PPPs Explained. 2019

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CONFIDENTIAL. NOT FOR GENERAL DISTRIBUTION CONFIDENTIAL. NOT FOR GENERAL DISTRIBUTION

EXPLANATION OF PRIVATE

PLACEMENT PROGRAMS

Ultra High-Net-Worth client !ill "etter #n$ertan$ the reaon

Ultra High-Net-Worth client !ill "etter #n$ertan$ the reaon an$ o%er%ie! o& the an$ o%er%ie! o& the o'erationo'eration

in a 'ri%ate 'lace(ent 'rogra( o& tra$ing. Thi i NOT an o&&er to ell or olicit) It i &or

in&or(ational '#r'oe onl*.

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E+,LANATION OF ,RIATE

,LACEENT ,ROGRAS

INTRODUCTION INTRODUCTION ... ... 33 TOPICS TOPICS ... 3... 3 THE BASIC REASONS FOR PPOPs

THE BASIC REASONS FOR PPOPs ... 3... 3 NORMAL TRADING vs. PRIVATE PLACEMENT

NORMAL TRADING vs. PRIVATE PLACEMENT... 5... 5 PROGRAM STRUCTURE

PROGRAM STRUCTURE ... . 88 NON-SOLICITATION AND NON-DISCLOSURE

NON-SOLICITATION AND NON-DISCLOSURE ... 9 ... 9 HOW BANKS AND BROKERS CAN PROFIT

HOW BANKS AND BROKERS CAN PROFIT ... 9 ... 9 PROJECTS

PROJECTS ... 10... 10 PROCESS SUMMARY

PROCESS SUMMARY ... ... 1010 ANALYSIS OF RISK INVOLVED IN PPOP CONTRACTS

ANALYSIS OF RISK INVOLVED IN PPOP CONTRACTS ... 11 ... 11 SCAMS

SCAMS ... 15... 15 USE OF LAWYERS FOR ADVICE AND GUIDANCE

USE OF LAWYERS FOR ADVICE AND GUIDANCE ... 16 ... 16 CONCLUSION

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INTRODUCTION INTRODUCTION

Thi

Thi $oc#(ent e/'lain $oc#(ent e/'lain o(e o& o(e o& the o"c#re the o"c#re or #nclear or #nclear a'ect o& a'ect o& ,ri%ate,ri%ate ,lace(ent O''ort#nit*

,lace(ent O''ort#nit* ,rogra( ,rogra( 0,,O,1. 0,,O,1. ,,O, are ,,O, are alo alo 2no!n #n$er2no!n #n$er other

other na(e3 na(e3 #ch #ch a a ,ri%ate ,ri%ate ,lace(ent ,lace(ent ,rogra( ,rogra( 0,,,1 0,,,1 or or ,ri%ate,ri%ate ,lace(ent In%et(ent ,rogra( 0,,I,1.

,lace(ent In%et(ent ,rogra( 0,,I,1. Thi t#$* i Thi t#$* i the re#lt o& the re#lt o& e%erale%eral *ear o& e/'ert 'eronal e/'erience an$ teti(on*3 an$ i e/'laine$ &ro( the *ear o& e/'ert 'eronal e/'erience an$ teti(on*3 an$ i e/'laine$ &ro( the %ie!'oint o& "oth an client an$ a "ro2er.

%ie!'oint o& "oth an client an$ a "ro2er.

TOPICS TOPICS

Be&ore

Be&ore tac2ling the to'ic otac2ling the to'ic o& ,ri%ate ,lace(ent O''ort#nit* ,rogra(& ,ri%ate ,lace(ent O''ort#nit* ,rogra(3 it i3 it i i('ortant to $ic#

i('ortant to $ic# the "aic reaon the "aic reaon &or the e/itence o& thi &or the e/itence o& thi "#ine. "#ine. ThiThi $ic#ion incl#$e the "aic conce't o& !hat (one* i an$ ho! it i create$3 $ic#ion incl#$e the "aic conce't o& !hat (one* i an$ ho! it i create$3 controlling the $e(an$ &or (one* an$ cre$it3 an$ the 'roce o& i#ing a $e"t controlling the $e(an$ &or (one* an$ cre$it3 an$ the 'roce o& i#ing a $e"t note3 $ico#nting the note3 an$

note3 $ico#nting the note3 an$ elling an$ reelling elling an$ reelling the note in ar"itragethe note in ar"itrage tranaction.

tranaction.

THE BASIC REASONS FOR PPOPS THE BASIC REASONS FOR PPOPS

ONE4 CREATION ONE4 CREATION

Firt an$ &ore(ot3

Firt an$ &ore(ot3 ,,O, e/it to 5,,O, e/it to 5create6 (one*. create6 (one*. one* i create$ "*one* i create$ "* creating $e"t.

creating $e"t.

For e/a('le)

For e/a('le) 4o# a an in$i%i$#al c4o# a an in$i%i$#al can agree to loan 7899 to a an agree to loan 7899 to a &rien$3 !ith the&rien$3 !ith the #n$ertan$ing that the interet &or the loan !ill "e 89:3 re#lting in a total to #n$ertan$ing that the interet &or the loan !ill "e 89:3 re#lting in a total to "e re'ai$ o& 7889.

"e re'ai$ o& 7889. What *o# ha%e What *o# ha%e $one i to $one i to act#all* create 7893 e%en tho#ghact#all* create 7893 e%en tho#gh *o# $on;t ee that (one* initiall*.

*o# $on;t ee that (one* initiall*.

Don;t coni$er the legal a'ect o& #ch an agree(ent3 <#t the n#("er. Don;t coni$er the legal a'ect o& #ch an agree(ent3 <#t the n#("er. Ban2 are $oing thi ort o& len$ing e%er* $a*3 "#t !ith (#ch (ore (one*. Ban2 are $oing thi ort o& len$ing e%er* $a*3 "#t !ith (#ch (ore (one*.

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create$ $#e to the &act that #ch intr#(ent are $e&erre$ 'a*(ent create$ $#e to the &act that #ch intr#(ent are $e&erre$ 'a*(ent o"ligation3 or

o"ligation3 or $e"t. $e"t. one* i cone* i create$ &ro( that $e"t.reate$ &ro( that $e"t.

Theoreticall*3 an* 'eron3

Theoreticall*3 an* 'eron3 co('an*3 or co('an*3 or organi=ation can i#e organi=ation can i#e $e"t note$e"t note 0again3 ignore the legalitie o

0again3 ignore the legalitie o& the 'roce1. & the 'roce1. De"t note are $e&erre$ 'a*(entDe"t note are $e&erre$ 'a*(ent lia"ilitie.

lia"ilitie.

E/a('le)

E/a('le) A 'eron 0in$i%i$#al3 co(A 'eron 0in$i%i$#al3 co('an*3 or or'an*3 or organi=ation1 i in gani=ation1 i in nee$ o& 7899.nee$ o& 7899. He generate a $e"t note &or 78>9 that (at#re a&ter 8 *ear3 an$ ell thi $e"t He generate a $e"t note &or 78>9 that (at#re a&ter 8 *ear3 an$ ell thi $e"t &or 7899.

&or 7899. Thi 'roce Thi 'roce i 2no!n i 2no!n a 5$ico#nting6. a 5$ico#nting6. Theoreticall*3 the Theoreticall*3 the i#er ii#er i a"le to i#e a (an* #ch $e"t note at !hate%er &ace %al#e he $eire ? a a"le to i#e a (an* #ch $e"t note at !hate%er &ace %al#e he $eire ? a long a "orro!er "elie%e that he; &inanciall* trong eno#gh to hono#r the( long a "orro!er "elie%e that he; &inanciall* trong eno#gh to hono#r the( #'on (at#rit*.

