COURSE DATES and LOCATIONS
Get a comprehensive understanding of the various trading and
hedging strategies employed in the world of foreign exchange.
October 28-29, 2015: Houston, TX
November 11-12, 2015: Jersey City, NJ
December 3-4, 2015: Houston, TX
COURSE DATES and LOCATIONS
REGISTRATION FEES 1st delegate: $1,995 2nd delegate: $1,795 3rd delegate: $1,600 EMI CERTIFICATION CREDIT This 2-day program will give you a comprehensive understanding of the various
trading and hedging strategies employed in the world of foreign exchange. We’ll examine the common instruments used to execute FX trades and hedges, including Spot FX, Outright Forwards, Non-Deliverable Forwards, FX Swaps, OTC Currency Options and Exchange-traded currencies. Additionally, we’ll look at the nuances of executing currency trades throughout the 24-hour FX “day” as well as popular FX trading pairs, including the Majors (EURUSD, USDJPY, GBPUSD and USDCHF), Popular Crosses (EURJPY, EURGBP and EURCHF), Commodity Currencies
(AUDUSD, USDCAD) and exotics (USDMXN, USDCNY, USDBRL, etc.). Perhaps most essentially, you’ll learn how to hedge FX risk (including the implementation of both an active and passive hedge strategy).
You will leave this course with a solid and immediately useful understanding of: • The history of FX trading
• The role of Central Banks in FX markets
• How interest rates impact FX trades and the importance of the carry trade • How technical analysis helps in trading FX
• How to implement both active and passive FX hedge strategies
• How to hedge “risk on” asset class exposures (equities, etc.) with FX (USDJPY, CADJPY, AUDJPY)
• How to hedge out currency exposures in commodities (USD for oil and refined products; BRL for #11 World Sugar; GBP for Cocoa)
• Common FX instruments for hedging and trading (pros and cons of Spot FX, Outright Forwards, Non-Deliverable Forwards, FX Swaps, OTC Currency Options and Exchange-traded currencies)
• How to execute trades in the 24-hour FX markets
• Understanding the role of the money center banks; pros and cons of an ECN vs. a dealing desk; Liquidity risk and trading size
• How to price OTC Currency Options – Options Pricing models: Black-Scholes, Cox-Ross-Rubenstein; Monte Carlo
• Common OTC Currency Option trades (e.g. long calls, long puts, short calls, short puts, straddles and strangles), and when to use them
• Understanding volatility and correlations in an FX portfolio
• Using the Greeks to understand nuances of OTC Currency Option Positions
What You Will Learn
This course earns 6 credits towards EMI Certification. October 28-29, 2015 - Houston, TX Regus Conference Center Downtown
8:30am - 4:30pm both days
November 11-12, 2015 - Jersey City, NJ Regus - Harborside Financial Center
8:30am - 4:30pm both days
December 3-4, 2015 - Houston, TX Norris Conference Center
8:30am - 4:30pm both days
See last page for venue addresses.
The course is applicable to all levels of the corporate infrastructure. Individuals in every functional area of responsibility in all industries whose decisions have significant FX exposures will benefit from this program. Managers from areas such as treasury, internal audit, accounting, trading and risk management will find the course highly beneficial. Some of the more specific areas follow:
• FX traders and hedgers
• Banks: Money Center Banks, commercial banks and investment banks • Brokerage Firms: FCMs, Retail dealing desks
• Auditors: External auditors supporting corporations with FX exposures, banks and hedge funds
• Corporate Hedgers: Treasurers, hedge desks, mid-office personnel, internal auditors, back office
Session 1: History of the Currency Markets
Course Syllabus - DAY ONE
Gold standard, Benton Wood, etc.; Who the players are today: Central Banks, Money Center Banks, hedge funds, corporate hedgers, institutional investors, brokers, etc.
Carry trades and interest rates; Risk on vs. Risk off currencies; Pegs, central bank interventions and when to fade them.
