2020 Spring Workshops

CME Institute LIVE

Access CME Institute Live through our new online financial futures course

Why institutional traders should consider financial futures in their toolbox

Money managers are always on the hunt for new ways to generate alpha and navigate market moves in the 24-hour news cycle. Costs of uncleared margin rules have prompted many institutions to explore shifting vanilla exposures to listed FX options and Equity Index total return and dividend futures. Regulatory and investor demand for environmental, social and governance (ESG) investments is increasing.  And portfolio managers must juggle new risks, new technologies and pressure to find more efficiencies in capital-constrained markets.  

To be successful, you need a comprehensive toolbox of the right products, innovative strategies and a forward-thinking mind ready to learn.

The new CME Institute Live course reviews how to use benchmark CME Group Interest Rate, Equity Index and FX derivatives to address modern market challenges. Discover new ways to reduce existing and new margin requirements, free up credit lines, increase capital efficiencies and maximize your risk/return.

Intended Audience: Portfolio managers, research, trading and client facing professionals from pensions, asset management, and insurance firms as well as sell-side professionals from banks, broker-dealers and futures brokerage firms.


What you’ll learn

The CME Institute Live Course provides in-depth introduction to our benchmark Interest Rate, Equity Index and FX futures and options contracts, reviewing important contract details, pricing quotations, settlement and trading mechanics. "Day 1" lessons cover an introduction to options, including an overview of options terms, put/call parity, and the “Greeks.”

"Day 2" lessons dive into practical applications of exchange-traded derivatives (ETDs) as effective trading and risk management tools. Learn how to analyze the price of futures versus cash markets, and how to evaluate ETDs as an effective tool for your portfolio. Discover the best trading strategies using options for each of the asset classes, including FX, U.S. Treasury, STIRs, and Equity Index products. We also cover environmental, social, and governance (ESG) investments, as well as total return and dividends.

Key Topics by Asset Class:

Interest Rate

  • Deconstructing pricing between US Treasury futures and Treasury cash securities
  • Determining proper hedge ratios for individual securities and portfolios using UST futures
  • Constructing inter-commodity spreads (ICS) in UST futures to manage/trade yield curve risk
  • Analyzing Eurodollar futures convexity bias to the Interest Rate swaps market
  • Evaluating and selecting shorter maturity ICS to trade or manage credit exposure

Equity Index

  • Comparing Equity Index futures vs equivalent ETFs and swaps in total cost analysis and relative value terms
  • Measuring the capital needed for futures vs other equity index beta replication products
  • Executing cash equitization, portable alpha, and sector rotation strategies with futures

FX Futures

  • Calculating the fair value of an FX futures contract
  • Applying FX futures as an overlay for exchange rate risk
  • Analyzing FX futures correlation to other asset classes
  • How capital usage differs for ETD and OTC under Uncleared Margin Rules (UMR)
  • Bridging OTC spot FX and FX futures using CME FX Link

Ready to start your online financial futures course?

Click below to start getting acquainted with financial futures and options from CME Group and the various ways institutions use these contracts today to address market challenges.


Day 1 │ Introduction to Financial futures and options

Welcome│Introduction to CME Group
  • Market balance, liquidity, role of exchanges
  • CME Group history and development
  • Global Command Center and clearing house risk management
  • Margins, collateral, regulatory oversight
Introduction to FX futures
  • Size and scope of FX
  • Quote conventions, futures pricing, mechanics
  • FX basis, convergence, carry
Introduction to Equity Index futures
  • Indexing/benchmarks
  • Pricing mechanics
  • Carry, dividend income
  • CAPM review, beta, alpha
  • Beta replication, beta adjustment
Introduction to Interest Rate futures
US Treasury foundations
  • Delivery process, pricing mechanics
  • Basis, carry-repo, net basis
  • Cheapest to deliver (CTD), measuring risk
Short-term interest rate (STIRs) basics
  • Contracts, design and specs
  • Fed Funds and FedWatch
  • Convexity bias
  • Eurodollar packs, bundles, and strips
Introduction to options
  • Options as a strategic tool
  • Options terms
  • Risk/reward structure
  • Pricing/ ”Greeks”

Day 2 │ Practical applications – Financial futures and options

FX futures and options applications
  • Non-correlated assets
  • Overlays
  • CME FX Link
  • Emerging market currencies and NDFs
  • UMR
  • FX options: Bull-bear strategies
  • EBS market and prime credit
Equity Index strategies Part I
  • Cash equitization
  • Portable alpha
  • Index spreads
  • BTIC and TACO transactions
Equity Index strategies Part II
  • Total Return, dividends, and ESG futures
  • Select Sector futures
  • Equity options: Volatility spreads
  • Futures vs. ETFs

Interest Rates: STIRs applications

  • Hedging rate exposure and synthetic investments
  • Pricing/hedging IR swaps
  • Calendar spreads and butterflies
  • Intercommodity spreads: FF-ED and FF-SR
Eurodollar options: Butterflies and condors

US Treasury futures and options applications

  • Basic trading
  • Invoice spreads
  • Duration adjustments
  • Yield curve
  • Option overlay

CME Institute has registered this program with GARP for Continuing Professional Development (CPD) credits. Attending this program qualifies for 12 credit hours. If you are a Certified ERP® or FRM®, please record this activity in your Credit Tracker.

About the Educator


David Gibbs

Director of Education at CME Group

David Gibbs is a futures market professional with more than 35 years of industry experience. Beginning in the open-outcry pits of the Chicago futures exchanges, David has held leadership positions with global futures commission merchants and actively traded financial futures, options, and cash-market products for both buy-side and sell-side firms. He is an expert in the pricing mechanism for derivatives, including financial futures and their underlying products.