Fundamentals Of Derivatives Operations
The course has been designed to provide operations functions with a robust training programme that will help increase their understanding of the products while at the same time enhancing procedures and processes for clearing and settling derivative transactions.
Course Highlights
I liked the examples used by the course leader
Luc Worm, Operations, Blue Sky Group
Attend this intensive training course and gain practical knowledge and understanding of:
- The most commonly used derivative instruments and their uses
- Settlement conventions for exchange-traded and over-the counter derivatives
- Clearing and settlement processes required to complete a derivative transaction
- The impact of corporate actions on derivative positions
- The current regulation, compliance issues and derivatives documentation
For details of the course trainer, please download the course brochure
Booking Information
| Dates | Prices | Book This Course | Discount |
|---|---|---|---|
| 09 - 10 Sep 2010 |
£ 1799 |
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| 14 - 15 Mar 2011 |
£ 1799 |
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Course Programme
I liked the examples used by the course leader
Luc Worm, Operations, Blue Sky Group
What I liked most about this course was the way theory was combined with practical real-life examples
H.v.D., Rabobank International
What I liked most about this course was the course leader's style of teaching
N.H., SEB Invest Luxembourg SA
Overview of derivative products
- Understanding their characteristics and uses
- exchange-traded vs. over-the-counter derivatives
- futures and options
- interest rate, currency and equity swaps
- forwards and forward rate agreements (FRAs)
- commodities
- credit derivatives
- The impact of the financial crash in 2008/2009
Workshop:
Part I: Common uses of derivatives
- trading and arbitrage
- asset allocation
- income enhancement
- hedging
Part II: The involvement of the operations areas
Settlement conventions
- Describing the process used for clearing derivatives
- exchange-traded derivatives
- over-the-counter (OTC) derivatives
- RepoClear
- SwapClear
- Exchange for physical
- Cash and physical delivery
- Delivery, exercise and assignment
Clearing and settlement of derivatives
- The role of the clearing house
- The global clearing process
- allocations and give-ups
- pros and cons of global clearing
- OTC settlement
- markitserv
- confirmation process for OTC transactions
- legal agreements
- price check
- book-keeping
- RepoClear
- SwapClear
- Reconciliation: internal and external
- Margining: initial and variation
- Collateral management
- Valuations
- Reporting
- Deliveries
- financial
- commodities
Impact of corporate actions on derivative products
- Common types of corporate actions and examples
- Role of the exchange
- Rights issues
- Capitalisation
- Takeovers, mergers and de-mergers
- Dividends
Regulation and compliance
- Overview of the regulation of derivatives
- capital requirements
- accounting treatment
- Client agreements
- Clearing house default management
Controlling derivatives risk
- Overview of derivatives risks
- transaction control
- management reporting
- contracts and agreements
Derivatives Documentation
- Understanding the terminology
- Purpose of documentation
- Purpose of confirmation
- OTC documentation
Workshop: Establishing a derivatives administration capability
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