Form 4271 – April 2024

INTERACTIVE BROKERS AUSTRALIA PTY LTD
TARGET MARKET DETERMINATION – CONTRACTS FOR DIFFERENCEInteractive Brokers Australia Pty Ltd (IBA) issues Contract for Differences to its retail client customers. Detailed information is available in IBA’s Contract for Differences Product DisclosureStatement, available here: https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=3332.
In compliance with our obligations under Part 7.8A of the Corporations Act 2001 (Cth), which relates to the product design and distribution obligations (DDO), IBA has prepared the following
target market determination (TMD) relating to the issue of Contracts for Difference (CFDs) to our clients.
This TMD is available to the public free of charge.

DDO REQUIREMENTAPPLICATION TO CONTRACT FOR DIFFERENCE (CFD)Class of retail clients that comprise the target market for this product – s 994B(5)(b)
1. Description of the likely objectives,
financial situation and needs ofconsumers in the target market

Background
IBA is an online broker that provides trade execution, clearing and custody services to clients around the world. IBA does not employ any advisers
or brokers who manage client accounts. Trades are entered by the client or the client’s self-selected financial representative on a personal
computer or mobile device and transmitted over the internet to IBA for execution on various market centres. All trading in an IBA client accountis self-directed by the client. IBA client service personnel are specifically prohibited from providing any investment or trading or tax advice toclients.
IBA’s online account registration system requires applicants to satisfy the below criteria prior to CFD trading permission being activated in theclient account.
Target Market••

Income level: clients who have annual income by age group:o>50 or ORG accounts: No requiremento41-50: >US$50,000

o31-40: >US$45,000

o21-30: >US$40,000

Liquid Net Worth: clients who have liquid net worth by age group:o>50 or ORG accounts: >US$100,000

o41-50: >US$75,000

o31-40: >US$50,000

o21-30: >US$20,000•Age Group: Above 21 years of age•Knowledge and experience: Clients with a “good” or “extensive” knowledge of and generally at least 2 years’ experience trading CFDs
(or equivalent in other products). Clients who do not have the requisite trading experience must have successfully completed a CFD
teaching exam or receive advice from a professional adviser.

•Risk Tolerance: Experienced investors with the ability to bear a high degree of risk.

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APPLICATION TO CONTRACT FOR DIFFERENCE (CFD)•Ability to bear losses: Clients who have the ability to bear losses up to the value of their IBA account.

•Objectives and Needs: Clients who:oWish to take positions in a product to hedge or offset the risk in another product and/or who wish to increase the principal value of
their investments by assuming substantially higher risk to their investment capital;oHave the ability to bear:▪

magnified exposures and losses that may arise from trading with leverage;▪

the risk of fluctuations in the value of the reference underlying, for example the fluctuation in the value of a stock over which
a CFD might be issued;▪

the risk of being unable to maintain your hedge (protection) should a margin violation cause the CFD to be closed out;▪

the counterparty risk of IBA not fulfilling its contractual obligations under the CFD, including the risk of IBA defaulting andnot making the payment owed to the client under the CFD;

oAre able to assess the life span of a product against their investment time frame; andoHave capacity to actively monitor their margin obligations.

IBA has also implemented an automated control to alert clients if a proposed transaction would exceed their self-declared tolerance for CFDs asa percentage of their stated net worth. Specifically, IBA’s proprietary trading system will generate a warning message in the event that a client
attempts to place a CFD trade that would breach their self-declared concentration risk appetite.
Class of persons that are not within the Target Market

2. Description of CFDs (including its keyattributes)•

Unsophisticated or inexperienced investors.

•Anyone who resides in a jurisdiction where trading in over-the-counter derivative products is prohibited.

•Clients with a conservative or low risk appetite.

•Clients who do not have the ability to bear losses.

•Clients who are unable to monitor and manage their margin obligations and to generate additional capital to meet margin calls as theyarise.

