From: Tazia Smith <I

From: Tazia Smith <I To: [email protected] Cc: Paul Morris < Subject: Re: USDCAD RKI Call Spread Valuation History - CHART [1] Date: Fri, 07 Mar 2014 19:10:17 +0000 'Wine-Images: unnamed; unnamed(1); unnamed(2); unnamed(3); unnamed(4); unnamed(5); unnamed(6); unnamed(7); unnamed(8); unnamed(9); unnamed(10); unnamed(11); unnamed(12); unnamed(13); unnamed(14); unnamed(15) Classification: For internal use only Jeffrey - replying to your email: "so we had two ooportunites since inception to have 50k profit. and waited until almost none.? please explain the low bids on todays mortage bond." with regard to CAD: view change. our original call was for 1.15 on usdcad, view stimulated by cad forwards starting to price in rate cuts and extended by weaker Canadian economy (esp relative to US), energy independence in the US. Russian military action in Ukraine this week and sustained elevated energy prices catalyzed the change in view and our fear was the momentum of outflows/unwinding of short cad positions would continue -- entering in more downside than upside risk in this position, wanted to get you out. (details on original, and the change, in our investment thesis/outlook below. on the RMBS: db's bid was 62.5, was just letting you know. we are open architecture, don't need to trade with db. I'm working 74 or better level. i spoke with JP, understand they have a potential buyer there, and we are working to cross. be back. — Forwarded by 'raze Smiaon 03/07/2014 01:15 PM --- From Nav Gupta To: Tazia Smit Date: 011)5,2014 08:02 AM Subject: usdcad update for JE (I) Unit Sahni Classification: For internal use only three points 1. commodity px are much higher - bullish cad 2. CAD 2y swap rate higher (not lower as i had expected) vs US rates compared to 2mths ago - bullish cad EFTA01205445 Last Price "q• CDSW2 Curncy 1.3460 2 USSW2 Cumcy 0.4705 rirre< I 0.3730 01 CDSW2 Curacy - USSW2 Curacy 0.8755 Sep Oct Nov Dec Jan Feb Mar 2013 I 2014 C:SW2 nc, (CA: SWAP 2 YR) Rally OSSEP2013-05NAFt2014 Copylight! 2014 Bloomberg Finance OS-Nat-2014 12:56:14 SPREAD SUMMARY Last 0.8755 Mean 0.932 Off Avg -0.036.5 Median 0.9566 StDev 0.0796 StDev from mean -0.7098 Percentile 28.4615 High 09/18/13 1.0675 Low 01/23/14 0.754 1.05 1.00 -4 0.95 • canada still has v vulnerable housing sector and several high profile clients have been exiting canadian risk (pimco ed devlin in ft last week) but nevertheless given 1 and 2 above im less bearish cad vs usd than 2mths ago when JE entered the trade. so given 1 and 2 im surprised usdcad hasnt moved lower - i dont have a view on usdcad here and therefore dont like the trade anymore Nay Nay Gupta Managing Director Deutsche Bank AG. Filiale London Deutsche Asset 8 Wealth Management rs Hall). EC2N 1 EN London. United Kingdom My proposed ideas are being delivered to you by the DeAWM Key Client Partners CKCPs) London desk for discussion purposes only. and do not create any legally binding obligation on the part of Deutsche Bank AG and! or its affiliates CDB"). These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. AI trades on proposed ideas shall be subject to the relevant Ftemal approvals prior to execution. PAnitnAd-v- Peefernst — Forwarded by Tazia Smian 03/07/2014 01:18 PM --- From: Jeffrey Epstein leevacationt§gmailcom> To: Tazia Smith EFTA01205446 Date 01/17/2014 11:15 AM Subject: Re: Trade Idea: Long 3-Month USDCAD KI Call Spread -1.10 wdh a 1.13 sad call knockrw-ri only if USDCAD trades to 1.1711) i like it .. size ? On Fri, Jan 17, 2014 at 11:48 AM, Tazia Smith < wrote: Classification: For internal use only Jeffrey - Our US FX traders agree/like Nav's call here. The 3-month 1.10/1.13 USDCAD, 1.17 knock-in call spread (where that 1.13 short call only exists if USDCAD goes to 1.17 during the life of the trade) described below is currently offered —1.1% (Source: DB FX Sales, 1/17/14). Please see the investment thesis below and let us know your thoughts. Best, Tazia Indicative levels