#'on (at#rit*.

De"t note #ch a e$i#( Ter( Note 0TN13 Ban2 G#arantee 0BG13 an$ De"t note #ch a e$i#( Ter( Note 0TN13 Ban2 G#arantee 0BG13 an$ Stan$-B* Letter o& Cre$it 0SBLC1 are i#e$ at $ico#nte$ 'rice "* (a<or Stan$-B* Letter o& Cre$it 0SBLC1 are i#e$ at $ico#nte$ 'rice "* (a<or !orl$ "an2 in the a(o#nt o& "illion o& USD e%er* $a*.

!orl$ "an2 in the a(o#nt o& "illion o& USD e%er* $a*.

Eentiall*3 the* @create@ #ch $e"t note o#t o& thin air3 (erel* "* creating a Eentiall*3 the* @create@ #ch $e"t note o#t o& thin air3 (erel* "* creating a $oc#(ent.

$oc#(ent.

The

The core 'ro"le() core 'ro"le() To i#e To i#e #ch a #ch a $e"t note i $e"t note i %er* i('le3 %er* i('le3 "#t the i#er"#t the i#er !o#l$

!o#l$ ha%e ha%e 'ro"le( 'ro"le( &in$ing &in$ing "#*er "#*er #nle #nle the the "#*er "#*er @"elie%e@ @"elie%e@ that that thethe i#er i &inanciall* trong eno#gh to hono#r that $e"t note #'on (at#rit*. i#er i &inanciall* trong eno#gh to hono#r that $e"t note #'on (at#rit*. An* "an2 can i#e #ch a $e"t note3 ell it at $ico#nt3 an$ 'ro(ie to 'a* An* "an2 can i#e #ch a $e"t note3 ell it at $ico#nt3 an$ 'ro(ie to 'a* "ac2 the &#ll

"ac2 the &#ll &ace %al#e at &ace %al#e at the ti(e the $e"t note (at#re. the ti(e the $e"t note (at#re. B#t !o#l$ thatB#t !o#l$ that i#ing "an2 "e a"le to &in$ an* "#*er &or #ch a $e"t note !itho#t "eing i#ing "an2 "e a"le to &in$ an* "#*er &or #ch a $e"t note !itho#t "eing &inanciall* trong

&inanciall* trong

I& one o& the larget "an2 in Wetern E#ro'e ol$ $e"t note !ith a &ace %al#e I& one o& the larget "an2 in Wetern E#ro'e ol$ $e"t note !ith a &ace %al#e o&

o& 8 8 EURO EURO at at a a $ico#nte$ $ico#nte$ 'rice 'rice o& o& 9939993 9939993 (ot (ot in$i%i$#al in$i%i$#al !o#l$!o#l$ coni$er '#rchaing one3 gi%en the &inancial (ean an$ o''ort#nit* to %eri&* coni$er '#rchaing one3 gi%en the &inancial (ean an$ o''ort#nit* to %eri&* it "e&orehan$.

it "e&orehan$. Con%erel*3 i& a Con%erel*3 i& a tranger a''roache$ an in$i%i$#al tranger a''roache$ an in$i%i$#al on the treeton the treet !ith an i$entical "an2 note3 i#e$ "* an #n2no!n "an23 an$ o&&ere$ it &or the !ith an i$entical "an2 note3 i#e$ "* an #n2no!n "an23 an$ o&&ere$ it &or the a(e ale 'rice (ot 'eo'le !o#l$

a(e ale 'rice (ot 'eo'le !o#l$ ne%er coni$er that o&&er. ne%er coni$er that o&&er. It i a (atter o&It i a (atter o& tr#t an$ cre$i"ilit*.

tr#t an$ cre$i"ilit*. Thi alo ill#trate !h* Thi alo ill#trate !h* there; o (#ch &ra#$ an$ othere; o (#ch &ra#$ an$ o (an* "og# intr#(ent in thi "#ine.

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in%ol%ing

in%ol%ing i#ing i#ing "an2 "an2 an$ an$ gro#' gro#' o& o& e/it-"#*er e/it-"#*er 0,enion 0,enion F#n$3 F#n$3 largelarge &inancial intit#tion3 etc.1 in an e/cl#i%e ,ri%ate ,lace(ent arena.

&inancial intit#tion3 etc.1 in an e/cl#i%e ,ri%ate ,lace(ent arena.

All #ch

All #ch acti%itie "* the "an2 acti%itie "* the "an2 are $one a are $one a @O&&-Balance Sheet Acti%itie@. @O&&-Balance Sheet Acti%itie@. AA #ch3

#ch3 the the "an2 "an2 "ene&it "ene&it in in (an* (an* !a*. !a*. O&&-Balance O&&-Balance Sheet Sheet Acti%itie Acti%itie areare contingent aet an$ lia"ilitie3 !here the %al#e $e'en$ #'on the o#tco(e contingent aet an$ lia"ilitie3 !here the %al#e $e'en$ #'on the o#tco(e o&

o& !hich !hich the clathe clai( i( i i "ae$3 "ae$3 i(ilar i(ilar to to that o& that o& an an o'tion. o'tion. O&&-Balance O&&-Balance SheetSheet Acti%itie a''ear on the "alanc

Acti%itie a''ear on the "alance heet ONL4 a (e(ore heet ONL4 a (e(oran$a ite(. an$a ite(. When the*When the* generate a cah &lo! the* a''ear a a

generate a cah &lo! the* a''ear a a cre$it or $e"it in the "alance heet. cre$it or $e"it in the "alance heet. TheThe "an2 $oe not ha%e to coni$er "in$ing ca'ital contraint3 a there i no

"an2 $oe not ha%e to coni$er "in$ing ca'ital contraint3 a there i no $e'oit lia"ilit*.

$e'oit lia"ilit*.

NORMAL TRADING VS. PRIVATE PLACEMENT NORMAL TRADING VS. PRIVATE PLACEMENT

All tra$ing 'rogra( in the ,ri%ate ,lace(ent arena in%ol%e tra$e !ith #ch All tra$ing 'rogra( in the ,ri%ate ,lace(ent arena in%ol%e tra$e !ith #ch $ico#nte$ $e"t note in o(

$ico#nte$ $e"t note in o(e &ahion. e &ahion. F#rther3 in or$er to F#rther3 in or$er to "*'a the legal"*'a the legal retriction3 thi tra$ing can onl*

retriction3 thi tra$ing can onl* "e $one on a 'ri%ate le%el. "e $one on a 'ri%ate le%el. Thi i the (ainThi i the (ain $i&&erence "et!een thi t*'e o& tra$ing an$ @nor(al@ tra$ing3 !hich i highl* $i&&erence "et!een thi t*'e o& tra$ing an$ @nor(al@ tra$ing3 !hich i highl* reg#late$.

reg#late$. Thi i Thi i a ,ri%ate a ,ri%ate ,lace(ent le%el ,lace(ent le%el "#ine tranaction "#ine tranaction that i that i &ree&ree &ro( the ##al retriction 'reent in the ec#ritie (ar2et.

&ro( the ##al retriction 'reent in the ec#ritie (ar2et.

