; Place
of Jurisdiction; Agent of Process;
Severability
(1)
Form und Inhalt der Wertpapiere sowie
(1)
196
The form and content of the Securities as
alle Rechte und Pflichten aus den in
diesen
Bedingungen
geregelten
Angelegenheiten bestimmen sich in jeder
Hinsicht
nach
dem
Recht
der
Bundesrepublik Deutschland. [•]
well as all rights and duties arising from
the matters provided for in these
Conditions shall in every respect be
governed by the laws of the Federal
Republic of Germany. [•]
(2)
Erfüllungsort und Gerichtsstand für alle
Klagen oder sonstigen Verfahren aus
oder im Zusammenhang mit den
Wertpapieren
ist,
soweit
rechtlich
zulässig,
Frankfurt
am
Main,
Bundesrepublik Deutschland.
(2)
The place of performance and place of
jurisdiction for all actions or other
procedures under or in connection with
the Securities shall, to the extent legally
possible, be Frankfurt am Main, Federal
Republic of Germany.
(3)
Interactive Brokers Financial Products S.A
in ihrer Funktion als Emittentin und [•] in
ihren Funktionen als Anbieterin und
Zahlstelle ernennen hiermit [•] als
deutsche
Bevollmächtigte,
an
die
innerhalb
der
Bundesrepublik
Deutschland
im
Rahmen
jedes
Verfahrens aus oder im Zusammenhang
mit den Wertpapieren die Zustellung
bewirkt
werden
kann
(die
Zustellungsbevollmächtigte). Falls, aus
welchem Grund auch immer, die
Zustellungsbevollmächtigte
diese
Funktion nicht mehr ausübt oder keine
Anschrift innerhalb der Bundesrepublik
Deutschland mehr hat, verpflichten sich [•]
eine Ersatz-Zustellungsbevollmächtigte in
der Bundesrepublik Deutschland zu
ernennen. Hiervon unberührt bleibt die
Möglichkeit, die Zustellung in jeder
anderen gesetzlich zulässigen Weise zu
bewirken.
(3)
Interactive Brokers Financial Products S.A
in its role as Issuer and [•] in its roles as
Offeror and Paying Agent hereby appoints
[•] as its agent in the Federal Republic of
Germany to receive service of process in
any proceedings under or in connection
with the Securities in the Federal Republic
of Germany (the Agent of Process). If,
for any reason, such Agent of Process
ceases to act as such or no longer has an
address in the Federal Republic of
Germany, [•] agree to appoint a substitute
agent of process in the Federal Republic
of Germany. Nothing herein shall affect
the right to serve the process in any other
manner permitted by law.
(4)
Sollte
eine
Bestimmung
dieser
Bedingungen
ganz
oder
teilweise
unwirksam sein oder werden, so bleiben
die übrigen Bestimmungen wirksam. Die
unwirksame Bestimmung ist durch eine
wirksame Bestimmung zu ersetzen, die
den
wirtschaftlichen
Zwecken
der
unwirksamen Bestimmung so weit wie
rechtlich
möglich
entspricht.
Entsprechendes gilt für etwaige Lücken in
den Bedingungen.
(4)
If any of the provisions of these
Conditions is or becomes invalid in whole
or in part, the remaining provisions shall
remain valid. The invalid provision shall
be replaced by a valid provision, which, to
the extent legally possible, serves the
economic purposes of the invalid
provision. The same applies to gaps, if
any, in these Conditions.
197
7
FORM OF FINAL TERMS (MUSTER – ENDGÜLTIGE BEDINGUNGEN)
Final Terms
Endgültige Bedingungen
[Date]
[Datum]
[Title of relevant Warrant / Certificate]
[Bezeichnung des betreffenden Optionsscheins / Zertifikats]
[Securities Identification Code(s)]
[Wertpapierkennnummer(n)]
issued pursuant to the
begeben aufgrund des
Warrant and Certificate Programme
Optionsschein- und Zertifikatprogramms
of
der
Issue price [●] (subject to change)
Ausgabepreis [●] (freibleibend)
These Final Terms contain details of an issue of [Warrants] [Certificates] under the Warrant and
Certificate Programme (the Programme) of Interactive Brokers Financial Products S.A. (the
Issuer) dated 25 March 2010. The Final Terms attached to the Base Prospectus dated 25
March 2010 [and supplemented on [●]] are presented in the form of a separate document
containing only the final terms according to Article 26 para. 5 subpara. 2 of the Commission’s
Regulation (EC) No 809/2004 of 29 April 2004 (the Regulation). The Base Prospectus[, any
supplement] and the Final Terms have been published on the website of the Issuer
([www.ibfp.com] [●]).
Diese Endgültigen Bedingungen enthalten Angaben zur Emission von [Optionsscheinen]
[Zertifikaten] unter dem Optionsschein- und Zertifikatprogramm (das Programm) der Interactive
Brokers Financial Products S.A. (die Emittentin) vom 25. März 2010. Die Endgültigen
Bedingungen zum Basisprospekt vom 25. März 2010 [ergänzt um den Nachtrag vom [●]]
werden gemäß Art. 26 Abs. 5 Unterabsatz 2 der Verordnung der Europäischen Kommission
(EG) Nr. 809/2004 vom 29. April 2004 (die Verordnung) in Form eines gesonderten Dokuments
präsentiert. Der Basisprospekt[, Nachträge] und die Endgültigen Bedingungen wurden auf der
Website der Emittentin veröffentlicht ([www.ibfp.com] [●]).
The Final Terms must be read in conjunction with the Base Prospectus [as so supplemented].
[Full information on the Issuer and the offer of the [Warrants] [Certificates] is only available on
the basis of the combination of these Final Terms and the Base Prospectus [as so
198
supplemented].] Capitalised terms not otherwise defined herein shall have the meanings
specified in the Terms and Conditions.
Die Endgültigen Bedingungen müssen in Verbindung mit dem Basisprospekt [ergänzt um
Nachträge] gelesen werden. [Eine vollständige Information über den Emittenten und das
Angebot der [Optionsscheine] [Zertifikate] ist nur möglich, wenn die Endgültigen Bedingungen
und der Basisprospekt [ergänzt um Nachträge] zusammen gelesen werden.] Begriffe, die in den
Wertpapierbedingungen definiert sind, haben, falls die Endgültigen Bedingungen nicht etwas
anderes bestimmen, die gleiche Bedeutung, wenn sie in diesen Endgültigen Bedingungen
verwendet werden.
All references in this Final Terms to numbered Articles and sections are to Articles and sections
of the Terms and Conditions.
Bezugnahmen in diesen Endgültigen Bedingungen auf Paragraphen und Absätze beziehen sich
auf die Paragraphen und Absätze der Wertpapierbedingungen.
The conditions applicable to the [Warrants] [Certificates] in the [German] [English] language (the
Conditions) and the [English] [German] language translation thereof, if any, are attached to
these Final Terms.
Die für die [Optionsscheine] [Zertifikate] geltenden [deutschsprachigen] [englischsprachigen]
Wertpapierbedingungen (die Bedingungen) sowie eine etwaige [englischsprachige]
[deutschsprachige] Übersetzung sind diesen Endgültigen Bedingungen beigefügt.
199
PART I - GENERAL INFORMATION
TEIL I - ALLGEMEINE INFORMATIONEN
1.
Need to obtain individual advice
Notwendigkeit einer individuellen Beratung
The Base Prospectus together with the relevant Final Terms does not constitute advice from the
investor’s bank, a qualified advisor or tax advisor which is essential for the consideration of an
investor’s individual situation before an investment decision is made.
Der Basisprospekt in Verbindung mit den sich darauf beziehenden Endgültigen Bedingungen
ersetzt nicht die zur Berücksichtigung der individuellen Verhältnisse des jeweiligen Anlegers
unerlässliche Beratung vor der Kaufentscheidung durch seine Hausbank oder einen
qualifizieren Berater bzw. seinen Steuerberater.
2.
Disclosure of information
Informationsweitergabe
No person is authorized to disclose information about the Issue or the sale of the [Warrants]
[Certificates] other than the information and/or representations contained in the Final Terms.
Any other such information must not be understood as having been approved of by or on behalf
of the Issuer. With knowledge or receipt of the Final Terms at a specific point in time, it cannot
be assumed at any other point in time that there have not been any changes made to the Final
Terms since their creation.
Niemand ist berechtigt, über die in den Endgültigen Bedingungen enthaltenen Angaben
und/oder Zusicherungen hinausgehende Informationen bezüglich der Emission oder des
Verkaufs der Wertpapiere zu erteilen. Aus derartigen Informationen kann nicht geschlossen
werden, dass sie von oder im Namen der Emittentin genehmigt wurden. Aus der
Kenntnisnahme und/oder Übergabe der Endgültigen Bedingungen zu einem bestimmten
Zeitpunkt kann zu keiner Zeit die Annahme abgeleitet werden, dass sich seit der Erstellung der
Endgültigen Bedingungen keine Änderung hinsichtlich der darin enthaltenen Angaben ergeben
haben.
200
PART II - INFORMATION ON THE UNDERLYING
TEIL II - INFORMATIONEN ÜBER DEN BASISWERT
[Description of the Underlying] (the Underlying).
[Beschreibung des Basiswerts] (der Basiswert).
Information about the performance of the Underlying, in particular, price data can be viewed at
www.ibfp.com. The Issuer does not assume any responsibility or liability for any relevant
contents on the internet page www.ibfp.com.
Die Informationen über die Wertentwicklung des Basiswertes, insbesondere die Kursdaten,
können der Internet-Seite www.ibfp.com entnommen werden. Für alle diesbezüglichen auf der
Internet Seite www.ibfp.com befindlichen Inhalte übernimmt die Emittentin keinerlei
Verantwortung oder Haftung.
Information about volatilities of the Underlying can be obtained from the Internet page
www.ibfp.com. The Issuer does not assume any responsibility or liability for any relevant
contents on the internet page www.ibfp.com.
Informationen über die Volatilitäten des Basiswertes können auf der Internet-Seite
www.ibfp.com abgefragt werden. Für alle diesbezüglichen auf der Internet-Seite www.ibfp.com
befindlichen Inhalte übernimmt die Emittentin keinerlei Verantwortung oder Haftung.
The Issuer does not assume any responsibility for the correct reproduction of the contents of the
aforementioned internet pages and/or in cases the relevant internet page should change. The
contents of the internet pages set forth herein are for information purposes only. The Issuer
does not assume any responsibility and/or warranty as to the accuracy and completeness of the
data. In particular, the price information of the Underlying is only historical data. It is not
indicative of the future performance of the Underlying and must not be used as a basis for
making a decision to invest in the [Warrants] [Certificates].
Die Emittentin übernimmt keine Verantwortung hinsichtlich der korrekten inhaltlichen
Wiedergabe der genannten Internetseiten und/oder für den Fall, dass die entsprechende
Internetseite sich ändern sollte. Die Inhalte auf den hier angegebenen Internetseiten dienen
lediglich als Informationsquelle. Für die inhaltliche Richtigkeit und Vollständigkeit der Daten
übernimmt die Emittentin keine Verantwortung und/oder Gewähr. Insbesondere sind die
Kursinformationen des Basiswertes lediglich historische Daten und lassen keinerlei
Rückschlüsse auf die zukünftige Wertentwicklung des Basiswertes zu und dürfen keine
Grundlage für die Kaufentscheidung der Wertpapiere sein.
201
PART III - RISK FACTORS REGARDING THE UNDERLYING
TEIL III - RISIKOFAKTOREN BEZÜGLICH DES BASISWERTES
[●]
PART IV - INFORMATION ON THE [WARRANTS] [CERTIFICATES]
TEIL IV - INFORMATIONEN ÜBER [OPTIONSSCHEINE] [ZERTIFIKATE]
1.
General Information
Allgemeine Informationen
For product information, the terms of redemption and product-specific risk factors of the
[Warrants] [Certificates] as well as general risk factors investors are requested to read the Base
Prospectus.
Die Angaben zu der Produktinformation und den Rückzahlungsmodalitäten und zu den
produktspezifischen Risikofaktoren der Wertpapiere sowie den allgemeinen Risikofaktoren sind
zwingend dem Basisprospekt zu entnehmen.
2.
[No] Capital Guarantee
[Keine] Kapitalgarantie
The Settlement Amount for the [Warrants] [Certificates] (as defined in the terms and conditions
of the securities under section 1 para.1) is dependent on the development of the Underlying (as
defined in the terms and conditions of the securities under section 2), [in case of a capital
protected Minimum Repayment Amount insert:, but is at least, equal to the capital protected
Minimum Repayment Amount (as defined in the terms and conditions of the securities under
section 2)] [In case no capital protection is provided: There is no capital guarantee.]
Der
Auszahlungsbetrag
für
die
[Optionsscheine]
[Zertifikate]
(wie
in
den
Wertpapierbedingungen unter § 2 Abs.1 definiert) ist von der Entwicklung des Basiswertes
abhängig. [Im Falle eines kapitalgeschützten Mindestrückzahlungsbetrages folgenden Text
einfügen: vorbehaltlich der Zahlung des kapitalgeschützten Mindestrückzahlungsbetrages (wie
in den Wertpapierbedingungen unter § 2 Abs.1 definiert)] [Falls keine Kapitalgarantie besteht:
Es gibt keine Kapitalgarantie.]
3.
Guarantee of obligations of the Issuer
Garantie der Verpflichtungen der Emittentin
The due and punctual settlement in full of all obligations due and owing by the Issuer under the
[Warrants] [Certificates] is unconditionally and irrevocably guaranteed (Guarantee) by IBG LLC
(Guarantor). The Guarantee and the [Warrants] [Certificates] are unsecured and
unsubordinated debt obligations of the Guarantor and the Issuer, respectively, and not of any of
their other affiliates, and will rank pari passu with all other unsecured and unsubordinated
indebtedness of the Guarantor or the Issuer, as the case may be, subject to a preference in
favour of obligations that are subject to any priorities or preferences of the Guarantor or the
Issuer, as the case may be.
IBG LLC (Garantin) hat die unbedingte und unwiderrufliche Garantie (Garantie) für die
ordnungsgemäße, fristgerechte und vollständige Erfüllung aller fälligen Verpflichtungen der
Emittentin aus den [Optionsscheinen] [Zertifikaten] übernommen. Die Garantie und die
202
[Optionsscheine] [Zertifikate] stellen jeweils unbesicherte und nicht nachrangige
Verbindlichkeiten der Garantin bzw. der Emittentin, nicht jedoch eines anderen verbundenen
Unternehmens dar, und die Garantie und die [Optionsscheine] [Zertifikate] stehen jeweils
vorbehaltlich einer Vorrangbestimmung zugunsten anderer Verpflichtungen, für die Vorrangoder Vorzugsbestimmungen bestehen, mit allen sonstigen und nicht nachrangigen
Verbindlichkeiten der Garantin im gleichen Rang.
4.
Issue Date of the Securities
Emissionstermin der Wertpapiere
[●]
5.
Commencement of Offer
Verkaufsbeginn
[●]
6.
Initial Offer Price (price fixing)
Anfänglicher Verkaufspreis (Preisfestsetzung)
[●]
7.
Offer and Issue Volume (Number of Derivative Securities)
Angebots- und Emissionsvolumen (Anzahl der Derivativen Wertpapiere)
[●]
8.
Admission to Trading
Zulassung zum Handel
[●]
9.
Currency of Issue
Währung der Emission
[●]
10.
Time Period, including any possible amendments, during which the offer will be open
Frist – einschließlich etwaiger Änderungen – während der das Angebot vorliegt
[●]
11.
Details of the minimum and/or maximum amount of application (whether in number of
securities or aggregate amount to invest)
Einzelheiten zum Mindest- und/oder Höchstbetrag der Zeichnung (entweder in Form der
derivativen Wertpapiere oder des aggregierten zu investierenden Betrages)
[●]
12.
Method and time limits for paying up the securities and for delivery of the securities
Methode und Fristen für die Bedienung der Wertpapiere und ihre Lieferung
[●]
13.
Manner and date in which results of the offer are to be made public
Art und Weise und Termin, auf die bzw. an dem die Ergebnisse des Angebots offen zu
legen sind
[●]
203
14.
Categories of potential investors to which the securities are offered
Kategorien der potentiellen Investoren, denen die Wertpapiere angeboten werden
[●]
15.
Process for notification to applicants of the amount allotted and indication whether
dealing may begin before notification is made
Verfahren zur Meldung des den Zeichnern zugeteilten Betrags und Angabe ob eine
Aufnahme des Handels vor dem Meldeverfahren möglich ist
[●]
16.
Maturity Date
Fälligkeitstermin
[●]
17.
Potential Conflict of interest
Möglicher Interessenkonflikt
[●]
18.
Placing and Underwriting
Platzierung und Übernahme
[●]
19.
Post Issuance Information
Informationen nach erfolgter Emission
[●]
20.
Additional information on the taxation in countries where the Prospectus is notified
Zusätzliche Information zur Besteuerung in Länder in die der Prospekt notifiziert wird
[●]
21.
Notification
Notifizierung
As of the date of these Final Terms and to the knowledge of the Issuer, the Competent Authority
has been requested to provide a certificate of approval attesting that the Base Prospectus has
been drawn up in accordance with the Prospectus Directive to the competent authorities for
prospectus approval in the following countries:
Zum Zeitpunkt dieser Endgültigen Bedingungen und mit Wissen der Emittentin wurde bei der
zuständigen Behörde beantragt, eine Notifizierung, die bestätigt, dass der Basisprospekt in
Übereinstimmung mit der Prospektrichtlinie erstellt wurde, an die Prospektprüfungsbehörden in
folgenden Ländern durchzuführen:
[●]
22.
Miscellaneous
Verschiedenes
[●]
204
PART V - CONDITIONS OF THE DERIVATIVE SECURITIES
TEIL V WERTPAPIERBEDINGUNGEN FÜR DIE DERIVATIVEN WERTPAPIERE
[●]
205
8
SUBSCRIPTION AND SALE
General
Timber Hill (Europe) AG (THE) and the Issuer entered into a dealer agreement (Dealer
Agreement) and have agreed therein a basis upon which the Dealers may from time to time
agree to purchase Derivative Securities. The Dealer Agreement also provides for the
appointment of further dealers (each of THE and such further dealers a Dealer).
No action has been taken in any jurisdiction that would permit a public offering of any of the
Derivative Securities, or possession or distribution of the Base Prospectus or any other offering
material or any Final Terms, in any country or jurisdiction where action for that purpose is
required. Each Dealer appointed will represent and agree that it will comply with all relevant
laws and directives in each jurisdiction in which it purchases, offers, sells, or delivers Derivative
Securities or has in its possession or distributes the Base Prospectus or any other offering
material and will obtain any consent, approval or permission required by it for the purchase,
offer or sale by it of the Derivative Securities under the laws and directives in force in any
jurisdiction to which it is subject or in which it makes such purchases, offers or sales, in all
cases at its own expense, and neither the Issuer nor any other Dealer shall have responsibility
for this.
These selling restrictions may be modified by the agreement of the Issuer and the Dealers, if
any, inter alia, following a change in a relevant law, regulation or directive. Any such
modification will be set out in the Final Terms issued in respect of the issue of Derivative
Securities to which it relates or in a supplement to this Base Prospectus.
The Issuer and, if any, each Dealer will comply with all applicable securities laws and
regulations in force in any jurisdiction in which it purchases, offers, sells or delivers Derivative
Securities or possesses or distributes the Base Prospectus and will obtain any consent,
approval or permission required by it for the purchase, offer, sale or delivery by it of Derivative
Securities under the laws and regulations in force in any jurisdiction to which it is subject or in
which it makes such purchases, offers, sales or deliveries and neither the Issuer nor any other
Dealer, if any, shall have any responsibility therefore.
Neither the Issuer nor any of the Dealers, if any, represent that Derivative Securities may at any
time lawfully be sold in compliance with any applicable registration or other requirements in any
jurisdiction, or pursuant to any exemption available thereunder, or assumes any responsibility
for facilitating such sale.
The Derivative Securities are freely transferable. Offers and sales of Derivative Securities
issued under this Programme are subject to the selling restrictions applicable in the jurisdictions
where the Derivative Securities are offered or sold. The selling restrictions in respect of such
jurisdictions as are parties to the Agreement on the European Economic Area (EEA), the United
States, UK and Luxembourg are set out below.
With regard to each Tranche, the Issuer and the Relevant Dealer, if any, will be required to
comply with such other additional restrictions as shall be set out in the relevant Final Terms.
EEA States
In relation to each Member State of the European Economic Area which has implemented the
Prospectus Directive (each, a Relevant Member State), each Dealer, if any, has represented
and agreed, and each further Dealer appointed under the Programme will be required to
represent and agree, that with effect from and including the date on which the Prospectus
Directive is implemented in that Relevant Member State (the Relevant Implementation Date) it
has not made and will not make an offer of Derivative Securities which are the subject of the
offering contemplated by this Base Prospectus as completed by the final terms in relation
thereto to the public in that Relevant Member State except that it may, with effect from and
206
including the Relevant Implementation Date, make an offer of such Derivative Securities to the
public in that Relevant Member State:
(a) if the final terms in relation to the Derivative Securities specify that an offer of those
Derivative Securities may be made other than pursuant to Article 3(2) of the Prospectus
Directive in that Relevant Member State (a Non-exempt Offer), in the period beginning
on the date after the date of publication of a prospectus in relation to such Derivative
Securities which has been approved by the competent authority in that Relevant
Member State or, where appropriate, approved in another Relevant Member State and
notified to the competent authority in that Relevant Member State, provided that any
such prospectus has subsequently been completed by the final terms contemplating
such Non-exempt Offer, in accordance with the Prospectus Directive, and ending on the
date specified in such prospectus or final terms, as applicable;
(b) at any time to legal entities which are authorised or regulated to operate in the financial
markets or, if not so authorised or regulated, whose corporate purpose is solely to
invest in securities;
(c)
at any time to any legal entity which has two or more of (1) an average of at least 250
employees during the last financial year; (2) a total balance sheet of more than EUR
43,000,000 and (3) an annual net turnover of more than EUR 50,000,000, as shown in
its last annual or consolidated accounts;
(d) at any time to fewer than 100 natural or legal persons (other than qualified investors as
defined in the Prospectus Directive) subject to obtaining the prior consent of the
relevant Dealer or Dealers, if any, nominated by the Issuer for any such offer; or
(e) at any time in any other circumstances falling within Article 3(2) of the Prospectus
Directive,
provided that no such offer of Derivative Securities referred to in (b) to (e) above shall require
the Issuer or any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus
Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.
For the purposes of this provision, the expression an "offer of Derivative Securities to the public"
in relation to any Derivative Securities in any Relevant Member State means the communication
in any form and by any means of sufficient information on the terms of the offer and the
Derivative Securities to be offered so as to enable an investor to decide to purchase or
subscribe the Derivative Securities, as the same may be varied in that Member State by any
measure implementing the Prospectus Directive in that Member State and the expression
"Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing
measure in each Relevant Member State.
United States
The Derivative Securities, the Guarantee and the securities, if any, to be delivered upon any
exercise of the Derivative Securities have not been and will not be registered under the
Securities Act, and may not be offered or sold within the United States or to, or for the account
or benefit of, U.S. Persons except in certain transactions exempt from the registration
requirements of the Securities Act. Terms used in this paragraph have the meanings given to
them by Regulation S.
Trading in the Derivative Securities has not been approved by the U.S. Commodity Futures
Trading Commission under the U.S. Commodity Exchange Act, as amended. The Derivative
Securities are being offered and sold outside the United States to non-U.S. Persons pursuant to
Regulation S and may not be legally or beneficially owned at any time by any U.S. Person.
The Derivative Securities are subject to U.S. tax law requirements and may not be offered, sold
or delivered in the United States or its possessions or to U.S. Persons except in certain
transactions permitted by the U.S. tax regulations. Terms used in this paragraph have the
207
meanings given to them by the United States Internal Revenue Code of 1986, as amended, and
any regulations made thereunder.
The Dealer, if any, has agreed and each further bank appointed as Dealer will agree that,
except as permitted by the Subscription Agreement, it will not offer, sell or deliver Derivative
Securities or the securities, if any, to be delivered upon any exercise of the Derivative Securities
(i) as part of their distribution at any time or (ii) otherwise, in the case of Certificates within 40
days after completion of the distribution, or in the case of Warrants within in one year after the
completion of the distribution, within the United States or to, or for the account or benefit of, U.S.
Persons. The Dealer has agreed and each further bank appointed as Dealer will agree that it (i)
has represented, as a condition to acquiring any interest in the Derivative Securities, that
neither it nor any person for whose account or benefit the Derivative Securities are being
acquired is a U.S. Person and (ii) it will have sent to each Dealer to which it sells Derivative
Securities or securities, if any, to be delivered upon any exercise of the Derivative Securities
during the relevant distribution compliance period for distribution a confirmation or other notice
setting out the restrictions on offers and sales of the Derivative Securities or securities, as the
case may be, within the United States or to, or for the account or benefit of, U.S. Persons.
Terms used in this paragraph have the meanings given to them by Regulation S under the
Securities Act.
In addition, until 40 days of the commencement of the issuance of Derivative Securities, an offer
or sale of Derivative Securities or securities, if any, to be delivered upon any exercise of the
Derivative Securities within the United States by any dealer not participating in the issuance
may violate the registration requirements of the Securities Act.
United Kingdom
Each Dealer appointed will represent, warrant and agree that:
(1)
in relation to any Derivative Securities which must be redeemed before the first
anniversary of the date of their issue, (a) it is a person whose ordinary activities involve it
in acquiring, holding, managing or disposing of investments (as principal or agent) for the
purposes of its business and (b) it has not offered or sold and will not offer or sell any
Derivative Securities other than to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments (as principal or agent) for the
purposes of their businesses or who it is reasonable to expect will acquire, hold, manage
or dispose of investments (as principal or agent) for the purposes of their businesses
where the issue of the Derivative Securities would otherwise constitute a contravention of
section 19 of the Financial Services and Markets Act 2000 (the FSMA) by the relevant
Issuer;
(2)
it has only communicated or caused to be communicated and will only communicate or
cause to be communicated any invitation or inducement to engage in investment activity
(within the meaning of section 21 of the FSMA) received by it in connection with the issue
or sale of any Derivative Securities in circumstances in which section 21(1) of the FSMA
does not apply to the relevant Issuer; and
(3)
it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to such Derivative Securities in, from or otherwise involving
the United Kingdom.
208
9
TAXATION
SPECIFIC DISCLOSURE ON TAXATION IN LUXEMBOURG
Prospective purchasers of Derivatives Securities should be aware that transactions involving
the Derivatives Securities, including the issue, any purchase or disposal of or other dealings in
the Derivatives Securities and any transaction involved in the exercise and settlement of the
Derivatives Securities, may have tax consequences (including but not limited to possible
liabilities to stamp duties, transfer and registration taxes). The tax consequences may depend,
amongst other things, upon the status of the prospective purchaser and the terms and
conditions of the particular Warrant or Certificate.
The statements herein regarding tax considerations in Luxembourg are based on the laws in
force in the Grand Duchy of Luxembourg as of the date of this Base Prospectus and are subject
to any changes in law.
The following chapter does not purport to be a comprehensive description of all the Luxembourg
tax considerations which may be relevant to a decision to purchase, own or dispose of the
Derivative Securities. In particular, this chapter does not describe all the tax consequences for a
holder of Derivatives Securities that are redeemable in exchange for, or convertible into, shares.
Each prospective holder or beneficial owner of the Derivatives Securities should consult
its tax advisor as to the Luxembourg tax consequences of the ownership and disposition
of the Derivative Securities and of any transaction involving the Derivative Securities.
Luxembourg tax residency of the holders of the Derivative Securities
A holder of the Derivatives Securities will not become resident, or be deemed to be resident, in
Luxembourg by reason only of the holding of the Derivative Securities, or the execution,
performance, delivery and/or enforcement of the Derivative Securities.
Income taxation of the holders of the Derivatives Securities
Taxation of Luxembourg non-residents
Holders of the Derivative Securities who are non-residents of Luxembourg and who have
neither a permanent establishment nor a fixed base of business in Luxembourg with which the
holding of the Derivative Securities is connected are generally not liable to any Luxembourg
income tax, whether they receive payments of principal, payments of interest (including accrued
but unpaid interest), payments received upon the redemption of the Derivative Securities, or
realize capital gains on the sale of any Derivative Securities.
