PPP TRADE CLIENT MUST COMPLY WITH AML REGULATIONS WITHOUT EXCEPTION Market Trade Group has mandatory KYC policies in place to deter people from laundering money. We are obliged to conduct a comprehensive KYC “Due-diligence to comply with international banking rules, AML Policy and with the rules established by our various principals and the domestic laws of their countries. APPLY TO ENTER TRADE Project finance If you are in search of the perfect opportunity for wealth creation and asset enhancement, PPP trading is an excellent option. PPP trading with MTG Platform offers investors lucrative yet safe and secure means of multiplying and growing wealth. PPP TRADING—OVERVIEW PPP stands for Private Placement Programs. They are also known as private placement opportunity programs and private placement investment programs. These programs primarily exist to make money by creating debt. Private Placement Programs involve trading via bank-issued debt instruments at discounted prices. Money is created by these instruments based on the fact that they are deferred payment obligations. Debt instruments include: ● Medium Terms Notes (MTN) ● Bank Guarantees (BG) ● Stand-By Letters of Credit (SBLC) CONTACT US TO APPLY MTG PPP PROGRAMS All these are issued by major banks worldwide at discounted prices amounting to billions of US dollars daily. These instruments are issued by financially strong banks as they can sell at discounted prices while promising to pay back the total face value upon maturity. It is essential to understand that all these activities are ‘off-balance-sheet activities.’ These activities are contingent assets and liabilities where the value depends on the claim’s outcome. Likewise, PPP trading is private and by invitation only. They are only available to individuals with high net worth and qualified institutional investors. The returns are usually contractual double-digit monthly returns while the investor’s capital never leaves their bank account, meaning it is not put at risk in the trading. Trade proceeds are usually disbursed weekly over 40 weeks (international banking weeks over 12 calendar months). TRADERS AND INVESTORS MUST KNOW THAT: ● PPP transactions are free from unusual restrictions that are present in the securities market. ● PPP is based on arbitrage transactions that have pre-defined prices, meaning traders don’t need to control the Client’s funds. ● The trading platform is regulated by strict guidelines established by the European Central Bank, Federal Reserve, and the Bank of International Settlement (BIS). Thus, both participating financial institutions and traders require special licenses to participate. ● The trading banks loan money to the traders at a ratio of 1:10. However, in certain conditions, it can be as high as 20:1. ● Nonetheless, these trading platforms rely on heavy utilization of leverage for generating high returns. Leverage, in turn, is dependent on margin utilization. Moreover, PPP trading is a very low-risk opportunity for an investor who can provide a cash deposit, a Standby Letter of Credit (SBLC), or a Bank Guarantee for a minimum of 100 Million Euro (€100,000,000). This allows the trade bank to release credit facilities for the trading of MTNs. The notional returns to the Investor/Asset Provider are expected to be over 20% per month. However, returns are contractually agreed upon and vary on a case-by-case basis. On the other hand, investors who don’t have 100M Euro can make a wealth-accumulation “bullet trade” where the trade proceeds are paid in one lump sum. This is usually within seven days to 30 days. This is done in order to help the investor get to the 100M Euro level more quickly. RULES FOR ENTERING PPP TRADING To enter PPP trading, you need to make sure that you qualify and meet the set rules in place. Not all clients with high net worth can participate in PPP trading programs. Clients are evaluated for qualification. Until the Client is successfully accepted by the traders, compliance, and trading banks, they can’t trade through PPP. Furthermore, even when selected, they may be disqualified due to any misconduct. Moreover, the asset should be acceptable by the bank. Clients may be disqualified if they submit forged, counterfeit, or altered documents or financial instruments. The procedures, practices, and clients’ acceptance are determined by the US FRA and Western European Central Banks program management and trading banks. Also, application document submission to more than one management group at a time is likely to get blacklisted and will never be accepted by any group. PPP trades shall commence as soon as the Client passes through the due diligence and provides the required collateral. PRIVATE PLACEMENT PROGRAM / PPP TRADE ENTRY OPTION-1 PPP TRADE ENTRY THROUGH SBLC (STAND-BY LETTER OF CREDIT) This program is predominantly for non-recourse debt finance agreement or non-recourse loan or funding development of a commercial property or infrastructure on a large scale in alignment with the UNDP SDG 9. [Sustainable Development Goal 9: Infrastructure/Innovation/Industry]. Note details: Receiving Bank: Disbursement Fiduciary : [Insert details] Principal Administrator: [Insert details] Sender’s Bank: AA/AAA only SWIFT MT760 only Disbursement Target: [Insert] LTV/Loan To Value: [Insert percentage range of Face Value] Minimum First Tranche : [Insert amount] Compliance Norms Applicable SWIFT MT760 VERBIAGE: Cash Backed SBLC PROCEDURE TO FOLLOW 1. The Client must provide standard Compliance/AML Risk Assessment/KYC documentation, including colored passport copy, Registration Company, proof of account, bank officer, and asset fund. Plus, they should provide all necessary signatures on the following documents: ● Affidavit requesting client information sheet or corporate resolution where applicable ● Letter of intent ● Letter of cease/desist confirmation to all third parties ● Non-circumvention non-disclosure agreement ● Source of funds affidavit ● Verification of funds through the letter of authorization ● Bank officer’s confirmation ● Non-solicitation ● Exclusivity ● Bank officer business card 2. The full Finance Agreement is issued by the principal to the Client for countersign. Upon signing by both sides, the agreement then became legally binding and lodged with all parties of the alliance involved in the transaction. ● Client Bank sends MT760 ● The principal bank confirms and verifies swift MT760 cash backed by SBLC. ● Appointed Auditors Report is received confirming