•Clients with an investment time frame that is generally inconsistent with their objectives and needs.

CFDs have the following key attributes:•A CFD is an over-the-counter derivative that provides leveraged exposure to the value of a reference asset or rate.

•CFDs are synthetic products in which IBA faces the client in all CFDs it issues.

•IBA hedges all CFDs 1:1 and may elect not to provide quotes for any CFDs at any time if, for example, IBA is unable to secure a hedge inthe reference underlying market.

•IBA offers the following types of CFDs:•oShare CFDs: these are CFDs which are designed to deliver the return of a share of an exchange traded company, including dividends
and corporate actions.

oIndex CFDs: these are CFDS which are designed to deliver the return of an index.

oForex CFDs: these are CFDs which are designed to deliver the return of an exchange rate of a currency pair.

oMetal CFDs: these are CFDs which are designed to deliver the return of precious metals.

IBA issued CFD’s are open-ended contracts which means that the contract will be kept open until the client chooses to close it (subject tothe applicable margin requirements continuing to be met). Fees and interest will accrue for so long as the CFD remains open.

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3. Explanation of why CFDs, including its
key attributes, is likely to be consistent
with the likely objectives, financial
situation and needs of consumers in thetarget marketPage 3APPLICATION TO CONTRACT FOR DIFFERENCE (CFD)•

In accordance with ASIC’s Product Intervention Order, IBA is obliged to liquidate open CFD positions and other assets in the client accountwhen the equity in a retail client’s account falls to less than at least 50% of the initial margin originally required to open the CFD position,
but IBA may do so sooner.

•IBA may change the applicable margin requirements at any time without notice, which could trigger immediate liquidations in the clientaccount.

•CFDs are complex instruments that provide leveraged exposure to the underlying reference asset or rate. Accordingly, they are only
appropriate for experienced or knowledgeable traders who have the ability to bear some losses.

•CFDs can be used for a variety of purposes, including hedging, speculation, diversification and generating trading profits, hence consumers
with these investment objectives will likely be within the target market.

•Given that CFDs are often used for speculation, some clients trading IBA issued CFDs will incur losses while others incur profits. Theselosses and gains are amplified because CFDs are leveraged instruments. Accordingly, consumers with a conservative or low risk appetite
are likely to be outside of the target market for IBA issued CFDs.

•IBA has the right, and will generally, conduct automatic liquidations in under-margined accounts and ASIC’s Product Intervention Order,
which protects consumers from incurring negative balances, among other things, together mitigate the risk of consumers incurring losses
exceeding their IBA account equity. However, clients who wish to avoid liquidations should actively monitor their accounts.

Accordingly, if a CFD was to be issued to a client in the target market, it would likely be consistent with the likely objectives, financial situationand needs of the consumer (s 994B(8)(b)).
Conditions and restrictions relating to the distribution of this product – s 994B(5)(c)
4. Outline of the conditions andrestrictions relating to distribution ofCFDs•

IBA has a high degree of control over the distribution of its CFDs.

•In particular, IBA only issues CFDs:
odirectly to clients who complete the online application and who personally satisfy all of the target market criteria to trade CFDs
through its proprietary trading platform; oroto an AFS Licensed intermediary that operates an omnibus account with IBA (a Distributor). In these cases, IBA will face theDistributor rather than the client of the Distributor directly.

•IBA has less control over the distribution of its CFDs to persons (who are not IBA’s clients) in circumstances where they are distributed
through a Distributor.

•Distribution conditions for direct IBA clients:•oclients will answer a series of questions contained in the online application; ando

where clients' answers indicate that they are not in the target market, they will not be issued with a CFD.

Distribution conditions for Distributors:
All Distributors wishing to distribute IBA’s CFDs to persons (who are not IBA’s clients) must:

5. Explanation of why these distribution
conditions and restrictions will make it
more likely that the consumers whoacquire the CFDs are in the targetmarketo

enter into an agreement with IBA which, among other things, governs the distribution of financial products; andoensure that the Distributor’s client is within the target market. IBA will not do business with any Distributor that does notcontractually agree to this.