Taxation of Luxembourg residents - General
Holders of the Derivative Securities who are residents of Luxembourg, or non-resident holders
of the Derivative Securities who have a permanent establishment or a fixed base of business in
Luxembourg with which the holding of the Derivative Securities is connected, must, for income
tax purposes, include any income received in their taxable income. They will not be liable to any
Luxembourg income tax on repayment of principal.
Luxembourg resident individuals
Luxembourg resident individuals who are holders of the Derivative Securities and who are
acting in the course of the management of their private wealth are not subject to taxation on
capital gains upon the disposal of the Derivative Securities, unless the disposal of the Derivative
Securities precedes the acquisition of the Derivative Securities or the Derivative Securities are
disposed of within six months of the date of acquisition of these Derivative Securities. Upon
redemption of the Derivative Securities, individual Luxembourg resident holders of the
209
Derivative Securities must however include the portion of the redemption price corresponding to
accrued but unpaid interest, if any, in their taxable income.
Luxembourg resident companies – permanent establishments
Luxembourg resident companies (sociétés de capitaux) that are holders of the Derivative
Securities or foreign entities which have a permanent establishment in Luxembourg with which
the holding of the Derivative Securities is connected, must include in their taxable income being
the difference between the price for which the Derivative Securities have been disposed of and
the lower of their cost or book value.
Luxembourg resident companies benefiting from a special tax regime
Holders of the Derivative Securities who are holding companies subject to the law of 31 July
1929, specialized investment funds governed by the law of 13 February 2007, family estate
holding companies (sociétés de gestion de patrimoine familial) governed by the law of 11 May
2007 or undertakings for collective investment subject to the law of 20 December 2002 are tax
exempt entities in Luxembourg, and are thus not subject to any Luxembourg tax (i.e. corporate
income tax, municipal business tax and net wealth tax) other than the subscription tax
calculated on their share capital or net asset value.
Withholding tax
Subject to the below exceptions, as a general rule, there is no withholding tax for Luxembourg
residents and non resident holders of the Derivative Securities on payments of interest (if any)
in respect of the Derivative Securities, nor is any Luxembourg withholding tax payable on
payments received upon repayment of the principal or upon an exchange of Derivative
Securities. As a first exception, in certain circumstances a withholding tax may be required to be
made upon such payments pursuant to European Council Directive 2003/48/EC (the Tax
Savings Directive) i.e. mainly for payments made to individuals. Under the Tax Savings
Directive, each EU Member State (a Member State) generally must provide to the tax
authorities of another Member State details of interest payments or similar income paid by a
Paying Agent within its jurisdiction to a Residual Entity or to or for an individual (the Beneficial
Owner) established or resident in the latter Member State, although certain Member States
(including Luxembourg) are entitled to apply a withholding tax system during a transitional
period. The transitional period commenced 1 July 2005 and will terminate at the end of the first
full fiscal year after the EU and certain non-EU states reach an agreement on the exchange of
such information. The Tax Savings Directive was implemented into Luxembourg law by a law of
21 June 2005 which is in effect as of 1 July 2005. Due to certain bilateral agreements, relevant
dependant and associated territories and certain non-EU States apply similar measures as of
the same date.
According to the law of 21 June 2005 and bilateral agreements concluded by Luxembourg with
relevant dependant and associated territories and certain non-EU States, during the transitional
period, a Luxembourg Paying Agent may be required to withhold taxes on certain payments to
Residual Entities or to, or for the benefit of, Beneficial Owners established or resident in an EU
Member State or in any of the relevant dependant and associated territories at a rate of 20%
(applying rate since 1 July 2008, increasing to 35% as from 1 July 2011), unless the Beneficial
Owner has opted for an exchange of information or has provided a tax certificate.
For the purpose of this section, the terms Paying Agent, Interest and Beneficial Owner shall
mean respectively agent payeur, intérêt and bénéficiaire effectif as these terms are defined
in the law of 21 June 2005, and Residual Entity shall refer to the entities described in article
4.2 of the same law.
Another exception has been implemented by a law of 23 December 2005, effective as of 1
January 2006, which introduced a withholding tax of 10% on interest payments made to
Luxembourg individual residents by a Luxembourg paying agent.
210
Net Wealth Tax
Luxembourg net wealth tax will not be levied on a holder of the Derivative Securities, unless (i)
such holder is a Luxembourg resident company or (ii) the Derivative Securities are attributable
to an enterprise or part thereof which is carried on in Luxembourg through a permanent
establishment or (iii) the Derivative Securities are attributable to a fixed base of business in
Luxembourg of their holder.
Other Taxes
There is no Luxembourg registration tax, stamp duty or any other similar tax or duty payable in
Luxembourg by holders of the Derivative Securities as a consequence of the issuance of the
Derivative Securities, nor will any of these taxes be payable as a consequence of a subsequent
transfer, redemption or exchange of the Derivative Securities.
There is no Luxembourg value added tax payable in respect of payments in consideration for
the issuance of the Derivative Securities or in respect of the payment of interest or principal
under the Derivative Securities or the transfer of the Derivative Securities.
Under Luxembourg tax law, where an individual holder of Derivative Securities is a resident of
Luxembourg for inheritance tax purposes at the time of his/her death, the Derivative Securities
are included in his or her taxable basis for inheritance tax purposes.
Gift tax may be due on a gift or donation of Derivative Securities, if recorded in a Luxembourg
notarial deed or otherwise registered in Luxembourg.
No gift, estate or inheritance tax is levied on the transfer of the Derivative Securities upon death
of a holder in cases where the deceased was not a resident of Luxembourg for inheritance tax
purposes.
SPECIFIC DISCLOSURE ON TAXATION IN GERMANY REGARDING THE WARRANTS
The following chapter does not consider all aspects of income taxation in the Federal Republic
of Germany (Germany) that may be relevant to a Securityholder in the light of its particular
circumstances and income tax situation. This overview applies to investors holding the Warrants
as investment assets (except where explicitly stated otherwise) and is not intended to be, nor
should it be construed to be, legal or tax advice.
This discussion is based on German tax laws and regulations, all as currently in effect (except
where explicitly stated otherwise) and all subject to change at any time, possibly with retroactive
effect.
Prospective Securityholders should consult their own tax advisers as to the particular
tax consequences to them of subscribing, purchasing, holding and disposing of the
Warrants, including the application and effect of state, local, foreign and other tax laws
and the possible effects of changes in the tax laws of the Federal Republic of Germany.
German resident Securityholders
Capital gains from disposal or exercise of the Warrants
Subject to the tax-allowance (Sparer-Pauschbetrag) for investment income (Einkünfte aus
Kapitalvermögen) described below, capital gains from the sale or exercise of the Warrants held
as private assets (Privatvermögen) are taxed as investment income at a 25% flat tax
(Abgeltungsteuer) (plus a 5.5 % solidarity surcharge thereon and, if applicable to the individual
investor, church tax). The capital gain is generally determined as the difference between the
proceeds from the sale or exercise of the Warrants and the acquisition costs. Expenses directly
related to the sale or exercise are taken into account. Otherwise, the deduction of related
expenses for tax purposes is not possible.
211
Where the Warrants are denominated in a currency other than Euro, the acquisition costs and
the proceeds from the sale or exercise is computed in Euro, each at the time of the acquisition,
sale or exercise, respectively.
Capital losses from the Warrants held as private assets are tax-recognized irrespective of the
holding period of the Warrants. The losses may, however, not be used to offset other income
like employment or business income but may only be offset against investment income subject
to certain limitations. Losses not utilized in one year may be carried forward into subsequent
years but may not be carried back into preceding years. The tax authorities may take the view
that losses upon expiration (as opposed to sale or exercise) of the Warrants are not taxdeductible.
The flat tax shall generally satisfy the individual investor’s tax liability with respect to the
Warrants. Under certain circumstances, however, the investment income under the Warrants
may (have to) be included in the investor’s income tax return. The investor may, for example,
opt for the inclusion in its income tax return if the individual investor’s total income tax liability on
all taxable income including the investment income determined on progressive income tax rates
is less than the amount of income tax the investor owed had the investment income been taxed
separately under the flat tax regime (i.e., most favoured treatment). The investor may also opt
for inclusion of investment income in its income tax return if the aggregated amount of tax
withheld on investment income during the year exceeded the investor’s aggregated flat tax
liability on investment income (e.g., because of an available loss carry forward or a foreign tax
credit). The investor will have to include the investment income in its tax return if the amount of
tax withheld on such investment income falls short of the investor’s flat tax liability. Individual
investor’s are entitled to a tax allowance for investment income of 801 Euro per year (1,602
Euro for married couples filing their tax return jointly). The tax allowance is considered for
purposes of the withholding tax (see succeeding paragraph – Withholding tax) if the investor
files a withholding tax exemption request (Freistellungsauftrag) with the respective bank or
financial institution where the securities deposit account to which the Warrants are allocated is
held. The deduction of related expenses for tax purposes is not possible.
If the Warrants are held as business assets (Betriebsvermögen) by an individual or corporate
investor that is tax resident in Germany, capital gains from the Warrants are subject to personal
or corporate income tax (plus solidarity surcharge thereon) and trade tax. The trade tax liability
depends on the applicable trade tax factor of the relevant municipality where the business is
located. In case of an individual investor the trade tax may, however, be partially or fully
creditable against the investor’s personal income tax liability depending on the applicable trade
tax factor and the investor’s particular circumstances. The capital gains will have to be included
in the investor’s personal or corporate income tax return. Any German withholding tax (including
surcharges) is generally fully creditable against the investor’s personal or corporate income tax
liability or refundable, as the case may be. Losses from the Warrants may only be offset against
derivative income in the current or in following years, subject to minimum taxation if not offset in
the current year.
Withholding tax
If the Warrants are kept or administered in a domestic securities deposit account by a German
credit or financial services institution (or by a German branch of a foreign credit or financial
services institution), or by a German securities trading firm (Wertpapierhandelsunternehmen) or
a German securities trading bank (Wertpapierhandelsbank) (altogether the Domestic Paying
Agent) since their acquisition, a 25% withholding tax, plus a 5.5% solidarity surcharge thereon,
is levied on the capital gains, resulting in a total withholding tax charge of 26.375%. If the
Warrants were sold or exercised after being transferred to another securities deposit account,
the 25% withholding tax (plus solidarity surcharge thereon) would be levied on 30% of the
proceeds from the sale or the exercise, as the case may be, unless the investor or the previous
account bank was able and allowed to provide evidence for the investor’s actual acquisition
costs to the new Domestic Paying Agent. The applicable withholding tax rate is in excess of the
aforementioned rate if church tax is collected for the individual investor.
212
Non-German resident Securityholders
Income derived from the Warrants by Securityholders who are not tax resident in Germany is in
general exempt from German income taxation, and no withholding tax shall be withheld,
provided however (i) the Warrants are not held as business assets of a German permanent
establishment of the investor or by a permanent German representative of the investor, (ii) the
income derived from the Warrants does not otherwise constitute German source income (such
as income from the letting and leasing of certain property located in Germany) or (iii) the
Warrants are not presented for payment or credit at the offices of a German credit or financial
services institution including a German branch of a foreign credit or financial services institution
(over-the-counter transaction).
If the income derived from the Warrants is subject to German taxation according to (i) to (iii)
above, such income is subject to withholding tax similar to that described above under the
paragraph Withholding tax.
Under certain circumstances, foreign investors may benefit from tax reductions or tax
exemptions under applicable double tax treaties (Doppelbesteuerungsabkommen) entered into
with Germany.
Inheritance tax / gift tax
The transfer of Warrants to another person by way of gift or inheritance is subject to German gift
or inheritance tax, respectively, if
(i)
the testator, the donor, the heir, the donee or any other acquirer had his residence,
habitual abode or, in case of a corporation, association (Personenvereinigung) or estate
(Vermögensmasse), had its seat or place of management in Germany at the time of the
transfer of property,
(ii)
except as provided under (i), the testator’s or donor’s Warrants belong to a business
asset attributable to a permanent establishment or a permanent representative in
Germany,
Special regulations apply to certain German expatriates.
Investors are urged to consult with their tax advisor to determine the particular inheritance or gift
tax consequences in light of their particular circumstances.
Other taxes
The purchase, sale or other disposal of Warrants does not give rise to capital transfer tax, value
added tax, stamp duties or similar taxes or charges in Germany. However, under certain
circumstances entrepreneurs may choose liability to value added tax with regard to the sales of
Warrants which would otherwise be tax exempt. Net wealth tax (Vermögensteuer) is, at present,
not levied in Germany.
Investment Tax Act
The Warrants should not qualify as units in a foreign investment fund within the meaning of the
German Investment Act (Investmentgesetz). Therefore, the Warrants should not incur the
application of the special tax regime under the German Investment Tax Act
(Investmentsteuergesetz).
European directive on the taxation of savings income
On 3 June 2003 the Economic and Financial Affairs Council of the European Union (ECOFIN
Council) adopted directive 2003/48/EC on taxation of savings income in the form of interest
payments (Savings Directive). Under the Savings Directive and from 1 July 2005, each EU
Member State is required to provide the tax authorities of another Member State with details of
213
payments of interest and other similar income paid by a person in one Member State to an
individual resident in another Member State. Austria, Belgium and Luxembourg must instead
impose a withholding tax for a transitional period unless during such period they elect to
participate in the information exchange.
SPECIFIC DISCLOSURE ON TAXATION IN GERMANY REGARDING CERTIFICATES
The following chapter does not consider all aspects of income taxation in the Federal Republic
of Germany (Germany) that may be relevant to a Securityholder in the light of its particular
circumstances and income tax situation. This overview applies to investors holding the
Certificates as investment assets (except where explicitly stated otherwise) and is not intended
to be, nor should it be construed to be, legal or tax advice.
This discussion is based on German tax laws and regulations, all as currently in effect (except
where explicitly stated otherwise) and all subject to change at any time, possibly with retroactive
effect.
Prospective Securityholders should consult their own tax advisers as to the particular
tax consequences to them of subscribing, purchasing, holding and disposing of the
Certificates, including the application and effect of state, local, foreign and other tax laws
and the possible effects of changes in the tax laws of the Federal Republic of Germany.
German resident Securityholders
Capital gains from disposal or redemption of the Certificates
Subject to the tax-allowance (Sparer-Pauschbetrag) for investment income (Einkünfte aus
Kapitalvermögen) described below, capital gains from the sale or redemption of the Certificates
held as private assets (Privatvermögen) are taxed as investment income at a 25% flat tax
(Abgeltungsteuer) (plus a 5.5% solidarity surcharge thereon and, if applicable to the individual
investor, church tax). The capital gain is generally determined as the difference between the
proceeds from the sale or redemption of the Certificates and the acquisition costs. Expenses
directly related to the sale or redemption are taken into account. Otherwise, the deduction of
related expenses for tax purposes is not possible.
Where the Certificates are denominated in a currency other than Euro, the acquisition costs and
the proceeds from the sale or redemption is computed in Euro, each at the time of the
acquisition, sale or redemption, respectively.
Capital losses from the Certificates held as private assets are tax-recognized irrespective of the
holding period of the Certificates. The losses may, however, not be used to offset other income
like employment or business income but may only be offset against investment income subject
to certain limitations. Losses not utilized in one year may be carried forward into subsequent
years but may not be carried back into preceding years.
The flat tax shall generally satisfy the individual investor’s tax liability with respect to the
Certificates. Under certain circumstances, however, the investment income under the
Certificates may (have to) be included in the investor’s income tax return. The investor may, for
example, opt for the inclusion in its income tax return if the individual investor’s total income tax
liability on all taxable income including the investment income determined on progressive
income tax rates is less than the amount of income tax the investor owed had the investment
income been taxed separately under the flat tax regime (i.e., most favoured treatment). The
investor may also opt for inclusion of investment income in its income tax return if the
aggregated amount of tax withheld on investment income during the year exceeded the
investor’s aggregated flat tax liability on investment income (e.g., because of an available loss
carry forward or a foreign tax credit). The investor will have to include the investment income in
its tax return if the amount of tax withheld on such investment income falls short of the investor’s
flat tax liability. Individual investor’s are entitled to a tax allowance for investment income of 801
Euro per year (1,602 Euro for married couples filing their tax return jointly). The tax allowance is
214
considered for purposes of the withholding tax (see succeeding paragraph – Withholding tax) if
the investor files a withholding tax exemption request (Freistellungsauftrag) with the respective
bank or financial institution where the securities deposit account to which the Certificates are
allocated is held. The deduction of related expenses for tax purposes is not possible.
If the Certificates are held as business assets (Betriebsvermögen) by an individual or corporate
investor that is tax resident in Germany, capital gains from the Certificates are subject to
personal or corporate income tax (plus solidarity surcharge thereon) and trade tax. The trade
tax liability depends on the applicable trade tax factor of the relevant municipality where the
business is located. In case of an individual investor the trade tax may, however, be partially or
fully creditable against the investor’s personal income tax liability depending on the applicable
trade tax factor and the investor’s particular circumstances. The capital gains will have to be
included in the investor’s personal or corporate income tax return. Any German withholding tax
(including surcharges) is generally fully creditable against the investor’s personal or corporate
income tax liability or refundable, as the case may be.
Withholding tax
If the Certificates are kept or administered in a domestic securities deposit account by a
German credit or financial services institution (or by a German branch of a foreign credit or
financial
services
institution),
or
by
a
German
securities
trading
firm
(Wertpapierhandelsunternehmen)
or
a
German
securities
trading
bank
(Wertpapierhandelsbank) (altogether the Domestic Paying Agent) since their acquisition, a
25% withholding tax, plus a 5.5% solidarity surcharge thereon, is levied on the capital gains,
resulting in a total withholding tax charge of 26.375% If the Certificates were sold or redeemed
after being transferred to another securities deposit account, the 25% withholding tax (plus
solidarity surcharge thereon) would be levied on 30% of the proceeds from the sale or the
redemption, as the case may be, unless the investor or the previous account bank was able and
allowed to provide evidence for the investor’s actual acquisition costs to the new Domestic
Paying Agent. The applicable withholding tax rate is in excess of the aforementioned rate if
church tax is collected for the individual investor.
Non-German resident Securityholders
Income derived from the Certificates by Securityholders who are not tax resident in Germany is
in general exempt from German income taxation, and no withholding tax shall be withheld,
provided however (i) the Certificates are not held as business assets of a German permanent
establishment of the investor or by a permanent German representative of the investor, (ii) the
income derived from the Certificates does not otherwise constitute German source income
(such as income from the letting and leasing of certain property located in Germany) or (iii) the
Certificates are not presented for payment or credit at the offices of a German credit or financial
services institution including a German branch of a foreign credit or financial services institution
(over-the-counter transaction).
If the income derived from the Certificates is subject to German taxation according to (i) to (iii)
above, such income is subject to withholding tax similar to that described above under the
paragraph Withholding tax.
Under certain circumstances, foreign investors may benefit from tax reductions or tax
exemptions under applicable double tax treaties (Doppelbesteuerungsabkommen) entered into
with Germany.
Inheritance tax / gift tax
The transfer of Certificates to another person by way of gift or inheritance is subject to German
gift or inheritance tax, respectively, if
(i)
the testator, the donor, the heir, the donee or any other acquirer had his residence,
habitual abode or, in case of a corporation, association (Personenvereinigung) or estate
215
(Vermögensmasse), had its seat or place of management in Germany at the time of the
transfer of property,
(ii)
except as provided under (i), the testator’s or donor’s Certificates belong to a business
asset attributable to a permanent establishment or a permanent representative in
Germany,
Special regulations apply to certain German expatriates.
Investors are urged to consult with their tax advisor to determine the particular inheritance or gift
tax consequences in light of their particular circumstances.
Other taxes
The purchase, sale or other disposal of Certificates does not give rise to capital transfer tax,
value added tax, stamp duties or similar taxes or charges in Germany. However, under certain
circumstances entrepreneurs may choose liability to value added tax with regard to the sales of
Certificates which would otherwise be tax exempt. Net wealth tax (Vermögensteuer) is, at
present, not levied in Germany.
Investment Tax Act
The Certificates should not qualify as units in a foreign investment fund within the meaning of
the German Investment Act (Investmentgesetz). Therefore, the Certificates should not incur the
application of the special tax regime under the German Investment Tax Act
(Investmentsteuergesetz).
European directive on the taxation of savings income
On 3 June 2003 the Economic and Financial Affairs Council of the European Union (ECOFIN
Council) adopted directive 2003/48/EC on taxation of savings income in the form of interest
payments (Savings Directive). Under the Savings Directive and from 1 July 2005, each EU
Member State is required to provide the tax authorities of another Member State with details of
payments of interest and other similar income paid by a person in one Member State to an
individual resident in another Member State. Austria, Belgium and Luxembourg must instead
impose a withholding tax for a transitional period unless during such period they elect to
participate in the information exchange.
216
10
GENERAL DESCRIPTION OF THE PROGRAMME
OFFER AND ISSUE VOLUME
The volume of the issue/offer will be specified in the Final Terms. If the offered amount cannot
be specified in the Final Terms, the date and the manner of calculation and publication of the
definitive amount of the offer will be set out in the Final Terms.
ISSUE PROCEDURES IN RESPECT OF DERIVATIVE SECURITIES
This Base Prospectus contains complete information regarding the risk factors (except with
regard to the Underlying), the Issuer, the Guarantor and a summary with regard to this
information. The Issuer and the relevant Dealer(s) will agree on the terms and conditions
applicable to each particular Tranche of Derivative Securities (the Conditions). The rights and
obligations of the Investor will be set out in the provisions of the Final Terms (the Final Terms)
only. The Final Terms will not constitute a separate document, but a completion and
supplement to the Base Prospectus. The information contained in the Base Prospectus and the
Final Terms is binding. The Final Terms reflect the peculiarities of the respective Underlying,
and will inter alia provide for adjustments with regard to events that concern the Underlying.
The information contained in this Base Prospectus with regard to the Derivative Securities and
the risk factors is applicable to the respective Warrants or Certificates (as the case may be) regardless of the respective Underlying.
The Final Terms relating to each Tranche of Derivative Securities will specify whether the
German language version or the English language version is the controlling language of the
Conditions.
The Conditions will be attached to each Global Note representing Derivative Securities of the
relevant Series.
POST-ISSUANCE INFORMATION
The Final Terms will specify whether the Issuer will provide post-issuance information and, if so,
the manner of information and where such information can be obtained.
AUTHORISATION
The establishment of the Programme was authorised by the Board of Directors (Vorstand) of
the Issuer on 25 November 2009.
USE OF PROCEEDS
The net proceeds from each issue will be used for general financing purposes of the Issuer
(including hedging arrangements).
APPROVAL AND NOTIFICATON OF BASE PROSPECTUS
Approval of this Base Prospectus pursuant to Article 13 of the Directive 2003/71/EC and the
German Securities Prospectus Act has only been sought from the BaFin as the Competent
Authority and from no other competent authority in another Member State of the European
Union or any other State which has or will implement the Prospectus Directive. The BaFin has
approved this Base Prospectus pursuant to § 13 paragraph (1) sentence 2 of the German
Securities Prospectus Act, which requires the scrutiny of the Base Prospectus in relation to its
completeness, coherence and comprehensibility.
217
As at the date of this Base Prospectus, a notification of the Base Prospectus pursuant to
Articles 17 and 18 of the Prospectus Directive to the United Kingdom has been applied for. In
addition, the Issuer may request the Competent Authority to provide competent authorities in
additional host Member States within the European Union with a notification pursuant to Articles
17 and 18 of the Prospectus Directive.
DISPLAY DOCUMENTS
Throughout the life of this Prospectus (and the duration of the Programme), paper copies of the
following documents may be inspected at the specified office of the Fiscal and Paying Agent, in
each case during usual business hours, on any weekday (Saturday and public holidays
excepted) at any time whilst any Note is outstanding:
(i)
the Articles of Association (Satzung) of the Issuer and the Amended and
Restated Operating Agreement (Gesellschaftsvertrag) of the Guarantor;
(ii)
the audited financial statement of the Issuer for the period between 8 January
2009 and 31 December 2009;
(iii)
the audited consolidated financial statements of the Guarantor for the periods
ended 31 December 2008 and 31 December 2009;
(iv)
this Base Prospectus and any Final Terms or supplements hereto (excluding the
Final Terms in connection with Derivative Securities not listed on any stock
exchange);
(v)
the Guarantee of the Guarantor dated 25 November 2009.
All Documents have been published on the website of the Issuer at www.ibfp.com.
11
IMPORTANT NOTICE ABOUT THIS BASE PROSPECTUS
Responsibilities of the Issuer
The Issuer, Interactive Brokers Financial Products S.A., with its registered office in Luxembourg,
Grand Duchy of Luxembourg, accepts responsibility for the information contained in, or (if
applicable) incorporated into this Base Prospectus. The Issuer hereby declares that all
information contained in this Base Prospectus is true and accurate to the knowledge of the
Issuer and that no material circumstances have been omitted.
The Issuer hereby declares that, having taken all reasonable care to ensure that such is the
case, the information contained in this Prospectus is, to the best of its knowledge, in
accordance with the facts and contains no omissions likely to affect its import.
Third Party Information
The Issuer confirms that, where information has been sourced from a third party, this
information has been accurately reproduced and that as far as the Issuer is aware and able to
ascertain from information published by that third party, no facts have been omitted which would
render the reproduced information inaccurate or misleading.
All information in relation to the Guarantor in sections 1.2, 1.5, 2.2, 2.5, 3.1, 5 and Annex II of
this prospectus has been obtained from the Guarantor.
Underwriting
The Derivative Securities issued under this Programme may be placed by a group (syndicate) of
underwriting institutions, by individual (non-syndicated) institutions or directly by the Issuer.
Such institutions may be members of a group of institutions underwriting an issue of Derivative
218
Securities or may underwrite Derivative Securities on the basis of a bilateral agreement.
However, the Issuer may appoint other or further institutions for the purpose of underwriting
Derivative Securities as dealers under the Programme (the Dealers) or as dealers to underwrite
single tranches (the Managers). In the event of underwriting by one or more institutions, the
names and addresses of those institutions will be specified in the Final Terms.
Subscription
If Derivative Securities are underwritten by a group of underwriting institutions or by individual
institutions, the Issuer will enter into a subscription agreement with such institution for the
purpose of underwriting. The underwriting institutions will receive a commission for the
underwriting and placing, if any, of the Derivative Securities, details of such commission will be
set forth in the Final Terms. The Issuer will make certain representations and warranties to the
institutions in the subscription agreement and will agree to be liable for any damage or loss
incurred by the institutions in connection with a breach of such representations and warranties.
Restriction on Distribution
The distribution of this Base Prospectus and of any Final Terms and the offering of the
Derivative Securities in certain jurisdictions may be restricted by law. Neither the Issuer nor any
of the Dealers, if any, represents that this document may be lawfully distributed, or that the
Derivative Securities may be lawfully offered, in compliance with any applicable registration or
other requirements in any such jurisdiction or pursuant to an exemption available thereunder or
assumes any responsibility for facilitating any such distribution or offering. Accordingly, the
Derivative Securities may not be offered or sold, directly or indirectly, and neither this document
nor any advertisement or other offering material may be distributed or published in any
jurisdiction, except under circumstances that will result in compliance with any applicable laws
and regulations. Persons into whose possession this document comes must inform themselves
about, and observe any such restrictions. A description of the relevant restrictions on offers,
sales and deliveries of Derivative Securities and on the distribution of the Prospectus or any
Final terms, and other offering material relating to the Derivative Securities will be provided in
the Final Terms.
In particular, the Derivative Securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the Securities Act), and are subject to
U.S. tax law requirements. Subject to certain exceptions, Derivative Securities may not
be offered, sold or delivered within the United States or to U.S. persons.
Confirmation to the Dealers
The Issuer will confirm to the Dealers, if any, that the Base Prospectus is true and accurate in
all material respects and is not misleading; that any opinions and intentions expressed by it
therein are honestly held and based on reasonable assumptions; that there are no other facts
with respect to the Issuer, the omission of which would make the Base Prospectus as a whole
or any statement therein or opinions or intentions expressed therein misleading in any material
respect; and that all reasonable enquiries have been made to verify the foregoing.
In connection with the public offering and the admission of the Derivative Securities to a
regulated market respectively, the Issuer confirms that, if at any time after the approval of the
Base Prospectus:
(a) there is a significant new factor, or
(b) a material mistake or inaccuracy
relating to the information included in the Base Prospectus which is capable of affecting the
assessment of the securities and which arises or is noted between the time when the Base
Prospectus is approved and the final closing of the offer to the public, or, as the case may be,
the time when trading on a regulated market begins, the Issuer shall prepare a supplement to
the Base Prospectus pursuant to Article 16 of the Prospectus Directive and Article 16 of the
219
German Securities Prospectus Act respectively. The supplement will be published after the
approval by the Competent Authority on the website of the Issuer (www.ibfp.com).
