This one-day course takes you "behind the scenes" to explore how brokers and investors on the buy-side and sell-side of the industry perform these functions for both listed and OTC derivatives. Participants will explore the functional building blocks of middle and back office operations that support trade lifecycle activity, from the inception of an order or request for quote (RFQ) through clearance and settlement of payments. The infrastructure or "plumbing" that links together these functions, and the points of failure representing operational risk will be highlighted throughout the program. Particular attention is paid to the lifecycle of both a cleared and uncleared swap.
After the course you will be able to:
• Analyze the functional building blocks of the trade lifecycle of a derivatives trade for account set-up, client on-boarding, master agreements, confirmation, clearing and settlement, and collateral management
• Identify the participants and their roles, including the investment managers, end-users, swap dealers, FCM's, interdealer brokers, exchanges and SEF's (Swap Execution Facilities), clearing houses and CCP systems, custodians and prime brokers
• Explain the links and plumbing that connect industry participants in the trade lifecycle, including standards and protocols and books and records systems
• Distinguish the role of clearinghouses and CCP systems
• Analyze the collateral management process in mitigating counterparty credit risk
• Understand protections in place for customer collateral and assets
• Be able to explain why novations are done and how they are processed
• Consider throughout the program, the impact of industry regulatory changes, such as Dodd Frank regulation on derivative trade processing
Class Size: Registration is limited to approximately 15 participants to promote student participation and interaction.
Who Should Attend: Anyone who is interested in learning about the front-to-back functions of the trade lifecycle for listed and OTC derivative trades, from the inception of an order through clearing and settlement. Content is focused on middle- and back-office operations. Attendees include operations, technology, audit, legal and compliance staff, as well as, third-party vendors and regulatory personnel.
Level: Basic/Intermediate. A prior understanding of derivatives is helpful.
Cost: New York, Chicago and Washington DC $695 Early-bird rate ends 4 weeks prior to course date | $750 Standard registration
Complimentary refreshments are provided. Lunch on own.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.