Training Courses

Training Courses

NEW COURSE - Derivatives Operations

Derivatives Operations

Course Title:               Life Cycle of an OTC Derivatives Trade
Course Duration :      2 Days
Location :                     City of London
PRICE:                         £950+vat per delegate

       FEBRUARY COURSE                 MAY COURSE

 

Current OFFER - TWO DELEGATES for the PRICE OF ONE.
 
WHO SHOULD ATEND?
 
Anyone seeking to understand the full life cycle of OTC derivatives in the market today.
 
This interactive course is suitable for all staff from Middle Office, Operations, Compliance, Audit, Legal, Accounts etc.*
 
To enhance learning exercises and case studies will be used throughout.
 
Interest Rate Swaps
IRSs are the foundation of OTC derivatives, we explain how they are they used, give an overview of the product and provide an in depth knowledge of the life cycle.
  • Documentation / Master Agreements
  • Confirmations
  • Cash Flows
  • Valuation / MTM
  • PV01 and DV01
  • Collateral / Credit Support Annex
  • Collateral Dispute Resolution Exercise
  • Reading the Bloomberg Screen
  • Reconciliation / Nostro Breaks
  • Swapswire and Netting Agreements
  • Accounting / which credits and debits are passed
 
Credit Default Swaps
In addition to a full explanation of the product and life cycle, we discuss the latest operational developments.
  • How are they used ? / Basic overview of the product
  • The Life Cycle of a CDS, this will cover the same format as IRSs
  • DTC Matching
  • RED Pairs
  • Mark-It and their role in credit derivatives
  • Reading the Bloomberg Screen
  • Case Study
        - We value a CDS, pass credits and debits and make the cash payments.
        - Credit Events – what happens ? / 2003 Definitions
 
iTraxx / iBoxx / LevEx 
These increasingly popular indices can appear complex, but a thorough understanding is essential.
  • Product description
  • Operational Processing
  • Case Study
        - We buy and sell indices, calculate the price and make the cash payments
          necessary.
 
Equity and Total Return Swaps
The use of case studies enhances understanding and shows how these products work in a very practical way.
  • How are Equity and TRSs used in the market ?
  • CFDs Exercise
  • The Life Cycle of a TRS, this again will cover the same format as IRSs
  • Corporate Actions / Manufactured Dividends
  • Case Study
        - We build a cross currency equity swap. Then value the swap and analyse the cash
        flows
 
Options
While operationally these can appear simple products, a full understanding of the underlying complexities is essential to ensure efficient processing and avoid potential financial disaster. 
 
  • How are they used ? / Basic overview of the product
  • The Life Cycle of an Option, this will again cover the same format as IRSs
  • Basic Strategies
        - Straddles
        - Strangles
        - Butterflies
  • Understanding the Greeks
        - Delta
        - Gamma
        - Vega
  • Case Study
        - We look at some complex confirmations and delegates are asked to match these
          against our trades.
 
Operational Flow Diagrams
To consolidate the delegates knowledge, they will be are asked to work in teams to construct flow diagrams, showing the life cycle of a particular derivative. The teams will then compare and discuss their findings with each other and the trainer.
 
Overview of Complex Products
If there are products which delegates would like to have “demystified”, they are invited to send questions regarding the more complex products, two weeks prior to the course, Examples of these might be :
 
  • Var and Vol Swaps
  • Exotic Options eg Double No Touch
 
* No prior knowledge is necessary, although some product
knowledge would be useful.

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