EFTA Document EFTA01411838

Subject: Re: does that work? should we add anything or take anything out? [I] From: Daniel Sabba < Date: Tue, 11 Nov 2014 10:23:10 -0500 To: Stewart Oldfield Cc: Paul Morris Classification: For internal use only funds would likely get a lower commission than 3 cents, depending on activity. but JE has historically paid 6cents on his equity transactions. having said that the bullet point refers to the financing charge, not the commission. would you change the language to represent that? From: To: Stewart Oldfield/ Daniel Sabba/ Date: 11/11/2014 10:16 AM , Paul Morris/ Subject: Re: does that work? should we add anything or take anything out? [ I] Classification: For internal use only Would we charge a hedge fund 3 cents execution? That seems a little rich Stewart Oldfield, CFA, CAIA Deutsche Bank Trust Company Americas Deutsche Asset & Wealth Management 345 Park Avenue New York, NY 10154 Tel. Mobile Email Securities offered through Deutsche Bank Securities Inc. Original Message From: Daniel Sabba Sent: 11/11/2014 09:57 AM EST To: Paul Morris; Stewart Oldfield Subject: does that work? should we add anything or take anything out? [I] Classification: For internal use only EFTA01411838 Per our agreement, we liaised with the desk head in our institutional sales and trading platform for equity derivatives and confirmed the points we discussed yesterday: - balance sheet charges are the primary driver of the price difference you observed between our quote and the one you received from competitors primarily funded in USD - lmL + 75bps for ly TRS is the financing charge DB would charge a hedge fund or other institutional client today - our trading heads were not surprised competitors primarily funded in USD were offering a financing spread 20 to 30bps lower than DB's - the trading desk can sometimes offer improvements on names they are axed - i.e. when the desk has counterparties interested in taking the other side of the TRS. AAPL is not one of these names We can still offer the following terms: Notional: 1,000,000 shares of AAPL Term: 1 year Southern Financial receives: Total return in AAPL Southern Financial pays: lmL + 75bps Commissions: 3 cents per share to enter and exit the trade. There is no additional break up fee. Execution: We would suggest best efforts VWAP for execution (Embedded image moved to file: pic15814.gif) Daniel Sabba Director I Key Client Partners Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue, 26th Floor New York, NY 10154 Tel. Email (Embedded image moved to file: pic32718.gif) EFTA01411839