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Demystifying Derivative Instruments

26 Oct 2017 09:30 - 16:30
Cordium UK offices
Norfolk House, 31 St James’s Square, London, SW1Y 4JJ
Training & Workshops, Investment & Securities
Investor Relations, Securities & Investment, Wealth Management, Banking

If you would like to discuss your training requirements in more detail, please contact Graham Dix on 020 3141 9546 or your usual Cordium consultant.


Course Background:

Data security and protection are now at the forefront of the fight to prevent both fraud and regulatory censure for lax controls over customer data. Latest statistics indicate that UK business is facing an annual £98.6 billion fraud bill. Instances of white collar crime are on the rise, evidenced by the huge rise in cybercrime and cyber-enabled fraud. Seven out of ten frauds involve some kind of technology. Prosecutions have trebled over the last three years, with a 200% increase in the number charged with “cyber” offences.

Course Overview:

This course is designed to give real insight into the “post crisis” use of Derivatives and the role they play in the management of portfolios at Asset Managers and Hedge Funds alike. It is now essential to have a good understanding of how these products work. This course will allow you to understand how they are used by Managers and how the fast changing Regulatory Environment they operate in, is affecting them.

Course Objectives

To enable delegates to:

  • Learn about the major differences between how derivatives are traded on Exchange and OTC
  • Learn who uses derivatives and what are their strategies
  • Gain an understanding of how OTC markets operate and the major changes that have taken place since the financial crisis
  • Understand how major OTC products operate, such as CDS, IRS and Options
  • Knowledge of Counterparty Risk, the regulatory environment
  • Learn about the use of Netting at CCPs and Collateral Agreements to manage credit risk

Key Topics:

  • How Financial Exchange Traded Contracts work
  • Examples derivatives used for Hedging and Leveraging
  • Life Cycle of and ETD trade, including margining, clearing brokers and give up’s
  • How IRSs work… Master Agreements, Discounting and how to price a swap
  • The value of a swap … PV01
  • CDSs explained including coupons and up front fees
  • Credit Indices such as Itraxx
  • Examples of why fund managers use OTC Options
  • Counterparty Credit Risk explained. We look at the sue of collateral through CSA Agreements, CCP Netting and gain a basic understanding of CVA (Credit Value Adjustments)

Course aimed at: Anyone interested in how Derivatives are used by Fund Managers in the post crisis markets.

This course can also be delivered as an onsite course or as an instructor lead course at a firm’s office.


6 Hours
Cordium - Education and Training
130 Jermyn Street, London, SW1Y 4UR, United Kingdom.

Tel: +44 (0) 20 7691 9722
Contact: Graham Dix. Manager Training Solutions