Project Funds are placed as assigned in commercial and economic development, job creation focus. ● Repeat Trade Tranche is cleared to proceed by Party B: Principal Administrator. PPP TRADE ENTRY OPTION-2 This option offered by the MTG platform is for clients who have cash funds but want simple admin hold and SWIFT transfers. In this, we add trade director as non-depleting signatory either on master account or zero balance. This is linked to the master account. The funds are never touched or moved. Also, the Client has the power to remove the signatory at any given time. However, the bank officers first verify liquid funds in the bank account of the Client. Please note that any bank rated A/AA/AAA or B/BB/BBB with ATM machines for Commercial and retail Desks, with 200M minimum cash funds, can be placed into a trade without swift via Non-Depleting Signatory. ● Procedure: NDS [Non-Depleting Signatory] and ATV ● Currency: Euro, US Dollar, GBP ● First Tranche: Insert the amount ● Rolls and Extensions: [TBA] ● Target Trade Disbursement: LTV per month to Client ● LTV/Loan to Value: XX percent of Face Value [FIXED] ● Rating: A/AA/AAA or B/BB/BBB rated Bank with ATMs ● Agent/Fiduciary Fees: [Insert details] ● Disbursement Fiduciary: XXXXXX Principal Administrator XXX Holdings Limited ● Associates: XXXXXX PROCEDURE: 1. Client shall provide AML Risk Assessment/ standard Compliance and KYC documentation along with the colored passport copy, account proof of the company’s, company registration [if applicable], proof of account, bank, bank officer, and asset/fund. The following documents must have the Client’s signature: ● Affidavit requiring client information sheet ● Corporate resolution [if applicable] ● letter of intent ● letter of cease confirmation to all third parties ● Non- disclosure agreement ● Funds sources ● Affidavit/Letter Of /Authorization To Verify Funds ● Confirmation Of Bank Officer ● Non-Solicitation ● Exclusivity ● Bank officer business card 2. The Principal issues a complete Finance Agreement to the Client for countersign. The agreement means that you are legally binding between all parties of the alliance. It has all the details of receiving bank, receiving bank officer, authorized licensed fiduciary, principal party, and overview of project finance from trade assigned to the Client. 3. The bank officer of the Client must then arrange NDS [Non-Depleting Signatory] to client Master Account, or Sub Account linked to Master Account. 5. Trades Begin and disbursements according to agreement. 6. Appointed Auditors Report is received, viewed, and confirms that the Project Funds are placed as assigned in commercial and economic development. APPLY WITH US IF YOU ARE INTERESTED IN PPP TRADING PROGRAMS. WE MAINTAIN COMPLETE CONFIDENTIALITY OF YOUR PRIVATE INFORMATION FINANCING PROJECTS ACROSS SECTORS Private Placement Programs (PPPs) also known under other names, such as Private Placement Opportunity Programs (PPOPs) or Private Placement Investment Programs (PPIPs) PPOPs exist to “create” money. Money is created by creating debt. PPPs involve trading with discounted bank-issued debt instruments, money is created due to the fact that such instruments are deferred payment obligations, or debts. Money is created from that debt. Debt notes such as Medium Terms Notes (MTN), Bank Guarantees (BG), and Stand-By Letters of Credit (SBLC) are issued at discounted prices by major world banks in the amount of billions of USD every day. Financially strong rated banks can issue such a debt note, sell it at discount, and promise to pay back the full face value at the time the debt note matures. There is an enormous daily market of discounted bank instruments (e.g., MTN, BG, SBLC, Bonds, PN) involving issuing banks and groups of exit-buyers (Pension Funds, large financial institutions, etc.) in an exclusive Private Placement arena. All such activities by the bank are done as “Off-Balance Sheet Activities”. As such, the bank benefits in many ways. Off-Balance Sheet Activities are contingent assets and liabilities, where the value depends upon the outcome of which the claim is based, similar to that of an option. Off-Balance Sheet Activities appear on the balance sheet ONLY as memoranda items. When they generate a cash flow they appear as a credit or debit in the balance sheet. The bank does not have to consider binding capital constraints, as there is no deposit liability. All trading programs in the Private Placement arena involve trade with such discounted debt notes in some fashion. Further, in order to bypass the legal restrictions, this trading can only be done on a private level. This is the main difference between this type of trading and “normal” trading, which is highly regulated. This is a Private Placement level business transaction that is free from the usual restrictions present in the securities market. Usually, trading is performed under the “open market” (also known as the “spot market”) where discounted instruments are bought and sold with auction-type bids. To participate in such trading, the traders must be in full control of the funds, otherwise they lack the means buy the instruments and resell them. Also, there are fewer arbitrage transactions in this market, since all participants have knowledge of the instruments and their prices. However, in addition to the open market there is a closed, private market wherein lies a restricted number of “master commitment holders”. These holders are Trusts with huge amounts of money that enter contractual agreements with banks to buy a limited number of fresh-cut instruments at a specific price during an allotted period of time. Their job is to resell these instruments, so they contract sub-commitment holders, who in turn contract exit-buyers. These programs are all based on arbitrage transactions with pre-defined prices. As such, the traders never need to be in control of the client’s funds. However, no program can start unless there is a sufficient quantity of money backing each transaction. It is at this point the clients are needed, because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds on the market, comprising unused money that belongs to clients, never at risk. The trading banks can loan money to the traders. Typically, this money is loaned at a ratio of 1:10, but during certain conditions this ratio can be as high as 20:1. In other words, if the trader can “reserve” $100M, then the bank can loan $1B. In all actuality, the bank is giving the trader a line of credit