PPP - Rules of the Road
The Rules of the Road
1) None of the customary standards and practices that apply to conventional business, investing and finance applies to our marketplace.
2) Personal financial and business success has virtually nothing to do with who you are and what you think you know, but almost everything to do with who you are and how you conduct yourself.
3) It is a privilege to be invited to participate in one of our Private Placement programs. It is not a "right." These programs deliver unparalleled yields in combination with absolutely no program-related risk. The trading administrators and managers have a virtually endless supply of financially qualified applicants. All things considered, the trading banks will favour the applicant with the best background, the best attitude and the best paperwork.
4) An applicant should never underestimate what the trading entities know about him. Failure to provide full disclosure will summarily disqualify the disingenuous.
5) Generally, the programs exist to finance humanitarian projects, not to generate more money for the wealthy. Clients who have projects usually receive preferred treatment and the highest yields.
6) Clients must first prove that they are qualified, not the other way around. Until the traders and trading banks accept the client, nothing shall happen.
7) Face-to-face interviews with compliance officers and program management are often required. An arrogant or demanding personality will guarantee rejection.
8) Only the principal owner of funds is considered as signatory. Corporations must empower an existing officer or director as sole and exclusive signatory (also exclusive signatory on the bank account in which the funds reside), by Corporate Resolution.
9) Not only do the funds have to be on deposit in a top bank; the bank must be in an acceptable western jurisdiction. If not, the funds have to be moved to such a jurisdiction or a suitable bank in an acceptable venue must guarantee them with full responsibility.
10) It is felony fraud to submit documents or financial instruments that have been forged, altered or counterfeited. Such papers are immediately referred to the appropriate law enforcement bodies for immediate criminal prosecution
11) The Federal Reserve, program management, licensed traders and trading banks, determines the practices, procedures and rules. It is their decision as to whom to accept and whom to reject. Contract terms, yields, schedules, etc., are made to fit their needs and schedules and not the caprices or demands of the candidate.
12) This marketplace is strictly confidential, and absolute confidentiality is a key element of virtually every contract. A client who breaks confidentiality will precipitate instant cancellation of his contract, often with severe financial consequences.
13) Submission of application documents to more than one management group at a time is termed, "shopping." If a prospect "shops," he can expect that this fact shall be quickly disseminated among management groups who maintain close communication, and he shall be accepted by none - rejected by all ("black listed")
14) The participation on a PRIVATE PLACEMENT PROGRAM is a privilege and therefore all participants should naturally behave them accordingly.
General Information
Below the Procedere is to be represented with the completion by money market business by means of MTN' s bank debentures as well as Treasury bond and Treasury Bills. The knowledge around such possibilities is a condition for understandable recognizing of the chances on the money and capital market and basis for a smooth execution of such transactions.
It is well-known that there is outside of the bank switches of cash transactions, in which the normal banking customer cannot participate, so z. B. Euro-dollar business, foreign exchange and interest arbitrage business, trade with certificates of indebtedness and. A. m. One of the reasons for the exclusion of the broad bank public probably lies in the height of the transactions and/or. the acted papers (i. D. R. at least 10 millions USD) as well as the complicated and pedantic way.
By Brokern, models are offered to loan agents and partly also of doubtful companies, which give also the opportunity to Small investors to take part in money market business. This is to be seen quite positive from the thing, from the risk however problematic, there the investor its money usually an unknown company (non-bank) to entrust is.
In the consequence the investor has only limited right of disposal over his money as well as only one partial requirement on offered collateral (usually over trustees) and is on the seriosity of the respective partners dependent for better or for worse.
If world-wide daily hundreds money market business between large investors and banks are locked, then in the press only on dubious machinations particular is reported. (see also „Crime report "to the international Chamber of Commerce, Paris). Obscure business does not correspond however to the conceptions of respectablly working investment companies.
The goal is direct it, with the respective investor, quite also over a respectable advisor to complete and from this bank (or a third bank) guaranteed have in a bank these business. Usually the capital of the investor necessary for the investor business does not even leave its account, as far as it lies in the account of the investor with a Western European major bank. One year may not be only moved long, is thus blocked.
This is examined via screen. The money market business as such is absolutely respectable and by important companies is accomplished. The participation in a direct participation possibility at bank-secured on and sales of MTN' s or other bank papers is a privilege of fewer investors, who check up the money and capital market business and to the conditions of the FED submit.
Which are now Geldmarktpapiere, which offer absolute security It distinctive between short term bank papers, the SLC `s (Standby type character OF Credit) with a running time of one year and one day and medium-term, the MTN `s (medium term Notes) with a running time of ten years and one day. First (SLC) are so-called Zerobonds, have thus no interest promise. They are discounted acted therefore. The MTN `s is with interest charges of 7,5% per annum. equipped.
Both bank instruments become normally only starting from an order of magnitude of 50 millions In addition, USD spent, it are papers in an order of magnitude of 10 millions USD in the market. These minimum amounts are fixed of the FED. The completion of such business takes place following the regulations after ICC 500 (international Chamber of Commerce, Paris).
As now these bank instruments (SLC and MTN) developed
Both bank instruments have their origin in the USA, where it is forbidden due to legal regulations the banks to make bank guarantees available. Here with the SLC an instrument was created, which essentially corresponds to a bank guarantee and the possibility of special liquidity creation gives which to the banks.
Both instruments (SLC and MTN) are spent on the trade at the money market exclusively by select major banks. The SLC `s is brought as Zerobonds into the trade and is comparable with abgezinsten bank debentures.
They were developed following the recommendations regarding Dokumentenakkreditiven of the international Chamber of Commerce in Paris with the standards ICC 500. Same applies s to MTN for', whereby however an interest promise (usually 7.5% per annum) in the document (separate) is defined. In adjustment to the respective market interest this MTN is brought `s likewise discounted into the trade.
These Geldmarktpapiere in the normal letters of credit (CSLC or DLC) have their formal-legal origin, the classical letter of credit of a irrevocable receipt in the international business after uniform guidelines. These letters of credit/letters of credit for the provision of security of payments from commercial transactions were extended in the course of the years to warranty letters of credit (SLC `s).
This credit instrument was security or warranty for the observance of liabilities and other parts of contract. Afterwards the SLC was refined to a liquidity creation instrument except-relating to the balance, as banks can use the lending ratio (relationship own capital funds/laid out credits) in addition, except-relating to the balance over SLC and/or.
To lend MTN emission taken amounts as high-interest-bearing credits at short notice. By the time limitation of one year, and/or. 10 years and in each case 1 day the completion for the bank besides still into a later balance period is shifted.
As is now the expiration of an emission
A bank (i. D. R. a bank group) would like its commitment (partly also on behalf and/or. when desired the IMF and/or. the World Bank and. A. increase for the purpose of the financing of development assistance programs) in the loan business and these means refinance. It requests to emit a volume at MTN' s at the state supervision of the banks authority FED.
These bank instruments now discounts a small group of banks (i. D. R. over the o. A. Bank group) offered, which take over these papers against Vorkasse (find roofridge). They are then resold with a brokerage fee to usually institutional offerers. The FED has the task to supervise the emissions in order to adapt the international liquidity in the US Dollar area to the economic conditions.
In order to avoid inflationary tendencies, these bank instruments are spent only on the basis „find roofridge ", whereby only free means can be supplied to the bank cycle. An additional creation of money factor is thereby almost excluded. Same applies to the secondary market.
By sales of emitted Geldmarktpapiere on third (z. B. Insurance companies. Pension funds and. A .m) is restricted the credit creation potential of the banks, which works against again inflationary tendencies. Since such bank instruments are absolute clean ", only transferably from select major banks to be issued, tradable, immediately for sale transferable by endorsement and, represent they are beleihbar genuine securities with high interest use and are very much desired as plant papers.
They are safe like a bank debenture and are subject to no börslichen exchange rate fluctuations. In order to be able to enter into this business, first of all an amount of at least must. 10 millions USD to be proven. With a bank (i. D. ) One acquires R bank group a MTN. With an accepted bond issuing price around the 88% the Erwerber must approx. 8,8 millions USD ever 10 millions USD apply.
