Derivative Product Transaction Processing

This one-day program focuses on the processing of transactions emanating from the fast growing derivative market. Among the products discussed are: Over The Counter Options, Currency Forwards, Interest Rate Swaps, Swaptions and Credit Default Swaps. The program takes the participant from the time the trade is made until it is settled. Along the way, terminology and forms unique to these products will be explained as to content and purpose. As these derivatives use different underlying products, the properties of those products themselves are delved into, including the application of margin and delivery processes.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
7.0
Back office operational personnel; System developers; Regulatory personnel; Industry service organizations personnel
No advance preparation required.
Students will be able to:
  • Be conversant in the terminologies germane to these products
  • Be able to distinguish the differences between listed and over-the-counter traded products
  • Demonstrate an understanding of the different margin applications through hands-on exercises
  • Display comprehension of processes through interaction with the instructor and other participants
  • Appreciate the importance of timely and accurate processing and understand the high cost of mistakes and erroneous data
Brokerage Operations or Fundamentals of the Security Industry
"The instructor was experienced and knowledgeable."
"Good overview of derivatives processing."
"The instructor possessed vast industry knowledge and experience."
Derivative Processing
Derivatives to be Discussed
  • Listed Options
  • Over-the-Counter Options
  • Futures
  • Forwards
  • Interest Rate Swaps
  • Swaptions
  • Interest Rate Caps
  • Collars
  • FRA's
  • Credit Default Swaps

Method of Trading

  • Exchange Market Places
  • Negotiated - Bi-lateral Negotiations
  • Pricing Vendors

Master Agreements

  • Understanding Terminology
  • Contents
  • Provisions
  • Workings of the ISDA

Figuration

  • Face Value
  • Notional Amount
  • Interest Calculations
  • Settlement Money

Customer Confirmation

  • Systematized
  • Electronic / Paper

Comparison and Settlement

  • Workings of the Clearing Banks
  • Workings of the Clearing Corporations
  • Workings of the Depositories
  • DTCC's DerivSERV Processing
  • Eurex
  • Fedwire
  • SWIFT

Client Record Keeping

  • Margin
  • SPAN Margin
  • Account Maintenance

Books and Records

  • Transaction Recording
  • Use of Sub Ledgers
  • Requirements under 1934 Act 17a-3, 17a-4

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.