based on how much money the trader/commitment holder has, since the banks won’t loan that much money without collateral, no matter how much money the clients have. Because bankers and financial experts are well aware of the open market, and equally aware of the so-called “MTN-programs”, but are closed out of the private market, they find it hard to believe that the private market exists. The trading of real financial instruments in Private Placement Memorandums, such as CMO’s, Treasury Bonds, Securities, MTN’s, CD’s, Commodities and Currencies is rather interesting. Sellers of securities want to be paid in cash. Platform trading relies on the ebb and flow of billions of dollars every day. Trading platforms also rely on heavy utilization of leverage to generate high returns. Leverage in turn is dependent on margin utilization. There are certain rules that must be followed in order to enter into the PPP. Not all high-end clients are eligible to participate in this program, and must sometimes be accepted through invitation. The trading administrators and managers have an endless supply of financially qualified applicants. Private Placement Programs are highly regulated (controlled) and fully managed by the relevant professionals. However, failure to provide full disclosure will disqualify the disingenuous. Clients need to be evaluated for qualification before they are allowed to participate in the program. The platforms offer the best available and most suitable programs to investors that clear the due diligence. ● Until the client is accepted by Compliance, the Traders, and Trading Banks, no placement can occur. ● Any arrogant attitude and misconduct are guaranteed to be refused to participate in the program. ● The asset has to be in an acceptable bank, in an acceptable jurisdiction. ● It is fraud to submit documents or financial instruments that are forged, altered or counterfeit. Such documents are promptly referred to the appropriate law enforcement agencies for immediate criminal prosecution. ● The practices, procedures, acceptance of clients and rules are determined by the U.S. Federal Regulatory Authorities, Western European Central Banks program management, licensed traders and trading banks. ● Contract terms, yield, schedules, etc., are made to fit their needs and schedules – and not for the demands of the investors. ● This marketplace is strictly confidential, and absolute confidentiality by the investor is a key element of every contract. A client who breaches confidentiality will precipitate an instant cancellation. ● Submission of the application documents to more than one management group at a time he can expect to be blacklisted and never accepted by any group. Trade will commence as soon as the client has passed through the due diligence and deliver the required collateral. PPP TRADING REALITY CHECK – FACTS AND MYTHS BEFORE ENTERING PPP TRADE CLIENT SHOULD KNOW ABOUT THESE 1. Tear Sheet Programs are now off all Platforms and are basically meaningless trash. 2. Volume Bullets are also meaningless trash unless structured by a licensed Buy/Sell or Fed Program. The rest of them are non-existent. 3. Interscreen Block trade is nonsense and does not exist. 4. Heritage Fund Programs are also meaningless trash. 5. Trading Leased Instruments can be referred to as ‘collateral assignment’ contracts 6. Blocked Fund by Email is nonsense and meaningless trash. 7. Clients who demand Bullets without Projects – the banking system will not release the funds unless they have a framework and legitimate purpose. 8. Brokers demanding 10-15% Fees: Brokers creating conference calls pretending they are the Provider of Instruments buy Phishing information 9. S2S/IPIP are all illegal and against AML regulation 10. Assets such as ITR’s (Irrevocable Trust Receipt), SKR’s (Safe Keeping Receipt), T Strips (Treasury Strips), junk bonds, asset backed bonds, hard assets, real estate, etc. are useless for PPP Trading 11. Compliance would explore the criminal background and origin of the funds without fail. There is no shortcut to this. UNDERSTANDING MANAGED BUY SELL TRADING PROGRAMS In a managed buy/sell trading program, the spread between the buying and selling of bank debentures creates profits by buying low and selling high to a predetermined exit buyer. Because traders cannot use their own money to operate a program, they look for financially qualified investors to provide collateral support for the initial purchase of a new issue asset. In trading, as we are discussing it here, a trader has locked in the first issuance of some instrument – such as a standby letter of credit, a bank guarantee or a medium term note – while, at the same time, the next, or secondary buyer has been lined up and ready to take the asset at a higher price. However, the trader cannot execute the start trade without having shown new money, such as a line of credit; there is nothing to buy or sell. That is where the investor comes in. Typically, a credit line makes the trades work, and in order to get the credit line, the trader must show that an investor is proffering his cash or instrument assets to be monetized. In many cases, the investor becomes a joint venture partner in the process of this monetization. The investor money is never really touched – it simply acts as supporting collateral for the trade credit line. As the credit line is generally non-repayable, non-recourse or non-depletion, this means little to no risk to the investor of losing his money. This limits the risk of the underlying collateral being tapped in the event of a default. For additional safety, the bank blocks cash funds in an administrative hold, which prevents credit line depletion during the trade contract, or utilizes an acceptable instrument as the support. In the case of a bank instrument, the trader can rightfully use the instrument to support the credit line. Because the trader already has the ‘exit’ buyer – the second buyer taking the asset at the predetermined higher price – the profit spread has also been predetermined. When profits are generated, they are generally split so that the investor shares in the bounty, sometimes up to the full amount of the trade credit line, resulting in an 80 to 100 percent profit to the investor, sometimes more. Each program has different types of profit sharing with the trader, which are negotiated when the program is established with the client. For illustration purposes, a new issue bank debenture may be purchased at about 40 percent