Mastering Derivatives Markets

<p><strong>Table of Contents </strong></p> <p> 1. Background and development of the derivatives markets</p> <ul> <li>Market background</li> <li>Introduction</li> <li>Key features</li> <li>Uses of derivatives</li> <li>Range of derivatives</li> <li>Increasing use of the Central Counterparty Model (CCP)</li> <li>Risk and benchmarking</li> <li>Market volumes</li> <li>Users and uses of derivatives</li> <li>Straight Through Processing (STP)</li> </ul> <p>2. Market fundamentals</p> <ul> <li>Introduction</li> <li>How banks generate income</li> <li>Three key assumptions</li> <li>Role and use of LIBOR</li> <li>Day counts</li> <li>Financial maths</li> <li>Calculating forward rates</li> <li>Marking to market</li> <li>Yield curves</li> <li>Quiz</li> </ul> <p> 3. Risk — a Primer</p> <ul> <li>Introduction</li> <li>Finacial risks: markets, credit, liquidity</li> <li>Operational risk</li> <li>More esoteric risks</li> </ul> <p>4. Derviatives Fundamentals</p> <ul> <li>Range of derivatives</li> <li>What is a vanilla trade?</li> <li>Settlement</li> <li>Triggers</li> <li>Liquidity and credit risk</li> <li>Understanding the 'underlying'</li> <li>Benchmarks</li> <li>Fair value</li> <li>Dealing with derivatives</li> </ul> <p>5. Basic option concepts</p> <ul> <li>Introduction</li> <li>Option pricing</li> <li>Option mechanics</li> </ul> <p>6. Interest rate derivatives — single settlement instruments</p> <ul> <li>Introduction</li> <li>Single settlement interest rate derivatives</li> <li>Financial futures contracts</li> <li>Forward rate agreements (FRAs)</li> <li>Interest rate options (IROs)</li> <li>Quiz</li> </ul> <p>7. Interest rate derivatives</p> <ul> <li>Introduction</li> <li>Interest rate caps and floors</li> <li>Interest rate collars</li> <li>Interest rate swaps</li> <li>Quiz</li> </ul> <p>8. Benchmarking in the OTC derivatives markets<br>Penny Davenport, Manging Director, Markit Document Exchange and Gavan Nolan, Vice President, Credit Research, Markit Group</p> <ul> <li>Financial benchmarking for derivatives</li> <li>Liquidity benchmarking for derivatives</li> <li>Operational risk measurements for derivatives</li> <li>Conclusion</li> </ul> <p>9. Currency derivatives</p> <ul> <li>Introduction</li> <li>Over the counter currency options</li> <li>Currency options: reduced premium strategies</li> <li>Simple exotic structures</li> <li>Currency swaps</li> <li>Exchange-traded instruments</li> <li>Quiz</li> </ul> <p>10. The impact of electronic trading on the FX Market<br>Ray McKenzie, Vice President, ICE</p> <ul> <li>The early years</li> <li>FX as part of a commodity portfolio</li> <li>First electronic dealing platforms</li> <li>Electronic market making</li> <li>Phases I and II</li> <li>Point and click vs algo traders</li> <li>The impact of the credit crisis on banks' FX trading</li> <li>Phase III</li> </ul> <p>11. Credit derivatives</p> <ul> <li>Introduction</li> <li>What is credit risk?</li> <li>Styles of trading</li> <li>The first deals</li> <li>Range of credit derivatives</li> <li>Credit default swaps</li> </ul> <p>12. Central clearing and the OTC market<br>Bill Hodgson, Founder and CEO, The OTC Space Ltd</p> <ul> <li>The basics</li> <li>Trade execution</li> <li>Risks and mitigation</li> <li>Getting trades into clearing</li> <li>The business case and benefits</li> <li>Predictions for market development</li> <li>Terminology</li> </ul> <p> 13. Equity derivatives</p> <ul> <li>Introduction</li> <li>Background</li> <li>Single stocks or equity indices?</li> <li>Stock index futures</li> <li>Stock index options</li> <li>Single stock options</li> <li>Equity index swaps</li> </ul> <p> 14. Commodity derivatives</p> <ul> <li>Introduction</li> <li>Exchange-traded energy derivatives</li> <li>Exchange-traded futures contracts</li> <li>Exchange-traded energy option contracts</li> <li>OTC or ‘off-exchange’ energy derivatives</li> <li>OTC option products</li> <li>OTC oil swaps</li> </ul>&lt;