Deutsche Bank Equities. Smarter Liquidity.

Transcription

1 Deutsche Bank Equities Smarter Liquidity

2 Autobahn Deutsche Bank s award-winning electronic distribution service Since 1996, Autobahn has been connecting clients to Deutsche Bank s innovative Capital Markets products and services. Having started life primarily as an execution tool, the new Autobahn now also provides electronic access to Deutsche Bank s wealth of sales, trading and research know-how as well as seamless access to all of your transaction banking services. The result: An integrated experience combining powerful insight and execution applications with our outstanding voice services. Autobahn is a simple, intuitive and consistent way for you to: Gain unparalleled access to markets and liquidity Electronically trade across multiple asset classes: Foreign Exchange, Fixed Income, Equities, Commodities, Credit, Rates and Emerging Markets Intuitively access Deutsche Bank s powerful analytics and published content straight from our trading floor 24/7 access to all of your transaction banking services, independent of physical location New in 2011: The Autobahn App Market

3 1 Overview In a world of increasingly complex and rapidly evolving electronic markets, you need a partner with cutting edge technology and global access to the best pools of liquidity. Your executions need to balance the efficiency of extracting liquidity while controlling market impact and maintaining anonymity. Our trading solutions are engineered by the best in the industry, connecting you to our global depths of liquidity with the expertise of Deutsche Bank to help you manage it. We call this Smarter Liquidity. Autobahn is Deutsche Bank s algorithmic trading platform, providing you with access to execution solutions in markets worldwide. The platform combines award-winning algorithms* with our Direct Market Access (DMA) offering for smarter liquidity. Autobahn maintains offices in London, New York, Hong Kong, Tokyo, Singapore and Sydney. Deutsche Bank Ranked Number 1 World s Best Broker and North America s Best Broker.** *The Trade 2010 Algorithm Trading Awards **The World s Best Brokers Rankings, Bloomberg Markets, April 2011

4 2 Products and Service Offering We believe that product innovation only benefits our clients if it is closely aligned with service innovation. Clients can manage executions, access intelligence and trade on opportunities through our award-winning DMA platform* and sophisticated algorithm suite. Our understanding of market microstructure translates into smarter execution solutions for you. Global Access A global leader in market share with access to over 70 markets Detailed knowledge of market microstructure, crucial for finding hidden liquidity in the world s increasingly complex liquidity pools Product Innovation Global direct market and liquidity pool access Award-winning quantitatively engineered trading algorithms available across global execution venues including liquidity pools System-agnostic product suite, offering fully integrated solutions to the EMS/OMS of your choice Available for trading cash or on swap Industry leading high-frequency, Hosted DMA (HDMA) and Sponsored Access product offering World Class Service Dedicated specialists in every major trading hub for advice and support to enhance your trading decisions Available wherever you are, whatever the time, utilizing real-time global monitoring tools Tailored solutions to meet all of your execution needs: from trading to analytics, market structure and research Deep understanding of strategy performance, trading style and order optimization: timing, placement strategy and cost Insight Sophisticated performance reporting and execution analysis tools to identify the best opportunities worldwide Comprehensive pre-trade & post-trade analytics for assessing performance and optimal liquidity sources Real-time access to Global Markets award winning research and analytics across all asset classes *The Trade 2010 Algorithm Trading Awards

