Deutsche Bank e-commerce

A segmentation approach to FX
One-off high value
High Transactions
Tailored Value Drivers: Best execution is the priority,
solutions to remains in the relationship channel, selecting
tailored Active Trading one bank counterparty with sufficient liquidity
requirements Treasury to manage the transaction with minimal market
Value Drivers: Fast impact. Algorithmic Trading can play a role.
execution is the
priority. Online
services/
functionality in
Core day to day treasury
Autobahn FX transaction management Value
Drivers: Best price, speed of
Ticket execution, netting and allocation to
Notional relationship banks. Straight
Value through processing to reduce
costs. Autobahn Treasury

“under the radar” Transactions

Value Drivers: Low cost, integrated
processing, transparent and consistent
pricing. Allocation across multiple bank
counterparties adds costs, reduces
netting benefits and has low value to the
banking partners as well. Best serviced
via a single bank relationship – FX4Cash

Low

High Number of Tickets Low

Deutsche Bank: The World's Best FX Bank

Euromoney Survey 2010

DB has 26.4% market share in

18.06% electronic FX trading
Market Share

11.30%
11.08%

7.69%
6.50%
6.35%

DB UBS Barclays Citi RBS JP Morgan

The challenges keep on coming

• Liquidity management
• Centralisation
• Volatility in markers and in forecasts
• Counterparty risk / credit risk
• Optimisation of cash – pooling and effectively managing cash

 Globalisation - operating a 24 hour treasury centre, operational risk

 Benchmarking a treasury’s performance
 Reducing per ticket cost of execution
 Maximising netting across the group of companies/exposures
 Accounting concerns - IAS39, GAAP, FASB
 Technology – opening more doors
 European Payments Directive initiatives
 Legal issues as more currencies join the EURO
What is FX4Cash?

 A cross-currency payment solution

– Enable you to make and receive payments in 125 currencies
without having to maintain foreign currency accounts

 A streamlined process
– Allow you to handle small value, repetitive cross-border payments
efficiently and cost-effectively

 A strong value proposition

– Combine Deutsche Bank’s leading Foreign Exchange (FX) offerings
and payment capabilities

 Receivables
– Convert incoming FX payments into the base currency of your choice
– Credit to your account at DB or with another bank

 Active Client Funding

– Use FX4Cash, without having accounts in DB
– Client sends funding directly from their acc in another bank to DB LDN
Show Me How to…
1. Format and Identify my SWIFT Message

How to Specify Payment Amt and Currency How to Identify FX4Cash Payments
 Identify the foreign currency and amt  Send payments directly to FX4Cash
– Commonly used if you received a Daily Rate SWIFT address: DEUTGB2LF4C
Sheet and calculated the conversion amount
– Currency and amount to be supplied in Field 32A
- OR -
– Example: :32A:080402GBP1300
– Client is debited for GBP equivalent amount from
the base currency account  Send payment to the same BIC address
– Standard SWIFT Method you use for EUR, USD or GBP payments
(e.g. BKTRUS33 for USD) and include
the following codeword:
 Identify the base currency and amt
– When you only know the base amt and currency:  Field 72: /DBF4C/
– :32A: 080402GBP0,
– :33B: EUR1000,