U#all*3 tra$ing i 'er&or(e$ #n$er the @o'en (ar2et@ 0alo 2no!n a the U#all*3 tra$ing i 'er&or(e$ #n$er the @o'en (ar2et@ 0alo 2no!n a the @'ot (ar2et@1 !here $ico#nte$ intr#(ent are "o#ght an$ ol$ !ith @'ot (ar2et@1 !here $ico#nte$ intr#(ent are "o#ght an$ ol$ !ith a#ction-t*'e "i$.

a#ction-t*'e "i$. To 'artici'ate To 'artici'ate in #ch in #ch tra$ing3 the tra$ing3 the tra$er (#t tra$er (#t "e in "e in &#ll&#ll control o& the &#n$3 other!ie the* lac2 the (ean "#* the intr#(ent an$ control o& the &#n$3 other!ie the* lac2 the (ean "#* the intr#(ent an$ reell the(.

reell the(. Alo3 there are &e!er ar"Alo3 there are &e!er ar"itrage tranaction in thi itrage tranaction in thi (ar2et3 ince(ar2et3 ince all 'artici'ant ha%e 2no!le$ge o& the intr#(ent an$ their 'rice.

all 'artici'ant ha%e 2no!le$ge o& the intr#(ent an$ their 'rice.

Ho!e%er3

Ho!e%er3 in in a$$ition to a$$ition to the o'en the o'en (ar2et there (ar2et there i i a a cloe$3 cloe$3 'ri%ate (ar2et'ri%ate (ar2et !herein l

!herein lie ie a a retricte$ retricte$ n#("er n#("er o& o& @(ater @(ater co((it(ent co((it(ent hol$er@. hol$er@. TheeThee hol$er are Tr#t !ith h#ge a(o#nt o& (one* that enter contract#al hol$er are Tr#t !ith h#ge a(o#nt o& (one* that enter contract#al

agree(ent !ith "an2 to "#* a li(ite$ n#("er o& &reh-c#t intr#(ent at a agree(ent !ith "an2 to "#* a li(ite$ n#("er o& &reh-c#t intr#(ent at a 'eci&ic 'rice $#ring an

'eci&ic 'rice $#ring an allotte$ 'erio$ o& allotte$ 'erio$ o& ti(e. ti(e. Their <o" i Their <o" i to reell theeto reell thee intr#(ent3 o the* contract #"-co((it(ent hol$er3 !ho in t#rn contract intr#(ent3 o the* contract #"-co((it(ent hol$er3 !ho in t#rn contract e/it-"#*er.

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"ac2ing each tranaction.

"ac2ing each tranaction. It i at It i at thi 'oint the client thi 'oint the client are nee$e$3 "eca#e theare nee$e$3 "eca#e the in%ol%e$ "an2 an$ co((it(ent hol$er are not allo!e$ to tra$e !ith their in%ol%e$ "an2 an$ co((it(ent hol$er are not allo!e$ to tra$e !ith their o!n (one* #nle the* ha%e reer%e$ eno#gh &#n$ on the (ar2et3

o!n (one* #nle the* ha%e reer%e$ eno#gh &#n$ on the (ar2et3 co('riing #n#e$ (one* that "elong to client3 ne%er at ri2. co('riing #n#e$ (one* that "elong to client3 ne%er at ri2.

The

The tra$ing tra$ing "an2 "an2 can can loan loan (one* (one* to to the the tra$er. tra$er. T*'icall*3 T*'icall*3 thi thi (one* (one* ii loane$ at a ratio o& 8)893 "#t $#ring certain con$ition thi ratio can "e a high loane$ at a ratio o& 8)893 "#t $#ring certain con$ition thi ratio can "e a high a >9)8.

a >9)8. In other !or$3 In other !or$3 i& the tra$er can i& the tra$er can @reer%e@ 78993 then the "an2 c@reer%e@ 78993 then the "an2 canan loan 78B.

loan 78B. In all act#alit*3 the "anIn all act#alit*3 the "an2 i gi%ing the tra$er a line o& 2 i gi%ing the tra$er a line o& cre$it "ae$ oncre$it "ae$ on ho! (#ch (one* the tra$erco((it(ent hol$er ha3 ince the "an2 !on;t ho! (#ch (one* the tra$erco((it(ent hol$er ha3 ince the "an2 !on;t loan that (#ch (one* !itho#t collateral3 no (atter ho! (#ch (one* the loan that (#ch (one* !itho#t collateral3 no (atter ho! (#ch (one* the client ha%e.

client ha%e.

Beca#e "an2er an$ &inancial e/'ert are !ell a!are o& the o'en (ar2et3 an$ Beca#e "an2er an$ &inancial e/'ert are !ell a!are o& the o'en (ar2et3 an$ e#all*

e#all* a!are o& a!are o& the o-calle$ the o-calle$ @TN-'rogra(@3 @TN-'rogra(@3 "#t are c"#t are cloe$ o#t loe$ o#t o& o& thethe 'ri%ate (ar2et3 the* &in$ it har$ to "elie%e that the 'ri%ate (ar2et e/it. 'ri%ate (ar2et3 the* &in$ it har$ to "elie%e that the 'ri%ate (ar2et e/it.

ARBITRAGE AND LEERAGE ARBITRAGE AND LEERAGE

,ri%ate ,lace(ent tra$ing a&et* i "ae$ on the &act that the tranaction are ,ri%ate ,lace(ent tra$ing a&et* i "ae$ on the &act that the tranaction are 'er&or(e$ a ar"itrage tranac

'er&or(e$ a ar"itrage tranaction. tion. Thi (ean that the Thi (ean that the intr#(ent !ill "intr#(ent !ill "ee "o#ght an$ reol$

"o#ght an$ reol$ i((e$iatel* !ith 're-$e&ine$ 'rice. i((e$iatel* !ith 're-$e&ine$ 'rice. A n#("er o& A n#("er o& "#*er"#*er an$ eller are contracte$3 incl#$ing e/it-"#*er co('riing (otl* o& large an$ eller are contracte$3 incl#$ing e/it-"#*er co('riing (otl* o& large &inancial intit#tion3 in#rance co('anie3 or e/tre(el* !ealth* in$i%i$#al. &inancial intit#tion3 in#rance co('anie3 or e/tre(el* !ealth* in$i%i$#al.

The i#e$ intr#(ent are ne%er ol$ $irectl* to the e/it-"#*er3 "#t to a chain The i#e$ intr#(ent are ne%er ol$ $irectl* to the e/it-"#*er3 "#t to a chain o& client.

o& client. For o"%io# For o"%io# reaon the in%ol%e$ "anreaon the in%ol%e$ "an2 cannot $irectl* 2 cannot $irectl* 'artici'ate'artici'ate in thee tranaction3 "#t are till 'ro&iting &ro( it in$irectl* "* loaning (one* in thee tranaction3 "#t are till 'ro&iting &ro( it in$irectl* "* loaning (one* !ith interet to the tra$er or

!ith interet to the tra$er or client a a client a a line o& cre$it. line o& cre$it. Thi i their lThi i their le%erage.e%erage. F#rther(ore3

F#rther(ore3 the "an2 the "an2 'ro&it &'ro&it &ro( ro( the co((ithe co((iion ion in%ol%e$ in in%ol%e$ in eacheach tranaction.

tranaction.

The client; 'rinci'al $oe not ha%e to "e #e$ &or the tranaction3 a it i onl* The client; 'rinci'al $oe not ha%e to "e #e$ &or the tranaction3 a it i onl* reer%e$ a a co

reer%e$ a a co('enating "alance 0@(irrore$@1 ('enating "alance 0@(irrore$@1 againt thi cre$it line. againt thi cre$it line. ThiThi cre$it line i then

cre$it line i then #e$ to "ac2 #' #e$ to "ac2 #' the ar"itrage tranaction. the ar"itrage tranaction. Since the tra$ingSince the tra$ing i $one a ar"itrage3 the (one* 05cre$it line61 $oen;t ha%e to "e #e$3 "#t it i $one a ar"itrage3 the (one* 05cre$it line61 $oen;t ha%e to "e #e$3 "#t it (#t till "e a%aila"le to "ac2 #' each an$ e%er* tranaction.