of the face value. So, a €500m face value instrument may cost the trader €200m to buy. The trader uses the trade credit line to make that new issue purchase. Then an exit buyer who was pre-established at the beginning of the program may purchase it at 70 percent (or €350m). The difference is the profit made in the trade, of €150m. That is then used to pay profit to the investor (a shared percentage of the total profit), as well as the trader. When bank debentures trade multiple times during a month, this profit adds up handsomely. This is why an investor can see a profit on his money ranging from 80 to 100 percent of the amount of the trade credit line, and sometimes more (depending on the program). The challenge for many investors is understanding the minimal risk for loss of principal, particularly if the money owned by the investor stays in his own bank account or is used to issue a cash-backed standby letter of credit. Small cap programs typically require movement of funds to a trader account in order to obtain the trade credit line. Few small cap programs, although there are some, can take under €100m and some offer an insurance policy against loss of principal. Several that we have seen do not offer this. One that we know of, does. Having understood the principles behind a managed buy/sell, the next question most potential investors ask is, ‘what are the steps needed to engage with such a program?’. Most investors need a minimum of $100m or €100m – either in cash in a commercial corporate bank account or the face value of a bankable instrument. That number is a little bit deceiving, because you have to factor in the trade credit line being anywhere from 70 to 80 percent of the value of the account. That 70 to 80 percent net must equal at least $100m. So, the real need is for the investor to have about $150m, to account for the deduction with the loan-to-value factored in. A financially qualified investor, in order to avoid potential solicitation rules, is the one who moves first to establish the relationship. This is done with the submission of a Know Your Customer (KYC) and proof of funds set of documents which indicate the investor’s desire and capacity to enter a program. While the preparation of these documents takes just a little time to complete, it fulfills the solicitation rules allowing the trading organisation to open the conversation and subsequently prepare the trade contract shortly after receipt by the appropriate authorized intake person. In general, it takes a couple of weeks to arrange the trade commitments and the banks, along with approval from the authorities governing these programs, at which time the trading may proceed at the next opportunity to start. With the noise of internet brokers misinforming people about these programs, building trust must first be mutual between parties. Without trust, there can be no transaction. Trust is the first thing any investor needs to feel is in place before too much discussion of a program is presented. The fact is that managed buy/sell programs using bank debentures do exist, however actual providers are few and far between. The supply of these programs is small, and demand far exceeds it. Getting in the way of being connected to something real are usually the internet brokers, who smell money but do not have the relationships or knowledge of how these work, so, the likelihood of success is almost nil. When you have a trusted party to work with, with authentic relationships and compatibility, it is possible to be included in a program. For most investors, this is the mechanism used to fund projects without debt or repayment. MORE PPP TRADING PROGRAMS/ OTHER TRADE OFFERS TRADE INSIDE THE BANK-LEDGER TO LEDGER Project finance BANK OFFICER VERIFICATION REQUIRED: As long as Client has full Bank Officer verification we can trade INSIDE THE BANK Ledger to Ledger, no Swift required. MINIMUM: 100m Minimum. 1-2 trades daily. FUNDING RETURNS: 100% per month minimum to Client. Clients with cash in these banks are eligible: BANKS: Credit Suisse [Any Branch] UBS [Any Branch] Barclays [Any Branch] HSBC [Any Branch] DBS – Singapore Only* HIGH VOLUME TRADE Project finance FOR CLIENTS WITH FUNDS IN HSBC LONDON We have a HIGH VOLUME TRADE available for our closed network only. 150/5d… 300/10d… 500/15d. Fast Turnaround. REQUIREMENT KYC, Bank Officer details, and POF required. MINIMUM $100m is the minimum. Our London Desk has executive level clearance for these trades and can get clients into Trade in just 24 hours. PPP TRADE ENTRY VIA SWIFT-MT760 (UOB KAY HIAN) PROGRAM INFORMATION PPP TRADE & PROJECT FINANCE VIA SBLC (SWIFT MT760) > Trade Receiving Bank: UOB: Kay Hian Pte Limited. > Client Asset Requirement: 200M SBLC euro [cash backed] > Offer until placed: 4 X LTV paid to client after 20 Banking Days > Assignment: Instrument is assigned direct to Bank for One Year and One Month, returned to Sender 15 days prior to Expiry date with no lien and no encumbrance. > Disbursements of Capital and Fees: Licensed Fiduciary [Hong Kong] HKMA regulated. > All Clients must declare Project Summaries PROCEDURES: 1. KYC/AML Documents 2. Video Conference for Principals 3. Contract signed 4. SWIFTS: MT799 and MT760 SBLC 5. Disbursements 6. Project Audit Report/Review This is a one off current bullet based on client sending us 200m SBLC. Its not available all year. Only until its placed Our Trade Principal issues debt finance agreements to finance projects. The bottom line is our credit lines exist in UOB: Kay Hian Pte Limited [Singapore] (https://www.utrade.com.sg/home/index.jsp) Standard 200m cash backed SBLC from any of your esteemed clients triggers this credit line and we provide automated trade finance. Our Banker is the Head of Capital Markets. The Finance returns is standard LTV per month to client for 10 months in a year. Our trade group is MAS/HKMA approved and can place larger trades with the appropriate project summaries, once clients succeed with the simple test trial tranche 200m SBLC. Once they succeed in the test tranche, we can provide them with higher volume trades. KNOWING UOB KAY HIAN Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, they are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Their global footprint and strong international presence have enabled them to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. With more than a hundred years of history and distinction to their name, they have established themselves as a trusted financial partner to a prestigious client base that comprises institutions, large corporations, high-net-worth individuals and retail investors. Supported by a strong, dedicated research team, their award-winning analysts are in place to impart the deep market knowledge clients need to navigate today’s complex trading environments. Providing seamless access to multiple products and markets in each country, their sophisticated tools and technology offer investors the capability of trading across a broad range of securities, including stocks, bonds, unit trusts, futures, options, CFDs and forex. As a leading provider of financial services and solutions, UOB Kay Hian is fully committed to serving their clients and community with excellence and integrity. MORE ABOUT PPP OR PRIVATE PLACEMENT PROGRAMS ADDITIONAL INFORMATION The PPP market is changing and no longer limited to governments and MTNs, and industrial companies and banks can issue their own debt instruments. Debt notes such as Medium Terms Notes (MTN), Bank Guarantees (BG), and Stand-By Letters of Credit (SBLC) are issued at discounted prices by major world banks in the amount of $-billions every day. These private placements can be structured to meet the specific requirements of investors in terms of maturity and coupon. They can be targeted to retail as well as institutional investors, bear fixed or foreign exchange/interest rate-linked coupon, and can include caps, calls, and other features as required by investors. PPP trading safety is based on the fact that the transactions are performed as arbitrage transactions. This means that the instruments will be bought and resold immediately with pre-defined prices. A number of buyers and sellers are contracted, including exit-buyers comprising mostly of large financial institutions, insurance companies, or extremely wealthy individuals. The issued instruments are never sold directly to the exit-buyer, but to a chain of clients. For obvious reasons the involved banks cannot directly participate in these transactions, but are still profiting from it indirectly by loaning money with interest to the trader or client as a line of credit. This is their leverage. Furthermore, the banks profit from the commissions involved in each transaction. The client’s principal does not have to be used for the transactions, as it is only reserved as a compensating balance (“mirrored”) against this credit line. This credit line is then used to back up the arbitrage transactions. Since the trading is done as arbitrage, the money (“credit line”) doesn’t have to be used, but it must still be available to back up each and every transactions. Such programs never fail because they don’t begin before all actors have been contracted, and each actor knows exactly what role to play and how they will profit from the transactions. A trader who is able to secure this leverage is able to control a line of credit typically 10 to 20 times that of the principal. Even though the trader is in control of that money, the money still cannot be spent. The trader need only show that the money is under his control, and is not being used elsewhere at the time of the transaction. Arbitrage transactions with discounted bank instruments are done in a similar way. The involved traders never actually spend the money, but they must be in control of it. The client’s principal is reserved directly for this, or indirectly in order for the trader to leverage a line of credit. Confusion is common because most seem to believe that the money must be spent in order to complete the transaction. Even though this is the traditional way of trading – buy low and sell high – and also the common way to trade on the open market for securities and bank instruments, it is possible to set up arbitrage transactions if there is a chain of contracted buyers. This is why client’s funds in Private Placement Programs are always safe without any trading risk. A constant theme running through the global non-bank finance market as it has evolved since the 2008 crash, has been private placement and buy/sell programs. Sadly, the whole sector has become tainted as unscrupulous individuals, with no real knowledge of how it operates, have persuaded the unaware to part with significant sums of money on the expectation that they were going to reap outstanding returns. So prevalent did these scams become that the FBI and other agencies actually put out warnings that these programs are, in themselves, a scam. Blame the internet, it’s the cause of much grief in the market generally! It’s probably true to say that less than 1% of what’s on offer on the internet is real. But, nevertheless it is a genuine, private ‘Tier-1’ market place where financial instruments of many types (mostly MTN’s) are transacted by independent traders and trading groups, operating across the world’s to top tier banks. Clients considering entering this market to make the right decisions look to us for guidance, to find explanations on some of the obscure or unclear aspects of its secure investment opportunities. All trading programs in the Private Placement arena involve trade with discounted debt notes in some fashion. Further, in order to bypass the legal restrictions, this trading can only be done on a private level. This is the main difference between PPP trading and ‘conventional’ trading, which is highly regulated. This is a Private Placement level business transaction that is free from the usual restrictions present in the securities market. It is based on trusted, long established private relationships and protocols. Conventional trading activity is performed under the ‘open market’ (also known as the ‘spot market’) where discounted instruments are bought and sold with auction-type bids. To participate in such trading, the trader must be in full control of the funds, otherwise he has no means of buying the instruments before reselling them. However, in addition to the widely recognized open market there is a closed, private market comprising a restricted number of ‘master commitment holders’. These are trusts, foundations and other entities with huge amounts of money that enter contractual agreements with banks to buy a limited number of fresh-cut instruments at a specific price during an allotted period of time. Their job is to resell these instruments, so they contract sub-commitment holders, who in turn contract exit-buyers. This form of pre-planned and contracted buy/sell is known as arbitrage, and can ONLY take place in a private market (the PPP market) with pre-defined prices. Consequently, the traders never need to be in control of the client’s funds. However, no program can start unless there is a sufficient quantity of money backing each transaction. It is at this point that, the client, is needed because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds, comprising money that belongs to clients, which is never at risk. The ‘host’ trading bank is then able to loan money to the trader against your deposit. Typically, this money is loaned at a ratio of 10:1, but during certain conditions it can be as high as 20:1. In other words, if the trader can ‘reserve’ $100 million of client funds, then the bank can loan $1 Billion against it, with which the trader can trade. In all actuality, the bank is giving the trader a line of credit based on how much client funds he controls, since the banks can’t loan leverage money without collateral. Because bankers and financial experts are well aware of the ‘normal’ open market and of so -called ‘MTN programs’, but are closed out of this private market, they find it hard to believe that it exists. Bankers in top-tier, global banks (where this trading takes place) are ignorant that this trading exists within their own institutions because it happens at a level far removed from their own mainstream banking operations. Private Placement trading safety is based on the fact that the transactions are performed as arbitrage. This means that the instruments will be bought and resold immediately with pre-defined prices. A number of buyers and sellers are contracted, including exit-buyers comprising mostly of large financial institutions, insurance companies, or extremely wealthy individuals. The arbitrage contracts, provision of leverage funds from the banks and all settlements follow long established and rapid processes. The issued instruments are never sold directly to the exit-buyer, but to a chain of market participants. The involved banks are not allowed to directly participate in these transactions, but are still profiting from them indirectly by loaning money with interest to the trader as a line of credit. This is their leverage. Furthermore, the banks profit from the commissions involved in each transaction. The client’s principal does not have to be used for the transactions, as it is only reserved as a compensating balance (‘mirrored’) against the credit line provided by the bank to the trader. HISTORY OF PRIVATE PLACEMENT PROGRAMS In the 1990s, the trading in bank instruments was and is presently a multitrillion dollars industry worldwide. The World’s largest Holding Companies of North American and European Banks are authorized to issue blocks of debt instruments such as medium term notes, debenture instruments, and standby letters of credit at the behest of the United States Treasury for the United States Treasury Trust and Foundations and the United States Federal Reserve. The Instruments issued are backed by a Treasury undertaking. The genesis of this marketplace was the 1944 Bretton Woods Conference of world’s leaders. The principles originally championed as answers to post World War II economic stability are still the impetus for the operation of these transactions today. These transactions started some fifty years ago, have grown and been continuously modified, and as described in this article are Private Placement U.S. Treasury and Federal Reserve investment transactions administered by select Western Banks. A brief history will help to understand the origin of these transactions and how it has remained strong and viable despite the great economic changes the world has experienced over the last half-century With World War II having come to a close, the leading political and economic authorities of the world met in Bretton Woods, New Hampshire (USA). Their purpose was to formulate a common plan to rebuild the war’s massive devastation and to impose global restraints upon forces which had twice led to world chaos during the first half of the Twentieth Century and left economic collapse in its wake. To accomplish this goal, these leaders sought to empower universally recognized international institutions capable of effectuating and preserving political order and capable of encouraging and facilitating world economic trade and cooperation. Leading economists around the world advocated the creation of an international banking system that would administer a universally accepted “currency”. It was believed that a centralized global authority, and a standard world currency, with fixed exchange rates between the different currencies of the world, was the formula for stimulating growth and maintaining world economic stability. The Bretton Woods Conference was held on July 1, 1944, with more than 700 participants representing 44 countries coming together and advocating for the establishment of an international banking system. The English economist John Maynard Keynes called for the adoption of a standard currency. However, the political realities of state autonomy have inevitably prevented the adoption of a uniform currency. As an alternative, international leaders have decided to adopt the US dollar as the standard global currency for international trade. It was backed by gold and the most stable currency. This adoption of the US dollar as the standard currency of international trade was the cornerstone that triggered the development of the banking instrument market. The Bretton Woods Conference also gave birth to the United Nations, the World Bank, the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). The World Bank was structured to operate in a manner consistent with traditional commercial banks. It was created to serve as a lender to the poorest and least developed countries. World Bank funding came from the evaluation of the most industrialized countries. Today, it receives deposits from more than 140 member governments and lends to the least developed countries in need of international capital. In its attempt to further solidify the universal acceptance of the U.S. Dollar as the standard world currency, the Bretton Woods Conference had fixed the price of Gold backing the U.S. Dollar at $35.00 an ounce. During the 1950s and the 1960s the price of gold in the open market had increased to a price nearly ten times that amount. The need to back the U.S. Dollar with gold valued at $35.00 an ounce while simultaneously providing sufficient U.S. Dollars to accommodate the increased needs of the international