In the framework of the usual Tradings (on and sales of money and capital market papers) these bank instruments are bought first on the basis of "find roofridge "(initiated) and afterwards further-sold on the basis „collateral roofridge ". Before procurement of the aforementioned Geldmarktpapiers with customers of these money market instruments over the acceptance of the paper existing now after Ersterwerb (find roofridge) (collateral roofridge) an agreement is usually closed.
By the co-operation of the o. A. Bank group by funds of the investors by payment „find roofridge "created bank instrument becomes in the secondary market to the second solicitor (z. B. Insurance company, pension funds and. A. m.) with a margin resells. Since the Ersterwerb may take place only on basis „find roofridge ", internationally with the emission of such papers no additional liquidity is set free. First solicitors (initiators) may not do credit institutes and insurance (because of their money and/or. Credit creation possibilities) its. Only by the secondary acquisition (collateral roofridge) additional liquidity can be created.
The role of the Federal reserve bank during the creation of money
In order to be able to understand the structure of the creation of money better, one should be occupied with the function and the role of the FED and the behind it- standing system more exactly. With the FED concerns it a privately created American central bank. The establishment took place via the house of representatives and the senate in the year 1913. At the same time with the establishment the bank reserve law (Federal reserve act) was justified. This law makes possible the FED until today to create money without equivalent and to borrow it for example the American government at interest.
With the currency control law (Monetary Controll act). in June 1981 into force, the Federal reserve bank stepped among other things the power was given, not only the debts of the own nation to acquire but also the debts of other nations. The Federal reserve bank buys in addition in and foreign debts (e.g. SLC' s and MTN `s) of for example European major banks. The Federal reserve bank pays only USD, which is not drawn from that anything, as the salesman of the debt gets a line of credit by the Federal reserve bank granted.
This line of credit can be taken up to the debt at any time by the salesman (bank). In this way the circulating money supply is increased as well as the growth of the money supply is expanded. That has the consequence that the inflation can be heated up. Stop can be ordered by certain regimentations with permission for the expenditure of USD instruments to an inflation development.
This decision is with the Federal reserve bank respectable. this bank controlling committees and groups.
The Federal reserve bank affects itself by its legal equipment and the possibilities resulting in from it (publication of USD instruments), to which also world and monetary measures belongs, the money supply rotating in USD and with it the international liquidity.
Decisions of this kind are of monetary importance for the entire world. The Federal reserve bank functioned in addition, as a supervisory board for the instrument trade and exchanges itself regularly with the prominent central banks of the world over world-political developments of the monetary transaction, with which also joint strategies are developed.
Co-operation of the FED with the expenditure of MTN' s
Before the background of the IWF (international currency rear) as eligible for promotion recognized project initiates the IWF the emission so-called. Debenture Notes (MTN' s and/or. Bank debentures) by a major bank from the euro dollar area. The issue price of these notes amounts to at present 85% Pa. related to their nominal value.
The running time of these papers amounts to 10 years; they are provided with a yearly coupon of 7,5%. The Trader of the bank group (approved of the FED) possesses an appropriate Commitment (obligating promise) the FED to the emission of MTN' s and their resale.
For the acquisition and following resale of these MTN `s must the investor with the Trader of the bank group co-operate closely (Investmentvertrag). In order to be able to accomplish these business, the bank group has parallel to the before-described revolting assumption Commitment of a major bank from the circle of the bank group, select of MTN' s, likewise appropriate sales agreements, primarily with prominent US-Investment-banks, those at present these notes about. 90% to 95% of the nominal value remove.
The sales gain obtained thereby is divided according to the defaults of the FED between investor and bank group, whereby about two thirds of the profit flow to the investor. the other third becomes of the FED the financing of the humanitarian projects mentioned above needs. In addition the usual bank charges result.
Refinancing possibilities of the banks by the example MTN
The MTN can serve the banks `s as simple source of income, since they receive funds from investors, without having to ensure publication of loan (shown in the balance undertakings). Always a commercial transaction does not have to be the
basis for a MTN or be present an order for opening. It can be opened also independently of these conditions of the bank independently.
The MTN presents itself from therefore also as possibility of the raising of funds very interesting for the banks.
Those below represented operational sequence refer therefore predominantly to major banks (Rating „AA "and better). In the course of the years they developed the functions further of the SLC and MTN apart from the provision of security of commercial transactions also increasingly to a liquidity procurement instrument except-relating to the balance of the major banks. In the business reports of the major banks one searches often in vain for exact numbers from by business with MTN the' s and/or. Bank debentures obtained profits.
These generally fall under the balance sheet item „contingent liabilities ". Endorsements, warranties and letters of credit are not proven either at all or only „under the line of the balance ". The summary of business except-relating to the balance fulfills the facts of a camouflage of business thus to a large extent, with which partially lucrative profits are gained.
In order background for the exhibition of these papers to understand, should one with the function of the banks concern itself.
Depending upon nationality of the individual banks and the most diverse legal defaults of the respective states (e.g. KWG), as well as the associated requirements of the own capital funds ratio of a bank can act the ratio actively with the one bank can, up to be twenty times as high, as the minimum requirement placed against their capital cover.
The actual contingent liability for the bank results from the difference between purchase price and nominal value of the MTN. With the expressed possibilities regarding the increase of the active ratio the bank can, related to which again won own capital funds, as new line of credit against usual collateral to the final consumer assign a multiple of purchase price proceeds.
So 8.8 millions can from USD as own capital funds to be evaluated and used, with a multiplicator (credit creation) from 8 to 10 new granting of credit possibilities be created. >From this liquidity the bank, if the money is lent to the consumer as credit, can gain interest yields.
After 10 years and one day the MTN at a value of the nominal value of USD becomes 10 millions posed by the buyer at that time due and payable. Remain to the bank exkl. necessary refinancings and the associated costs, a not insignificant surplus. Thus the expenditure of the MTN paid `s for the bank.
A single business presents itself as follows:
These business becomes i.d.R. in a bank (member of the o. A. Bank group) completed. With the Trader of the bank group in the bank a Investmentvertrag is closed. The investor has the contractually agreed upon Investmentbetrag on own account with his house bank. The Investmentvertrag with this bank regulates the further Procedere and guarantees from the contract the yield.
Trading program
Before the background of a recognized project eligible for promotion (usually humanitarian kind, like z. B. Housebuilding in the third world, building of child villages or establishment of vital infrastructure measures) initiates the international currency rear (IWF) the emission of so-called. Debenture Notes issued of/by major banks from the euro-dollar area, usually is consisting that a bank group of major banks into the UK. German banks do not belong to the consortium.
On basis of this basis purchase „find roofridge "and sales in secondary market („collateral roofridge ") the Investment Trading programs are developed.
There „daily "acted (at the most however only on four bank days in the week) will must, are the margins desired not constantly in same height attainable.
In addition these business cannot be accomplished on each day. Like that are at certain times (z. B. Vacation month August and/or. to the year end) such business not possible. For this reason usually also only 40 weeks for Tradingzwecke are accepted and guaranteed.
Why between „find roofridge "and „is Collateral roofridge "an arbitrage gain obtained?
Only select major banks (Rating „AA2 or better ") can emit such bank instruments (MTN `s). In addition, Investmentbanken, insurance and institutional investors have (particularly also because of the favorable interest) interest in these papers.
For legal reasons however such business can be accomplished by a multiplicity of appropriate institutions only if the paper is already existence.
The existence of this paper takes place however after the guidelines of the emission only against pre-payment (find roofridge). Thus an investor necessarily becomes as a first solicitor in such a case.
Others than of the FED selected banks may not transact FED after the guidelines of the state supervision of the banks authority such first solicitor business. Beyond that the existing paper is ideal an instrument for the adjustment of the national and international money and capital market.
After confidential information from banking circles must be assumed it will give this Investmentgeschäft with MTN `to s still many years. However the conditions changed strongly.
So the FED wants to reduce the number of the emitters (banks) due to its connection to the bank OF England strongly. Also new licenses are not to be assigned any longer. Only select major banks will accompany in the future these business.
Bankinstruments
Participation of private investors in the international trade with bank instruments Of Professor. Dr. Bernt Bühnemann (university professor)
1. Introduction
Usually at all the faith in the existence of such banking transactions it results the largest difficulties for the understanding, of the international trade with bank instruments, which can be outlined in the following, from the fact that these transactions under strict secrecy as well as privacy under the acting institutions are transacted.
