1

Internal Novation Combinations

DB AG (LEMG)6151

1) Intra Entity - Original Trade is DB AG (LEMG) v DB AG (Flow). Action DB AG (LEMG) assign to BOA

DB AG (Flow)6151

DB AG (LEMG)6151SO

DB AG (Flow)6151RP

BOASI

Fee

1.0 Internal Trade – No paper nor DTCC message

1.1 External Trade needs legal confirm

Tri Party Novation

DB AG (LEMG) SODB AG (Flow) RPBOA (SI)

1.0

1.1

DB AG (QVT)7714

2) Inter Entity - Original Trade is DB AG (QVT) v DB AG (Flow). Action DB AG (QVT) assign to BOA

DB AG (Flow)6151

DB AG (QVT)7714SO

DB AG (Flow)6151RP

BOASI

Fee

2.0

2.1

2.0 Internal Trade – No paper nor DTCC message

2.1 External Trade needs legal confirm

Tri Party Novation

DB AG (QVT) SODB AG (Flow) RPBOA (SI)

Notification: YesDTCC Assignment Confirmable: Yes

Notification: YesDTCC Assignment Confirmable: Yes

2

Internal Novation Combinations ctd…

DB AG (LEMG)6151

BOADB AG (LEMG)

6151SO

BOARP

DB AG (Flow)6151

SI

Fee

3) Intra Entity : Original Trade is DB AG (LEMG) v BOA. Action DB AG (LEMG) assign to DB AG (Flow)

3.0 External Trade: Paper or DTCC confirm

3.1 Do not need to legally confirm but need to keep Warehouse Gold

No novation due to Step In Party being same legal entity to Step Out (and no change in settlement instructions).

Instead internal rebook, no request for consent but use TRI Rename functionality.

3.0

3.1

DB AG (QVT)7714

BOADB AG (QVT)

7714SO

BOARP

DB AG (Flow)6151

SI

Fee

4) Inter Entity Original Trade is DB AG (QVT) v BOA. Action DB AG (QVT) assign to DB AG (Flow)

4.0 External Trade: Paper or DTCC confirm

4.1 Need to confirm and keep Warehouse Gold. Request for Consent and Tri Party Novation.

DB AG (QVT) SOBOA RPDB AG (Flow) SI

4.0

4.1

Novation Protocol: NoNotification: No

DTCC Assignment Confirmable: No TRI Rename Functionality: Yes

Notification: YesDTCC Assignment Confirmable: Yes

3

Internal Novation Combinations ctd…

BOA

5) Intra Entity - Original Trade is BOA v DB AG (LEMG). Action BOA assign to DB AG (Flow)

DB AG (LEMG)6151

BOASO

DB AG (LEMG)6151RP

DB AG (Flow)6151

SI

Fee

5.0 External Trade: Paper or DTCC confirm

5. 1 Need to confirm and keep Warehouse Gold

BOA SODB AG (LEMG) RPDB AG (Flow) SI

5.0

5.1

BOA

6) Inter Entity - Original Trade is BOA v DB AG (QVT). Action BOA assign to DB AG (Flow)

DB AG (QVT)7714

BOASO

DB AG (QVT)7714RP

DB AG (Flow)6151

SI

Fee

6.0 External Trade: Paper or DTCC confirm

6. 1 Need to and keep Warehouse GoldTri Party Novation.

BOA SODB AG (QVT) RPDB AG (Flow) SI

6.0

6.1

Novation Protocol: NoNotification: No

DTCC Termination Confirmable: Yes

Notification: YesDTCC Assignment Confirmable: Yes

4

Internal Novation Combinations ctd…

7.0

MS – Client Trade gets terminated in DTCC

7.2 Need to confirm and keep Warehouse Gold

MS PB SOMS Flow SIGS RP

MS(PB)

Client

7) Internal PB Step our Model - Original Trade is GS Executing Broker (EB) MS Prime Broker (PB) v Client. Action MS (PB) Client assign to MS Flow (assume MS want to remain in the trade and have the same Participant ID)

