From: Paul Morris Sent: 1/29/2015 5:22:41 PM To: Stewart 0ldfield [ Subject: FW: One idea for diverging policies - calls on global dispersion [CI Classification: Confidential Paul Morris Managing Director Deutsche Bank Private Bank From: Daniel Sabba Sent: Thursday, January 29, 2015 5:12 PM To: Daniel Sabba; Jeffrey E. Cc: Vahe Stepanian; Richard Kahn; Paul Morris Subject: RE: One idea for diverging policies - calls on global dispersion [C] Classification: Confidential Jeffrey, Per our conversation, we received your order to bid on this structure at the indicated terms for $100k premium (- 54.166mm notional). As discussed, we communicated your overnight order to our London desk and we will revert tomorrow on whether the transaction has been executed. Thank you, Daniel From: Daniel Sabba Sent: Thursday, January 29, 2015 2:54 PM To: 'Jeffrey E.' Cc: Vahe Stepanian; Richard Kahn; Paul Morris Subject: One idea for diverging policies - calls on global dispersion [C] Classification: Confidential Jeffrey, As we look at the world, the enormous dispersion of monetary and fiscal policies is obvious. One transaction we have used in the past to articulate this theme, and it trickling down to equity markets, are calls on dispersion. This is an OTC transaction in which a client pays a premium and receives a payout based on the average realized dispersion across global markets. It is a way to be economically short correlation and long volatility across markets, similarly to outperformance index options. I have plotted the historical 1.y average realized dispersion between S&P500, EuroStoxx50, Nikkei, EEM and HSCEI to illustrate. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0044287 CONFIDENTIAL SDNY_GM_00190471 EFTA01357630