Above all however the largest part of the managers of these mechanisms times something of the existence of such business these information and stories for lack of detailed knowledge meanwhile the fairy tale world and calls it heard, assigns the very most banks, institutes for credit and institutional investors fantasy stories.
General evaluation of these transactions, also by specialists, by the fact is made more difficult that both the involved states and state institutions, as well as the banks taken part in these transactions concretely opposite outsiders, to whom practically all private investors belong, who answer existence in the negative of such business strictly and vehement.
Like that it is also only natural that there are no official and respectable representations of this international trade with bank instruments, to which one fall back reliably could.
Finally and not least the impression is strengthened of these business as dubious fantasy things with criminal substance by the fact that there is indeed a multiplicity of luck knights, dubious speculators and simply criminal ones, who induce in particular private capital investors with occasionally doubtful liquid means to it against very high not profit margins, funds and values representable with normal plants to make available, which disappear then in any dark channels usually together with the receivers of these investment securities.
Completely contrary to this picture, which professionally persons within the range banks, institutions for financing and institutional investors of this range transact themselves the majority that outweighing far make, the reality is characterized by the fact that such transactions are transacted day after day for the normal viewer in inconceivable orders of magnitude, as it already since very long time happen and surely still in whatever concrete forming out will always in the future further happen.
On each bank day in the week and in the year amounts of billion are acted with these bank instruments.
This happens in well-conceived arranged expiration operational sequence also clearly defined instruments and clear certain acting persons and organizations. Nothing will leave and each individual person as well as national or private institutions will have its clearly defined tasks to the coincidence.
This is a global commercial system, which has to do directly nothing with criminal acting and which is in reality relatively transparency and plausible. How is to be in the following still represented, requires high sensitivity, the complexity of the transactions as such, not least in addition, the tremendously large capital quantities, which are moved with these transactions, a strict secrecy outward and a confidential handling of the transactions under the persons and institutions involved.
For the private investor, who would like to take the possibilities up of this instrument trade for its own interests, usually large difficulties result. The system and the structures of this acting do not make it possible to give to the private investor full view into the whole of the system like also into the concrete completion of the different transactions.
The private investor must already have therefore to certain extent luck, in order to come at all with the persons or institutions into connection, which have this possibility of participating with the made available capital as an investor in this instrument trade. If these persons and institutions operate their high-sensitive business seriously, they can make seen only one part of the concrete information accessible also in the long term for the private investor, because these information could come into the wrong hands.
On the other side however the private investors, who do not make purely speculatively a' funds available perdu amounts, a certain security must be given that it gets its insert and minimum interest charges back anyhow in arranged way.
This is more important with respectablly arranged business relations all the, than the amounts of insert exhibit nevertheless already substantial orders of magnitude, those usually not under 10 millions US dollar lie. On the other side an increasingly larger need at private Kapitalzuflüssen develops, because this international trade with bank instruments expands ever more strongly and is urgently dependent on this private investor capital.
In addition it comes that the institutions and persons with kapitalschöpfungs and capital storage tank function offer more and more nevertheless from that hiding out- stepped and the private investor increasingly directly and indirectly security of its capital and that net yield which can be expected, as it did not give itself in this form in earlier times.
Thus also here increasingly market mechanisms of the capitalistic competition affect themselves, which anyhow exhibit quite positive elements for the private investor. For the concrete participation of a private investor in a such international trade with bank instruments it depends altogether crucial on the fact that it under keeping of the secrecy and privacy nevertheless quasi as a point of the iceberg collateral usual in banking and verifiable is angedient, which its private Investment secures to a large extent.
It remains however always with the fact that the private investor a whole role of substantial information about kind and range of this trade like also over the persons and institutions involved remaining hidden and to remain hidden have, because otherwise the entire system was endangered.
Private Placement (More)
Articel about Bankinstruments from Prof. Dr. Bernt Bühnemann Articel about Capital market from A. H. J. Stürwold
High Invest
Money market and financing instruments
.: The bank guarantee trade
.: SLC (Standby type character OF Credit)
.: STI (Short term Investment)
.: MTN' s bank debentures
.: Treasury bond and Treasury Bills
SLC (Standby type character OF Credit)
STI (Short term Investment)
Why is this kind of instruments almost unknown?
Beside the well-known bank switch business there are at present to approximately 7,500 money market and financing instruments (It. List of the bank for international clearing payment, BIZ, in Basel), which is absolutely unknown however to the conventional banking customer.
This above all because the banks do not have interest to let their customers participate in Investmentformen with unusually high net yields.
Often enough put therefore financial establishments their special attention to limit the knowledge of the salesmen trained by them mainly to which is sufficient for the sales of the products offered by them.
Like that it is not amazing that bank employees appear with products, which lie outside of the usual sphere usually directly overtaxed.
Their reactions are coined/shaped therefore often of a general defense behavior and culminate pretty often in the statement that there are not determined products at all on the market.
Due to such behavior of the bank salesmen and by the reverence, before the authority assumed at this person's group, it is a logical consequence that the customers are disconcerted with demands for products with unusually high net yields and led back in this way usually again into the standard products of the banks.
Instruments with higher net yields develop however from the needs of the banks, whereby they intend the rules of the cash transaction for large parts.
And if they can do without the co-operation of private investors, they do it also.
There is however business, with which they are forced due to legal regulations to be able to complete of natural and legal entities (investors) to avail themselves around these cash transactions. It concerns pretty often measures, which are made from banks to the raising of funds at the free capital market.
Which advantages does it offer to these banks?
Banks may increase their own capital funds by different liquidity creation measures over up to 10% per year. There a bank only 8 - eighteenfold of their own capital funds in the form of customer credits to spend may do, is such a capital increase measure very in demand.
Thus for example a debenture bond at a value of US$ 10 million of a bank is then sold abgezinst to a buyer at the price by US$ 8 million.
The issuing bank can immediately realize and as assets book the purchase price at a value of US$ 8 million. Since the debenture bond has a running time of for example 1 year and 1 day, balance-technically the purchase price in the current year only a commitment lecture of US$ 10 million faces, which affects itself as due payment balance-technically also only in the subsequent year.
With „own capital funds won again in this kind " the bank can assign a multiple of it (8 - eighteenfold) as new line of credit against usual collateral to the final consumer.
This new volume of loans amounts to counted on the factor 12 US$ 96 million. From this capital Geldinstitut nevertheless gains 7.68 million with an accepted interest yield of 8% US$. The bank has now altogether US$ 15.68 million (purchase price plus gained interest).
After one year and one day the debenture bond is due placed at a value of the nominal value of US$ 10 million. Thus a surplus of US$ remains to the bank 5.68 million.
How thereby are the net yields for the investor gained?
Due to international regulations and customs it is not permitted the emitting banks to spend such papers without these are in advance paid.
On the other side it is forbidden because of legal regulations to the buyer of these papers (pension fund, insurance, industrial enterprise etc.) to pay these before they are not in their property.
Due to its capital of the private investor takes over thus in each case the role of the bridging finance, although such is not actually accomplished. The proof is only sufficient that the purchase price for the paper is deposited.
The private capital investment is as it were the necessary link between the banks, those the paper emits and the last-finite buyers.
In all rule the completion of such a business lasts less than one day, which means that the investor capital can be used even several times daily for the necessary capital proof. The profit between purchase and sales, obtained in each case, is called „fall out " (yield) and divided and paid under the involved ones.
Information to the trade with bank instruments
1. Each bank, which lets its balance over ICC (internationally Chamber OF Commerce) in Paris examine annually and as result a certain „Rating ", e.g. „AAA " receives, may in agreement with the FED (Federal reserve bank, the USA), in its own name US$ debenture bonds at a value of 10% of their own capital funds per year emissionieren (give change) and into the trade flow to let.
2. The trade with these bank instruments is subject determined, from the ICC given and of the FED controlled rules.
The most substantial of it are:
2.1 the base value of a standard warranty US$ 500 millions, the running time amounts to becomes with 10 years and one day with interest charges of 7,5% per annum. specified. The differences of the different certified formats - there are at present 247 - predominantly lie in the text. The available explanations concentrate on the standard format.
