AVANTI ADVISORS LLC

      TRADE PLATFORM PROGRAMS

TRADE PROGRAM PARTNER


My Partner in our Trade Programs is Terrence Cameron MacDonald, the principal partner in a Singapore Company, MAMC, specializing in Trading Platforms. Terry has had a long time exposure to trading programs and I thought it might be helpful to get a sense of his history with Platform Trading:


Terry's background in Platform Trading:

During the period that I was President of: National Patterns and Systems Inc., a major real estate developer in New York and New England in the 1970s, I first heard of the Trading Program that we have presented to you and your colleagues. My Vice President and General Legal Counsel called me when I was at Cape Cod, enjoying a late Spring weekend, and told me about the programs. I strongly
suggested to him to focus on arranging the financing we were seeking and stay away from such a fantasy idea. This was in April 1977. By 1990, I was President of Empire Petroleum International Inc. and had been working in Switzerland for ten years and much of my focus was with Swiss banks. Without presenting a long story here, I became fully aware of the existence and importance of such very Bank Instrument private trading. Also, the late Thomas G. Clines, one of MAMCs first Directors, in 1995, when I commenced my efforts, in the matters that we are working with you and your colleagues, was able to communicate the approval of our efforts by The White House. Essentially, this trading serves as a way to provide liquidity in many international banking centers and at the same time provide funds to achieve positive, nonpolitical financing of humanitarian projects throughout the world. Rather than define the specific trading which is essentially regular private trading of Bank Instruments for cash, however, the following, in this instance, is critical to understand:
1. A fundamental part of this trading is that fresh capital is the base for these programs. The fresh capital does not have to be used for the trading because the Trade Vehicle will simply leverage this “secure capital” for as many as 10 to 15 times the value of the “secured capital”. This leverage is the fundamental basis for the quite handsome returns shown on our Projections since the actual trading is being conducted at a level many times the value of the “fresh capital”. Remember the “fresh capital” is secure since it is the leveraged capital with which the BUY/SELL is conducted. But FRESH CAPITAL has been a requirement since this trading was created after WWII.
2. There are other factors creating profit, unique to this program, such as the Bank Guarantees (BGs), Standby Letters of Credit (SBLCs) and Medium Term Notes (MTNs), to be used in the trading, that will generally have a discount available to the Trade and Asset Provider which adds to the profit line.
3. These special trading programs were needed in Europe and Asia to:
(a) rebuild and refinance after World War II; and, (b) establish stable economies. It would be helpful should you wish a deeper understanding of these trading programs to study the
Bretton Woods Conference reports which began in 1944 to address
the noted post war banking problems.
Please share this with your clients so they have a better understanding of how the profits are achieved without risk.
Finally, this program and participation in it has always been carefully controlled. The participants need to be “clean” and generally exists a belief, by the Compliance Officers, that the Asset Provider will use their income from this program for the benefit of humanity. An acceptable benefit is not just humanitarian efforts but also those actions that create employment and advance the general quality of life on this planet – for profit and not for profit.

​​Private Placement Programs (PPP)
Background
The “United States Department of the Treasury” (US Treasury), fulfilling its
responsibilities under the Bretton Woods Agreements, developed the Medium
Term Note (MTN) by employing established European financing methods through
which banks and financial institutions commonly finance long-term loans by selling
Letters of Credit or Bank Notes of medium term to provide funding for loans.
In the post-World War II era, the US Treasury and its affiliates adopted the
protocols of the finance syndicates led by major European bank holding companies
that would issue their Medium Term Notes guaranteed by a matching US Treasury
Guarantee.
The US Treasury and the “Federal Reserve System” (Federal Reserve) developed an
instrument that may be traded to create new credit and that credit would be used
in specific approved macroeconomic projects allowing such funds and credit to be
applied in geographical areas requiring credit and cash infusions to survive and
grow. While that understanding or intent remains true today, it is no longer always
a necessary requirement for involvement in such initiatives.
Credit is created when the US Treasury, or its European equivalent, the European
Central Bank (ECB), can either make available to or de facto authorize those Bank
Instruments, at a discount (Primary Market Issue), to approved and pre-qualified
Private Placement Depositors with qualifying funds on deposit, known here as
“Asset Providers”.
Such contracts to purchase and sell these trading instruments are managed and/or
approved by the US Treasury which are administered by prime US and European
bank syndicates.
The US Treasury or the Federal Reserve may price these instruments at whatever
price is necessary to provide the needed new credit in the geographical location or
for the project(s) for which they have been approved.
Not all Applicants or Projects are approved. Both the Applicant and the funds that
will be used to purchase and sell the financial instruments must be screened
according to US Patriot Act and Anti-Money Laundering Guidelines and their
European equivalents.
The Asset Provider may be financing more than their own projects but all of the
projects must be submitted and subject to approval (although most projects do not
go through such a process.) When the earnings are generated they are deposited
in a Bank Project Account.
Generally, there is just one Principal (or Asset Provider). That Principal is the
owner of the Funds and the Principal is the Applicant to the “trade entity”, which
must also have the approval to trade from the US Treasury or the Federal Reserve.
The Investment Opportunity