5 3 Market Coverage Market Coverage EMEA DMA Algo Athens Stock Exchange p p BATS Dark BATS Europe p p Budapest Stock Exchange p Chi-X p p Chi-delta Dubai Stock Exchange (DIFX) p Dublin Stock Exchange p p Euronext Amsterdam p p Euronext Brussels p p Euronext Lisbon p p Euronext Paris p p Istanbul Stock Exchange p ITG Posit Johannesburg Stock Exchange (LSE) p p Liquidnet London Stock Exchange (LSE) p p Madrid Stock Exchange p p Milan Stock Exchange p p NASDAQ OMX Europe p p OMX Copenhagen p p OMX Helsinki p p OMX Iceland p OMX Stockholm p p Oslo Stock Exchange p p Prague Stock Exchange p SIX Swiss Exchange p p Tel Aviv Stock Exchange (TASE) p Turquoise p p Turquoise Dark Vienna Stock Exchange p p Xetra (Germany) p p Xontro (Germany) p Warsaw Stock Exchange p Americas - Canada DMA Algo Chi-X p p Pure p p TriAct MATCH Now (Liquidity Pool) p p TSX Venture p p Toronto Stock Exchange (TSX) p p Americas - Latin America DMA Algo Brazil Stock Exchange (BOVESPA) p p Mexico p Q Americas - US DMA Algo NYSE (Amex) p p BATS Trading (BYX) p p BATS Trading (BZX) p p CBOE Stock Exchange (CBSX) p p Chicago Exchange (CHX) p p DirectEdge A (EDGA) p p DirectEdge X (EDGX) p p LavaFlow p p NASDAQ OMX PHLX p p NASDAQ OMX BX p p NASDAQ Stock Exchange p p National Stock Exchange (NSX) p p NYSE p p NYSE Arca p p Americas - US DMA Algo BIDS p p BNY ConvergEx Vortex p p Instinet CBX p p ISE MidPoint Match p p Knight p p LeveL ATS p p Liquidnet H2O p p NYFIX Millennium p p Pulse BlockCross p p Other LiquidityPools p p Asia DMA Algo Australian Stock Exchange p p China p p Hong Kong Stock Exchange (HKSE) p p India (BSE & NSE) p p Indonesia p p JASDAQ p p Korea Stock Exchange (KSE) p p KOSDAQ p p Malaysia p p Osaka Securities Exchange (OSE) p p Singapore Stock Exchange p p Taiwan Stock Exchange p p Thailand (SET) p p Tokyo Stock Exchange (TSE) p p Proprietary and confidential

6 4

7 5 Algorithms in Action Autobahn s trading solutions are engineered by the best in the industry, bringing you Smarter Liquidity with the expertise of Deutsche Bank to help you manage it. Our sophisticated, award winning algorithm suite allows our clients to manage executions more efficiently, access the latest market intelligence and trade on opportunities. Our strategies are built with flexibility in their design, offering customizable parameters and system agnostic solutions to suit your individual trading needs. Personalizing your Algorithm Strategy Specific Parameters Offers dynamic control over regional strategies Consultative Customisation Dedicated consultants are on hand to change the logic of any algorithm to tailor it to your needs Would Parameters Allows you to trade a portion of the parent order, specified in absolute or relative terms, in response to changing market conditions - optimal balance of simplicity & flexibility Relative Performance Controls Protects against adverse movements whilst capitalising on favourable short term movements Risk Management Controls Pre-Program your response to potential market moves in order to gain an optimal balance of protection and exposure For illustration purposes only Autobahn Equity Algorithmic Offering for Equities Algorithm Americas Asia Australia Europe Japan S. Africa SuperX Plus p p p p p Stealth p p p p p p POV p p p p p p IS p p p p p p VWAP p p p p p p TWAP p p p p p p Target Close p p p p p SmartPeg p p p p p SmartIceberg p p p p p Arrival Price p p p Seeker p p OPX p p