– Indicates the foreign currency amount to be paid

to beneficiary is GBP equivalent of EUR1000.
Show Me How to…
2. Book LIVE FX Rates for Outgoing Payments
FX4Cash supports the following 125 disbursement currencies
ALL Albanian Lek GEL Georgian Lari NOK Norwegian Krone
DZD Algerian Dinar GHS Ghanaian Cedi OMR Omani Rial
AOA Angola Kwanza GTQ Guatemalan Quetzal PKR Pakistan Rupee
ARS Argentine Peso GNF Guinean Franc PGK Papua New Guinea Kina
AMD Armenian Dram GYD Guyanese Dollar PYG Paraguay Guarani
AUD Australian Dollar HTG Haitian Gourde PEN Peruvian Nuevo Sol
BSD Bahamian Dollar HNL Honduran Lempira PHP Philippine Peso
BHD Bahrain Dinar HKD Hong Kong Dollar PLN Polish Zloty
BDT Bangladesh Taka HUF Hungarian Forint QAR Qatari Rial
BBD Barbadian Dollar ISK Icelandic Krona RON Romanian Leu
BYR Belarusian Ruble INR Indian Rupee RUB Russia Rouble
BZD Belize Dollar IDR Indonesian Rupiah RWF Rwandan Franc
BOB Bolivian Boliviano IQD Iraqi Dinar STD Sao Tome & Principe Dobra
BAM Bosnia Herzegovina Marka ILS Israeli Shekel SAR Saudi Arabian Riyal
BWP Botswana Pula JMD Jamaican Dollar RSD Serbian Dinar
BRL Brazilian Real JPY Japanese Yen SLL Sierra Leone Leone
GBP British Pound KZT Kazakhstan Tenge SGD Singapore Dollar
BGN Bulgarian Lev KES Kenyan Shilling SBD Solomon Islands Dollar
BIF Burundian Franc KRW Korean Won ZAR South African Rand
KHR Cambodian Riel KWD Kuwaiti Dinar
LKR Sri Lanka Rupee
CAD Canadian Dollar LVL Latvian Lats
SRD Surinamese Dollar
CVE Cape Verdean Escudo LBP Lebanese Pound
SZL Swaziland Lilangeni
XOF Central African States CFA Franc BCEAO LSL Lesotho Loti
SEK Swedish Krona
XAF Central African States CFA Franc BEAC LRD Liberian Dollar
CHF Swiss Franc
CLP Chilean Peso LTL Lithuanian Litas
XPF Tahitian Franc
CNY Chinese Yuan MKD Macedonian Dinar
TWD Taiwanese Dollar
COP Columbian Peso MGA Malagasy Ariary
TZS Tanzanian Shilling
CDF Congolese Franc MWK Malawi Kwacha
THB Thai Bhat
CRC Costa Rican Colon MYR Malaysia Ringgit
TOP Tonga Pa’anga
HRK Croatian Kuna MRO Mauritanian Ouguiya
TTD Trinidad & Tobago Dollar
CZK Czech Republic Koruna MUR Mauritius Rupee
TND Tunisian Dinar
DKK Danish Krone MXN Mexican Peso
TRY Turkish New Lira
DJF Djiboutian Franc MNT Mongolia Tugrik
UGX Ugandan Shilling
DOP Dominican Peso MAD Moroccan Dirham
AED United Arab Emirates Dirham
XCD Eastern Caribbean Dollar MZN Mozambique Metical
NAD Namibian Dollar USD United States Dollar
EGP Egyptian Pound
ERN Eritrean Nakfa NPR Nepalese Rupee UYU Uruguayan New Peso
EEK Estonian Kroon ANG Netherlands Antillean Guilder VUV Vanuatu Vatu
ETB Ethiopia Birr NZD New Zealand Dollar VEF Venezuelan Bolivar Fuerte
EUR Euro NIO Nicaragua Cordoba VND Vietnamese Dong
FJD Fijian Dollar NGN Nigerian Naira WST West Samoa Tala
GMD Gambian Dalasi ZMK Zambia Kwacha
 How Does FX4Cash Payment Work?

Live Rates
AutoConvert or Fixed Rates
Manual Trade
Customer
Base Currency A 2
1 Execute FX
Trade(s)
Client sends FX4Cash Beneficiary
Payment Instruction
(via db-di, SWIFT or Credit Currency B
H2H) DB releases
instructions
for payment DB pays bene
processing via Wire, ACH
DB debits client’s base 5 or Draft in
currency account 3 4 local currency

Payment Systems
 How Does Active Client Funding Work?

Live Rates Fixed Rates

Customer
Base Currency A 2
1
Execute FX
Trade(s)
Client sends FX4Cash Beneficiary
Payment Instruction
(via db-di, SWIFT or H2H) Credit Currency B
DB releases
instructions
for payment DB pays bene
Customer sends a processing via Wire, ACH
cover payment for its 5 or Draft in
today´s trades. 4 local currency
The cover payment
can be sent from any 3 Payment Systems
client´s account,
outside DB
 What You Need vs. What We Offer
Customer Needs dbFX4Cash Solutions

 Pay beneficiaries almost anywhere in the  Cover 125 disbursement currencies

world
 Keep a single base currency account to fund
 Consolidate foreign currency accounts payments in other currencies

 Send daily rate sheet at your specified time in

 Receive fixed rates for your FX payments the way you want to receive it

 Access online streaming rates and seamlessly

 Know your expected FX costs before you link FX trades to payments
initiate payments

 Offer pre-deal online and flexible options for you

 Book one large FX trade to support multiple to remit payments
payments
Customer Benefits

 Partnering with a global provider that offers all-in-one FX and payment services

 Improving efficiency via a streamlined process of FX dealing, settlement and payment

 Saving costs by consolidating accounts, eliminating idle balances, and aggregating FX trades

 Mitigating risks of operating local currency accounts and exposure to currency volatility

 A single window to track all your FX payments with full audit trail

 One point of contact for payment and FX inquiries

Benefits of autobahn®FX

• Quick and easy access to deep market liquidity

• Any size of deal possible (up to your available credit/margin limit)

• Commission-free dealing

• Consistent, reliable currency and precious metal prices

• Transparent view of the market from your office, home or while travelling

• Dedicated 24-hour client support team: contactable by chat, email and telephone

