Private Placements Programs.Everything you wanted to know.2015-

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Private Placements Programs

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Madr d a w y ers.and . econ o m s s @ g m a .c o m London F P riv a te P l ace m en t P r o g r a ms / ( P PP )/ H i g h Y i e ld I n v e stm e n t P r o g r a ms(Hyi p ) 1 . - U n derstand i ng T r a d i ng P l a tforms. 2 . - P roc e dures to enter i n to P r i vate P l acement P rograms. 3 . - U n dertand i ng the H i gh P rof i ts. 4 . -A t i p i cal scenar i o of a P r i v ate B u y - S e l l P rogram. 5 . - E xp l a n ota r y N otes about P r i v ate P l acements P rograms. 6 . - P rogram Feautu e s. 7 . -The most common reason w hy In v estors are not ab l e to enter i nto P r i v ate P l acement P rograms. 8 . - Legal and E c o nom i c I nform a t i on to U n derstand P r i vate P l acem e nt P rograms and B a nk i ng L a w . 9 . -Legal A d v i ce 10 . - D o w n l aod our free e -bo o k “ H o w to i n v e st i n P r i v ate P l acement P rograms ( 50 pages ) f rom our w e b . + + ++ A l l P rograms are guaranteed b y the t rader ban k ++++ © l a w y ers . and . econom i sts. E d i t i on Janua r y 2015 i l i t i l

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PRI V A T E A ND C ONF I D E N T IAL W e are one of t he f i rst econom i sts and l a w y ers f i rm sp e c i a li z i ng i n the f i nanc i al secto r , ma i n l y i n P r i v ate P l acements P rograms. O v er f i fteen y ea r s of exper i ence ba c k us w hen i t comes to w o r k i ng i n a ser i ous, w e l l -organ i zed w a y , and ab o v e a l l w h e n i t comes to pr o v i d i ng the customer w it h the greatest t ran s paren c y and eff i c i en c y . T h e i n v e stor w il l rece i v e a mont h l y report f rom one of the most prest i g i ous aud i t i ng f i rms i n the w o r l d ( P r i c e w a terhous e C ooper- P w C , D e l o i t te or E rnst & Y ou n g- E Y ) w h i ch w il l f u l l y det a i l a l l t ransact i ons made b y the t rader and the pro f i t dr i ven i n ea c h one of them. Cl i ents en jo y s pr i v il eged d i rect ac c ess t o four (4) of the seven ( 7 ) l argest L i cenc e d T r a ders and t rade p l a t forms i n the w o r l d . The s e are the preem i nent T raders and t rade p l a tforms i n the bus i ness; h i gh l y sk i ll ed and supreme l y qua l i f i ed, w it h a l l the necessa r y approva l s, L i cenc e d and re g i strat i ons – and the musc l e and “ f i rep o w er” – to get the j ob done. T h e P r i v ate P l acement P rograms or H i gh Y i e l d I nvestment P rograms, are p r i v ate programs based on the purchase / sa l e of bank f i nanc i al i nstruments ( ma i n l y MT N s). T h ese i nstruments are bought fresh-cut w it h a s i g n i f i cant d i sco u nt on the i r face v a l ue to then be reso l d a t a h i gher p r i ce i n the seconda r y marke t . T h e d i f ference be t w een the sa l e pr i ce and t he purchase p r i ce i s t he t rader /i nvestors ga i n. These programs are o f fered to c li ents w i th h i gh spend i ng p o w e r and can on l y be executed b y T r a ders w i th a l i cen s e to car r y out su c h operat i ons. A n i mportant part of the returns are dest i ned t o human i ta r i an causes and to the f i nanc i ng of bus i ness pro j ect s . Therefore, a n y i n s t i t u t i on takes precede n ce on t h i s t y p e o f operat i on. Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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T R A D I N G P R OG R A M OVE R VIEW 1. U N DE R S T A ND I N G P L A TF O R M T R A D I NG . P l atform t rad i ng u t i l i zes the expert i se of qua l i f i ed traders w h o are ca p ab l e of engag i ng i n the purchase and sa l e o f i n v estment- grade ba n k debentures i n the w h o l esa l e marke t . The t rad i ng opera t i on i s norm a l l y r e ferred to as "contr o ll ed" or "managed" ba n k debenture t rad i ng bec a use the supp l y s i de of the f i nanc i al i nstruments and t he “ex i t b u y er” for t he f i nanc i al i ns t ruments have a l rea d y been pr e -arrang e d, and the pr i ce of the i nstruments a l rea d y contracted f o r , there b y en s ur i ng that the f i nanc i al i nstruments w i l l be so l d to the s t i pu l ated “ex i t b u y e r” at a pre-agreed h i gher p r i ce. H ence, each and e v e r y com p l eted trade contractua l l y guarantees a net pro f i t to the trader (and never a net l oss ) . I t ’ s a l egal arb i trage, i s a ll ! T r a ders, for t he i r pa r t, norm a l l y t rade aga i nst a non-dep l e t i ng, t rad e ab l e l i ne-o f -cred i t estab l i shed on be h a l f of the c l i ent. That's because traders, un d er present ru l es, can't use th e i r o w n as s ets to t rade aga i nst. A nd w h ere do e s the trader's l i nes-of-cred i t come f rom? W e l l , traders are not mag i c i ans; th e y can't con j ure up mon e y out o f t h i n a i r . For th i s , traders w o r k w it h standard banks that o f fer cred i t fac i l i t i es. N o surp r i ses ther e . Th e se cred i t- i ssu i ng banks, though, i mpose s tr i ct requ i rements on borr o w i n g , most notab l y that cred i t li nes must be "c a p i ta li zed" b y an acceptab l e f o rm of co ll ater a l he l d i n the “care, custo d y and contro l ” of the cred i t - i ssu i ng fac i l i t y . H ence, the need f o r t rade p l atforms to i mp l ement exact i ng proc e dures w h i ch fu l l y sa t i s f y the cred i t- i ss u i ng bank's "care, custo d y and contro l " standard for ac t i v at i ng cred i t l i nes and the requ i rement that i nterested c li ents comp l y fu l l y ther e w i th. P ROC E DU R E S T O E N T E R IN T O P RI V A T E P L A C E M E NT P ROG R A M S P ROG R A M S ROG R A M S ( PPP ) o r H i gh Y i e l d I n v estment P rograms, 1 . - P ersona li zed A n a l y s i s and A s se s sment O u r team of econom i sts and l a w y ers w i l l at a l l t i mes be respons i b l e for a d v i s i ng the c l i ent i n a deta il ed and persona li zed manne r . D ep e nd i ng on t he c li ents assets, ea c h case w il l be stud i ed i ndep e ndent l y and the best w ay t o proceed w il l be propo s ed w i th Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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the k e y i nten t i on of comp l e t i ng the opera t i on suc c essfu l l y . A d v i ce at a l l stages of the proc e ss: From the exp l anat i on of t h i s k i nd of f i nanc i a l opportun i t y and h o w y i e l ds r i se t o the requ i red bank i ng and corporate do c umenta t i on th a t the c li ent shou l d pro v i de to be l ater presented at the T r aders O f f i ce. P oss i b i l i t y of car r y in g out a n y k i nd of face meet i ng i n M adr i d ( S pa i n) o r , i f not poss i b l e, t r a v e li ng to the c i t y w h ere the i nvestor i s . Th i s l ast opt i on w il l be a v a il ab l e depend i ng on the character i s t i cs of the c l i ents assets. 2 . - S ubm i ss i on of D o c umenta t i on T h e c li ent must pro v i de a l l requ i red documentat i on for the subm i ss i on of the operat i on at the T raders off i ce: * S et C omp li ance: A f ter the i n i t i al contact w i th the c l i ent and after s tu d y i ng the v i ab il i t y o f the opera t i on, the c li ent w i l l be pro v i d e d w it h the comp li ance set ( S e t o f documents) for i ts proper comp l e t i on and s i gnature. For greater ef f i c i en c y and ea s e, our f i r m w il l comp l ete 9 0 % of t he comp li ance set so the c l i ent w i l l s i mp l y need to re v i e w i t and proceed to s i gn i t . * P assport: D I N - A 4 s i ze and i n a n y of the f o ll o w i ng format s : PD F , J P G , B M P or P * A s set: The P roof of Funds and a l l bank docum e nts must be manua l l y s i gned b y t w o bank of f i c i a l s current l y i n charge of the c li ent's account. E l ectron i c s i gnatures w il l not be accepted. I n the case of docum e nts req u i r i ng a v er i f i ca t i on b y the E uroc l ear s y s t em / D T CC , i t w i l l be i mperat i ve to pr i nt the 12 pages. I MP O R T A N T : W e do not accept a n y k i nd of procedure that proh i b i ts a l l t e l epho n e ca ll s f rom bank to bank, s i nce t h i s i s nece s sa r y to ver i f y and ensure th a t w e are dea li ng w i th a real s i gner of the ac c ount and th a t funds and / or assets are not ob j ect of " l eas i ng". � 3 . - D üe D i l i gen c e and A s s et V er i f i cat i on: O nce the operat i on i s subm i t ted at t he T rader's of f i ce, w e w il l i m med i ate l y proceed to the v e r i f i ca t i on of the assets and the rea l i zat i on of the " D üe D i l i ge n ce" ( under stu d y f o r accepta n ce) of the c li ent and the subm i t ted assets. T h e c l i ent must not be connected w i th the ma f i a, drug t raf f i c, w e apons, or a n y other i ll egal ac t i v i t y . A l so, the asset must be good, c l ea r , c l ean, w it h a non-c r i m i nal o r i g i n and must be free l y ava i l ab l e for the custome r . 