Sun, 3 Nov 2019

PPP TRADING PLATFORM

by Subcontracts India

PPP TRADING PLATFORM

PRIVATE PLACEMENT PROGRAM (PPP) TRADING

We are direct to the PPP Platform Principal
The Trading Platform is a registered entity in the United States and we will provide complete details relating to the Platform post receipt of the KYC/CIS from the client/applicant

Platform Trader can TRADE 3 ways:
MT799 ADMIN BLOCK FUND
MT760 CASH BACKED SBLC, we can monetize only, OR monetize and trade.
Platform Trader can BUY MTNs or place them into TRADE [must be trading]. Bloomberg/EC/MT760

The following is the basic procedure for PPP Trade Programs. (Procedure for non-standard programs may vary slightly.)

Client provides fully completed KYC and POF (RWA letter signed by Bank Officer).
Client also provides Bank Officer's Business Card
After passing preliminary Due Diligence, Client will receive a direct call from the Platform Principal who would discuss matters relating to the trade, clear client's doubts, answer client's questions .
The client's documents undergoes full legal and banking due diligence and approval.
Client will be presented a Term-sheet detailing and describing future trade profits and distribution.
Client will be presented an FPA (Fee Protection Agreement) to detail and agree to profit and commission sharing.
After all documents in Point 1 - Point 6 are presented signed and approved, the client is issued a Trade Contract directly from the Trade Platform.
After signing the Trade Contract, the client instructs his bank to block the funds as agreed upon in the Trade Contract or Issue an SBLC via MT760 to Platform's Receiving Bank(s)
After funds are blocked or SBLC transmitted via MT760, funds go into trade, usually within 1 - 2 International Banking days.

Please keep in mind that this process is client driven and depending on the response time of the client and his bank, the entire process usually takes 1-2 weeks.

Please do not request shortcuts or try to bypass any steps required. Participation in these trade programs is by invitation. The client can comply or he has to keep looking for something matching his requirements.

Procedure and documentation requirements may vary from program to program and not all types of programs start with Bullet Trade Programs.

AAA Rated Banks preferred.
[Non rated Banks require Corresponding Banks]

CONTRACT IS SIGNED within 24-48 hrs

CLIENT SENDS CASH BACKED SBLC by MT760 to receiving bank provided. Platform Principal Monetizes the SBLC and then put the agreed amount onto Trade as per agreed with Client.

Returns from the Trade are reimbursed to Client's Bank account via MT103 in duration as agreed (Bi-weekly/Monthly/Quarterly)

Instruments are returned 7 days prior to maturity or as agreed.

Details relating to Trade Openings, Commencement, Returns, Trade Tenure will be provided to client/applicant directly by the Platform Principal. We understand clients or their asset managers have many questions prior joining the Trade Platform. We are happy to provide answers to all their questions and doubts. However, one must appreciate that the information we hold is not available in the public domain and we cannot disseminate such information upon request. It is extremely important for us to make sure that any client seeking such confidential information must meet our eligibility criteria. Each client desiring to join the Trade Platform, hence, must provide us access to some very important information about oneself by submitting our KYC/CIS form duly filled and signed.


​​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.

​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, longestablished 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 recognised 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 preplanned 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 ‘MTNprograms’, 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 longestablished 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.

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"

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