| Price | £1,950.00 + VAT | ||||
|---|---|---|---|---|---|
| Duration | 2 days | ||||
| Location | London | ||||
| Available Dates |
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From Financial Service providers, Investment Banks, Brokerage Firms, Energy Companies, Energy Hedge Funds, Exchanges, Regulators, Consultancies and Solution Providers:
DAY 1
- Oil, natural gas, coal, electricity
o Where energy sources come from
o Reserves, supply and consumption
o Getting energy from source to customer
- Characteristics of different markets
o What makes a - good - market
- Market Drivers
o Fundamental, Geopolitical, Technicals
- How markets work and behave
EXERCISE - Arbitrage
- Related Markets: Freight, Emissions
- Markets driving industry direction
EXERCISE - Emissions
- Pricing Physical Commodities
- Specific v Generic Trading
- Operations
- Physical, forwards, futures, swaps, options
o Relationship between physical and derivative
- Derivatives
o How they work
o Why different markets trade different instruments
- Options
EXERCISE - Options: Value of Probability
o Physical/Real options
DAY 2
- Long and Short
o Exposure diagrams
o Basis vs Outright risk
- Hedging physical positions with different instruments
EXERCISE - Using Exposure Diagrams
- Pricing Models - Commodities cf FX/IR
- Applications
o Commodity Options
o Trading Risk - Value-at-Risk (VaR)
o Credit Risk
- The roles and strategies of different participants
o Supply balancers - producers, integrated refiners
o Asset traders - refiners, storage, arbitrage
CASE STUDY I - Refinery Economics
o Traders and banks, Investors and speculators
CASE STUDY II - Refinery Margin Hedging
o Power and gas - balancing
o Corporates - hedgers
- Measuring and managing risks
o Portfolio VaR, Stress-testing, Historical v Monte Carlo
o Other Risks in Commodity Trading
CASE STUDY - Ashanti Gold
- Regulation
- Risk control framework
o Authority and responsibility
CASE STUDY - Barings Bank