Trade Programs on Private Placement basis can be applied without that client moves the funds from his own bank account.
Cash fund must be in a checking or saving account, the funds are never at risk because client has not to wire transfer the cash fund to a third party bank account.
All the procedures are bank-to-bank and based on SWIFT messages with internal banking protocol messages.
Every step of the bank-to-bank procedure is with full banking responsibility and the funds are blocked into the client’s bank with a MT-799 Swift, an administrative hold or some times it’s possible that the Trader Desk operates the asset through a Tear Sheet.
The asset for the Trade Program (PPP) can be represented by a financial instrument as well, like a Standby Letter of Credit (SBLC) or a Bank Guarantee (BG). In that case, the legitimate Owner of the financial instrument, issued by high rated or other acceptable banks will first monetize the instrument. It means that the Monetizer, after receiving the instrument at his receiving bank, will send a MT-103 Swift payment to the Owner’s issuing bank for an agreed amount called Loan-To-Value (LTV) or the MT-103 will be sent directly to the Platform’s bank.
After the monetization process ends, the amount/LTV will be used to go on Trade.