It is in such a way organized 2.2 the trade that the papers arrive exclusively over with the FED accredited Cuttinghouses into the market. These have so-called Commitments (obligations to take delivery opposite the banks). The task of these Cuttinghouses is the assignment of direction stepping ion numbers, cutting the instruments on tradable sizes of (US$ 10, 25, 100 millions ) and the input of the freed papers into the international communication systems (Reuters, Euroclear, Blomberg, etc.).
2.3 the Cuttinghouse buys the papers to 70 - 75% of the nominal value, depending upon rating of the issuing bank and sells these again, in the framework of Commitments, as so-called „fresh CUTs ", to the broker houses and Trader licensed by the FED (primary market) and arrives finally at a purchase price of 95- 100% at the user (insurance, banks, pension fund, etc.).
2.4 the Tradingbusiness is very lucrative, because the papers constantly increase on the way to the user in value. For this reason it is subject to extremely strict regulations and the monitoring mechanism of the FED. These contain margins and appropriation of profits editions. A large part of the profits obtained with the trading flows into projects generally eligible for promotion and into projects, which lie in the context of international development assistance.
2.5 the Tradingcompanies need a constant central supply, in order to be able to fulfill their Commitments. The origin of these funds is limited to a large extent to private people, private business and societies, who work with the funds third.
States, banks, insurance companies, etc. remain excluded from the actual Tradingbusiness. Private means are increased by this method; on the one hand in favor of the investor and on the other hand over the projects promoted with the profits the economy is set in motion.
3. In the further one the trade with bank instruments from the following view is favourable:
3.1 for the spending bank
In accordance with ICC conventions such warranties in the bank balance sheet must be proven only as contingent liability. This has the consequence that the bank strengthens its own capital funds basis by the expenditure of such debenture bonds in the order of magnitude of the papers spent of 75% of the nominal value.
Since now the bank in the order of magnitude of the 12-18 times of their own capital funds in the form of customer credits may spend, it is outstanding served with this instrument!
3.2 for the principal-strong investor
If an investor for the purchase of such papers makes capital available and with a Tradinghous that contractually agreed upon a regulated customer market has, it profits itself and can from its a mark plant „revolving " on a net yield of at least 100 - 200% per year count. The present Treaties take usually 1 year.
The Trader uses the capital of the investor only in principle as capital proof for the purchase of the papers, which it pays then on third sold and with their money.
This on and sales of bank instruments can be accomplished per week 2-3 times during approx. 40 bank weeks per year. The investor participates per trade with a net amount of approx. 2% of the capital investment count.
4. The conditions of participation/- achievements for the private investor are as follows:
4.1 Filling out a Letter of Intent and present a proof of funds
4,2 conclusion of a contract with the Tradingcompany if necessary. Opening of an account limited action authority for the Trader if necessary. Commission contracts.
4,3 program start capital transfer
For the capital transfer and - security there are two variants:
? the transfer takes place on, via the investor with the liquidation bank opened, own account. To ensure in this case the bank assigned that the account balance always corresponds to the plant value, or a bank instrument of same or higher priority.
? the investor transfers the capital investment by SWIFT to the account of the Tradingcompany and receives against it step by step a bank guarantee, at least in the height of the capital investment, from a Prime bank (Top 25 Europe).
After expiration of the contract the capital investment of the investor is returned to the warranty against return (with the 2. Variant). eely over it order.
Recapitulatory example
A.) a bank with the Rating „AAA " (soil quality) spends the debenture bonds paid interest of annually 5% on a running time of 10 years. Around fewer own capital funds will usually bind in this business over 100 millions presented debenture bond quite often to a certain percentage with investor funds up-fed.
b.) Buyer X, a trustee of the investor sums „gepoolt " has, acquires the debenture bond for 83 millions US$ and sells the paper on the same day at buyer Y for 86 millions US$. With 3 millions US$ proceeds additional the again freely available 83 millions US$ already acquires the trustee on the same day a further „AAA " - debenture bond for for example 86 millions US$ and sells these immediately again for 89 millions US$ ........ etc.
From this daily acquisition and sales of debenture bonds with first-class soil quality trustees, how also the following buyers, who can act such a paper, obtain 12 and more per cent weekly.
This, until the paper comes for example with the pension fund of an insurance as user to lying. The profits obtained up to then are disbursed after departure of the own profit margin, however still in according to delightful height, annually, as also under- year old to the investors of the trust pool. That is the daily, world-wide taking place reality of the Short term Investments (STI).
(Excerpt from the financial magazine „my money ", expenditure 8/95) 25% (and more) can earn investors with the trade with bank guarantees.
The bank guarantee trade
This method is still to a large extent unknown in Germany. In the USA it however since longer practiced and also in Switzerland gives it for some time so some investor, who increased its fortune thereby considerably. But how the whole functions?
A bank with good Leumund would like to borrow itself money. For this reason it publishes a debt paper. Depending upon maturity it concerns thereby a SLC (Standby type character OF Credit), which is abgezinst like a Zero bond and a running time of one year has. Longer current papers have as exotic abbreviations, as PNB (Prime bank Promissory note) or PBG (Prime bank Garanties).
These papers run ten years and one day. They can be abgezinst. It however e.g. is. also possible that they exhibit a coupon of 7,5%.
The Clou lies in the fact that other banks cannot purchase due to legal defaults these „for notes " in the Ersterwerb.
They are much more dependent on the secondary trade. Since the banks want to have such „notes however absolutely for own capital funds heightening ", they offer to the private investor a small Aufgeld. Thus a SLC without interest (one year running time) costs 86% of the nominal value, in the secondary trade it for 87.5% is however already acted.
This 1.5%ige difference is apparently not much. It is to be noted however that the purchase and sales often take place on the same day. A dealer buys such a notenote note for a customer only, if he is safe to sell it in all-shortest time as secondary note to a bank. This often happens within 2 hours.
Like that it is possible to transact on one day two or three business of this kind.
The papers are absolutely safe. It concerns without exception with the emitters the 100 world largest or 25 European largest banks. A disadvantage is however given.
Who would like to participate directly in the market, has to put on at least 10 million US$. There are however capital poolers, which summarize the money of several investors. Then one is already starting from an amount of US$ 100,000 and/or. US$ 250,000 thereby.
We regard once the Procedere with a large investor. This opens with a bank, e.g. in Switzerland or Liechtenstein, an own account, over which only it is order-entitled. The dealer who can be assigned may acquire single personally SLC's or PBQ's in „the course over - course " business.
Cash withdrawals on the part of this dealer are absolutely impossible by this account with the liquidation bank.
There are only two possibilities:
Either the money of the investor on the account with the bank or it is is put on in a notenote note. Large investors can transact this business several times. Thus it comes that the guaranteed minimum net yield can be substantially exceeded. 100% - 250% in the year are not impossible therefore if accordingly often can be acted. The 1.5% profit margin add itself in such a way on a considerable amount.
They see: Many small profits lead also to a fortune. With trade with American Notes a certain foreign exchange risk is not to be pointed from the hand to. But this hardly plays a role in view of the height of the profits which can be expected.
Generally spread and in most cases correct opinion that high profit within a short time, which does not apply after, which degrees of the speculation reflect, with this plant form to rule.
The participation in the so-called „interbank trade " is not a speculative investment. The adjusted capital is either credited or by werthaltige, irrevocable and examined warranties secured.
Note: Straight ones within this range one can be brought by dubious mediators around its whole, invested money!
These transactions are made directly by euro CLEARs - the Clearing-System for international security transactions, which was created 1968 in Brussels.
Euro CLEAR is world-wide the largest Clearing-System for international securities For more information, please fill out the form:
Unfortunately, the financial crisis and the spreading of the benefits of the Secondary Market through the mass media and the Internet have caused that a multiplicity of intermediaries and brokers award themselves certain privileges such as shortcuts to Banks, Traders and Comittments Holders. This has led to a series of criminal practices such as the ones discussed below:
Questions and answers
Q. - You are requested an advance funding to start the process.
A: The client should never make any advance payment to carry out the handling process. Be immediately suspicious of anyone who asks for an upfront capital.
Q. - Someone demands yours funds to be transferred to an account on behalf of a third party.
A: The client's assets should NEVER be transferred or given to third parties. They will always remain deposited on the
investor's account.
Q. - You are told that they work or have direct contact with a platform supported, supervised, approved, audited, affiliated with the FED (Federal Reserve).
