HOW THE MANAGED “BUY-SELL” PROGRAM WORKS
Please keep in mind that our Managed, (Closed-End) "Buy-Sell" Opportunity is not a
Trading Program – it is a “Buy-Sell” or “Buy-Sell” Program.
There is no Trader!
The client's funds are not pledged or blocked. No credit facility or SWIFT MT 760 (or
SWIFT MT 103) is used. The client's funds are merely verified by the Provider prior to
each "buy-sell" tranche in order to ensure that sufficient funds are available to permit a
legal "buy-sell" transaction to take place. For your information, if funds were not
sufficiently available and a "buy-sell" transaction attempted, the transaction would be
deemed an illegal arbitrage - and this would hold true whether the client were buying and
selling financial instruments or barrels of oil or shipments of grain.
In general terms, here’s how the “Buy-Sell” works…
These "Buy-Sell" Program opportunities are typically referred to as "controlled" or
"managed" (or "closed-end") "buy-sell" operations 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 contracted for; hence, each and every
completed "buy-sell" tranche will result in a net gain (and never a net loss) to the client.
In this instance, the Provider will contract with the client to deliver financial instruments at
a fixed price. As part of the same transaction, the Provider will also arrange for the client
to contract with an exit buyer to purchase out the financial instruments at a higher fixed
price - with the spread between the "buy price" and the "sell price" a targeted 30 points
per tranche. Once the transaction commences, the client's funds will be verified by the
Provider prior to each scheduled tranche (for the reasons explained above); then, as part
of the pre-contracted for "buy-sell" transaction, the financial instruments will be sold on to
the stipulated exit buyer at the pre-agreed higher price - contractually guaranteeing a net
profit to the client, and never a net loss.
The Provider anticipates four "buy-sell" tranches a week, Monday through Thursday, with
settlements on Friday. The spread between the "buy price" and the "sell price" - a targeted
30 points per tranche - will be remitted, in full, by the Provider to the client at the end of
each week. For your information, the Provider's exit buyers are typically major,
experienced buyers, in many cases, with assets in the billions, who, in turn, normally exit
the paper to major pension funds and trusts around the world.
Please keep in mind that actual yield amounts may vary, depending on market conditions,
regulations and pricing of financial instruments at the time of contract. All pricing, terms
and conditions, however, will be set forth in the Master "Buy-Sell" Contract and agreed to
by the client prior to any transaction taking place. And, of course, once agreements have
been executed, the profit yield is contractually "locked in" for the term of the managed
“buy-sell” transaction.
And do keep our simple Program Summary in mind:
Clients needn't transfer their funds
Clients' funds are never touched (funds verification only)
Targeted 30% yield per tranche net/net to clients (maximum allowable by authorities)
Four tranches a week - with settlements on Friday
1 of 2
No SWIFT MT 760's or SWIFT MT 103's
No joint venture arrangements
No asset management contracts
No powers of attorney
No "joint signature" accounts
No surprises (clients sign the Master Buy-Sell Trading Contract)
=========
Note: The above information is provided for general reference only and is not to be considered legally binding.
For terms and conditions, refer to the Buy-Sell Contract.
2 of 2