8 6 SuperX Plus SuperX Plus intelligently seeks dark liquidity while offering a sophisticated level of order protection for smarter execution. It is dark trading made intelligent, bringing you global access to the best pools of liquidity. The algorithm provides access to deep, diverse liquidity without advertising your size or intent to the market, minimizing the risk of information leakage. SuperX Plus is highly customizable and can be finely tuned to the individual trader. Protection at each level of urgency is achieved by multiple anti-gaming measures and a Smart Allocation model. Urgency - Quality vs Quantity Trade-off Low High quality Fewer available pools Conservative gaming prevention Minimal footprint Moderate For illustration purposes only Balance quality/ fill rates Most but not all available pools Moderate gaming prevention Tiny footprint High High fill rates All available pools Extreme outliers gaming prevention Low footprint Client Parameters Required Strategy; Urgency Optional None Trade Example Buy 2 million XYZ shares find me the hidden liquidity and do so quietly ensuring minimum information leakage. Algo Order Buy 2 MM XYZ, Urgency = Moderate Urgency is used to optimize your preferred trade-off between fill probability and the total cost of execution. The higher the level of urgency, the higher the fill probability. Select LOW urgency for the highest level of order protection or HIGH urgency for the highest fill rates. The strategy provides built-in sophisticated features to make your executions more efficient: A Pool Ranking Model ranks liquidity on a real-time and historical basis to determine the optimal sources according to the order characteristics and urgency. Anti-gaming logic based on Autobahn s Dynamic Return Model, is designed to protect against possible adverse selection. The logic analyzes real-time information to detect small fishing orders, spread closing and disadvantageous market events. The Smart Allocation Model balances the optimal fill probability versus the total cost of execution. The dynamic MAQ (Minimum Acceptable Quantity) is designed to protect against pinging and order discovery. Performance reporting and execution analysis allows you to monitor the efficiency of your execution.

9 7 Stealth Stealth is Deutsche Bank s next generation liquidity seeking algorithm. The strategy utilizes advanced high frequency alpha models to source dark and bright liquidity, identifying short-term market signals for smarter executions. By continually adapting to intraday market conditions, Stealth rapidly captures trading opportunities when quality liquidity is discovered. Underpinned by SuperX Plus, the industry s leading dark liquidity seeking algorithm* Highly customisable for all trading styles Alpha generation through rigorously back-tested high-frequency price forecasting models Regional market microstructure optimisation *The World s Best Brokers Rankings, Bloomberg Markets, April 2011 Bright Liquidity Stealth Dynamic Return Model Rapid Price Movement Model Momentum Model Dark Liquidity SOR SuperX Plus Urgency Historical Pool Performance Client Order Attribute Real-time Pool Performance Dark Pool Ranking Model Pool 1 Pool 2 Pool 3 Pool 4 Pool 5 Allocation Optimization Gaming Prevention Logic Access to Smarter Liquidity Primary Exchanges / DB Natural Liquidity / Bright ECNs/MTFs / Dark ECNs/MTFs / Broker Liquidity Pools Hypothetical example shown. Past performance is not indicative of future performance.

10 8 Percentage of Volume The Percentage of Volume strategy aims to pace the execution of single-stock orders to match a target percentage of market volume. Variable participation can be applied to capitalize on expected short-term price movements: the target percentage may be set to vary with absolute or relative stock performance. Client Parameters Required Strategy; Target Participation Optional Start time; End time; MOO; MOC; Variation; Conditional Parameters Overlay Scaling Participation by Price Levels: For example, let s say you submit an order to BUY 20,000 shares of XYZ at 11% participation rate with the current stock price at If no major events on XYZ are foreseen and the overall market is forecast to remain flat, price movements could be expected to revert to the arrival price. To take advantage of this, you may decide to direct the strategy to reduce the participation rate to 5% for stock prices above and to increase the participation rate to 15% for stock prices below With these settings, the strategy trades at an 11% participation rate at the initial price and varies from 15% to 5% for stock price between and Variable Participation (Absolute Price) 16% 14% 12% Participation 10% 8% 6% 4% 2% Source: Deutsche Bank Securities Inc. Price Hypothetical example shown. Past performance is not indicative of future performance. Algorithm performance may differ from the chart examples. For illustration purposes only