A: Do not trust this kind of comments. We would like to make a small comment regarding the issue of the "platforms". Please be careful and alert about this particular subject. This companies or platforms, as they call themselves, are nothing but a group of "x" people who decide to create a society and claim to have contact with a trader. The reality is quite different, since the vast majority of them have no connection with any real trader and what they do is to receive the assets themselves through a SWIFT MT-760 and then try to "settle" the operation as failed. This is a very common practice among the so-called platforms It is extremely dangerous and can cause, in most cases, asset loss and/or numerous costs to the client. For thisreason many programs are never opened or the investor loses his/her ASSETS.
Q. - Intermediaries who claim to have relationships and contacts with PROGRAM MANAGERS and suggest that you assets should be managed by this people.
A: This is a fairly common practice in recent years. The investor, through a Corporate Resolution, appoints the broker as an authorized person to manage the client's assets and sign the Trading Agreement. This option is totally non-viable. An intermediary or broker can never be the person signing the Trading contract unless the broker is assigned indistinctly on the bank account where the resources are deposited (the client is unlikely to choose this option given the risk involved)
Q. - You are told that your operation can be placed in less than 5 days.
A: As you can read in the Procedures section, there is a series of steps that must be met during the handling process and each of them has its proper timing: asset verification, customer düe diligence, signing of the Trading agreement, program preparation, etc. It is mathematically impossible for an investor to enter trading in just 5 days.
Q. - You are told that the Private Placement Program takes place on third world banks.
A: A PPP is executed by a Trader with a related company and not by a bank. Traders rely on TOP 10 banks to obtain credit lines and to collect the investor's yields.
Q. - You are offered exorbitant returns for minimum quantities.
A: This type of programs are based on buying and selling financial instruments, mainly MTNs (Medium Term Notes). The yields will depend on the amount of paper issued and the trader's available capital to make such purchases. The more capital is available, major purchases, major cuts and therefore a higher profitability will be obtained when such instrument's sales are made. The less capital, less purchases, and therefore less final profitability.
Q. - You are told that by renting an instrument you can access a PPP, and they will be responsible for the rental and the placement.
A: This is the second cause of fraud. The approach is the following: For a very low price you can rent an instrument (usually a Bank Guarantee) in order to enter the program. The second part of the process (entering in program) is done verbally. These same gentlemen who are responsible for renting the instrument for the investor, will later place the client in program. The reality is quite different. It is not possible to enter a PPP just by being the recipient of the assets -and not their owner-. These gentlemen who were involved in the mediation for the rental of the instrument through a leasing company, will collect their comission and the investor won't be able to report such fact, because everything will be in good standing and the respective contractual arrangements for the rental of the instrument was previously signed by the investor. At last, the truth is that the investor turns out to be the recipient of an asset that cannot access the program, when that was its main goal, and therefore will suffer the consequent economic decline that implies the payment for the rent of the instrument. To place an asset as PPP, the client must appear both as APPLICANT as well as RECIPIENT. Also, the asset must be deposited on the client's account. The renting or leasing instruments usually show the financial company that rents as APPLICANT and the client as RECIPIENT.
Q. - You are told that they can do programs directly through a contact with the bank.
A: Banks do not make programs directly with the Client. The client should perform the operation through an Authorized Trader.
Q. - You are offered access to a program without blocking the assets.
A: The client's available resources must be blocked on the investor's account so that the trader can obtain the credit line needed to enter the program. A bank will never grant a credit line if this capital was not previously blocked in favor of the trader's corporation. So beware of anyone who tells you that you can enter the into program without blocking the asset / funds.
Q. - You are told that the asset's origin is not a relevant matter and that it can be placed without inconveniences.
A: All Assets (BG, CD, SKR, SBLC, etc.), through the issuing bank, should be confirmed as clear, clean and with a non-criminal origin. The confirmation or ratification documents should always be issued by banks headquartered within the European Community.
We hope we were of big help with this little FAQ to detect and prevent possible fraud.
BG (Bank Guarantee)
The emission Model of the Bank Guarantee will be the one that the Bank considers appropriate given the conditions that the client gives preference to, because it is the issuing bank itself the one that has the different types of models for each case.
The basic requirements that the Bank Guarantee must meet are the following:
• The asset must be placed on the customer's account, with FULL BANK RESPONSABILITY
• The asset must be completely available for the client
• The asset must be ASSIGNABLE, DIVISIBLE AND TRANSFERABLE
• The asset should be workable via SWIFT (MT799 / MT760)
• The asset should be verified from BANK TO BANK
Therefore, within the scope of the Bank Guarantee there are different models, the ICC 500, the 458 and the 600, included 458 with revision 500.
SBLC (Stand By Letter of Credit)
The SBLC Model will depend on the agreement reached with the recipient.
Therefore, depending on the agreement, the issuing bank issues a SBLC for the beneficiary based on the asset the client has provided.
The SBLC must always be set by ICC rules Publ. 500 / 600.
It's important to point out that in order to issue a SBLC and use it as collateral it must be Assignable, Divisible and Transferable.
[download id=50]
POF (Proof of Funds)
A POF, also known as Proof of Funds, is nothing but a bank document that certifies the client's funds.
This type of document is valid for 5 banking days.
This POF must be signed by two bank officials and stamped by the bank, besides stating that the cash is good, clear, clean and with a non-criminal origin.
[download id=45]
CD (Certificate of Deposit)
Must meet the same requirements and conditions as any other asset.
• Must be placed on the customer's account with FULL BANK RESPONSABILITY
• Must be Assignable, Divisible and Transferable.
Below we attach the standard model of a CD issue.
[download id=46]
LOI (Letter of Intent)
LOI, also known as "Letter of Intent", is a formal letter in which the client provides and declares his/her intention to access a Private Placement Program.
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Authorization to Verify
This authorization is intended for the Program Manager so that asset verification can be carried out successfully. This verification is ALWAYS carried out from BANK TO BANK, as required by banking operations.
For such authorization to be successfully completed, it must include the names, last names and telephone numbers of the bank officials, as well as their identification number. COPIES should be delivered to this bank officials so that they do not miss the time when the verification by the Traders bank takes place
[download id=48]
RWA Letter
Bank ratification document and essential in the final stages of the administative proceeding. With this document, the bank confirms:
* The asset is good, clear, clean and with a non-criminal origin
* The asset does not have any kind of external charge
* The asset can be confirmed via SWIFT MT799 - MT760
It must be signed by two bank officials and stamped by the same bank. With this document, the bank agrees to the issuance of Swift MT-760 when the client orders it and to the coordenates that the client shall indicate.
[download id=49]
CIS (Client Information Sheet)
Known as CIS, the Client Information Sheet is the document that identifies the Investor with all their data.
This document will be essential in order to present the operation at the Trader's office and therefore initiate a process of "Düe diligence".
[download id=43]
What are the Private Placement Programs, better known as "PPP" and the minimum amount to get into program?
The Private Placement Programs or High Yield Investment Programs, are private programs based on the purchase/sale of bank financial instruments (mainly MTNs). These instruments are bought fresh-cut with a significant discount on their face value to then be resold at a higher price in the secondary market. The difference between the sale price and the purchase price is the trader/investors gain. These programs are offered to clients with high spending power and can only be executed by Traders with a license to carry out such operations. An important part of the returns are destined to humanitarian causes and to the financing of business projects. Therefore, any institution takes precedence on this type of operation.
The minimum amount is $10,000,000.00 (TEN MILLION DOLARS)
How come so few investors know about these programs? Are they new?
These programs are not publicly known, and only a very small group of investors that own funds or Bank Instruments may have access to them -solely and exclusively by invitation-. They are not new, they are more than 55 years old.
Are they safe?
The Private Placement Programs imply no risk for the investor. The purchase/sale of MTNs is "risk-free" provided that the Trader is guaranteed the exit to the instrument that was previously acquired. If we are dealing with a real Trader, such exit will be guaranteed by contract and therefore there wont be any risks for the investor. Before the start of the program, the Trader will "prepare" such program planning the future purchases and sales and knowing beforehand the benefits that each of them will bring. In a second phase the program will be run, which means nothing but carrying out the purchases/sales that were previously planned and negotiated with the cut houses.
Should I deliver or transfer my funds to the Trader?
