Course Code: 817

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Charlotte Scott

CPE Credits: 7

Prerequisite: No Prerequisite Required

This one-day course provides an introduction to the basic forms of swaps and their associated processing lifecycles. Participants will explore product characteristics of Interest Rate, Credit Default, Currency and Equity swaps. Motivations for market participants, including swap banks, institutional investors, hedge funds and interdealer brokers, will be examined.

With this basic product information, the program will walk attendees through functional building blocks of middle and back office operations in the lifecycle of a swap, from the term sheet through settlement. Area of risk and exposure will be addressed throughout the program, along with counterparty risk and collateral management.

Topics covered include:

• Overview of the swap market
• Characteristics of Interest Rate, Credit Default, Currency and Equity Swaps
• Role of the sales and trading desks: how deals originate and contract details
• Counterparty risk
• Price dissemination
• Collateral management
• How swap deals are confirmed
• ISDA agreements and documentation
• The evolving infrastructure of the industry
• Deployment of 3rd party solutions such as DTCC's DerivServ and their place in the lifecycle
• Novations and how they are confirmed
• Clearing House alternatives
• Calculation, advice, and settlement of payments
• Issues for operations

After completing this seminar, participants should:

• Understand the basic characteristics of interest rate, equity, cross-currency, commodity and credit default swaps
• Discover the roles and motivations of industry participants who use swaps
• Analyze the functional building blocks of swap deals, from execution, through confirmation and settlement
• Appreciate the role of collateral management in mitigating counterparty credit risk
• Be able to explain why novations are used and how they are processed
• Consider the impact of Dodd-Frank regulation on swap processing, with the use of SEF's (Swap Execution Facilities) and Clearing Houses