EFTA01379390.pdf

22 December 2017 EM Currency Handbook 2018: Still Fuel in the Tank FX options Regulatory: FX options transactions that are permitted: 1. One leg plain vanilla call / put. 2. Call spread (governed by OJK regulation on structured product). Avg. daily vol: Close to zero in recent years. Onshore CCS Regulatory: As per FX forward market Avg. ticket size: USD 2 - 5mn Tenor: 1 - 5 years Bid/ask spread: 20 - 100bp Avg. daily vol: Unable to estimate as highly irregular Ref. source: Reuters <IDUSCS=EXCO >, anuAoi> IRS Regulatory: For NR, IRS transactions must be supported by underlying economic activities. Tenor: 1 - 5 years Avg. daily vol: Unable to estimate as highly irregular Ref. source: Reuters <INJA01> Fixing page: Reuters page <JIBOR> Short- te; m money market Ins:0 uments (cash market, lope) Regulatory: Onshore banks can lend excess IDR to BI through an overnight window called the Deposit Facility (DF) at a fixed predetermined rate (currently 75 bps below the Ell 7 day reverse repo rate). 0/N repos are available to onshore banks at the Lending Facility, only for the purposes of BI acting as the lender of last resort (currently 75bps above B1 reverse repo rates). Avg. ticket size: IDR 50 - 250bn Avg. daily vol: IDR 5 - lOtn Ref. source: Reuters <INJAMM> Government bond Regulatory: Foreigners are allowed to access the onshore government bond market. BI has discontinued the issuance of SBIs and replaced them with SDBIs, which are not accessible by foreigners. Avg. ticket size: IDR 10 - 50bn Bid/ask spread: 15 - 50bp Avg. daily vol: IDR 8-10tn Ref. source: Bloomberg INDORB <GOVT> (Variable Rate BONDS), INDOGB<GOVT> (GOVT BONDS). Bloomberg page <DABA8>. Bloomberg INDOTB<GOVT> (SBI), Bloomberg SDBIU<GOVT> (SDBI), Bloomberg IDMA, Bloomberg INDOBL <GOVT> (SPN) Offshore IDR products Non-Deliverable Forward (NDF) Regulatory: ISDA documentation applies. No access to onshore players. Avg. ticket size: USD 5mn Bid/ask spread: IDR 5-15 for 1M, IDR10-40 for 3M-12M Avg. daily vol: USD 0.5.1.2bn Fixing reference: Weighted average spot rate onshore from Eam-9:45 Jakarta (2 business day before value date) Fixing page. Reuters page <JISDOR>, 11:00am Singapore time Page 26 Deutsche Bank Securities inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0076829 CONFIDENTIAL SDNY_GM_00223013 EFTA01379390