only. Subject to market movement. Source: DB Key Client Partners London, as of 1/17/14. -- Forwarded by Tana Smith,' on 01(1712014 10:35 AP,I --- From Nay Cup To Date 01/17/2014 07:35AM Subject: I Ike buying USDCAD calks to position for further weakness in CAD. Spot FX is currently 1.095. II) Classification: For internal use only I like USDCAD call options to position for further weakness in CAD. Spot FX is currently 1.095. Over the course of the past week the interest rate curve has started pricing in a small amount of rate cuts - this development is significant and clearly a beginning of a pain trade. I believe it can go further. Lower CAD rates from here will drive USD CAD higher. EFTA01205447 The limited downside play I like best in USDCAD is buying a 3month expiry 1.10 / 1.13 call spread on USDCAD but where the short 1.13 call position only exists (knocks-in) if USD trades at 1.17 trades in the market before the option expires, otherwise the option payoff is the same as a 1.10 call option. It costs 1% of USD notional. I believe the buyer is well compensated for the knock-in component. If USDCAD rises to 1.15 the option payout is 5 big figures. If 1.17 trades before expiry the payout is limited to 3 big figures. Max loss is premium paid. We can price other structures to fit the risk tolerance (higher or lower) of clients - let us know Key Macro Highlights • The economy clearly lags the US. Dec13 unemployment unexpectedly rose last Friday to 7.2% • South of the border demand for USDCAD is declining as the US heads towards energy independence • Low inflation and weak exports are likely to preclude any rate hikes in 2014 EFTA01205448 US0CA0 Coney CUSD-Csi0 X-RATE) Day 1.81MI2000-173AN2014 Cogyrigkra 2014 81coentxtrg Flames . 15:42:56 u• Last Price 1.0949 - T High on 03/09/09 1.3012 - -0- Average 1.0367 1. Low on 07/21/11 0.9433 2009 2010 I 2011 2012 2013 20 Best, Nav Nav Gupta Managing Director Deutsche Bank AG. Filiale London Deutsche Asset 8. Wealth Management 105(108 Old Broad St (Pinners Hall). EC2N I EN London. United Kingdom Email 1.2000 1.1700 poi) 1.1300 1.1000 My proposed ideas are being delivered to you by the DeAWM Key Client Partners ("KCP') London desk for discussion purposes only. and do not create any legally binding obligation on the part of Deutsche Bank AG and for its affiliates cowl. These ideas are for the consideration of the intended recipients of this mail only. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by KFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. Al trades on proposed ideas shall be subject to the relevant internal approvals prior to execution. Pnido-)4u %treat This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. Any unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to http://www.db.com/en/content/eu disclosures.htm for additional EU corporate and regulatory disclosures. EFTA01205449 Tazia Smith Director I Key Client Partners - US Deutsche Bank Securrties Inc Deutsche Asset & Wealth Management 345 Park Avenue. 26th Floor New York. NY 10154 Email Poscriawitr Peeftmn• This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. o Tazia Smith Director I Key Client Partners - US Deutsche Sank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue. 26th Floor New York. NY 10154 Email PARiderz,fr Pedro-rot From: Jeffrey Epstein <[email protected]> To: Tazia Smith? Date: 03107/2014 01:12 PM Subject: Re: USOCAD RKI Call Spread Valuation History - CHART [II so we had two ooportunites since inception to have 50k profit. and waited until almost none.? please explain the low bids on todays mortage bond On Fri, Mar 7, 2014 at 1:33 PM, Tazia Smith <I = wrote: EFTA01205450 Classification: For internal use only Jeffrey - Chart of your USDCAD Reverse Knock In (RKI) Call Spread Valuation history below. Trade dates 1/17 and 3/5 (trade details below). USDCAD RKI Call Spread Valuation History —a—Net Value 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 Or Or Or Or "5,, Oro /JOB '5,,, % % a. .? a # P .... ....?O 4, Oro Oro Or ' .1.9 O1 0 J J 01 O1 O1 0 4, I, 4., % '5,, /Jam a. % . S O ?. 0 % Ors 4, it 4, * * 02 01 % ••• ,) , ...? * 0 * O1 01 O$ -54. "50„ .10,, a. ?. ....? "J s5 Oro O 4 O * % Trade dates 1/17 and 3/5, represent actual bid/ask levels. All other valuations are mid-levels valuation directly from DB Valuation Statements. EFTA01205451 Dates Net Value 03/05/2014 115,000 03/04/2014 138,600 03/03/2014 124,450 02/28/2014 121,260 02/27/2014 156,410 02/26/2014 137,970 02/25/2014 126,090 02/24/2014 122,520 02/21/2014 145,990 02/20/2014 121,860 02/18/2014 83,620 02/14/2014 92,170 02/13/2014 97,920 02/11/2014 117,670 02/1W2014 119,700 02/06/2014 124,600 02/05/2014 136,470 01/31/2014 148,360 01/28/2014 151,990 01/27/2014 119,700 01/23/2014 138,460 01/21/2014 97,350 01/17/2014 109,995 USDCAD Spot Price History 1/17/14 through 3/15/14 — Forwarded by Vahe Stepanianie 03107/201. lz.: / PM From: Who Stapanian/db/dbcom To: leffrey epstein" leavar-,tinnagmethom>. Cc: a. "Paul Morris" nfinit Sahni• Date: 03/051201a 10:18 AM Subject: Re: Unwind your CAD (C) EFTA01205452 Classification: Confidential Good Morning Jeffrey, Details of your CAD unwind are below. We will be following up with the chart you've requested. Thank you, Vahe BuySell Client Sells Currencyl USD CP Call Notionall -10,000,000 Currency2 CAD Notional2 11,000,000 Strike 1.1 ZoneCut NY: 10:00 hours (Local time in New York) ExpiryDate Thu 17 April 2014 SettlementDate Mon 21 April 2014 FixingReference SPOT Premium 135,000 PremiumTerms USD PremiumDate Thu 06 March 2014 BuySell Client Buys Currencyl USD CP Call Notionall 10,000,000 Currency2 CAD Notional2 -11,300,000 Strike 1.13 ZoneCut NY: 10:00 hours (Local time in New York) ExpiryDate Thu 17 April 2014 SettlementDate Mon 21 April 2014 Barrier 1.17 FixingReference SPOT Premium 20,000 PremiumTerms USD PremiumDate Thu 06 March 2014 EFTA01205453 — Forwarded by laze Smia on 03107/2014 12:18 PM -- From: Tazia Smithtdb/dbcom To: J yeevacat g , ic g •n mail.com>©DEUBAINT. Cc: Paul Morris. Vine Sahni/ Nav Gupta—Vahe Stepanian Date: 01/17/2014 12:05 PM Subject: Trade Report 1/17/14 [I) Classification: For internal use only Jeffrey - Today you bought a USDCAD 1.10/1.13, 1.17 knock-in call spread at 1.1% on $10mm USD notional ($109,995 premium paid). Complete details below. Speak with you soon, Tazia TradeType EUR CP Call BuySell Client Buys Currencyl USD Notionall 10,000,000 Currency2 CAD Notional2 -11,000,000 Strike 1.1 ZoneCut NY: 10:00 hours (Local time in New York) ExpiryDate Thu 17 April 2014 SettlementDate Mon 21 April 2014 FixingReference SPOT Premium 147,945 PremiumTerms USD PremiumDate Tue 21 January 2014 DatabaselD 737154817 TradeType RKI BuySell Client Sells Currencyl USD CP Call Notionall -10,000,000 Currency2 CAD EFTA01205454 Notional2 11,300,000 Strike 1.13 ZoneCut NY: 10:00 hours (Local time in New York) ExpiryDate Thu 17 April 2014 SettlementDate Mon 21 April 2014 Barrier 1.17 FixingReference SPOT Premium 37,950 PremiumTerms USD PremiumDate Tue 21 January 2014 Tazia Smith Director I Key Client Partners - US Deutsche Sank Securities Inc Deutsche Asset 8. Wealth Management 345 Park Avenue. 26th Floor Email agS40-1,O47Peeformi. From: J <jeevacationgadmail.ccm> To: Tazia Smithl Date: 01/17/2014 11:48AM Subject: Re: Trade Idea: Long 3-Month USDCAD KI Call Spread - 1.10 with a 1.13 sold call knocking-in only if USDCAD trades to 1.17 (II Ok Sent from my iPad On Jan 17, 2014, at 12:32 PM, Tazia Smith < Classification: For internal use only 10mm notional? > wrote: EFTA01205455 <mime-attachment.gif> Tazia Smith Director ] Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset 8. Wealth Nlanagement 345 Park Avenue. 