EFTA01454202.pdf

Peeprovt, --- Forwarded by Tazia Smith'dbidbcom on 051122014 04.31 PM --- Rum' Tazia Smith. jeevacation@gmailoorn. Cc. Nav Guptaa Paul Morris. Vahe Slepania Da lc 051122014 09:40 AM &Act" Copper - positive moment= from China cap odds reform Good Morning Jeffrey - Your copper option is $300,000 bid (-$31,250 p/I), vs. ref of 6883. This is up from $239,583 as of Friday. Research and desk commentary is below. Bid as of 9:20am 5/12, 3m spot ref 6883, $240/mt. This compares to mid of $252/mt with 0 vol, $240 represents 0.6% vol (0.75% standard, tightened it). Vega on the option Vega = $20.27/mt. Source: DB Commodities Trading, 5/12/14 As you know, China announced its New National Nine Rules" (in contrast to the earlier "National Nine Rules' issued in 2004), which outline meaningful changes to increase open-ness in Capital Markets out of China on 5/9. DB research summary below, bottomline takeaway: "Under such endeavor, China capital markets will be much more diverse, structured and transparent in the future, and will a) mobilize massive private savings; b) encourage inward portfolio flows: and c) lift market sentiment and valuation." From Matt's team: "Copper is a popular choice for use as collateral in financing trades. Now China is proposing that local govemments would be able to issue bonds rather than rely on, among other things, using copper as collateral for financing trades. Indeed it is expected that use of SPVs will be come increasingly difficult. This should be bearish for copper after the regulation is passed. Meanwhile, we think that before the regulation is passed, people are trying to secure as much copper-backed financing as they can, which has resulted in a scramble for copper, and a spike in price. I would further qualify and say that the news announcement has not resulted in a scramble for physical copper yet, but an expectation for the scramble, which itself is sufficient to spike up the price.' 5/12/2014 Live Delalptl00 Wade Date Expiration Notional Cost Bask MTNI* MTNIs Ell. USOWYTript•Orte-Touch 101call' 11/21/2013 11/20/2014 1,000000 L50 r $ - $ (4,865) S (4.265) Det14 Copper 7000Calt" 4/7/2014 12/1/ 2014 1,250 metric tons $331,250 $ 300.000 $ (315250) $131,250 $ 295.13.5 S (36,115) • Not a bid/offer. MM Mark-to-Market as reported 00 client's DB Valuation Statement. " Bid as of 9:20am 5/12, ref 6883, $240/mt ($2520 vol mid, $240 represents 0.6% vet, veg on the option Vega * $20.27/mt). Source: DBComma:Biles Trading, 5112/14 Forwarded by Tabs Smith(db/dbcom on 05(12/2014 0922 AM --- From- Amy Tan To Date: 05/1212014 06:08 AM Subject. DB China unveils agenda for comprehensive capital market reform CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0112180 CONFIDENTIAL SDNY_GM_00258364 EFTA01454202