Completeness
The Base Prospectus should be read and construed with any supplement thereto and, in
relation to any Series (as defined herein) of Derivative Securities and Derivative Securities not
issued in series, should be read and construed together with the relevant Final Terms (as
defined herein).
Exclusiveness
No person has been authorised by the Issuer to give any information or to make any
representation not contained in or not consistent with the Base Prospectus or any other
document entered into in relation to the Programme or any information supplied by the Issuer or
such other information as is in the public domain and, if given or made, such information or
representation should not be relied upon as having been authorised by the Issuer, the Dealers
(if any) or any of them. The Dealers, if any, do not constitute an underwriting syndicate or
otherwise take responsibility for the subscription, sale or other matters in connection with any
issue of Derivative Securities under the Programme except to the extent that any Dealer takes
part in such issue as manager, underwriter, selling agent or in similar capacity. The delivery of
this Base Prospectus does not imply any assurance by the Issuer or any Dealer that this Base
Prospectus will continue to be correct at all times during the one-year period of its validity
except that the Issuer will publish a supplement to this Base Prospectus if and when required
pursuant to applicable law in the event of certain material changes occurring subsequent to the
publication of this Base Prospectus and prior to the listing of any Derivative Securities issued
under the Programme.
Responsibility of the Dealers
No representation or warranty will be made or implied by the Dealers, if any, or any of their
respective affiliates, and neither the Dealers, if any, nor any of their respective affiliates will
make any representation or warranty or accept any responsibility, as to the accuracy or
completeness of the information contained in the Base Prospectus.
Significance of Delivery
Neither the delivery of the Base Prospectus nor of any Final Terms nor the offering, sale or
delivery of any Derivative Securities shall, in any circumstances, create any implication that the
information contained in the Base Prospectus is true subsequent to the date upon which the
Base Prospectus has been most recently supplemented or that any other information supplied
in connection with the Programme is correct at any time subsequent to the date on which it is
supplied or, if different, the date indicated in the document containing the same. This does not
affect the obligation of the Issuer to file a supplement under the German Securities Prospectus
Act (Wertpapierprospektgesetz) to this Base Prospectus.
Stabilisation
In connection with the issue of any Tranche (as defined herein) of Derivative Securities under
the Programme, the Dealer or Dealers (if any) named as the stabilising manager(s) (or persons
acting on behalf of any stabilising manager(s)) in the applicable Final Terms may over-allot
Derivative Securities (provided that, in the case of any Tranche of Derivative Securities to be
admitted to trading on a regulated market, the aggregate principal amount of Derivative
Securities allotted does not exceed 105% of the aggregate principal amount of the relevant
Tranche) or effect transactions with a view to supporting the market price of the Derivative
Securities at a level higher than that which might otherwise prevail. However, there is no
assurance that the stabilising manager(s) (or persons acting on behalf of a stabilising manager)
will undertake stabilisation action. Any stabilisation action may begin on or after the date on
which adequate public disclosure of the terms of the offer of the relevant Tranche of Derivative
Securities is made and, if begun, may be ended at any time, but it must end no later than the
220
earlier of 30 days after the issue date of the relevant Tranche of Derivative Securities and 60
days after the date of the allotment of the relevant Tranche of Derivative Securities.
Exclusion
Neither the Base Prospectus nor any Final Terms may be used for the purpose of an offer or
solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to
any person to whom it is unlawful to make such an offer or solicitation. Neither the Base
Prospectus nor any Final Terms constitutes an offer or an invitation to subscribe for or purchase
any Derivative Securities and should not be considered as a recommendation by the Issuer or
the Dealers, if any, or any of them that any recipient of the Base Prospectus or any Final Terms
should subscribe for or purchase any Derivative Securities. Each recipient of the Base
Prospectus or any Final Terms shall be taken to have made its own investigation and appraisal
of the condition (financial or otherwise) of the Issuer.
221
THE ISSUER
19, rue Eugène Ruppert
L-2453 Luxembourg
Grand Duchy of Luxembourg
THE GUARANTOR
IBG LLC
One Pickwick Plaza
Greenwich
Connecticut, CT, 06830
United States of America
DEALER, ARRANGER, FISCAL AGENT AND PAYING AGENT
Timber Hill (Europe) AG
Gotthardstrasse 3
6301 Zug
Switzerland
LEGAL ADVISORS
to the Issuer
Norton Rose LLP
Stephanstraße 15
60313 Frankfurt am Main
Federal Republic of Germany
AUDITORS
to the Issuer
BDO AUDIT S.A.
2, av. Charles de Gaulle
L-1653 Luxembourg
Grand Duchy of Luxembourg
AUDITORS
to the Guarantor
Deloitte & Touche LLP
Two World Financial Center,
New York, NY 10281-1414
United States of America
222
(page intentionally left blank)
223
ANNEX I - HISTORICAL FINANCIAL INFORMATION OF THE ISSUER
Financial Statements for the period between 8 January 2009 and 31 December 2009
together with auditor’s report
224
225
226
227
Interactive Brokers Financial Products S .A .
Balance Sheet
31 December
2009
(in Euro)
Assets
199 732
4816004
Total assets.
5015736
Liabilities and equity
Liabilities:
60 863
25 493
86 356
Equity:
Stockholder's equity :
Common stock, EUR1,000 stated value per share :
5,000 snares at 31 December 2009
Net loss
Total stockholder's equity
See accompanying notes to the financial statements .
228
5 000 000
(70620)
4929380
5015736
Statement of Comprehensive Income
Period from
8 January through
31 December 2009
(in Euro)
Revenues :
Translation losses
Interest income
Total revenues
(21)
16 009
15 988
Interest expense
Total net revenues
15 988
Non-interest expenses :
Communications
154
86 454
86 608
(70620)
Income tax expense
Net loss
(70620)
229
Interactive Brokers Financial Products S.A .
Cash Flow Statement
Period from
8 January through
31 December 2009
(in Euro)
Cash Flows from operating activities :
Net loss
(Increase) decrease in assets :
Accrued expenses
Cash flows; from financing activities :
Net Increase in cash :
Cash, end of period
(70620)
(4816004)
60 863
25 493
(4800268)
5000000
5000000
199 732
199 732
230
Statement of Changes in Equity
Period from 8 January through 31 December 2009
Shares
(in Euro)
Balance, 8 January 2009
Common stock issued
Net loss
Balance, 31 December 2009
5 000
5 000
Stated Value
Net Loss
5000000
5 000 000
5000000
(70620)
(70 620}
231
Total Equity
(70620)
4929380
Interactive Brokers Financial Products S,A.
Notes to the financial statements for the period from 8 January 2009 through 31 December 2009
(currency : Euro)
1 . ORGANIZATION AND NATURE OF BUSINESS
Interactive Brokers Financial Products S .A. ("the Company") was incorporated on 8
January 2009 with its registered office in Luxembourg . The Company has applied
to be registered with the Bundesanstalt für Finanzdienstleistungsaufsicht (the
German Financial Supervisory Authority, also referred to as "BaFin") to issue
equity warrants and certificates under a registered Warrant and Certificate
Programme (the "Programme").
The Company is wholly owned by IBG LLC ("IBG lLC" or "the Group"), a limited
liability company organized in Connecticut, United States of America .
The Group is consolidated into Interactive Brokers Group, Inc. ("IBG, Inc .") a
publicly traded U.S. hoi,ding company .
2.
SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements are prepared and presented on the accrual
basis of accounting anti comply with International Financial Accounting Standards
("IFRS") as adopted by the European Union . The financial statements are
presented in Euro ("EUR") .
Use of estimates
The preparation of financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amount
of assets, liabilities, revenues and expenses and disclosure of contingent liabilities
on the date of the financial statements. Actual results could differ from the
estimates . Any revision to accounting estimates is recognized prospectively in
current and future periods .
Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange prevailing
on the date of the transaction. Exchange differences, if any, arising out of
transactions settled during the year are recognized in the statement of
revenues and expenses as translation gains .
Monetary assets and liabilities denominated in foreign currencies at the balance
sheet date are translated at the closing exchange rates on that date. The
exchange differences, if any, are recognized in the statement of revenues and
expenses as translation gains and related assets and liabilities are accordingly
revatued in the balance sheet .
232
(Currency: Euro)
2.
SIGNIFICANT ACCOUNTING POLICIES - Continued
Impairment of assets
The Company assesses at each balance sheet date whether there is any indication
that an asset may be impaired based on internal and external factors . If any
such indication exists, the Company estimates the recoverable amount of the
asset . If such recoverable amount of the asset is less than its carrying amount, the
carrying amount is reduced to its recoverable amount .
Such reductions would be treated as an impairment loss and recognized in the
profit and toss account . If at the balance sheet date, there is an indication that a
previously assessed imFlairment loss no loner exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount subject to a
maximum of the depreciable historical cost . For the period from 8 January 2009
through 31 December 2009, there were no impairments .
Taxation
Income-tax expense comprises current tax (i .e . amount of tax for the period
determined in accordance with income tax law) . The Company had no currently
payable or deferred income taxes for the period ended 31 December 2009 .
Provisions and contingencies
The Company creates a. provision when there is a present obligation as a result of a
past event that probably requires an outflow of resources and a reliable estimate
can be made of the amount of the obligation . A disclosure for a contingent liability
is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources . When there is a possible
obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. As of 31 December 2009
no provisions were required or made .
3.
STOCKHOLDER'S EQUITY
IBG LLC contributed capital of 50,000, which amount was recorded as formation
capital as of 8 January 2009 . In connection with its incorporation described in
Note 1, the Company issued 50 shares of capital stock, with a stated value of 1,000
per share, to IBG LI.C as the sole shareholder of the Company . In July 2009, IBG
LLC contributed additional capital of 4,950,000 and was issued 4,950 shares of
capital stock, increasing the Company's total capitalization to 5,000,000.
233
(Currency: Euro)
4.
RELATED PARTY TRANSACTIONS
During the period, the Company loaned cash of 4,800,000 to Timber Hill Europe
AG, an affiliated company, at an interest rate of 1 .1% . This loan receivable, which
is repayable on demand, and related interest earned for the period of 16,004 are
reported in receivable from affiliate in the accompanying balance sheet.
In addition, Timber Hill Europe AG paid various third party invoices on behalf of
the Company at their cost of 60,863 . These amounts are reported in payable to
affiliate in the accompanying balance sheet.
On 28 August 2009, the Company entered into an unsecured loan agreement with
Timber Hill Europe AG 'in the amount of USD10 Million . Borrowings under the loan
agreement (none as of 31 December 2009) are payable on demand .
Directors of the Company did not receive compensation from the Company during
the period .
5.
APPROVAL OF FINANCIAL STATEMENTS AS AT 31 DECEMBER 2009
The financial statements for the period from 8 January through 31 December 2009
were approved by the board of directors on 5 February 2010.
234
ANNEX II - HISTORICAL FINANCIAL INFORMATION OF THE GUARANTOR
IBG LLC and Subsidiaries
Independent Auditor’s Report And
Consolidated Financial Statements
Years Ended December 31, 2008, 2007, 2006
235
IBG LLC
and Subsidiaries
Independent Auditors’ Report
And Consolidated Financial Statements
Years Ended December 31, 2008, 2007 and 2006
236
TABLE OF CONTENTS
Page
238
Consolidated Statements of Financial Condition as of December 31, 2008 and 2007
239
Consolidated Statements of Income for the years ended December 31, 2008, 2007 and 2006
240
Consolidated Statements of Cash Flows for the years ended December 31, 2008, 2007 and 2006
241
Consolidated Statements of Changes in Redeemable Members’ Interests for the years ended
December 31, 2008, 2007 and 2006
242
Notes to Consolidated Financial Statements
243-266
237
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1414
USA
Tel: +1 212 436 2000
Fax: +1 212 436 5000
www.deloitte.com
Member of
Deloitte Touche Tohmatsu
238
Consolidated Statements of Financial Condition
(in thousands)
Assets
Cash and securities - segregated for regulatory purposes
Securities borrowed
Trading assets, at fair value:
Financial instruments owned and pledged as collateral
Other receivables:
Customers, less allowance for doubtful accounts of $17,572 and
$1,999 at December 31, 2008 and 2007
Interest
Other assets
Total assets
Liabilities and redeemable members’ interests
Liabilities:
Trading liabilities - financial instruments sold but not yet purchased, at fair value
Securities loaned
Other payables:
Customers
Interest
December 31,
2008
December 31,
2007
$
$
942,889
4,992,121
5,911,881
715,732
520,130
5,232,557
6,862,028
35,001
10,049,481
1,065,180
11,114,661
11,018,613
5,838,900
16,857,513
1,621,162
2,527,981
641
25,185
4,174,969
149,024
$ 28,001,277
1,916,076
2,484,163
85,478
4,485,717
176,912
$ 34,169,858
$ 13,476,757
656,625
208,117
$ 14,315,853
4,968,863
1,415,725
6,929,617
1,614,810
14,019
285,428
16,182
8,860,056
143,054
300,000
7,630,703
1,568,620
4,500
229,173
53,252
9,486,248
160,456
300,000
4,356,668
$ 28,001,277
3,522,713
$ 34,169,858
Commitments, contingencies and guarantees
Redeemable members’ interests, including accumulated other comprehensive income
Total liabilities and redeemable members’ interests
See accompanying notes to the consolidated financial statements.
239
Consolidated Statements of Income
(in thousands)
Revenues:
Trading gains
Interest income
Other income
Total revenues
Interest expense
Total net revenues
Communications
Income tax expense
Net income
2008
2007
2006
$ 1,303,994
359,529
437,167
81,407
2,182,097
$ 888,065
261,104
782,197
92,009
2,023,375
$ 805,110
174,437
672,057
85,238
1,736,842
332,130
555,349
484,433
1,849,967
1,468,026
1,252,409
322,746
158,018
37,663
18,650
63,138
600,215
335,756
118,770
26,482
14,889
40,530
536,427
313,271
110,125
22,697
12,645
32,110
490,848
1,249,752
931,599
761,561
102,611
$ 1,147,141
45,959
$ 885,640
27,392
$ 734,169
240
Consolidated Statements of Cash Flows
(in thousands)
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Translation (gains) losses
Losses (gains) on non-trading investments, net
Change in operating assets and liabilities:
Decrease (increase) in cash and securities - segregated for regulatory
purposes
(Increase) decrease in securities purchased under agreements to resell
(Decrease) increase in trading liabilities
(Decrease) increase in securities loaned
(Decrease) increase in payable to customers
Increase in other payables
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Sale (purchase) of investments
Distributions received from investment in exchange
(Purchase) of trading rights
Dividends paid
(Decrease) increase in short-term borrowings, net
Members’ contributions to IBG LLC
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Supplemental disclosures of cash flow information:
Interest paid
Taxes paid
Cancellation of secured note receivable
2007
$ 1,147,141
$ 885,640
(28,351)
34,763
17,897
25,921
14,107
20,287
(44,674)
(4,293)
12,068
13,264
(630)
1,781
47,130
(587)
11,630
337
1,481
240,500
965,207
(680,721)
5,795,379
295,559
40,928
(2,669)
(794,979)
(4,307,016)
(698,735)
33,858
2,119,076
(2,119,496)
3,852,844
62,882
(1,156,606)
(1,066,914)
(1,652,058)
(13,438)
(265,269)
(3,200,489)
3,713,557
902,789
(79,042)
(1,307,649)
(1,570,433)
(93,817)
(3,716,794)
(410,288)
(288,910)
(19,544)
2,300,181
1,899,853
1,495,049
698,891
(219,301)
5,866
635
(26,695)
(20,194)
(9,554)
(750)
(25,968)
(36,272)
(39,268)
1,229
(12,349)
(50,388)
(248,490)
474,566
(491,968)
550,000
(550,000)
(1,281,108)
(76,001)
(866)
(1,623,867)
(52,256)
422,759
520,130
$ 942,889
(282,430)
458,746
(448,888)
238,000
(88,000)
24,378
37,000
(1,376)
(62,570)
28,743
(149,141)
669,271
$ 520,130
(164,500)
512,462
(526,530)
150,000
525,887
10,609
(3,900)
504,028
26,700
261,039
408,232
$ 669,271
$ 369,200
$ 60,406
$ 551,918
$ 15,253
$ 460,097
$ 16,963
$
-
$ 10,018
$ 10,018
$
$
-
$
$
$
Non-cash financing activities:
Termination of subordinated loan
Member redemption payables
Termination of subordinated loan
$
$
241
2006
2008
$
-
$ 734,169
$
5,200
5,200
5,200
5,200
Consolidated Statement of Changes in Redeemable Members' Interests
Three years Ended December 31, 2008
Balance, January 1, 2006
Comprehensive income:
Net income
Cumulative translation adjustment
Total comprehensive income
Dividends
Members’ interests redeemed
Member contributions
Balance, December 31, 2006
Redeemable
Members’
Interests
$ 2,126,971
Treasury
Stock
Dividends
Capital contribution to THE
Total
Redeemable
Members’
Interests
$ 2,174,246
51,293
51,293
734,169
51,293
785,462
98,568
(164,500)
(3,900)
10,609
$ 2,801,917
76,281
76,281
885,640
76,281
961,921
734,169
734,169
(164,500)
(3,900)
10,609
$ 2,703,349
Net income
Accumulated
Other
Comprehensive
Income
$
47,275
$
885,640
885,640
(282,430)
37,000
IBG, Inc. Class A common stock acquired
Unearned compensation
(282,430)
37,000
$
IBG, Inc. Class A common stock distributed to employees
IBG, Inc. Class A common stock acquired from employees
Net Income
Dividends
Redemption of member interests from IBG Holdings LLC
Former members’ interests redeemed
IBG, Inc. Class A common stock distributed to employees
Acquisition of IBG, Inc. Class A common stock on behalf of
IBG, Inc.
$ 3,343,559
$
99,271
(99,271)
99,271
(99,271)
5,681
5,681
(1,376)
4,305
$
174,849
1,147,141
(1,710)
(1,710)
1,147,141
(248,490)
(72,015)
(3,986)
$
$ 4,166,209
$
1,147,141
(1,710)
1,145,431
35,599
(35,599)
(248,490)
(72,015)
(3,986)
35,599
(35,599)
13,881
13,881
(866)
17,320
$
242
(1,376)
$ 3,522,713
173,139
(866)
$ 4,356,668
(dollars in thousands, except share amounts, unless otherwise noted)
1. Organization and Nature of Business
The accompanying consolidated financial statements of IBG LLC and subsidiaries, a Connecticut
limited liability company, include the financial results of IBG LLC and its operating subsidiaries (collectively,
“IBG LLC” or the “Group”) for the periods reported. On May 9, 2007, Interactive Brokers Group, Inc. (“IBG,
Inc.”) issued 40 million shares of its Class A common stock pursuant to a registered public offering (the “IPO”,
see Note 4), completed its purchase of a 10.0% interest in IBG LLC and became the sole managing member of
the Group under the “Amended and Restated Operating Agreement of IBG LLC” dated May 3, 2007. IBG, Inc.
is a Delaware holding company whose primary operating asset is its ownership interest in IBG LLC. IBG LLC
is an automated global market maker and electronic broker specializing in routing orders and processing trades
in securities, futures and foreign exchange instruments.
IBG LLC conducts its business through its operating subsidiaries (collectively called the “Operating
Companies”): Timber Hill LLC (“TH LLC”), Timber Hill Europe AG (“THE”), Timber Hill Securities Hong
Kong Limited (“THSHK”), Timber Hill Australia Pty Limited (“THA”), Timber Hill Canada Company
(“THC”), Interactive Brokers LLC (“IB LLC”), Interactive Brokers Canada Inc. (“IBC”), Interactive Brokers
(U.K.) Limited (“IBUK”), Interactive Brokers (India) Private Limited (“IBI”), Interactive Brokers Hungary
KFT (“IBH”), IB Exchange Corp. (“IBEC”), Interactive Brokers Securities Japan, Inc. (“IBSJ”) and
FutureTrade Technologies, LLC and subsidiaries (“FTT”).
The Operating Companies are members of various securities and commodities exchanges in North
America, Europe and the Asia/Pacific region. Other than IB LLC, IBUK and IBC, the Operating Companies do
not carry securities accounts for customers or perform custodial functions relating to customer securities. IB
LLC, a U.S. broker-dealer and futures commission merchant, conducts electronic brokerage services for
customers. IB LLC carries customer securities and commodity accounts and is subject to the regulatory
requirements of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the U.S.
Commodities Exchange Act.
2. Significant Accounting Policies
Basis of Presentation
These consolidated financial statements are presented in U.S. dollars and have been prepared in
conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Gains and losses from foreign currency transactions are included in trading gains and losses where related to
market making activities or in interest income where related to investment of customer funds as part of
electronic brokerage activities in the consolidated statements of income. Non-U.S. subsidiaries have a
functional currency (i.e., the currency in which activities are primarily conducted) that is other than the U.S.
dollar. Such subsidiaries’ assets and liabilities are translated to U.S. dollars at year-end exchange rates, while
revenues and expenses are translated at average exchange rates during the year. Adjustments that result from
translating amounts from a subsidiary’s functional currency to the U.S. dollar are reported in redeemable
members’ interests as a component of accumulated other comprehensive income.
Principles of Consolidation
The consolidated financial statements include the accounts of IBG LLC and its majority and wholly
owned subsidiaries. The Group’s policy is to consolidate all entities of which it owns more than 50% unless it
does not have control. All inter-company balances and transactions have been eliminated. Pursuant to the
revised Financial Accounting Standards Board (“FASB”) Interpretation (“FIN”) No. 46, “Consolidation of
Variable Interest Entities,” IBG LLC would also consolidate any Variable Interest Entities (“VIEs”) of which it
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is the primary beneficiary. IBG LLC currently is not the primary beneficiary of any such entities and therefore
no VIEs are included in the consolidated financial statements.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial
statements and accompanying notes. Estimates, by their nature, are based on judgment and available
information. Therefore, actual results could differ materially from those estimates. Such estimates include the
estimated fair value of investments accounted for under the equity method of accounting, the estimated useful
lives of property and equipment, including capitalized internally developed software, the allowance for doubtful
accounts, compensation accruals, tax liabilities and estimated contingency reserves.
Fair Value
At December 31, 2008 and 2007, substantially all of IBG LLC’s assets and liabilities, including
financial instruments, were carried at fair value based on market prices, as published by exchanges and
clearinghouses, or were assets which are short-term in nature (such as U.S. government treasury bills or spot
foreign exchange) and were carried at amounts that approximate fair value.
IBG LLC adopted Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value
Measurements” as of January 1, 2008. SFAS No. 157 establishes a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs.
The three levels of the fair value hierarchy under SFAS No. 157 are:
Level 1
Unadjusted quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or liabilities;
Level 2
Quoted prices in markets that are not considered to be active or financial instruments
for which all significant inputs are observable, either directly or indirectly; and
Level 3
Prices or valuations that require inputs that are both significant to fair value
measurement and unobservable
In determining fair value, financial instruments owned and financial instruments sold, but not yet
purchased, except forward currency contracts, which are classified as Level 2 financial instruments, are
classified within Level 1 of the fair value hierarchy. Level 1 financial instruments, which are valued using
quoted market prices as published by exchanges and clearing houses or otherwise broadly distributed in active
markets, include U.S. government and sovereign obligations, active listed securities, options, futures, options on
futures and corporate debt securities. The Group does not adjust quoted prices for Level 1 financial instruments,
even in the event that the Group may hold a large position whereby a purchase or sale could reasonably impact
quoted prices. Currency forward contracts are classified as Level 2 financial instruments as such instruments are
not exchange-traded.
The Group also adopted SFAS No. 159, “The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement No. 115” as of January 1, 2008. SFAS No. 159
permits entities to choose, at specified election dates, to measure many financial instruments and certain other
items at fair value that are not currently required to be measured at fair value. At adoption, the Group had no
assets or liabilities for which it elected the fair value option.
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Stock-Based Compensation
IBG LLC follows SFAS No. 123(R), “Share-Based Payment,” to account for its stock-based
compensation plans. SFAS No. 123(R) requires all share-based payments to employees to be recognized in the
financial statements using a fair value-based method. As a result, the Group expenses the fair value of stock
granted to employees over the related vesting period.
Redeemable Members’ Interests
Prior to the IPO, the Group’s redeemable members’ interests represented member interests in IBG
LLC that were entitled to share in the consolidated profits and losses of the Group. In connection with the
Recapitalization, which is further described in Note 4, all existing member interests in the Group were
exchanged for interests in IBG Holdings LLC.
IBG LLC had applied guidance within Emerging Issues Task Force (“EITF”) Topic D-98
“Classification and Measurement of Redeemable Securities,” which requires securities or equity interests of a
company whose redemption is outside the control of the company to be classified outside of permanent capital
in the statement of financial condition. Historically, the member interests in IBG LLC could be redeemed by
the members at book value at their option. Because this redemption right was deemed to be outside of its
control, IBG LLC classified all members’ capital outside of permanent capital as redeemable members’
interests in the consolidated statements of financial condition.
Prior to January 2, 2006, selected employees had been granted non-transferable fully vested member
interests in IBG LLC. Grants issued before January 1, 2006 were accounted for pursuant to APB Opinion No.
25 and EITF Issue No. 00-23, “Issues Related to the Accounting for Stock Compensation under APB Opinion
No. 25 and FIN No. 44.” IBG LLC recorded a fixed dollar amount of expense for member interest grants at the
date of grant based on management’s estimate of fair value, which is book value (as defined in IBG LLC’s
“Agreement as to Member Interest Purchase Rights”). Member interests confer ownership rights in IBG LLC
and entitle the holder to proportionate rights to future allocable profits and losses of IBG LLC. Under the terms
of the agreement, member-employees could only sell their interests back to IBG LLC at any time at book value.
Member interest grants were initially accounted for as liabilities until six months elapsed from the date of grant,
at which time such liabilities were reclassified to redeemable members’ interests as members’ contributions.
The Group adopted the provisions of SFAS No. 123(R) as of January 1, 2006. The Group continued to
account for all grants of member interests granted subsequent to December 31, 2005 as liability awards.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated
Financial Statements, an amendment of ARB No. 51.” SFAS No. 160 requires non-controlling (“minority”)
interests in a reporting entity to be reported as a component of the entity’s stockholder’s equity. SFAS No. 160
is effective for an entity’s fiscal year beginning after December 15, 2008, and early adoption is not permitted.
Management is assessing the potential impact on the Group’s consolidated financial statements of adopting
SFAS No. 160. With the adoption of SFAS No. 160, we expect to include redeemable members’ interests as
equity. Applying SFAS 160, our consolidated equity at December 31, 2008 would have been $4.4 billion.
Cash and Cash Equivalents
IBG LLC defines cash equivalents as short-term, highly liquid securities and cash deposits with
original maturities of three months or less, other than those used for trading purposes.
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Cash and Securities — Segregated for Regulatory Purposes
As a result of customer activities, certain Operating Companies are obligated by rules mandated by
their primary regulators including the SEC and the Commodities Futures Trading Commission (“CFTC”) in the
United States, the Financial Services Authority in the United Kingdom and the Investment Industry Regulatory
Organization of Canada, to segregate or set aside cash or qualified securities to satisfy such regulations, which
regulations have been promulgated to protect customer assets. In addition, substantially all of the Operating
Companies are members of various clearing organizations at which cash or securities are deposited as required
to conduct day-to-day clearance activities.
Securities Borrowed and Securities Loaned
Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or
received. Securities borrowed transactions require IBG LLC to provide counterparties with collateral, which
may be in the form of cash, letters of credit, or other securities. With respect to securities loaned, IBG LLC
receives collateral, which may be in the form of cash or other securities in an amount generally in excess of the
fair value of the securities loaned.
IBG LLC monitors the market value of securities borrowed and loaned on a daily basis, with additional
collateral obtained or refunded as permitted contractually. Receivables and payables with the same
counterparty are not offset in the consolidated statements of financial condition. For these transactions, the fees
received or paid by IBG LLC are recorded as interest income or interest expense in the consolidated statements
of income.
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase
Securities purchased under agreements to resell and securities sold under agreements to repurchase are
treated as collateralized financing transactions and are recorded at contract value, plus accrued interest, which
approximates fair value. IBG LLC’s policy is to obtain possession of collateral with a fair value equal to or in
excess of the principal amount loaned under resale agreements. To ensure that the fair value of the underlying
collateral remains sufficient, this collateral is valued daily with additional collateral obtained or excess
collateral returned, as permitted under contractual provisions.