This is a very low risk opportunity for an “investor” who can provide a cash deposit,
Bank Guarantee (BG) or a Standby Letter of Credit (SBLC) for a minimum of Euro
One Hundred Million (€100,000,000)this is for a Tier One Trading Program. (There is an opportunity to participate in a larger program with funds depending on the program of from 5 Million up to 100 Million Euros). This Bank Instrument (BI) allows the bank to provide credit facilities for the trading of MTNs. The returns to the investor (“Asset Provider”) are expected to be over 20% over a six week period net of costs. This expectation is based on the track-record over the last decade.
MAMC, a Singapore-based company, has approval for Euro One Billion
(€1,000,000,000)+ to be monetized to support one or more BI Private Buy-Sell
Program. MAMC forms a joint-venture with the Investor/Asset Provider bringing
the necessary links both to the banks and trading community. It also, most
importantly brings the experience, in the required procedures and processes, to
minimize any risks to the Investor.
MAMC’s vital role in the process is noted below.
How it Works
Private placement traders operate against non-depleting, tradeable lines-of-credit
or “blocked” cash accounts established on behalf of the Asset Provider/investor.
The Trader's lines-of-credit (regardless of whether BIs or blocked cash is provided)
are derived from prime banks that offer credit facilities. These credit-issuing
banks, however, are governed by the Basil II and Basel III Accords which became
effective in September, 2006 and January 2010, respectively, which impose strict
requirements on bank lending and borrowing. Most notably a bank’s credit lines
must be "capitalized" by an acceptable form of collateral (of sufficient value) held
"in the care, custody and control" of the credit issuing facility. The collateral is the
BI.