marketplace created significant stress on the United States Monetary system. The United States did not have enough gold to continue issuing the dollars necessary to continue to support international economic expansion. On August 15, 1971, facing a threatened speculative run on the U.S. gold reserves, President Richard Nixon renounced America’s promise to convert paper dollars into gold upon demand. With this executive proclamation the United States abandoned the gold standard. In the absence of the gold backed standard currency the idea of fixed exchange rates among all currencies of the world became passed, and by 1973 the IMF, the World Bank and the Bank of International Settlements (BIS) had abandoned the idea of fixed exchange rates. Within the territorial limits of the United States the U.S. Federal Reserve exerts influence upon the domestic economic trends by the regulation of domestic bank reserve requirements and the adjustment of the Federal Discount Rate. While these may be internally effective tools, they are inadequate to provide the international control demand in the global marketplace. The United States Treasury expanded the roll of the Federal Reserve System to monitor the International markets separate and apart from domestic duties. The US Treasury needed to find a solution to continue creating US Dollars, so it created financial instruments, mainly Medium Tern Notes (MTN’s)*, which it sold to major global banks. The US Treasury through the validation of the Federal Reserve issues the largest financial instruments of the issuing banks of the World Bank in US dollars. These transactions are economically important because the banking instruments have such large dollar amounts that the effect of these sales will have a direct impact on the volume of the US dollar in circulation. Once the Federal Reserve cash out the sale of financial instruments in dollars, they can be reintegrated into targeted segments of the global economy in accordance with the US Treasury and policies determined by the G8 countries. The big world banks exchange their financial instruments. Private Placement Programs (PPP’s) are born …But reserved only for banks and governments… * Medium Term Notes are negotiable debt securities with an interest rate. They are issued by governments or companies in international debt markets to finance their medium and long-term capital needs. This solution is very advantageous economically and financially for everyone, and it’s something magical … we always win upwards or downwards … if the economy of a country is growing, we win in positive speculation, if the economy of a country collapse, the debt is erased … but the US Dollars were created meanwhile … everyone wins … There is so much to gain from this system, that the banks have started to want to use this system to launder their own liquidity, and those of some of their clients obtained more or less in the legality (not respecting oil embargoes, money laundering. …). Remember the file of HSBC a few years ago. Banks will therefore organize, and create “subsidiaries” so-called “trading platforms”. They will offer their large clients to invest in programs through its platforms. The money returns gray and spring white with huge profits validated by the Federal Reserve (FED). But in this case, if there is any doubt about the origin of the funds, the Federal Reserve (FED) validate the transaction only if a part of the profits generated is donated to a humanitarian foundation, or a government project always humanitarian. Compared to the yield from traditional investments, these programs can deliver a very high yield. 100% (or more) per week is possible. And this is how: Assume a leverage effect of 10:1, meaning the trader is able to back each buy-sell transaction with ten times the amount of money investor has deposited with the program. In other words, you have $10 million but the trader, because of his leveraged loan with the bank, is able to work with $100 million. Assume also the trader is able to complete three buy-sell transactions per week, with a 5% profit from each buy-sell transaction: ” (5% profit/transaction) x (3 transactions/week) = 15% profit/week Assume 10x leverage effect = 150% profit…PER WEEK” APPLICANTS ARE EXPECTED TO BE EXPERIENCED INVESTORS WHO ARE FAMILIAR WITH HOW THESE INVESTMENTS ARE DONE. WE DO NOT FORMALLY EDUCATE OR PROVIDE ANY ADVICE AS TO HOW ONE CAN INCORPORATE THIS PPP STRATEGY INTO HIS / HER FINANCIAL PLAN. LEARN MORE As a direct consequence of the PPP Trade’s environment where this business has to take place, a non-solicitation agreement has to be strictly followed by all parties involved. This agreement strongly influences the way the participants can interact with each other. Sometimes non-solicitation agreements foster scam attempts, due to the fact that at an early stage it is often difficult for the clients to recognize reliable sources to be in contact with. There is another reason why so few experienced people talk about these transactions: virtually every contract involving the use of these high-yield instruments contains very explicit non-circumvention and non-disclosure clauses forbidding the contracting parties from discussing any aspect of the transaction for a specified number of years. Hence, it is very difficult to locate experienced contacts who are both knowledgeable and willing to talk openly about this type of instrument and the profitability of the transactions in which they figure. This is a highly private business, not advertised anywhere nor covered in the press, and is closed to anyone but the best-connected, most wealthy entities that can come forward with substantial cash funds. The purpose of this type of trading is to finance projects, not generate tremendous profits for the client. These may be for-profit or non-profit and can be funded as a result of this trading. Since this type of trading generates such large amounts of money on the market, measures must be taken to keep the inflation low. One way to do this is to adjust the interest rates, but this usually has little or no effect. A better way to minimize inflation is to let some of the profit be used for different projects that need funding, such as rebuilding infrastructure in regions of the world that have experienced catastrophes or war. The complete process involving the issuing of debt-notes, the arbitrage transactions, the programs, and the projects is a result of combined market forces. Banks have a method of increasing