Fundamentals of Derivatives
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Fundamentals of Derivatives 30 Nov 2 Dec 2015 Hong Kong, Hong Kong US$4,990 [email protected] | +852 2520 1481
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Fundamentals of Derivatives
Transcript of Fundamentals of Derivatives
Fundamentals of Derivatives
30 Nov 2 Dec 2015
Hong Kong, Hong Kong
US$4,990
[email protected] | +852 2520 1481
This is Module One of Derivatives School. 'Fundamentals of Derivatives' is a comprehensive overview of the major classes of derivatives, distinguishing between linear and nonlinear derivatives. Save US$1,690 for registering this couse and Bank Applications of Derivatives! Just contact us at [email protected] to register and enjoy this special offer. *FTS Eligible Financial Training Scheme for more information click on the "Course Description" below or email us
Course Instructor
Former Strategic Development Manager at the London International Financial Futures Exchange (LIFFE)
Course Description
l How and why are derivatives used in practice? l The difference between exchangetraded and OTC derivatives? l Clearing procedures for exchangetraded derivatives l Understanding the principal money market derivatives and how they are used to manage interest rate risk l Swaps and how banks and other institutions use them l Prima on options and their application in the management of FX risk l How derivatives are embedded in common structures to provide investors with attractive risk/reward profiles
FTS Eligible Financial Training Scheme for Singaporean citizens and PRs only (more information)
Course overview
Module 1: Fundamentals of Derivatives (Day 1 Day 3) is a comprehensive overview of the major classes of derivatives, distinguishing between linear and nonlinear derivatives.
Summary of course content
Methodology
This modular course uses interactive lectures, worked examples and realworld case studies showing in detail how the products are used and why. It shows the products in a highly practical way, without overcomplication, with clear illustrations of each so that you may readily understand them and the role the bank plays.
You can attend both modules of this Derivatives School to enjoy most benefit or pick from the following modules.
Module 1: Fundamentals of Derivatives
Module 2: Bank Applications of Derivatives Save US$1,690 for registering both modules!
FTS Eligible
This programme is approved for listing on the Financial Training Scheme (FTS) Programme Directory and is eligible for FTS claims subject to all eligibility criteria being met.
Please note that in no way does this represent an endorsement of the quality of the training provider and programme. Participants are advised to assess the suitability of the programme and its relevance to participants' business activities or job roles.
The FTS is available to eligible entities, at a 50% funding level of programme fees, subject to a cap of $2,000/participant/programme and all eligibility criteria being met. FTS claims may only be made for programmes listed on the FTS Programme Directory with specified validity period. Please refer to www.ibf.org.sg for more information.
[email protected] | +852 2520 1481
Agenda
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Please note that this course is only eligible for FTS Funding when registering for all modules.
l What is a derivative? l The equity CFD market explained l Why is there a market for derivatives?
l Attributes of derivatives l Practical uses of derivatives
l Leveraged trading l Risk management applications l Creating synthetic positions
l Advantages of derivative instruments over cash instruments
l OTC vs. Exchange traded products l Recent developments
l Broking vs. Market making l Trade execution
l Order vs. Quote driven markets l Market order types l Placing orders in an electronic trading platform
l Calculating the P & L on a futures contract l Understanding the Clearing House guarantee and margining system for exchange traded instruments
l Concept of a forward contract l Forward interest rates l Forward rate agreements (FRA’s)
l Lockingin a forward interest rate l Exchange traded version: Shortterm interest rate (STIR) futures contracts
l The interest rate swap (IRS) market l Types of swap
l Interest rate swaps l Currency swaps
l Understanding the credit risk in swaps l Relationship between swaps and forwards l Market structure
l Interbank vs. Customer market l Broker quotes in the interbank market
l Why the market exists: Reducing funding costs by using swaps l Applications of swaps
*FTS Eligible Financial Training Scheme for Singaporean citizens and PRs only (more information) Module 1
FUNDAMENTALS OF DERIVATIVES
Day 1: Introduction to derivatives and derivative types
Introduction to derivatives
The trading, dealing and clearing environment
Case study: Delegates will complete a margining return over a period of time for a small portfolio
Linear derivatives: Money market derivatives
Case study: Delegates will complete a number of exercises based on FRA’s and STIR’s
Day 2: Swaps
Multiperiod linear interest rate derivatives: Swaps
Case Study: Delegates will derive the market swap bid and offer rates consistent with the actual and target borrow rates of two institutions
[email protected] | +852 2520 1481
About the instructors
l Building the discount function l What instruments to use l "Bootstrapping" the swaps curve
l Identifying the cash flows l Representing the floating cash flows as notional cash flows l Extending the principle: Pricing a deferred start swap
l Markingtomarket a currency rate swap
