Global Trader Simulation - 4 Day

In this intensive simulation, participants explore how treasurers use today's tools for measuring, reporting and managing treasury risks. Through a series of lectures, proficiency checks, case studies and the simulation, participants learn how to control interest rate and currency exposures in volatile markets, using a series of off-balance sheet hedging techniques.

Topics include: Evaluation, measurement, reporting and management of market risks; Effective hedging of currency and interest rate exposures using off balance sheet products; Developing and implementing successful trading strategies in volatile exchange and money markets; Solving typical treasury management problems arising from day-to-day operations

No sessions currently available. Contact client services to get the next available date.
Analysts and associates, traders, brokers, treasury professionals
No advance preparation required.
Students will be able to:
  • Improve treasury performance through development and implementation of flexible and focused trading strategies
  • Evaluate, measure and report interest and exchange rate risk using value at risk (VAR) techniques
  • Apply no-arbitrage pricing techniques to off balance sheet products
  • Analyze a series of treasury reports that capture market risk exposures
An understanding of the financial markets and products.
Day 1

Overview of Financial Markets in Liquid and Developing Markets

  • Identify key players and define their respective roles
  • Discuss current structure of major markets and product families
  • Review how economic fundamentals vs. economic events influence level and changes in financial market prices

Structure of Foreign Exchange Markets and Products

  • Understand meaning of currency quotations
  • Implement pricing methods and trending techniques
  • Discuss differences between market makers vs. price takers
  • Define arbitrage
  • Create reports that capture foreign exchange cash flows and report net exchange positions (NEP)
  • Break down mark-to-market process and calculations for reporting foreign exchange profits/losses

Structure of Money Markets and Products

  • Review simple vs. compound interest rate calculations
  • Discuss factors that effect shape and changes in yield curves
  • Define types and risks in money market gaps
  • Develop gapping strategies
  • Create reports that capture money market cash flows and money market gaps

Global Trader Simulation rules/regulations

    Trading Session

    • Demo of simulation software
    • Trading Day I

Day 2

Review Practice Day Trading Results Through Final Reports

  • On/off balance sheet accounts
  • Mark-to-market process and P/L calculation on NEP
  • Cost-to-close process and P/L calculation on money market gaps
  • Cumulative cash flow reports
  • Exchange and liquidity trading blotter

Cross Rates

  • Define cross rate trades
  • Cross rate calculations
  • Impact of cross rate trades on exchange and liquidity blotter

Trading Session

  • Trading Day II

Day 3

Foreign Exchange Forwards

  • Define forward foreign exchange contracts
  • Forward rate calculations
  • Fully hedged forward foreign exchange positions
  • Common value dates
  • P/L calculation on forward NEP
  • Impact of forward trades on exchange and liquidity blotter

Trading Session

  • Trading Day III

Day 4

FX swaps

  • Define FX swaps
  • Common FX swap tenors
  • Mechanics of FX swap trades
  • FX swap applications
  • Covered interest arbitrage
  • Quoting bid/offer swap rates
  • P/L calculation on FX swap positions
  • Impact of FX swap trades on exchange blotter and cash flow reports

Trading Session

  • Trading Day IV

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.