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E%en tho#gh the tra$er i in control o& that (one*3 the (one* till cannot "e E%en tho#gh the tra$er i in control o& that (one*3 the (one* till cannot "e 'ent.

'ent. The tra$er nee$ onl* ho! that the (one* i #n$er hi The tra$er nee$ onl* ho! that the (one* i #n$er hi control3 an$ icontrol3 an$ i not "eing #e$ ele!here at the ti(e o& the tranaction.

not "eing #e$ ele!here at the ti(e o& the tranaction.

Thi conce't can

Thi conce't can "e ill#trate$ in the "e ill#trate$ in the &ollo!ing e/a('le. &ollo!ing e/a('le. A#(e *o# areA#(e *o# are o&&ere$ the chance to "#* a car &or 793999 an$ that *o# alo &in$ another o&&ere$ the chance to "#* a car &or 793999 an$ that *o# alo &in$ another "#*er that i !illing to

"#*er that i !illing to "#* it &ro( *o# &"#* it &ro( *o# &or 73999. or 73999. I& the tranaction areI& the tranaction are co('lete$

co('lete$ at the a(e ti(e3 at the a(e ti(e3 then *o# !ill then *o# !ill not "e re#ire$ to not "e re#ire$ to 5'en$6 the5'en$6 the 793999 an$ then

793999 an$ then !ait to recei%e !ait to recei%e the 73999. the 73999. ,er&or(ing the tranaction ,er&or(ing the tranaction atat the a(e ti(e net *

the a(e ti(e net *o# an i((e$iate 'ro&it o# an i((e$iate 'ro&it o& 73999. o& 73999. Ho!e%er3 *o# (#tHo!e%er3 *o# (#t till ha%e that 793999 an$ 'ro%e it i #n$er *o#r control.

till ha%e that 793999 an$ 'ro%e it i #n$er *o#r control.

Ar"itrage tranaction !ith $ico#nte$ "an2 intr#(ent are $one in a i(ilar Ar"itrage tranaction !ith $ico#nte$ "an2 intr#(ent are $one in a i(ilar !a*.

!a*. The in%ol%e$ tra$er ne%er act#allThe in%ol%e$ tra$er ne%er act#all* 'en$ the (one*3 * 'en$ the (one*3 "#t the* (#t "e"#t the* (#t "e in control o& it.

in control o& it. The client; 'rinci'al i reer%e$ $irectl* &or The client; 'rinci'al i reer%e$ $irectl* &or thi3 or in$irectl*thi3 or in$irectl* in or$er &or the tra$er to le%erage a line o& cre$it.

in or$er &or the tra$er to le%erage a line o& cre$it.

Con&#ion i co((on "eca#e (ot ee( to "elie%e that the (one* (#t "e Con&#ion i co((on "eca#e (ot ee( to "elie%e that the (one* (#t "e 'ent in or$er to co('lete the tranaction. E%en tho#gh thi i the tra$itional 'ent in or$er to co('lete the tranaction. E%en tho#gh thi i the tra$itional !a* o& tra$ing - "#* lo! an$ ell high ? an$ alo the co((on !a* to tra$e on !a* o& tra$ing - "#* lo! an$ ell high ? an$ alo the co((on !a* to tra$e on the o'en (ar2et &or ec#ritie an$ "an2 intr#(ent3 it i 'oi"le to et #' the o'en (ar2et &or ec#ritie an$ "an2 intr#(ent3 it i 'oi"le to et #' ar"itrage tranaction i& there i a chain o& contracte$ "#*er.

ar"itrage tranaction i& there i a chain o& contracte$ "#*er.

Thi i !h*

Thi i !h* clientJ &#n$ in clientJ &#n$ in ,ri%ate ,lace(ent ,rogra( ,ri%ate ,lace(ent ,rogra( are al!a* are al!a* a&ea&e !itho#t an* tra$ing ri2.

!itho#t an* tra$ing ri2.

HIGH 4IELD HIGH 4IELD

Co('are$ to the *iel$ &ro( tra$itional in%et(ent3 thee 'rogra( ##all* Co('are$ to the *iel$ &ro( tra$itional in%et(ent3 thee 'rogra( ##all* get a %er* high

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E%en !ith a 'lit o& 'ro&it "et!een the client an$ tra$ing gro#'3 thi till E%en !ith a 'lit o& 'ro&it "et!een the client an$ tra$ing gro#'3 thi till re#lt in

re#lt in a a $o#"le-$igit !ee2l* $o#"le-$igit !ee2l* *iel$. *iel$. Thi Thi e/a('le can e/a('le can till till "e "e een aeen a coner%ati%e3 ince &irt tier tra$ing gro#' can achie%e a (#ch higher ingle coner%ati%e3 ince &irt tier tra$ing gro#' can achie%e a (#ch higher ingle 'rea$ &or each tranaction3 a !ell a a (ar2e$l* higher n#("er o& !ee2l* 'rea$ &or each tranaction3 a !ell a a (ar2e$l* higher n#("er o& !ee2l* tra$e.

tra$e.

CLIENTS CLIENTS

The in%ol%e$ client 0'rogra( client1 are not the en$-"#*er in the chain. The in%ol%e$ client 0'rogra( client1 are not the en$-"#*er in the chain. The act#al real en$-"#*er are &inanciall* trong co('anie !ho are loo2ing The act#al real en$-"#*er are &inanciall* trong co('anie !ho are loo2ing &or a long ter(3 a&e in%et(ent3 li2e 'enion &#n$3 tr#t3 an$ in#rance &or a long ter(3 a&e in%et(ent3 li2e 'enion &#n$3 tr#t3 an$ in#rance co('anie.

co('anie. Beca#e the* are Beca#e the* are nee$e$ a en$-"#*er3 nee$e$ a en$-"#*er3 the* are not the* are not 'er(itte$ to'er(itte$ to 'artici'ate @in-"et!een@ a client.

'artici'ate @in-"et!een@ a client. The client !ho The client !ho 'artici'ate in a ,,O, 'artici'ate in a ,,O, ii <#t an actor in the 'ict#re along !ith (an* other actor 0i#ing "an23 <#t an actor in the 'ict#re along !ith (an* other actor 0i#ing "an23 e/it-"#*er3 "ro2er3 etc.1

"#*er3 "ro2er3 etc.1 !ho "ene&it &ro( !ho "ene&it &ro( thi tra$ing. thi tra$ing. U#all*3 the client U#all*3 the client $oe$oe not interact !ith other in%ol%e$ in the 'roce.

not interact !ith other in%ol%e$ in the 'roce.

PROGRAM STRUCTURE PROGRAM STRUCTURE

Nor(all*3

Nor(all*3 a tra$ing a tra$ing 'rogra( 'rogra( i nothing i nothing (ore (ore than a than a 're-arrange$ "#*ell're-arrange$ "#*ell ar"itrage

ar"itrage tranaction tranaction o& o& $ico#nte$ $ico#nte$ "an2ing "an2ing intr#(ent. intr#(ent. Theoreticall*3 Theoreticall*3 anan client

client !ith !ith a a large a(large a(o#nt o& o#nt o& &#n$ 0on &#n$ 0on the le%el the le%el o& o& 7899-99 USD1 7899-99 USD1 co#l$co#l$ arrange

arrange hi hi o!n o!n 'rogra( 'rogra( "* "* i('le(enting i('le(enting the the "#*ell "#*ell tranaction tranaction &or&or hi(el& ho!e%er3 in thi cae he nee$ to control the entire 'roce3 initiating hi(el& ho!e%er3 in thi cae he nee$ to control the entire 'roce3 initiating contact !ith the "an2 an$ the e/it "#*er at the a(e ti(e.

contact !ith the "an2 an$ the e/it "#*er at the a(e ti(e. Thi i not aThi i not a i('le ta23 coni$ering the retriction in 'lace.

i('le ta23 coni$ering the retriction in 'lace.

