CLT
 

Derivatives Fundamentals
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Course Overview Seminar

  • In association with Quorum Training
A two day course for everyone needing to know more about derivatives, giving a step-by-step guide to the products, applications and risks. We introduce participants to credit derivatives - one of the fastest growing instruments in the market and focus on how the market is structured, the participants and look at new market developments such as Sarbanes-Oxley, IAS 39, Straight Through Processing (STP) and the importance of timely and efficient settlement of trades.

PROGRAMME


DAY 1


MARKET BACKGROUND


  • Definition

  • Futures, FRAs, options, swap

  • Exchange traded vs over the counter (OTC)

  • Credit risk and gearing

  • Overview of documentation - ISDA


MARKET PARTICIPANTS

  • The sell side vs the buy side

  • Brokers and custodians

  • Information providers, IT specialists

  • Post trade processing agents


UNDERLYING ASSET CLASSES

  • Interest rates, currency, equity, commodities, credit



FINANCIAL FUTURES

  • Definition and key features

  • Terminology

  • The role of the Clearing House

  • Market operations

    • Initial and variation margin calculations

    • Marking to market



FORWARD RATE AGREEMENTS (FRAS)

  • Definition and key features

  • Terminology

  • Understanding forward/forward rates

  • Examples and applications



DAY 2

INTEREST RATE AND CURRENCY SWAPS

  • Definition and key features

  • Terminology

  • Range of swap types including 'vanilla', fixed/floating, basis and currency swaps

  • Risk management with swaps



CREDIT DERIVATIVES

  • Definition and key features

  • Buying and selling credit protection

  • What is a credit event?

  • Credit default swaps - Applications and examples



OPTIONS

  • Definition and key features

  • Terminology and the basics of volatility

  • Traditional vs exotic options

  • Currency and interest rate options



UNDERSTANDING THE BUSINESS PROCESS

  • What happens after the dealer says 'done'

  • Trade capture

  • Validation/enrichment

  • Inward/outward confirmations

  • Fixings

  • Settlement

  • Investigations



MARKET INITIATIVES

  • Straight Through Processing (STP)

  • Sarbanes-Oxley

  • IAS 39/FAS 133

  • Central counterparty (CCP)

  • Using portals



:

"Complicated concepts were explained in a simplified way"

Course Dates

14/06/2012
London   		09:30 - 17:00
Venue Information
30/10/2012
London   		09:30 - 17:00
Venue Information