4 . - A va il ab l e O p t i ons to b l ock t he A s sets: T h e in v estor w il l have t o ch o ose one of the t w o f o ll o w i ng a v a il ab l e opt i ons to b l ock the as s ets: * S w i ft M T -799 and M T - 760: T h e c li ent's bank i ssues a S w i ft M T - 799 p r i or not i ce and a S w i ft M T -760 l ock to the bank t he T ra d er appo i nts on the contrac t . T h e rec i p i ent of t he M T -760 w i l l be " the T r a der's C ompa n y " . T h i s op t i on i mp l i es a h i gher cost f or the c l i ent, but i t i s the c l ass i c one bec a use i t i s more comfo r tab l e for the T r a de r . * A d m i n i str a t i ve H o l d – I nternal B l ock: The c li ent author i zes the T rader as a Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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s i gnato r y to i n d i st i nc i n t l y mana g e the acc o unt w h ere the resources are dep o s i ted, w i th the E X C E P T IO N of t ransfer i ng funds f rom the accoun t . T h e T r ader's i nter v e n t i on at the c l i ent's bank w il l be so l e l y and exc l us i v e l y to request a l e t ter t o b l ock the amount of i nvested funds. The c l i ent i s the on l y s i gnato r y a ll o w ed to move funds. Th i s op t i on i s m o re econom i cal for the c l i ent, s i nce i t a v o i ds the cost of S w i f t i ssuance and the t i me l oss that bureaucrat i c proc e dures i mp l y . Th i s i s opt i on i s on l y po s s i b l e i f the c l i ent's acco u nt i s a corporate acc o unt. I n th i s case, the i nvestor i ssues a corporate reso l u t i on f or the trade r , a l l o w i ng h i m t o mana g e the acc o unt as the f i nanc i al d i rector of the compa n y . The corporate reso l u t i on must be notar i zed and h i s bank has to accept i n w r i t i ng (s i gned b y t w o bank of f i cers) the trader as account s i gnato r y . The c l i ent i nstructs to h i s bank i nterna l l y th a t the t rader i s not author i zed t o mak i ng a n y t ransfers from the account, so t hat the c li ent can be sure that h i s funds w i l l never be moved. The f unds are not used as co l l atera l , th e y are not m o v ed. * I ssu i ng of a B ank G uarante e : I f the c li ent do not w a n t to have the t rader w o r k i ng f rom th e i r account (or i f i t's a pr i vate and not a corporate account), or for those w h o don't w a nt to b l ock the i r f unds, t here i s s t i l l the poss i b i l i t y that th e y m i ght i n s truct th e i r bank to i ssue a B G w i th the t rader's compa n y as be n e f i c i a r y , a n d h a v e t h i s B G conf i rmed b y s w i ft MT 799 and b l ocked b y MT 760, sent to the t rader's bank. There i s not r i sk f o r the c li en t . * T ransfer the Fu n ds: T h e c l i ent t ransfer the f unds t o the t rader's acc o unt and he w il l rece i ve a B a nk G uarantee f or the same amount to protect and guaranteed the funds. T h e c l i ent sends a s w i ft 103 / 23 and rece i v ed a B G f rom the trade r . When the c li ent rece i ves the B G and h i s bank check the bg , the c li ent re l ease the s w i ft 103 / 23. S o there i s not r i sk f or the c li en t . * E uroc l ear / D T C C : The in v estor w i l l have to subm i t a l l t he euroc l ear pages. T h i s op t i on w il l be a v a il ab l e on l y i f there i s not a n y k i nd of re s tr i c t i ons of commun i ca t i on w i th the bank. M ust be poss i b l e the total commun i cat i on be t w e en bank off i cer s . I f there i s a n y k i nd of rest r i ct i ons t h i s op t i on w il l not be ava i l ab l e. 5 . - P rogram M an a ger C ontact O nce the pr e v i ous i nqu i res are suc c essfu l l y comp l eted, w it h i n a max i mum o f 48-72 hours, the P rogram M a n ager or the T r ader w i l l contact t he c l i ent d i rec t l y b y phone. T h e a i m of t h i s ca l l , i n add i t i on to the P rogram M an a ger's f ormal presentat i on, i s to i n form t he k i nd of program the c li ent w il l h a v e access to, the pro f i tab i li t i es, and a l so to agree on the d i fferent po s s i b l e w a y s to b l ock the assets. 6 . - S i gnature T rad i ng C o ntract A fter t he c li ent and the P rogram Manager agree on t he b l ock i ng w ay and c l ar i f y eve r y poss i b l e ma t ter that m a y ar i se on the co n v ersat i on, the c li ent w i l l be o ffered s e v e r al op t i ons to s i gn t he T rad i ng A g r eement: O p t i on 1 . - S i gn i ng t he T rad i ng C ontract v i a ema i l and l ate r , w hen the s i gn i ng f or the open i ng of the customer's acco u nt takes p l ace, the ra t i f i ca t i on of t he T rad i ng A g r eement w i l l be perfo r med before the T ra d e r . (Fast opt i on) O p t i on 2 . - T h e c li ent and the T rader agree d a y and t i me to s i gn the T r ad i ng C o ntract i n Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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person. (Th i s opt i on i s not ava il a b l e f o r a l l cases s i nce i t w il l depend on the character i s t i cs of the subm i t ted assets). * N ote: A u d i ted F i na n c i a l O pera t i on: T h e i n v e stor w il l rece i v e a mont h l y report f rom one of the most pres t i g i ous aud i t i ng f i r ms i n the w o r l d ( P r i c e w aterhouse C o oper- P w C , D e l o i tte or E rnst & Y oung - E Y ) w h i ch w il l f u l l y deta i l a l l t ransact i ons made b y the t rader and the pro f i t d r i v en i n each one of them. U N D E R S T A N D I N G T H E H IGH P R O F ITS I n genera l , t hese programs ( P r i vate i nvestment programs- PP P and B u y – S e l l T r a d i ng P rograms) get a ve r y h i gh pr o f i t compared t o the common be n e f i t ava i l ab l e to t rad i t i onal i nvestments M ost peop l e do not be li eve that a y i e l d of 50% to 100% a w eek i s poss i b l e. I t i s more a prob l em of kn o w l edge o f t he w o r k programs and l ack o f exper i ence i n t rad i ng w it h f i nanc i al i nstruments and espec i a l l y understa n d i ng o f h o w t he f i nanc i a l s y s t em w o r k and h o w mon e y i s created. S uppo s e a l e v erage of 10:1, w h i ch means that the t rader i s ab l e to make a co p y of each sa l e t rans a c t i on w it h 10 t i mes the amount of mon e y t he i nvestor has i n h i s bank account. Let's s a y the i nvestor has 20 M il l i on E uros, so the T rader i s ab l e to w o r k w i th 200M E uros. N o w l e t's assume t hat the T rader i s ab l e to make a purc h ase and sa l e transact i ons per d a y for 4 d a y s a w e e k f or 40 bank i ng w e e ks, and that t he benef i t i s 1 0 % for each sa l e t rans a c t i on. That makes 1 0 % x 4 = 4 0 % , and the m u l t i p li er effect o f t he ga i n w i l l be 10 t i mes h i ghe r , that i s t o s a y 40 0 % per w ee k . T h en, t h i s r e turn w il l be d i v i d e d be t w een the i n v e stor and the T r ader or T rad i ng G roup, but the f i nal net return to i nvestors w i l l rem a i n a doub l e-d i g i t w ee k l y performanc e ! A l s o note that the ab o v e examp l e can s t i l l be cons i dered conse r v at i v e bec a use, t he l e v er a ge can be h i ghe r , the t rader can get a much l arger m a rg i n for each transact i on , and a l so a h i gher number of transact i ons w i l l i mpr o v e the f i nal perfo r man c e. W e un d erstand th a t these returns m a y seem h i gh, but that i s because w e are compar i ng t hem w it h t rad i t i onal i nvestmen t . Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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Madr d a w y ers.and . econ o m s s @ g m a .c o m London Ex i t B u y er ' s Bank that t hey a r e bo t h p r epa r ed to c o mm ence the contracted ser i es of b. The T rade r ' s Ba n k f o r w a rds to the I ssu i ng B a nk a PO F i n the n a m e o f the T rader and i l i t i l A T ypical Scenar i o of a P riva t e B u y /Sell T rading P r ogr a m . a. T he T rad e r ' s Bank c o m m un i cates w i th t he I s s u i ng Bank as we l l as w i th t he E x i t B u y er ' s B a nk, o bta i n i ng a deta i l ed ag r e e m ent w i th the I s su i ng Ba n k O f f i c e r a nd w i th the T ransact i ons. The E x i t B u y er ' s Ba n k f o r w a r ds a PO F to t he T rad e r ' s Bank for t he a m o u nt o f the f i rst p u r chase o f $100M ( Note - W hen a PO F has been is sued for the Ex i t B u y er and f o r w a r ded to the T rader ' s B a nk, t he r e i s a l egal F und i ng C o m m i t m e nt to c o m p l ete t hat T ransact i on, w hi ch m a y N O T be r evoked wh il e the transact i on i s tak i ng p l ace). r eques t s that a MTN be i s s ued i n the n a m e of the T rade r , a l ong w i th a n Invo i ce at a d i sco u nted pr i c e, s a y for ex a m p l e on l y $97M, p a y a b l e i n 8 H ours. c. A co p y o f t he N ote and an i nvo i ce at $97M, i s fo r w arded to the T rader ' s Bank, wh i c h au t hent i ca t es s i gna t u r es and MTN te r m s to ver i fy c o m p li ance w i th the P u r chase C ontract. d. The T rade r ' s Bank then fo r w a r ds t he copy o f the MTN, a l ong w i th a Cond i t i onal A ss i g n m ent o f the MTN, to the Ex i t B u y er ' s Bank, a l ong w i th a n Invo i ce at t he Ex i t B u y er ' s P u r chase Contract P r i ce, $100M for ex a m p l e purpos e s, payab l e i n 4 h ours. e. The Ex i t B u y er ' s Bank au t hent i cates s i gna t u r es, ve r i f i es c o m p li ance w i t h the P u r chase C ontract, and p a y s the $100M Invo i ce pr i ce to the T rade r ' s Bank f o r c r ed i t to T rad e r ' s account, w i th i n t he 4 h our l i m i t. f. The T rad e r ' s B a nk p ays I s su i ng Ba n k ' s I nvo i c e for $97M w i th i n the 8 hour l i m i t, a l ong w i th in struct i ons f o r the O r i g i nal MTN to be s e nt to the E x i t b uyer ' s B a nk b y cour i e r . g. T he T rad e r ' s Bank d e b i ts the T rader a B a nk F ee (1 / 4 % f o r e xa m p l e p urposes) for the i r Serv i ces Re n de r ed, and f o r w a rds the ba l ance, $100M m in us $97M m in us 1 / 4 %, to the T rade r , w h o p ays the T rader ' s ' Assoc i ate' for the i r Ser v i ce R ende r ed. h. The P r o cedu r e u sed for th i s e xa m p l e, typ i c a l l y takes p l ace 4 t i m es each d a y of a 4 b us i ness d ay w e e k, and r epeats u nt i l the T rader ' s P u r chase Contract i s c o m p l eted. U s i ng th i s fo r m u l a, the w e ek l y p a y m ents to t he 'A ssoc i at e ' , w o u l d be e q ual to 2 2 % o f t he i r PO F a m o u nt. (3% per transact i on x 4 per day x 4 d a y s per w e ek = 48% - 4% as B a nk F e e = 4 4 % / 2 = 2 2 % = $22M per w e e k) N ote: The O perat i on d e sc r i bed above i s a ve r y conservat i ve one. T he r e a r e other MTN T rade O pera t i o n s, of the s a m e MTN bas i s b ut i nvo l v i ng a r esa l e of the MTNs b y t he ' Ex i t B u y er ' , w hi ch have a h i gher Rate of Return to t he T rader i nvo l ved, a nd t he re f o r e an even h i gher p a y m ent to t he 'A ssoc i at e ' i nvo l ved. A n e x p e r i en c ed A ssoc i ate can s afe l y state t hat w i th the li sted p r ocedu r e and cont r o l s for the T ra n sact i ons, the on l y r eason f o r a T ransact i on f a ili ng, once c o mm enced, wo ul d be for the Ex i t B u y er ' s Bank to d e f au l t on c o m p l et i ng a contrac t ed p u r chase of a Note, wh i ch w o u l d r esu l t i n a jeopardy to the i r B a nk Charte r . S hou l d a ny d e f au l t take p l ace, i t w o u l d be qu i te s i m p l e for the T rader to m a ke t he r equ i r ed P a y m ent, us i ng the i r o w n F un d s, to c o m p l ete the i r p u r chase o f the I nstr u m ent, a n d to i mm ed i ate l y se l l i t to a d i f fe r ent contracted Ex i t B u y e r . Th i s act i on by t he T rader e l i m i nates a ny r is k of l oss b y the B u y ers a n d E x i t B u y ers a nd ' A s soc i a t e ' .