In any case. The funds will always remain on the investors account. To carry out the program it will only be necessary to lock them. The investor must choose one of two available locking options: Swift MT-760 or the assignment of the Trader on the account. This blocking will remain for the length of the program.
Do I run any risks by submitting these documents and why are they so important?
You are not under any risk. Their presentation is imperative and important since it is the only way to check and verify the quality of the clients funds or assets. In this business the investor always has to take the first step by providing the required documentation to avoid falling into the"soliciting" rules.
The POF (Proof of Funds) will be issued by the Bank where the investor has the resources deposited, demonstrating their quality and amount, but does not enable ANYONE to move them or dispose of them.
What procedure should I follow to deliver these documents?
Once all the required documentation is submitted (SET Compliance + bank Documentation), we proceed to verify the
funds/assets the client brings and to the subsequent Düe Diligence (clients under study for acceptance).
Once these preliminary investigations are successfully completed, within 48-72 hs. the Program Manager will contact the client for a formal presentation and also to agree on how to block the funds. Then, the investor will receive a pre-contract to be signed and later sent to the Traders office. Then, it will be the Trader in person who will contact the client.
How and when do I collect my interests or profits?
Yields are collected weekly at the bank designated by the Trader. Ever since the collection of the first profit, this capital will be completely available for the client.
Can I partially or totally remove the invested amount?
The invested capital will remain locked for the length of the program.
How should my funds be?
Clear, clean and with a non-criminal origin. For every asset the location of the deposited resources should appear clearly stated by the bank in question. If at the time of verification, there is any doubt on this matter, the transaction will be automatically dismissed.
Can I ask for references from previous transactions?
NO, as it represents a violation of the Rules of Confidentiality and of the Non-Discovery Agreement
1. The customer's bank must be a TOP50.
2. It can´t be a bank from a Communist country.
3. The two options available to access a Private Placement Program are:
1. Cash
2. Any of the following financial instruments:
BG (Bank Guarantee),
CD (Certificate of Deposit),
MTN (Medium Term Notes),
SBLC (Stand By Letter of Credit),
SKR (Safekeeping Receipt).
These instruments should have FULL BANK RESPONSABILITY by the issuing bank.
4. The asset or cash is not feasible unless the bank is based in Europe. Any bank from South America or Asia must be
based in Europe and confirm the client's assets through a "Confirmation Letter" from Europe (For Example: London)
5. If the bank is not strong enough to fend for yourself, you can try to get a bank will take full bank responsibility for banking
asset.
6. If you are not the owner of the asset or cash, you can´t enter into the program unless you be assigned to the bank
account where the asset is deposited.
7. The asset will be blocked the time estimated by contract. So before being blocked, your asset must have a reasonable
life cycle (maturity date) that can be worked.
8. The bank must be able to block the assets through a SWIFT MT-760.
9. If the asset is gold, Hallmark documents must be provided.
Ever since the irruption of many brokers who claim to be experts on the sector, besides declaring to have contacts with alleged "platforms and/or Traders, we noticed the absolute lack of knowledge there is about banking tools such as the issuance of a SWIFT MT-760. For this reason, and to increase the awareness of the general public, we decided to create this article to explain the actual operative for issuing this type of "Guarantee".
We will analyze what a SWIFT is, on what is based the issuance of a MT-760 as well as the emission operative.
First of all, we would like to punctuate that SWIFT is a Belgian company created in 1973. Currently, SWIFT has advanced by leaps and bounds and nowadays more than eight thousand banks use the system daily as a tool for any comercial activity.
What is a MT-760?
The MT-760 is a kind of SWIFT message known as Guarantee that, as its name suggests, works as a bank guarantee. Therefore, it is important be warned about its danger before malicious individuals.
The investor's Bank issues a SWIFT MT-760 using an asset as base (CASH, BG, CD, MTN, etc). This asset is issued in favor of the recipient (the recipient of the MT-760). This kind of message is commonly used in the Commodities sector or in businesses such as the import or export of any product. The issuing bank uses the asset as a guarantee in favor of the client receiving the MT-760. It is also important to note that this is the classic locking option when it comes to participating in a Private Placement Program.
SWIFT MT-760 emission operative
Prior to the emission of a SWIFT MT-760, the Issuing Bank will emit a SWIFT MT-799 (Free Message). The MT-799 is issued as a Pre-Advice (notifying the receiving bank that a guarantee in the form of MT-760 will be issued). Then, in the next 24/48 hours, the receiving bank emits a SWIFT MT-799 to the Issuing Bank confirming that they are ready to receive the MT-760. In the next 24/48 hours, the client's bank proceeds to the issuance of the SWIFT MT-760, with the acceptance of the receiving bank. Thus, the asset is locked in favor of the recipient for the time specified in the text of the SWIFT message.
To explain it in a simpler and more graphical manner, this will appear detailed on the Image 1 located below the text.
If a MT-760 is issued, can it be revoked?
Absolutely NO. Many unscrupulous brokers and alleged platforms want the investor to believe that the MT-760 can be withdrawn without inconveniences when the investor orders it. The reality is quite different.
When a SWIFT is issued and accepted by the receiving bank it is totally IRREVOCABLE. It can only be revoked if the recipient of the MT-760 gives consent to his/her bank to proceed with the withdrawal.
What assurance is there regarding a MT-760?
When a client issues a SWIFT MT-760 for a period of (for example) 10 months, in addition to being irrevocable, this involves serious risks since the so-called platforms or intermediaries who claim to have contact with a trader can interact with the asset and this lead to its loss. And these are terrible consequences for the client.
We advise the client to make sure that the person he/she will be working with is a real Trader. Once the Trading agreement is in front of the client, they should ensure that they are dealing with the right person/company.
What happens if I issue a SWIFT MT-760 to a real Trader?
Prior to the issuance of the MT-760, the signing of the Trading agreement will take place. Here we will find the banking coordinates of the Traders bank where the client will need to issue the SWIFT.
Upon the issuance and receipt of the MT-760, it will be the same trader the one in charge of "monetizing" such SWIFT, and with the amount of credit obtained, the program will be accessed. It is important to point out that, being the Traders company the recipient of the SWIFT and the one in charge of obtaining the credit line, it will also be the one responsible for its refund and for confronting all incurred expenses.