Financial Instruments Owned and Sold But Not Yet Purchased
Stocks, government and corporate bonds, futures and options transactions are reported in the
consolidated financial statements on a trade date basis. All financial instruments owned and financial
instruments sold but not yet purchased are recorded at fair value based upon quoted market prices. All firmowned financial instruments pledged to counterparties where the counterparty has the right, by contract or
custom, to sell or repledge the financial instruments are classified as financial instruments owned and pledged
as collateral in the consolidated statements of financial condition.
IBG LLC also enters into currency forward contracts. These transactions, which are also reported on a
trade date basis, are agreements to exchange a fixed amount of one currency for a specified amount of a second
currency at the outset and at completion of the currency forward contract term. Unrealized mark-to-market
gains and losses on currency forward contracts are reported as components of financial instruments owned or
financial instruments sold but not yet purchased in the consolidated statements of financial condition. Net
earnings or losses are reported as components of interest income in the consolidated statements of income.
Customer Receivables and Payables
Customer securities transactions are recorded on a settlement date basis and customer commodities
transactions are recorded on a trade date basis. Receivables from and payables to customers include amounts
due on cash and margin transactions, including futures contracts transacted on behalf of customers. Securities
owned by customers, including those that collateralize margin loans or other similar transactions, are not
reported in the consolidated statements of financial condition. Amounts receivable from customers that are
determined by management to be uncollectible are written off to general and administrative expense.
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Receivables from and Payables to Brokers, Dealers and Clearing Organizations
Receivables from brokers, dealers and clearing organizations include amounts receivable for securities
not delivered by IBG LLC to the purchaser by the settlement date (“fails to deliver”) and margin deposits.
Payables to brokers, dealers and clearing organizations include amounts payable for securities not received by
IBG LLC from a seller by the settlement date (“fails to receive”). Receivables and payables to brokers, dealers
and clearing organizations also include amounts related to futures contracts executed on behalf of customers as
well as net payables and receivables from unsettled trades.
Investments
IBG LLC makes certain strategic investments and accounts for these investments under the equity
method of accounting. Investments are accounted for under the equity method of accounting when IBG LLC
has significant influence over the investee as required under APB Opinion No. 18, “The Equity Method of
Accounting for Investments in Common Stock.” Investments accounted for under the equity method are
recorded at the fair value amount of IBG LLC’s investment and adjusted each period for IBG LLC’s share of
the investee’s income or loss. IBG LLC’s share of the income or losses from equity investments is reported as a
component of other income in the consolidated statements of income and the recorded amounts of IBG LLC’s
equity investments, which are included in other assets in the consolidated statements of financial condition,
increase or decrease accordingly. Distributions received from equity investees are recorded as reductions to the
respective investment balance.
A judgmental aspect of accounting for investments is evaluating whether an other-than-temporary
decline in the value of an investment has occurred. The evaluation of an other-than-temporary impairment is
dependent on specific quantitative and qualitative factors and circumstances surrounding an investment,
including recurring operating losses, credit defaults and subsequent rounds of financing. None of IBG LLC’s
equity investments have readily determinable market values. All equity investments are reviewed for changes
in circumstances or occurrence of events that suggest IBG LLC’s investment may not be recoverable. If an
unrealized loss on any investment is considered to be other-than-temporary, the loss is recognized in the period
the determination is made (Note 7). IBG LLC also holds exchange memberships and investments in equity
securities of certain exchanges as required to qualify as a clearing member. Such investments are recorded at
cost or, if an other-than-temporary impairment in value has occurred, at a value that reflects management’s
estimate of the impairment, and are included in other assets in the consolidated statements of financial
condition. Dividends are recognized as a component of other income as such dividends are received.
Property and Equipment
Property and equipment, which is a component of other assets, consist of purchased technology
hardware and software, internally developed software, leasehold improvements and office furniture and
equipment. Property and equipment are recorded at historical cost, less accumulated depreciation and
amortization. Additions and improvements that extend the lives of assets are capitalized, while expenditures for
repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the
straight-line method. Equipment is depreciated over the estimated useful lives of the assets, while leasehold
improvements are amortized over the lesser of the estimated economic useful life of the asset or the term of the
lease. Computer equipment is depreciated over three to five years and office furniture and equipment are
depreciated over five to seven years. Qualifying costs for internally developed software are capitalized and
amortized over the expected useful life of the developed software, not to exceed three years.
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Comprehensive Income and Foreign Currency Translation
Comprehensive income consists of two components: net income and other comprehensive income.
Other comprehensive income refers to revenues, expenses, gains and losses that are included in stockholders’
equity but are excluded from net income. IBG LLC’s other comprehensive income is comprised of foreign
currency translation adjustments.
IBG LLC’s international Operating Companies have a functional currency (i.e., the currency in which
activities are primarily conducted) that is other than the U.S. dollar. Such subsidiaries’ assets and liabilities are
translated into U.S. dollars at period-end exchange rates, and revenues and expenses are translated at average
exchange rates prevailing during the period. Translation gains and losses from market making and electronic
brokerage activities, respectively, are included in trading gains and in other income in the accompanying
consolidated statements of income. Adjustments that result from translating amounts from a subsidiary’s
functional currency are reported as a component of accumulated other comprehensive income.
Revenue Recognition
— Trading Gains
Trading gains and losses are recorded on trade date, and are reported on a net basis. Trading gains are
comprised of changes in the fair value of trading assets and liabilities (i.e., unrealized gains and losses) and
realized gains and losses. Dividends are integral to the valuation of stocks bought and sold and, accordingly, are
reported on a net basis as a component of trading gains in the accompanying consolidated statements of income.
— Commissions and Execution Fees
Commissions charged for executing and clearing customer transactions are accrued on a trade date
basis and are reported as commissions and execution fees in the consolidated statements of income, and the
related expenses are reported as execution and clearing expenses, also on a trade date basis.
Income Taxes
IBG LLC accounts for income taxes in accordance with SFAS No. 109, “Accounting for Income
Taxes,” which requires the recognition of tax benefits or expenses on the temporary differences between the
financial reporting and tax bases of assets and liabilities, and FIN No. 48, “Accounting for Uncertainty in
Income Taxes — an interpretation of FASB Statement No. 109”. FIN No. 48, which was adopted as of January
1, 2007, clarifies the accounting for uncertainty of income tax positions recognized in financial statements in
accordance with SFAS No. 109. FIN No. 48 prescribes a “more likely than not” threshold and measurement
attribute for recognition in the financial statements of an asset or liability resulting from a tax position taken or
expected to be taken in an income tax return.
Timber Hill (U.K.) Limited, an indirect subsidiary of IBG LLC, (“THUK”) formerly conducted market
making activity for the Group in the United Kingdom (“U.K.”) and in Italy, but ceased operating in 2004. Due
to the transfer of THUK’s operations from the U.K. to Switzerland, its income for the period 2002 to 2004 was
not taxable in the U.K., but was instead taxable in Switzerland. Applying FIN No. 48, during 2007 IBG LLC
recorded net refundable income taxes of $10,300, including net interest receivable of $920, representing the net
of amounts refundable by the U.K. Inland Revenue and payable to the Swiss tax authorities for such periods as
the result of income taxes previously overpaid to the U.K. Inland Revenue. The income tax provision for the
year ended December 31, 2007 included these refundable income taxes. Refundable amounts were received in
2008.
The Group operates in the United States as a limited liability company that was treated as a partnership
for U.S. federal income tax purposes. Accordingly, the Group’s income was not subject to U.S. federal income
taxes. Taxes related to income earned by partnerships represent obligations of the individual partners. Income
taxes shown in the Group’s historical consolidated statements of income have been primarily attributable to
taxes incurred in non-U.S. entities. State and local income taxes reported in the consolidated statements of
income represent taxes assessed by jurisdictions that do not recognize the Group’s limited liability company
status. Outside the United States, the Group principally operates through subsidiary corporations and is subject
to local income taxes. Foreign income taxes paid on dividends received are also reported as income taxes.
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IBG LLC recognizes interest related to income tax matters as interest income or expense and penalties
related to income tax matters as income tax expense.
Recently Issued Accounting Pronouncements
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” SFAS No. 141(R)
replaces SFAS No. 141, mandating changes in the accounting for business combinations most notably that
changes in purchase price allocations, if made, are required to be applied retrospectively, whereas under SFAS
No. 141, such changes were applied prospectively. SFAS No. 141(R) is effective for an entity’s fiscal year
beginning after December 15, 2008, and early adoption is not permitted. The Group cannot anticipate whether
adoption of SFAS No. 141(R) will have a material effect on its consolidated financial statements as such effect
would be solely dependent on whether the Group enters into business combinations after December 31, 2008
and the terms of such transactions.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and
Hedging Activities – an amendment of FASB Statement No. 133.” SFAS No. 161 requires enhanced
disclosures about an entity’s derivative and hedging activities, and is effective for financial statements issued
for fiscal years beginning after November 2008. Adoption of SFAS No. 161 is not expected to have a material
effect on IBG LLC’s consolidated statements of financial condition, income or cash flows.
On May 9, 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting
Principles." SFAS No. 162 identifies the sources of accounting principles and the framework for selecting the
principles used in the preparation of financial statements of nongovernmental entities in accordance with U.S.
GAAP. This Statement became effective in November 2008, 60 days following the SEC’s approval of the
Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly
in Conformity With Generally Accepted Accounting Principles.” Adoption of SFAS No. 162 did not have a
material effect on IBG LLC’s consolidated statements of financial condition, income or cash flows.
In November 2008, the SEC issued its “Roadmap for the Potential Use of Financial Statements
Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers” (“IFRS Roadmap”).
The IFRS Roadmap would require SEC registrants to prepare their financial statements in accordance with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board in 2014. IFRS is increasingly being applied by financial statement preparers in countries outside the U.S.
One of the stated purposes of the IFRS Roadmap is that adopting IFRS will provide a global set of high-quality
accounting standards so that U.S. investors would have an enhanced ability to compare financial information of
U.S. companies with that of non-U.S. Companies. In issuing the IFRS Roadmap, the SEC stated that, in 2011,
it will determine whether to proceed with rulemaking to require the use of IFRS by U.S. registrants beginning in
2014. Management is assessing the potential impact of adopting IFRS on the Group’s consolidated financial
statements.
3. Trading Activities and Related Risks
IBG LLC’s trading activities include providing securities market making and brokerage services.
Trading activities expose IBG LLC to market and credit risks. These risks are managed in accordance with
established risk management policies and procedures. To accomplish this, management has established a risk
management process that includes:
a regular review of the risk management process by executive management as part of its oversight role;
defined risk management policies and procedures supported by a rigorous analytic framework; and
articulated risk tolerance levels as defined by executive management that are regularly reviewed to
ensure that IBG LLC’s risk-taking is consistent with its business strategy, capital structure, and current
and anticipated market conditions.
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Market Risk
IBG LLC is exposed to various market risks. Exposures to market risks arise from equity price risk,
foreign currency exchange rate fluctuations and changes in interest rates.
IBG LLC seeks to mitigate market risk associated with trading inventories by employing hedging
strategies that correlate rate, price and spread movements of trading inventories and related financing and
hedging activities. IBG LLC uses a combination of cash instruments and exchange traded derivatives to hedge
its market exposures. The following discussion describes the types of market risk faced:
Equity Price Risk
Equity price risk arises from the possibility that equity security prices will fluctuate, affecting the value
of equity securities and other instruments that derive their value from a particular stock, a defined
basket of stocks, or a stock index. IBG LLC is subject to equity price risk primarily in securities
owned and securities sold but not yet purchased. IBG LLC attempts to limit such risks by
continuously reevaluating prices and by diversifying its portfolio across many different options, futures
and underlying securities and avoiding concentrations of positions based on the same underlying
security.
Currency Risk
Currency risk arises from the possibility that fluctuations in foreign exchange rates will impact the
value of financial instruments. Exchange rate contracts may include cross-currency swaps and
currency futures contracts. Currency swaps are agreements to exchange future payments in one
currency for payments in another currency. These agreements are used to effectively convert assets or
liabilities denominated in different currencies. Currency futures are contracts for delayed delivery of
currency at a specified future date. IBG LLC uses currency swaps to manage the levels of its non-U.S.
dollar currency balances and currency cash and futures to hedge its global exposure.
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect the value of
financial instruments. IBG LLC is exposed to interest rate risk on cash and margin balances, positions
carried in equity securities, options and futures and on its debt obligations. These risks are managed
through investment policies and by entering into interest rate futures contracts.
Credit Risk
IBG LLC is exposed to risk of loss if an individual, counterparty or issuer fails to perform its
obligations under contractual terms (“default risk”). Both cash instruments and derivatives expose IBG LLC to
default risk. Credit risk is limited in that substantially all of the contracts entered into are settled directly at
securities and commodities clearing houses and a small portion is settled through member firms and banks with
substantial financial and operational resources. IBG LLC has established policies and procedures for mitigating
credit risk on principal transactions, including reviewing and establishing limits for credit exposure, maintaining
collateral, and continually assessing the creditworthiness of counterparties.
In the normal course of business, IBG LLC executes, settles and finances various customer securities
transactions. Execution of these transactions includes the purchase and sale of securities by IBG LLC that
exposes IBG LLC to default risk arising from the potential that customers or counterparties may fail to satisfy
their obligations. In these situations, IBG LLC may be required to purchase or sell financial instruments at
unfavorable market prices to satisfy obligations to customers or counterparties. IBG LLC seeks to control the
risks associated with its customer margin activities by requiring customers to maintain collateral in compliance
with regulatory and internal guidelines.
Liabilities to other brokers and dealers related to unsettled transactions (i.e., securities failed-toreceive) are recorded at the amount for which the securities were purchased, and are paid upon receipt of the
securities from other brokers or dealers. In the case of aged securities failed-to-receive, IBG LLC may purchase
the underlying security in the market and seek reimbursement for any losses from the counterparty.
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For cash management purposes, IBG LLC enters into short-term securities purchased under
agreements to resell and securities sold under agreements to repurchase transactions (“repos”) in addition to
securities borrowing and lending arrangements, all of which may result in credit exposure in the event the
counterparty to a transaction is unable to fulfill its contractual obligations. In accordance with industry practice,
repos are collateralized by securities with a market value in excess of the obligation under the contract.
Similarly, securities borrowed and loaned agreements are collateralized by deposits of cash or securities. IBG
LLC attempts to minimize credit risk associated with these activities by monitoring collateral values on a daily
basis and requiring additional collateral to be deposited with or returned to IBG LLC as permitted under
contractual provisions.
Concentrations of Credit Risk
IBG LLC’s exposure to credit risk associated with its trading and other activities is measured on an
individual counterparty basis, as well as by groups of counterparties that share similar attributes.
Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce
the potential for risk concentration, credit limits are established and exposure is monitored in light of changing
counterparty and market conditions. As of December 31, 2008, the Group did not have any concentrations of
credit risk.
Off-Balance Sheet Risks
IBG LLC may be exposed to a risk of loss not reflected in the consolidated financial statements for
futures products, which represent obligations of IBG LLC to settle at contracted prices, which may require
repurchase or sale in the market at prevailing prices. Accordingly, these transactions result in off-balance sheet
risk as IBG LLC’s cost to liquidate such futures contracts may exceed the amounts reported in IBG LLC’s
consolidated statements of financial condition.
4. Initial Public Offering and Recapitalization
On May 3, 2007, IBG, Inc. priced its initial public offering of shares of Common Stock. In connection
with the IPO, IBG, Inc. purchased 10.0% of the membership interests in IBG LLC from IBG Holdings LLC,
became the sole managing member of IBG LLC and began to consolidate IBG LLC’s financial results into its
financial statements. Such transactions are collectively referred to herein as the “Recapitalization.” IBG
Holdings LLC wholly owns all Class B common stock, which common stock has voting rights in proportion to
its ownership interests in IBG LLC, approximately 89.6% as of December 31, 2008.
Initial Public Offering
On May 9, 2007, IBG, Inc. issued, at $30.01 per share, 40,000,000 shares (1,000,000,000 shares
authorized) of its Common Stock in an initial public offering pursuant to the Registration Statement on Form S1 (File No. 333-138955) (the “Registration Statement”). The aggregate gross proceeds from the IPO amounted
to $1,200.4 million. Net proceeds of $1,177.9 million, after placement agency fees, were paid to IBG Holdings
LLC in exchange for a 10.0% interest in IBG LLC. Other offering expenses of $5.5 million were paid by IBG
LLC.
Recapitalization and Post-IPO Capital Structure
Immediately prior to and immediately following the consummation of the IPO, IBG, Inc., IBG
Holdings LLC, IBG LLC and the members of IBG LLC consummated a series of transactions collectively
referred to herein as the “Recapitalization.” In connection with the Recapitalization, IBG, Inc., IBG Holdings
LLC and the historical members of IBG LLC entered into an exchange agreement, dated as of May 3, 2007 (the
“Exchange Agreement”), pursuant to which the historical members of IBG LLC received membership interests
in IBG Holdings LLC in exchange for their membership interests in IBG LLC. Additionally, IBG, Inc. became
the sole managing member of IBG LLC.
In connection with the consummation of the IPO, IBG Holdings LLC used the net proceeds to redeem
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10.0% of members’ interests in IBG Holdings LLC in proportion to their interests. Immediately following the
Recapitalization and IPO, IBG Holdings LLC owned approximately 90% of IBG LLC and 100% of IBG, Inc.’s
Class B common stock, which has voting power in IBG, Inc. proportionate to the extent of IBG Holdings LLC’s
ownership of IBG LLC.
The Exchange Agreement also provides for future redemptions of member interests and for the
purchase of member interests in IBG LLC by IBG, Inc. from IBG Holdings LLC, which is expected to result in
IBG, Inc. acquiring the remaining member interests in IBG LLC that it does not own. On an annual basis,
holders of IBG Holdings LLC member interests will be able to request redemption of such member interests
over an eight (8) year period following the IPO; 12.5% annually for seven (7) years and 2.5% in the eighth year.
The primary manner in which the redemption price is expected to be paid is from the proceeds from sales of
additional shares of Common Stock. Three hundred sixty (360) million shares of authorized Common Stock
were reserved for such future sales.
On April 24, 2008, IBG, Inc. filed with the Securities and Exchange Commission a Registration
Statement on Form S-1 relating to the offering of 50 million shares of its Class A common stock. The net
proceeds of the offering were intended to be used to purchase additional IBG LLC member interests from IBG
Holdings LLC, pursuant to the terms and conditions of the Exchange Agreement. The offering was terminated
without issuance of any shares. The shares offered in the offering were deregistered and IBG, Inc. has agreed
not to register another public offering of its shares of Class A common stock until at least April 15, 2009.
In lieu of the above-referenced offering, the Exchange Agreement provides that IBG LLC, using its
available liquidity, may facilitate the redemption by IBG Holdings LLC of interests held by its members. In
May 2008, with the consent of IBG Holdings LLC and IBG, Inc. (on its own behalf and acting as the sole
managing member of IBG LLC), IBG LLC agreed to redeem membership interests from IBG Holdings LLC at
their fair value of $72,015, equivalent to $29.99 per share of Class A common stock. As a consequence of this
transaction, IBG, Inc.’s interest in IBG LLC increased to approximately 10.4%, with IBG Holdings LLC
owning the remaining 89.6%. The redemptions also resulted in an increase in the IBG Holdings LLC interest
held by Thomas Peterffy and his affiliates from approximately 84.6% to approximately 85.2%.
Stock Repurchase Program
On September 26, 2008, IBG, Inc. announced that the Board of Directors had approved the repurchase
by IBG LLC of up to eight (8) million shares of its Class A common stock. Shares may be purchased from time
to time in the open market and in private transactions if the company deems the price appropriate. In November
2008, 65,800 shares were repurchased at a cost of $866, and are being held as Treasury Stock.
252
5. Financial Instruments Owned and Sold, But Not Yet Purchased, at Fair Value
Financial instruments owned, including those pledged as collateral, and financial instruments sold, but
not yet purchased consisted of the following, at fair value, as follows at December 31, 2008 and 2007:
December 31, 2007
Sold, But Not
Owned
Yet Purchased
December 31, 2008
Sold, But Not
Owned
Yet Purchased
Stocks
Options
U.S. and foreign government obligations
Warrants
Corporate bonds
Discount certificates
Currency forward contracts
$ 2,841,974
7,893,668
286,563
78,382
4,671
8,171
1,232
$ 11,114,661
$
5,365,694
8,110,754
52
257
$ 13,476,757
$ 8,594,567
7,354,818
727,453
98,357
6,521
75,797
$ 16,857,513
$
6,247,069
8,068,721
63
$ 14,315,853
The following tables set forth, by level within the fair value hierarchy (Note 2), financial instruments
owned and financial instruments sold, but not yet purchased, which consisted of the following, at fair value as
of December 31, 2008. As required by SFAS No. 157, assets and liabilities are classified in their entirety based
on the lowest level of input that is significant to the fair value measurement.
Financial Assets At Fair Value as of December 31, 2008
Level 1
Stocks
Options
Warrants
Corporate bonds
$
$
Level 2
2,841,974
7,893,668
286,563
78,382
4,671
8,171
-
$
11,113,429
$
-
Level 3
$
-
$ 2,841,974
7,893,668
286,563
78,382
4,671
8,171
1,232
$
-
$ 11,114,661
1,232
1,232
Total
Financial Liabilities At Fair Value as of December 31, 2008
Level 1
Stocks
Options
Corporate bonds
Level 2
Level 3
Total
$
5,365,694
8,110,754
52
257
$
-
$
-
$ 5,365,694
8,110,754
52
257
$
13,476,757
$
-
$
-
$ 13,476,757
253
6. Collateral
The Group enters into securities borrowing and lending transactions and agreements to repurchase and
resell securities to finance trading inventory, to obtain securities for settlement and to earn residual interest rate
spreads. In addition, the Group’s customers pledge their securities owned to collateralize margin loans. Under
these transactions, the Group either receives or provides collateral, including equity, corporate debt and U.S.
government securities. Under many agreements, the Group is permitted to sell or repledge securities received
as collateral and use these securities to secure repurchase agreements, enter into securities lending transactions
or deliver these securities to counterparties to cover short positions. At December 31, 2008 and 2007, the fair
value of securities received as collateral where the Group is permitted to sell or repledge the securities was
approximately $8.0 and $9.4 billion, respectively, of which $6.0 and $7.0 billion, respectively had been
repledged or resold, of which some were deposited in a separate bank account for the exclusive benefit of
customers in accordance with SEC Rule 15c3-3. The sources of collateral at December 31, 2008 and 2007
were: securities lending transactions of $5.8 billion and $6.7 billion; and from customers of $2.2 billion and
$2.7 billion, respectively.
In the normal course of business, the Group pledges qualified securities with clearing organizations to
satisfy daily margin and clearing fund requirements. At December 31, 2008, substantially all government
obligations owned were pledged to clearing organizations.
Financial instruments owned and pledged, where the counterparty has the right to repledge, at
December 31, 2008 and 2007 consisted of the following:
December 31,
2008
2007
Stocks
7.
$
778,617
286,563
$ 1,065,180
$
5,111,447
727,453
$ 5,838,900
Investments
The Group has certain strategic investments in electronic exchange and investment banking platforms
that it accounts for under the equity method of accounting, recording its share of the investee’s income or loss in
other income (Note 11) in the consolidated statement of income. As of December 31, 2008 and 2007, the
carrying values of these investments were:
December 31,
2008
2007
OneChicago LLC
Boston Options Exchange, LLC ("BOX")
W.R. Hambrecht + Co., Inc. 2007 Note and Warrants
CBOE Stock Exchange, LLC
ISE Stock Exchange, LLC
$ 16,304
7,937
5,483
4,475
-
254
$ 17,864
6,867
19,786
4,916
3,170
Transactions and related balances with equity investees were:
2008
2007
2006
Transactions with BOX:
Other income (market maker incentives)
Exchange fees (execution and clearing expenses)
$
$
1,212
853
$
$
959
4,182
$
$
1,824
7,766
December 31,
2008
2007
Receivable from/Payable to BOX:
Receivable (other assets)
Payable (accounts payable, accrued exenses and
other liabilities)
$
251
$
108
$
917
$
880
In December 2008, the Group sold 100% of its investment in ISE Stock Exchange, LLC for proceeds
of $5,000, realizing a gain of $1,468. During 2008, the Group also sold 0.30% of its investment in CBOE Stock
Exchange LLC for proceeds of $300, realizing a gain of $150.
The Group holds a three-year 8.0% senior secured promissory note (“2007 Note”) that matures in
February and March 2010, warrants to purchase Series C common stock of W.R. Hambrecht + Co., Inc.
(“Hambrecht”) at $0.01 per share representing 25.86% of the fully diluted common shares of Hambrecht’s
capital stock and has two seats on Hambrecht’s board of directors. During 2008, the Group discontinued
accruing interest income on the 2007 Note. The Group also recorded losses on its investment in the 2007 Note
and Hambrecht warrants under the equity method of accounting totaling $14,851, including an impairment
charge of $10.0 million recorded in the third quarter.
8. Short-Term Borrowings
Short-term borrowings consist primarily of collateralized borrowing facilities with clearing banks in
multiple currencies that bear interest at fluctuating overnight rates based on interbank funds rates prevailing in
the respective currencies. In addition, the Group has available secured and unsecured overnight bank loan
facilities. All short-term borrowings outstanding at December 31, 2008 and 2007 were either repaid on the next
business day or rolled forward and, accordingly, their carrying values approximated their fair values.
As of December 31, 2008 and 2007, short-term borrowings consisted of:
2008
Overnight borrowing facilities
Unsecured bank loans
Secured bank loans
$
$
Principal
132,247
75,870
208,117
2007
Weighted
Average
Rates
0.68%
n/a
1.99%
$
$
Principal
1,067,098
197,238
151,389
1,415,725
Weighted
Average
Rates
2.66%
5.29%
4.45%
Interest expense on short term borrowings for each of the three years ended December 31, 2008, 2007
and 2006 was $49,522, $40,345 and $29,768, respectively.
255
9. Senior Notes Payable
At December 31, 2008 and 2007, IBG LLC had $143,054 and $160,456, respectively, of 7% senior
notes outstanding, which were privately placed to certain qualified customers of IB LLC. All of the senior
notes outstanding at December 31, 2008 had either a 15-month or an 18-month maturity. IBG LLC may, solely
at its option, redeem the senior notes at any time on or after a specified date in the third month or the sixth
month, respectively, after the date on which the senior notes are issued and sold (the “Optional Redemption
Date”), at a redemption price equal to 100% of the principal amount of the senior notes to be redeemed plus
accrued interest. Historically, IBG LLC has redeemed these senior notes at their Optional Redemption Dates.
The carrying value of the senior notes approximated their fair value since they are short-term in nature. In
2008, 2007 and 2006, IBG LLC redeemed $491,968, $448,888 and $526,530 of senior notes, which included
$160,456, $150,598 and $164,666 of senior notes issued in 2007, 2006 and 2005, respectively. During the
period from January 1 through February 23, 2009, total senior notes issued were $72,947, and senior notes
issued in 2008 which were redeemed totaled $74,525, respectively. Interest expense on senior notes was
$11,978, $10,762 and $13,159 for the three years ended December 31, 2008, 2007 and 2006, respectively.
10. Senior Secured Credit Facility
In May 2006, the Group entered into a 3-year $300 million revolving credit facility with a syndicate of
banks, under which facility $300 million was outstanding at December 31, 2008 and 2007, respectively. As of
December 31, 2008, the interest rate on this facility, indexed to the overnight Fed Funds rate, was 1.025%. The
carrying value of the senior secured credit facility approximates its fair value since borrowings under the facility
could be paid down at any time from available funds, making such borrowings short-term in nature. The
facility is secured by a first priority interest in all of the capital stock of each entity owned directly by IBG LLC
(subject to customary limitations with respect to foreign subsidiaries), and loans and advances to, and other
intercompany obligations owed by, each entity owned directly or indirectly by IBG LLC.
The financial covenants on the Group under the terms of the senior secured credit facility are:
minimum net worth (redeemable members’ interests) of $1.5 billion, with quarterly increases equal to
25% of positive consolidated net income;
maximum total debt to capitalization (including redeemable members’ interests) ratio of 30%;
minimum liquidity (unencumbered marketable securities and other liquid financial assets divided by
unsecured short-term (maturities of less than one year) liabilities) ratio of 1.0 to 1.0; and
maximum total debt to net consolidated regulatory capital ratio of 35%.
