Disclosures

Fixed price order disclosure

When transacting with you in the auction Deutsche Bank AG (and its branches and affiliates (together “Deutsche Bank”) as a primary dealer, acts in a principal capacity and does not act as an agent, fiduciary or in any similar capacity.

When you submit your fixed price order, Deutsche Bank, as a primary dealer in the auction, will enter this fixed price order into the auction system where required. Your order may or may not be filled, in full or in part, in the auction. Your order is only filled by the allocation received against it in the auction. Deutsche Bank cannot guarantee an allocation for your order and it does not exercise any discretion as to the price or size of the allocation or whether the order is filled.

As a primary dealer in the auction, Deutsche Bank has a number of competing interests which could give rise to potential conflicts of interest between Deutsche Bank and its clients.  When transacting with you, Deutsche Bank will most likely be bidding in the auction: (a) to facilitate other client orders, (b) to fulfil its obligations as a primary dealer in the auction (i.e. adhering to a minimum participation levels) and (c) for its own account. In doing so, it may be taking on risk positions.

In order to hedge these risks, to hedge other risks within the firm, to obtain liquidity and to hedge other client transactions, it may enter such hedging transactions with other counterparties prior to, and at the time at which the auction is run and auction prices are determined. In its role as a primary dealer, Deutsche Bank may also be active in the secondary market prior to, during, and immediately after an auction.

This hedging and secondary market trading activity may impact the price of the instrument which is to be auctioned, potentially to the detriment of a client.

Deutsche Bank’s Conflicts of Interest Policy sets out Deutsche Bank’s approach to conflict management and is available on the following website: https://www.db.com/company/en/media/Conflicts-of-Interest-Policy.pdf

In addition to the above it is important that you read Deutsche Banks Fixed Income Disclosures in order to understand how we may trade in relation to your fixed price orders / trade instructions, or other expressions of interest in fixed income products. Deutsche Banks Fixed Income Disclosure are available on the following website: https://www.db.com/company/en/fixed-income-disclosures.htmp

Reference Price Disclosure

When transacting with you, based on the ‘agreed published auction rate’ as a Reference Price Transaction, Deutsche Bank will be taking on a risk position and is exposed to the level of the ‘agreed published auction rate’, which is unknown at the time of trade. In order to hedge this risk, to hedge other risks within the firm, to obtain liquidity, to hedge other client transactions, and in accordance with its obligations as a Primary Dealer, Deutsche Bank is likely to be bidding in the auction for its own account. It may enter such hedging transactions with other counterparties before, and at, the time at which the auction is run and auction prices are determined. Deutsche Bank will transact at prices that may be different to the ‘agreed published auction rate’, and may incur a profit or loss through doing so. Any profit or loss resulting from such trading will accrue to Deutsche Bank. These market-making and hedging activities may also affect ‘agreed published auction rate’, and volume and volatility in related markets.

 

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Last Update: November 19, 2020
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