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EXP L A N A T O R Y N OTES 1. PRE F E R RE D T R A NS A C T IO NS . What w e are l ook i ng fo r , p r i nc i pa l l y , i s t h i s: ( i ) Cl i ents w h o are i nformed, soph i st i cated, mot i v ated, dec i s i ve, resp e c t ful and cooperat i ve, and w ho h a v e fu l l o w n ersh i p and control over the i r cap i ta l ; ( i i ) l arge- sca l e cash funds or ba n k i nstruments on l y , P referab l y M i n i mum 1-10 M i l li on E uros or thereabouts and ( i i i ) stra i gh t fo r w ard, uncomp li cated fact s i tua t i ons . . N o h i stor i cal i n s truments, N o L T N s, N o CM O s , N o I B O E s, N o gr a y / b l ue scre e n or "restr i cted- access" i n terba n k screen t ran s act i ons. N o hard assets. N o commer c i al secur i t i e s . N o deve l op i ng co u nt r i es "sovere i gn" i nstruments( E xcept V enezue l an B onds ) . N o government funds. P r i v ate i n v e stors o n l y . 2. A C C EP T E D C OU N T R IE S /B A N K S . W e are ab l e to operate the W or l d P rograms i n most countr i es i n the w or l d – w it h the except i on o f M a i n l and C h i na and those nat i ons sub j ect to t rade embargo or deemed state spo n sors of terro r i sm. O ur preference, cert a i n l y , i s t hat the c li en t ’ s assets be h e l d i n a branch o f a m a j o r , i n ternat i onal bank ( U . S ./ W estern E urop e an ban k s and the l i ke). W e can, though, i n ma n y i nstances, w o r k w i th estab li shed nat i ona l / reg i onal banks. G ood ba n ks w i th S W IF T capab il i t y i n R uss i a, E astern E urope, the M i dd l e E ast and A s i a, f o r examp l e. 3. B L O CK I N G/ RE S E R V I N G A S S E T S . The t rade p l a tforms h a v e a var i e t y of means at th e i r d i sposal f or b l ock i ng / reser v i ng the c li en t ’ s cash fund / bank i n s truments for t rad i ng purpos e s, dep e nd i ng on the nature of the transact i on. From use of a S W I FT G uarante e , t o “ i nternal b l ock i ng” of the c l i ent ’ s assets w i thout S W I F T ’ s. The t rade p l a tforms w il l t r y to accommo d ate the c l i ent ’ s preferences as best t h e y can. T h at sa i d, c l i ents w o u l d be w e l l -ad v i s ed not to t i e the p l atfo r m traders’ hands undu l y b y l i m i t i ng w h at procedures are acc e ptab l e . 4. C A S H F U N D S . T h e c li ent must be the l egal o w ner of cash f unds he l d on depos i t . E arned funds from l eg i t i mate bus i ne s s ac t i v i t i es or funds acqu i red v i a l egal i nhe r i tance. N o l eased, borr o w e d , encumbered, or “pr e -b l ocked” f unds. O r funds that have been ass i gn e d or p l edged to the c l i ent. O r funds res t r i cted for use, non- t ransferab l e or othe r w i se non- t ran s actab l e. 5. B A N K I N S T R U M E N T S . W e can u t ili ze bank i nstruments i n tra d i ng – C ert i f i cates of D epos i t, B a nk G uarantees, Letters o f C red i t , etc. - de p end i ng on the c i rcumstances surround i ng the i r i ssuance. A n d w e can, i n certa i n i n s tan c es, w o rk w i th i nstruments acqu i red b y the c l i ent from a t h i rd-par t y ; s a y , for examp l e , t o fac i l i tate pro j ect fund i n g . T h e c li en t , though, mu s t be w i l l i ng to fu l l y d i sc l ose t he c i rcumstanc e s surround i ng the i ssuance of t he bank i nstrumen t , i nc l ud i ng the pres e nce o f a n y terms or cond i t i ons a f fect i ng the i nstrumen t ’ s use. A nd t he t h i rd-par t y ( w h o w il l need t o c l ear “comp l i ance”) must be w il li ng to ass i st the t ran s ac t i on as nec e ssa r y . Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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6. A S S I S T I N G C ON SU L T A N TS W I TH B A N K I N G , E T C . W e can, i n certa i n i nstances, d i rect l y ass i st C o n su l tants w it h th e i r bank i ng, he l p i ng them t o open acc o unts i n one of the W estern E ur o pean banks w e w o rk c l ose l y w i t h . A l ternat i v e l y , w e can pro v i de C onsu l tants w i th ac c ess to an i ndepe n dent l a w y er / P a y m aster w h o can set up bank accounts, arrange o f f-shore compan i es and trusts and o f fer tax p l ann i ng as requ i red.  NO PRO J ECT OBL I G A T I ONS. T h ere are no form a l pro j ect requ i rements. Cli e nt s , thou g h, a re e n c our a g e d to ut i li z e th e ir P rog r a m ea r n ings to fi n a n c e v i a b l e a nd s u s t a i n a b l e bu s i n e s s ex p a ns i on and commerc i al and human i tar i an pro j ects that promote econom i c gr o w th and i mpr o v e qua li t y of l i f e . P RO G R A M F E A T UR E S  M U L T I PLE T R A D E P L A T FOR M S. C li ents en jo y s p r i v il eged acc e ss to four(4) of t he seven (7) l argest T ra d ers / trade p l a t forms i n the w o r l d. Th e se are t he preem i nent T r a ders / trade p l a tforms i n the bus i ness; h i gh l y s k ill ed and supreme l y qua l i f i ed, w i th a l l the nec e ssa r y approva l s and reg i s trat i ons – and the musc l e and “ f i rep o w er” – to get the j ob do n e.  " ONE- T O- O NE" P L A T FORM T R A DING. C li ents are offered an unpara ll e l ed opportun i t y to w o rk d i rect l y w it h a m a j or T r ader / trade p l atfo r m w it hout a medd l esome “trade group” i n terpos e d be t w een the par t i es, b l ock i ng access.  A W I DE R A NGE OF P R OG R A M OPPORT U NIT I E S . Mu l t i p l e T aders / trade p l a t forms means m u l t i p l e program opportun i t i es. G reater se l ec t i on. M ore f l e x i b i l i t y . S tandard program opportun i t i es - but a l so t a il o r -made o f fer i ngs, custom-des i gned b y the p l a tform traders to sat i s f y t he c li en t ’ s spec i f i c requ i rements  HIGH-Y I ELD PR O G R A M E A R NNGS. The P rogram offers c li ents a ttract i v e, h i g h y i e l d r e turns; t hese are earn i ngs re a li zed from p l a f torm trad i ng of i nvestmen t -grade bank debenture i ns t ruments. D i scuss i ons regard i ng y i e l d amounts are best l e ft to d i rect t a l ks be t w een the c li ent and the t rade p l atform that ac c epts the transact i on.  CL I ENTS N EEDN’T T R A NSFER THE I R A S S ETS. T h e trade p l atforms u t i l i ze a v a r i e t y of procedural means at the i r d i sposal to “b l ock / rese r v e” the c l i ent ’ s p r i nc i pal f or t rad i ng purposes. From use o f a S W I FT G uarantee, to “ i ntern a l b l ock i ng” of the c l i ent ’ s as s ets w it hout S W I F T ’ s. Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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 " BU Y -SELL" T R A DING OUT OF CL I ENT ’ S A C COUN T . W e can a l so, i n certa i n i n s tan c es, arrange for the T rader t o engage i n “b u y - se l l ” bank debenture t rad i ng, together w it h the c li en t , d i rec t l y out o f the c li ent's o w n acc o unt, w it h the c li ent ab l e to mon i tor the trad i ng ac t i v i t y on h i s account at a l l t i me s .  N O P R O J ECT O BL I G A T IONS. There are no f ormal pro j ect requ i rements. Cli e nt s , though, a re e n c o ur a g e d to ut i li z e th e ir Progr a m ea r n ings to fi n a n c e v i a b l e a nd s u s t a i n a b l e bu s i n e s s e x p a ns i on and commer c i al and human i ta r i an pro j ects t hat promote econom i c gr o w t h and i m p r o v e qua l i t y o f l i fe.  P R OG R A M TER M . P r i n c i pa l l y one y e a r (“fo r t y trad i ng w e e k”) programs, w it h extens i ons; but w e a l so offe r , sub j ect to ava il a b il i t y , “short-term” programs – a l one or i n comb i nat i on w i th l ong-te r m program opportun i t i es. N o res t r i c t i ons on re-ent r y .  A D V A N CE C A S H P A Y M ENTS. W e can, i n certa i n i nstances, re i mburse the c li ent out of the cred i t l i ne for the cost o f a n y S W I F T ’ s and / or perm i t l i m i ted dr a w -d o w n s ( U p to 2% ) aga i nst the l i ne-of-cre d i t shou l d the c li ent requ i re an i mmed i ate ca s h p a y m ent.  DISTRIBUT IO N OF P ROG R A M E A R NINGS. T r a d i ng t y p i ca l l y takes p l ace f i v e ( 5 ) d a y s a w e e k , M ond a y thru Fr i d a y . P a y o uts are norma l l y made b i - w e ek l y v i a S W I F T . A l l t ransfers of earn i ngs w il l be made w it h f u l l c l earan c es and appr o v a l s.  P R OF I T - RECE I V I N G A C COUNTS. W e can ass i st c li ents w it h bank i ng to rece i v e p a y m ent of the i r P rogram procee d s. K e e p i n m i nd that mo s t banks w il l not rece i ve l a rge cash depos i ts due to st r i ct bank cap i t a li za t i on requ i rements.  P R OTECTED C O M M ISS I ON STRUCT U RE. T h e P rogram w i l l arrange and protect, as fees f or C onsu l tants / I ntermed i ar i es / B rokers, be t w e en (5 % -1 0 % ) percent of the c l i ent's earn i ngs, p a y a b l e t o C on s u l tants /I n termed i ar i es / B rokers v i a S W IF T . A N on- C i rcumvent i o n , N on- D i sc l osure & Fee A g r eement i s ava il ab l e upon reques t . W e can a l so ass i st C on s u l tants /I n termed i ar i es / B rokers w it h t he i r bank i ng; or pr o v i de C onsu l tants w i th ac c ess to an i ndepe n dent l a w y er / P a y m aster ser v i c e. Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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Madr d a w y ers.and . econ o m s s @ g m a .c o m London r e as on s i l i t i l T HE M OST CO MM ON R E A SONS W HY IN V ES T ORS A R E N E VER A B L E T O EN T ER IN T O A PRI V A T E P L A CE M ENT PROG R A M : Th e m o st c o mm o n r e a s o n s w h y i n v es t o rs a re n e v er a bl e to e n ter in t o tra di n g a r e: 1- Th e y c on t a ct w i th p e o p l e w h o s a y s t h e y a r e “t h e pl atf o rm” a n d o f c ou r s e t h at ´s fa l se o r i n m o st c as e s t h e y h a v e c on tact w i th “ A n in te r me di a r y P l atf o rm”, w h at i s d i ffee n t to a T ra d i n g P l atf o rm o r a T ra d e r . Th e tra din g pl atf o rm o r t h e T ra d er O ff i ce n e v er c on tact w i th c li e n ts. Th at i s no t i ts bu s in ess . T h e f i rst p ers o n w h o c on tact w i t h t h e c li e n t i s t h e P r o g r a m M a n a g er fr o m t h e T r a d er O ff i ce af t er t h e op erat io n i s s ub m i tte d . 2- Th e y do n ʼ t h a v e e n o ug h m on e y o r t h e y h a v e bo u gh t / l e a sed a P OF/ BG w i ch i s i n E u r o c l ear o r D T C bu t i n f act t h e y d o no t h a v e t h e m on e y a n d o f c ou rse t h e y can n o t i n v e st w h at t h e y d o n o t h a v e . 3- Th e y do n ʼ t h a v e t h e m on e y i n an “ac c e p ta b l e” b a n k. Th e y h a v e t h e m on e y i n a o ffs h o re b a n k t h at don ´t a ll o w t h e v e r i f i cat i o n “ b a n k to b a n k” o r i n a b a n k t h at i s no t r e c o gni zed f o r a n y b a n k a u t ho r i t y . 4- Th e y do n ʼ t h a v e f u l l c on tr o l o f t h e m on e y ( o r t h e a sset), be ca u se t h e y re n te d , l eased t h e in str u me n t a n d o f c our se t h ey d o no t h a v e t h e r igh t to blo ck t h e m on e y o r t h e in str u me n t. Th e y c a n ´t i ss u e a S w i ft M T - 7 60 b eca u se t h e y a r e n ´t t h e o w n er o f t h e a sset. 5- Th e y do n ʼ t h a v e a goo d ex pl a n at i o n f r o m t h e o r ig i n o f t h e m on e y , so t hi s k i n d o f m on e y i s no t v a l i d to e n ter t h e p r og r a m. Th e m on e y m u st b e c l ea n , c l e a r a n d n o n cr i m in al o r ig i n . 6- Th e y h a v e n ´t w o r ka bl e a sse t s. M o st o f t h e c as e s t h e a s sets a r e no t go o d f o r tra di n g b eca u se t h e y a r e no t b a n ked fr o m a real b a n k, t h at i s to s a y t h e y are ju st i n a s e c u r i t y hou se bu t t h ey d o no t h a v e an S K R f r o m t h e b a n k. I t´s n o t in c o r po rated i n t h e Fin a n c i al Ba n k in g S y stem. 7- Th e y try to p r o ceed a cc o r di n g to t h e i r o w n r ul es a n d t hi s i s no t t h e w ay to e n ter i n Pr i v ate P l a c eme n t P r og ram . T h e r ul es a n d p r o ce du res a re set f o r t h e t r a d er a n d a r e t h e s a me f o r e v e r yb od y , so i f t h e in v est o r c an no t c o m p l y / acc o m pli sh t hi s r ul es , t h e i n v est o r c an no t p art i c ip ate i n t hi s f in a n c i al o p o rt uni t y . 8- Th e y d o no t f ol l o w t h e re qui red p r o ce du r e : ( 8 . 1 - P re s e n tat i o n o f do c um e n tat i on. 8 . 2- D u e D i l lig e n ce. 8 . 3-P r ese n tat io n o f t h e Pr og ram Ma n a g er a n d B lo ck in g a s set a g re e me n t. 8 . 4-S ub m i ss o n o f t h e tra di n g p re-c on tract. 8 . 5- Pr e se n tat i o n o f t h e t ra d er a n d s ig n in g t h e T ra d in g C on tract. 9- Th e y d o no t c oll a b or ate e noug h w i th t h e T ra d er o r t h e T ra d i n g G r ou p . 10- Th e c li e n t h as an as s et t h at d o n ´t a l l o w t h e v e r i f i cat io n b a n k to b a n k 1 1- T h e y d e l a y t h e d e l i v e r y o f d o c u me n ts o r se n d non - c on f i rmed do c um e n ts. 12- Th e y a re i n a “B l a c k Li st” o r und er i n v est i g at io n . T h ese a re t h e m a i n w h y a po te n t i al c li e n t can no t p ass c o m pli a n ce o r D u e D il l ig e n ce a n d w i l l no t b e a bl e to e n t er i n to t ra d i n g . Th ese a re t h e m a i n r e as on s t h at e v e r y o n e m u st u nd ers t a n d a n d b e a bl e to c o m pl y w i th i n o r d er to p ass c o m pli a n ce a n d e n ter in t o tra di n g .

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P RO C E D U R E S T O E N T E R I N T O P R I V A T E P L A C E M E N T P R OG R A M S 1.- P e r s on a l i z e d A n a l y s i s a n d A s se s s m e n t O ur t eam of e c ono m is t s a n d l a w y ers w ill at a l l t i m es b e r espon s ib l e f or ad v ising t he c lient in a de ta iled a nd pers o nali z ed man n e r . De p end i ng on t he cl i en t s as s e t s , each ca s e w ill b e s t udi e d i nd e pen d en t l y a nd t he best w a y t o p roce e d w ill b e p ropo s ed w i t h t he k e y in te n t ion of c omp l e t ing t he ope r a t ion success f u l l y . Ad v ice at a ll s t ages of t he p rocess: F rom t he e x plana ti on of t his k i nd of f i n anc i al o ppor t u n i t y a nd h o w y i elds rise t o t he r eq u ired ban k ing a n d c orpora t e do c umen t a t i o n t hat t he cli e nt s h ould p r o v ide t o be la t er pre s en t ed at th e T r aders O f f ice. Pos s ib i li t y of car r y ing out a n y ki n d of f ace mee t i n g i n Madr i d ( S pain) o r , if not p ossi b le, t ra v eli n g t o t he ci t y w here t he in v es t or i s. T his l ast op ti on w ill be a v aila b le d epe n di n g o n th e c h arac t eris t ics of th e c lien t s asse t s. 2 . - S u b m i s s i o n o f D o c u me n t a t i o n T he c l ient must p r o v ide a ll req u ired do c umen t a t i o n f or t he sub m ission of t he o pera t i o n at t he T r a ders o f f ice: * S e t C o m p l i a n c e : A ft er th e i ni t i a l c on t act w i t h th e c lient a n d a ft er s t u d y ing th e v iab i li t y of t he o p era t ion, t he c li e nt w ill be p r o v id e d w i t h t he c omp l iance set (Set of d ocumen t s) f or i t s p r oper com p le t ion a n d s igna t u r e. F or grea t er e f f ic i en c y a nd ea s e, o ur f irm w ill co m ple t e 9 0 % of t he comp l ian c e set so t he cli e nt w ill si m p l y ne e d t o re v i e w it and p r oceed t o sign i t . * P a s s p o r t : D I N-A4 si z e a nd in a n y of t he fo llo w ing f orma t s: P D F , JP G , BMP or P N G . * A s s e t : T he Pr o of of Fu nds and a l l bank do c umen t s must b e m anu a l l y sig n ed b y t w o b ank o f f ici a ls cur r en t l y in cha r ge of t he c l ien t 's acco u n t . Elec t ro n ic s igna t u r es w ill n ot b e ac c ep t ed. I n t he case of docu m en t s r e qui r ing a veri f i c a t ion b y t he E uroc l ear s y s t e m / D T CC, it w ill b e impe r a t i v e t o p r int th e 1 2 p ages. I MP O R T AN T : We do not ac c ept a n y k ind of proc e dure t hat p r oh i bi t s a ll t el e pho n e c a lls f rom b ank t o b ank, s ince t his is neces s a r y t o v eri f y a n d e nsure t hat w e are d e ali n g w i t h a real s i gner of t he ac c ount a nd t hat f u n ds a nd / or asse t s are not ob j ect of " l easi n g". * J o i n t V e n t u r e A g re e m e n t : Just a s w i t h th e SET Co m pl i ance, w hen t he pr o per t ime co m es, t he cl i ent w e w ill pro v ided w i t h t he " C ommerc i al A greem e n t ", t hat i s d e t ermin e d a nd ma n aged b y t he I CC 600. 3 . - D ü e D i l i g e n c e a n d A s s e t V e r i f i c a t io n : Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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O nce t he o p era t ion is s u bmi tt ed at t he T r a der's o f f ice, w e w ill i mme d ia t e l y pro c eed t o t he v eri f ica t ion of t he a sse t s a nd t he rea l iza t ion of t he " D üe D i l ig e nce" (u n der s t u d y f or acc e p t ance) of t he c l ient and t he sub m i t t ed as s e t s . T he cl i ent must not be c o nnec t ed w i t h t he ma fi a, dr u g t ra f f ic, w eapons, o r a n y o t her i l leg a l a c t i v i t y . A lso, t he as s et must be g o od, c l ea r , cl e an, w i t h a n on-c r imin a l o ri g in a nd must b e f ree l y a v ai l able f or t he cus t ome r . 