Basic Program on Derivatives

Program

This program is designed to provide the participants with knowledge about the basic functioning of derivatives markets, the features of various products, the classification of products, the regulatory framework and the margining mechanism.

Day 1
1. FORWARDS & FUTURES 2. SHORT-TERM FINANCIAL FUTURES
Standardized versus customized contracts Forward rate agreements (FRA's)
Margin & daily settlement Value of a basis point in FRA's
Clearing firms Eurodollar futures
End users & producers Value of a basis point in ED Futures
Speculators & arbitrageurs FRA’s vs. ED Futures
How market participants use futures
3. LONG-TERM FINANCIAL FUTURES 4. HEDGE ACCOUNTING FOR FORWARDS AND FUTURES
Treasury bond futures Fair value and cash flow hedges
Basket deliverable futures Basis and hedge ineffectiveness
Conversion factors
Cheapest-to-Deliver

Day 2
5. SWAP FUNDAMENTALS 6. INTEREST RATE SWAPS: THE BASICS
Swaps as portfolios of forward contracts Essential fixed income arithmetic
Example: Commodity swaps Value of a floating rate note
Physical vs. cash settlement Par coupon rates
Market value of a swap Vanilla interest rate swaps
Swap curves (term structures) and spreads
7. RISK MANAGEMENT
Types of risks Separation of trading, settlement
Risk identification and measurement Internal control structure and Management Information System
Methods of risk control (Position limits, VAR, Margins, Operating Procedures and systems etc)

Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.

Brokers and Sub- Brokers, Dealers & Traders, Investors & High Net worth Investors, Bankers, Students.

2 days
10.00 am to 5.30 pm

Rs. 7,000.00 + Applicable Taxes per participant inclusive of tuition fees, and (morning / evening) refreshments only.

For further details regarding contents,
E-mail: training@bseindia.com