For a client

For a client it i (#ch i('ler 0an$ it i (#ch i('ler 0an$ ##all* (ore 'ro&ita"le1 to ##all* (ore 'ro&ita"le1 to enter aenter a

'rogra( !here the tra$er an$ hi tra$ing gro#' ha%e e%er*thing in 'lace 0the 'rogra( !here the tra$er an$ hi tra$ing gro#' ha%e e%er*thing in 'lace 0the

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NON-SOLICITATION AND

NON-SOLICITATION AND NON-DISCLOSUNON-DISCLOSURERE

A a $irect cone#ence o& the ,,O,J en%iron(ent !here thi "#ine ha to A a $irect cone#ence o& the ,,O,J en%iron(ent !here thi "#ine ha to ta2e 'lace3 a

ta2e 'lace3 a non-olicitation non-olicitation agree(ent agree(ent ha to ha to "e trictl* "e trictl* &ollo!e$ "* &ollo!e$ "* allall 'artie in%ol%e$.

'artie in%ol%e$. Thi agree(ent trongl* Thi agree(ent trongl* in&l#ence the !a* in&l#ence the !a* the 'artici'antthe 'artici'ant can

can interact interact !ith !ith each each other. other. So(eti(e So(eti(e non-olicitation non-olicitation agree(ent agree(ent &oter&oter ca( atte('t3 $#e to the &act that at an earl* tage it i o&ten $i&&ic#lt &or the ca( atte('t3 $#e to the &act that at an earl* tage it i o&ten $i&&ic#lt &or the client to recogni=e relia"le o#rce to "e in contact !ith.

client to recogni=e relia"le o#rce to "e in contact !ith.

There i another reaon !h* o &e! e/'erience$ 'eo'le tal2 a"o#t thee There i another reaon !h* o &e! e/'erience$ 'eo'le tal2 a"o#t thee tranaction) %irt#all* e%er* contract in%ol%ing the #e o& thee high-*iel$ tranaction) %irt#all* e%er* contract in%ol%ing the #e o& thee high-*iel$ intr#(ent contain %er* e/'licit non-circ#(%ention an$ non-$iclo#re intr#(ent contain %er* e/'licit non-circ#(%ention an$ non-$iclo#re cla#e &or"i$$ing the contracting 'artie &ro( $ic#ing an* a'ect o& the cla#e &or"i$$ing the contracting 'artie &ro( $ic#ing an* a'ect o& the tranaction &or a 'eci&ie$ n#("er o&

tranaction &or a 'eci&ie$ n#("er o& *ear. *ear. Hence3 it i %er* $i&&ic#lt to loHence3 it i %er* $i&&ic#lt to locatecate e/'erience$ contact !ho are "oth 2no!le$gea"le an$ !illing to tal2 o'enl* e/'erience$ contact !ho are "oth 2no!le$gea"le an$ !illing to tal2 o'enl* a"o#t thi t*'e o& intr#(ent an$ the 'ro&ita"ilit* o& the tranaction in !hich a"o#t thi t*'e o& intr#(ent an$ the 'ro&ita"ilit* o& the tranaction in !hich the* &ig#re.

the* &ig#re. Thi i a Thi i a highl* 'ri%ate "#ine3 highl* 'ri%ate "#ine3 not a$%ertie$ an*!here nornot a$%ertie$ an*!here nor co%ere$ in the 're3 an$ i cloe$ to an*one "#t the "et-connecte$3 (ot co%ere$ in the 're3 an$ i cloe$ to an*one "#t the "et-connecte$3 (ot !ealth* entitie that can co(e &or!ar$ !ith #"tantial cah &#n$.

!ealth* entitie that can co(e &or!ar$ !ith #"tantial cah &#n$.

HOW BANKS AND BROKERS CAN PROFIT HOW BANKS AND BROKERS CAN PROFIT

Ban2 are not allo!e$ to ac

Ban2 are not allo!e$ to act a client in #ch t a client in #ch 'rogra(. 'rogra(. Ho!e%er3 the* areHo!e%er3 the* are a"le to 'ro&it

a"le to 'ro&it in$irectl* in $i&&erent !a*. in$irectl* in $i&&erent !a*. Thi &act 'er(it Thi &act 'er(it o(e 'ri%ateo(e 'ri%ate

"ro2er3 tra$ing gro#'3 an$ client to ta2e 'art in thi 'roce that other!ie "ro2er3 tra$ing gro#'3 an$ client to ta2e 'art in thi 'roce that other!ie !o#l$ "e a "an2ing (atter onl*

!o#l$ "e a "an2ing (atter onl*. . The aet co(ing &ro( The aet co(ing &ro( 'ri%ate client are'ri%ate client are necear* to tart

necear* to tart the 'roce. the 'roce. Thee 'ri%ate3 large &#n$ aThee 'ri%ate3 large &#n$ are the (an$ator*re the (an$ator* re#ire(ent &or the "#*ell tranaction o& "an2ing $e"t intr#(ent.

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PROJECTS PROJECTS

The

The '#r'oe o& '#r'oe o& thi t*'e o& thi t*'e o& tra$ing i tra$ing i to &inance to &inance 'ro<ect3 not 'ro<ect3 not generategenerate

tre(en$o# 'ro&it &or the client. Thee (a* "e &or-'ro&it or non-'ro&it an$ tre(en$o# 'ro&it &or the client. Thee (a* "e &or-'ro&it or non-'ro&it an$ can "e &#n$e$ a a re#lt o& thi tra$ing.

can "e &#n$e$ a a re#lt o& thi tra$ing.

Since

Since thi t*'e thi t*'e o& tra$ing o& tra$ing generate #ch generate #ch large large a(o#nt o& a(o#nt o& (one* on (one* on thethe (ar2et3 (ea#re (#t "e

(ar2et3 (ea#re (#t "e ta2en to 2ee' the in&lation lta2en to 2ee' the in&lation lo!. o!. One !a* to One !a* to $o thi$o thi i to a$<#t the interet rate3 "#t thi ##all*

i to a$<#t the interet rate3 "#t thi ##all* ha little or no e&&ect. ha little or no e&&ect. A "etterA "etter !a*

!a* to (ini(i=e in&lation i to to (ini(i=e in&lation i to let o(e o& the 'ro&it "e #e$ let o(e o& the 'ro&it "e #e$ &or $i&&erent&or $i&&erent 'ro<ect that nee$ &#n$ing3 #ch a re"#il$ing in&ratr#ct#re in region o& the 'ro<ect that nee$ &#n$ing3 #ch a re"#il$ing in&ratr#ct#re in region o& the !orl$ that ha%e e/'erience$ catatro'he or !ar.

!orl$ that ha%e e/'erience$ catatro'he or !ar.

,ROCESS S4NTHESIS ,ROCESS S4NTHESIS

The co('lete 'roce in%ol%ing the i#ing o& $e"t-note3 the ar"itrage The co('lete 'roce in%ol%ing the i#ing o& $e"t-note3 the ar"itrage tranaction3 the 'rogra(3 an$ the 'ro<ect i a re#lt o& co("ine$ (ar2et tranaction3 the 'rogra(3 an$ the 'ro<ect i a re#lt o& co("ine$ (ar2et &orce.

&orce. Ban2 ha%e a Ban2 ha%e a (etho$ o& increaing their (etho$ o& increaing their re%en#e an$ 'ro&it3 clientre%en#e an$ 'ro&it3 client are a"le to &inance $i&&erent %ent#re3 an$ "orro!er are a"le to acce loan are a"le to &inance $i&&erent %ent#re3 an$ "orro!er are a"le to acce loan &#n$.