11 9 Scaling Participation by Relative Performance Now, let s say you submit an order to BUY 10,000 shares of XYZ at a target rate of 10%. The market is forecast to move upwards and an announcement is scheduled for XYZ, which could have significant impact on the stock price. To take advantage of a directional move of the stock price, you may decide to reduce the participation rate to 4% if the stock underperforms the Stoxx by 60 bps and to increase it to 14% if the stock outperforms the Stoxx by 60 bps. With these settings the strategy trades at a 10% participation rate at the start time and varies from 4% to 14% for relative stock returns between -60 bps and +60 bps. In this scenario, if the stock rallies with respect to the benchmark, the strategy accelerates trading to minimize impact. Conversely, if the stock underperforms the benchmark, the strategy slows down trading to capture the favorable price trends. Finally, if the announcement is inconsequential, the stock return follows the market and the stock trades at the target rate of 10%. Variable Participation (Relative to Benchmark) 16% 14% 12% Participation 10% 8% 6% 4% 2% Source: Deutsche Bank Securities Inc. Relative Performance Hypothetical example shown. Past performance is not indicative of future performance. Algorithm performance may differ from the chart examples. For illustration purposes only

12 10 Implementation Shortfall The IS strategy is designed to minimize slippage from the arrival price while balancing the trade-off between market impact and risk. Aggressive In-the-Money Behavior Price level (right axis) Arrival price (right axis) Moderate Moderate & AITM Aggressive 100% % % Complete 60% 40% % % :20 8:30 8: :00 9:10 9:20 9:30 9:40 9: Time The strategy generates optimized trading schedules designed to: Reduce the market impact of the order Minimize the risk due to price fluctuations Adjust for changing market conditions The overall trade-off between cost and risk reduction is determined by the level of urgency and the trading duration. Client Parameters Required Strategy; Urgency Optional Start time; End time (defaults to continuous close); ITM Behavior, ITM Style; MOO; MOC; Participation Cap; Conditional Parameters Overlay Trade Example Buy 300,000 XYZ with a 10.8 top ASAP. Algo Order Buy 300,000 XYZ; Limit: 10.8; Urgency: High; ITM Style: Aggressive

13 11 Seeker Seeker is architected to meet the demands of program trading (high sustained order volume) and high frequency statistical arbitrage trading (low latency). The strategy engine typically adds a latency of approximately 1ms under a load of 2,000 orders/sec. Seeker High Speed Seeker Aggressive Seeker Neutral Dark Seeker Passive Bright Seeker Dark High Price Improvemement For illustration purposes only Parameters Order Type: Supports market and limit orders Time In Force: Day and IOC Display Quantity: Sets the number of shares displayed when posting Seeker Aggressive Primarily accesses displayed liquidity at high-speed, bright venues. Hidden liquidity at bright and liquidity pools is accessed for large orders, but displayed liquidity is always preferred to hidden. Seeker Neutral Primarily seeks bright liquidity and high fill rates, but interacts with bright and dark orders at multiple venues. Seeker Passive Aims to minimize the order s footprint in the market by using hidden midpoint peg orders at bright venues. Seeker Passive will eventually cross the spread, if the order is marketable and the trading rate drops below a stock-specific threshold. Seeker Dark Only interacts with dark liquidity at prices better than the NBBO. Both dark and bright venues are used, but orders may be hidden and may use minimum execution quantity parameters to control information leakage.

14 12 VWAP The VWAP strategy is designed to pace the execution of single stock orders to match the historical distribution of volume within user-specified time periods. Expected market volume is estimated from historical volume profiles calculated on a per-stock basis. An order placement algorithm determines the size and timing of child orders to account for the expected volume and short-term market signals. Traders have the added flexibility of controlling participation levels to limit impact and to participate at the Open and/or Close for a targeted over the day VWAP execution. VWAP Trading Curve Predicted Volume Profile Trading Curve Predicted Volume Profile Time Source: Deutsche Bank Securities Inc. For illustration purposes only Client Parameters Required Strategy Optional Start time; End time; MOO; MOC; Participation Cap; Conditional Parameters Overlay Trade Example Buy 200,000 XYZ with a 75 top from now until 3pm being no more than 30% of the volume. Algo Order Buy 200,000 XYZ; Limit: 75; Start Time: NOW; End Time: 15:00; Participation Cap: 30%

