EFTA Document EFTA01363153

If Yes Systematic Internalization i.e.. dealing on own account on an organized. frequent, systematic and substantial basis when executing client orders outside a regulated market or an MTF • If Yes Dealing on own account as a service for others i.e., trading to fulfil a client order or trading that relates to trading for a potential client, including intragroup transactions (where the "client" of the Bank is a subsidiary of the Bankl if Yes Hedging of market nsks i.e., transactions that serve to hedge all types of market risk INCLUDES, for example exemption applies): fil hedging of price risk. rate risk, interest rate risk, foreign exdvmge risk, market risk arising from commodities business (including electricity derivatives and CO. emission certificates), market-related risk which results from a change in a cotuMerparty's creditworthiness (e.g., specific position risk or potential changes in credit spreads) or which is attributable to market ligindrw (MR 2.1 No. 1 aliaRiskt, fin hedging on portfolio level or based on correlation assumptions, fie) anticipatory hedging of future risk, Dv) split hedges. fv) money market loans or other money market transactions for the purpose of short-term liquidity management. If Yes Strategic investments i.e., transactions sowing or supporting the acquisition or sale of a strategic !long-term) participation II Yes Trading without short-term trading intention i.e., transactions that are not entered into for the purpose of using existing or expected defeienees between buying and seeing prices or fluctuations in the market rates, prices, values or interest rates in the short term so as to generate a profit. are exempt from the proprietary trading prohibition INCLUDES, for example lie., exemption applies): the acquisition or holding of investment fund units if it relates to the establishment and management of alternative investment funds (AIR and the placement of units issued by them (seeding and co investment activities) ore generally not covered by the prohibition in Sec. :3 (2) sentence 2 no. 1 KWG. it the acquisition or holding of units is closely related to client-related asset management activities and does not aim at generating short-term profits ' Needs to be amended as soon as regulation C(2016)2398 final enters into force (COMMISSION DELEGATED REGULATION (EU) of 25.4.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment ferns and defined terms for the purposes of that Directive), a MiFID II related regulation. Needs to be amended as soon as MiFID II is implemented in German Banking Act (second FiMalloG) with respect to definition of "Financial Instrument". 1 See previous FN. To be expanded to OTF once MiFID II is implemented in German Banking Act (second FiMalloG). For internal use only WM i 739?9 02S8S9.070,317 Page 4 0111 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0053049 CONFIDENTIAL SONY GM_00199233 EFTA01363153