Interest expense on the senior secured credit facility for the three years ended December 31, 2008,
2007 and 2006 was $4,153, $11,363 and $5,712, respectively, which includes commitment fees on the facility.
As of December 31, 2008, the Group was in compliance with all of the covenants under this credit facility. In
January 2009, the Group reduced its borrowings under this facility to $-0-.
256
11. Other Income
The components of other income for the three years ended December 31, 2008, 2007 and 2006 were:
2008
Payments for order flow
Market data fees
Market maker incentives
Gains on restricted securities
Loss from equity investments
Other, net
$
48,735
17,590
15,643
8,886
(14,840)
$
81,407
2007
$
61,695
12,561
7,372
5,001
(1,904)
$
92,009
5,393
2006
$
60,189
9,036
4,133
6,603
(337)
$
85,238
7,284
5,614
Payments for order flow are earned from various options exchanges based upon options trading
volume originated by the Operating Companies. Market data fees are charged to customers based upon market
data services provided. Various exchanges pay the Group market maker incentives for its market making
efforts on those exchanges. Gains on restricted securities are primarily generated when the Group has
investments in securities on which there are restrictions from trading. Such securities are valued at cost until
such time as the trading restrictions lapse and such securities become freely tradable, at which time the
securities are marked to market.
12. Defined Contribution and Employee Incentive Plans
Defined Contribution Plan
The Group offers substantially all employees of U.S.-based Operating Companies who have met
minimum service requirements the opportunity to participate in defined contribution retirement plans qualifying
under the provisions of Section 401(k) of the Internal Revenue Code. The general purpose of this plan is to
provide employees with an incentive to make regular savings in order to provide additional financial security
during retirement. This plan provides for the Group to match 50% of the employees' pre-tax contribution, up to
a maximum of 10% of eligible earnings. The employee is vested in the matching contribution incrementally
over six years. Included in employee compensation and benefits expenses in the consolidated statements of
income were $1,803, $1,519 and $1,203 of plan contributions for the three years ended December 31, 2008,
2007 and 2006, respectively.
Return on Investment Dollar Units (“ROI Dollar Units”)
From 1998 through January 1, 2006, IBG LLC granted all non-member employees ROI Dollar Units,
which are redeemable under the amended provisions of the plan, and in accordance with regulations issued by
the Internal Revenue Service (Section 409A of the Internal Revenue Code). Upon redemption, the grantee is
entitled to accumulated earnings on the face value of the certificate, but not the actual face value. For grants
made in 1998 and 1999, grantees may redeem the ROI Dollar Units after vesting on the fifth anniversary of the
date of their grant and prior to the tenth anniversary of the date of their grant. For grants made between January
1, 2000 and January 1, 2005, grantees must elect to redeem the ROI Dollar Units upon the fifth, seventh or tenth
anniversary date. These ROI Dollar Units will vest upon the fifth anniversary of the date of their grant and will
continue to accumulate earnings until the elected redemption date. For grants made on or after January 1, 2006,
all ROI Dollar Units shall vest on the fifth anniversary date of their grant and will be automatically redeemed.
Subsequent to the IPO, no additional ROI Dollar Units have been or will be granted, and non-cash
compensation to employees will consist primarily of grants of shares of Common Stock as described below
under “2007 Stock Incentive Plan.”
As of December 31, 2008 and December 31, 2007, payables to employees for ROI Dollar Units were
$24,158 and $21,710, respectively. Of these payable amounts, $3,769 and $7,019 were vested as of December
31, 2008 and December 31, 2007, respectively. These amounts are included in accounts payable, accrued
expenses and other liabilities in the consolidated statements of financial condition. Compensation expense for
257
the ROI Dollar Unit plan, included in the consolidated statement of income was $7,712, 8,368 and $15,623 for
the years ended December 31, 2008, 2007 and 2006, respectively.
2007 ROI Unit Stock Plan
In connection with the IPO, IBG, Inc. adopted the Interactive Brokers Group, Inc. 2007 ROI Unit
Stock Plan (the “ROI Unit Stock Plan”). Under this plan, certain employees of the Group who held ROI Dollar
Units, at the employee’s option, elected to invest their ROI Dollar Unit accumulated earnings as of December
31, 2006 in shares of Common Stock. An aggregate of 1,271,009 shares of Common Stock (consisting of
1,250,000 shares issued under the ROI Unit Stock Plan and 21,009 shares under the 2007 Stock Incentive Plan,
as described below), with a fair value at the date of grant of $38,143, were issued to IBG LLC, to be held as
Treasury stock, and were distributed or are distributable to employees in accordance with the following
schedule, subject to the conditions below:
10% on the date of the IPO (or on the first anniversary of the IPO, in the case of U.S. ROI Unit holders
who made the above-referenced elections after December 31, 2006); and
an additional 15% on each of the first six anniversaries of the date of the IPO (or on each of the next
six anniversaries of the date of the IPO, in the case of U.S. ROI Unit holders who made the abovereferenced elections after December 31, 2006), assuming continued employment with IBG LLC and
compliance with other applicable covenants.
Of the fair value at the date of grant, $17,806 represented the accumulated ROI Dollar Unit value
elected to be invested by employees in Common Stock and such amount was accrued for as of December 31,
2006. The remainder will be ratably accrued as compensation expense by the Group from the date of the IPO
over the requisite service period represented by the aforementioned distribution schedule. Compensation
expense for the 2007 ROI Unit Stock Plan and related grants under the 2007 Stock Incentive Plan, net of the
effect of forfeitures, included in the consolidated statement of income for the year ended December 31, 2008
and the period from May 4 through December 31, 2007 was $4,888 and $1,484, respectively. Estimated future
compensation costs for unvested awards at December 31, 2008 were $15.3 million.
2007 Stock Incentive Plan
Under the Interactive Brokers Group, Inc. 2007 Stock Incentive Plan (the “Stock Incentive Plan”), up
to 9.2 million shares of Common Stock may be granted and issued to directors, officers, employees, contractors
and consultants of IBG, Inc. and its subsidiaries. The purpose of the Stock Incentive Plan is to promote IBG,
Inc.’s long-term financial success by attracting, retaining and rewarding eligible participants.
The Stock Incentive Plan is administered by the Compensation Committee of IBG, Inc.’s Board of
Directors. The Compensation Committee has discretionary authority to determine which employees are eligible
to participate in the Stock Incentive Plan. The Compensation Committee establishes the terms and conditions
of the awards under the Stock Incentive Plan, including the number of awards offered to each employee and all
other terms and conditions applicable to such awards in individual grant agreements. Awards are expected to be
made primarily through grants of Common Stock. The Stock Incentive Plan will provide that awards will be
subject to issuance over time and may be forfeited upon an employee’s termination of employment or violation
of certain applicable covenants prior to issuance, unless determined otherwise by the Compensation Committee.
The Stock Incentive Plan provides that, upon a change in control, the Compensation Committee may,
at its discretion, fully vest any granted but unissued shares of Common Stock awarded under the Stock
Incentive Plan, or provide that any such granted but unissued shares of Common Stock will be honored or
assumed, or new rights substituted therefore by the new employer on a substantially similar basis and on terms
and conditions substantially comparable to those of the Stock Incentive Plan.
Awards of 927,943 shares of Common Stock, with a fair value at the date of grant of $27,847, were
granted in connection with the IPO and awards are expected to continue to be granted on or about January 1 of
each year following the IPO, to eligible employees as part of an overall plan of equity compensation. The
shares of Common Stock granted at the time of the IPO were issued to IBG LLC, to be held as Treasury Stock,
258
and were distributed or will be distributable to employees in accordance with the following schedule:
10% on the date of the IPO; and
an additional 15% on each of the first six anniversaries of the date of the IPO, assuming continued
employment with IBG LLC and compliance with non-competition and other applicable covenants.
Of the fair value at the date of grant, $14,674 represented compensation accrued as of December 31,
2006 to former members of IBG LLC, with the remainder to be ratably accrued as compensation expense by the
Group from the date of the IPO over the requisite service period represented by the aforementioned distribution
schedule.
On July 31, 2007 an additional 16,665 shares of Common Stock were granted to certain employees,
with a fair value at the date of grant of $404. 10% of these shares were distributed to the employees during the
4th quarter of 2007 with the remaining shares, also held as Treasury Stock, to be distributed on the following six
anniversaries of the IPO with other Stock Incentive Plan grants made during 2007 under the aforementioned
distribution schedule.
For the years ended December 31, 2008 and 2007, awards with fair values at the date of grant of
$35,600 and $32,876, respectively, were granted. 2,065,432 and 1,055,206 shares of Common Stock were
issued to IBG LLC as of December 31, 2008 and 2007, respectively. These shares of Common Stock are being
held as Treasury Stock, and will be distributed to employees in accordance with the following schedule:
10% on the anniversary of the IPO; and
an additional 15% on each of the next six anniversaries of the date of the IPO, assuming continued
employment with IBG LLC and compliance with non-competition and other applicable covenants.
Estimated future grants under the Stock Incentive Plan will be accrued for ratably during each year
under the SFAS No. 123(R) “Graded Vesting” method. Compensation expense recognized in the consolidated
statement of income for the year ended December 31, 2008 was $21,034. Compensation expense recognized in
the consolidated statement of income for the year ended December 31, 2007, including amounts accrued under
pre-IPO incentive plan formulas, for grants awarded on January 1, 2008, was $11,143. Of this amount, $1,675
was recorded subsequent to the IPO through December 31, 2007. Estimated future compensation costs for
unvested awards at December 31, 2008 were $47.3 million.
On the date of the IPO, 187,953 shares of Common Stock, valued at $5,640, were distributed to
employees. During the third quarter of 2007, 45,857 shares valued at $1,376 were purchased by IBG LLC from
employees in connection with those employees’ elections to sell a portion of their shares in order to meet their
personal income tax obligations incurred as a result of share distributions. Shares purchased have been
recorded as Treasury Stock.
On May 9, 2008, 458,655 shares of Common Stock, with a total grant date fair value of $13.9 million
were distributed to employees pursuant to the 2007 ROI Unit Stock Plan and the Stock Incentive Plan. As
provided for under the terms of the plans, certain employees elected to sell, and the Group facilitated the sale of,
121,852 of the distributed shares to meet the employees’ personal income tax withholding obligations arising
from this share distribution.
Shares granted under the 2007 ROI Unit Stock Plan and the Stock Incentive Plan are subject to
forfeiture in the event an employee ceases employment with the Group. The plans provide that employees who
discontinue employment with the Group without cause and continue to meet the terms of the plans’ postemployment provisions will forfeit 50% of unvested previously granted shares unless the employee is over the
age of 59, in which case the employee would be eligible to receive 100% of unvested shares previously granted.
Distributions of remaining shares to former employees will occur annually following the discontinuation of
employment over a five (5) year vesting schedule, 12.5% in each of the first four years and 50% in the fifth
year. As of December 31, 2008, no shares have been distributed under these post-employment provisions.
259
The following is a summary of Stock Plan activity for the period from May 3, 2007 through December
31, 2008:
2007 Stock
Incentive Plan
Shares
2007 ROI Unit
Stock Plan
Shares
Balance, May 3, 2007
Granted
Forfeited by employees
Distributed to employees
2,020,823
(9,816)
(94,263)
1,916,744
1,250,000
(2,714)
(95,354)
1,151,932
Granted
2,065,432
(27,962)
(239,141)
3,715,073
(5,605)
(219,514)
926,813
Redeemable Members’ Interests
Prior to January 2, 2006, selected employees had been granted non-transferable member interests in
IBG LLC, which conferred ownership rights in IBG LLC and entitled the holders to their proportionate share of
the consolidated profits and losses of IBG LLC based on their holding percentages beginning on the date of the
grant.
As more fully described in Note 4, in connection with the Recapitalization and the Exchange
Agreement, the historical members of IBG LLC received membership interests in IBG Holdings LLC in
exchange for their membership interests in IBG LLC and, in connection with the consummation of the IPO,
IBG Holdings LLC used the net proceeds to redeem 10% of members’ interests in IBG Holdings LLC in
proportion to their interests. The Exchange Agreement also provides for future redemptions of member
interests and for the purchase of member interests in IBG LLC by IBG, Inc. from IBG Holdings LLC, which is
expected to result in IBG, Inc. acquiring the remaining member interests in IBG LLC that it does not own.
The “Agreement as to Member Interest Purchase Rights” (the “Agreement”) historically gave IBG
LLC the right to repurchase any member’s interests at its discretion at any time which, in particular, was
triggered by the termination of employment of a member-employee, and also permitted members to sell their
interests back to IBG LLC at any time, in every case for an amount equal to management’s estimate of fair
value, which is book value as defined in the Agreement. Because IBG LLC places a high value on the retention
of its key employees, payment for a portion of redeemed interests was contingent on a post-redemption
consulting services requirement that, among other conditions, required that a member-employee not compete
with IBG LLC in any area of its businesses for five years following the date of redemption. In order to enforce
these terms, payment for one-half of the redeemed interests was, under normal conditions, made within five
months after the redemption date. Payment for the remaining one-half of the redeemed interests was made five
years hence, subject to satisfaction of the consulting services and non-compete provisions of the Agreement.
IBG LLC had recognized compensation expense equal to the granted interest by the time of grant. If and when
the terms of the five-year consulting and non-compete period were satisfied, IBG LLC recorded a distribution
of redeemable members’ interests at such time as the remaining payment was made to the member-employee.
Should any portion of a member-employee’s interests be forfeited, such forfeited member interests would be
redistributed among the remaining members in proportion to their holding percentages. During 2008, payment
was made by IBG LLC for former member interests previously redeemed in the amount of $5,044, including
accrued interest of $508.
260
13. Income Taxes
Income tax expense for the three years ended December 31, 2008 differs from the U.S. federal
statutory rate due to the differing effective tax rates in foreign, state and local jurisdictions where certain
operating companies are subject to corporate taxation and due to IBG LLC’s status as a limited liability
company, which qualifies it as a partnership for Federal income tax purposes. Therefore, no Federal income
taxes are recognized by the Group, as described in Note 2. Accordingly, income tax expense reflects effective
tax rates in foreign state and local jurisdictions where certain Operating Companies are subject to corporate
taxation.
Deferred income taxes arise primarily due to mark to market and lower of cost or market valuation of
THE’s financial assets and liabilities and temporary differences arising from the deductibility of compensation
and depreciation expenses in different time periods for book and tax return purposes. For the three years ended
December 31, 2008, 2007 and 2006, the provision for income taxes consisted of:
2008
2007
2006
Current:
State and local
$
230
251
$
871
$
Foreign
67,618
50,001
27,108
Total current
67,848
50,252
27,979
Deferred:
Foreign
Total deferred
$
34,763
34,763
102,611
$
(4,293)
(4,293)
45,959
$
(587)
(587)
27,392
A reconciliation of the statutory U.S. Federal income tax rate of 35% to the Group’s effective tax rate
is set forth below:
2008
2007
2006
U.S. Statutory Tax Rate
35.0%
35.0%
35.0%
State, local and foreign taxes, net of federal benefit
8.2%
4.9%
3.6%
Rate benefit as a limited liability company prior to IPO
-35.0%
-35.0%
-35.0%
8.2%
4.9%
3.6%
Significant components of the Group’s deferred tax assets (liabilities), which are respectively reported
in other assets and in accounts payable, accrued expenses and other liabilities in the consolidated statements of
financial condition, as of December 31, 2008 and 2007 were as follows:
2008
Deferred tax assets:
Deferred compensation
Other
Total deferred tax assets
$
$
Deferred tax liabilities:
Foreign, primarily THE
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)
$
$
261
2007
547
548
1,095
$
(65,835)
(137)
(65,972)
(64,877)
$
$
$
512
365
877
(29,429)
(212)
(29,641)
(28,764)
The retained earnings of certain foreign subsidiaries of IBG LLC, which are considered permanently
reinvested, may be subject to additional U.S. income taxes if such earnings were to be distributed. The Group
has not provided deferred U.S income taxes since the tax bases of such subsidiaries exceed their book bases.
As of and for the years ended December 31, 2008 and 2007, the Group had no unrecognized tax
liabilities as defined under FIN No. 48. U.S. entities are subject to tax jurisdiction audits for the years 2005
through 2008. Foreign entities’ income tax returns are generally accepted when filed, but the previous two
years (2007 and 2008) are subject to audit.
14. Property and Equipment
Property and equipment which are included in other assets in the consolidated statements of financial
condition and are comprised of leasehold improvements, computer hardware, software developed for the
Group’s internal use and office furniture and equipment, at December 31 consisted of:
2008
18,244
12,038
62,234
4,718
97,234
(52,964)
$
44,270
Leasehold improvements
Computer equipment
Internally developed software
Office furniture and equipment
$
Less - accumulated depreciation and amortization
Property and equipment , net
2007
7,083
13,086
51,238
5,387
76,794
(41,322)
$
35,472
$
Depreciation and amortization of $17,897, $12,068 and $11,522 for the three years ended December
31, 2008, 2007 and 2006, respectively, is included in occupancy, depreciation and amortization expenses in the
consolidated statements of income.
15. Commitments, Contingencies and Guarantees
Litigation
IBG LLC is subject to certain pending and threatened legal actions which arise out of the normal
course of business. Litigation is inherently unpredictable, particularly in proceedings where claimants seek
substantial or indeterminate damages, or which are in their early stages. IBG LLC cannot predict with certainty
the actual loss or range of loss related to such legal proceedings, the manner in which they will be resolved, the
timing of final resolution or the ultimate settlement. Consequently, IBG LLC cannot estimate losses or ranges
of losses related to such legal matters, even in instances where it is reasonably possible that a future loss will be
incurred.
IBG LLC accounts for potential losses related to litigation in accordance with SFAS No. 5
“Accounting for Contingencies.” As of December 31, 2008 and, 2007, reserves provided for potential losses
related to litigation matters were not material.
Leases
Operating Companies have non-cancelable operating leases covering office space. All but one of the
office space leases are subject to escalation clauses based on specified costs incurred by the respective landlords
and contain renewal elections. Rent expense calculated on a straight-line basis for the Group was $11,207,
$7,326 and $6,156 for the three years ended December 31, 2008, 2007 and 2006, respectively, and is reported in
occupancy, depreciation and amortization expenses in the consolidated statements of income. As of December
31, 2008, the Group’s minimum annual lease commitments were as follows:
262
Year
2009
2010
2011
2012
2013
Thereafter
$
$
9,892
8,501
8,567
8,137
8,175
12,813
56,085
Guarantees
Certain of the Operating Companies provide guarantees to securities clearing houses and exchanges
which meet the accounting definition of a guarantee under FIN No. 45, “Guarantor’s Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” Under the
standard membership agreement, members are required to guarantee collectively the performance of other
members. Under the agreements, if another member becomes unable to satisfy its obligations to the
clearinghouse, other members would be required to meet shortfalls. In the opinion of management, the
Operating Companies’ liability under these arrangements is not quantifiable and could exceed the cash and
securities they have posted as collateral. However, the potential for these Operating Companies to be required
to make payments under these arrangements is remote. Accordingly, no contingent liability is carried on the
consolidated statements of financial condition for these arrangements.
In connection with its retail brokerage business, IB LLC performs securities and commodities
execution, clearance and settlement on behalf of its customers for whom it commits to settle trades submitted by
such customers with the respective clearing houses. If a customer fails to fulfill its obligation, IB LLC must
fulfill the customer’s obligation with the trade counterparty. No contingent liability is carried on the
consolidated statements of financial condition for such customer obligations.
IB LLC is fully secured by assets in customers’ accounts and any proceeds received from securities
and commodities transactions entered into by IB LLC on behalf of customers. No contingent liability is carried
on the consolidated statements of financial condition for these fully collateralized transactions.
Other Commitments
Certain clearing houses and clearing banks and firms used by certain Operating Companies are given a
security interest in certain assets of those Operating Companies held by those clearing organizations. These
assets may be applied to satisfy the obligations of those Operating Companies to the respective clearing
organizations.
16. Segment and Geographic Information
IBG LLC operates in two business segments, market making and electronic brokerage. IBG LLC
conducts its market making business through its Timber Hill subsidiaries on the world’s leading exchanges and
market centers, primarily in exchange-traded equities, equity options and equity-index options and futures. IBG
LLC conducts its electronic brokerage business through its Interactive Brokers subsidiaries, which provide
electronic execution and clearing services to customers worldwide.
263
There are significant transactions and balances between the Operating Companies, primarily as a result
of certain Operating Companies holding exchange or clearing organization memberships, which are utilized to
provide execution and clearing services to affiliates. Intra-segment and intra-region income and expenses and
related balances have been eliminated in this segment and geographic information in order to accurately reflect
the external business conducted in each segment or geographical region. Rates on transactions between
segments are designed to approximate full costs. Corporate items include non-allocated corporate income and
expenses that are not attributed to segments for performance measurement, corporate assets and eliminations.
Management believes that the following information by business segment provides a reasonable representation
of each segment’s contribution to total net revenues, income before income taxes and minority interest for the
three years ended December 31, 2008, 2007 and 2006 and to total assets as of December 31, 2008 and
December 31, 2007:
2008
Net revenues:
Market making
Electronic brokerage
Corporate and eliminations
Total net revenues
Income before income taxes:
Market making
Total income before income taxes
2007
2006
$
1,343,520
505,760
687
$
1,031,168
425,142
11,716
$
$
1,849,967
$
1,468,026
$ 1,252,409
$
1,027,633
223,983
(1,863)
$
719,771
197,871
13,957
$
662,823
98,612
126
$
1,249,753
$
931,599
$
761,561
Segment assets:
Market making
Total assets
264
December 31,
2008
December 31,
2007
$ 21,227,371
8,152,375
(1,378,469)
$ 26,914,815
8,935,387
(1,680,344)
$ 28,001,277
$ 34,169,858
954,729
298,390
(710)
IBG LLC operates its automated global business in U.S. and international markets on more than 80
exchanges and market centers. A significant portion of IBG LLC’s net revenues are generated by consolidated
subsidiaries operating outside the United States. International operations are comprised of market making and
electronic brokerage activities in 27 countries in Europe, Asia and North America (outside the United States).
The following table presents total net revenues and income before income taxes and minority interest by
geographic area for the three years ended December 31, 2008, 2007 and 2006:
2008
Net revenues:
United States
International
Total net revenues
United States
International
Total income before income taxes and minority interest
2007
2006
$
1,039,699
810,010
258
$
994,847
462,643
10,536
$
1,849,967
$
1,468,026
$
646,888
605,286
(2,421)
$
642,665
276,164
12,770
$
642,644
117,460
1,457
$
1,249,753
$
931,599
$
761,561
$
986,720
264,991
698
$ 1,252,409
17. Regulatory Requirements
At December 31, 2008, aggregate excess regulatory capital for all of the Operating Companies was
$2,948,527.
TH LLC and IB LLC are subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Exchange
Act and the CFTC’s minimum financial requirements (Regulation 1.17). At December 31, 2008, TH LLC had
net capital of $1,200,562, which was $1,192,277 in excess of required net capital of $8,285, and IB LLC had net
capital of $606,402, which was $567,852 in excess of required net capital of $38,550.
THE is subject to the Swiss National Bank eligible equity requirement. At December 31, 2008, THE
had eligible equity of $1,390,644, which was $978,326 in excess of the minimum requirement of $412,318.
THSHK is subject to the Hong Kong Securities Futures Commission liquid capital requirement, THA
is subject to the Australian Stock Exchange liquid capital requirement, THC and IBC are subject to the
Investment Industry Regulatory Organization of Canada risk adjusted capital requirement, IBUK is subject to
the U.K. Financial Services Authority financial resources requirement and IBSJ is subject to the Japanese
Financial Supervisory Agency capital requirements.
At December 31, 2008, all of the Operating Companies were in compliance with their respective
regulatory capital requirements.
Regulatory capital requirements could restrict the Operating Companies from expanding their business
and declaring dividends if their net capital does not meet regulatory requirements. Also, certain entities within
IBG LLC are subject to other regulatory restrictions and requirements.
265
18. Related Party Transactions
Receivable from affiliate represents amounts advanced to IBG, Inc. As of December 31, 2008 and
2007, the Group had an intercompany loan from IBG, Inc. of $14,019 and $4,500, respectively, at interest rates
of 0.42% and 4.47%, respectively. Interest expense for the years ended December 31, 2008 and 2007 was $336
and $136, respectively.
Included in receivable from and payable to customers in the accompanying consolidated statement of
financial condition as of December 31, 2008 were director and officer account balances of $71,823 and
$55,113, respectively. Included in senior notes payable at December 31, 2008 were senior notes purchased by
directors and their affiliates of $9,492.
On June 28, 2007, THE and The TP Holdings Limited Partnership (“TP Holdings”), an affiliated entity
of Thomas Peterffy, entered into a Claims Purchase Agreement. Pursuant to the agreement, THE sold to TP
Holdings for cash of $37,000 certain claims arising from an unusual trading loss of approximately $37,000 that
occurred on a German exchange in May 2007. Under the terms of the Claims Purchase Agreement, in the event
that TP Holdings collects an amount in excess of the purchase price plus out-of-pocket expenses, it will remit
such excess amount to THE. This transaction was approved by IBG, Inc.’s audit committee of its board of
directors. The trading loss is reported in trading gains in the consolidated statement of income. Because the
recovery of the loss was received from an affiliate, the payment to THE was accounted for as a capital
contribution.
19. Subsequent Event
On January 16, 2009, IBG LLC paid a dividend to its members of $37,700.
*****
266
Independent Auditor’s Report And
Consolidated Financial Statements
Years Ended December 31, 2009, 2008, 2007
267
IBGLLC
and Subsidiaries
Independent Auditors' Report
And Consolidated Financial Statements
Years Ended December 31, 2009, 2008 and 2007
268
TABLE OF CONTENTS
Page
270
Consolidated Statements of Financial Condition as of December 31, 2009 and 2008
271
Consolidated Statements of Income for the years ended December 31, 2009, 2008 and 2007
272
Consolidated Statements of Cash Flows for the years ended December 31, 2009, 2008 and 2007
273
Consolidated Statements of Changes in Equity for the years ended December 31, 2009, 2008 and
2007
274
275-299
269
a
Deloifte & Touche LLP
Two World Financial Center
New York, NY 10281-1414
~/' 11~' \I " ilte ,
USA
Tel: +1 212 436 2000
Fax: +1 212 436 5000
INDEPENDENT AUDITORS' REPORT
www .deloitte .com
To the Members of IBG LLC
Greenwich, CT
We have audited the accompanying consolidated statements of financial condition of IBG
LLC and subsidiaries (the "Group") as of December 31, 2009 and 2008, and the related
consolidated statements of income, cash flows, and changes in equity for the three years
in the period ended December 3 l, 2009 . These financial statements are the responsibility
of the Group's management . Our responsibility is to express an opinion on these
financial statements based on our audits .
We conducted our audits in accordance with generally accepted auditing standards as
established by the Auditing Standards Board (United States) and in accordance with the
auditing standards of the Public Company Accounting Oversight Board (United States) .
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement . The
Company is not required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting . Our audits included consideration of internal control
over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company's internal control over financial reporting . Accordingly, we express no
such opinion . An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation . We believe that our audits provide a reasonable basis
for our opinion .
In our opinion, such consolidated financial statements present fairly, in all material
respects, the financial position of IBG LLC and subsidiaries at December 31, 2009 and
2008 and the results of their operations and their cash flows for each of the three years in
the period ended December 31, 2009, in conformity with accounting principles generally
accepted in the United States of America .
b~
"i
T"
i..i ..l
March 15, 2010
Member of
Deloitte Touche Tohmatsu
270
Consolidated Statements of Financial Condition
December 31,
December 31,
$
5
2009
(in thousands)
Assets
Cash mid securities - segregated for regulatory purposes
Secuntiesborrowecl
806,046
6,728,936
5,063,026
413 .005
Trading assets, at fair value:
Financial instruments owned acid pledged as collateral
Trading liabilities - financial instruments sold but not yet purchased, at fair value
Securities loaned
Shoe-termbon-owings
Other payables:
Customers
3,239,625
493,063
1,122
1,621,162
2,527,981
641
162,018
S 2G;265,543
4.174,9(>9
149,024
$ 28,001,277
14,720
3,748,530
Senior notes p ayable
$ 13,476,757
656,625
208,117
10,587,701
6,929,617
-
21,432,561
Commitments, contingencies and guaranties
Equity:
Members' interests, including aa :wnulated other comprehensive income of $277906
and $173,139
Total equity
Total liabilities end equity
4,831,794
1,188
4,832,982
$ 26,265,543
See accompanying notes to the consolidated financial statements .
