Derivatives Bootcamp

Price: $1695   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:07/16/2019
  • Course Date:10/21/2019
  • Course Duration: 2 day
  • Level: Beginner
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual

Derivatives Bootcamp Overview

This intensive 2-day  course provides participants with an overview of the derivatives product types, including options, swaps, futures and forwards.  Underlying derivative asset classes examined will include equities, interest rate, credit, commodity, and foreign exchange. Core functions in the lifecycle of a derivatives transaction are considered, for both listed and OTC products.  After a thorough examination basic product characteristics, participants are provided with an overview of the industry infrastructure, including exchanges and clearing houses for listed derivative contracts.  For OTC contracts, both cleared and uncleared trade lifecycle functions are uncovered.   Operational risk and control are central themes, as well as anticipated changes in the future, such as the proposed clearing house for credit default swaps.

Course Objectives:

  • Understand the basic features of all the main derivative contract types, including options, swaps, futures, and forwards, based on equities, interest rates, credit, commodities, and FX
  • Appraise the motivation of both hedgers and speculators in the derivatives business, and the role played by derivatives dealers and inter-dealer brokers
  • Differentiate the key players in the derivatives markets such as broker/dealers, swap dealers, executing and clearing brokers, FCMs (Futures Commission Merchants), fund managers, institutions, financial and non-financial end-users, corporations, custodians and prime brokers
  • Distinguish the differences between OTC and Listed Derivatives trade processing
  • Identify the functional areas related to the lifecycle of a derivatives trade including trading, confirmation, trade matching and clearing and settlement
  • Review the purpose of collateral management
  • Assess how the derivatives l industry is regulated with respect to compliance and regulatory issues

Who should attend:

New Hires of the Derivatives Industry
Operations specialists for Broker/Dealers, FCMs, Custodians, Prime Brokers
Buyside Operations Specialists
Middle Office Personnel
Trade Support Staff
Technology professionals
Software Vendors
Regulatory Personnel
Audit Professionals
Operations Risk Managers

Section 1:  Overview of derivative markets

  • Size, scope and diversity of these markets
  • Market usage and participation for hedging, trading and asset allocation
  • Importance of linkage between listed and OTC derivative products
  • Regulatory picture and trends globally

Section 2: Introduction to Derivative Product Types

  • What is a forward?
    • Key characteristics and pricing
  • What is a future?
    • Key differences from a forward
    • Explanation of published volumes and interest
  • What is a Swap?
    • Key characteristics and cash flows
  • What is an option?
    • Key characteristics, differences, cash flows, and P&L profiles
    • Basics of options pricing, time value, intrinsic value, volatility

Section 3: Explanation and usage of derivative products by asset class

  • Interest Rate Derivatives
    • Interest rate futures (STIRS and government bond futures)
    • Interest Rate Swaps (basis, currency, constant maturity)
    • Forward Rate Agreements (FRA)
    • Interest Rate Options (including caps, floors, and collars)
  • Foreign exchange derivatives
    • Currency futures and options
    • FX and Currency swaps
    • Deliverable and Non-Deliverable (NDFs) Forwards
  • Energy and Commodity derivatives
    • Energy and Commodity futures and options
    • Energy and Commodity forwards swaps
  • Equity derivatives
    • Stock index futures
    • Equity swaps and contracts for differences (CFD)
    • Equity and stock index options
  • Credit derivatives
    • Credit Default Swaps (CDS); single name and index
    • Security Based Swaps

Section 4: Market structure and counterparty relationships

  • Role of derivative exchanges and clearing house
  • Exchange order execution and give-ups
  • Role of global clearing and execution brokers
  • Role of investment banks and inter-dealer brokers in OTC market
  • Central clearing of OTC derivatives

Section 5: Derivatives Documentation

  • Listed derivatives
    • Standard documentation and commercial terms between broker and client
    • Execution give-up agreements
  • OTC Derivatives
    • ISDA master agreements, schedules and definitions
    • Trade confirmations
    • Credit Support Annex (CSA)


Section 6: Life Cycle of a listed derivatives trade (clearing and settlement)

  • Trade Lifecycle
    • order, execution, confirmation, give-up, clearing, registration
  • Trade capture
    • Data input, data requirements and sources
  • Daily reconciliation and problem resolution
  • Margining
    • Initial and variation margining cash flows
    • Futures style margining options
    • Daily settlement components
  • Futures delivery and option exercise

Section 7: Lifecyle of an OTC derivatives trade (maintenance and settlement)

  • Trade Lifecycle
    • OTC Trading
    • Swap Execution Facilities (SEFs)
  • Confirmations and reconciliation
  • Role of Markit, DTCC, Markit (Swaps) Wire, Markit/SERV and eConfirm systems
  • Cleared and Uncleared Derivatives
  • Uncleared Margin Requirements (UMR)
  • Position maintenance
    • Payment settlement procedures
    • Early termination and novation
    • Mark-to-market valuation

Section 9:  Collateral Management

  • Overview of purpose and importance of collateral
  • Pre-trade negotiation process
    • Credit Support Documents
  • Collateral margin call procedures
  • Usage of collateral, eligibility, segregation
  • Managing portfolio reconciliation disputes

Importance of appropriate internal controls


  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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