15 13 TWAP The TWAP trading strategy seeks to minimize the expected negative deviation of the average trade price compared to the time weighted average price during the life of the order. Traders have the added flexibility of controlling participation levels to limit impact and of opting out of trading at the Open or Close for a targeted user-defined time period. TWAP Trading Curve Predicted Volume Profile Trading Curve Predicted Volume Profile Time Source: Deutsche Bank Securities Inc. For illustration purposes only The strategy is designed to: Add a maximum percentage volume cap for even greater control of the order. When MOO/MOC are enabled, the TWAP strategy places a percentage of the order in the open and/or close that matches the percentage of daily volume that is expected to trade. Client Parameters Required Strategy Optional Start time; End time (defaults to continuous close); MOO; MOC; Participation Cap; Conditional Parameters Overlay Trade Example Buy 500,000 XYZ with a 39 top over the next 6 hours being no more than 25% of the volume. Algo Order Buy 500,000 XYZ; Limit: 39; Start Time: NOW; End Time: 14:00; Participation Cap: 25%

16 14 Target Close The Target Close strategy is designed to execute single-stock orders benchmarked to the official closing price. The algorithm executes orders on an optimized trading schedule, customizable by user-specified levels of risk aversion. Target Close Sample Schedules (Varying Risk Aversion) 100% Low Medium High 90% %Order Completion 80% 70% 60% 50% 40% 30% 20% 10% 0% :09 15:14 15:19 15:23 15:28 15:33 15:38 15:42 15:47 15:52 15:57 Time Source: Deutsche Bank Securities Inc. For illustration purposes only The strategy is designed to: Reduce the market impact of the order Attempt to minimize the deviation from the closing price Adjust behavior to incorporate the information contained in the published closing Client Parameters Required Strategy; Risk Aversion Optional Start time; Max MOC and Min MOC Participation; Participation Cap; Conditional Parameters Overlay Trade Example Sell 450,000 XYZ with a 5.28 low with no more than 30% on the close. Algo Order Sell 450,000 XYZ; Limit: 5.28; Start Time: NOW; Max MOC: 30%

17 15 SmartPeg The Smart Peg strategy seeks to peg orders to a specified price level while displaying on the market only a limited amount of the total order at any time. The strategy evaluates the peg expression whenever the reference price changes and adjusts its position in the market accordingly. Client Parameters Required Strategy; Price Expression; Display Quantity Optional Start time; End time (defaults to continuous close); Participation Cap; Refill Quantity Trade Example Buy 5,000,000 XYZ with a 7.80 top. Float two ticks below the bid and do not pay the spread. I want to show 75,000 shares and refill my display quantity when 25,000 shares have been executed. Algo Order Buy 5,000,000 XYZ; Limit: 7.80; Peg: Bid-2; Display: 75,000; Refill: 25,000 SmartIceberg The Smart Iceberg strategy will execute your order while only displaying a limited amount of the total order quantity. The strategy allows you to manage exchange specific iceberg order rules by creating synthetic order functionality. Client Parameters Required Strategy; Display Quantity Optional Start time; End time (defaults to continuous close); Participation Cap; Refill Quantity Trade Example Buy 10,000,000 XYZ with a 1.55 top and show 300,000 shares. Refill once 100,000 shares have traded. Be no more than 20% of the volume. Algo Order Buy: 10,000,000; Limit Price: 1.55; Participation Cap: 20%; Display: 300,000; Refill: 100,000 Arrival Price Client Parameters Required Strategy; Time/Impact Trade-Off; Spread Logic Optional Start time; End time (defaults to continuous close); Force Completion; Participation Cap; Conditional Parameters Overlay Trade Example Sell 125,000 XYZ. Happy to lose them here, but don t want to move the stock. Work with the offer side and need to be done today. Algo Order Buy 500,000 XYZ; Limit: 39; Start Time: NOW; End Time: 14:00; Participation Cap: 25%

