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Internal Novation Combinations
DB AG (LEMG)6151
1) Intra Entity - Original Trade is DB AG (LEMG) v DB AG (Flow). Action DB AG (LEMG) assign to BOA
DB AG (Flow)6151
DB AG (LEMG)6151SO
DB AG (Flow)6151RP
BOASI
Fee
1.0 Internal Trade – No paper nor DTCC message
1.1 External Trade needs legal confirm
Tri Party Novation
DB AG (LEMG) SODB AG (Flow) RPBOA (SI)
1.0
1.1
DB AG (QVT)7714
2) Inter Entity - Original Trade is DB AG (QVT) v DB AG (Flow). Action DB AG (QVT) assign to BOA
DB AG (Flow)6151
DB AG (QVT)7714SO
DB AG (Flow)6151RP
BOASI
Fee
2.0
2.1
2.0 Internal Trade – No paper nor DTCC message
2.1 External Trade needs legal confirm
Tri Party Novation
DB AG (QVT) SODB AG (Flow) RPBOA (SI)
Notification: YesDTCC Assignment Confirmable: Yes
Notification: YesDTCC Assignment Confirmable: Yes
2
Internal Novation Combinations ctd…
DB AG (LEMG)6151
BOADB AG (LEMG)
6151SO
BOARP
DB AG (Flow)6151
SI
Fee
3) Intra Entity : Original Trade is DB AG (LEMG) v BOA. Action DB AG (LEMG) assign to DB AG (Flow)
3.0 External Trade: Paper or DTCC confirm
3.1 Do not need to legally confirm but need to keep Warehouse Gold
No novation due to Step In Party being same legal entity to Step Out (and no change in settlement instructions).
Instead internal rebook, no request for consent but use TRI Rename functionality.
3.0
3.1
DB AG (QVT)7714
BOADB AG (QVT)
7714SO
BOARP
DB AG (Flow)6151
SI
Fee
4) Inter Entity Original Trade is DB AG (QVT) v BOA. Action DB AG (QVT) assign to DB AG (Flow)
4.0 External Trade: Paper or DTCC confirm
4.1 Need to confirm and keep Warehouse Gold. Request for Consent and Tri Party Novation.
DB AG (QVT) SOBOA RPDB AG (Flow) SI
4.0
4.1
Novation Protocol: NoNotification: No
DTCC Assignment Confirmable: No TRI Rename Functionality: Yes
Notification: YesDTCC Assignment Confirmable: Yes
3
Internal Novation Combinations ctd…
BOA
5) Intra Entity - Original Trade is BOA v DB AG (LEMG). Action BOA assign to DB AG (Flow)
DB AG (LEMG)6151
BOASO
DB AG (LEMG)6151RP
DB AG (Flow)6151
SI
Fee
5.0 External Trade: Paper or DTCC confirm
5. 1 Need to confirm and keep Warehouse Gold
BOA SODB AG (LEMG) RPDB AG (Flow) SI
5.0
5.1
BOA
6) Inter Entity - Original Trade is BOA v DB AG (QVT). Action BOA assign to DB AG (Flow)
DB AG (QVT)7714
BOASO
DB AG (QVT)7714RP
DB AG (Flow)6151
SI
Fee
6.0 External Trade: Paper or DTCC confirm
6. 1 Need to and keep Warehouse GoldTri Party Novation.
