Important trading changes for City Index clients from 13th April

City Index is continuing to develop the tools to help you manage your trading, your way

On 13th April, 2010 we will be introducing new terms and conditions that will regulate our relationship and that will affect the way you trade. It is important you take the time to read through this email to see how these changes will influence your trading. To make it easier and clearer we have attached the revised PDS and client agreement for more detailed information and we encourage you to read these in full.

Product Disclosure and Customer Agreement

Transparent risk management tools with City Index

Our new risk and margin management feature, Margin Close Out goes live on 13th April. This new feature puts you in control of your account and margin levels and provides you with transparency to see where they are at any time, easily and all directly from the trading platform. You can monitor your own margin level using the new Margin Level Indicator found in the left hand corner of the trading platform. This feature replaces the previous City Index managed margin calls, warnings or alerts.

Please Note: If your Margin Level (the ratio of Net Equity to Total Margin) drops below the Margin Close Out Level we may close all or any of your open positions immediately and without notice. It is your responsibility to monitor your Margin Level. Your Margin Close Out Level is currently 80%

Get more from your trading with our new lower margins

From 13th April you will be able to trade FX & indices CFDs with margin requirement from only 0.5% and 5% on share CFDs.

Many of our top instruments will also have their margins reduced. You will be able to find more information on the new rates on the ITP.

Our Orders Aware Margining feature, which offers the potential to reduce your margin requirement for many instruments, is also changing so the amount required to open certain positions will be lower.

Important: Existing Positions on 13th April

We think you will benefit from the new terms and features we are introducing, but if you have existing open positions on 13th April, the new terms, change in margin rates and the Margin Close Out features will not apply to you unless you agree to them. You can do this in a number of ways:

Email Client Services at enquiries@cityindex.com.au to confirm your acceptance; or

Place a new trade with us after 7am Sydney time on 13 April. By doing so you will be accepting that the new terms, margin rates and the Margin Close Out will apply to your account, including your existing positions and any new positions.

Trading derivatives can result in losses that exceed your initial deposit. The information in this communication is general in nature only and does not take into account your objectives, financial situation or needs. It is important for you to consider these matters before making an investment decision. City Index recommends that you seek independent professional advice. A Product Disclosure Statement (PDS) is available here . Information about our services, including our fees and charges is also contained in our Financial Services Guide, which is available at this source. It is important for you to consider the PDS in deciding whether to acquire, continue to hold, or dispose of CFDs. City Index Australia Pty Ltd (ACN 141 774 727), AFS License No. 345646.