Table 2 Customer Payments and Cheques
SWIFT - Message Type Description
MT 101 Request for Transfer
MT 102 Multiple Customer Credit Transfer
MT 102+(STP) Multiple Customer Credit Transfer (STP)
MT 103 Single Customer Credit Transfer
MT 103+(REMIT) Single Customer Credit Transfer (REMIT)
MT 103+(STP) Single Customer Credit Transfer (STP)
MT 104 Customer Direct Debit
MT 105 EDIFACT Envelope
MT 107 General Direct Debit Message
MT 110 Advice of Cheque(s)
MT 111 Request for Stop Payment of a Cheque
MT 112 Status of a Request for Stop Payment of a Cheque
MT 190 Advice of Charges, Interest and Other Adjustments
MT 191 Request for Payment of Charges, Interest and Other Expenses
MT 192 Request for Cancellation
MT 195 Queries
MT 196 Answers
MT 198 Proprietary Message
MT 199 Free Format Message
Table 3 Financial Institution Transfers
SWIFT - Message Type Decription
MT 200 Financial Institution Transfer for its Own Account
MT 201 Multiple Financial Institution Transfer for its Own Account
MT 202 General Financial Institution Transfer
MT 202+(COV) General Financial Institution Transfer (COV)
MT 203 Multiple General Financial Institution Transfer
MT 204 Financial Markets Direct Debit Message
MT 205 Financial Institution Transfer Execution
MT 205+(COV) Financial Institution Transfer Execution (COV)
MT 207 Request for Financial Institution Transfer
MT 210 Notice to Receive
MT 256 Advice of Non-Payment of Cheques
MT 290 Advice of Charges, Interest and Other Adjustments
MT 291 Request for Payment of Charges, Interest and Other Expenses
MT 292 Request for Cancellation
MT 295 Queries
MT 296 Answers
MT 298 Proprietary Message
MT 299 Free Format Message
Table 4 Treasury Markets, Foreign Exchange, Money Markets, and Derivatives
SWIFT - Message Type Decription
MT 300 Foreign Exchange Confirmation
MT 303 Forex/Currency Option Allocation Instruction
MT 304 Advice/Instruction of a Third Party Deal
MT 305 Foreign Currency Option Confirmation
MT 306 Foreign Currency Option
MT 307 Advice/Instruction of a Third Party FX Deal
MT 320 Fixed Loan/Deposit Confirmation
MT 321 Instruction to Settle a Third Party Loan/Deposit
MT 330 Call/Notice Loan/Deposit Confirmation
MT 340 Forward Rate Agreement Confirmation
MT 341 Forward Rate Agreement Settlement Confirmation
MT 350 Advice of Loan/Deposit Interest Payment
MT 360 Single Currency Interest Rate Derivative Confirmation
MT 361 Cross Currency Interest Rate Swap Confirmation
MT 362 Interest Rate Reset/Advice of Payment
MT 364 Single Currency Interest Rate Derivative Termination/Recouponing Confirmation
MT 365 Single Currency Interest Rate Swap Termination/Recouponing Confirmation
MT 380 Foreign Exchange Order
MT 381 Foreign Exchange Order Confirmation
MT 390 Advice of Charges, Interest and Other Adjustments
MT 391 Request for Payment of Charges, Interest and Other Expenses
MT 392 Request for Cancellation
MT 395 Queries
MT 396 Answers
MT 398 Proprietary Message
MT 399 Free Format Message
Table 5 Collections and Cash Letters
SWIFT - Message Type Decription
MT 400 Collections: Advice of Payment
MT 405 Collections: Clean Collection
MT 410 Collections: Acknowledgment
MT 412 Collections: Advice of Acceptance
MT 416 Collections: Advice of Non-Payment/Non-Acceptance
MT 420 Collections: Tracer
MT 422 Collections: Advice of Fate and Request for Instructions
MT 430 Collections: Amendment of Instructions
MT 450 Cash Letters: Cash Letter Credit Advice
MT 455 Cash Letters: Cash Letter Credit Adjustment Advice
MT 456 Cash Letters: Advice of Dishonor
MT 490 Advice of Charges, Interest and Other Adjustments
MT 491 Request for Payment of Charges, Interest and Other Expenses
MT 492 Request for Cancellation
MT 495 Queries
MT 496 Answers
MT 498 Proprietary Message
MT 499 Free Format Message
Table 6 Securities Markets
SWIFT - Message Type Decription
MT 500 Instruction to Register
MT 501 Confirmation of Registration or Modification
MT 502 Order to Buy or Sell
MT 503 Collateral Claim
MT 504 Collateral Proposal
MT 505 Collateral Substitution
MT 506 Collateral and Exposure Statement
MT 507 Collateral Status and Processing Advice
MT 508 Intra-Position Advice
MT 509 Trade Status Message
MT 510 Registration Status and Processing Advice
MT 513 Client Advice of Execution
MT 514 Trade Allocation Instruction
MT 515 Client Confirmation of Purchase or Sale
MT 516 Securities Loan Confirmation
MT 517 Trade Confirmation Affirmation
MT 518 Market-Side Securities Trade Confirmation
MT 519 Modification of Client Details
MT 524 Intra-Position Instruction
MT 526 General Securities Lending/Borrowing Message
MT 527 Triparty Collateral Instruction
MT 528 ETC Client-Side Settlement Instruction
MT 529 ETC Market-Side Settlement Instruction
MT 530 Transaction Processing Command
MT 535 Statement of Holdings
MT 536 Statement of Transactions
MT 537 Statement of Pending Transactions
MT 538 Statement of Intra-Position Advice
MT 540 Receive Free
MT 541 Receive Against Payment Instruction
MT 542 Deliver Free
MT 543 Deliver Against Payment Instruction
MT 544 Receive Free Confirmation
MT 545 Receive Against Payment Confirmation
MT 546 Deliver Free Confirmation
MT 547 Deliver Against Payment Confirmation
MT 548 Settlement Status and Processing Advice
MT 549 Request for Statement/Status Advice
MT 558 Triparty Collateral Status and Processing Advice
MT 559 Paying Agents Claim
MT 564 Corporate Action Notification
MT 565 Corporate Action Instruction
MT 566 Corporate Action Confirmation
MT 567 Corporate Action Status and Processing Advice
MT 568 Corporate Action Narrative
MT 569 Triparty Collateral and Exposure Statement
MT 574 (IRSLST) IRS 1441 NRA Beneficial Owners List
MT 574 (W8BENO) IRS 1441 NRA Beneficial Owner Withholding Statement
MT 575 Statement of Combined Activity
MT 576 Statement of Open Orders
MT 577 Statement of Numbers
MT 578 Statement of Allegement
MT 579 Certificate Numbers
MT 581 Collateral Adjustment Message
MT 582 Reimbursement Claim or Advice
MT 584 Statement of ETC Pending Trades
MT 586 Statement of Settlement Allegements
MT 587 Depositary Receipt Instruction
MT 588 Depositary Receipt Confirmation
MT 589 Depositary Receipt Status and Processing Advice
MT 590 Advice of Charges, Interest and Other Adjustments
MT 591 Request for Payment of Charges, Interest and Other Expenses
MT 592 Request for Cancellation
MT 595 Queries
MT 596 Answers
MT 598 Proprietary Message
MT 599 Free Format Message
Table 7 Treasury Markets, Precious Metals
SWIFT - Message Type Decription
MT 600 Precious Metal Trade Confirmation
MT 601 Precious Metal Option Confirmation
MT 604 Precious Metal Transfer/Delivery Order
MT 605 Precious Metal Notice to Receive
MT 606 Precious Metal Debit Advice
MT 607 Precious Metal Credit Advice
MT 608 Statement of a Metal Account
MT 609 Statement of Metal Contracts
MT 620 Metal Fixed Loan/Deposit Confirmation
MT 643 Notice of Drawdown/Renewal
MT 644 Advice of Rate and Amount Fixing
MT 646 Payment of Principal and/or Interest
MT 649 General Syndicated Facility Message
MT 690 Advice of Charges, Interest and Other Adjustments
MT 691 Request for Payment of Charges, Interest and Other Expenses
MT 692 Request for Cancellation
MT 695 Queries
MT 696 Answers
MT 698 Proprietary Message
MT 699 Free Format Message
Table 8 Treasury Markets, Syndication
SWIFT - Message Type Decription
MT 700 Issue of a Documentary Credit
MT 701 Issue of a Documentary Credit
MT 705 Pre-Advice of a Documentary Credit
MT 707 Amendment to a Documentary Credit
MT 710 Advice of a Third Banks Documentary Credit
MT 711 Advice of a Third Banks Documentary Credit
MT 720 Transfer of a Documentary Credit
MT 721 Transfer of a Documentary Credit
MT 730 Acknowledgment
MT 732 Advice of Discharge
MT 734 Advice of Refusal
MT 740 Authorization to Reimburse
MT 742 Reimbursement Claim
MT 747 Amendment to an Authorization to Reimburse
MT 750 Advice of Discrepancy
MT 752 Authorization to Pay, Accept or Negotiate
MT 754 Advice of Payment/Acceptance/Negotiation
MT 756 Advice of Reimbursement or Payment
MT 760 Guarantee
MT 767 Guarantee Amendment
MT 768 Acknowledgment of a Guarantee Message
MT 769 Advice of Reduction or Release
MT 790 Advice of Charges, Interest and Other Adjustments
MT 791 Request for Payment of Charges, Interest and Other Expenses
MT 792 Request for Cancellation
MT 795 Queries
MT 796 Answers
MT 798 Proprietary Message
MT 799 Free Format Message
Table 9 Travellers Cheques
SWIFT - Message Type Decription
MT 800 T/C Sales and Settlement Advice [Single]
MT 801 T/C Multiple Sales Advice
MT 802 T/C Settlement Advice
MT 824 T/C Inventory Destruction/Cancellation Notice
MT 890 Advice of Charges, Interest and Other Adjustments
MT 891 Request for Payment of Charges, Interest and Other Expenses
MT 892 Request for Cancellation
MT 895 Queries
MT 896 Answers
MT 898 Proprietary Message
MT 899 Free Format Message
Table 10 Cash Management and Customer Status
SWIFT - Message Type Decription
MT 900 Confirmation of Debit
MT 910 Confirmation of Credit
MT 920 Request Message
MT 935 Rate Change Advice
MT 940 Customer Statement Message
MT 941 Balance Report
MT 942 Interim Transaction Report
MT 950 Statement Message
MT 970 Netting Statement
MT 971 Netting Balance Report
MT 972 Netting Interim Statement
MT 973 Netting Request Message
MT 985 Status Inquiry
MT 986 Status Report
MT 990 Advice of Charges, Interest and Other Adjustments
MT 991 Request for Payment of Charges, Interest and Other Expenses
MT 992 Request for Cancellation
MT 995 Queries
MT 996 Answers
MT 998 Proprietary Message
MT 999 Free Format Message
1.- Brokers who contact directly to investors saying they are members of the Trader´s Office. Absolutely false. Trader's
Office never contact with investors at an earlier stage. Program Manager is the person who provides the first contact with the client once the operation has been submitted and verified.
