Derivatives Masterclass 101 in collaboration with Nairobi Securities Exchange
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This Derivatives Masterclass course 101 will leverage derivative trading case studies and practical insights to enable you to mitigate risk and maximise returns.
This course and case study driven 3 hour Masterclass organised by LSEG Academy in collaboration with partner Nairobi Securities Exchange is designed to provide delegates with an insight into the many benefits of using derivatives but also the practical challenges, including some of the pitfalls as illustrated in a number of case studies from history. The session will also include the trainer’s experiences of working in derivatives at LIFFE exchange in the early years and explaining the practical challenges faced by different organisations in the adoption of derivatives. The course is the first of what is intended to be a series of workshops deep diving into different aspects of Derivatives..
Attending this course will enable you to;
- Avoid mistakes and pitfalls of using derivatives using case studies and practical insights
- Understand and mitigate different types of of risk – market, credit, systemic, operation, legal, counterparty, reputation, leverage, etc
- Understand the challenges faced by organisations adopting derivatives – approval, operations set up, risk management, margining, types of account, etc
- Drive high returns with a robust understanding of the workings and terminology of listed derivatives as well as the operations of the clearing house and margining system
- Successfully capture value by understanding how profit and loss are calculated
Who should attend?
This virtual course has been designed to appeal to the following professionals:
- Derivatives Traders
- Fund Managers
- Risk Managers
- Settlement Professionals
- Financial Advisors
- A full copy of the course materials and examples
- Certificate of completion
(Time TBD) Thursday 25 March 2021
- Briefly review the workings and terminology of listed derivatives
- Emphasize the operations of the clearing house and margining system
- Examine how derivatives are used and explain their inherent risks
- Explore some of the practical challenges of using derivatives including
case studies – Barings Bank, MF Global, Flash crash
The following areas will be explored:
- Understanding types of risk – market, credit, systemic, operation, legal, counterparty, reputation, leverage….etc
- A brief background to financial derivatives since 1970s
- Lessons from the early years of the LIFFE market
- Dealing with regulators, funds, banks, brokers, treasurers, media, general public
- Challenges faced by organisations adopting derivatives – approval, operations set up, risk management, margining, types of account, etc
- Describe the contract design and terminology of a futures and options contract
- Derivatives convert market risk into counterparty risk – what does this mean?
- Exchanges, CCPs and CSDs – How they work and what are their short comings?
- How does a CCP mitigate risk? Can clearing members or the CCP fail?
- Understand how profit and loss is calculated
- Who are the key users of derivatives? Are speculators good or bad?
- Hedgers, traders and arbitrageurs – pricing concepts explained
- What are some of the pitfalls from using derivatives?
- Case study - Barings Bank
Case study - MF Global
Case study - Flash crash