What are the rules for trading using my NAB Cash Manager Account?

If you have successfully nominated your NAB Cash Manager Account (CMA) to be the settlement account for your share trading on nabtrade, the following rules will apply:

• A $50,000 trading limit applies when settling out of your CMA.
• If you believe you will require an increased trading limit, please contact us on 13 13 80 to discuss your requirements, which will be subject to approval.
• Any buys and sells of shares will be factored in to your available trading limit (unsettled buys may decrease your trading limit below $50,000 and unsettled sells may increase your trading limit above $50,000).
• Funds will be debited from your CMA as per the nabtrade Client Agreement.
• nabtrade will not lock your funds when the trade is placed. It is your responsibility to ensure that you have sufficient funds in your CMA when the trade settles on T+2.
• If there are insufficient funds in your Account to meet a Debit Payment:

(a) you may be charged a fee and/or interest by NAB;

(b) nabtrade may also charge you additional costs incurred by us;

(c) you must arrange for the Debit Payment to be made by another method or arrange for sufficient cleared funds to be in your CMA by an agreed time so that we can process the Debit Payment; and

(d) nabtrade reserves the right to sell shares you may hold to recoup the costs of covering your trade.

• You should check your Cash Manager Account statement to verify that the amounts debited from your account are correct.

The below scenarios illustrate how the CMA Trading Limits work. This incorporates Start of Day Balance and Available Trading Limit.

Scenario 1:

A customer buys $30k worth of stock (unsettled buy) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.

T0: Available trading limit = $20k (start of day balance is $50k less the $30k unsettled buy).

T1: Available trading limit = $20k (start of day balance is $50k less the $30k unsettled buy).

T2: Available trading limit = $50k (start of day balance is $50k, the unsettled buy has now been funded from the NAB Cash Manager account so the $30k unsettled buy is removed).

Scenario 2:

A customer sells $20k worth of stock (unsettled sell) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.

T0: Available trading limit = $70k (start of day balance of $50k plus $20k unsettled sell).

T1: Available trading limit = $70k (start of day balance of $50k plus $20k unsettled sell).

T2: Available trading limit = $50k (start of day balance of $50k, the sell order has now been settled to the NAB Cash Manager account so the $20k unsettled sell is removed).

Scenario 3:

A customer buys $50k worth of stock (unsettled buy) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.

T0: Available trading limit = $0 (start of day balance of $50k less $50k unsettled buy) **The customer will be unable to place further trades unless more stock is sold, or the buy is settled from the linked NAB Cash Manager account.

T1: Available trading limit = $0 (start of day balance of $50k less $50k unsettled buy) **The customer will be unable to place further trades unless more stock is sold, or the buy is settled from the linked NAB Cash Manager account.

T2: Available trading limit = $50k (start of day balance of $50k, the buy order has now been settled from the NAB Cash Manager account so the $50k unsettled buy is removed).