4 . - Av a il a b l e Op t i o n s t o b l o c k t h e As s e t s : T he i n v es t or w ill h a v e t o c hoose o ne of t he t w o f ol l o w ing a v a i la b le o p t ions t o b l ock t he as s e t s : * S w i f t M T - 7 9 9 a n d M T - 7 6 0 : T he cli e n t 's b ank issues a S w i f t M T -7 9 9 p rior no t i c e a nd a S w i f t M T - 7 60 lock t o t he bank t he T r a der a pp o in t s o n t he c on t rac t . T he re c ip i ent of t he M T -7 6 0 w ill b e "t he T ra d er's C om p a n y " . Th is o p t ion i m plies a h igher cost f or th e c lien t , b ut it is t he clas s ic o ne bec a use it i s m ore c om f or t able f or t he T r ade r . * A d m i n i s t rat i v e Hol d – I n ter n a l B l o c k : T he c l ient au t ho r izes th e T rader as a s igna t o r y t o i n d is t incin t l y m a nage t he acc o unt w here t he res o urces a re de p osi t ed, w i t h th e E X C E P TI O N o f t r a n s f er in g f u n d s f r o m t h e a c c o u n t . T he T r ader's i n t e r v en t i o n at t he cl i en t 's b ank w ill be s o le l y a n d e x clusi v e l y t o r e quest a l e tt er t o b lock t he amo u nt of i n v e s t ed f u n ds. T he c l ient i s th e o n l y si g na t o r y a l l o w ed t o m o v e f u n ds. T his o p t ion is more ec o nomic a l f or t he c l ien t , s i nce it a v oids t he cost of S w i f t i ssuan c e a nd t he t i m e l oss t hat b ureauc r a t ic p roce d ures i mp l y . T his is op t i o n i s o n l y p ossi b le if t he c l ien t 's acco u nt is a cor p ora t e a ccoun t . I n t his case, t he in v es t or i ssues a corpo r a t e re s olu ti on f or t he t rade r , a llo w ing h im t o m a nage t he acc o unt as t he f i n anci a l d irec t or of th e co m pa n y . T he c orpora t e re s olu t i o n m ust be n o t arized a n d h is b ank has t o accept in w ri t ing (si g ned b y t w o bank o f f icers) t he t rader as acc o unt s igna t o r y . T he c li e nt i n s t ruc t s t o h is bank i n t erna l l y th at t he t rader is not au t ho r ized t o ma k ing a n y t rans f ers f rom th e a ccoun t , s o t hat t he cli e nt c a n b e s ure t hat h is f u n ds w ill n e v er be mo v ed. T he f unds are n ot us e d a s c olla t e r al, t h e y a r e n ot mo v ed. * I s s u i n g o f a B a n k G u a r a n t e e : I f t he c li e nt do n ot w ant t o ha v e t he t rader w o rki n g f rom t heir ac c ount ( or if i t 's a pri v a t e a nd n ot a co r pora t e acc o un t ), or f or t ho s e w ho d o n't w ant t o b l ock t h e ir fu nds, t he r e i s s ti ll t he p ossi b ili t y t hat t h e y m i ght i ns t ruct t h e ir b ank t o i ssue a BG w i t h t he t rade r 's co m pa n y as b e ne f icia r y , and h a v e t his BG c on f irmed b y s w i f t MT 7 99 and b locked b y MT 7 60, sent t o t he t rader's b a nk. T he r e i s n ot risk f or t he cli e n t . * T r a n sfe r t h e F u n d s : T he c l ient t rans f er t he f u n ds t o t he t rader's acc o unt a nd he w ill re c ei v e a Bank G uar a n t ee f or t he same a m ount t o p r o t ect a n d g uaran te ed t he f u n ds. T he c l ient sends a s w i f t 103 / 23 a nd recei v ed a BG f rom th e t ra d e r . W he n t he cli e nt re c ei v es t he BG a nd his b a nk c h eck th e b g , t he cli e nt r e lease t he s w i f t 103 / 23. So Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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t he r e i s n ot risk f or t he cli e n t . * E u r o c l e a r / D T C C : T he i n v es t or w ill h a v e t o s ubmit a l l t he e urocl e ar p ages. T his o p t ion w ill be a v ail a ble o n l y if t he r e i s n ot a n y k ind of r es t ric t ions of c ommuni c a t ion w i t h t he b ank. Must be pos s ib l e t he t o t al comm u nica t i o n b e t w een b ank o f f icers. I f th ere i s a n y k ind of r es t ric t ions t his op ti on w ill n ot b e a v a i lab l e. 5 . - P r o g r a m M a n a g e r C o n t a c t O nce t he pre v ious i n qui r es a r e s uccess f ul l y co m ple t ed, w i t hin a m a x imum of 48- 7 2 h ours, t he Pr o gram Man a ger w ill c on t act t he c l ient direc t l y b y p h one. T he aim of th is c a ll, i n ad d i t ion t o t he P r ogram Ma n ager's f ormal pre s en t a t ion, is t o i n f orm th e k ind of p r ogram t he cl i ent w ill h a v e access t o, t he pro f i ta bi l i t ies, a nd also t o agr e e o n th e d i f f erent p ossi b le w a y s t o block t he asse t s 6 . - S i gn at u r e T r a d in g C o n t r a c t A ft er th e c lient a n d t he Pr o gram M ana g er a gree o n t he b locki n g w a y and c l ari f y e v e r y p ossi b le ma tt er t hat m a y arise o n t he c o n v ersa t i o n, t he cl i ent w ill b e o f f ered se v eral op ti ons t o s ign t he T ra d ing A greem e n t : O p t io n 1 . - Si g ning t he T r a ding C on t ract v ia e ma i l a nd la t e r , w h en t he si g ning f or t he o pe n ing of t he cus t o m er's a ccount t akes p la c e, t he ra t i f ica t i o n of t he T r a ding Ag r eement w ill be per f or m ed be f ore t he T ra d e r . ( F ast op ti on) O p t io n 2 . - T he cli e nt a nd th e T rader ag r ee d a y a n d t ime t o si g n t he T r adi n g C on t ract i n pers o n. ( T his op ti on i s n ot a v ai l ab l e f or a l l c ases since it w ill de p end on t he c h arac t eris t ics of t he s u bmi tt ed a sse t s). * N o t e : A u di t ed F in a nci a l O pe r a t io n : T he in v es t or w ill rec e i v e a mon t h l y r e port f rom one of t he most pres t i g ious a u di t ing f irms in t he w orld w hich w ill f ul l y de ta il all t ran s ac t ions m a de b y t he t r a der and t he pro f it dri v en i n each o ne of t hem. Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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L eg a l and Econo m ic I n f orma t ion t o U n ders t and P r i v a t e P l acement Pr o grams a nd B a nki n g L a w I n t erna t i on a l B ank i ng L a w & R eg u l a t i on, 2014 A u t hor(s ) : C en t er f or I n t erna t i onal Legal S t ud i es A n i n t erna t i on a l t eam of recogn i z ed exper t s i n 60 j ur i s d i c t i ons crea t e a c o mprehen s i ve resource on i n t erna t i o n al ban k i ng l a w and r eg u l a t i on. T h ese spec i a li s t s e x p l ore: l oc a l regu l a t o r y bod i es and t he bank i n g s y s t em; char t er i ng or l i cens i ng of banks wi t h i n t he j ur i s d i c t i on; r eg u l a t o r y and superv i s o r y ru l es f or banks; bank i ng r e f orm l e g i s l a t i on enac t ed t o f ac ili t a t e changes or re s t ruc t u r i n g; i n t erna t i o n al harmon i za t i o n e f f o r t s t o w a r ds t he po t en t i a l i n t erna t i on a l convergence of bank super v i so r y s t andards and l oc a l recogn i t i o n o f i n t erna t i on a l bank i ng s t andards. I n t erna t i on a l B ank i ng R eg u l a t i on, L a w P o li c y & P rac t i ce b y : G eorge Al e x a nder W a l ker W i t h t he cre a ti on of a s i n g l e g l ob a l m a rket i n f i nanc i a l serv i ces, t he e f f ec t i ve regu l a t i on of banks at t he i n t erna t i onal l evel has become essen t i a l . T h i s w ork o f f ers a comprehens i ve exam i na t i on of t he dev e l opment and s t ruc t ure of t he current prov i s i ons f o r t he con t rol of i n t erna t i on a l f i nanc i a l m a rke t s. I t e x p l ores t he backgro u nd t o t he r ecent ma j or f i nanc i a l c r i ses and t he na t ure o f t he g l obal response, be g i n n i ng w it h t he co ll a pse of t he B r e tt on Wo ods s y s t em of managed e x ch a nge r a t es and t he r esu l ti ng es t ab li shment of t he B as e l C omm it t ee on B an k i ng S uperv i s i on i n 1974. T h e au t hor descr i bes t he s t ruc t ure and opera t i on of t he C omm it t ee and e x am i n es bo t h t he con t ent o f i t s c o re superv i so r y papers and t he deve l opment of i t s more gener a l regu l a t o r y p rogramme. B ank G uaran t ees i n I n t erna t i on a l T rade R oe l and F . B er t r a ms T h i s hand b ook i s a c o mprehen s i ve s t u d y o f t he l egal and prac t i c a l aspec t s of bank guaran t ees and s t an db y l e t t ers of cred i t and o f f ers p rac t i t i o n ers i n i n t ern a ti onal t rade l a w t he mo s t comp l e t e ana l y s i s o f bank i ng l a w i n t he f i e l d. T h i s f ou r t h ed i ti on ana l y ses n e w deve l o pmen t s i n l e gal w r i t i n g f rom var i ous coun t r i es t o sh o w h o w t he prac t i cal ap p li ca t i ons o f guaran t ees have es t ab li s h ed a n e w pa t t ern of l a w . Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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W i t h a t ransna t i onal perspe c t i v e, t h i s ana l y s i s covers t he f o ll o w i ng su b j ec t s and m uch e l se: T y pes of guaran t ees ( t ende r , per f o r mance, ma i n t enance, rep a y m en t , r e t en t i o n ) ; P a y ment mechan i sms ( f i rst demand, t h i rd-pa r t y documen t s, arb i t ral or court dec i s i o n ) ; R i sks and nego t i a t i ons, dra f t i n g and c l auses; B ank guaran t ees as a f i nanc i al serv i ce, t he ban k ’ s perspec t i ve; Forma t i on, en f o rcea b i l i t y of e x p i r y da t e s , ass i gnment and t r ans f er; D ema n d f or p a y ment and t he ru l e o f s t r i ct comp li a nce; Fraud and res t ra i n i ng orders; A p p li c a b l e l a w and j ur i s d i c t i on. T h i s rem a rka b l e book can be used i n bo t h c i v i l and co m mon l a w j ur i sd i c ti ons and has been c i t ed as an au t hor i t a t i ve source of l a w i n several j ur i s d i c t i ons f r o m each s y s t e m . B el ow we have l i s t ed var i ous acro n y m s , phrases, and o t her un i que t e r m s wh i ch are co mm o n l y used i n t he pr i va t e p l a c e m e n t c o m m u n i t y . Sc r o l l d o w n , it ’ s a l ong page, but i t w il l prove i nva l u ab l e i n y o u r j o urn e y t o success! PR I V A TE P LACE M ENT K E Y TERMS B CL (Ba n k C o m fort L e tter ) : A l e t t er wr it t en b y a bank o f f i c er on beh a l f of a cus t o m e r , a tt es t i ng t o t he curre n t ba l a n ce and good s t and i ng of an a c count ho l de r . BG (Bank G uarantee): A bank i ns t r u m e n t , guara n t ee i ng a ce r t a i n face va l u e for an i n v es t o r , w h i l e co l l e c ti ng an annual i n t erest before exp i r i ng upon m a t ur i t y . C D (Cert i f i cate o f D e pos i t): A f i nanc i al product o f fered b y banks t o account ho l ders who Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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agree t o l eave t he i r funds on dep o s i t for a pre - def i ned pe r i od. T h i s a l l o w s i n v es t ors t o co l l ect a h i gher annual i n t eres t , w h i l e secur i ng t he i r m o n e y i n a l ow r i sk ven t ure. C IS ( C l i ent I n f o r m at i on S heet): O ne of t he c o m p li a n ce doc u m e n t s t y p i c a l l y requ i red for pr i va t e p l a c e m ent progr a m s. T h i s doc u m e nt a sks for bas i c i nfor m a t i on such as t he con t a c t de t a i l s, and li n e of bus i ness t he app l i ca n t i s i n. D TC (Depos i to r y T rust & C l ear i ng Corporat i on): D T CC prov i des c l ear i ng, se tt l e m e n t and i nfor m a t i on serv i c es for equ i t i es, bonds, secur it i es, m o n e y m ar k et i ns t r u m en t s and ov e r - t h e- coun t er der i va t i ves. T h i s m e d i um i s used i n pr i va t e p l ac e m ent progra m s t o t r ansfer / ass i gn a s se t s t o a t ra d e r , fr o m an i nves t o r . F P A ( F ee P r otect i on Ag r e e m e nt): A n o f f i c i al docu m ent ou tli n i ng a l l fees due t o i n t e r m ed i a r i es upon t he co m p l e ti on of t ransac ti on. T h i s i s cr i ti c a l for a n y pr i v a t e p l ac e m ent broker t o unders t and, and u t i li ze. JV (Jo i nt V entu r e ) : A n agre e m ent be t ween t wo en ti t i es ou t l i n i ng c o m pensa ti on, fees, and t he ob li g a ti ons of bo t h par t i es i n re l a t i on t o a s pe c i f i c b u s i ness ven t u r e. T h i s i s t he m o s t c o m m o n l egal s t ruc t ure for pr i va t e p l a c e m ent progr a m s. KY C ( K n o w y o ur C li ent ) : In s o m e cases, t h i s fo r m w il l subs tit u t e for t he c li e n t i nfo r m a ti on s he e t . Just li ke t he CI S , i t reques t s con t a ct de t a i l s and o t her re l a t ed i nfo r m a ti on. A l so, t h i s phrase i s used when referr i ng t o t he “ K now y o u r C l i en t ” l a w , wh i ch m a n y i nves t m e nt m a rke t s enforce. It s t a t es t h a t y ou m ust know y o u r c l i ent we ll , and un l e s s de c e i ved, y o u can i ncur ce r t a i n li a b il i ti es for fu t ure prob l e m a ti c ac t i ons of t he c l i en t . L O I (L e tter of Intent ) : A l e t t er prov i ded b y i nves t ors i n t e r es t ed i n a pr i va t e p l a ce m e n t progra m s, def i n i ng t he i r unso li c i t ed i n t erest t o en t er t he i nves t m ent t ransac t i on. T h i s docu m ent can a l so be used for areas ou t s i de of pr i va t e p l a c e m e n t , espec i a l l y w here s o l i c i t a ti on l aws app l y . L TV (Loan to V a l ue ) : T h i s i s t he l oan v a l ue t h a t a ban k /l ender w il l prov i de af t er eva l u a ti ng an asse t s wor t h. U sua ll y , t h i s i s u sed for hard /i l li qu i d a s se t s, and i s s t a t ed i n % i n re l a ti on t o t he asse t ’ s appra i sal va l ue ( L oan / Appra i sal V a l ue = L T V %). MTN (Med iu m T e r m Note ) : A t rada b l e and d i scoun t ab l e debt i ns t ru m e n t i ssued b y banks, co ll e c ti ng an annual i n t e r est before exp i r i ng upon m a t ur it y w it h a s pe c i f i ed face va l ue. N C N D (Non-C i rc u m v en ti on, N on-D i sc l osure Agre e m e n t ): An agre e m e n t be t ween t wo par t i es def i n i ng t he boundar i es and l i mit a ti ons of t h e i r re l a ti onsh i p. T y p i c a l l y , t h i s agr ee m e n t i s used b y pr i va t e p l a c e m ent brokers t o “ p ro t ec t ” from fu t ure c i rc u m v en ti on. PO F (Proof of Fun d s): T he process of a ll ow i ng ano t her i nd i v i d u al t o t e m pora r i l y s how y o ur a s se t s as t he i r own, w it h t h e fee dependent upon t he t i m e i t ’ s u t i li z ed. A l so, t h i s phrase can refer t o a bank s t a t e m en t , or o t her f i n anc i a l doc u m e n t , prov i ng t he asse t s of a prospec t i ve i nves t o r . PP M (Pr i va t e P l ac e m e nt M e m orand u m ): A fo r m a l descr i p t i on of an i n v es tm ent oppor t un i t y w h i ch i s cre a t ed t o co m p l y w it h var i ous feder a l secur i ti es regu l a ti ons. T h i s ou tli nes a l l de t a i l s Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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of t he “ pr i va t e p l ac e m en t ” o f fered, as we l l t he ob l i ga t i ons of bo t h par t i es i nvo l ved. PP P ( P r i vate P l ac e m ent P r ogr a m ) : A pr i v a t e i nves t m ent program wh i ch t rades d i scoun t ed bank i ns t r u m e n t s ( M T N / B G ) for prof i t i n t he seconda r y m ar k e t . R W A (R e a d y , W il l i ng, and A b l e ) : Phrase used b y pr i v a t e p l a c e m e n t brokers conf i r mi ng t h e read i ness of an i n v es t or t o sa ti s f y requ i r e m e n t s, and m ore forward w it h an oppor t u n i t y . T h i s s t a t e m e nt can a l so be m a de i n t he fo r m of a docu m e n t , wh i ch so m e progra m s m a y requ i re.SB L C(S t andard b y l e tt er of cred i t ) : A docu m ent i ssued as a guaran t ee of p a y m e nt b y a bank, on beh a l f of a c l i en t . T h i s i s used as “p a y m e n t of l ast resor t ” i f t he c l i ent fa il s t o fu l f i l l a con t r a c t u a l c o m m it m e nt w it h a t h i rd par t y . In t he pr i v a t e p l a c e m e n t wor l d, t h i s t e r m i s of t en a s soc i a t ed w it h fraudu l e n t c o m p an i es t h a t o f fer bank i ns t ru m ent l eas i ng and / or pro j ect fund i ng “ o ppor t u n iti es”. S K R (S a f e K eep i ng Rec e i pt ) : A docu m ent crea t ed b y a bank, on beha l f of i t s cus t o m e r , w h i ch spec i f i es a l l de t a i l s of an asse t , and conf i r m s it s curre n t ex i s t ence on depos it . V O D ( V er i f i c a ti on of Dep o s it ) : T h i s i s a s i gned doc u m e n t prov i ded b y a f i nan c i al i ns tit u ti on, ver i f y i ng t he curre n t ba l a n ce and h i s t o r y of an a c count ho l d e r . T h i s i s s imil ar t o a BC L , but t he verb i age m a y be d i f fere n t . Ad m i n i strat i v e H o l d: A t e r m u su a l l y refer r ed t o b y i n exper i e n ced brokers. It refers t o t he i nves t o r ’ s bank reserv i ng fun d s i n favor of ano t her i nd i v i du a l , w it hout ac t u a l l y enc u m be r i ng or m o v i ng t h e asse t . A sset Ba c ked: R e fers t o a no t e or bank i ns t r u m e n t wh i ch i s co l l a t era l i zed b y hard a s se t s, not li qu i d a s se t s. T h i s can be ge m s, go l d, ar t , d i a m onds, or o t her rare va l u ab l es. A ss i g n m ent: T ransferr i ng ownersh i p, or r i gh t s t o u se t he co l l a t era l , t o ano t her i nd i v i d u al for a spec i f i c per i od of t i m e. So m e t ra d ers requ i re t h i s for pr i va t e p l a ce m e n t i nves t m en t s. Ba n k I n str u m e nt: A debt i ns t r u m ent is sued b y ban k s t o access i m m e d i a t e li qu i d it y , prov i d i ng an annual i n t erest and face va l ue for t he purchase r . B G ’ s and M T N ’ s are co mm on ex a m p l es. Ba n k to Bank: A phrased t y p i ca ll y used b y brokers, referr i ng t o t he pr i va t e ver i f i ca t i on of a s se t s from t he i nves t o r ’ s bank o f f i ce r , t o t he t rade r ’ s / se l l e r ’ s bank o f f i ce r . B e n e f i c i a r y ; T he i nd i v i du a l li s t ed as t he o wner of a debt i ns t r u m en t , s uch as a m e d i u m t e r m no t es (M T N ‘ s) or bank guaran t ees (B G ’ s). B e st E f f orts: T h i s i s a t e r m used i n a n y real pr i v a t e p l ac e m ent con t ra c t . It s t a t es t hat t he t rade r , or i nves t m e n t m a n age r , w il l use t h e i r best e f for t s t o ach i e v e h i gh prof i t s. F or ex a m p l e, a con t r a ct m a y s a y “prof it s w il l be ac h i eved on a best e f for t s bas i s”. B l ocked F un d s: A general phrase wh i ch refers t o b l ock i ng li qu i d a s se t s i n favor of ano t her person. T h i s i s m o s t c o m m o n l y ac h i eved v i a sw i ft MT 760, un l ess y ou are i n t he U SA. B r oker C ha i n: A l so known as a “ da i s y cha i n”, t h i s frequen tl y used t e r m descr i bes t he “ l a y ers” of brokers t hat one m u s t go t hrough before t h e y reach a t rade r . Unfor t una t el y , t he r e are usua l l y several pr i va t e p l ac e m ent brokers i nvo l ved i n a n y de a l . Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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Bu ll et P r o g r a m : Phrase cre a t ed b y i nexper i e n ced brokers t h a t descr i b es “shor t - t e r m ” pr i v a t e p l ac e m ent progra m s, pr o m i s i ng h i gh re t urns i n l ess t han 30 d a y s . C ash Ba c ked: A s se t s wh i ch are backed b y cash, m a k i ng t h e m far m ore appea l i ng for banks and pr i va t e p l a c e m e n t t ra d ers. C i r c u m vent i on: Cu tti ng out t he peop l e w ho i n t rod u ced y ou t o t he oppor t un it y or broke r , w it h no i n t ent t o reward t h e m i f y ou are s uc c e s sfu l . C o l l atera l : An asset guaran t ee i ng t he l i ne of cre d i t t h e bank g i ves, w h i ch can be s e i zed upon defau l t from t he l oan t er m s. B a nk i ns t r u m e n t s, cash, and MT 760 ’ s are s o m e exa m p l es. C o mm is s i on: P a y m e n t s wh i ch can be earned b y i n t roduc i ng a serv i ce prov i de t o a pr o spe c ti ve c l i en t . C o mm i t m ent H o l der: An i nd i v i d u a l / i ns tit u ti on who i s con t r a c t u a l l y ob l i ga t ed t o purchase a bank i ns t r u m e n t at an agreed upon va l ue. W it hout “pr i or co mmi t m e n t ”, t he se ll er of t he bank i ns t ru m e n t wou l d never have purchased t h e no t e because t h e i r i n t ent was t rad i ng for prof it . T h i s t e r m i s a l so s i m i l ar t o t he phrase “ex i t b u y e r”. C o m p li ance: T he process of co m p l e ti ng due d ili ge n ce on a new pr i va t e p l ac e m ent i nves t o r . At t h i s t i m e, t he i nves t or m ust co m p l e t e t he requ i r ed doc u m e n t a t i on, usua l l y referred t o as t he “c o m p l i an c e packa g e”. C orporate Reso l ut i on: A c o m p li a n ce doc u m e nt wh i ch as k s t he c l i ent t o for m a l l y s t a t e t he i r re l a t i onsh i p t o t he bus i ness en t it y t h e y represen t . C utt i ng H ouse: T e r m referr i ng t o a bank wh i ch crea t es, is sues, and backs d i scoun t ed bank i ns t ru m e n t s. T he i ns t r u m e n t s are “cu t ”, and so l d t o t ra d ers at d i scoun t s, w ho t hen se l l t h e m at a h i gher pr i ce t o “ex i t b u y e rs”. D i scount: T he i dea t hat bank i ns t ru m en t s can be purchased at a d i scount fr o m face va l u e, l eav i ng t he oppor t un i t y t o prof i t from resa l e, or t he d i f fere n ce be t w e en face Due D illi g enc e : Phr a se referr i ng t o t he process of qua l i f y i ng peop l e b y ver i f y i n g and i nves ti g a ti ng t h e i r background. T h i s i s used m u t ua l l y b y pr i va t e p l a ce m e n t t raders and i nves t ors. E sc r o w : A n escrow serv i c e i s a l i censed and regu l a t ed c o m pa n y t hat co ll e c t s, ho l ds, and sen d s m on e y , accor d i ng t o cond iti ons spec i f i ed b y bo t h t he cus t o m er and s erv i ce prov i d e r . O nce t he cond iti ons of t h e cus t o m er are m e t , funds are i mm e d i a t el y re l eased t o t he serv i ce prov i de r . T y p i ca ll y , i n t he pr i v a t e p l a c e m e n t bus i ness, escrow i s u sed t o p a y upfront fees for “ske t c h y ” serv i ces such as l eased bank i ns t r u m e n t s, fund i ng oppor t un i ti es, and o t hers. Eu r oc l ear: T he wor l d ’ s l a r gest se t t l e m e n t s y s t em for secur i ti es t ransac ti ons, cover i ng bonds and equ i t i es, as we l l as bank i ns t r u m e n t s. T h i s i m por t ant and e f f i c i ent m e d i u m a ll ows t ransac t i ons t o be c o m p l e t ed r e m o t e l y , wh il e ensur i ng safe t y for bo t h t he b u y e r and se ll er of t he asse t . Ex i t B u y er: A t e r m u sed ve r y frequen tl y , refer r i ng t o t h e “ b u y er i n p l ac e ” purchas i ng t he bank i ns t r u m e n t at a h i gher va l ue from t he curre n t owne r . Fi sh i ng: When a “ pr o spe c t ” con t ac t s a pr i va t e p l ac e m ent broker w it h l it t l e t o no i n t ent t o Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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m o ve forward, but p l en t y of de t a i l ed ques ti ons i n an e f fort t o “f i sh” for i nfo r m a ti on. F r ee a nd C l ear: A l so known a s “ unenc u m be r ed”, i t m eans t h ere are no li ens or curre n t debt ob li g a ti ons assoc i a t ed w it h t h a t par t i cu l ar asse t . F r esh C ut: Phrase refer r i ng t o a recen tl y i ssued bank i ns t r u m e nt t h at has had on l y one owner over t he course of it s ex i s t e n ce. Usua l l y , t h e y are accessed at a s t eep d i scount fr o m face. F u n d i ng: A s hor t er w a y t o refe r ence “pr o j ect fund i ng”, u sua ll y referred t o b y t hose w it h i nsu f f i c i e n t cap i t al t o fund t h e i r pro j ect t hrough pr i va t e p l ac e m ent progra m s. G uarantee: T h i s i s a w ord t h a t shou l d N E V E R be u sed i n a n y i nves t m e nt n i che, espe c i a ll y one as vo l a t il e as t he pr i v a t e p l ac e m e nt m a rke t . T hough i t m a y not se e m li ke a k e y t e r m , i t i s for one V E R Y b i g reason. A n y broker or t ra d er t h a t “ g uara n t ees” cer t a i n prof i t a m oun t s i s break i ng t he l a w , and w il l N E V E R fu l f il l t he i r c l a i m s. H y pothecate: T he process of a ss i gn i ng a m one t a r y va l u e t o an illi q u i d asse t , and t hen ex t ra c ti ng li qu i d it y i n t he fo r m of a l oan, us i ng t he il l i qu i d a sset as co ll a t era l . I n- G r ound A s sets: L and areas wh i ch have been appra i sed based upon ge o l og i c a l a s sess m en t s of t he asse t s wh i ch l i e bene a t h. Ma n y i n t h e pr i va t e p l a c e m e n t bus i ness t r y t o en t er progra m s w it h l and con t a i n i ng pre c i ous m e t a l s, ene r g y m a t er i a l s, and m ore. U nfor t u n a t e l y , m ost have no l uck due t o t he current w or l dw i de li qu i d i t y c r i s i s, and t he h i gh excav a ti on cos t s t o i so l a t e t he asse t . I nte r m ed i a r y : A n y o ne i nvo l ved i n a pr i v a t e p l a c e m e nt t rans a c ti on, e it her t hrough i n t rodu c ti on or c o m p ensa ti on, w ho i s NOT t he t rader or c l i en t . Joker B r oker: T e r m u sed t o descr i be i nexper i enced pr i va t e p l a c e m ent brokers w ho do no t h i ng but w a s t e y o ur t i m e . J u nk Bond: A bond i ssued b y a c o m pa n y or i ns t i t u ti on wh i ch has poor f i nan c i al i n t eg r i t y , m a k i ng t he bond e f fe c ti v el y wor t h l ess. So m e ex a m p l es wh i ch pr i va t e p l ac e m ent brokers m a y encoun t er are: V enezu e l an bonds, Br a z i li an bonds, go l d bearer bon d s, ce r t a i n corpora t e bon d s, and m a n y o t hers. L e dger to L e dger: T h i s phrase refers t o a t ransfer be t w e en t wo accou n t s he l d b y t h e sa m e bank. For ex a m p l e, a t r ader m a y have an H SBC accou n t , and send t he prof it s t o a c li e n t w it h a d i f fere n t H S BC a c coun t . T h i s i s far m o re e f f i c i e n t , and avo i ds p o ss i b l e prob l e m s assoc i a t ed w it h ex t er n al t ransfers. L e tter of A uthor i z a t i on: A c o m p li a n ce doc u m e nt req u i red for a l l , a l l ow i ng t he t rade group t o ver i f y t he i nves t o r ’ s a s se t s bank t o bank. T h i s i s a l so kn o wn as t he “Au t hor i z a ti on t o V er i f y ”. L i ne of C r ed i t: T hough i t m a y s ound fan c y , i t ’ s j ust a bank l oan. Usua l l y i n t he pr i v a t e p l ac e m ent w or l d, t h i s refers t o t he l oan g i ven t o t he t ra d er r i ght before t ra d i ng s t ar t s. Managed B u y / Se ll : Ano t her s y n o n y m for pr i v a t e p l ac e m ent progra m s. It refers t o t he m a naged b u y i ng and se l li ng of bank i ns t ru m en t s b y a pr i va t e p l a c e m ent t rad e r . Mandate: Ano t her t erm m e an i ng s o m eo n e i s “ d i rec t ” t o an i nves t m ent oppor t un i t y or c l i en t . U sua ll y , t h i s t erm i s used b y ve r y i nexper i enced broke r s. Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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MT 103: T h i s i s an i m pro v ed vers i on of t he or i g i n a l sw i ft MT 100, wh i ch i s s i m i l ar t o a w i re t ransfe r . T hough i t i s a d i rect t ransfe r , t he MT 103 has a l a r ge nu m ber of op t i ons w h i ch descr i be cond iti ons and i ns t ruc ti ons for h o w t he p a y m e n t shou l d be m a d e. MT 760: T h i s sw i ft m essage i s u sed t o b l ock funds i n favor of s o m eo n e o t her t han t he i nves t o r , co ll a t era l i z i ng t he asset w h i l e a l l ow i ng for l oans ag a i nst it . MT 799: T h i s sw i ft m essage i s u sed b e t ween banks t o c o mm un i c a t e i n wr it t en fo r m , and i s u su a l l y refer r ed t o as “ pre-adv i c e ”. T y p i c a l l y , t he MT 799 w il l be needed d i re c t l y before t he MT 760 I s i ssued. N on-Dep l et i on Account: A t e r m used i n pr i v a t e p l ac e m ent con t ra c t s w h i ch guaran t ees t he fun d s of t h e c l i ent w il l never be dep l e t ed b y t he t rad e r . N on-So li c i tat i on: A co m p l i ance docu m ent t hat pro t e c t s t he consu l t an t s b y hav i ng t he i nves t or s t a t e t h e y were not so li c it ed. P aper: A s y n o n y m u sed b y pr i va t e p l ac e m ent brokers referr i ng t o bank i ns t r u m e n t s such as bank guaran t ees or m ed i u m t e r m no t es. P a y m a ster: A n i n d i v i dual e l e c t ed b y i n t e r m e d i a r i es who w il l a c cept a l l co mmi ss i on p a y m en t s on a pr i va t e p l a c e m e n t t ransa c ti on, and t hen d i s t r i b u t e t hem i n accorda n ce t o t he agre e m e nt b e t ween t he par ti es. T h i s can be an a tt orn e y , one of t he brokers, or a n y o ne e l se t he i n t e r m ed i a r i es feel c o m for t ab l e w it h. Pl a t f o r m : Ano t her s y n o n y m for pr i v a t e p l ac e m ent progra m s wh i ch refers t o t he corpor a t e s t ruc t ure of t he t ra d e group. P o w er of A ttorney: A docu m e n t s i gned b y t he account ho l der w h i ch g i ves au t hor it y for s o m e one t o act on t h e i r beh a l f, as spec i f i ed i n t he agre e m en t . Se a soned: C o m m on t e r m t hat refers t o bank i ns t ru m en t s, such as m e d i u m t erm no t es (M T N ’ s) and bank guaran t e es ( B G ’ s), wh i ch have been o wned b y s ever a l d i f fere n t benef i c i ar i es over t he i r ex i s t en c e. S hopp i ng: When a represe n t a t i ve / broker sen d s out an i nves t o r ’ s c o m p li an c e packa g e t o several “program m a n agers” at t he s a m e t i m e. T h i s i s gre a t l y fr o wned upon, and can ru i n re l a t i onsh i ps w it h re a l t raders. S i gnato r y : An i nd i v i d u al who l eg a l l y represen t s t he a s se t s / ser v i ces of ano t h er person, en t it y or t h e m se l v es, b y execu t i ng a l l con t r ac t u a l agre e m en t s and re l a t ed ob li g a ti ons. S li ght l y Seasoned: A bank i ns t ru m ent w h i ch has been t r aded, hav i ng m o re t h an one owner over it s l i fespan before m a t ur it y . T h i s i s u sua ll y a bank i ns t ru m ent wh i ch i s d i scoun t ed m o dera t e l y , s o l d at a va l ue of 70-85% of fa c e. S w i f t: A s y s te m of co mm un i ca ti on be t ween banks, a ll ow i ng account ho l ders t o b l ock, t ransfe r , or ass i gn asse t s as per t h e i r reques t . E x a m p l es are t h e sw i ft MT 100, MT 103, MT 760, and MT 799. T ab l etop: A t e r m wh i ch refers t o a face t o fa c e m e e ti ng be t ween a b u y e r /i nves t o r , and a se ll er / t rad e r . T rade P r ogr a m : A s y n o n y m of t he t e r m “pr i v a t e p l a c e m e n t progr a m ” , t h i s phrase i s Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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frequen t l y su b s t i t u t ed b y brokers i n bus i ness. T rader: A person w it h a d i r e ct r e l a ti onsh i p t o a bank t hat i s is su i ng d i scoun t ed bank i ns t ru m e n t s, w h i ch w il l l a t er be so l d t o a pre-def i ned “ex i t b u y e r” at a h i gher va l ue. T rad i ng Ba n k: T h i s i s t h e bank where t h e t rader rece i v es t he c o ll a t era l , or a s s i g n m ent t hereof, from t he i nves t o r . A l so, t h i s bank prov i des t h e li ne of cred i t t o t h e t rad e r . U nenc u m be r ed: T h i s m e ans t he referenced a s set has no li ens or de b t ob li g a ti ons t o a n y t h i rd par t y . T hough we’ve done our b e st t o i n c l ude a l l of t he k e y t e r m s a s soc i a t ed w it h pr i va t e p l a c e m ent progra m , we apo l o g i ze i f we mi ssed a n y t h i ng y ou feel i s i m por t an t . If t h ere are a n y o t her t e r m s y ou fe e l our readers w ou l d apprec i a t e, s cro l l down and post t h e m now! W e t ru l y hope t hat y o u apprec i a t e t h e ex t ens i v e e f fort w e have put i n t o it . O bv i ous l y , we encourage our readers t o unde r s t and and app l y t he t er m s we have m e n ti oned, but y ou m ust A L W A YS m u s t r e m e m ber one t h i ng: y o u can l e arn a l l of t he “ li ngo ” y ou wan t , but acro n y m s don ’ t c l ose de a l s, educ a ti on and exper i en c e does. Le g al A d v i ce and D i s c l a i mer E c o no m ists & L a w y er s, a r e a t ea m o f e c o no m ists a n d l a w y e r s s p e ci a l i z i n g in t h e fi n a n ci a l s e c t o r , o u r m issi o n is t o e d u c a te m il l i o n s o f r ea d e r s a n d p o ssi b le i n v e st o r s o n t h e b e ne f its a n d r isks o f a lt e r na ti v e i n v e st me n ts. B y p r o v i d i n g e du c a ti o n t h ro u g h ou r W e b sit e , i n v e s t o r s w ill f i na lly ha v e a s o u r ce t h e y c a n t r u st. A s y o u c a n s ee , e m p a t h y is p r e s en t in e v e r y t h i n g we d o . T h e f a ct is, we a r e t h e ON L Y w e b si t e w i th f r e e e du c a ti o n o n a lt e rn a ti v e i n v e st m en t s . T ha t me an s t h e r e is n o s o li c i t a ti o n o f i n v e st me n t o n o u r w eb si t e , j u st f r e e i n f o rm a t i o n to p r o t e ct a n d i n f o rm . S i n ce we c a r e a b ou t o u r c o mm un i t y , o u r c o r e v a l u e s o f E m pa th y , E d u c a ti o n , a n d I n t e g r ity e xist in e v e r yt h i n g w e d o . T h is m ean s t h a t in e v e r y a r ticl e , w e l oo k a t t h e t o p ic in t h e e y e s o f t h e r e a de r . B y p r o vi d i n g e du c a ti o na l i n si g h t fr o m t h e ir pe r s p e ct i v e , t h e t o p ic b e c o m e s e x citi n g a n d e a sy t o l e a r n . R e m e m be r , w e a l w a y s e x p l a in t h e t o p ic w i th o n e g o a l in m i n d , y o u r s u cc e s s ! If w e p r e v e n t o n e m ist a k e b y v i siti n g o u r w eb si t e , j u st b y h e l p i n g y o u , we w o u ld ha v e a cc o m p lis h e d ou r m issi o n . • L E G A L / PE N A L T Y N O T ICE : T h is w e b si t e is n o t i n t e n d e d a s a s o li c i t a ti o n t o c u s t o m e r s in a n y j u r is d icti o n in w h ich w e a r e n o t a u t h or i z e d to o p e r a t e . W e a r e n o t C e r t i f i e d Fi n a n ci a l Ad v is o r s, S e c u r iti e s B r o k e r s o r S t o ck B r o k e r s. W e a r e b u si n e ss c on s u lt a n ts ( E c o no m ist a s an s L a w y er s ) w h o p r o v i d e g e ne r a l i n f or ma ti o n to p r i v a te i nd i v i d u a ls a b o u t bu s i ne ss m a t t e r s in o r de r to e d u c a te r e a de r s a n d p o ssi b le i n v e st o r s o n t h e b e n e fits a n d r isks o f a l t e r n a t i v e i n v e st me n ts T h e i n f o rm a ti o n p r e s e n t e d is n o t in a n yw a y c on s i de re d o r i n t e n d e d to b e a s o licit a t i o n o f f und s a n d i s i n t e n d e d on l y a s g e ne r a l k n o w l e d g e . P l ea s e u n de r s t a n d t h a t t h e c o n t e m p l a t e d t ra n s a ct i on ( s) i s st r ictly p r i v a te a n d in n o w a y r e l a t e s t o t h e U n it e d S t a t e s s e c u r iti e s a ct o f 1 9 3 3 ( TH E " A C T " ) o r r e l a t e d re gu l a ti on s a n d d o e s no t i n v o l v e t h e s a le o f r eg ist e r e d s e c u r iti e s . T h is t ra n s a ct i on ( s) a r e p r i v a te a n d e x e mp t f r o m t h e a ct. P l ea s e b e a w a r e t ha t a n y d iscl o s u r e , p h o to c o p yi n g , d ist r i b u ti o n o r u se o f t h e c o n t e n ts o f t h is i n f or ma ti on is p r oh i b it e d . • Dis c l a i m e r : W e a r e no t a U n it e d S t a t e s S e c u r iti e s D ea l e r , N F A /C F T C M e m be r , CN M V M e mb e r , F S A M e m be r , o r U n it e d S t a t e s Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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I n v e st m e n t Ad v is o r . A ll a r ti c l e s a n d r e l a t e d do c u me n ts a r e n e v e r c on s i de re d to b e a s o li c i t a ti o n f o r a n y p u r po s e , in a n y f o r m o r c o n t e n t. U p o n r e a d i n g t h e a r ticl e s a n d i n f o rm a ti o n y o u he re b y a ck n o w l e d g e t h is w a r n i n g a n d D iscl a i m e r . A ll i n f o rm a t i o n p r o v i d e d is f o r i n f or ma ti o n a l pu r po s e s on l y , a n d s ha ll n o t b e r e li e d u p o n a s p e r s o na l f i nan ci a l a d v ic e . A n y r e f e re n ce to a s p e c i f ic t r ad i n g st r a t e g y i s on l y to a ssist in l ea r n i ng , a n d s ha ll N EVE R b e r e li e d u p o n w h e n m a ki n g f u t u r e i n v e st m e n t d e cisi on s . I N F O V ICENTE P IQUE R A S E c onomi s t-M B A & Fina n c i a l T r a ding Consul t a nt E x - E c onom i s t f or t he E c onomic a nd Comme r c i a l O ff i c e a t t he Spa n i s h E mba s s y i n London. Uni t e d Kingdom E - m a il l a w y e r s . a nd . ec onom i s t s@ g m a il . c om S k y pe v i ce n t e pique r as 1 Pho n e +3 4 6 3 3 . 4 8 7 . 8 7 3 Madr i d l a w y ers.and . econ o m i s ts @ g m a il .c o m London

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