2016 Simulation Training Courses

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2016

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ABOUT THE BIBF DEALING ROOM

The BIBF Dealing Room is the first of its kind in the MENA region, and powers technology-enabled experiential learning, allowing students to learn about trading stocks and bonds in a real market environment. The state-of-the art facility has over 20 trading stations with fully-equipped multimedia and market tools such as Bloomberg and Thomson Reuters Eikon.

In order to provide cutting-edge training expertise and technology, BIBF has partnered with specialist training and technology providers in the UK and US. Our partners have a successful track record of providing training to bulge bracket global banks, including JPMorgan, Citigroup, HSBC, Morgan Stanley, Barclays Capital and Deutsche Bank.

A comprehensive range of courses are offered, covering subjects of interest to professionals in the financial sector across Treasury, Investments, Capital Markets and Risk Management.

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DEALING ROOM SIMULATION

TRAINING

TRADING, MARKET MAKING & PORTFOLIO MANAGEMENT

This unique five-day module is designed to give participants a practical front desk experience on both the buy side and sell side of the financial industry. The course is delivered utilising trading terminals and cutting-edge technology, including live and simulated markets.

The first three days will be dedicated to trading and managing risk in live market conditions and across multiple asset classes as candidates develop detailed understanding of contemporary price drivers, technical analysis and the dynamic interdependencies of asset price correlations.

For the last two days, candidates will manage client deal flow from the objective of a sell-side bank as they act as market makers and maximise commission whilst maintaining a low exposure to risk.

This programme takes place on a dedicated trading floor, allowing candidates to apply theory at their own trading desks, in live and simulated market environments.

Learning Outcomes

Upon successful completion of this practical course, participants will be able to:

• Understand through direct experience the objectives of an investment bank (sell side) trader in comparison to one of a buy side institution.

• Understand the concept of market making and the difference between order driven and quote driven prices

• Learn through practical application the key concepts of risk management as you manage positions in uncertain market environments

• Gain first-hand experience in the importance of behavioural finance and trading psychology within an environment of uncertainty and risk

• Receive live mentoring support and advice from experienced traders at Amplify Trading based in London as they continuously monitor your trading and market making performance throughout the course

• Understand the difference between order driven and quote driven prices

• Receive trading reports breaking down their performance and providing feedback regarding their individual trading and market making skills, and coaching on areas for improvement

Target Audience

This programme is beneficial to individuals working in the following roles: • Dealers

• Proprietary traders • Treasury sales

• Treasury (back and middle office) • Investment analysts

• Portfolio managers • Risk managers and analysts • Legal and compliance officers

Prerequisites

None

Course Facts

Duration 5 Days Dates 13-17 Mar Lecturers Guest Lecturers

Fees: Member Organisations

GCC Nationals BHD 900 Other Nationalities BHD 950

Fees: Non-Member Organisations

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INTRODUCTION TO TREASURY MANAGEMENT

This programme provides delegates with a solid understanding of how the financial markets work and the key products that are traded. It covers the major cash market products and explains their key features, together with how they are priced, and how they are traded and used by both institutions and customers.

Each day begins with a class discussion of the current news stories; this reinforces the need for delegates to become news aware.

Delegates are then broken into small groups that need to take trading positions within stated position limits across six markets using real market prices. The positions are marked-to-market and groups are able to change their positions during each analysis session. A leader-board ranks the team’s performances and the winning team is one with the highest profit at the end of the programme.

Delegates will take part in a number of trading simulations using the Capital Market Simulator (CMS). These fast-paced market simulations allow delegates to experience the high pressure of real trading and volatile markets in a tightly controlled environment.Each delegate needs to manage their own positions, make prices and react to market news whilst trying to make money in an exciting and competitive environment. For many participants this is often their first exposure to trading and delegates find the experience highly engaging and enjoyable.

• Understand the terminology used and key features of the major products traded in the global financial markets • Identify the key factors that influence market prices

• Appreciate how different market participants are motivated by different factors

• Experience the pressure and excitement of trading and decision making through engaging simulations and trading games • Become familiar with the key features and uses of the major cash products traded in global financial markets

• Learn what factors influence market prices • Understand what motivates clients to deal

Target Audience

This programme is designed to provide the knowledge and skills required to work successfully in the Treasury department or other departments that interact with Treasury. The target audience includes new hires, junior traders, risk managers and treasury operations and finance staff.

