Financial Derivatives - Warm-Up

Day One

09.00 - 09.15 Welcome and Introduction

09.15 - 10.15 General Introduction to Financial Derivatives

• What Is a “Derivative Instrument”?
• A Brief History of Derivatives and Derivative Markets
• Types of Derivative Instruments
  • Forwards vs. Options
  • Listed vs. OTC
• Derivatives Glossary
• Generic Pay-Off Profiles
• What You Can Do with Derivatives

10.30 - 12.00 Derivatives Markets and How they Work

• Futures and Options Markets
  • Futures and Options Definitions and Mechanics
  • Pay-Off and P&L Diagrams
  • Important Futures and Options Exchanges and Contracts
  • How Futures and Options are Traded
  • Clearing and Settlement of Futures and Options Trades
• FRAs, Forwards and Swaps
  • Types, Mechanics, Trading and Settlement
• Interest Rate Options
  • Types, Mechanics, Trading and Settlement
• Credit Derivatives
  • Types, Mechanics, Trading and Settlement

12.00 - 13.00 Lunch

13.00 - 14.30 Derivatives Applications (Overview)

• Using Futures and Options for Trading
• Using Futures and Options for Hedging
• Using FRAs and Swaps to Manage Interest Rate Risk
• Using Currency Forwards, Swaps and Option to Manage FC Risk
• Using Credit Derivatives to Manage Credit Risk

14.45 - 15.45 Risk Management, Reporting, Control and Regulatory Issues

• Overview of Derivatives Risks
• Overview of Methods and Tools for Risk Management
• Internal and External Reporting Requirements
• Sound Practices for Managing Derivatives Risks
• Control Systems and Procedures
• Regulatory Treatment of Derivatives

15.45 - 16.15 Small Quiz

Evaluation and Termination of the Seminar