BOA SODB AG (QVT) RPDB AG (Flow) SI
6.0
6.1
Novation Protocol: NoNotification: No
DTCC Termination Confirmable: Yes
Notification: YesDTCC Assignment Confirmable: Yes
4
Internal Novation Combinations ctd…
7.0
MS – Client Trade gets terminated in DTCC
7.2 Need to confirm and keep Warehouse Gold
MS PB SOMS Flow SIGS RP
MS(PB)
Client
7) Internal PB Step our Model - Original Trade is GS Executing Broker (EB) MS Prime Broker (PB) v Client. Action MS (PB) Client assign to MS Flow (assume MS want to remain in the trade and have the same Participant ID)
GS(EB)
7.0
7.1
MS(PB)SO
Client
GS(RP)
7.2
MS (Flow)SI
Fee
MS(PB)
Client
8) Prime Brokerage Step Out Party Model - Original Trade is GS Executing Broker (EB) MS Prime Broker (PB) v Client. Action Client assign to DB AG
GS(EB)
8.0
8.1
MS(PB)SO
Client
GS(EB)RP
8.2
DBSI
Fee
8.0 and 8.1
2 External Trades: Paper or DTCC confirm
8.2 Need to legally confirm and keep Warehouse Gold
MS (PB) SODB SIGS (EB) RP
And MS (PB) Terminate their Client leg.
Give Up
Give Up
Notification: YesDTCC Assignment Confirmable: Yes
Novation Protocol: YesDTCC Assignment Confirmable: Yes
5
Internal Novation Combinations ctd…
7.0 GS – Client Trade gets terminated in DTCC
7.2 GS PB assigns the position to MS PB and creates an internal trade – MS PB vs MS flow
GS PB SOMS PB SIMS Flow RP
GS(PB)
Client
7a) Internal PB Step out Model - Original Trade is MS Executing Broker (EB) GS Prime Broker (PB) v Client. Action GS (PB) Client assign to MS PB (SI) client to face MS Flow (RP)
MS (Flow)(EB)
7.0a
7.1a
GS(PB)SO
MS (Flow)(RP)
7.2
MS (PB)SI
Fee
Give Up
Novation Protocol: NoNotification: No
DTCC Assignment Confirmable: No TRI Rename Functionality: Yes
6
Internal Novation Combinations ctd…
9.0DB – Client Trade gets terminated in DTCC
9.1 Need to confirm and keep Warehouse Gold
9.2 External Trade need legal confirm
Tri Party Novation
DB (PB) SODB (Flow) RPBOA SI
DB(PB)
Client
9) DB Prime Brokerage Step Out Party Model – Original Trade is DB Flow (EB) DB Prime Broker (PB) v Client. Action Client assign to BOA
DB Flow(EB)
9.0
9.1
DB(PB)SO
Client
DB Flow(RP)
9.2
BOASI
Fee
Give Up
Notification: YesDTCC Assignment Confirmable: Yes
Internal Deal
7
Internal Novation Combinations ctd…
10.0 External Trade: Paper or DTCC confirm
10.1 and 10.2 Client SOGS Capital Markets RP/SOGS International SIDB AG SI/RP
GS Capital Mkts ClientClient
SO
GS Capital Mkts
RP/SO
GS InternationalSI
Fee
10) Original Trade is GS International v Client. Action Client assign to DB AG
DB AGSI/RP
10.0
10.210.1
Novation Protocol: YesDTCC Assignment Confirmable: Yes
8
Internal Novation Combinations
LEH (GPS) 6171
11) Intra Entity - Original Trade is LEH (GPS) v LEH (Flow). Action LEH (GPS) Partially assigns to BOA
LEH (Flow)6171
LEH (GPS)6171SO
LEH (Flow)6171RP
BOASI
Fee
11.0 Internal Trade – No paper nor DTCC message
11.1 Need to confirm and keep Warehouse Gold
Outside Partial Novation
RP – LEH (FLOW)SI – BOASO – LEH (GPS)
11.0 11.1
Notification: YesDTCC Assignment Confirmable: Yes
Partial Assignment
9
Internal Novation Combinations ctd…
LEH (GPS)6171
BOALEH (GPS)
6171SO
BOARP
LEH (Flow)6171
SI
Fee
12) Intra Entity : Original Trade is LEH (GPS) v BOA. Action LEH (GPS) Partially assigns to LEH (Flow)
12.0 External Trade: Paper or DTCC confirm
12.1 Need to confirm and keep Warehouse Gold
RP: BOASI: LEH (Flow)SO: LEH (GPS)
12.012.1
Notification: YesDTCC Assignment Confirmable: Yes
Partial Assignment