Small CAP Cash Trade Program
Normally, a PPP trading program is nothing more than a pre-arranged buy/sell arbitrage transaction of discounted banking instruments. Theoretically, any client with a large amount of funds (on the level of $100-500M USD) could arrange his own program by implementing the buy/sell transaction for himself; however, in this case he needs to control the entire process, initiating contact with the banks and the exit buyers at the same time. This is not a simple task, considering the restrictions in place.
For a client entering trade through HolyGrail Capital Trade Desk is much simpler (and usually more profitable) to enter a program. We have everything in place (the issuing banks, the exit buyers, the contracts ready for the arbitrage transaction, the line of credit with the trading banks, all of the necessary guarantees/safety for the client, etc.). The client needs only to agree with the contract proposed by the trader, disregarding any other underlying issues.
It is further advantageous for the client to enter a program with a substantially lower amount of money and benefit from the line of credit offered by the trading group. These programs are all based on arbitrage transactions with pre-defined prices. As such, the traders never need to be in control of the client’s funds. However, no program can start unless there is a sufficient quantity of money backing each transaction. It is at this point the clients are needed, because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds on the market, comprising unused money that belongs to clients, never at risk.
Usually, trading is performed under the “open market” (also known as the “spot market”) where discounted instruments are bought and sold with auction-type bids. To participate in such trading, the traders must be in full control of the funds, otherwise they lack the means buy the instruments and resell them. Also, there are fewer arbitrage transactions in this market, since all participants have knowledge of the instruments and their prices. As a direct consequence of the PPP Trade’s environment where this business has to take place, a non-solicitation agreement has to be strictly followed by all parties involved. This agreement strongly influences the way the participants can interact with each other.
The program works with cash only. This means that the client will only be accepted with liquid funds. We do not work with financial instruments or any other assets but cash alone. We do not circumvent the extant laws and we follow all AML (Anti Money Laundering) regulations.