GS(EB)

7.0

7.1

MS(PB)SO

Client

GS(RP)

7.2

MS (Flow)SI

Fee

MS(PB)

Client

8) Prime Brokerage Step Out Party Model - Original Trade is GS Executing Broker (EB) MS Prime Broker (PB) v Client. Action Client assign to DB AG

GS(EB)

8.0

8.1

MS(PB)SO

Client

GS(EB)RP

8.2

DBSI

Fee

8.0 and 8.1

2 External Trades: Paper or DTCC confirm

8.2 Need to legally confirm and keep Warehouse Gold

MS (PB) SODB SIGS (EB) RP

And MS (PB) Terminate their Client leg.

Give Up

Give Up

Notification: YesDTCC Assignment Confirmable: Yes

Novation Protocol: YesDTCC Assignment Confirmable: Yes

5

Internal Novation Combinations ctd…

7.0 GS – Client Trade gets terminated in DTCC

7.2 GS PB assigns the position to MS PB and creates an internal trade – MS PB vs MS flow

GS PB SOMS PB SIMS Flow RP

GS(PB)

Client

7a) Internal PB Step out Model - Original Trade is MS Executing Broker (EB) GS Prime Broker (PB) v Client. Action GS (PB) Client assign to MS PB (SI) client to face MS Flow (RP)

MS (Flow)(EB)

7.0a

7.1a

GS(PB)SO

MS (Flow)(RP)

7.2

MS (PB)SI

Fee

Give Up

Novation Protocol: NoNotification: No

DTCC Assignment Confirmable: No TRI Rename Functionality: Yes

6

Internal Novation Combinations ctd…

9.0DB – Client Trade gets terminated in DTCC

9.1 Need to confirm and keep Warehouse Gold

9.2 External Trade need legal confirm

Tri Party Novation

DB (PB) SODB (Flow) RPBOA SI

DB(PB)

Client

9) DB Prime Brokerage Step Out Party Model – Original Trade is DB Flow (EB) DB Prime Broker (PB) v Client. Action Client assign to BOA

DB Flow(EB)

9.0

9.1

DB(PB)SO

Client

DB Flow(RP)

9.2

BOASI

Fee

Give Up

Notification: YesDTCC Assignment Confirmable: Yes

Internal Deal

7

Internal Novation Combinations ctd…

10.0 External Trade: Paper or DTCC confirm

10.1 and 10.2 Client SOGS Capital Markets RP/SOGS International SIDB AG SI/RP

GS Capital Mkts ClientClient

SO

GS Capital Mkts

RP/SO

GS InternationalSI

Fee

10) Original Trade is GS International v Client. Action Client assign to DB AG

DB AGSI/RP

10.0

10.210.1

Novation Protocol: YesDTCC Assignment Confirmable: Yes

8

Internal Novation Combinations

LEH (GPS) 6171

11) Intra Entity - Original Trade is LEH (GPS) v LEH (Flow). Action LEH (GPS) Partially assigns to BOA

LEH (Flow)6171

LEH (GPS)6171SO

LEH (Flow)6171RP

BOASI

Fee

11.0 Internal Trade – No paper nor DTCC message

11.1 Need to confirm and keep Warehouse Gold

Outside Partial Novation

RP – LEH (FLOW)SI – BOASO – LEH (GPS)

11.0 11.1

Notification: YesDTCC Assignment Confirmable: Yes

Partial Assignment

9

Internal Novation Combinations ctd…

LEH (GPS)6171

BOALEH (GPS)

6171SO

BOARP

LEH (Flow)6171

SI

Fee

12) Intra Entity : Original Trade is LEH (GPS) v BOA. Action LEH (GPS) Partially assigns to LEH (Flow)

12.0 External Trade: Paper or DTCC confirm

12.1 Need to confirm and keep Warehouse Gold

RP: BOASI: LEH (Flow)SO: LEH (GPS)

12.012.1

Notification: YesDTCC Assignment Confirmable: Yes

Partial Assignment