Aims of the Course:
The training course is designed to provide a thorough understanding of a range of OTC derivative products and the specific sequential steps in their processing. Extending the concepts relating to the product, the principles of collateral and of collateral management are described to a detailed level. Finally, the background to EMIR is explained, prior to describing trade reporting to trade repositories and the principles of centrally cleared as well as non centrally cleared trades.
The course provides a focus on factors enabling efficient operational processing by both buy-side and sell-side firms, the relationships between the various components, the risks at each step and the mitigating controls.
The course is designed to provide a thorough understanding of several of the most important existing and new aspects of OTC derivative operations. The course begins at an elementary level, but then multiple challenging concepts are introduced in rapid fashion, covering trades executed with (historic) bilateral counterparties and with (current) central counterparties.
The course takes a highly structured approach to explaining the background to each topic, the principal purpose of the associated tasks, the lifecycle of steps for successful task completion, the related risks and the mitigating controls. Throughout the course, delegates have numerous opportunities to prove their understanding of concepts through multiple exercises and simulations. The overriding aim is for each delegate to fully comprehend not only the overall picture, but also the component parts that form the overall picture, under the new regulatory regime for OTC derivatives.
Each topic will be expanded and explained to the delegates in a structured manner (via linked building blocks), developing their knowledge through diagrams, ‘live’ drawings and on-the-spot explanations. Active participation by the delegates is always encouraged, and as part of achieving this the course director will request the delegates to ask questions and to seek clarification of concepts throughout the course. Exercises or simulations will be introduced at frequent and appropriate points to enable delegates to prove their understanding of concepts.