Derivatives in Fund Management


This Two Day course is designed as an introduction to the Non-standardised and high value complex derivatives products and the relationship to and support from the standardised and liquid products employed in the Exchange Traded and OTC Markets:

• Session One - Structured Products – What they are, Why and How they are used.
• Session Two - Financial Futures and Liquidity.
• Session Three - Standardised and vanilla trades in the OTC Markets.
• Session Four – Value Chain Core processes, Risks and Control.

The course is designed to look at derivatives as employed in Fund Management.


To introduce and explain Derivatives products in a practical way that introduces the building blocks of their structures and how they relate to the more standardised trades in the volume liquidity strong markets.

The course provides a practical experience of the components of structured products employing OTC Derivatives. We review the risks in the products and underline the significance of the roles in the Risk Management, Legal, Finance, Compliance, Operations and Controlling functions through the Value Chain.

Practical exercises encourage participants to explore ways in which the risks can be managed and measured it also looks at how risks are interrelated and the systemic effect of risk mis-management. It also highlights the importance of an efficient processing function and how this impacts the profitability of a deal and the organisation.

We close the course by drawing out the market-wide systemic risk conclusions of the recent Crisis following the collapse of the Sub prime and CDO markets.


The participants will gain an insight into complex markets and the liquidity support required to provide effective risk management.

The four sessions combine to enable participants to clearly see that however complex transactions are that we need to break them down into components where the specialist controlling functions in the Value Chain can add value and confidence to the business innovators and initiators.

Participants will be able to use their knowledge to better understand the trading environment and how they can visualise the complete business model designed to identify and manage the risks. The trainers using anecdotal examples and by emphasising the importance of the processing groups the participants will realise the impact they can make on the profitability of their organisation.