Global Financial Markets Institute»Lifecycle of a Trade– Derivatives

Lifecycle of a Trade– Derivatives

This one-day program provides an introduction to the lifecycle of both listed and OTC Derivative trades. 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. Areas of operational risk and exposure will be highlighted throughout the program. The program content includes an introduction to the basic product characteristics of derivative contract types.

Course Objectives

By the end of the course, participants will be able to:

  • Understand the basics of derivative products: Forwards, Futures, Options and Swaps
  • Analyze the functional building blocks of the trade lifecycle of a derivatives trade
  • Identify the participants and their roles, including the customers, bank broker/dealer, interdealer broker, exchanges and SEF’s (Swap Execution Facilities), clearing houses, custodians and prime brokers
  • Distinguish the role of Clearing Houses and the margin process
  • Evaluate collateral management processing
  • Be able to explain why novations are done and how they are processed
  • Consider the impact of industry regulatory changes, such as Dodd-Frank regulation on derivative trade processing

Suggested Prerequisites:

  • Fundamentals of the Capitals Markets / Securities Industry or equivalent knowledge

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7