18 16 Optimal Portfolio Execution (OPX) OPX is a portfolio based Implementation Shortfall algorithm designed to generate optimized trading schedules to reduce overall impact, minimize total portfolio exposure to market volatility and dynamically adjust for changing market conditions. User-supplied constraints and preferences are available to influence the behavior of the strategy based on the trader s views on risk. Traders can specify views on overall portfolio expected return and the expected return of individual constituents. Urgency Execution Behavior Low Medium High Portfolio Value (USD mm) The chart shows the trading trajectories for a delta-neutral portfolio submitted to the OPX algorithm with varying levels of Urgency. Higher Urgency settings execute more rapidly to reduce risk. Lower Urgency settings extend the trading time in order to reduce market impact :30 AM 10:00 AM 10:30 AM 11:00 AM 12:00 AM 12:30 AM 1:30 PM 2:00 PM 2:30 AM 3:00 PM 3.30 PM 4:00 AM Time Source: Deutsche Bank Securities Inc Hypothetical example shown. Past performance is not indicative of future performance. Algorithm performance may differ from the chart examples. For illustration purposes only Client Parameters Required Strategy; Urgency Optional Start time; End time (defaults to continuous close); Cash Imbalance; ITM Behavior; MOO; MOC; Participation Cap; Portfolio Alpha; Ticker (1-5); Alpha (1-5) Trade Example A portfolio with a marked initial long-short imbalance is at first traded rapidly to reduce the overall portfolio risk. OPX chooses which stocks to trade based on their expected market volatility, their correlation with other stocks in the portfolio and expected impact costs. Thereafter, having achieved a low-risk portfolio, the portfolio trades slowly to completion. Algo Order Urgency: High; Cash Imbalance: Cash Neutral; Participation Cap: 30%; Portfolio Alpha: 10bps

19 17 World s Best Broker Deutsche Bank is a major player in the world s equity markets, delivering innovative trading solutions across a diverse client base. The platform provides access to a global network of execution and high-touch services establishing a gateway for idea generation and crossborder expertise. Liquidity, proprietary content and price discovery are at the core of Deutsche Bank s equity offering. Deutsche Bank got the best stock prices for institutional clients both globally and in North America. The World s Best Brokers Rankings, Bloomberg Markets, April 2011 World s Best Brokers Differential in basis points* 1 Deutsche Bank Credit Suisse Macquarie Group Liquidnet UBS Citigroup Nomura Holdings Jefferies Goldman Sachs BNY ConvergEx Group North America s Best Brokers Differential in basis points* 1 Deutsche Bank Jefferies Liquidnet Knight Capital Group Citigroup *Difference between the broker s actual loss (from the time the broker received the order to the executed stock price) and the median result, or benchmark, from a universe of similar trades. When the differential is negative, the broker missed the benchmark. Ranking is for the four quarters ended on Sept. 30, Source: Ancerno Equity Trading Offering A world class Equity trading platform with access to over 90% of the investable markets globally. Agency Execution Expertise Single Stock Facilitation Block Trading Agency and Principal Portfolio Trading Direct Market Access Algorithmic Trading Capital Commitment Market Making Global Distribution Strength An unparalleled presence in markets worldwide with specialists dedicated to client excellence in local geographies. Institutional Research Sales Sales Trading Corporate Access Program Sales Autobahn Sector Specialist Sales Hedge Fund Sales Commission Management Services Industry Leading Research A leading global research house with publishing analysts dedicated to delivering cutting edge investment ideas ahead of the market. Multi-Asset Research Country Research Sector Research Strategy Quantitative Research Equity Capital Markets Solutions A recognized market leader in Equity and Equity-linked issuance, offering innovative capital solutions to corporates worldwide. IPOs Follow-on Offerings Rights Issues Block Trades Monetisations Accelerated Book Buildings Private Placements Convertible/Exchangeable Bonds

