Who has beneficial ownership of shares in relation to a CFD position in a Prime Facility?
When you buy CFDs (Contracts for Difference) you’re not investing in shares – you are investing in a derivative. CFDs offer you exposure to share price movements, however you do not have any entitlement to the underlying share. When investing in CFDs, you have credit exposure to your CFD provider, in this case Macquarie, and you rely on your provider to meet its contractual obligations under the CFDs. Note that Prime offers many of the benefits of CFDs without forgoing the benefits of share ownership.
