Common use of Sub-Account Clause in Contracts

Sub-Account. The sub-account is used to offset the mutual claims arising from the deposit agreement between IBIE and the client and from the commission transactions settled through IBIE on behalf of the client and to determine the current amount of the client's credit balance on this basis. The calculation also takes into ac- count collateral (margins) that may have to be provided by the client for orders in derivative financial instruments. The margin amounts are blocked by IBIE on the client's sub-account. IBIE ensures that the client's credit balance is updated on a daily ba- sis. The client can view the sub-account in his name at IBIE. Through the data access to the sub-account, IBIE ensures that client or- ders for the purchase of financial instruments are covered by corresponding credit balances. FXFlat can also view the client's sub-account so that it is ensured that FXFlat as commission agent does not forward any orders of the client to IBIE for which there is no account coverage. Nevertheless, FXFlat is entitled, but not required, to act as a commission agent for the client in advance. Any negative bal- ance on the sub-account - in exceptional cases, e.g. due to can- cellation entries - must be settled by the client without delay.