1. Achieving excellence in trade finance
LTP Trade
Contents
LTP Trade
Clients
Expertise
Background
Services
Partnerships
Contact
Appendix:
Current Challenges in the Trade Finance Market
1 May 2005

2. Achieving excellence in trade finance
LTP Trade
Specialized consultancy focusing on the trade finance market.
Clients
2 May 2005
· Banks
· Export credit agencies
· Trade & political risk insurers
· Multinational companies
· Specialized funds
Expertise
We have a unique combination of experience:
Experience Example engagements
Trade Finance (banks)
Customer Finance (companies)
MDM Bank – program for building international
trade finance funding relationships.
Monsanto – customer finance strategy for
overseas sales and implementation of
technology driven program in Asia.
Emerging markets NCR Corporation – assessment of trade
finance funding options and implementation of
finance program to support sales in Russia,
Kazakhstan, Ukraine.
Internet for non-securities General Electric Power – development and
implementation of on-line system for managing
letters of credit with relationship banks.
Quantitative finance SIMEST (Italian government) – data for global
interest equalization program.
WestLB-Tricon Fund –valuations, quantitative
data and analysis for fund.
Moscow Narodny Bank –valuations, quantitative
data.
Risk management State Street Bank – development and
implementation of settlement and custody
system to remove operational risk from trade
finance secondary market dealing.
UPS Capital – development of strategy and
tactics for distribution of trade finance risk.
Strategy Cisco Systems – development of emerging
markets trade finance strategy.

3. Achieving excellence in trade finance
3 May 2005
Background
LTP Trade was founded in 1999 by three directors of Deutsche Bank / Morgan Grenfell
Emerging Markets Proprietary Trading division. Working together for ten years, they
were responsible for building the bank’s trade finance & structured credit trading
business globally. They and their team colleagues’ achievements have been recognized
by numerous high profile industry awards, including:
Deals of the Year 2002 (Trade & Forfaiting Review, 2003), Euromoney Internet Award
for Trade Finance 2002 (euromoney.com, 2002), Euromoney Internet Award for Trade
Finance 2001 (euromoney.com, 2001), Trade Finance Awards for Excellence – Best
Newcomer to Trade Finance (Trade Finance, 2001), Trade Finance Deal of the Year
2000 (FT The Banker, 2001), Euromoney Internet Award for Trade Finance 2000
(euromoney.com, 2000).
This background has given LTP Trade the unique combination of an investment banking
perspective and skill set together with in depth knowledge and experience of trade
finance. These skills are becoming increasingly important to both banks and companies
as Basel II impacts traditional trade finance activities.
Services
We provide the following services:
· Consultancy
· Project development & implementation
· Quantitative research
· LTP Trade Finance IndexÔ (see below), data provision, valuations
The LTP Trade Finance IndexÔ is the only index for the international trade finance
market. Since its inception in 2000 the index has become recognized as an industry and
fund benchmark for the trade finance asset class.
Partnerships
We partner with other companies including consultants and technology providers where
we share the same values and with whom we can combine complementary skills for the
benefit of clients.
We believe that a minimum level of closeness and trust relationship with the client is
required to ensure that projects are successful. For this reason we are usually not willing
simply to take introductions, but prefer to work in partnership with consultants so that
existing relationships are maintained within the project.

4. Achieving excellence in trade finance
4 May 2005
Contact
Luigi La Ferla
Email: Luigi.LaFerla@LTP.com
Tel: +44 (0)208 899 6811 (direct)
+44 (0)7785 394 061 (mobile)
Website: www.ltp.com
Luigi La Ferla has over 20 years of trade finance experience. he has been CEO of LTP
Trade since the company’s formation in 1999, and prior to that was Managing Director
and Head of Global Banking Division, International Trade Finance at Deutsche Bank.
Luigi La Ferla had a 15 year career at Morgan Grenfell and then Deutsche Bank (which
purchased Morgan Grenfell in 1989), and during this time he was a member of the
Operating Committee of Deutsche Bank’s Global Banking Division, a member of
Deutsche Morgan Grenfell’s Emerging Markets Proprietary Trading (EMPT) Operating
Committee and EMPT’s Investment Committee, and he was a member of the boards of
DB (Russia) Ltd; Morgan Grenfell & Co. Limited; Deutsche Morgan Grenfell (Andes)
Ltda; and Deutsche Morgan Grenfell Trade Finance.
Amongst his other achievements at the Group, Luigi La Ferla set up Morgan Grenfell’s
forfaiting business which became one of the world’s leading global forfaiting groups. The
business units that he was responsible for in the Group were consistently profitable,
meeting or exceeding bank targets each year over the whole 15 year period. In 1997,
despite the relatively small size of the division, EMPT was the single biggest contributor
to Deutsche Morgan Grenfell’s net profit.
Luigi La Ferla, a Dottore in Discipline Economiche e Sociali (“DES”) of the Università
Commerciale Luigi Bocconi, in Milan, and he has a strong background in Econometrics.

5. Achieving excellence in trade finance
Appendix:
Current Challenges in the Trade Finance Market
Major challenges currently affecting banks, companies and others involved in the trade
finance market include:
1. Basel II
Basel II is the new bank capital adequacy framework coming into effect from the end of
2006.
Banks will need to allocate 2.5x or more regulatory capital to support emerging markets
trade finance exposure:
Export L/Cs:
3,000,000
2,000,000
1,000,000
Basel I
Basel II - Standardised (option 2)
Basel II - Foundation IRB (Calibrated)
Basel II - Advanced IRB (Calibrated)
Both ‘plain vanilla’ trade finance (e.g. letters of credit) and structured trade finance (e.g.
commodity finance) are affected:
400%
350%
300%
250%
200%
150%
100%
50%
BBB
BB
B
This is a challenge for:
Banks – “How can we continue to provide trade finance services when the capital
needed to support the business will be much higher?”
Companies – “How can I ensure that I will continue to receive competitive trade finance
to support my sales?”
5 May 2005
0
AAA or Aaa AA or Aa A or A BBB or Baa BB or Ba B or B CCC or Caa
0%
0% 20% 40% 60% 80% 100%
RWA
LGD
Price difference
of 4-3/8%

6. Achieving excellence in trade finance
6 May 2005
2. The financial supply chain
Improvements in efficiency and transparency in companies’ physical supply chains have
not been matched by comparable improvements in the financial supply chain.
When banks are asked to provide risk capital to support companies’ customer financing
for their sale of goods to overseas markets, the lack of efficiency in the financial supply
chain is slowing down sales and generating unnecessary costs for both the company
and the banks. This is particularly the case for multinational companies who work with
more than one relationship bank.
Leading companies are addressing this with new processes and technology, making
dramatic improvements in the efficiency, transparency and productivity of their financial
supply chain: