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PRIVATE PLACEMENT TRADE PROGRAM
FLEX Program
• 1M - 25M Private Placement
Program
• The program is intended exclusively for United States clients – non US
clients must transfer funds.
• The capital entry requirement is $1,000,000 up
to $25,000,000 USD.
• This is a cash program.
• Clients required to move funds
upon execution of contract and issuance of BG instrument as(collateral).
•
Clients receive collateral from top-rated institutions as security.
• Program
runs for a period of one (1) year (forty trading weeks).
• Program’s historical
weekly returns are provided upon submission (approx. 10%-25%).
• One-time cash
advance on projected returns up to 10% available on a case by case basis.
•
Trading begins within 10 - 15 days from contract signing and transfer of funds.
• There are no project requirements.
SYNERGY Program
• Private Placement Program
above 25M for cash accounts
• Program available to US and non-US citizens.
•
The capital entry requirement is above $25,000,000 USD/EURO.
• There is no
maximum. • Clients are not required to move their funds.
• Client’s cash account
is blocked via Swift MT 700 (US) or Swift MT760 (non-US) or Internal Block.
•
Funds are blocked for one (1) year and one (1) day.
• Program runs for a period
of one (1) year (forty trading weeks).
• Program’s historical weekly returns are
provided upon submission (approx. 10%-25%).
• One-time cash advance on projected
returns of funds placed in trade - up to 10% available on a case by case basis.
• Trading begins within 8 - 10 banking days from contract signing and receipt of
MT Swift.
• There are no humanitarian project requirements.
The technicalities
of a MTN Private Trading Program Medium Term Notes (MTN Considering that top
major banks issue Medium Term Notes (known as MTNs and Mid-Term Notes) to raise
funds in both U.S. and Euro dollars, we can better understand that they are for
the purpose of generating Operating Loans and issuing Letters of Credit to
businesses which wish to buy material and products from other business
organizations in other countries. To further expand on this in laymen terms,
this therefore results in an International Treaty whereby the U.S. Dollar (or
the Euro) becomes the common Medium of Exchange for International Trading.
By
Federal Law, a European bank is not allowed to sell such Medium Term Notes
directly to the Public. They must be issued and sold through a Federal Reserve
Licensed Trader; just as in the same context a Corporation or a Municipality
must sell Bonds through a Dealer or Underwriter.
The Trader, aiding in the
distributional sales of newly issued MTNs from the major sized Bank will have a
$50B (Billion) contract (or of equivalent amounts) with the Issuing Bank to
purchase MTNs for immediate resale. This Trader would instigate the following:
A
Non-Revocable Contract (see further explanation in Paragraph A) with an Exit
Buyer, such as a Pension Fund, to buy those MTNs from them immediately, and with
a contract with a Participating Investor, acting as the Trader's 'Associate' to
furnish the Proof Of Funds (POF) required, simply as a formality, to start and
continue the Purchase and Resale series of Transactions.
The Trader also makes
contractual arrangements with their own bank, through their bank's 'Back Room'
Trading Department, to act for them during the Transactions of $100M (Million)
or greater. This $100M amount is the minimum set by the U. S. Federal Reserve
for this type of Bank issued MTN Distribution.
The 'Associate' thereby arranges
for their own bank to issue to themselves a POF using $100M in Cash Funds, which
are wholly owned by them, in their account at their own bank. This enacts the
ability to obtain cash credit of $100M for the POF. This POF is then sent to the
Trader in accordance with the contract between Trader and their 'Associate'.
It
is important to note that Medium Term Note Trading is a very specific process.
When less than experienced Associates expect absolute perfection and
"up-to-the-minute" communication, these immediate reactions inevitably cause
more delays, short-comings and frustrations on behalf of not only the Associate
but the Trade Platform as well.
Several factors influence the timing of entering
a trade; the current availability of Medium Term Notes, which can easily be in
short supply, the timing of the trade submission and the specific programs that
cancel without notice. On occasion, these unexpected market trends give a false
illusion resulting in the sophisticated MTN Trading Platform to appear chaotic.
Nothing is further than the truth.
Below is a typical scenario of a Private
Mid-Term Buy/Sell Program.
a. The Trader's Bank communicates with the Issuing
Bank as well as with the Exit Buyer's Bank, obtaining a detailed agreement with
the Issuing Bank Officer and with the Exit Buyer's Bank that they are both
prepared to commence the contracted series of Transactions. The Exit Buyer's
Bank forwards a POF to the Trader's Bank for the amount of the first purchase of
$100M (Note - When a POF has been issued for the Exit Buyer and forwarded to the
Trader's Bank, there is a legal Funding Commitment to complete that Transaction,
which may NOT be revoked while the transaction is taking place).
b. The Trader's
Bank forwards to the Issuing Bank a POF in the name of the Trader and requests
that a MTN be issued in the name of the Trader, along with an Invoice at a
discounted price, say for example only $97M, payable in 8 Hours.
c. A copy of
the Note and an invoice at $97M, is forwarded to the Trader's Bank, which
authenticates signatures and MTN terms to verify compliance with the Purchase
Contract.
d. The Trader's Bank then forwards the copy of the MTN, along with a
Conditional Assignment of the MTN, to the Exit Buyer's Bank, along with an
Invoice at the Exit Buyer's Purchase Contract Price, $100M for example purposes,
payable in 4 hours.
e. The Exit Buyer's Bank authenticates signatures, verifies
compliance with the Purchase Contract, and pays the $100M Invoice price to the
Trader's Bank for credit to Trader's account, within the 4 hour limit.
f. The
Trader's Bank pays Issuing Bank's Invoice for $97M within the 8 hour limit,
along with instructions for the Original MTN to be sent to the Exit buyer's Bank
by courier.
g. The Trader's Bank debits the Trader a Bank Fee (1/4% for example
purposes) for their Services Rendered, and forwards the balance, $100M minus
$97M minus 1/4 %, to the Trader, who pays the Trader's 'Associate' for their
Service Rendered.
h. The Procedure used for this example, typically takes place
4 times each day of a 4 business day week, and repeats until the Trader's
Purchase Contract is completed. Using this formula, the weekly payments to the
'Associate', would be equal to 22% of their POF amount. (3% per transaction x 4
per day x 4 days per week = 48% - 4% as Bank Fee = 44% / 2 = 22% = $22M per
week)
Note: The Operation described above is a very conservative one. There are
other MTN Trade Operations, of the same MTN basis but involving a resale of the
MTNs by the 'Exit Buyer', which have a higher Rate of Return to the Trader
involved, and therefore an even higher payment to the 'Associate' involved.
An
experienced Associate can safely state that with the listed procedure and
controls for the Transactions, the only reason for a Transaction failing, once
commenced, would be for the Exit Buyer's Bank to default on completing a
contracted purchase of a Note, which would result in a jeopardy to their Bank
Charter.
Should any default take place, it would be quite simple for the Trader
to make the required Payment, using their own Funds, to complete their purchase
of the Instrument, and to immediately sell it to a different contracted Exit
Buyer. This action by the Trader eliminates any risk of loss by the Buyers and
Exit Buyers and 'Associate'.
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