Prerequisites

None

Course Facts

Duration 4 Days Dates 11-13 Oct Lecturers Guest Lecturers

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GLOBAL INVESTMENT PORTFOLIO CONSTRUCTION AND MANAGEMENT

During this practical 3-day course, candidates will be guided through the process of portfolio construction looking at global asset allocation across multiple asset classes by assessing current global macro conditions, sector analysis based on the business cycle as well as covering portfolio risk and performance analysis.

Candidates will be asked to form small teams and operate as competing portfolio management teams. Each group will construct their own multi asset investment portfolios (including equities, bonds, commodities and FX), implemented through sophisticated software on a bespoke simulation-based investment platform in the BIBF Dealing Room.

• Work as a fund management team to determine an investment strategy and implement this by constructing a real-life investment portfolio by executing trades through an investment bank, using cutting-edge trading simulation software • Learn how to adjust investment strategies in response to live news flow and changing market conditions

• Learn how industry professionals construct balanced investment portfolios breaking the process down into the following areas:

o Asset allocation o Sector & stock selection o Portfolio risk management

o Portfolio performance measurement

• Learn about the current global macro-economic factors driving today’s global markets

• Learn the difference between the Macro approach and the Micro approach to portfolio construction • Learn how equity sector performance changes with the economic and business cycle

• Learn how to measure portfolio performance and risk

Target Audience

This programme is designed to deliver an insight into the front office investment process of constructing and managing portfolios. It is relevant to:

• Investment analysts • Portfolio managers • Risk managers and analysts • Dealers

• Traders • Treasury sales

• Treasury (back and middle office)

Prerequisites

None

Course Facts

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FIXED INCOME TRADING & PORTFOLIO MANAGEMENT

The two-day programme will explore the main topics of Sovereign and corporate debt markets and how fixed income products are structured and traded. The course will also focus on exploring yield curve movement based on the business and monetary policy cycles and how to trade and position fixed income portfolios in various market environments.

The practical elements of the programme will include candidates operating their own fixed income trading accounts using institutional level trading software.

On the first day, candidates will trade on-exchange government debt futures over different durations in live market price action at their own trading stations. They will also receive feedback on their performance and coaching to improve their trading discipline.

On the second day, candidates will form into teams and build fixed income portfolios using Flowtrader, a sophisticated simulation-based software platform, which will allow them to manage their own fixed income portfolios in environments with varying monetary policy.

Portfolio performance is then measured over a 12-month period of historical price data using the software’s sophisticated trade analytics package.

• Understand how the yield curve changes shape with the business and monetary policy cycles and how to trade this shift in their own fixed income portfolios, via simulation software

• Understand how monetary policy affects different points on the yield curve and fixed income investment portfolios • Directly understand how fixed income products are traded over the counter, via interdealer brokers and also on-exchange by using cutting edge trading technology to operate directly within the fixed income markets during the practical sessions of the course

Target Audience

This programme is designed to provide practical, core fixed income trading and portfolio management skills. It is relevant to:

• Investment analysts • Portfolio managers • Risk managers and analysts • Dealers

• Traders • Treasury sales

• Treasury (back and middle office)

Prerequisites

None

Course Facts

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INTRODUCTION TO TRADING AND INVESTING IN FIXED INCOME

This intensive 4-day course is designed to provide delegates with a high-level understanding of interest rate markets and the associated derivative markets. By participating in the course, delegates gain a deeper understanding of the global Fixed Income Markets.

REAL MARKET NEWS TRADING GAME (RNTS): Each day begins with a class discussion of the current news stories; this reinforces the need for delegates to become news aware.

Delegates are then broken into small groups that need to take trading positions within stated position limits across six markets using real market prices. The positions are marked-to-market and groups are able to change their positions during each analysis session. A leader-board ranks the team’s performances and the winning team is one with the highest profit at the end of the programme

TRADING SIMULATIONS (FITS): Delegates take part in trading simulations using the Fixed Income Trading Simulator (FITS). These fast-paced market simulations allow delegates to experience the high pressure of trading and volatile markets in a tightly controlled environment.

Each delegate needs to manage their own positions, make prices, and react to market news while trying to make money in an exciting and competitive forex environment. For some participants this is often their first exposure to trading, and delegates find the experience highly engaging and enjoyable.