20 Deutsche Bank Equities Deutsche Bank and Autobahn Autobahn, Deutsche Bank s award-winning electronic distribution service, provides you with access to Deutsche Bank s suite of equity electronic trading applications. Clients can manage executions more efficiently, access the latest market intelligence and trade on opportunities through our award-winning platform and sophisticated algorithm suite. Autobahn s equity trading solutions are engineered by the best in the industry, bringing you Smarter Liquidity with the expertise of Deutsche Bank to help you manage it. For further information, contact your regional representative: Bloomberg: DBEQ <GO> US Europe Asia Japan Australia or Printed November 2011 MARKETING MATERIAL This document is intended for discussion purposes only and does not create any legally binding obligations on the part of Deutsche Bank AG and/or its affiliates ( DB ). Without limitation, this document does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on any specific final documentation relating to a transaction and not the summary contained herein. DB is not acting as your legal, financial, tax or accounting adviser or in any other fiduciary capacity with respect to any proposed transaction mentioned herein. This document does not constitute the provision of investment advice and is not intended to do so, but is intended to be general information. Any product(s) or proposed transaction(s) mentioned herein may not be appropriate for all investors and before entering into any transaction you should take steps to ensure that you fully understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives, needs and circumstances, including the possible risks and benefits of entering into such transaction. For general information regarding the nature and risks of the proposed transaction and types of financial instruments please go to disclosures. You should also consider seeking advice from your own advisers in making any assessment on the basis of this document. If you decide to enter into a transaction with DB, you do so in reliance on your own judgment. The information contained in this document is based on material we believe to be reliable; however, we do not represent that it is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance does not guarantee or predict future results. This material was prepared by a Sales or Trading function within DB, and was not produced, reviewed or edited by the Research Department. Any opinions expressed herein may differ from the opinions expressed by other DB departments including the Research Department. Sales and Trading functions are subject to additional potential conflicts of interest which the Research Department does not face. DB may engage in transactions in a manner inconsistent with the views discussed herein. DB trades or may trade as principal in the instruments (or related derivatives), and may have proprietary positions in the instruments (or related derivatives) discussed herein. DB may make a market in the instruments (or related derivatives) discussed herein. Sales and Trading personnel are compensated in part based on the volume of transactions effected by them. DB seeks to transact business on an arm s length basis with sophisticated investors capable of independently evaluating the merits and risks of each transaction, with investors who make their own decision regarding those transactions. The distribution of this document and availability of these products and services in certain jurisdictions may be restricted by law. You may not distribute this document, in whole or in part, without our express written permission. DB SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY RELIANCE ON THIS DOCUMENT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF. DB is authorized under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and regulated by the Financial Services Authority for the conduct of UK business. In the US this document is approved and or distributed by Deutsche Bank Securities Inc., a member of the NYSE, FINRA, NFA and SIPC. IN AUSTRALIA: Deutsche Bank holds an Australian financial services licence (AFSL ). In SAUDI ARABIA: Deutsche Securities Saudi Arabia ( DSSA ) is regulated by CMA under authorization no DSSA is located on the 17th floor, Al-Faisalia Tower, Riyadh. Tel / Fax IN DUBAI: This information has been provided to you by Deutsche Bank AG Dubai (DIFC) branch, an Authorised Firm regulated by the Dubai Financial Services Authority. It is solely directed at Market Counterparties or Professional Clients which meets the regulatory criteria as established by the Dubai Financial Services Authority and may not be delivered to or acted upon by any other person. In MALAYSIA: This document is distributed in Malaysia by Deutsche Bank (Malaysia) Berhad. In JAPAN: This document is prepared by [Deutsche Bank AG London Branch] and is distributed in Japan by Deutsche Securities Inc. ( DSI ).