Learning outcomes
Training Description
Since the Global Financial Crisis in 2008, OTC Derivatives have been subject to momentous changes in their regulation, affecting all firms that indulge in these financial products. However, for many people working within the financial services industry OTC Derivatives remain a complex mystery and a real challenge to understand.
Derivatives are nowadays a global phenomenon; many types of derivative product have been introduced to mitigate risks of investors and other institutions such as banks. For those that are not involved in such products on a day-by-day basis, understanding of the purpose of each product type is not easy to ascertain, thereby making the understanding of associated operational actions (e.g. trade processing and collateral management) challenging to comprehend. For each product, its purpose and possible outcomes must be well understood by operations and other personnel within financial institutions to provide top quality servicing of clients and to avoid processing losses. Therefore, it is essential that those financial specialists involved in derivative processing and associated collateral management, understand the overall picture to identify risk situations as early as possible in the transaction life cycle.
Course Style
Delegates will find this event to be fast-paced and highly interactive, with the course director at all times encouraging the delegates to ask questions and to seek clarification of concepts. In order to maximise the learning opportunity, delegates are encouraged to actively participate throughout the course. Delegates can expect to undertake multiple exercises and simulations (working either individually or as part of a small ‘firm’), enabling the delegates to prove their understanding of the many concepts covered.
By the end of the MasterClass, the participants will:
- Be aware of the fundamental purpose and structure of derivative products
- Understand the similarities/differences between exchange traded derivatives and OTC derivatives
- Recognize the processing life cycle of a range of derivative products
- Understand what causes exposures in OTC Derivative trades and the purpose of collateral
- Appreciate the role of legal documentation and associated collateral management
- Comprehend the reasons for and detail of the EMIR regulation
- Understand the treatment of both centrally cleared and non centrally cleared trades
Appreciate the many practical difficulties, challenges and risks.
Training Schedule
Day one
08:45 Registration
09:00 Welcome & Introductions
09:15 SESSION 1: Fundamental Derivative Concepts
10:30 Tea, Coffee, Networking
10:45 SESSION 2: Exchange Traded Derivatives (Overview)
12:00 SESSION 3: OTC Derivatives – Introduction (Part 1)
12:45 Luncheon & Networking
13:45 SESSION 3: OTC Derivatives – Introduction (Part 2)
15:15 Tea, Coffee, Networking
15:30 SESSION 4: OTC Derivative Products & Their
Operational Characteristics17:30 SESSION 5: Exiting an OTC Derivative Trade
18:00 Close of the day
Day two
09:00 Introduction of Day 2
09:10 SESSION 6: Collateral Management for OTC Derivatives – Introduction
10:00 SESSION 7: The OTC Derivative Collateral
Lifecycle (Part 1)10:30 Tea, Coffee, Networking
10:45 SESSION 7: The OTC Derivative Collateral
Life cycle (Part 2)13:00 Luncheon & Networking
14:00 SESSION 8: Regulatory Change for OTC
Derivatives – EMIR Introduction15:00 SESSION 9: EMIR and Centrally Cleared
Trades (Part 1)15:30 Tea, Coffee, Networking
15:45 SESSION 9: EMIR and Centrally Cleared Trades
(Part 2)16:45 SESSION 10: EMIR and Non Centrally Cleared
Trades18:00 Close of Day 2
Training Program
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Get to know the Expert Trainer
Michael (Mike) Simmons is a specialist in the field of financial services operations; he has been involved with the capital markets and operations throughout his career.
Since 1995, he has been writing and delivering training programs to audiences of mixed vocation and experience, including operations staff, front-office personnel, compliance and risk officers, legal personnel, consultants and IT professionals. Such programs include securities operations (incorporating the trade lifecycle), repos and related collateral, securities lending & borrowing and related collateral, corporate actions (fundamental and intermediate), derivative operations (exchange-traded derivatives, OTC derivatives (including CDS & IRS) and related collateral) and related central clearing under EMIR, loan syndication (primary & secondary markets), clearing & settlement, fails & fails management, end-to-end process flow, and risks & controls in operations.
Mike’s training programmes have been delivered in the UK, US, Belgium, Denmark, Germany, Irish Republic, Italy, Luxembourg, The Netherlands, Russia, Spain, Switzerland, Kuwait, Qatar, Saudi Arabia, UAE, Australia, China, Hong Kong, India, Japan, Malaysia, Singapore and Tunisia.
Mike has delivered over 1400 training courses to investment banks, fund managers, asset managers, sovereign wealth funds, supranational organizations, management consultants, central securities depositories, custodians, central counter-parties, software companies and data vendors. A particular feature of Mike’s courses is the emphasis placed on risks within operations, and the associated controls.
Mike is the author of three books:
- Securities Operations; a Guide to Trade and Position Management
- Corporate Actions; a Guide to Securities Event Management
- Collateral Management; a Guide to Mitigating Counter-party Risk
published by John Wiley & Sons.
Who should attend?
The MasterClass will be beneficial for the financial industry professionals from:
- People working within banks and institutional investment companies, e.g. pension funds, mutual funds, hedge funds, insurance companies, asset managers, in the role of:
- traders, portfolio managers, salespeople, middle-office personnel, operations (back-office) personnel including those from derivative trade processing/derivative collateral management/reconciliation/static data, compliance, risk management, legal
- Personnel working within central securities depositories or custodian organisations
- People working for central counterparties and trade repositories
- Advisors or consultants working for management consulting firms
- Business analysts and programmers working for software companies
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FAQ
The client has the right to cancel his/her registration in the event.
There is a 50% liability on all conference registrations once made, whether the booking was made through our website or via e–mail/ telephone/ fax.
If the client cancels with more than 8 weeks’s advance notice, GLC shall be entitled to an amount equivalent to 50% of the conference fee and 16 EUR administration charge. In case the client has already made his/her payment, this will be deducted from the conference fee GLC has already received and the remainder will be refunded. If no conference fee has been received prior to the cancellation request, GLC will issue an invoice for the cancellation fee (the amount equivalent to 50% of the conference fee and 16 EUR administration charge), which the client must pay immediately upon receipt. No refunds are available for cancellations received with 8 week’s (or less) advance notice or in case the client fails to attend the conference. In these cases, the full amount of the conference fee must be paid.
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Many people are afraid to request for training budget, because they can’t seem to find the “perfect time” to do it. Well, there’s no perfect time to ask for it, but there are definitely some moments that are better than others. For instance, if your boss is about to take a two week vacation, he/she might be in a good mood. If he/she just lost a major account, may not be wise at that juncture. - Make a case for yourself
When you ask for budget, you should be prepared with specific details and explanations about what is in it for the company and you’re superior. If you go into a meeting and just say, “I want to get budget for a conference,” it’s likely that your request won’t be taken seriously. If you want to plan ahead, then you should be prepared to explain the following points:
1. Start by stating your accomplishments
2. Show that you’re ready for more responsibility and eager to learn
3. Describe:
a) How this event will increase your productivity?
b) How you will need less supervision
c) How you can bring back the knowledge to the company
4. Follow up