MAMC has well-established relationships with a number of prime banks.
This is the acid test of a trade program's viability. The controlling variable is
whether or not the trade group's procedures satisfy the credit-issuing bank's "care,
custody and control" standard for activating Credit Lines—the "control test.
MAMC’s does satisfy them.
Additionally, successful trade programs, besides having unique access to
established bank lines-of-credit, require the expertise of qualified traders capable
of engaging in the purchase and sale of investment-grade bank debentures in the
wholesale market. Traders are generally licensed by European regulatory agencies
and trades proceed according to strict procedural and legal guidelines (vetted by
MAMC). Under present rules, traders cannot use their own assets to trade.
This trading operation is generally referred to as a "controlled", "managed",
“closed” bank debenture trading effort because the Supply Side of the financial
instruments and the Exit Buyer for the financial instruments have already been
pre-arranged and the price of the instruments already established. Hence, each
and every completed trade will result in a net gain (and never a net loss) to the
trader.
The following procedural protocol will normally be followed:
• The investor’s funds are never touched (funds verification only).
• Targeted 30% yield per tranche to clients (maximum allowable by
authorities).
• Four tranches a week - with settlements on Friday – there may be multiple
trades on a given day.
• No Powers of Attorney.
• No surprises (the investor/Asset Provider will be a Signatory to the Buy-Sell
Trading Contract).
The crucial distinction, however, is that under a properly managed “buy-sell”
transaction the investor does NOT transfer any funds to an intermediary trader nor
are the funds required to be pledged or subjected to a lien.
Reasons for Superior Returns
Private Placement Programs (PPP) Background
The “United States Department of the Treasury” (US Treasury), fulfilling its
responsibilities under the Bretton Woods Agreements, developed the Medium
Term Note (MTN) by employing established European financing methods through
which banks and financial institutions commonly finance long-term loans by selling
Letters of Credit or Bank Notes of medium term to provide funding for loans.
In the post-World War II era, the US Treasury and its affiliates adopted the
protocols of the finance syndicates led by major European bank holding companies
that would issue their Medium Term Notes guaranteed by a matching US Treasury
Guarantee.
The US Treasury and the “Federal Reserve System” (Federal Reserve) developed an
instrument that may be traded to create new credit and that credit would be used
in specific approved macroeconomic projects allowing such funds and credit to be
applied in geographical areas requiring credit and cash infusions to survive and
grow. While that understanding or intent remains true today, it is no longer always
a necessary requirement for involvement in such initiatives.
Credit is created when the US Treasury, or its European equivalent, the European
Central Bank (ECB), can either make available to or de facto authorize those Bank
Instruments, at a discount (Primary Market Issue), to approved and pre-qualified
Private Placement Depositors with qualifying funds on deposit, known here as
“Asset Providers”.
Such contracts to purchase and sell these trading instruments are managed and/or
approved by the US Treasury which are administered by prime US and European
bank syndicates.
The US Treasury or the Federal Reserve may price these instruments at whatever
price is necessary to provide the needed new credit in the geographical location or
for the project(s) for which they have been approved.
Not all Applicants or Projects are approved. Both the Applicant and the funds that
will be used to purchase and sell the financial instruments must be screened
according to US Patriot Act and Anti-Money Laundering Guidelines and their
European equivalents.
The Asset Provider may be financing more than their own projects but all of the
projects must be submitted and subject to approval (although most projects do not
go through such a process.) When the earnings are generated they are deposited
in a Bank Project Account.
Generally, there is just one Principal (or Asset Provider). That Principal is the
owner of the Funds and the Principal is the Applicant to the “trade entity”, which
must also have the approval to trade from the US Treasury or the Federal Reserve.
The Investment Opportunity
This is a very low risk opportunity for an “investor” who can provide a cash deposit,
Bank Guarantee (BG) or a Standby Letter of Credit (SBLC) for a minimum of Euro
One Hundred Million (€100,000,000). This Bank Instrument (BI) allows the bank to provide credit facilities for the trading of MTNs. The returns to the investor (“Asset Provider”) are expected to be over 20% over a six week period net of costs. This expectation is based on the track-record over the last decade.
MAMC
MAMC, a Singapore-based company, has approval for Euro One Billion
(€1,000,000,000)+ to be monetized to support one or more BI Private Buy-Sell
Program. MAMC forms a joint-venture with the Investor/Asset Provider bringing
the necessary links both to the banks and trading community. It also, most
importantly brings the experience, in the required procedures and processes, to
minimize any risks to the Investor.
MAMC’s vital role in the process is noted below.
How it Works
Private placement traders operate against non-depleting, tradeable lines-of-credit
or “blocked” cash accounts established on behalf of the Asset Provider/investor.
The Trader's lines-of-credit (regardless of whether BIs or blocked cash is provided)
are derived from prime banks that offer credit facilities. These credit-issuing
banks, however, are governed by the Basil II and Basel III Accords which became
effective in September, 2006 and January 2010, respectively, which impose strict
requirements on bank lending and borrowing. Most notably a bank’s credit lines
must be "capitalized" by an acceptable form of collateral (of sufficient value) held
"in the care, custody and control" of the credit issuing facility. The collateral is the
BI. MAMC has well-established relationships with a number of prime banks.
This is the acid test of a trade program's viability. The controlling variable is
whether or not the trade group's procedures satisfy the credit-issuing bank's "care,
custody and control" standard for activating Credit Lines—the "control test.
MAMC’s does satisfy them.
Additionally, successful trade programs, besides having unique access to
established bank lines-of-credit, require the expertise of qualified traders capable
of engaging in the purchase and sale of investment-grade bank debentures in the
wholesale market. Traders are generally licensed by European regulatory agencies
and trades proceed according to strict procedural and legal guidelines (vetted by
MAMC). Under present rules, traders cannot use their own assets to trade.
This trading operation is generally referred to as a "controlled", "managed",
“closed” bank debenture trading effort because the Supply Side of the financial
instruments and the Exit Buyer for the financial instruments have already been
pre-arranged and the price of the instruments already established. Hence, each
and every completed trade will result in a net gain (and never a net loss) to the
trader.
The following procedural protocol will normally be followed:
• The investor’s funds are never touched (funds verification only).
• Targeted 30% yield per tranche to clients (maximum allowable by
authorities).
• Four tranches a week - with settlements on Friday – there may be multiple
trades on a given day.
• No Powers of Attorney.
• No surprises (the investor/Asset Provider will be a Signatory to the Buy-Sell
Trading Contract).
The crucial distinction, however, is that under a properly managed “buy-sell”
transaction the investor does NOT transfer any funds to an intermediary trader nor
are the funds required to be pledged or subjected to a lien.
Reasons for Superior Returns