2.- "Trading Platforms" which say they have direct contact with a real Trader and after you can verify that´s not true. They never show you a real trading contract, Trader´s name is not identified, etc...
3.- Investors who do not have enough capital to access to the program and they decide to rental an instrument (leasing). Instruments of leasing are not valid for entry to PPP because the investor is not the "applicant" (owner) of assets (he is only the beneficiary) and makes not possible the issuance of a Swift MT-760 (one of the two blocking options) in favor of banking trader coordinates.
4.- Investors who do not have the money in a bank acceptable. They have their funds in an offshore bank that does not allow the verification bank to bank.
5.- Investors who do not have a good explanation from the origin of money. The capital which will access into the program must be good, clean, clear and non-criminal origin.
6.- Investors who do not have a qualifying asset to be worked. Bonds considered "trash" or cases in which the asset is deposited in a security house and has no full bank responsability. Any asset to be worked must have full bank responsability by a TOP50 Bank.
7.- Investors who try to enter into the program following their own rules. They indicate the procedure to follow, the way the asset must be blocked, etc. This is not the right way to participate in a PPP. In this financial opportunity, the process is marked by the Trader and not by the investor. If the investor does not follow the procedure imposed by the trader, he is not valid for this financial opportunity.
8.- Investors who do not cooperate enough with the management group or they are delayed too much when they have to send the documentation requested by the management group.
9.- Investors who has an asset can´t be verified on a bank to bank basis
10.- Investors who are in a black list and not exceed the due diligence.
Introduction
We offer to the investors the opportunity to access to a Buy-Sell MTNs Customised with no risk to the investor.
1 .- The investor purchases a MTN "Fresh Cut" at a rate of approximately 30% of its face value. (Example: A MTN fresh cut from a TOP5 bank that has a face value of €1,000M, the investor will purchased this by €300M). The MTN will be issued on behalf of the investor and will be paid through Swift MT-103/23 (The payment is not made until the MTN is under the inverstor´s name and uploaded to the Euroclear Screen).
2 .- Before purchasing the MTN, the investor will sign the sale contract with the exit buyer which guarantees the sales of the MTN. In this contract will appear the Trust´s Company Name that will purchase the MTN of the investor. So the investor can see with this procedure that there is no risk for him because before purchasing the MTN, the investor has already signed the sale contract and he has the safety that his MTN will be sold to a Trust Company.
3 .- The operation is calculated for the investor makes a profit of 50% on each transaction. For example, a MTN with a face value of €1,000M, the investor will purchase this with an important discount. The purchasing's price will be around 30% of his face value. So, in this case, the inverstor will purchase the MTN for a price of €300M (30% of €1.000M). Before purchasing the MTN, the investor will sign the sales contract with the exit buyer (Trust Company) for a value of 450M.
4 .- The investor has the posibility to "reinvest" the profits and repeat the operation every day (four operations a week), always following the same general procedure.
Detailed Procedure
We offer to the investors the opportunity to access to a Buy-Sell MTNs Customised with no risk to the investor.
• The "Operator Group" has the direct contact with the cutting house which issues the Medium Term Notes (MTNs) and the Bank Guarantees (BGs) Fresh Cut (FC) and takes care of any legal procedures for placing the MTNs on the Euroclear Screen.
• The FACILITATOR Group provides the investors of Fresh Cut MTNs
• The MTNs will be issued on behalf of the investor, issued by TOP 5 to TOP 25 banks and their prices depend on the banks rating AAA or AA.
• The first tranch begins the week after the Investors complete set of documents has been presented and it will be for a minimum face value of € 300 M.
• The subsequent tranches will follow on a daily base, 4 days a week and their face values depend on the Investors financial capacity. (Minimum of 300M)
Advantage to Work With "Trust" Companies
• Trust Companies can not provide proof of funds so they can not purchase MTNs or BGs Fresh Cut.Here is where the investor get into the game: He buys the MTN Fresh Cut to sell them within 24 hours as Slightly Seasoned (SS)
• A Trust Company will only be authorized to purchase if they can show they have an exit seller.
• Profitability 50% per day on 4 days per week.
Important: Once the investor has passed due diligence, before to sign the purchase contract of the MTN Fresh Cut, he will sign the sale contract with the exit buyer of MTN Slightly Seasoned. (We will provide the draft contract)
Summary of Procedure (Sales of Fresh Cut to Slightly
Seasoned)
• Buyer sends the following docs to the Seller:
a) Letter of Intent. (LOI).
b) Client Information Sheet. (CIS).
c) Color Copy of Passport.
d) Corporate Resolution. (Only if the investor is a Company) (CR).
• Seller sends copy of the invoice including:
a) Euroclear Access Codes.
b) Euroclear Blocking Codes.
c) EuroclearSecurityPage.
d) Euroclear Printout.
e) TitlePage.
• With 8 hours maximum, Buyer will authenticate the instrument on Euroclear screen, blocks it and pays by swift to the Sellers bank coordinates. Proof of payment by Swift email will be sent to the Seller. If anything is incorrect, the access codes will be changed and the deal wont take place.
• Upon reception of payment Seller changes ownership electronically by Swift MT 760. Verification of changing of ownership will be done electronically for the Buyer.
• The printed copies will be delivered within 5 banking days by bank courier.
Required Documentation to Participate
Buy-Sell MTNs (Medium Term Notes)
• Letter of Intent.
• Client Information.
• Declaration of Client.
• Confirmation Banking of Cash Funds.
• Authorization to Due Diligence.
• Color Copy of Passport.
• Corporate Resolution (Only if the investor is a Company).
Upon reception of those documents and having successfully passed the Due Diligence, the investor will receive his contract with all the specs in it. If the investor agrees to all the points in the contract it will be mutually signed and the transaction will begin. (We will provide the draft docs)
Direct sales from the Cutting House
Please, don´t send Slightly Seasoned proposals. - Only Fresh Cut -
Intoductions:
our partner have direct access to an important Cutting House. We offer to the client the possibility to purchase MTNs (Medium Term Notes) or BGs (Bank Guarantee) "Fresh Cut" with an important discount in their face value.
The MTN or BG will be issued on behalf of the investor, issued by TOP 25 Western European Banks, S&P (Standard & Poors) Rated AA or better with normal exclusions.
The procedure for the purchase of the MTN or BG is specified on this web site.
Note: If the client desires, we can arrange for an exit buyer so that the client might achieve a gross profit of 50% per day (For more info, please check "Buy/Sell MTNs" from our Website). In case the client should be interested in our services as operators for the Buy/Sell option, we would send to the client another type of contract.
If you want us to study your case in detail, we are at your disposal in the Contact section.
Procedures:
1.- Buyer provides next documents:
* LOI (Letter of Intent)
* CIS (Client Information Sheet)
* Buyer's Paspport Copy Color
* History Funds
* POF or Bank Statement: Minimum amount 50% of first tranche. (Indispensable)
* MFPA Signed (1%+1%)
2.- Upon reception of those documents and having successfully passed Due Diligence, the investor receives the draft Contract directly from the Cutting House.
3.- If the Investor agrees to all the points in the contract it will be mutually signed and the Investor instructs his bank to send a Conditional SWIFT MT 103/23 to the Sellers bank coordinates.
4.- Sellers bank upon reception of the Conditional MT 103/23, ISSUES the MTNs or BGs, blocks them in favour of the Investor and sends a SWIFT MT 760 to the Investors bank coordinates. Once the investor receives the MTN or BG, the payment is executed.
5.- The printed copies will be delivered within 5 banking days by bank courier.