&#n$. There i a #''l* an$ $e(an$ &or There i a #''l* an$ $e(an$ &or #ch intr#(ent3 an$ a long #ch intr#(ent3 an$ a long a thea the #''l* an$ $e(an$ e/it then alo thi 2in$ o& tra$ing !ill e/it.

#''l* an$ $e(an$ e/it then alo thi 2in$ o& tra$ing !ill e/it.

PROCESS SUMMARY PROCESS SUMMARY

The &ollo!ing i a #((ar* o& the 'roce in%ol%e$ &or entering a ,,O,) The &ollo!ing i a #((ar* o& the 'roce in%ol%e$ &or entering a ,,O,)

A

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A&ter

A&ter the the client client ha ha ent ent hi hi o!n o!n 'a'er!or2 'a'er!or2 0their 0their ,a'ort3 ,a'ort3 ClientClient In&or(ation Sheet3 an$ recent "an2 tate(ent ho!ing cah13 the tra$ing In&or(ation Sheet3 an$ recent "an2 tate(ent ho!ing cah13 the tra$ing gro#' !ill

gro#' !ill in%etigate the a''licant. in%etigate the a''licant. I& the re'one i I& the re'one i 'oiti%e3 the 'rogra('oiti%e3 the 'rogra( (anager in the tra$ing

(anager in the tra$ing gro#' !ill cgro#' !ill contact or (eet !ith ontact or (eet !ith the client. the client. I& theI& the in%etigation i not &a%o#ra"le3 the 'rogra( (anager !ill contact the "ro2er in%etigation i not &a%o#ra"le3 the 'rogra( (anager !ill contact the "ro2er an$ tell hi( that the client $i$ not #ali&*.

an$ tell hi( that the client $i$ not #ali&*.

D#ring

D#ring the the contact contact !ith !ith the the client3 client3 the the tra$er tra$er !ill !ill e/'lain e/'lain the the 'rogra('rogra( ter(con$ition to the client3 an$ o#tline the g#arantee an$ re#ire(ent ter(con$ition to the client3 an$ o#tline the g#arantee an$ re#ire(ent to

to tart tart the the 'rogra(. 'rogra(. The The client client !ill !ill get get intr#ction intr#ction to to o'en o'en a a ne! ne! oleole ignator* "an2 acco#nt at the tra$ing "an2 &or tran&erring the &#n$ there. ignator* "an2 acco#nt at the tra$ing "an2 &or tran&erring the &#n$ there.

The

The client client !ill !ill recei%e recei%e a a contract contract !hich !hich tate tate the the total total gro gro *iel$3 *iel$3 thethe 'ercentage o& the gro 'ro&it reer%e$ &or 'ro<ect3 the 'ercentage &or the 'ercentage o& the gro 'ro&it reer%e$ &or 'ro<ect3 the 'ercentage &or the tra$ing gro#' an$ the 'ercentage &or 'ro&it 'artici'ation &ee to "e $e$#cte$ tra$ing gro#' an$ the 'ercentage &or 'ro&it 'artici'ation &ee to "e $e$#cte$ &or

&or "ro2erinter(e$iarie. "ro2erinter(e$iarie. The net The net ret#rn to ret#rn to the client the client !ill !ill "e "e !ire$ to!ire$ to another acco#nt

another acco#nt that can that can "e loc"e locate$ in ate$ in an* "an2 an* "an2 !orl$!i$e. !orl$!i$e. I& the I& the clientclient acce't the contract3 the contract i igne$ an$ the 'rogra( i rea$* to tart. acce't the contract3 the contract i igne$ an$ the 'rogra( i rea$* to tart.

The tra$er i no! a"le to le%erage the client; reer%e$ (one* 89 ti(e3 an$ i The tra$er i no! a"le to le%erage the client; reer%e$ (one* 89 ti(e3 an$ i no! a"le to "ac2 #' the ar"itrage tranaction !ith that (one*3 a cre$it line no! a"le to "ac2 #' the ar"itrage tranaction !ith that (one*3 a cre$it line that re(ain in the "an2 acco#nt that i creene$ "e&ore each ar"itrage

that re(ain in the "an2 acco#nt that i creene$ "e&ore each ar"itrage tranaction.

tranaction. Tra$ing no! contin#e3 Tra$ing no! contin#e3 an$ the 'ro&it i an$ the 'ro&it i 'ai$ o#t 'er the 'ai$ o#t 'er the contractcontract ter( to the client.

ter( to the client.

The 'rogra( !or2 !ith cah

The 'rogra( !or2 !ith cah onl* or golonl* or gol$ "#llion. $ "#llion. Thi &act (ean that theThi &act (ean that the client

client !ill !ill onl* onl* "e "e acce'te$ !ith acce'te$ !ith li#i$ li#i$ &#n$. &#n$. Recent r#ling Recent r#ling "* "* the the G>9G>9 'rohi"it the #e o& an aet other than cah or gol$ "#llion in a "an2 %a#lt. A 'rohi"it the #e o& an aet other than cah or gol$ "#llion in a "an2 %a#lt. A

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The a''licant client !ill not "e a"le to (eet $irectl* !ith the tra$er in thi The a''licant client !ill not "e a"le to (eet $irectl* !ith the tra$er in thi "#ine.

"#ine. The (ain reaon The (ain reaon !h* there; a "ro!h* there; a "ro2er-inter(e$iar* chain i2er-inter(e$iar* chain i

"eca#e the 'eo'le in the tra$ing gro#' ha%e no ti(e or interet in (eeting "eca#e the 'eo'le in the tra$ing gro#' ha%e no ti(e or interet in (eeting all the 'eo'le !ho are <#t &ihing &or in&or(ation3 an$or !ho &ail to #ali&* all the 'eo'le !ho are <#t &ihing &or in&or(ation3 an$or !ho &ail to #ali&* "eca#e the* $on;t ha%e eno#gh (one*3 or ha%e #ele "an2 intr#(ent. "eca#e the* $on;t ha%e eno#gh (one*3 or ha%e #ele "an2 intr#(ent.

I& *o#;re a #ali&*ing client3 tr#l* connecte$ inter(e$iarie"ro2er ho#l$ "e I& *o#;re a #ali&*ing client3 tr#l* connecte$ inter(e$iarie"ro2er ho#l$ "e a"le to 'lace *o# in

a"le to 'lace *o# in contact !ith a 'er&or(ing tra$ing gro#'. contact !ith a 'er&or(ing tra$ing gro#'. Don;t atte('t toDon;t atte('t to &in$ a tra$er on *o#r o!

&in$ a tra$er on *o#r o!n) n) ot o-calle$ tra$er in ot o-calle$ tra$er in the &inancial !orl$ arethe &inancial !orl$ are not in%ol%e$ in thi 2in$ o& tra$ing an$ are not e$#cate$ to their e/itence. not in%ol%e$ in thi 2in$ o& tra$ing an$ are not e$#cate$ to their e/itence. Thoe

Thoe &e! tra$er !ho are 2ee' a lo! 'ro&il&e! tra$er !ho are 2ee' a lo! 'ro&ile an$ !o#l$ ne%er tal2 !ith ae an$ !o#l$ ne%er tal2 !ith a client !ho han;t "een cleare$. In &act the* cannot #ntil the client 'ae the client !ho han;t "een cleare$. In &act the* cannot #ntil the client 'ae the international 4C 0no! 4o#r C#to(er1 co('liance.

international 4C 0no! 4o#r C#to(er1 co('liance.