ONLINE LEARNING TOOL (OSA): Delegates take part in using the Option Strategy Analyser (OSA). This online tool will provide delegates the opportunity to create and structure Options for a better understanding of how to use them in the Fixed Income marketplace.

• Get a clear understanding of the key cash and derivative products traded in the money market

• Appreciate the structure and pricing of the major cash and derivative products traded in the fixed income markets • Identify the different types of risk management and trading analysis undertaken by market participants and understand their data needs

• Describe the key data inputs used by option traders to price options and manage the risks on their positions • Understand the terminology used in the credit trading market and be able to identify the types of trades that are established, together with the information needed to assess them

• Identify the key information that moves market prices and what information and data participants need

• Understand the key terminology, phrases and acronyms used in the money market, fixed income market and credit market

• Become familiar with the major products traded, how they are used and the trade strategies market participants employ

Target Audience

This course is targeted at the following employees of Commercial Banks, Central Banks, Investment Banks, Asset

Management firms’ representatives, Pension Funds, Hedge Funds, Leasing companies, Insurance companies, Fund Managers, and other financial institutions:

• Fixed Income Traders

• Those who support Fixed Income Traders • Financial Officers • Risk Officers • Internal Auditors • Investment Analyst • Portfolio Manager Prerequisites

Those interested in attending this course should have a foundational understanding of Fixed Income Markets. There are no pre-requisite courses.

Course Facts

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RISK MANAGEMENT OF INVESTMENT & TREASURY PORTFOLIOS

This intensive 3-day course explores a large number of trading and portfolio analytics at different stages. Participants will gain a deeper understanding of how these analytics relate to risk, and will also create an environment where this function is perceived as a value added proposition, increasing the strength and profitability of the organization.

Delegates take part in trading simulations using the Risk Management Simulator (RMS) playing the roles of both traders and risk managers.

These fast-paced market simulations allow delegates to experience the high pressure of trading and managing risk in volatile markets, in a well-controlled environment.

Each delegate needs to manage their own positions, make prices, and react to market news while trying to manage risk and be profitable in an exciting and competitive environment. Delegates will take turns in playing risk management and trading roles to provide valuable perspective and bridge the gap between functions across financial institutions.

REAL MARKET NEWS TRADING GAME (RNTS): Each day begins with a class discussion of the current news stories; this reinforces the need for delegates to become news aware. Delegates are then broken into small groups that need to take trading positions within stated position limits across six markets using real market prices.

The positions are marked-to-market and groups are able to change their positions during each analysis session.

A leader-board ranks the team’s performances and the winning team is one with the highest risk-adjusted profit at the end of the programme.

• Learn about the most effective strategies for managing risk in Investment & Treasury portfolios • Understand specific risks in financial institutions and their impact on operational efficiency • Explore risk in the context of Basel II, III and beyond

• Assess the risk culture and appetite

• Place different types of risk within the broader context of enterprise risk management and corporate governance structures

• Understand the challenges of contingency planning for Black Swan events

Target Audience

• Financial Officers • Risk Officers • Internal Auditors

• Operational Risk Managers • Investment Analysts • Portfolio Managers

• Staff with roles and responsibilities in risk management departments, businesses and central departments

Prerequisites

This is an Intermediate level course. Those interested in attending should have a foundational understanding of Risk Management principles and concepts.

There are no pre-requisite courses.

Course Facts

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ADVANCED RISK MANAGEMENT OF INVESTMENT AND TREASURY PORTFOLIOS

This advanced, 2-day course is set in a capstone framework. The concentration is on applications of risk management principles and concepts used in creating risk management plans. Delegates then execute these plans in a simulated market environment.

This course “bridges the gap” between theory and practice by offering delegates the opportunity to use their knowledge and skills in an engaging and high-pressure environment. The curriculum and activities require the delegates to integrate the foundational and advanced materials they have learned in prior courses, with hands-on trading and risk management. By participating in this course, delegates gain a deeper and practical understanding of how risk management enhances the profitability and structural strength of financial institutions.

REAL MARKET NEWS TRADING GAME (RNTS): Each day begins with a class discussion of the current news stories; this reinforces the need for delegates to become news aware.

Delegates are then broken into small groups that need to take trading positions within stated position limits across six markets using real market prices. The positions are marked-to-market and groups are able to change their positions during each analysis session.

A leader-board ranks the team’s performances and the winning team is one with the highest risk-adjusted profit at the end of the programme.