•IBA will also seek regular statements and data from Distributors to ensure that the Distributor is complying with the requirement todistribute IBA’s CFDs only to persons within the target market.

•IBA will programmatically prevent any person that directly opens an IBA account and who is not within the target market from accessing
IBA issued CFDs.

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APPLICATION TO CONTRACT FOR DIFFERENCE (CFD)•

Similarly, IBA will contractually require that any Distributor that distributes IBA issued CFDs ensures that they are only distributed topersons that satisfy the target market. IBA will regularly monitor the performance of Distributors in complying with this distribution
condition.

•In light of the above, we consider it highly likely that only the consumers who are within the target market will access IBA issued CFDs
through IBA's proprietary trading platforms.

Reviews
6. Outline of the events and circumstancesthat would reasonably indicate to IBA
that the TMD for CFDs is no longer
appropriate (i.e. "review triggers" – s994B(5)(d)Review Triggers:•Significant losses incurred by clients.

•The nature of and number of complaints from consumers indicating that the risks of CFDs are not well understood.

•Significant compensation paid out in relation to CFDs.

•Feedback received directly or through Distributors.

•

IBA becomes aware of a significant dealing in CFDs to clients outside of the target market.

•Material changes to laws or regulations affecting CFDs or the nature of IBA-issued CFDs.

7. The period of time between the start ofthe day this TMD is made and the daythat the first periodic review of the TMD
will conclude – s 994B(5)(e)

IBA will review the appropriateness of its target market at least every 6 months at the relevant product governance committee meeting attended
by legal, compliance and senior business management, or earlier if the chair of the relevant product governance committee determines that thenature and extent of detriment to retail clients warrants an earlier review of the target market.

8. The period of time between theconclusion of a periodic review of theTMD and the conclusion of the next
periodic review – s 994B(5)(f)

IBA will review the appropriateness of its target market at least every 6 months at the relevant product governance committee meeting
attended by legal, compliance and senior business management, or earlier if either a review trigger occurs or the chair of the relevant productgovernance committee determines that the nature and extent of detriment to retail clients warrants an earlier review of the target market.

Reporting period for reporting information about the number of complaints about the product – s 994B(5)(g)
9. The reporting period in which thedistributors of IBA's financial products
are required to provide information
about the number of complaints
received about the product

IBA will require that Distributors report information about the number and nature of complaints received about the product and whether any
persons not in the target market were distributed IBA issued CFDs, within 10 business days of receipt of the complaint or the occurrence of thedealing.

Information Sharing
10. Outline of the kinds of information that
IBA will require from distributors topromptly identify that the TMD for CFDs
is no longer appropriate – s 994B(5)(h)••11. The distributors that will be required toprovide the information specified above– s 994B(5)(h)(i)In order to promptly determine if the target market continues to be appropriate, IBA will require that Distributors provide IBA with thefollowing information on a quarterly basis:oProfit or loss incurred by clients trading CFDs;o

Any compensation paid out in relation to CFDs; ando

Any feedback about the CFD product and / or the target market.

In addition, as detailed in section 9, IBA will require that the Distributor provide information about any complaints relating to CFDs or
any dealings in CFDs outside of the target market within 10 business days of receipt of the complaint or the occurrence of the dealing.

IBA will require all of the above data from the Distributors, given that IBA does not have any contractual relationship with the end clients of theDistributor and cannot obtain the data itself.

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DDO REQUIREMENTAPPLICATION TO CONTRACT FOR DIFFERENCE (CFD)

12. The reporting period for the relevantdistributors to provide the information
specified above – s 994B(5)(h)(ii)

Unless stated otherwise, IBA will require the information specified above on a quarterly basis.