26th Floor Email <mime-attachment.gif? From: Jeffrey Epstell iggyagagjig@gmajLcom> To: Tazia Smith Date: 01/17/2014 11:15AM Subject: Re: Trade Idea: Long 3-Month USDCAD KI Call Spread - 1.10 with a 1.13 sold call knocking-in only if USDCAD trades to 1.17 III i like it .. size ? On Fri, Jan 17, 2014 at 11:48 AM, Tazia Smith < > wrote: Classification: For internal use only Jeffrey - Our US FX traders agree/like Nav's call here. The 3-month 1.10/1.13 USDCAD, 1.17 knock-in call spread (where that 1.13 short call only exists if USDCAD goes to 1.17 during the life of the trade) described below is currently offered —1.1% (Source: DB FX Sales, 1/17/14). Please see the investment thesis below and let us know your thoughts. Best, Tazia Indicative levels only. Subject to market movement. Source: DB Key Client Partners London, as of 1/17/14. — Forwarded by Tazia Smith/ on 01/17/2014 10:35 AAI --- From: To: Date: 01/17/2014 07:35AM Subject: I like buying USDCAD calk; to position for further weakness in CAD. Spot FX is currently 1.095. (I) Classification: For internal use only EFTA01205456 I like USDCAD call options to position for further weakness in CAD. Spot FX is currently 1.095. Over the course of the past week the interest rate curve has started pricing in a small amount of rate cuts - this development is significant and clearly a beginning of a pain trade. I believe it can go further. Lower CAD rates from here will drive USD CAD higher. <mime-attachmentgif> The limited downside play I like best in USDCAD is buying a 3month expiry 1.10 / 1.13 call spread on USDCAD but where the short 1.13 call position only exists (knocks-in) if USD trades at 1.17 trades in the market before the option expires, otherwise the option payoff is the same as a 1.10 call option. It costs 1% of USD notional. I believe the buyer is well compensated for the knock-in component. If USDCAD rises to 1.15 the option payout is 5 big figures. If 1.17 trades before expiry the payout is limited to 3 big figures. Max loss is premium paid. We can price other structures to fit the risk tolerance (higher or lower) of clients - let us know Key Macro Highlights • The economy clearly lags the US. Dec13 unemployment unexpectedly rose last Friday to 7.2% • South of the border demand for USDCAD is declining as the US heads towards energy independence • Low inflation and weak exports are likely to preclude any rate hikes in 2014 <mime-attachment.gif> Best, Nav <mime-attachment.gif> Nav Gupta Managing Director Deutsche Bank AG. Filiale London Deutsche Asset 8. Wealth Management 105/108 Old Broad St Pinners Hall). EC2N lEN London. United Kingdom My proposed ideas are being delivered to you by the DeAWM Key Client Partners CKCPs) London desk for discussion purposes only. and do not create any legally binding obligation on the part of Deutsche Bank AG and / or its affiliates CDB"). These ideas are for the consideration of the intended recipients of this mail ally. The KCP London desk does not provide investment advice. All intended recipients are Professional investors (as defined by MiFID). who understand the strategy. characteristics and risks associated with any ideas proposed herein and will be able to evaluate it independently. AI trades on proposed ideas shall be subject to the relevant idemal approvals prior to execution. <mime-attachment.gif> This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error) please notify the sender immediately and delete this e-mail. Any EFTA01205457 unauthorized copying, disclosure or distribution of the material in this e-mail is strictly forbidden. Please refer to litip://www.db.cornien/content/eudisclosures.hiprt for additional EU corporate and regulatory disclosures. <mime-attachment.gif> Tazia Smith Director I Key Client Partners - US Deutsche Sank Securities Inc Deutsche Asset 8. Wealth Management 345 Park Avenue, 26th Floor New York. NY 10154 <mime-attachment.gif> This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *************** *** *********** *********** >2** ******** *** ***** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01205458 This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jggyaration®guailsam, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01205459