There are three variables that work together to generate the high yields that
characterize PPP trades. The three variables are velocity, leverage and
compounding. The speed with which deals happen makes a massive difference to
the overall annual return.
The trading platform utilizes all three concepts within a unique financial
environment in a Top 25 bank to create an incredibly powerful vehicle that can
generate exceptional returns with no risk to the investment capital.
Structure of the Venture
There is an Agreement between MAMC and the Investor/Asset Provider or
Beneficiary of the BI (Bank Instrument), to cover the management of the BI. The
specifics of the Agreement are subject to negotiation, the variables reflecting the
degree to which the Investor wants to exercise day to day control. MAMC has built
the necessary relationships with the nominated bank(s) and institutions executing
the trades of Medium Term Notes -- the source of the profits.
The Agreements to be executed will provide that the Net Income will be shared on
a basis between the Asset Provider and MAMC that will reflect each individual
transaction but the primary beneficiary will be the Asset Provider. The Agreements
will clearly define the protocols that will guarantee non-depletion of the BI and
100% transparency of each BI purchase and sale. MAMC will also make sure that
the funds are actively engaged in qualifying purposes.
MAMC will of course assist in arranging whatever banking and company
requirements that the Asset Provider will require in Singapore.
Risks and their Management
There should be no material risks to the BI given that the absolute priority is the
preservation of its value and that the BI remains under the control of the Investor
at all times. The principal risks will occur if procedures are not rigorously followed.
This is where MAMC plays a crucial role.
The investor can withdraw within 30 to 35 banking day’s Notice. The Asset Provider
is not required to make any upfront fee payments.
May 2017

A DISCUSSION ADDRESSING THE NON-RISK INVOLVED IN AN INVESTMENT IN A TRADE PROGRAM

In listening to you earlier today, it seemed to me that the group was assuming there is a risk of depleting the Asset supporting the SBLC. THERE IS NO RISK to the Asset supporting SBLC.
1. Bring to MAMC a verifiable Bank Letter of Readiness (BLR) addressed to Account Signatory which BLR states simply that the Bank is ready to issue, say, a Euro 200 Million SBLC per the instructions of the Account Signatory. NO RISK in this action.
2. MAMC has the BLR verified as being authentic. NO RISK in this action.
3. The BLR is determined to be authentic. MAMC will then take the BLR, per the authority granted to it by the Asset Management Agreement between MAMC and the Asset Provider, to the trade lenders and achieve the highest LTV available in the market at the moment. NO RISK in this action.
4. Then, Contracts (Loan/Funding and Trade) are organized which contracts demonstrate that the Asset Provider has ZERO risk of the amount placed in the BLOCKED Account. THEN, the SBLC is issued for the Benefit of the Lender and the funds are moved into the BLOCKED Account which Blocked Account
will be the base for the leverage that the Trader will achieve. This leverage is the method that creates the high levels of income which are achieved. ALSO, the Lender provides the SBLC Provider their Commitment that the SBLC will be returned without depletion, etc. NO RISK in these actions.
5. The Asset Management Agreement and the Trade Contract establishes that if there is no performance within Thirty-five Banking Days (35 IBD), the SBLC will be released, without any lien and remember that the funds borrowed are in a blocked account which no person or entity can touch but the Asset Provider. NO RISK in this action.
6. The only risk is: ( A) no income which we cannot guarantee but remember it is MAMC’s goal to make sure there is income and that it is distributed per Agreement. There will be full transparency of the income accounts; and, (B) if the Asset Provider decides to allow the withdrawal of funds from the initial loan proceeds to cover expenses. AFTER the trade contract is
executed, those funds are not controlled as is the corpus defined in: 1, 2, 3, 4 and 5. above.

​FOR MORE INFORMATION ON THE OPPORTUNITIES IN PLATFORM TRADING PROGRAMS PLEASE CONTACT ME AT 203-254-0150 OR rtcooke@avantiadvisors.com. 

WE HAVE AVAILABILITY IN BOTH TIER ONE PROGRAMS - 100 MILLION EUROS AND ABOVE AND SMALLER TRADE PROGRAMS UNDER 100 MILLION EUROS.