Course Code: 801

Duration: 1 day

Level: Basic

Fee: $795.00

CPE Credits: 7

Prerequisite: No Prerequisite Required.

Participants will learn about the various derivative instruments to better appreciate and handle operations and clearance procedures, issues and problems. Participants need not have any background in derivative products, but should be familiar with the more traditional products and securities processing.

Understanding Interest Rate and Foreign Currency Risk

•  The Yield Curve
•  Implied Forward Rates
•  Maturity and Credit Segmentation
•  Foreign Exchange Relationships
•  Arbitrage Opportunities

Analysis of Forwards and Futures

•  Credit Risk, Market Mechanics
•  Forward Rate Agreements
•  Options and Related Derivatives Products
•  Calls, Puts
•  Floors, Caps

Introduction to Interest Rate Swaps

•  Origin and Growth of the Market
•  Swap Market Operations
•  Role of the International Swap Dealers Association (ISDA)

Collateral Required for Derivatives & Related Agreements

•  Margin Accounts for ERISA Accounts
•  Responsibility of the Custodian/Trustee
•  Brokerage Customer Agreements
•  Regulation T
•  Escrow Receipts
•  Guarantee Letters
•  Other Types of Collateral

Dealer Consideration and Swap Book Management

•  Termination Values
•  Understanding Credit Risks
•  Dealer Documentation & Convention
•  Accounting Issues
•  Market Data, Pricing, Risks