EFTA Document EFTA01422069

Subject: Follow-up From: Nadean Novogratz ‹ > Date: Thu, 26 Jul 2018 17:01:05 -0400 To: Paul Barrett Cc: Martin Zeman Stewart Oldfield Xavier Avila Davide-A Sferrazza Devin Anderson Hi Paul, Great to meet you over the phone today and discuss our derivatives offerings / market color. As mentioned, Southern Financial is fully onboarded to trade OTC equity derivatives here. We've reviewed our docs for listed options and just need 2 simple forms completed (attached). They are pretty straight forward but we're here to answer any questions on them that you have. Per Devin's comments on short-term upside, below are charts that compare SPY ATM vs 2% out of the money upside in the near-term experies. Vols are in the 8v range for the 2% OTM calls and as you can see for the next four weeks term structure is flat. We've continued to see the spot up / vol up correlation remain positive and if this theme continues, now is a good entry level into buying inexpensive vol. SPY ATM Calls: SPY 2% Upside Calls: Kind regards, Nadean EFTA01422069 Nadean Novogratz Deutsche Bank Securities Inc. Global Equity Derivative Sales 60 Wall Street, 4th Floor New York, NY 10005 Tel. Cell Email Please click on this link and read the disclaimer: https://ederivatives.db.com/static/disclaimer.html 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. Please refer to https://db.com/disclosures for additional EU corporate and regulatory disclosures. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01422070