their revenues and profits, clients are able to finance different ventures, and borrowers are able to access loan funds. There is a supply and demand for such instruments, and as long as the supply and demand exists then also this kind of trading will exist. This business is entirely private. To get access to these investment programs, the client needs to send his preliminary documentation to a broker whom the client trusts to be in direct contact with the trading group. That means a Client Information Sheet, a copy of their passport, and a bank statement showing the balance of funds being committed for trade. It is generally required that the bank statement be signed by two authorized bank officers to make it full bank responsibility. There is no other way for the client to get contact with the trading group. After the client has sent his own paperwork (their Passport, Client Information Sheet, and recent bank statement showing cash), the trading group will investigate the applicant. If the response is positive, the program manager in the trading group will contact or meet with the client. If the investigation is not favourable, the program manager will contact the broker and tell him that the client did not qualify. During the contact with the client, the trader will explain the program terms/conditions to the client, and outline the guarantees and requirements to start the program. The client will get instructions to open a new sole signatory bank account at the trading bank for transferring the funds there. The client will receive a contract which states the total gross yield, the percentage of the gross profit reserved for projects, the percentage for the trading group and the percentage for profit participation fees to be deducted for brokers/intermediaries. The net return to the client will be wired to another account that can be located in any bank worldwide. If the client accepts the contract, the contract is signed and the program is ready to start. The trader is now able to leverage the client’s reserved money 10 times, and is now able to back up the arbitrage transactions with that money, a credit line that remains in the bank account that is screened before each arbitrage transaction. Trading now continues, and the profit is paid out per the contract terms to the client. The programs work with cash only or gold bullion. This fact means that the client will only be accepted with liquid funds. Recent rulings by the G20 prohibit the use of an asset other than cash or gold bullion in a bank vault. A line of credit must be established and drawn down into an account at a bank, where it is lodged and blocked. All trading programs in the Private Placement arena involve trade with such discounted debt notes in some fashion. Further, in order to bypass the legal restrictions, this trading can only be done on a private level. This is the main difference between this type of trading and “normal” trading, which is highly regulated. This is a Private Placement level business transaction that is free from the usual restrictions present in the securities market. Usually, trading is performed under the “open market” (also known as the “spot market”) where discounted instruments are bought and sold with auction-type bids. To participate in such trading, the traders must be in full control of the funds, otherwise they lack the means buy the instruments and resell them. Also, there are fewer arbitrage transactions in this market, since all participants have knowledge of the instruments and their prices. However, in addition to the open market there is a closed, private market wherein lies a restricted number of “master commitment holders”. These holders are Trusts with huge amounts of money that enter contractual agreements with banks to buy a limited number of fresh-cut instruments at a specific price during an allotted period of time. Their job is to resell these instruments, so they contract sub-commitment holders, who in turn contract exit-buyers. These programs are all based on arbitrage transactions with pre-defined prices. As such, the traders never need to be in control of the client’s funds. However, no program can start unless there is a sufficient quantity of money backing each transaction. It is at this point the clients are needed, because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds on the market, comprising unused money that belongs to clients, never at risk. The trading banks can loan money to the traders. Typically, this money is loaned at a ratio of 1:10, but during certain conditions this ratio can be as high as 20:1. In other words, if the trader can “reserve” $100M, then the bank can loan $1B. In all actuality, the bank is giving the trader a line of credit based on how much money the trader/commitment holder has, since the banks won’t loan that much money without collateral, no matter how much money the clients have. Because bankers and financial experts are well aware of the open market, and equally aware of the so-called “MTN-programs”, but are closed out of the private market, they find it hard to believe that the private market exists. Normally, a PPP trading program is nothing more than a pre-arranged buy/sell arbitrage transaction of discounted banking instruments. Theoretically, an client with a large amount of funds (on the level of $100-500M USD) could arrange his own program by implementing the buy/sell transaction for himself; however, in this case he needs to control the entire process, initiating contact with the banks and the exit buyers at the same time. This is not a simple task, considering the restrictions in place. For a client it is much simpler (and usually more profitable) to enter a program where the trader and his trading group have everything in place (the issuing banks, the exit buyers, the contracts ready for the arbitrage transaction, the line of credit with the trading banks, all of the necessary guarantees/safety for the client, etc.). The client needs only to agree with the contract proposed by the trader, disregarding any other underlying issues. It is further advantageous for the client to enter a program with a substantially lower amount of money and benefit from the line of credit offered by the trading group. phone +4915731272727 NEUER WALL 86 20354. Hamburg info.awiko@web.de seal Copyright | All Rights Reserved. Developed by Bear Solutions Terms Of Use Privacy Policy Cookie Policy Fraud Alert A . K
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