271
25,185
8,763,201
1,133,658
320,803
S
164,523
9,560
238,224
9,114
11,009,122
205,777
Brokers, dealers andclearing organizations
Accounts payable. accrued expenses and other liabilities
Interest
715,732
10,049,481
1,0(,5,180
11,114,661
Interest
Liabilities:
942,889
4,992,121
5,911,881
7,80),944
1,534,038
9,34 3,982
Other receivables :
Customers, less allowance for doubtful accounts of SI 6,637 and
17,572 at December 31, 2009 an d 2008
Receivable fromaf6liates
Other assets
Total assets
2008
1,614,810
14,019
284,488
16,182
8,859,116
143,054
300,000
23,643,669 _
4,35G,6(ß
940
4,357,608
$ 28,001,277
Consolidated Statements of Income
(in thousands)
2008
2007
G33,865
353,030
121,618
61,260
1,169,773
$1,303,994
359,529
437,10,7
81,669
2,182,359
$ 888,0G5
261,104
782,197
92,247
2,023,613
69,591
332,130
555,349
1,100,182
1,850,229
1,468,264
Non-interest expenses :
Communications
273,203
175,827
40,340
22,789
43,518
555,677
322,746
158,018
37,GG3
18,650
63,138
600,215
544,505
1,250,014
931,837
Income tax expense
Net income including non-controlling interests
Net income attributable to non-controlling interests
Net income
37,5G9
506,936
294
506,G42
102,611
1,147,403
202
$1,147,141
45,959
885,878
238
$ 885,640
2009
Revenues :
Trading gains
Interest income
Other income
Total revenues
Interest expense
Total net revenues
ä
See accompanying notes to the consolidated financial statements .
272
335,75G
118,770
2G,482
14,889
40,530
536,427 -
Consolidated Statements of Cash Flows
(in thousands)
Cash floes from operating activities :
Net income
Adjustments to reconcile net income to net cash provided by operating
2008
2007
ä1 .147,403
$ 885,878
2009
$
activities :
506,93 6
Translation (gains) losses (2008, as adjusted)
10,55_5
(38,C10)
59,201
34,763
(44,674)
(4,293)
Employee stuck plan compensation
33,192
25,921
13,264
21,074
17,897
8,939
Gains (losses) on non-trading investments, net
Change in operating assets and liabilities (2008, as adjusted):
Decrease (increase) in cash and securities - segregated for regulatory
purposes
Decrease (increase) in securities purchased under agreements to resell
14,107
(559)
(1,736,695)
855,874
302,710
1,810,626
240,462
956,426
(680,721)
5,764,571
295,559
2,053,292
?6,138
(14,270)
Decrease in trading liabilities
(4,683,259)
479,33
Increase (decrease) in payable to customers
(3,707)
(820,817)
(4,3 10,029)
3,656,239
(698,735)
(1,481,156)
Increase (decrease) in other paryables
Cash flows from investing activities :
Distributions received from equity investment
Purchase of trading rights
Cash flows from financing activities :
Dividends paid
Increase (decrease) in short-term borrowings, net
Reduction in non-controlling interest in subsidiary
(139,324)
508,116
(445,?93)
300
(300,800)
86,464
(14,903)
(2dR,529)
474,566
(491,9G8)
550,000
(550,000)
(1,281,108)
(76,001)
(866)
-
(305,018)
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
3Q3(,0
(13G,R43)
Supplemental disclosures of cash flow information :
Interest paid
Taxes paid
Non-cash investing activities : .
Refinancing ofbridge loan
(13 .48)
(2äS,269)
(3,200,489)
3,71 ±,557
902,578
(9,554)
(750)
(25,968)
(3(,272)
(282,457)
458,746
(448,888)
238,000
(88,000)
24,378
-
37,000
-
-
(1,376)
(1,623,906)
(52,256)
422,759
(62,597)
28,743
(149,141)
$
942,8$9
806,046
520,130
$ 942,889
669 .271
$ 520,130
$
$
76,659
87,354
S 369,200
$ 60,406
5 551,918
$ 15,253
ä
-
$
See accompanying notes to the consolidated financial statements
273
(1 .652,053)
(79,01>)
5,866
635
(26,695)
(20,194)
-
(1,156,60G)
(1,066,914)
2,119,115
(11,300)
2,292
(18,492)
(27,500)
?z
-
(2,119,496)
3,852,344
62,882
30,389
165,31
Net cash provided by (used in) operating activities
(C30)
1,731
20.287
(1,618,958)
12,068
-
5
5
-
$
$
10 .0 t8
10,018
Consolidated Statements of Changes in Equity
Three years Ended December 31, 2009
Treasury
Stock
1-Iembers'
Interests
2,703,349
Comprehensive income'.
Net income
Accumulated
Other
Comprehensive
In come
$
835,640
$
IBG, Inc. Class A coimnon stock distributed to employees
Comprehensive income :
Net Income
99.271
(99,271)
5,681
$ 3,343,559
$
$
174,849
~
(3,986)
(39)
Comprehensive income :
Net Income
(72,015)
S
35,599
(35,599)
(3,986)
35,599
(35,599)
(866)
(866)
13,881
506.642
506,642
ä
17,320
$
Dividends
Former members' interests redeemed
(139,300)
173,139
$
y
$
506,936
104,767
294
611,703
(24)
(139,324)
(14,733)
(IC,g)
(22)
42,789
(42,789)
17,898
$
277,906
274
104,767
(42,789)
35218
4,357,608
-
42 .789
17,898
$4,518,670
S
294
(1G5)
22
940
104,767
-
(14,738)
Reduction in non-convolling interest in subsidiary
[BG, Inc. Class A common stock acquired
[BG, Inc. Class A common stack distributed to employees
Balance, December 31, 2009 .
(248 .529)
13,881
4,166,209
(1,376)
3,523,430
1,147,403
(1,710)
1,145,693
(72,015)
IBG, Inc.
Balance, December 31 . ZOOb
$
262
(248,490)
Former members' interests redeemed
IBG, Inc. Class A conunon stock distributed to employees
Acquisition of IBG, Inc. Class A common stock on behalf of
717
262
(1,710)
(1,710)
1,147,141
(?82,47)
37,000
5,681
(1,376)
4,305
2.802,423
885,878
76,2,1
962,159
99,271
(99,271)
1,147,141
Dividends
$
(27)
S
IBC, Inc. Class A common stock acquired from employees
Balance. December 31, 2007
Tota l E quity
233
(282,430)
37,000
506
238
76,281
76,281
885,640
Dividends
Capital contribution to THE
98,568
NonControlling
Interests
$
1,188
$
4.332,982
(dollars in thousands, except share amounts, unless otherwise noted)
1.
Organization and Nature of Business
The accompanying consolidated financial statements of IBG LLC and subsidiaries, a Connecticut
limited liability company, include the financial results of IBG LLC and its operating subsidiaries
(collectively, "IBG LLC" or the "Group") . The Group is consolidated into Interactive Brokers Group, Inc .
("IBG, Inc_"), which on May 9, 2007, completed its purchase of a 10 .0% interest in IBG LLC (Note 4) and
became the sole managing member of the Group .
The Group is an automated global market maker and electronic broker specializing in routing
orders and processing trades in securities, futures and foreign exchange instruments . The Group conducts
its business through its operating subsidiaries (collectively called the "Operating Compaiües") : Timber
Hill LLC ("TH LLC"), Timber Hill Europe AG ("THE"), Timber Hill Securities Hong Kong Limited
("THSHK"), Timber Hill Australia Pty Limited ("THA"), Timber Hill Canada Company ("THC"),
Interactive Brokers LLC ("IB LLC") and subsidiaries, Interactive Brokers Canada Inc . ("IBC"), Interactive
Brokers (U .K .) Limited ("IBUK"), Interactive Brokers (India) Private Limited ("IBI"), Interactive Brokers
Hungary KFT ("IBH"), IB Exchange Corp . ("IBEC"), Interactive Brokers Securities Japan, Inc . ("IBSJ"),
Interactive Brokers Software Services Estonia OU ("IBEST") and Interactive Brokers Software Services
Rus ("IBRLIS") .
The Operating Companies are members of various securities and commodities exchanges in North
America, Europe and die Asia/Pacific region. Other than IB LLC, IBUKand IBC, the Operating
Companies do not carry securities accounts for customers or perform custodial functions relating to
customer securities . IB LLC, a U.S . broker-dealer and futures commission merchant, conducts electronic
brokerage services for customers . IB LLC carries customer securities and coiYUnodity accounts and is
subject to the regulatory requirements of the U .S . Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the U.S . Commodities Exchange Act .
2.
Significant Accounting Policies
Basis of Presentation
These consolidated financial statements are presented in U .S . dollars and have been prepared in
conformity with accounting standards under the FASB Accounting Standards Codification, which became
effective as of July l, 2009 and applies to all financial statements issued after September 15, 2009 . The
Codification replaced the previous four level Generally Accepted Accounting Principles ("GAAP")
hierarchy of authoritative accounting and reporting guidance ("Levels A through D"), other than the rules
and interpretive releases of the SEC, with two levels, "authoritative" arid "non-authoritative" . Authoritative
guidance is comprised of literature issued by the FASB and its predecessor organizations, as presented in
the Codification . The ASC is comprised of tour (4) principal "Areas" - Presentation, Financial Statement
Line Items, Broad Transaction and Industry Content . Non-authoritative guidance is comprised of all "nongrandfathered, non-SEC accounting literature" not included in the Codification .
Adoption of SFAS No . 160, Noncontrolling Interests in Consolidated Financial Statements, an
amendment ofARB No. 51, now a sub-topic within ASC 810, Consolidation, as of January 1, 2009 required
the Company to report non-controlling interests in subsidiaries (formerly reported as "minority interests")
as a separate component-of equity in the current period . ASC 810 also required changes in presentation and
retrospective disclosure of non-controlling interests in the statements of income, of cash flows and of
changes in equity for all periods presented. Accordingly, the accompanying consolidated financial
statements are presented as if ASC 810 had been applicable historically . Non-controlling interests in
subsidiaries reported in Equity in the consolidated statement of financial condition include immaterial non-
275
controlling interests in subsidiaries of IBG LLC . Net income attributable to non-controlling interests in
subsidiaries of IBG LLC, which is collectively immaterial ; has been reclassified from other income to net
income attributable to non-controlling interests in the consolidated statements of income for all periods
presented.
Gains and losses from foreign currency transactions are included in trading gains and losses where
related to market making activities or in interest income where related to investment of customer funds as
part of electronic brokerage activities in the consolidated statements of income . Non-U.S . subsidiaries have
a functional currency (i .e ., the currency in which activities are primarily conducted) that is other than the
U .S . dollar. Such subsidiaries' assets and liabilities are translated to U .S . dollars at year-end exchange
rates, while revenues and expenses are translated at average exchange rates during the year . Adjustments
that result from translating amounts from a subsidiary's functional currency to the U .S . dollar are reported
in redeemable members' interests as a component of accumulated other comprehensive income .
Translation reported for die current period in the consolidated statements of cash flows, excludes
translation nn settled currency trading positions. For comparison purposes, previously reported translation
of ($87,552) for the year ended December 31, 2008 has been excluded, and prior reported changes in
operating assets and liabilities have likewise been adjusted for the correction of this error. This change had
no effect on total cash provided by operating activities or the total change in cash for the periods presented.
Principles of Consolidation
The consolidated financial statements include the accounts of MG LLC and its majority and
wholly owned subsidiaries . In accordance with ASC 810 (SFAS No . 1C0), the Group records as noncontrolling interests the ownership in operating companies that IBC LLC does not hold . The Group's
policy is to consolidate all entities of which it owns more than 50% unless it does not have control . All
inter-company balances and transactions have been eliminated . IBG LLC would also consolidate any
Variable Interest Entities ("VIEs") pursuant to ASC 860, Transfers crud Servicing and ASC 810 (which
incorporate provisions from former FASB Interpretation ("FIN") No . 4((R)) of which it is the primary
beneficiary . IBG I:LC currently is not the primary beneficiary of any such entities and therefore no VIES
are included in the consolidated financial statements .
Use of Estimates
The preparation of financial statements in conformity with the Codification requires management
to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated
financial statements and accompanying notes . Estimates, by their nature, are based on .judgment and
available information. Therefore, actual results could differ materially from those estimates . Such
estimates include the estimated fair value of investments accounted for under the equity method of
accounting, the estimated useful lives of property and equipment, including capitalized internally
developed software, the allowance for doubthil accounts, compensation accruals, tax liabilities and
estimated contingency reserves .
Fair Value
At December 31, 2009 and 2008, substantially all of IBG LLC's assets and liabilities, including
financial instruments, were carried at fair value based on published market prices and are marked to market
daily, or were assets which are short-teen in nature (such as U .S . government treasury bills or spot foreign
exchange) quid were carried at amounts that approximate fair value .
276
IBG LLC applies the fair value hierarchy of ASC 820, Fair Value Measurements and Disclosures
(formerly SFAS Nn . 157), to prioritize the inputs to valuation techniques used to measure fair value . The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and
liabilities and the lowest priority to unobservable inputs . The three levels of the fair value hierarchy are :
Level 1
Unadjusted quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or liabilities;
Level 2
Quoted prices in markets that are not considered to be active or financial instruments
for which all significant inputs are observable, either directly or indirectly ; and
Level 3
Prices or valuations that require inputs that are both significant to fair value
measurement and unobservable
Financial instruments owned and financial instruments sold, but not yet purchased, except forward
currency contracts and certain corporate debt securities, which are classified as Level 2 financial
instruments, are classified within Level 1 of the fair value hierarchy . Level 1 financial instruments, which
are valued using quoted market prices as published by exchanges and clearing houses or otherwise broadly
distributed in active markets, include U .S . govermnent and sovereign obligations, active listed securities,
options, futures, options on fiitures and corporate debt securities . IBG LLC does not adjust quoted prices for
Level 1 financial instruments, even in file event that the Group may hold a large position whereby a purchase
or sale could reasonably impact quoted prices . Currency forward contracts are classified as Level Z financial
instruments as such instruments are not exchange-traded. Corporate debt securities that are not actively traded
are also classified in Level 2 .
Stock-Based Compensation
IBG LLC follows ASC 718, Compensation - Stock Compensation (formerly SFAS Nn . 123(R)),
to account for its stock-based compensation plans. ASC 718 requires all share-based payments to
employees to he recognized in the financial statements using 1 fair value-based method . As a result, the
Group expenses the fair value of stack granted to employees over the related vesting period.
Cash and Cash Equivalents
IBG LLC defines cash equivalents as short-term, highly liquid securities and cash deposits with
original maturities of three months or less, other than those used for trading purposes .
Crash and ,Securities -,Segregated for Regulatory Purposes
As a result of customer activities, certain Operating Companies are obligated by rules mandated
by their primary regulators to segregate or set aside cash or qualified securities to satisfy such regulations,
which regulations lave been promulgated to protect customer assets . In addition, substantially all of the
Operating Companies are members of various clearing organizations at which cash or securities are
deposited as required to conduct day-to-day clearance activities . Securities segregated for regulatory
purposes consisted of Federal Deposit Insurance Corporation insured corporate bondsof $441,391 at
December 3 1, 2009, which were recorded as Level 2 financial instruments .
,Securities Borrowed and Securities Loaned
Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced
or received . Securities borrowed transactions require IBG LLC to provide counterparties with collateral,
which may be in the form of cash, letters of credit, or other securities . With respect to securities loaned,
IBG LLC receives collateral, which may he in the form of cash or other securities in an amount generally in
excess of the fair value of the securities loaned.
277
IBC LLC monitors the market value of securities borrowed acid loaned nn a daily basis, with
additional collateral obtained or refunded as permitted contractually . Receivables and payables with the
same counterparty are not offset in the consolidated statements of financial condition . For these
transactions, the fees received or paid by IBG LLC are recorded as interest income or interest expense in
the consolidated statements of income .
Financial Instruments Owned and Sold Brit Not Yet Purchased
Stocks, govertunent and corporate bonds, fiihues and options transactions are reported ni the
consolidated financial statements on a trade date basis . All financial instruments owned and financial
instruments sold but not yet purchased are recorded at fair value based upon quoted market prices . All
firm-owned financial instnunents pledged to counterparties where the counterparty has the right, by
contract or custom, to sell or repledge the financial instruments are classified as financial instruments
owned and pledged as collateral in the consolidated statements of financial condition .
IBG LLC also enters into currency forward contracts. These transactions, which are also reported
on a trade date basis, are agreements to exchange a fixed amount of one currency for a specified amount of
a second currency at the outset and at completion of the currency forward contract teen . Unrealized markto-market gains and losses on currency forward contracts are reported as components of financial
instruments owned or financial instruments sold but not yet purchased in the consolidated statements of
financial condition . Net earnings or tosses are reported as couiponents of interest income in the
consolidated statements of income .
Customer Receinubles and Puyables
Customer securities transactions are recorded on a settlement date basis and customer
commodities transactions are recorded on a trade date basis. Receivables from and payables to customers
include amounts due on cash and margin transactions, including futures contracts transacted on behalf of
customers. Securities owned by customers, including those that collateralize margin loans or other similar
transactions, are not reported in the consolidated statements of financial condition. Amounts receivable
from customers that are determined by management to be uncollectible are written oft to general and
administrative expense.
Receivables fron and Payables to Brokers, Dealers and Clearing Organizations
Receivables from brokers, dealers and clearing organizations include amounts receivable for
securities not delivered by IBG LLC to the purchaser by the settlement date ("fails to deliver") and margin
deposits . Pay2bles to brokers, dealers and clearing organizations include amounts payable for securities not
received by IBG LLC from a seller by the settlement date ("fails to receive") . Receivables and payables to
brokers, dealers and clearing organizations also include amounts related to futures contracts executed on
behalf of customers as well as net payables end receivables from unsettled trades .
Investments
IBG LLC makes certain strategic investments and accounts for these investments under the cost
method of accounting or under the equity method of accounting as required under ASC 323, Investments Eqcrilj, Method and Joint Ventures (formerly APB Opinion Nn . 18) . Investments are accounted for under
the equity method of accounting, when IBG LLC leas significant influence over the investee . Investments
accounted for under the equity method, including where the investee is a limited partnership or limited
liability company, sue recorded at the fair value amount of IBG LLC's investment and adjusted each period
for IBG LLCs share of the vYVestee's income or loss . IBG LLC's share of the income or losses from
equity investments is reported as a component of other income in the consolidated statements of income
and the recorded amounts of IBG LLC's equity investments, which are included in other assets in the
consolidated statements of financial condition, increase or decrease accordingly . Distributions received
from equity investees are recorded as reductions to the respective investment balance .
278
Investments accounted for under the cost method are recorded at the fair value of IBG LLC's
investment at inception . IBG LLC records investment income to the extent of dividends received nn such
investments . In February 2009, the Group invested $7,500 in Quadriserv Inc ., an electronic securities
lending platform provider, which investment is being accounted for raider the cost method .
A judgmental aspect of accounting for investments is evaluating whether an other-than-temporary
decline in the value of an investment his occurred . The evaluation of an other-dean-temporary impairment
is dependent on specific quantitative and qualitative factors and circumstances surrounding an investment,
including recurring operating losses, credit defaults and subsequent rounds of financing . None of IBG
LLC's equity investments have readily determinable market values . All equity investments are reviewed
for changes in circumstances or occurrence of events that suggest IBG LLC's investment may not be
recoverable . If an unrealized loss on any investment is considered to be other-than-temporary, the loss is
recognized in the period the determination is made . IBG LLC also holds exchange memberships and
investments in equity securities of certain exchanges as required to qualify as a clearing member, and
strategic investments in corporate stock that do not qualify for equity method accounting . Such
investments are recorded at cost or, if an other-than-temporary impairment in value has occurred, at a value
that reflects management's estimate of the impairment, and are included in other assets in the consolidated
statements of financial condition . Dividends are recognized as a component of other income as such
dividends are received.
As a result of a recap italization transaction and a sale by W . R . Hambrecht + Co . Inc . of its
remaining assets, the Group recorded a permanent impairment loss of $6,397 for the year ended December
31, 2009 on its loans to and warrants to purchase approximately 25 .86% of W .R . Hambreeht + Co . Inc .,
reducing the book value of these investments to $-0- .
Property and equipment, which is a component of other assets, consist of purchased technology
hardware and software, internally developed software, leasehold improvements and office furniture and
equipment. Property end equipment are recorded at historical cost, less accumulated depreciation and
amortization . Additions and improvements that extend the lives of assets are capitalized, while
expenditures for repairs and maintenance are expensed as incurred . Depreciation and amortization sue
computed using the straight-line method . Equipment is depreciated over the estimated useful lives of the
assets, while leasehold improvements are amortized over the lesser of the estimated economic useful life of
the asset or the term of the lease . Computer equipment is depreciated over three to five years and office
furniture and equipment are depreciated over five to seven years . Qualifying costs for internally developed
software are capitalized and amortized over the expected useful life of the developed software, not to
exceed three years .
Comprehensive Income and Foreign Currency Translation
Comprehensive income consists of two components' net income and other comprehensive income .
Other comprehensive income refers to revenues, expenses, gains and losses that are included in
stockholders' equity but are excluded from net income. IBG LLC's other comprehensive income is
comprised of foreign currency translation adjustments .
IBG LLC's international Operating Companies have a functional currency ( .e ., the currency in
which activities are primarily conducted) that is. other than the U .S . dollar. Such subsidiaries' assets and
liabilities are translated into U .S . dollars at period-end exchange rates, and revenues and expenses are
translated at average exchange rates prevailing during the period . Translation gains and losses from market
making and electronic brokerage activities, respectively, are included in trading gains and in other income
in the accompanying corisotidated statements of income . Adjustments that result from translating amounts
from a subsidiary's functional currency are reported as a component of accumulated other comprehensive
income .
279
Revenue Recognition
- Trading Gains
Trading gains and losses ire recorded nn trade date, and are reported nn a net basis . Trading gains
are comprised of changes in the fair value of trading assets and liabilities (i .e ., unrealized gains and losses)
and realized gains and losses . Dividends are integral to the valuation of stocks bought and sold and,
accordingly, are reported on a net basis as a component of trading gains in the accompanying consolidated
statements of income .
- Comrrrissions and Execution Fees
Commissions charged for executing and clearing customer transactions are accrued on a trade date
basis and are reported as commissions and execution fees in the consolidated statements of income, and the
related expenses are reported as execution and clearing expenses, also on a trade date basis .
Income Tares
IBG LLC accounts for income taxes in accordance with ASC 740, Income Taxes (which
incorporates former SFAS No . 109 and FIN No . 48), "Income Taxes," which requires the recognition of tax
benefits or expenses on the temporary differences between the financial reporting and tax bases of assets
and liabilities, including the accounting for uncertainty of income tax positions recognized in financial
statements, prescribing a "more likely than not" threshold and measurement attribute for recognition in the
financial statements of 1n asset or liability resulting from a tax position taken or expected to he taken in an
income tax return,
The Group operates in the United States as a limited liability company that was treated as a
partnership for U .S . federal income tax purposes . Accordingly, the Group's income was not subject to U .S .
federal income tales . Taxes related to income earned by partnerships represent obligations of the
individual partners Income taxes shown in the Croup's consolidated statements of income are primarily
attributable to taxes incurred in non-U .S . entities . State and local income taxes reported in the consolidated
statements of income represent taxes assessed by jurisdictions that do not recognize the Group's limited
liability company status . Outside the United States, the Group principally operates through subsidiary
corporations which are subject to local income taxes . Foreign income taxes paid on dividends received are
also reported as income taxes .
IBG LLC recognizes interest related to income tax matters as interest income or expense and
penalties related to income tax matters as income tax expense .
Recently Issued Accounting Pronouncements
Subsequent to the adoption of the ASC, the FASB will issue Accounting Standards Updates
("ASU's") as the means to add to or delete from, or to amend the ASC. Following is a summary of
recently issued ASU's that miry affect the Company's consolidated financial statements :
Status
Affects
ASiJ 2009-OS
Measuring Liabilities at Fair Value - provides
guidance on the measurement of the fair value of
liabilities under ASC 820 .
Effective for interim and annual
periods beginning after August
28, 2009
ASU 2009-07
Accounting for Various Topics - Technical
corrections to SEC references in the ASC .
Upon issuance
ASU 2009-08
Earnings per Share - amendment to ASC 2(0-10S99 (SSC Update)
Upon issuance
ASU 2009-09
Accounting fir Investments - Equity Method acid
Joint Ventures and Accounting for Ega+ity-Based
Pa>>rnents to Non-EnrplQvees - amendments to ASC
323-10-S99 and ASC 505-50-599 (SEC Update)
Upon issuance
280
ASU 2009-10
Financial Servzce,r - Broker:r and Dealers :
Investments - Other - vnendment to ASC )40-325
Upon issuance
Investments in Certain Entities That Calculate Net
Assel Vnltre per Share (or its equivalent) - Amends
ASC R20 to offer investors a practicll expedient for
Periods ending after December
I 5, 2009
(SEC Update)
ASU 2009-12
measurine the fair value of nivestments in certain
entities that calculate net asset value per share .
ASU 2009-13
(fornieriy
EITF Issue
Multiple Deliverable Revenue Arrangerrrents Amends ASC GOS-25
Fiscal years begiiming on or after
June 15, 2010, early adoption
permitted
ASU 2009-14
(formerly
Certnin Revenue Arrnngem.ents That Include
Software Elements - Amends ASC985-605 and 985-
Fiscal years beginning on or after
June 15, 2010, early adoption
08-1)
EITF Issue
09-3)
605-13 to exclude from their scope tangible products
that contain software and non-software components
that function together to deliver the products essential
permitted
huictiouality .
ASU 2009-15
Accoemting,for (hin-Share Lending Arrangements in
Corrtemplalion of Convertible Debj Isscrance or Other
Financing
Periods beginning on or after
December 15, 2009
ASU 2009-16
Transfers and Servzcing: Aceoemting or Transfers of
Financial Assets -Amends ASC 860 - eliminates
exceptzons fier qualifying special ptrrpo,se entrdies and
for certain mortgage securitizatiorzs .
Periods be2iiuning after
November 15, 2009
ASU 2009-17
Improvements lo Financial Reportirag by Enterprisc:s
Involved with VariaGle Interest Enteryrises - Amends
Periods Uegiiuiing on or after
December 15, 2U())
Subsequent F_vents (Topic 885) - Amendments to
Certlin Recognition and Disclosure Requirements
Upon issuance
ASC 810 for the issuance of SFAS No . 167
ASU 2010-09
Adoption of those ASU's that beclme effective during 2009 and in 2010, prior to the issuance of
the financial statements, did not have a material effect on the Group's consolidated financial statements .
Management is assessing the potential impact ou Che Uroup's finlncial statements of adopting ASU's that
will become effective in flee fi .zhzre .
In December 2007, the FASB issued SFAS No . 141(R), Busines,s Combinations, which SFAS is
now a sub-topic withüi ASC 805, Busine.rs Carzhination.r . ASC 805-10 replaced SFAS No . 141,
mandlting changes in the accounting for business combiultions most uatably that changes in purchase
price allocations, if made, are required to he applied retrospectively, whereas under SFAS No . 141, such
changes were applied prospectively . ASC 805-10 was effective for an entity's ilscal year begiivinig after
December 15, 2008, and early adoption was noC permitted . The Gtoup caimot anticipate whedler ASC 80510 will have 1 material effect nn its consolidated Yinancial statements as such effect would he solely
dependent on whether or when the Group enters into busüiess combinations in the fiiture and the terms of
such transactions .
In March 2008, the FAS$ issued SFAS Nn . 161, Disclosures about Derivntive Instrcrmenis and
Hedging Activities - an amendment of FA.SB S'xatemenj No . 133, which SFAS is now a sub-topic within
ASC R l5, Derivatives and Hedgzng. ASC 815-10 requü-es enhanced disclosures about an entity's
derivative and hedging activities, 1nd is effective for tinancial statements issued for fiscal years begiiming
after November 2008 . Adoption of ASC 815-10 did not have a material effect nn consolidated tinancial
statements .