Delegates take part in trading simulations using the Risk Management Simulator (RMS) playing the roles of both traders and risk managers. These fast-paced market simulations allow delegates to experience the high pressure of trading and managing risk in volatile markets in a tightly controlled environment.

Each delegate needs to manage their own positions, make prices, and react to market news while trying to manage risk and be profitable in an exciting and competitive environment. Delegates will take turns in playing risk management and trading roles to provide valuable perspective and bridge the gap between functions across financial institutions.

Upon successful completion of this practical course, participants will be able to: • Design effective hedging strategies and other risk management approaches • Understand the various types of risk, and limits to hedging strategies

• Learn the practical means to identify what type of risk mitigations are possible

Target Audience

• Financial Officers • Risk Officers • Internal Auditors

• Operational Risk Managers • Portfolio Managers and Analysts

Prerequisites

Those interested in attending this course should have an in-depth understanding of Risk Management. Ideally, they should have attended the 3-day “Risk Management of Investment & Treasury Portfolios” programme.

Course Facts

Duration 2 Days Dates 21-22 Sep Lecturers Guest Lecturers

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ASSET & LIABILITY MANAGEMENT - SIMULATION COURSE

This programme is designed for bank personnel involved in the Asset & Liability Management (ALM) Process. Through the use of an Asset & Liability Management simulation programme, this training programme is an intensive and practical learning experience. In combination with the classical training approach covering key areas of theory, actual and best-practice issues are discussed and explored in a very interactive environment. The training programme provides participants with a comprehensive understanding and overview of the Asset & Liability Management (ALM) function and processes within a full-services bank.

During the practical part of the programme, an online ALM simulation programme, called GuardB@nk3 is used. GuardB@ nk3 represents a full-services bank operating within a competitive banking environment.

In order to prepare themselves for the practical part of the programme, participants receive a User Manual and an initial set of Financial Statements. The pre-reading documents are sent via email to participants two weeks prior to the commencement of the training programme.

At the start of the programme participants are divided into “Management Teams”. As in the real world, banks compete against one another. The teams have to price loans and deposits and make marketing and strategic decisions.

Furthermore, they have to manage a portfolio of loans and securities, ensure that their bank meets the capital adequacy requirements and that it manages the ALM function effectively; all this whilst monitoring various risks in an environment characterised by volatile interest rates.

Decisions are made on a quarterly basis taking into account press releases received from the Central Bank. At the end of each quarter participants receive feedback from the facilitator on their performance during the previous quarter. This process assists participants in seeing the cause and effect of their decisions on the performance of their bank.

Upon successful completion of this practical course, participants will be able to: • Have a solid understanding of the Asset & Liability Management (ALM) process

• Recognise and understand how the ALM concepts affect day-to-day decision-making in a bank • Better identify and analyse a bank’s exposure to the Key Sources of Financial Risk

• Identify the various strategies and frameworks that banks employ in order to control risks within specified limits • Better interpret the Balance Sheet of a bank as well as being able to identify the key drivers of performance • Function more effectively, directly or indirectly, as part of the ALM process in their bank

• Understand the growing importance of ALM o The ALM Process and its business relevancy o Value Creation and Bank Profitability o Liquidity Risk Management

o Funds Transfer Pricing

o Interest Rate Risk Management o Capital Management

Target Audience

The training programme provides a unique learning experience for the following target groups: • Members of ALCO in a bank

• Personnel that form part of the ALM support function in a bank • Treasurers and personnel from Treasury

• Chief Financial Officers and personnel from finance • Internal audit • Compliance personnel • Central Bankers Prerequisites None Course Facts Duration 3 Days Dates 29-31 Mar Lecturers Guest Lecturers

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STRATEGIC BANK MANAGEMENT UNDER BASEL III – SIMULATION WORKSHOP

In this highly interactive training programme, participants explore the key strategic challenges banks face today, with an emphasis on the implications of Basel III. Through the use of a sophisticated bank simulation programme, this course covers the key aspects of Bank Management with a particular focus on Capital Structure & Management. Recent regulatory reforms and requirements under Basel III, including in particular the ‘New Global Liquidity Standard’ will be analysed in detail through both the theory and simulation sessions.

The implications of Basel lll for bank strategy as well as business growth planning will be a point of focus, as participants take on various roles representing the senior management of their respective banks and taking all key decisions to compete through an uncertain macro environment.During the practical part of the programme three financial quarters (representing different volatile scenarios and risk management challenges) are run using a bank management simulation programme, called GuardB@nk 3.