When it co(e to cae o& non-'er&or(ance3 the 'ro"le( i ##all* on the When it co(e to cae o& non-'er&or(ance3 the 'ro"le( i ##all* on the client i$e.

client i$e. The client $oen;t #ali&* The client $oen;t #ali&* &or a %ar&or a %ariet* o& reaon he iet* o& reaon he $oen;t ha%e$oen;t ha%e eno#gh (one*3 the "an2 i too (all or i locate$ in the !rong co#ntr*3 he eno#gh (one*3 the "an2 i too (all or i locate$ in the !rong co#ntr*3 he cannot (o%e hi &#n$3 etc.

cannot (o%e hi &#n$3 etc.

O&tenti(e $eal are 2ille$ "eca#e the "ro2er an$or inter(e$iar* $on;t O&tenti(e $eal are 2ille$ "eca#e the "ro2er an$or inter(e$iar* $on;t #n$ertan$

#n$ertan$ the the 'roce3 'roce3 an$ in<ect an$ in<ect the(el%e3 (ore the(el%e3 (ore concerne$ a"o#t concerne$ a"o#t a &eea &ee than a"o#t allo!ing the t!o 'rinci'al 0Client an$ Tra$er1 to interact !itho#t than a"o#t allo!ing the t!o 'rinci'al 0Client an$ Tra$er1 to interact !itho#t

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 The* $ela* the $eli%er* o& $oc#(ent or en$ &a2e or non-con&ir(e$The* $ela* the $eli%er* o& $oc#(ent or en$ &a2e or non-con&ir(e$

$oc#(ent. $oc#(ent.

 Their i$entit* cannot "e con&ir(e$.Their i$entit* cannot "e con&ir(e$.

 The* are "lac2lite$ or #n$er in%etigation.The* are "lac2lite$ or #n$er in%etigation.

Re(e("er that the tra$ing gro#' $oe not ha%e to gi%e an* e/'lanation !h* Re(e("er that the tra$ing gro#' $oe not ha%e to gi%e an* e/'lanation !h* the client $oen;t 'a thro#gh the clearance.

the client $oen;t 'a thro#gh the clearance.

Client ho#l$ #n$ertan$ !hat i re#ire$ to #ali&*) Client ho#l$ #n$ertan$ !hat i re#ire$ to #ali&*)

 A (ini(#( o& 7899 illion EURO or USD in cah locate$ in a (a<orA (ini(#( o& 7899 illion EURO or USD in cah locate$ in a (a<or "an2 in Wetern E#ro'e3 USA3 Cana$a3 Hong ong3 Singa'ore or "an2 in Wetern E#ro'e3 USA3 Cana$a3 Hong ong3 Singa'ore or A#tralia. A$$itionall*3 the (one*

A#tralia. A$$itionall*3 the (one* nee$ to "e tracea"le nee$ to "e tracea"le !ith a non-!ith a non-cri(inal hitor*.

cri(inal hitor*.

 The client3 The client3 or or co('an* co('an* i& i& one one i i re'reente$3 re'reente$3 ho#l$ ho#l$ "e "e clearl*clearl* i$enti&ie$.

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It i $i&&ic#lt &or an* client to en#re that he (eet the right 'eo'le thoe &e! It i $i&&ic#lt &or an* client to en#re that he (eet the right 'eo'le thoe &e! inter(e$iarie an$ "ro2er !ho 2no! the 'roce an$ !ho are !or2ing !ith inter(e$iarie an$ "ro2er !ho 2no! the 'roce an$ !ho are !or2ing !ith a 'er&or(ing tra$ing gro#'.

a 'er&or(ing tra$ing gro#'. The "et he can $o i to The "et he can $o i to e$#cate hi(el& an$ note$#cate hi(el& an$ not "e l#re$ "* thoe !ho c

"e l#re$ "* thoe !ho clai( that their 'rogra( !ill lai( that their 'rogra( !ill gi%e the highet *iel$. gi%e the highet *iel$. HeHe (#t alo

(#t alo "e 'atient3 an$ tr#t the "e 'atient3 an$ tr#t the legiti(ate inter(e$iar* or "ro2er. legiti(ate inter(e$iar* or "ro2er. There iThere i no !a* that the client !ill $irectl* (eet !ith the tra$e gro#' "e&ore he ha no !a* that the client !ill $irectl* (eet !ith the tra$e gro#' "e&ore he ha "een cleare$.

"een cleare$.

I& &or an* reaon the client i $iati&ie$ !ith the "ro2er an$or inter(e$iar*3 I& &or an* reaon the client i $iati&ie$ !ith the "ro2er an$or inter(e$iar*3 then another one can "e o"taine$.

then another one can "e o"taine$.

Thee are o(e o& the (ain ri2 the client can (eet) Thee are o(e o& the (ain ri2 the client can (eet)

 Nothing !ill co(e o#t o& the tra$e no contract an$ no 'ro&it3 <#tNothing !ill co(e o#t o& the tra$e no contract an$ no 'ro&it3 <#t

&r#tration a&ter !ee2(onth o& !aiting. &r#tration a&ter !ee2(onth o& !aiting.

 Client or their inter(e$iarie an$or "ro2er are @ho''ing aro#n$@Client or their inter(e$iarie an$or "ro2er are @ho''ing aro#n$@ !ith client $oc#(ent3 !hich ooner or later !ill re#lt in "lac2liting. !ith client $oc#(ent3 !hich ooner or later !ill re#lt in "lac2liting.

 The client i tol$ that he (#t (o%e hi &#n$ o#t o& hi o!n control toThe client i tol$ that he (#t (o%e hi &#n$ o#t o& hi o!n control to an ecro! acco#nt3 etc.

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hol$er3 or !hate%er.

hol$er3 or !hate%er. An$ ince #ch An$ ince #ch 'oition cannot "e 'oition cannot "e %eri&ie$ 0at the &irt%eri&ie$ 0at the &irt tage13 #ch title can "e (eaningle a een &ro( the client; 'oint o& %ie!. tage13 #ch title can "e (eaningle a een &ro( the client; 'oint o& %ie!.

There i al(ot al!a* a chain o& tra$ing gro#'3 a "ro2er an$ inter(e$iar*3 There i al(ot al!a* a chain o& tra$ing gro#'3 a "ro2er an$ inter(e$iar*3 an$

an$ client. client. Thi Thi i i &or &or t!o t!o reaon. reaon. Firtl*3 Firtl*3 tra$ing tra$ing gro#'3 gro#'3 "ro2er3 "ro2er3 an$an$ inter(e$iarie are not allo!e$ to olicit the Client (#t tart "* a2ing &or inter(e$iarie are not allo!e$ to olicit the Client (#t tart "* a2ing &or in&or(ation.

in&or(ation.

Secon$l*3 thi 'rotect all 'artie in%ol%e$ !ith the tra$ing gro#'. Bro2er Secon$l*3 thi 'rotect all 'artie in%ol%e$ !ith the tra$ing gro#'. Bro2er (a*

(a* !or2 thro#gh !or2 thro#gh e%eral inter(e$iarie3 e%eral inter(e$iarie3 an$ %ice an$ %ice %era inter(e$iarie. %era inter(e$iarie. AA chain o& (ore than one or t!o inter(e$iarie connecte$ $irectl* "et!een the chain o& (ore than one or t!o inter(e$iarie connecte$ $irectl* "et!een the t!o ,rinci'al3 in general3 i not acce'ta"le to o(e 'rogra( 'ro%i$er.

t!o ,rinci'al3 in general3 i not acce'ta"le to o(e 'rogra( 'ro%i$er.

A

A goo$ goo$ "ro2er "ro2er ho#l$ ho#l$ alo alo creen the creen the 'otential client3 'otential client3 &iltering the &iltering the (ot(ot 'ro(iing a''licant an$ at the a(e ti(e collecting &ro( the( the 'ro'er 'ro(iing a''licant an$ at the a(e ti(e collecting &ro( the( the 'ro'er $oc#(entation.

