Commodity Derivatives

MAPS - Market and Product Summary

  • Market History and Development of the Markets and Exchanges
  • The contracts and Financial Trade Types – What are they?
  • Oil Swaps – Fixed/Floating; Fixed/LIBOR
  • Heating Oil Swaps & Futures
  • Crack Spreads
  • Natural Gas
  • Jet Fuel
  • Metals
  • Softs
  • Emissions
  • Freight
  • Market participants and Roles
  • Outline of TRACE, USE, and OPS
  • Utilities and service providers
  • Mainstream systems employed
  • Future Market Developments

TRACE - Trade Risks & Contract Economics

  • Reviewing the trade types, their economic attributes and how they work.
  • Examining the Market Risk, Liquidity and Leverage factors
  • Discussing the Credit Risk implications

USE - Understanding Strategies Employed

  • How they are used and the strategies
  • The different counterparties using the products
  • Examining the performance as investments or hedges.

OPS - Operational Processes

  • Review of the Transactional Life Cycle
  • Trade Capture, Confirmation, Documentation
  • Settlements, Pricing and Valuation.
  • Operational Risk and Controls