• 24-hour availability 6 days a week: you can trade even when your local market is closed

www.autobahnfx.db.com
Features of autobahn®FX

 Over 200 currency pairs

 Dynamic Pricing on Spot: prices adjust according to size of trade
 Straight Through Processing (STP)
 Email Trade Confirmations can be sent to multiple destinations for
all Spot, Outright, Swap and Option transactions
 Post trade operations available on demand: aggregation, rolls and
allocation
 Application Programmable Interfaces (API): deliver streaming prices
24 hours a day
 Laddered Pricing
 FX indices are offered for a selection of currencies and baskets
 Customisable Trade and Expiry Blotters
 Streaming Pricing on Options as well as Spot, Outrights and Swaps
 Exceptional range of Non-Deliverable Forwards (NDFs) available
 Full Options pricing capabilities
autobahn®FX

Spot Liquidity Window… … with Fast Orders

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Option Calculator – Vanillas and Strategies

Page 15
autobahn®FXAlgo

 New trading tool allowing you to control the slicing, timing and fills of large orders with
much greater precision and transparency than has previously been possible

 Allows you to decide in advance exact order size and spreads

 Monitor your order and stop, pause or amend strategies at the click of a button
Introduction - autobahn®Treasury

 autobahn®Treasury is the all in one solution for the automation and

optimisation of FX and MM transactions between group treasuries and
their subsidiaries.

 Corporates can easily manage and centralise internal treasury

workflows with and for their subsidiaries.

 With autobahn®Treasury, corporates are able to capture trades

internally with subsidiaries and directly with Deutsche Bank. Internal
trade requests from subsidiaries can be quoted automatically based on
Deutsche Bank rates with optional mark-up or manually.

 Treasury has the ability to take internal trades into the groups currency
position or to hedge them automatically one to one with Deutsche Bank.
Currency positions can be hedged manually or automatically.
autobahn®Treasury Modules

Trade Blotters & ToDo List

FX Netting/Position by CCY
and Total (incl. P&L and NPV)

FX & MM trade capture

Administration & Tools

FX & MM confirmation tool

FX4Cash Client Website

Currency
Guide

Demos

Latest News

Contact details

Brochures

www.db.com/fx4cash
Username: FX4Cash
Password: deutsche
FX4Cash Smart Convert

 Smart Convert is…

– A new feature of FX4Cash
– An automated conversion of USD, EUR and GBP payments into the local
currency
– An easy service to implement, requiring little change by your bank
– A new approach for your bank to earn revenues

 How does it work?

– Your bank sends eligible USD and/or EUR payments to an usual SWIFT
address (DEUTDEFF for EUR, BKTRUS33 for USD)
– DB will determine if payment can be converted to local currency based
on your parameters:
– Amt thresholds, Country, Bene, B/O
– DB will book a trade and on settlement , make the payment in local
currency (Same day, Next day and Spot)
– Your bank has the opportunity to add a mark-up to our core rate
– Payment is effected in local currency to beneficiary

Page 21
The Details: Flow and Override Controls

Flow Controls
 Available currencies
– Set-up for each client
– If BBK field (57) is a valid country (5th and 6th characters),
Smart Convert will convert to respective currency
 Amount thresholds
– Ability to set minimum and maximum thresholds
– Minimum should not be less than USD/EUR500
– Maximum should generally not be greater than USD/EUR
500k
 Other Inclusion options:
– Any field in payment message
– For example, the client may want to set-up Swiss Franc for
only two beneficiary banks

Override Controls
 Payment Details
– Beneficiary
– By Order Party
– Beneficiary Bank
– Reference
 Wildcards available
 Other Overrides
– Intercompany transfers (Field 23=INTC)
Page 22
The Details: Managing Reconverts

 Reconverts
– Reconverts occur when we receive a complaint
from the bene or our client about the conversion
and we are requested to pay in the original
currency
– Once funds are returned, FX4Cash Investigations
will reconvert the paid funds to the original
currency using the rates for that day
– The payment is then re-effected in full amount to
the beneficiary in the original currency
– Your bank has the option of automatically setting
the beneficiary on an override pattern or you can
review individually

– When the conversion to the original currency

occurs, there may be a gain or loss from the
conversion.
– We will ensure special arrangements with your
bank to manage this gain or loss.

Page 23
Questions and Answers – Smart Convert

 Q: Is there a legal agreement needed?  Q: Can our bank use standard FX4Cash as well as
 A: Yes, a slim 3 page agreement is required Smart Convert?
 A: Yes. However, we currently cannot differentiate
the markup or client margin between the two
 Q: Why do we limit the currencies to 39? services unless the client opens a separate
 A: We limit the currencies to those provided by DB account
London where we do not face restrictions in the
payment or in their returns  Q: What are the special formatting requirements?
 A: There are none.
 Q: How do we manage returns or complaints?
 A: Once we receive a return, we will re-effect the
full original currency amount. The potential gain or
loss can be borne by the customer or the sales
manager

 Q: How do I get implemented?

 A: The same implementation process used for
FX4Cash is used for Smart Convert. Once the set-
up form is completed, a client kick off meeting will
be scheduled.

Page 24