Disclosure Regarding Trading Relationship
The purpose of this notice is to clarify the trading relationship between you and Mitsubishi International Corporation ("MIC"). MIC's dealings with you are governed by the terms of this disclosure notice except as otherwise expressly agreed or as required by law or regulation.
In the normal course of business, MIC enters into commodity futures, forwards, options and swap contracts to reduce its exposures to price fluctuations on certain long-term commitments and inventory positions. MIC conducts this trading activity as a principal. When MIC enters into principal transactions with you, it does so as an arm's length counterparty. MIC does not act as a broker, agent, fiduciary, financial advisor, or in any similar capacity on your behalf.
Statements made to you by MIC trading personnel should not be construed as recommendations or advice. We expect you, as a counterparty, to evaluate the facts and circumstances surrounding any potential transaction and to execute the transaction based on your own independent determination of its merits.
If MIC conveys that it is willing to "work" a counterparty's "order," MIC will attempt, but is not committed, to enter into the trade at the price requested. MIC's receipt of an order, or any indication communicated by MIC that it is working an order for you, does not create a contract between you and MIC that commits MIC to execute the order. MIC will attempt to execute a counterparty's order when it anticipates that it will be able to make an appropriate return on the transaction.
When a counterparty indicates its interest in a potential transaction or provides MIC with a request to enter into a transaction, MIC may engage in pre-hedging and hedging with a view to facilitating the potential transaction. Any such transactions are entered into by MIC as a principal and could occur at a different price from the one at which MIC executes the transaction with the original counterparty.