The simulation programme has been developed over the past 12 years by SimArch and is very flexible in terms of designing and managing different types of bank balance sheets. The simulation has a wide variety of instruments to select in

composing the asset and liability sides of the balance sheet, in addition to instruments for hedging balance sheet exposures. GuardB@nk 3 also includes components of Basel III, namely the new required Leverage Ratio, as well as the two newly introduced liquidity ratios.

At the start of the programme, participants are divided into “Management Teams” and compete against one another. The teams have to price loans and deposits and make marketing and strategic decisions.

Furthermore, they have to manage a portfolio of loans and securities, ensure that their bank meets the capital adequacy requirements and that it manages the ALM function effectively; all this whilst monitoring various risks in an environment characterised by volatile interest rates and stressed markets.

Decisions are made on a quarterly basis taking into account press releases received from the Central Bank. At the end of each quarter participants receive feedback from the facilitator on their performance during the previous quarter.

This process assists participants in seeing the cause and effect of their decisions on the performance of their bank under the new Basel III regime.

• Have a comprehensive, hands-on understanding of the impact of the latest regulatory reforms on the structure of the Balance Sheet of a bank

• Have an overview of the key components of Basel III and have an understanding of the impact on the way risk is managed in a bank

• Better identify and analyse a bank’s exposure to the Key Sources of Financial Risk • Have an enhanced understanding of the Balance Sheet structure of a bank

• Understand performance measurement and value creation in a banking model which contains different business activities • Function more effectively within their own bank directly or indirectly as part of the Strategic Planning process of a bank • Understand the Financial Services Landscape

• Learn about Regulatory Reform and the impact of Basel III • Understand Bank Business Models and Balance Sheet Structures • Understand the major Risks in Banking

• Understand Value Creation and Bank Profitability • Understand Capital Management

• Learn about the Liquidity Risk Management Framework • Learn about Funds Transfer Pricing and Pricing Issues • Understand the Interest Rate Risk Management Framework

Target Audience

The training programme provides a unique learning experience for the following target groups:

• Senior Management in banks • Members of ALCO • Chief Financial Officers and personnel from finance • Chief Risk Officers • Treasurers and personnel from treasury

• Personnel from strategic planning departments in banks

• Personnel responsible for Interest Rate Risk and Liquidity Management

• Personnel that form part of the Balance Sheet Management function in a bank

Prerequisites

None Course Facts

Duration 3 Days Dates 3-5 Apr Lecturers Guest Lecturers

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STRATEGIC MANAGEMENT OF THE INSURANCE BUSINESS

This 3-day course is designed to provide participants with the latest insights on balance sheet management of insurance companies. Participants will gain an in-depth understanding of the most important factors influencing the balance sheet of an insurance company, as well as experience the influence of developments in the financial markets on the insurers’ balance sheet.

Throughout the course, participants will be using the unique InsuranceManager simulation software, developed by Oxyor, to apply their learning in practice. In the simulation, the participants – in small groups – will act as the Executive Board of a fictitious insurance company. The simulated time horizon will be a period of about 7 to 10 years (where one ‘round’, being six months in the simulation, is approximately one hour in real time). During the simulation, each group will have to manage ‘their’ insurance company through different economic cycles, where the financial markets will change and with them, for example, interest rates and insurance claim behaviour.

• Appreciate the characteristics of the different business lines of the insurance industry • Learn about the challenges and impacts when managing an insurer’s balance sheet

• Explore different business lines’ sensitivity to the economic cycle and the insurance (industry) cycle • Identify the purpose, and the impact, of capital adequacy on insurers

• Understand the regulatory capital requirements and the capital allocation of different insurance sub-sectors • Use solvency ratios

• Understand strategic pricing considerations

• Analyse the relationship between growth and profitability in the insurance industry • Understand the analysis and interpretation of key insurance ratios

• Understand the Insurance (industry) cycle management

• Learn about interest rate risk hedging and duration management • Analyse the decision making process under economic uncertainty

Target Audience

This course is especially useful for junior, mid-level and senior employees working in the insurance industry who want to gain an understanding on how an insurance company’s balance sheet works and changes over time while experiencing the impact of different economic conditions.

Prerequisites

None

Course Facts

Duration 3 Days Dates 17-19 Jan Lecturers Guest Lecturers