281
In November 2008, the SEC issued its "Roadmap for the Potential Use of Financial Statements
Prepared in Accordance with International Financial Reporting Standards by U .S . Issuers" ("IFRS
Roadmap") . The IFRS Roadmap would require SEC registrants to prepare their financial statements in
accordance with International Financial Reporting Standards ("IFRS") 1s issued by the International
Accounting Standards Board in 2014 . IFRS is increasingly being applied by financial statement preparers
in countries outside the U.S . One of the stated purposes of the IFRS Roadmap is that adopting MRS will
provide a global set of high-quality accounting standards so that U .S . investors would have an enh~uiced
ability to compare financial information of U .S . companies with that of non-U .S . Companies . In issuing
the IFRS Roadmap, the SEC stated that, in 2011, it will determine whether to proceed with rulemaking to
require the use of IFRS by U .S . registrants beginning in 2014 . The comment period on the IFRS Roadmap
ended in April 2009 . Further definitive guidance from the SEC regarding the IFRS Roadmap is pending .
Management is assessing the potential impact of adoptive IFRS on the Group's consolidated financial
statements .
ASC 855, Subsequent Events (formerly SFAS No . 165), was issued in May 2009, effective for
interim and annual periods ending after June 15, 200) and extends disclosure requirements of subsequent
events to include the date through which subsequent events have been evaluated for adjustment to or
disclosure in financial statements and the basis for that date . The date to be used will represent either the
date the financial statements were "issued" or the date such financial statements were "available to he
issued" . ASC 855 defines "issued ." as the date when financial statements are widely distributed to
shareholders and other financial statement users fur general use and reliance in a form and format that
complies with the Codification and defines "available to be issued" as financial statements that are
complete in a form and format that complies with the Codification and all approvals necessary for issuance
have been obtained . Adoption of ASC 855 for the period ended December 31, 2009 did not have a material
effect on the Group's consolidated financial statements .
ASC 860, Transfers crud Servicing, incorporates former SFAS No . i(6, Accounting ,for Transfers
of Financial Assets, an amendment of FA~S'B No . 140, which was issued in June 2009 and will he effective
for interim and annual periods beginning after January I, 2010. These pending provisions of ASC 860 will
require snore information about transfers of financial assets, including securitizltion transactions, and
where entities have continuing exposure to the risks related to transferred financial assets . The concept of a
"qualifying special-purpose entity" ("SPE") is eliminated under these pending provisions of ASC 860,
which also changes the requirements for derecognizing financial assets and requires additional disclosures .
Management is assessing the potential impact of adopting these pending provisions of ASC 860 on the
Group's consolidated financial statements .
ASC 810, Consolidations, incorporates former SFAS No . 167, Amendments to FASB
Interpretation No . 46(R) . These pending provisions of ASC R 10 revise former FASB Interpretation Nn . 46
(Revised December 2003), Consolidation of Variable Interest Entities, and changes how a reporting entity
determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar
rights) and therefore should be consolidated . Consolidation of Variable Interest Entities ("VIE's") would
be based nn the target entity's purpose and design as well as the reporting entity's ability to direct the
target's activities, among other criteria . SFAS Nn . I(i7 was issued in June 2009 and will he effective for
interim and annual periods beginning after January i, 2010 . Management is assessing the potential impact
of adopting these pending provisions of ASC 810 nn the Group's consolidated financial statements .
3.
Trading Activities and Related Risks
IBG LLC~s trading activities include providing securities market making and brokerage services .
activities
expose IBC LLC to market and credit risks . These risks are managed in accordance with
Trading
established risk management policies and procedures . To accomplish this, management has established a
risk management process that includes :
" a regular review of the risk management process by executive management as pout of its oversight role ;
" defined risk management policies and procedures supported by a rigorous analytic framework, and
282
" articulated risk tolerance levels as defined by executive management that are regularly reviewed to
ensure that IBG LLC's risk-taküig is consistent with its business strategy, capital structure, and current
and anticipated market conditions .
Market Risk
IBG LLC is exposed to various market risks . Exposures to market risks arise from equity price
risk, foreign currency exchange rate fluctuations and changes in interest rates .
IBG LLC seeks to mitigate market risk associated with trading inventories by employing hedging
strategies drat correlate rite, price and spread movements of trading inventories and related financing and
hedging activities . IBG LLC uses a combination of cash instruments and exchange traded derivatives to
hedge its market exposures . The following discussion describes the types of market risk faced :
Equity Price Risk
Equity price risk arises from the possibility that equity security prices will fluctuate, affecting the
value of equity securities and other instnunents that derive their value from 1 particular stuck, a
defined basket of stocks, or a stock index . IBG LLC is subject to equity price risk primarily in
securities owned and securities sold but not yet purchased . IBG LLC attempts to limit such risks
by continuously reevaluating prices and by diversifying its portfolio across many different options,
futures and underlying securities and avoiding concentrations of positions based on the same
underlying security .
Currency Risk
Currency risk arises from the possibility that fluctuations in foreign exchange rates wilt impact the
value of financial instniments . Exchange rite contracts may include cross-currency swaps and
currency futures contracts . Currency swaps are agreements to exchange future payments in one
currency for payments in another currency . These agreements are used to effectively convert
assets or liabilities denominated in different currencies . Currency futures are contracts for delayed
delivery of currency at a specified hiture date . IBG LLC uses currency swaps to manage the
levels of its non-U .S . dollar currency balances and currency cash and futures to hedge its global
exposure .
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect the value of
financial instruments . IBG LLC is exposed to interest rate risk on cash and margin balances,
positions carried in equity securities, options and futures and on its debt obligations . These risks
are managed through investment policies and by entering into interest rate futures contracts .
Credit Risk
IBG LLC is exposed to risk of loss if an individual, counterparty or issuer fails to perform its
obligations under contractual terms ("default risk") . Both cash instruments and derivatives expose IBG
LLC to default risk . Credit risk is limited in that substantially all of the contracts entered into are settled
directly at securities uid commodities clearing houses and a small portion is settled through member fines and
banks with substantial financial arid operational resources . IBG LLC has established policies and procedures
for mitigating credit risk nn principal transactions, including reviewing and establishing limits for credit
exposure, maintaining collateral, and continually assessing the creditworthiness of countetparties .
In the normal course of business, IBG LLC executes, settles and finances various customer
securities transactions . Execution of these transactions includes die purchase and sale of securities by IBG
LLC that exposes lBG LLC to default risk arising from the potential that customers or counterparties may
tail to satisfy their obligations . In these situations, IBG LLC may re required to purchase or sell financial
instruments at unfavorable market prices to satisfy obligations to customers or counterparties . IBG LLC
seeks to control the risks associated with its customer margin activities by requiring customers to maintain
collateral in compliance with regulatory and internal guidelines.
283
Liabilities to other brokers and dealers related to unsettled transactions (i .e ., securities failed-toreceive) are recorded at the amount for which the securities were purchased, and are paid upon receipt of
the securities from other brokers or dealers . In the case of aged securities failed-to-receive, IBG LLC may
purchase the underlying security in the market and seek reimbursement for any losses from the
coimteiplrty .
For cash management purposes, IBG LLC enters into short-term securities purchased under
agreements to resell and securities sold under agreements to repurchase transactions ("repos") in addition to
securities borrowing and lending arrangements, all of which may result in credit exposure in the event the
counterparty to a transaction is unable to fulfill its contractual obligations . In accordance with industry
practice, repos are collateralized by securities with a market value in excess of the obligation under the
contract . Similarly, securities borrowed and loaned agreements are collateralized by deposits of cash or
securities . IBG LLC attempts to minimize credit risk associated with these activities by monitoring
collateral values on a daily basis and requiring additional collateral to be deposited with or returned to IBG
LLC as permitted under contractual provisions .
Concentrations of Credit Risk
IBG LLC's exposure to credit risk associated with its trading and other activities is measured nn
an individual counterparty basis, as well as by groups of counterparties that share similar attributes .
Concentrations of credit risk can he affected by changes in political, industry, or economic factors . To
reduce the potential for risk concentration, credit limits are established and exposure is monitored in light
of changing counteiparty and market conditions . As of December 31, 2009, the Group did not have any
concentrations of credit risk .
Off-Balance Sheet Risks
IBG LLC may be exposed to a risk of loss not reflected in the consolidated financial statements
for futures products, which represent obligations of IBG LLC to settle at contracted prices, which may
require repurchase or sale in the market at prevailing prices . Accordingly, these transactions result in offbalance sheet risk as IBG LLC's cost to liquidate such futures contracts may exceed the amounts reported
in IBG LLC's consolidated statements of financial condition.
4.
Initial Public Offering and RecapitaGzation
ISG, Inc. Initial Public Offering
On May 9, 2007, IB( :1, Inc . issued, at $30 .01 per share, 40,000,000 shares (1,000,000,000 shares
authorized) of its Class A Common Stock (the "CoiYUnon Stock") in an initial public offering (die "IPO")
pursuant to the Registration Statement on Form S-1 (File No . 333-138955) (the "Registration Statement") .
The aggregate gross proceeds from the IPO amounted to $1,200 .4 million . Net proceeds of $1,1779
million, after placement agency tees, were paid to IBG Holdings LLC in exchange for a 10 .0% interest in
IBG LLC . Oilier offering expenses of $5 .5 million were paid by IBG LLC .
Recapitalization and Post-IPO Capital Structure
-
Irrunediately prior to and immediately following the consummation of the IPO, IBG, Inc ., IBU
Holdings LLC, IBG LLC and the members of IBG LLC consummated a series of transactions collectively
referred to herein as the "Recapita6zation ." In connection with the Recapitalization, IBG, Inc ., IBG
Holdings LLC and the historical members of IBG LLC entered into an exchange agreement, dated as of
May 3, 2007 (the "Exchange Agreement"), pursuant to which the historical members of IBG LLC received
membership interests in IBG Holdings LLC in exchange for their membership interests in IBG LLC .
In cotmection with the IPO, IBG, Inc . purchased 10 .0% of the membership interests in IBG LLC
from IBG Holdings LLC, became the sole managing member of IBG LLC and began to consolidate IBG
LLC's financial results into its financial statements . IBG Holdings LLC used the net proceeds to redeem
10 .0% of members' interests in IBG Holdings LLC in proportion to them interests . Irmnediately following
284
the Recapitalization and IPO, IBG Holdings LLC owned approximately 90% of IBG LLC and 100% of
IBG, Inc .'s Class B Coitunon Stock, which has voting power in IBG, Inc . proportionate to the extent of
IBG Holdings LLC's ownership of IBG LLC, approximately 89 .5% at December 31, 2009 .
The Exchange Agreement also provides for future redemptions of member interests and for the
purchase of member interests in IBG LLC by IBG, Inc . from IBG Holdings LLC, which is expected to
result in IBG, Inc . acquiring the remaining member interests in IBG LLC that it does not own . On an
annual basis, holders of IBG Holdings LLC member interests will he able to request redemption of such
member interests over an eight (8) year period following the IPO ; 12 .5% Truiually for seven (7) years and
2 .5% in the eighth year . The primary manner in which redeinptions ire expected to he funded is from the
proceeds from sales of additional shares of Common Stock, although there have been no such additional
sales of Common Stock through December 31, 2009 . Three hundred sixty (360) million shares of
authorized Common Stock have been reserved for such future sales.
As 1u alternative to the sale of Common Stock by IBG, Inc., the Exchange Agreement provides that IBCJ
LLC, using its available liquidity, may facilitate the redemption by IBG Holdings LLC of interests held by
its members. In lieu of public offerings, and with the consent of IBG Holdings LLC and IBG, Inc. (on its
own behalf and acting as the sole managing member of IBG LLC), in May 200& and 2009, IBG LLC
agreed to redeem membership interests from IBC Holdings LLC as follows :
Fair Value
72,015
14,738
2008
2009
Price per Equivalent
Class A Share
$
29 .99
14.85
As a consequence of these transactions, and distribution of shires to employees (Note 12), IBG, Inc .'s
interest in IBG LLC has increased to approximately 10 .5%, with IBG Holdings LLC owning the remaining
89 .5% as of December 31, 2009 . The redemptions also resulted in an increase in the IBG Holdings LLC
interest held by Thomas Peterfty and his affiliates from approximately 84 .6% at the IPO to approximately
35 .4% .
Stock Repurchase Program
On September 26, 2008, IBG, Inc. announced dial its Board of Directors had approved the
repurchase by IBG LLC of up to eight (8) million shares of its Class A common stock. Shares may be
purchased from time to time in the open market and in private transactions if IBC, Inc. deems the price
appropriate . In November 2008, 65,800 shares were repurchased at a cost of $866, and are being held by
IBG LLC as Treasury Stock.
285
.5 .
Financial Instruments Owned and Sold, But Not Yet Purchased, at Fair Value
Financial instruments owned, including those pledged as collateral, and financial instruments sold,
but not yet purchased consisted of the following, at fair value, as follows at December 31, 2009 and 2008 :
December 31, 2009
Sold, But Not
Owned
Yet Purchased
Stocks
Options
U .S . and foreign government obligations
Warrants
Corporate bonds
$ 4,052,636
4,717,693
358,489
88,093
80,550
46,521
~ _9 ,,34-3,982
?
December 31, 2008
Sold, But Not
Owned
Yet Purchased
ti 2,841,974
7,893,668
286,563
78,382
4,671
8,171
1,2;2
11,114,661
4,349,918
4,336,625
76,032
626
8,7(3,201
S
$
5,365,094
8,110,754
52
257
13,476,757
S
The following tables set forth, by level within the fair value hierarchy (Note 2), financial
instruments owned and financial instruments sold, but not yet purchased, which consisted of the following,
at fair value as of December 31, 2009 and 2008 . A5 required by ASC 820, assets and liabilities are
classified in their entirety based on the lowest level of input that is significant to the fair value
measurement .
Securities owned :
Stocks
Options
Level l
S
U.S . acid foreign government obligations
Wwrants
Corporate bonds
4,052,636
4,717,693
358,489
88,093
54,157
S
1,317,589
S'
46.521
Level 3
Level 2
-
Total
5
-
$
4,052,636
4,717,693
358A89
88,093
80,550
S
-
ti
9,34 3,982
26393
26 _3 93
46,521
Securities sold, not yet purchased :
Stocks
Options
Corporate bonds
Currency formard oontiacts
Level 2
Level
$
$
4,349,918
4,336,625
41,010
8,727,553
286
S
-
35,022
626
-735,648
Level 3
S
S
-
Total
S
- S
4,349,918
4,336,625
76,032
626
8,763,201
Securities owned :
Stocks
Options
LJS, acid foreign government obligations
Warrants
Corporate bonds
Level
$
2,841,974
7 .893,G68
$
-
Total
Level 3
$
-
$
8,171
-
$
11,113,429
2,841,974
7,893,668
286,563
78,382
4,671
286,563
78,382
4,671
Level 2
1,232
$
1,232
8,171
$
-
1,232
$ 11,114,661
Securities sold, not yet purchased :
stocks,
Options
$
5,365,(94
8,110,754
$
-
$
257
257
52
Corporate bonds
Level l
Level l
$
13 .476,500
Level 3
$
Total
5,365,694
8,110, 754
-
$
-
257
$ 13,476,757
52
$
6 . Collateral
The Group enters into securities borrowing and lending transactions and agreements to repurchase
and resell securities to finance trading inventory, to obtain securities for settlement and to earn residual
interest rate spreads . In addition, the Group's customers pledge their securities owned to collateralize
margin loans . Under these transactions, the Group either receives or provides collateral, including equity,
corporate debt and U .S . government securities . Under many agreements, the Group is permitted to sell or
repledge securities received as, collateral and use these securities to secure repurchase agreements, enter
into securities tending transactions or deliver these securities to counter-parties to cover short positions . At
December 31, 200) and 2008, the fair value of securities received as collateral where the Group is
permitted to sell or repledge the securities was approximately $9 .8 and $8 .7 billion, respectively, of which
$5 .7 and $6 .0 billion, respectively had been repledged or resold, of which some were deposited in 1
separate bank account for the exclusive benefit of customers in accordance with SEC Rule 150-3 . The
sources of collateral at December 31, 2009 and 2008 were : securities lending transactions and agreements
to resell of $5 .3 billion and $6 .7 billion ; and customer margin securities of $4 .5 billion and $2 .2 billion,
respectively .
In the normal course of business, the Group pledges qualified securities with clearing
organizations to satisfy daily margin and clearing fund requirements . At December 31, 2009, substantially
ill government obligations owned were pledged to clearing organizations.
Financial üistnnnents owned and pledged, where the countetparty has the right to repledge, at
December 31, 2009 and 2008 consisted of die following :
S tocks
U .S . and foreign government obligations
December 31,
2~ 009
2008
1,180,923
$
778,617
286,563
353,115
$ 1,0G5,1ß0
ä 1,534,038
287
Investments
The Group has certain strategic investments in electronic exchange and investment banking
platforms that it accounts for under the equity medial of accounting, recording its share of the investee's
income or loss in other income (Note 11) in the consolidated statements of income . As of December 31,
2009 and 2008, the carrying values of these investments were :
December 31,
2008
2009
OneChicago LLC :
Boston Options Exchange, LLC ("BOX")
W . R. Hambrecht + Co ., Inc . 2007 Note and Warrants
OBOE Stock Exchange, LLC
Factor Advisors, LLC
$
14,907
6,243
4,349
1,499
$
16,304
7,937
5,483
4,475
-
Transactions and related balances with equity investees were
Transactions with BOX:
Other income (market maker incentives)
Exchange fees (execution and clearing expenses)
2008
2-007
2009
$
$
747
2,358
$
$
1,212
853
$
$
459
4,182
December 31,
2009
2008
Receivable fi-oinPayableto ßOX:
Receivable (oilier assets)
Payable (accounts payable, accrued exenses mid
other liabilities)
208
$
251
393
$
917
As a result of a recapitalization transaction and the sale of assets, the Group recorded a permanent
impairment loss of $6 .4 million for the year ended December 31, 2009 on its loans to and warrants to
purchase approximately 25 .8<% of W .R . Hambreclit + Co . Inc ., reducing the hook value of these
investments to $-0- .
In February 2009, the Group invested $7 .5 million in Quadriserv Inc ., an electronic securities
leading platform provider, which investment is accounted for under the cost method .
8.
Short-Term Borrowings
Short-term borrowings consist primarily of collatera(ized borrowing facilities with clearing banks
in multiple currencies that bear interest at fluctuating overnight rates based on interbank funds rates
prevailing in the respective currencies . In addition, the Group has available secured and unsecured
overnight bank loan facilities . All short-term borrowings outstanding at December 31, 2009 and 2008 were
either repaid nn the next business day or rolled forward and, accordingly, their carrying values
approximated their fair values .
288
As of December 31, 2009 and 2008, short-teen borrowings consisted of:
2009
Overnight borrowing facilities
Secured bank loans
$
$
Principal
320,803
320,803
2008
Weighted
Average
Rates
0.11%
n/a
Principal
$
$
132,247
Weighted
Average
Rates
75,870
208,117
0.66%
1 .99%
Interest expense on short term borrowings for each of the three years ended December 31, 2009,
2008 and 2007 was $5,346, $49>522 and $40,345, respectively .
9.
Senior Notes Payable
At December 31, 20(19 and 2008, IBCr LLC had $205,777 and $143,054, respectively, of 7%
senior notes outstanding, which were privately placed to certain qualified customers of IB LLC . All of the
senior notes outstanding at December 31, 2009 had either a 15-month or an 18-month maturity. IBG LLC
may, solely at its option, redeem the senior notes 1t any time on or after a specified date in the third month
or the sixth month, respectively, after the date nn which the senior notes are issued and sold (the "Optional
Redemption Date"), at a redemption price equal to 100% of the principal amount of the senior notes to be
redeemed plus accrued interest . Historically, IBG LLC leas redeemed these senior notes at their Optional
Redemption Dates . The carrying value of the senior notes approximated their fair value since they are
short-terns in nature . In 2009, 2008 and 2007, IBG LLC redeemed $445,393, $491,968 and $448,888 of
senior notes, which included $143,054, $160,456 quid $150,5)8 of senior notes issued in 2008, 2007 and
2006, respectively. During the period from January 1 through February 26 2010, total senior notes issued
were $101,46(,, and senior notes issued in 200) which were redeemed totaled $97,770, respectively .
Interest expense on senior notes was $11,539, $11,978 and $10,762 for the three years ended December 31,
2009, 2008 and 2007, respectively .
10 . Senior Secured Credit Facility
On May 19, 2009, IF3G LLC entered into a $100 million one-year senior secured revolving credit
facility with Bank of America, N .A . as administrative agent and Citibank, N.A ., as syndication agent . IBG
LLC is the sole borrower under this credit facility, which is required to be guaranteed by IBG LLC's
domestic non-regulated subsidiaries (currently there are no such entities) . The facility's interest rate is
indexed to the overnight federal funds rate or to the LIBOR rate for the relevant term, at the borrower's
option, and is secured by a first priority interest in all of the capital stock of each entity owned directly by
IBG LLC (subject to customary limitations with respect to foreign subsidiaries) . The facility may he used
to finance working capital needs and general corporate purposes, including downstreaming funds to IBG
LLC's regulated broker-dealer subsidiaries as regulatory capital . This allows IBC3 LLC to take advantage
of market opportunities when they arise, while maintaining substantial excess regulatory capital . The
financial covenants contained in this credit facility are as follows :
"
minimum consolidated shareholders' equity, as defined, of $3 .3 billion, with quarterly increases
equal to 25% of positive consolidated income ;
"
maximum total debt to capitalization ratio of 30% ;
"
minimum liquidity ratio of 1 .0 to 1 .0 ; and
"
maximum totaldebt to net regulatory capital ratio of 35% .
As of December 31, 2009, no borrowings were outstanding under this credit facility and IBG LLC was in
compliance with all of the covenants . This credit facility replaced a $300 million senior secured revolving
credit facility that matured on May 19, 200) .
289
11 .
Other Income
The components of other income for the three years ended December 31, 2009, 2008 and 2007 were :
Payments for order flow
Market data tees
$
2009
Market maker incentives
Gains on restricted securities
Loss from equity investments
35,073
23,594
$
48,735
17,590
2007
S
61,695
12,5(1
7,237
(2,715)
(8,939)
15,643
8,88(
('14,840)
7,372
5,001
(1,904)
61,260
81,669
92,247
7,010
Other, net
2008
5,655
7,522
Payments for order flow are earned from various options exchanges based upon options trading
volume originated by the Operating Companies . Market data fees ire charged to customers based upon
market data services provided . Various exchanges pay the Group market maker incentives for its market
making efforts on those exchanges . Gains on restricted securities are primarily generated when the Group
has investments in securities on which there are restrictions from trading . Such securities sue valued 1t cost
until such time as the trading restrictions lapse and such securities become freely tradable, at which time
the securities are marked to market.
12 .
Defined Contribution and Employee Incentive Plans
Defined Contribution Plan
The Group offers substantially all employees of U .S .-based Operating Companies who have met
minimum service requirements the opportunity to participate in defined contribution retirement plans
qualifying tinder the provisions of Section 401(k) of the Internal Revenue Code . The general purpose of
this plan is to provide employees with an incentive to make regular savings in order to provide additional
financial security during retirement . This plan provides for the Group to match 50% of the employees' pretax contribution, up to a maximum of 10% of eligible earnings . The employee is vested in the matching
contribution incrementally over six years . Included in employee compensation and benefits expenses in the
consolidated statements of income were $2,055, $1,803 and $1,519 of plan contributions for the three years
ended December 31, 2009, 2008 and 2007, respectively .
Return on Investment Dollar Units ("ROI Dollar Units")
From 1998 through January 1, 2006, IBG LLC granted all non-member employees ROI Dollar
Units, which are redeemable under the amended provisions of the plan, and in accordance with regulations
issued by the Internal Revenue Service (Section 409A of the Internal Revenue Code) . Upon redemption,
flee grantee is entitled to accumulated earnings on the face value of the certificate, but not the actual face
value . For grants made in 1998 and 1999, grantees may redeem the R()I Dollar Units after vesting on the
fifth anniversary of the date of their grant and prior to the tenth anniversary of the date of their grant . For
grants made between January 1, 2000 and January 1, 2005, grantees must elect to redeem the ROI Dollar
Units upon the fifth, seventh or tenth anniversary date . These R()I Dollar Units will vest upon the fifth
anniversary of the date of their grant and will continue to accumulate earnings until the elected redemption
date . For grants made on or after January 1, 2006, all ROI Dollar Units shall vest on the fifth anniversary
date of their grant and will be. automatically redeemed. Subsequent to the IPO, no additional ROI Dollar
Units have been or will be granted, and non-cash compensation to employees will consist primarily of
grants of shares of CorTUnon Stock as described below under "2007 Stock Incentive Plan ."
As of December 31, 2009 and December 31, 2008, payaUles to employees for ROI Dollar Units
were $22,276 and $24,158, respectively . Of these payable amounts, $(,C33 and X3,7(9 were vested as of
December 31, 2009 and December 31, 2008, respectively . These amounts are included in accounts
payable, accrued expenses and other liabilities in the consolidated statements of financial condition .
290
Compensation expense for the ROI Dollar Unit plan, included in the consolidated statements of income
was $3,934, 7,712 and $8,368 for the years ended December 31, 2009, 2008 and 2007, respectively .
2007 ROI Unit Stock Plan
In connection with the IPO, IBG, Inc . adapted the Interactive Brokers Group, Inc . 2007 ROI Unit
Stock Plan (the "ROI Unit Stock Plan") . Under this plan, certain employees of the Group who held ROI
Dollar Units, at the employee's option, elected to invest their ROI Dollar LJiüt accumulated earnings as of
December 3 I, 2006 in shares of Common Stock . An aggregate of 1,271,009 shares of Common Stock
(consisting of 1,250,000 shares issued under the ROI Unit Stock Plan and 21,009 shares under the 2007
Stock Incentive Plan, as described below), with a fair value at the date of grant of $38,143, were issued to
IBG LLC, to be held as Treasury stock and to be distributed to employees in accordance with the following
schedule, subject to the conditions below :
"
10% on the date of the IPO (or on die first anniversary of the IPO, in the case of U .S . ROI Unit
holders who made the above-referenced elections after December 31, 2006) ; and
"
employment with IBG, Inc. and compliance with other applicable covenants.
Of the fair value at die date of grant, $17,800 represented the accumulated ROI Dollar Unit value
elected to be invested by employees in Common Stock and such amount was accrued for as of December
31, 2006 . The remainder is being ratably accrued as compensation expense by the Group from the date of
the IP() over the requisite service period represented by the aforementioned distribution schedule .
Compensation expense for the 2007 ROI Unit Stock Plan and related grants under the 2007 Stock Incentive
Plan, net of the effect of forfeitures, included in the consolidated statements of income for the years ended
December 31, 2009 and 2008, and the period from May 4 through December 31, 2007 was $3,752, $4,888
and 1,484 respectively . Estimated future compensation costs for unvested awards at December 31, 2009
were $12 .2 million .
2007 ,Stock Incentive Plan
Under the Interactive Brokers Group, Inc . 2007 Stock Incentive Plan (the "Stock Incentive Plan"),
up to 9 .2 million shares of Common Stock may be granted and issued to directors, officers, employees,
contractors and consultants of IBCJ, Inc . and its subsidiaries . The purpose of the Stock Incentive Plan is to
promote IBG, Lic .'s long-term financial success by attracting, retaining and rewarding eligible participants .
The Stuck Incentive Plan is adnüitistered by the Compensation Committee of IBCi, Iuc .'s Board of
Directors . The Compensation Conuiiittee has discretionary authority to determine which employees are
eligible to participate in the Stock Incentive Plan and establishes the ternis and conditions of the awards,
including the number of awards granted to each employee and all other terms and conditions applicable to
such awards in individual grant agreements . Awards are expected to be made primarily through grants of
Common Stock . Stock Incentive Plan awards are subject to issuance over time and may he forfeited upon
an employee's termination of employment or violation of certain applicable covenants prior to issuance,
unless determined otherwise by the Compensation Committee .
The Stock Incentive Plan provides that, upon a change in control, the Compensation Committee
may, at its discretion, fully vest any granted but,unissued shares of Conunon Stock awarded under the
Stock Incentive Plan, or provide that any such granted but unissued shares of Common Stock will he
honored or assumed, or new rights substituted therefore by the new employer on a substantially similar
basis and on terms and conditions substantially comparable to those of the Stock Incentive Plan .
291
IBG, Inc . granted awards of Common Stock in connection with the IPO and is expected to
continue to grant awards on or about December 31 of cacti year following the IPO, to eligible employees as
part of an overall plan of equity compensation. Shares of Common Stock granted are issued to IBG LLC,
to he held as Treasury Stock, and are distributable to employees in accordance with the following schedule :
10% on the date of the IPO ; and
"
employment with IBG, Inc . and compliance with non-competition and other applicable covenants .