l What is an option? l Option terminology
l Exercise types l Option "moneyness" l Intrinsic vs. Time value
l Understanding the payoff profiles
l Understanding how to construct payoff profiles for combinations of options and the underlying l Understanding the relationship between puts and call l Identifying common directional and volatility trading strategies l Hedging with options
l The importance of correct valuation l What drives the price of the option: Understanding the model inputs l Approaches to option valuation: Hedge approach vs. Probabilistic approach l Breakingdown the Black Scholes option pricing model l Option risk measures: The "Greeks"
A framework for markingtomarket OTC derivative positions
Case study: Using the bootstrapping approach, delegates will derive the interbank discount function
Markingtomarket interest rate and currency swaps
Case study: Using the discount function derived earlier, delegates will marktomarket a number of swap positions
Day 3: Introduction to options
An options primer
Trading and hedging strategies with equity options
Case study: Delegates will draw the payoff profiles of a number of trading strategies
Introduction to option pricing and risk measures
Case study: Delegates will use the option Greeks to estimate the new price following a change in market variables
The Course Director was the Strategic Development Manager at the London International Financial Futures Exchange (LIFFE), where he was responsible for the research and definition of new specialist swap and risk transfer contracts. Prior to this, he was Head of Interest Rate Product Development with responsibility for the maintenance of the existing product range and the development of new products. He began his career with Ernst & Young and Grant Thornton as a tax specialist, before moving into corporate treasury management at Royal Mail where he was project leader for a treasury and risk management group. In this role he developed risk management protocols and procedures for the use of derivative products. He was responsible for recommending the optimal combination of product types and features for a wide range of situations. Following the completion of a quantitative finance masters degree, he became senior lecturer in Corporate Finance and Taxation at the University of Greenwich. He is a visiting lecturer to Cass Business School on their Executive MBA programme.
[email protected] | +852 2520 1481
Venue
Who Should Attend
The Derivative School is beneficial to professionals at all levels who require a thorough understanding of derivatives and their practical applications.
Previous Attendees
Why Us
Why us
We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.
We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:
Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten. Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals. Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none. Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries. Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product
Courses run by this instructor
Derivatives School (Modular Course) Fixed Income & Corporate Bonds Bank Applications of Derivatives
He is a panel member for the Securities Institute, a member of the Association of Corporate Treasurers and an associate of the Institute of Taxation.
45 Star Hotel in Hong Kong, Hong Kong, Hong Kong
All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course. Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
[email protected] | +852 2520 1481
All fees are net of withholding, business and local taxes.
Delegates registering from Australia and Singapore to attend courses located in their country of residence, will bear the prevailing GST at the date of invoice. Seat is confirmed only upon receipt of payment.
Discounts are not to be combined.
Due to recent changes in VISA processing, delegates are strongly advised to obtain relevant VISAs up to one month prior to the course.
Euromoney Learning Solutions Certificate
Delegates who successfully complete this course will receive the prestigious Euromoney Learning Solutions Certificate a statement of excellence recognised worldwide.
Disclaimer
Euromoney Learning Solutions reserves the right to alter any part of the published programme or faculty. In the event of course cancellation by Euromoney Learning Solutions due to unforeseen circumstances, Euromoney Learning Solutions limits its liabilities to refunding the tuition fee of the course.
Cancellation policy
If any registered delegate cannot attend our course, a replacement is always welcome for the course. Cancellations must be made in writing (email or fax) with Euromoney Learning Solutions’s acknowledgement. Written cancellations must reach this office 30 days before the programme commences. A full refund less an administration charge of US$150 will be given. For any written cancellation requests that reach us less than 30 days before the event, no refunds will be given. However, if you wish to attend another Euromoney Learning Solutions course in AsiaPacific, a 75% discount voucher which values not more than 75% of the initial payment will be issued. Please note that the subsequent course must take place within 6 months of the initial registration. Discount vouchers are transferable within the same organisation, but not to be used in conjunction with any other discount schemes. Discount vouchers will not be issued for noshows without cancellation. Euromoney Learning Solutions reserves the right to the final decision if any dispute arises.
[email protected] | +852 2520 1481