$oc#(entation. In thi In thi !a*3 the tra$ing !a*3 the tra$ing gro#' recei%e !or2a"lgro#' recei%e !or2a"lee $oc#(entation &ro( the "ro2er.

$oc#(entation &ro( the "ro2er.

The (ot co((on ri2 or 'ro"le( that a "ro2er3 an inter(e$iar* or a The (ot co((on ri2 or 'ro"le( that a "ro2er3 an inter(e$iar* or a &acilitator can (eet !ith in thi "#ine are)

&acilitator can (eet !ith in thi "#ine are)

 The* (a* nee$ to in%etigate $o=en o& client "e&ore &in$ing a #ali&ie$The* (a* nee$ to in%etigate $o=en o& client "e&ore &in$ing a #ali&ie$ a''licant.

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Fro( ti(e to ti(e *o# (a* hear a"o#t ca( 0or 'otential ca(1 in the High Fro( ti(e to ti(e *o# (a* hear a"o#t ca( 0or 'otential ca(1 in the High 4iel$ In%et(ent ,rogra( arena.

4iel$ In%et(ent ,rogra( arena. One o& the coOne o& the con$ition that &acilitate ca(n$ition that &acilitate ca( in thi "#ine i $#e (ainl* to the non-olicitation en%iron(ent an$ the in thi "#ine i $#e (ainl* to the non-olicitation en%iron(ent an$ the 'ri%ate a''roach re#ire$ that &orce in&or(ation to re(ain a '#re

'ri%ate a''roach re#ire$ that &orce in&or(ation to re(ain a '#re !hi'ere$ goi' rea$* to

!hi'ere$ goi' rea$* to "e e/'ree$ alo#$ at an* "e e/'ree$ alo#$ at an* ti(e. ti(e. That &act &acilitateThat &act &acilitate a $i&&#e le%el o& ignorance in thi (atter !here ca((er are in their

a $i&&#e le%el o& ignorance in thi (atter !here ca((er are in their ele(ent.

ele(ent.

,oi"le ca( incl#$e) ,oi"le ca( incl#$e)

 The inter(e$iar* a2 &or #'-&ront &ee 0in a real it#ation no one !illThe inter(e$iar* a2 &or #'-&ront &ee 0in a real it#ation no one !ill a2 &or #'-&ront &ee to the client1.

a2 &or #'-&ront &ee to the client1.

 4o# are a2e$ to tran&er the (one* into an ecro! acco#nt not in &#ll4o# are a2e$ to tran&er the (one* into an ecro! acco#nt not in &#ll control o& the client.

control o& the client.

 4o# are a2e$ to "#* a "an2 intr#(ent againt the &#n$ to tart the4o# are a2e$ to "#* a "an2 intr#(ent againt the &#n$ to tart the 'rogra( 0that later !ill "e $ico%ere$ to "e o& no %al#e1.

'rogra( 0that later !ill "e $ico%ere$ to "e o& no %al#e1.

 4o# are a2e$ to 'ool the &#n$ together !ith other little client.4o# are a2e$ to 'ool the &#n$ together !ith other little client.

The internet i no! &#ll o& $i&&erent (one*-(a2ing o''ort#nitie that 'ro(ie The internet i no! &#ll o& $i&&erent (one*-(a2ing o''ort#nitie that 'ro(ie

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It i the !riterJ o'inion that la!*er an$ acco#ntant are engage$ to er%e a It i the !riterJ o'inion that la!*er an$ acco#ntant are engage$ to er%e a 'eo'le !ho e/ec#te agree(ent or &inancial re'ort "et!een the 'rinci'al in 'eo'le !ho e/ec#te agree(ent or &inancial re'ort "et!een the 'rinci'al in #''ort o& the clientJ "#ine $eciion (a$e "et!een t!o 'artie. In (ot #''ort o& the clientJ "#ine $eciion (a$e "et!een t!o 'artie. In (ot general cae3 their a$%ice i olicite$3 ho!e%er3 it i rare to &in$ an attorne* general cae3 their a$%ice i olicite$3 ho!e%er3 it i rare to &in$ an attorne* !ho i inti(atel* &a(iliar !ith ,,O,J. A a re#lt3 al(ot al!a*3 the client i !ho i inti(atel* &a(iliar !ith ,,O,J. A a re#lt3 al(ot al!a*3 the client i 'oorl*

'oorl* a$%ie$ a$%ie$ "* "* 'racticing 'racticing attorne*J attorne*J !ho !ho are are not not #&&icientl* #&&icientl* e$#cate$ ine$#cate$ in thi arena. Wo#l$ *o# go to a 'o$iatrit to get a$%ice on ha%ing "rain #rger* thi arena. Wo#l$ *o# go to a 'o$iatrit to get a$%ice on ha%ing "rain #rger* Too o&ten3 "eca#e o& their !ell-$eer%e$ achie%e(ent to "eco(e a legal or Too o&ten3 "eca#e o& their !ell-$eer%e$ achie%e(ent to "eco(e a legal or acco#nting

acco#nting 'ro&eional3 'ro&eional3 the* are the* are a$$itionall* a$$itionall* a2e$ to a2e$ to g#i$e an$ g#i$e an$ $irect the$irect the clientJ $eciion. Whilt the* are traine$ 'ro&eional in their re'ecti%e clientJ $eciion. Whilt the* are traine$ 'ro&eional in their re'ecti%e &iel$3 the* are not the one !ho ho#l$ "e in charge o& or $irect the clientJ &iel$3 the* are not the one !ho ho#l$ "e in charge o& or $irect the clientJ #lti(ate "#ine $eciion. A a re#lt3 t*'icall* ill-a$%ie$ in'#t co(e &ro( a #lti(ate "#ine $eciion. A a re#lt3 t*'icall* ill-a$%ie$ in'#t co(e &ro( a lac2 o& #n$ertan$ing in thi arena3 an$ (an* client !ho other!ie !o#l$ lac2 o& #n$ertan$ing in thi arena3 an$ (an* client !ho other!ie !o#l$ ha%e "ene&ite$ !ell are tol$ to ta* a!a* "* their a$%iorJ. E%en tho#gh the* ha%e "ene&ite$ !ell are tol$ to ta* a!a* "* their a$%iorJ. E%en tho#gh the* !ill

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O"%io#l*3 it !o#l$ not "e a goo$ i$ea to re%eal e%er*thing regar$ing thi t*'e O"%io#l*3 it !o#l$ not "e a goo$ i$ea to re%eal e%er*thing regar$ing thi t*'e o& tra$ing in thi !riting3 or on an* other '#"lic con&erence or &or#(. Thi o& tra$ing in thi !riting3 or on an* other '#"lic con&erence or &or#(. Thi 2in$ o& tra$ing can onl* contin#e "eca#e it i #n2no!n to the '#"lic an$ 2in$ o& tra$ing can onl* contin#e "eca#e it i #n2no!n to the '#"lic an$ tra$itional

tra$itional client. client. The The 'ro&eional in 'ro&eional in thi thi "#ine "#ine (#t (#t "e "e e/tre(el*e/tre(el* ca#tio# !hen it co(e to haring in&or(ation.

ca#tio# !hen it co(e to haring in&or(ation.

Learn an$ #n$ertan$ (onetar* hitor* an$ "an2ing3 an$ it !ill "eco(e clear Learn an$ #n$ertan$ (onetar* hitor* an$ "an2ing3 an$ it !ill "eco(e clear !h* thi t*'e o& tra$ing can ? an$ $oe ? !or2.