Managing OTC Derivatives Clearing & Settlement

This program looks at the enormous change in the derivatives industry and covers the uses of the products as well as the operational issues in supporting the activity. The comprehensive agenda will enable delegates to gain a detailed understanding of the major issues in the use and support of derivatives, particularly the key issues for middle and back office, audit, compliance and risk as well being beneficial for assessing the technology requirements. Attend this intensive 2-day training course and learn to: Understand and be prepared for significant changes in market structure in the light of the new Dodd Frank and EMIR regulations of OTC and On Exchange derivatives Analyse and compare the structures and uses of the main derivative products Examine the role of the clearing house and the workflow in the middle and back office for both on and off exchange products Establish a risk control framework necessary for derivatives activity Assess the necessary technological requirements Re-engineering the entire post-trade execution process Who should attend? This course has been specifically designed for the benefit of: Clearing houses Prime Brokers and Derivative Clearing Brokers Back office and middle office teams Custodians Fund Administrators Technology teams Audit Compliance and Risk Management
Day 1 Session 1 Introduction Developments in the industry 2008 to the present day including new legislation for OTC derivatives transactions Structure of Derivative Products This session analyses the structure and uses of major products including a comparison between on and off exchange transactions Futures – index, single stock, bond, interest rate and currency Options – on and off exchange Swaps – interest rate, equity, currency, credit default swaps Swaps to futures Commodities – energy, agriculture, metals Role of the exchange Session 2 - Clearing and Settlement This session looks at the role of the clearing house/CCP and examines the workflow in the middle and back office for both on and off exchange products including settlement via a clearing house/CCP and direct with a counterparty Role of the clearing houses and trade repositories Settlement values including worked calculations Margin calls and collateral management Exercise, tender and assignment Managing positions and valuations Accounting entries Day 2 Session 3 – Operational Risk and Controls This session looks at the main areas of operational risk and illustrates the control structure necessary for derivatives activity including a comprehensive review of the regulatory changes that must be understood and complied with Regulation framework applicable to derivatives and their use Key and killer operational risks Critical reconciliation processes Establishing a control framework Wrap Up Workshop Challenges going forward and re-engineering the derivatives operations process Course summary and close