Of the fair value at the date of grant, of shares granted in connection with the IPO, $14,674
represented compensation accrued as of December 31, 2000 to former members of IBCr LLC, with the
remainder to be ratably accrued as compensation expense by the Group from die date of the IPO over the
requisite service period represented by the aforementioned distribution schedule.
Shares granted to directors vest, and are distributed, over a five-year period (20% per year)
conunencing one year after the date of grant . Stock Incentive Plan share grants (excluding 21,009 shares
issued pursuant to the 2007 ROI Unit Stock Plan above) and the related fair values at the date of grant
were :
Sha res
927,943
1C,,(>65
1,055,206
2,065,432
2,448,031
6,513,277
In connection with IPO
July 31, 2007
December 31, 2007
December 31, 2008
December 31, 2009
Fair Value at
Date of Grant
$
27,847
404
32,876
35,600
42,796
139,523
On the date of the IPO, 187,953 shares of Coirunon Stock, valued 1t $5,(40, were distributed to
employees . During the third quarter of 2007, 45,857 shares valued at $1,376 were purchased from
employees in connection with those employees' elections to sell a portion of their shares in order to meet
their personal income tax obligations incurred as a result of share distributions . Shares purchased were
recorded by IBG LLC as Treasury Stock .
On May 9, 2008, 453,655 shares of Coiiunon Stock, with a total grant date fair value of $139
million were distributed to employees pursuant to the 2007 ROI Unit. Stock Plan and the Stock Incentive
Plan . As provided for under the terms of the plans, certain employees elected to sell, and the Company
facilitated the sale of, 121,852 of the distributed shares to meet the employees' personal income tax
withholding obligations arising from this share distribution .
On May 11, 2009, 630,164 shares of Cocmnon Stock, with a total grant date Täir value of $17 .9
million were distributed to employees and directors pursuant to the 2007 ROI Unit Stock Plan and the
Stock Incentive Plan . As provided fur under the terms of the plans, certain employees elected to sell, end
the Company facilitated the sale of, 175,362 of the distributed shares to meet the employees' personal
income tax withholding obligations arising from this share distribution .
292
The following is a summary of Stock Plan activity for the period from May 3, 2007 through
December 31, 2009 :
Shares
2007 Stock
2007 ROI Unit
Stock Plan
Incentive Plan
Sh ares
Shares
Balance, May 3, 2007
Granted
Granted
2,020,823
(9,816)
(94,263)
1,916,744
1,2 50,000
(2,714)
(95,354)
1,151,932
2,065,432
(27,962)
(5,605)
Balance, December 3 r, 2008
(239,141)
3,715,073
(219,514)
926,813
GGranted
Balances, December 3 l, 2009
2,448,031
(29,740)
(492,310)
5,641,054
(5,397)
(187,854)
733,562
Estimated hiture grants under the Stock Incentive Plan are being accrued for ratably during each
year under the ASC 718 "Graded Vesting" method . Compensation expense recognized in the consolidated
statements of income for the years ended December 31, 2009 and 2008, were $29,440 and 21,034,
respectively . Compensation expense recognized in the consolidated statements of income for the year
ended December 31, 2007, including amounts accrued under pre-IPO incentive plan formulas, was
$11,143 . Of this amount, $1,675 was recorded subsequent to the IPO through December 31, 2007 .
Estimated future compensation costs fur unvested awards at December 31, 2009 were $59 .7 million .
Shares granted under the 2007 ROI Unit Stock Plan and the Stock Incentive Plan are subject to
forfeiture in the event an employee ceases employment with the Company . The plans provide that
employees who discontinue employment with the Company without cause and continue to meet the teens
of the plans' post-employment provisions will forfeit Sn°/u of unvested previously granted shares unless the
employee is over the age of 59, in which case the employee would be eligible to receive 100% of unvested
shares previously granted . Distributions of remaining shares to former employees wilt occur annually
following the discontinuation of employment over a five (5) year vesting schedule, 12 .5% in each of the
first four years and 50% in the fifth year . As of December 31, 2009, no shares have been distributed under
these post-employment provisions .
Members' Interests
Prior to January 2, 2006, selected employees had been granted non-transferable member interests
in IBG LLC, which conferred ownership rights in IBG LLC and entitled the holders to their proportionate
share of the consolidated profits and losses of IBG LLC based on their holding percentages beginning on
the plate of the grant .
,
As more fully described in Note 4, in connection with the Recapitalization and the Exchange
Agreement, the historical member of IBG LLC received membership interests in IBG Holdings LLC in
exchange for their membership interests in IBG LLC and, in connection with the consummation of the IPO,
IBG Holdings LLC used the net proceeds to redeem 10% of members' interests in IBC Holdings LLC in
proportion to their interests . The Exchange Agreement also provides for future redemptions of member
293
interests and for the purchase of member interests in IBC LLC by IBG, Inc . from IBG Holdings LLC,
which is expected to result in IBG, Inc . acquiring the remaining member interests in IBG LLC that it does
not own .
The historical "Agreement as to Member Interest Purchase Rights" (the "Agreement") gave IBCr
LLC the right to repurchase any member's interests at its discretion at any time which, in particular, was
triggered by the termination of employment of a member-employee, and also permitted members to sell
their interests back to IBG LLC at any time, in every case for au amount equal to management's estimate of
fair value, which is book value as defined in the Agreement . Because IBG LLC places a high value on the
retention of its key employees, payment for a portion of redeemed interests was contingent nn 1 postredemption consulting services requirement that, among other conditions, required that a memberemployee not compete with IBG LLC in any area of its businesses for five years following the date of
redemption . In order to enforce these terms, payment for one-half of the redeemed interests was, under
normal conditions, made within five months after the redemption date . Payment for the remaining one-half
of the redeemed interests was made five years hence, subject to satisfaction of the consulting services and
non-compete provisions of the Agreement . IBG LLC had recognized compensation expense equal to the
granted interest by the time ofgrant . If and when the terms of the five-year consulting and non-compete
period were satisfied, IBG LLC recorded a distribution of redeemable members' interests at such time as
the remaining payment was made to the member-employee . Should any portion of a member-employee's
interests be forfeited, such forfeited member interests would be redistributed among the remaining
members in proportion to their holding percentages . During 2009 and 2008, payments were made by IBG
LLC fur former member interests previously redeemed in the amounts of $1)2 and $5,044, including
accrued interest of $28 and $508, respectively .
13 .
Income Taxes
Income tax expense for the three years ended December 31, 2009, 2008 and 2007 differs from the
U.S . federal statutory rate due to the differing effective tax rates in foreign, state and local jurisdictions
where certain operating companies are subject to corporate taxation and due to IBG LLC's status as a
limited liability company, which qualifies it as a partnership for Federal income tax purposes . Therefore,
no Federal income taxes are recognized by the Group, as described in Note 2. Accordingly, income tax
expense reflects effective tax rates in foreign state and local jurisdictions where certain Operating
Companies are subject to corporate taxation .
Deferred income taxes arise primarily due to mark to market and lower of cost or market valuation
of THE's financial assets and liabilities and temporary differences arising from the deductibility of
compensation and depreciation expenses in different time periods for book end tax return purposes . For the
three years ended December 31, 2009, 2008 and 2007, the provision for income taxes consisted of :
2009
Current
State and local
Foreign
Total current
Deferred:
Foreign
Total deferred
S
(354)
76,533
76,179
(38,610)
(38,6'10)
37,569
-
294
2008
$
$
230
67,618
67,848
34,763
34,763
102,611
2- 007
~
$
251
50,001
50,252
(4,293)
(4,293)
45,959
A reconciliation of flee statutory U .S . Federal income tax rate of 35% to the Group's effective tax
rate is set forth below :
2009
2009
2008
35 .0%
35 .0%
U .S . Statutory Tax Rate
35.0%
G .9/U
8.2%
4 .9%
State, local and foreign taxes, net of federal benefit
.0%
-35
.0%
-35
.0%
Rate benefit as a limited liability coirpanyprior to iP0
-35
Significant components of the Group's deferred tax assets (liabilities), which are respectively
reported in other assets and in accounts payable, accrued expenses and other liabilities in the consolidated
statements of financial condition, as of December 31, 2009 and 2008 were as follows :
2008
2009
Deferred tax asset :
Deferred compensation
Other
Total deferred tax assets
Deferred tax liabilities:
Foreign, primarily THE
Other
Total deterred tax liabilities
Net deferred tax assets (liabilities)
$
$
1,242
'59
1,301
~
(24,500)
(112)
(24,6121
(23 311)
$
$
$
547
548
1,(K)5
(65,835)
(137)
(65,972)
(64,877)
The retained earnings of certain foreign subsidiaries of IBG LLC, which are considered
permanently reinvested, may he subject to additional U .S . income taxes if such earnings were to be
distributed. The Group has not provided deferred U .S income taxes since the tax bases of such subsidiaries
exceed their book bases .
As of and for the years ended December 31, 2009 and 2008, the Group hid no unrecognized tax
liabilities as defined under ASC 740, Income Taxes (formerly FIN No . 48) . U .S . entities are subject to tax
jurisdiction audits for the years 2006 through 2009 . Foreign entities' income tax returns are generally
accepted when filed, but the previous two years (2008 and 2009) are subject to audit .
14 .
Property and equipment which are included in other assets in the consolidated statements of
financial condition and are comprised of leasehold improvements, computer hardware, software developed
for the Group's internal use and office furniture and equipment, at December 31 consisted of :
$
Leasehold improvements
Computer equipment
Internally developed software
office furniture and equipment
Less - accumulated depreciation and amortization
Property and equipment, net
$
295
2009
23,428
10,136
31,079
5,847
70,490
(28,8021
41,688
$
$
2088
18,244
12,038
62,234
4,718
97,234
(52,964)
44,270
Depreciation and amortization of $21,074, $17,897 and $12,068 for the three years ended
December 31, 2009, 2008 and 2007, respectively, is included in occupancy, depreciation and amortization
expenses in the consolidated statements of income .
15 .
Commitments, Contingencies and Guarantees
Litigation
IBG LLC is subject to certain pending and threatened legal actions which arise out of the normal
course of business . Litigation is inherently unpredictable, particularly in proceedings where claimants seek
substantial or indeterminate damages, or which are in their early stages . IBG LLC cannot predict with
certainty the actual loss or range of loss related to such legal proceedings, the mariner in which they will be
resolved, the timing of final resolution or the ultimate settlement . Consequently, IBG LLC cannot estimate
losses or ranges of losses related to such legal matters, even in instances where it is reasonably possible that
a future loss will be incurred .
On February 3, 2010, Trading Technologies International, Inc . ("Trading Technologies") tiled a
complaint, in the United States District Curt for the Northern District of Illinois Eastern Division, against
Interactive Brokers Group, Inc ., IBG LLC, IBG Holdings LLC, and Interactive Brokers LLC
("Defendants") for direct and indirect infringement or five U .S . patents owned by Trading Technologies .
The plaintiffs are seeking, among other things, damages and injunctive relief. It is not possible at this time
to accurately estimate the possible loss, if any . We believe we have meritorious defenses to the allegations
trade in the complaint and intend to defend ourselves vigorously against them .
IBG LLC accounts for potential losses related to litigation in accordance with ASC 450,
Contingencies (formerly SFAS No . 5) . As of December 31, 2009 and, 2008, reserves provided for
potential losses related to litigation matters were not material .
Lenses
Operating Companies have non-cancelable operating leases covering office space . All but one of
the office space leases are subject to escalation clauses based on specified costs incurred by the respective
landlords and contain renewal elections . Rent expense calculated on a straight-line basis for the Group was
$12,1(4, $11,207 and $7,326 for the three years ended December 31, 2009, 2008 and 2007, respectively,
and is reported in occupancy, depreciation and amortization expenses in the consolidated statements of
income . As of December 31, 2009, the Group's minimum annual lease conunihnents were as follows :
Year
2010
2011
2012
2013
2014
Thereafter
~
S
10,566
9,443
9,133
8,800,
3,996
10,555
52,491)
Guarantees
Certain of the Operating Companies provide guarantees to securities clearing houses and
exchanges which meet the accounting definition of a guarantee under ASC 460, Guarantees (formerly FIN
No . 45) ., Under the standard membership agreement, members are required to guarantee collectively the
performance of other members . Under the agreements, if another member becomes unable to satisfy its
obligations to the clearinghouse, other members would be required to meet shortfalls . In the opinion of
management, the Operating Companies' liability under these arrangements is not quantifiable and could
exceed the cash and securities they have posted as collateral . However, the potential for these Operating
Companies to be required to make payments under these arrangements is remote . Accordingly, no
contingent liability is carried on the consolidated statements of financial condition for these arrangements .
296
In connection with its retail brokerage business, IB LLC performs securities and commodities
execution, clearance and settlement on behalf of its customers for whom it commits to settle trades
submitted by such customers with the respective clearing houses . If a customer tails to fulfill its obligation,
IB LLC must fulfill the customer's obligation with the trade counterparty . No contingent liability is carried
on the consolidated statements of financial condition for such customer obligations .
IB LLC is fully secured by assets in customers' accounts and any proceeds received from
securities cud commodities transactions entered into by IB LLC on behalf of customers . No contingent
liability is carried on the consolidated statements of financial condnioii for these hilly collateratized
transactions .
Other Commitments
Certain clearing houses and clearing banks and firms used by certain Operating Companies are
given a security interest in certain assets of those Operating Companies held by those clearing
organizations . These assets may be applied to satisfy the obligations of those Operating Companies to the
respective clearing organizations .
16 . Segment and Geographic Information
IBG LLC operates in two business segments, market making and electronic brokerage . IBG LLC
conducts its market making business primarily through its Timber Hill subsidiaries on the world's leading
exchanges and market centers, primarily in exchange-traded equities, equity options, equity-index options
and futures . IBG LLC conducts its electronic brokerage business through its Interactive Brokers
subsidiaries, which provide electronic execution quid clearing services to customers worldwide .
There are significant transactions and balances between the Operating Companies, primarily as a
result of certain Operating Companies holding exchange or clearing organization memberships, which are
utilized to provide execution and clearing services to affiliates . Infra-segment and infra-region income and
expenses and related balances hive been eliminated in this segment and geographic information in order to
accurately reflect the external business conducted in each segment or geographical region . Rates on
transactions between segments are designed to approximate hill costs. Corporate items include nonallocated corporate income and expenses that are not attributed to segments for performance measurement,
corporate assets and eliminations .
Management believes that the following information by business segment provides a reasonable
representation of each segment's contribution to total net revenues, income before income taxes and
minority interest for the three years ended December 31, 2009, 2008 and 2007 and to total assets as of
December 31, 2009 and December 31, 2008 :
2009
Net revenues :
Market making
Corporate and elinnnltions
$
Total net revenues
$
Income before income taxes :
Market making
,
Corporate and eliirunations
Total income before income taxes
297
2008
626,395
474,415
(629)
1,100,181
2007
$
1,343,520
505,760
949
$ 1,031,168
425,142
11,954
$
1,850,229
$ 1468 104
$
330,795
231,186
(17,476)
$
1,027,633
223,983
(1,602)
$
719,771
197,871
14,195
S
544,505
$
1,250,014
$931,837
Segment assets :
Market making
Total assets
December 31,
2009
December 31,
2008
$
17,708,334
12,289,387
(3,732,178)
$
21,227,371
8,152,375
(1,378,4691
$
26,265,543
$
28,001,277
IBG LLC operates its automated global business in U .S . and international markets on more than
80 exchanges and market centers . A significant portion of IBG LLC's net revenues are generated by
consolidated subsidiaries operating outside the United States . International operations are comprised of
market making and electronic brokerage activities in 27 countries in Europe, Asia and North America
(outside the United States) . The following table presents total net revenues and income before income
taxes and minority interest by geographic area for the three years ended December 31, 2009, 2008 and
2007 :
2009
Net revenues :
United Sites
Intemakirnial
Corporate and elirninatiorLs
751,808
349,805
(1,432)
Total net revenues
$
United States
International
Total gimme before income taxes
17 .
1,100,181
2008
2007
~
1,039,699
810,010
520
~
$
1,850,229
L1,468,264
$
411,302
151,603
(18,400)
~
$
544,505
$
646,888
605,286
(2,160)
1,250,014
994,847
462,643
10,774
~
642,665
276,164
13,008
$
931,837
Regulatory Requirements
At December 31, 2009, aggregate excess regulatory capital for all of the Operating Companies
was $3,200,740 .
TH LLC and IB LLC are subject to the Uniform Net Capital Rule (Rule 15c3-1) under the
Exchange Act and the (FTC's minimum financial requirements (Regulation 1 .17) . At December 31, 2009,
TH LLC had net capital of $1,108,814, which was $1,071,180 in excess of required net capital of $37,(34,
and IB LLC had net capital of $7ß7,39G, which was $702,294 in excess of required net capital of $85,102 .
THE is subject to the Swiss National Bank eligible equity requirement . At December 31, 2009,
THE had eligible equity of $1,432,622, which was $1,100,141 in excess of the minimum requirement of
$332,481 .
THSHK is subject to the Hong Kong Securities Futures Coimnission liquid capital requirement,
THA is subject to the Australian Stock Exchange liquid capital requirement, THC and IBC are subject to
the Investment Industry Regulatory Organization of Canada risk adjusted capital requirement, IBLTK is
subject to the U .K . Financial Services Authority financial resources requirement, IBI is subject to the
National Stock Exchange of India net capital requirements and IBSJ is subject to the Japanese Financial
Supervisory Agency capital requirements .
298
At December 31, 2009, all of the Operating Companies were in compliance with their respective
regulatory capital requirements .
Regulatory capital requirements could restrict the Operating Companies from expanding their
business and declaring dividends if their net capital does not meet regulatory requirements . Also, certain
Group entities are subject to other regulatory restrictions and requirements .
18 . Related Party Transactions
Receivable from affiliates represents amounts advanced to IBG, Inc . and IBG Holdings LLC . As
of December 31, 2009 and 2008, the Group had an intercompany loan from IBG, Inc . of $9,492 and
$14,019, respectively, at interest rates of 0 .93% and 0 .42%, respectively . Interest expense for the years
ended December 31, 2009, 2008 and 2007 was $196, $336 and $136, respectively .
Included in receivable from and payable to customers in the accompanying consolidated
statements of financial condition as of December 31, 2009 and 2008 were account receivables of directors,
officers and their affiliates of $7,136 and $71,823 and payables of $123,689 and $55,113, respectively .
Included in senior notes payable at December 31, 2009 and 2008 were senior notes purchased by directors
and their affiliates of $15,210 and $9,492, respectively .
19 . Subsequent Event
As required by ASC 555-10-50 (formerly paragraph 12 of SFAS No . 165), the Group has
evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through
March 15, 2010, the date the consolidated financial statements were available to be issued . Other than
January 19, 2010, when IBG LLC paid a dividend to its members of $38,130, no recordable or disclosable
events occurred through this date .
*****
299
ANNEX III - FORM OF GUARANTEE
300
EXECUTION COPY
Dated 25 November 2009
INTERACTIVE BROKERS FINANCIAL PRODUCTS S.A.
(INCORPORATED IN LUXEMBOURG)
WARRANT AND CERTIFICATE PROGRAMME
UNCODITIONALLY AND IRREVOCABLY GUARANTEED
BY
IBG LLC
GUARANTEE AGREEMENT
301
THIS GUARANTEE AGREEMENT is made as of 25 November, 2009
BETWEEN:
(1)
IBG LLC (the Guarantor);
(2)
INTERACTIVE BROKERS FINANCIAL PRODUCTS S.A. (the Issuer).
WHEREAS
(A)
The Issuer has, on or about the date of this Guarantee, established a Warrant and Certificate
Issuance Programme (the Programme) pursuant to which it may from time to time issue
warrants (the Warrants) and Certificates (the Certificates, together with the Warrants, the
Derivative Securities) in series and or tranches, each governed by German law.
(B)
The Issuer, the Guarantor, and Timber Hill (Europe) AG (as the Issuing Agent, Principal Paying
Agent, Paying Agent and Calculation Agent) will, on or about the date of this Guarantee, enter
into an agency agreement (the Fiscal Agency Agreement) in respect, inter alia, of the
payment obligations of the Issuer under the Derivative Securities.
(C)
The Guarantor has agreed to guarantee the payment of all sums expressed to be payable from
time to time by the Issuer to any Securityholder of the Derivative Securities in accordance with
the Conditions.
NOW THIS GUARANTEE WITNESSES as follows:
1
1.1
Definitions
In this Guarantee the following words and expressions shall have the following meanings:
Conditions means the terms and conditions of the Derivative Securities issued by the Issuer,
as from time to time modified or supplemented in accordance with the terms thereof and as
from time to time amended, supplemented (including by the issuance of final terms setting out
specific conditions) with respect to the Derivative Securities of any series and or tranche;
Securityholder means any holder of a proportionate co-ownership interest or right in the global
note issued with respect to the Derivative Securities of any series or tranche issued by the
Issuer, which is in each case transferable in accordance with the terms and regulations of the
relevant Clearing System and applicable law; and
Guarantee shall mean this Guarantee Agreement as amended or supplemented from time to
time.
Capitalised terms not defined in this Guarantee have the meaning given to such terms in the
Fiscal Agency Agreement.
1.2
2
2.1
Headings used in this Guarantee are for ease of reference only and shall not affect its
construction.
Guarantee
The Guarantor hereby irrevocably and unconditionally guarantees to, and becomes surety for,
the Securityholders with respect to the performance by the Issuer of all its obligations pursuant
to the Conditions governing the Derivative Securities issued by the Issuer including, without
limitation, the due and punctual payment of each amount payable in respect of any Derivative
Security as and when the same becomes due and payable in accordance with the relevant
Conditions, so that the Guarantor will, if the Issuer shall fail punctually to perform any such
obligation, perform or procure the performance of the obligation of the Issuer in accordance with
the relevant Conditions.
302
2.2
This Guarantee is intended to be a contract of suretyship.
2.3
This Guarantee is one of payment and not of collection. The Guarantor waives (i) promptness,
diligence, presentment, demand of payment, protest, order and, except with respect to a
payment demand pursuant to Clause 2.7 below, notice of any kind in connection with the
Conditions and this Guarantee, or (ii) any right it may have of first requiring a Securityholder to
proceed against or enforce any other rights or security against the Issuer or any other person
before claiming from the Guarantor hereunder.
2.4
The defences of payment and statute of limitations, neither of which is waived, shall be
available to the Guarantor and the Guarantor shall be entitled to exercise any right that the
Issuer could have exercised under the Derivative Securities issued by it or the relevant
Conditions to cure any breach or default in respect of its obligations under the Derivative
Securities or the Conditions.
2.5
Multiple demands can be made under this Guarantee by any Securityholder.
2.6
The Guarantor may make payments of interest or principal or both when these sums become
due under the Derivative Securities in lieu of the Issuer irrespective of whether a demand shall
have been made on the Guarantor by a Securityholder. In that case it shall be subrogated to the
rights of the Securityholders with respect to the Issuer.
2.7
Subject to the other terms and conditions of this Guarantee, the Guarantor shall pay any sum
payable under this Guarantee promptly upon, and in any event not later than five Frankfurt
Business Days after, receipt of a demand by a Securityholder.
3
Indemnity
As a separate, independent and alternative stipulation, the Guarantor unconditionally and
irrevocably agrees that any sum expressed to be payable by the Issuer under the Conditions
applicable to the Derivative Securities issued by it, which is for any reason, including, without
limitation, by reason of any provision of the Conditions, being or becoming void, unenforceable
or otherwise invalid under any applicable law, (whether or not now known or becoming known to
the Issuer, the Guarantor, the Securityholders, or any other person) not recoverable from it on
the basis of this Guarantee, will nevertheless be recoverable from the Guarantor and will be
paid by the Guarantor to any of the Securityholders. This indemnity constitutes a separate and
independent obligation from the other obligations in this Guarantee, gives rise to a separate and
independent cause of action and will apply irrespective of any indulgence granted by the
Securityholders or any other person.
4
Status
The claims of the Securityholders against the Guarantor in respect of the Derivative Securities
will constitute direct, unconditional and unsecured obligations of the Guarantor and rank pari
passu in right of payment against the Guarantee with all other unsecured and unsubordinated
debt obligations of the Guarantor (subject, in the event of insolvency, to laws affecting creditors'
rights generally).
5
Continuing Guarantee
This Guarantee is a continuing guarantee and shall extend to the ultimate balance of all the
obligations of the Issuer under any Derivative Security notwithstanding any settlement of
account or other matter or thing whatsoever. It shall remain in full force and effect until all such
obligations have been irrevocably paid and satisfied in full. Furthermore, such obligations are
additional to, and not in substitution for, any security or other guarantee or indemnity at any time
existing in favour of any person.
303
6
Reinstatement
If any payment received by a Securityholder pursuant to the provisions of the Conditions shall,
on the subsequent bankruptcy, insolvency, corporate reorganisation or other similar event
affecting the Issuer, be avoided or set aside under any laws relating to such events, such
payment shall not be considered as discharging or diminishing the liability of the Guarantor and
this Guarantee shall continue to apply as if such payment had at all times remained owing by
the Issuer, provided that the obligations of the Guarantor under this Clause 6 shall, as regards
each payment made to the Securityholder which is avoided or set aside, be contingent upon
such payment being reimbursed to the Issuer or other persons entitled through the Issuer.
7
Covenants
The Guarantor covenants in favour of the Securityholders that it will duly perform and comply
with the obligations of payment and/or delivery of assets expressed to be undertaken by it in the
Conditions.
8
Payments
8.1
All payments by the Guarantor directed to any Securityholder under this Guarantee shall be
made to the Paying Agent in accordance with the terms and conditions of the Fiscal Agency
Agreement.
8.2
Each payment received by the Paying Agent under this Guarantee for a Securityholder will be
made available by the Paying Agent to that Securityholder subject to and in accordance with the
terms and conditions of the Fiscal Agency Agreement and any payment so made by the Paying
Agent to that Securityholder shall be a good discharge of the Guarantor’s obligations to the
Securityholders under this Guarantee.
9
Deposit of Guarantee
This Guarantee shall be deposited with and held by the Issuing Agent until all obligations of the
Issuer in respect of the Derivative Securities have been discharged in full. The Guarantor
hereby acknowledges the right of every Securityholder to the production of this Guarantee.
10
Stamp Duties
The Guarantor shall pay all stamp, registration and other taxes and duties (including any
interest and penalties thereon or in connection therewith) which may be payable upon or in
connection with the execution and delivery of this Guarantee, and shall indemnify each
Securityholder against any claim, demand, action, liability, damages, cost, loss or expense
(including, without limitation, reasonably legal fees and any applicable value added tax) which it
incurs as a result of, or arising out of, or in relation to, any failure of the Guarantor to pay or
delay in paying any of the same.
11
Partial Invalidity
If at any time any provisions hereof is or becomes illegal, invalid or unenforceable in any
respect under the laws of any jurisdiction, neither the legality, validity or enforceability of the
remaining provisions hereof nor the legality, validity or enforceability of such provision under the
laws of any other jurisdiction shall in any way be affected or impaired thereby.
12
Subrogation
If the Guarantor becomes subrogated to the rights of the Securityholders with respect to the
Issuer because of a payment under this Guarantee, the Guarantor agrees not to exercise such
rights until the Derivative Securities and all obligations of the Issuer to the Securityholders have
been paid in full.
304
13
Notices
All notices, demands or other communications by any Securityholder upon the Guarantor shall
be duly served upon the Guarantor if served on the Guarantor by letter at
IBG LLC
Attn: Mr. Paul J. Brody
8 Greenwich Office Park
Greenwich, CT 06831 USA.
14
Governing Law
This Guarantee shall be governed by, and construed in accordance with, the law of the State of
Connecticut.
IN WITNESS whereof the Guarantor has executed this Guarantee the day and year first above written.
EXECUTED by the Guarantor
IBG LLC
By:
Authorised Signatory
EXECUTED by
INTERACTIVE BROKERS FINANCIAL PRODUCTS S.A.
By:
Authorised Signatory
305
SIGNATURE PAGE
Luxemburg, as of 25 March 2010
______________________________
_____________________________
signed: Earl H. Nemser
signed: Roger Ryff
Director
Director
U-1

Basisprospekt [ 2010 ] - Interactive Brokers Financial Products S.A.

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