Subject: Re: does that work? should we add anything or take anything out? [I]
From: Daniel Sabba <
Date: Tue, 11 Nov 2014 10:23:10 -0500
To: Stewart Oldfield
Cc: Paul Morris
Classification: For internal use only
funds would likely get a lower commission than 3 cents, depending on activity.
but JE has historically paid 6cents on his equity transactions.
having said that the bullet point refers to the financing charge, not the
commission.
would you change the language to represent that?
From: Stewart Oldfield/
To: Daniel Sabba/ , Paul Morris/
Date: 11/11/2014 10:16 AM
Subject: Re: does that work? should we add anything or take anything out? [
I]
Classification: For internal use only
Would we charge a hedge fund 3 cents execution? That seems a little rich
Stewart Oldfield, CFA, CAIA
Deutsche Bank Trust Company Americas
Deutsche Asset & Wealth Management
345 Park Avenue New York, NY 10154
Tel.
Mobile
Email
Securities offered through Deutsche Bank Securities Inc.
Original Message
From: Daniel Sabba
Sent: 11/11/2014 09:57 AM EST
To: Paul Morris; Stewart Oldfield
Subject: does that work? should we add anything or take anything out? [I]
Classification: For internal use only
EFTA01411838
Per our agreement, we liaised with the desk head in our institutional sales
and trading platform for equity derivatives and confirmed the points we
discussed yesterday:
- balance sheet charges are the primary driver of the price difference you
observed between our quote and the one you received from competitors primarily
funded in USD
- lmL + 75bps for ly TRS is the financing charge DB would charge a hedge fund
or other institutional client today
- our trading heads were not surprised competitors primarily funded in USD
were offering a financing spread 20 to 30bps lower than DB's
- the trading desk can sometimes offer improvements on names they are axed -
i.e. when the desk has counterparties interested in taking the other side of
the TRS. AAPL is not one of these names
We can still offer the following terms:
Notional: 1,000,000 shares of AAPL
Term: 1 year
Southern Financial receives: Total return in AAPL
Southern Financial pays: lmL + 75bps
Commissions: 3 cents per share to enter and exit the trade. There
is no additional break up fee.
Execution: We would suggest best efforts VWAP for execution
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Daniel Sabba
Director I Key Client Partners
Deutsche Bank Securities Inc
Deutsche Asset & Wealth Management
345 Park Avenue, 26th Floor
New York, NY 10154
Tel.
Email
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EFTA01411839