Session 2: How Currency Markets Work
24-hour OTC Interbank Dealing Desks and why London is center of global FX markets; How to handle low liquidity hours (17:00-19:00 EST); Discussion on the main currency instruments traded: Spot FX, Outright Forwards, Non- Deliverable Forwards, FX Swaps, OTC Currency Options and Exchange-traded currencies; Key currency pairs: The Majors (EUR, JPY, GBP, CHF), Commodity Currencies (AUD and CAD), Exotics (CNY, BRL, MXN, ZAR, SEK, RUB, HKD, etc.) and Crosses (EURJPY; EURGBP; EURCHF, AUDNZD, etc.). This session includes a real-time Spot FX trading simulation which enables attendees to learn basic
mechanics of FX trading including order types (limit, market, stops); the bid-ask spread; bids and offers; etc.)
What are the major drivers of currency markets… besides just about everything. Discusses the main currency price catalysts (including Central Bank rate policies and decisions; State of the global economy vs. individual currency’s economy; Geopolitical risk and flight to safety currencies (USD; JPY); Carry Trade plays (AUDJPY, NZDJPY, etc.,). This session also discusses the relationship between various currency markets and commodities (Gold as the fiat currency; Oil and USD; Cocoa and GBP; Sugar and BRL).
The technical tools commonly used in FX markets, including: Ichimoku Clouds; Using ATR for risk management and position management; Combining oscillators with trend-following indicators; Timeframe Analysis and the charting the history of Implied Volatility.
In this session we’ll combine fundamental and
technical indicators in order to identify high probability trading set-ups. Then we’ll use these fundamental and technical tools in conjunction with stop losses, position sizing limits, correlation analysis and volatility studies to control risk and successfully manage positions in the FX markets.
CPE Credits
This course earns 14 CPE credits.
Energy Management Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.
State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417.
Web site: www.learningmarket.org. Session 3: The Major Drivers of Currency Markets
Session 4: Common Technical Indicators Used in Currency Markets
Session 5: Developing a fundamentally driven currency trading model
Session 6: Turning Technical and Fundamental Indicators Into Currency Trading Models
What is happening now, the current drivers and what does the forward period look like – Asian perspective; European perspective; North American perspective.
Using Black-Scholes to determine if an option is fairly valued, undervalued or overvalued; the formula and elements in pricing puts and calls; Other models: Cox-Ross-Rubenstein and Monte Carlo; Objectives of the pricing models, limitations and assumptions; Historical and implied volatility and the role it plays in option volatility; volatility smiles.
Session 1: Technical FX Trading Simulation
Course Syllabus - DAY TWO
How the technical tools examined in Day One (e.g. MACD, Ichimoku Clouds, Bollinger Bands, ADX, the history of implied volatility, etc.,) can be used in a historical FX trading scenario.
This session covers the basics: Buying calls, buying puts, writing calls, writing puts. The session also includes a simple directional options trading simulation (buying vs. writing options/calls vs. puts).
Session 6: Development of an FX Hedging Strategy The mechanics of implementing a hedge including:
1) The pros and cons of implementing an Active vs. Passive hedging strategy; 2) When to hedge with options vs. linear hedging instruments (Spot, Forwards or Swaps);
3) Pros and cons of using an FCM, using an ECN or using a Dealing Desk.
The impact of delta, gamma, vega and theta on profits and losses in options. How each of these parameters impacts price exposures, time decay and volatility. Options hedging techniques such as delta hedging; Delta neutral and how straddles and strangles help in expressing a volatility opinion. Includes a volatility spread options trading simulation (buying vs. writing straddles and strangles). How various events such as devaluations, breaking of
pegs, etc., have roiled FX markets – What were the warning signs? How did the actions of Central Banks impact markets? What lessons can we learn going forward?
Session 2: Fundamental FX Trading Simulation
Correlation analysis and volatility studies are key in the development of robust risk management solutions. In this risk workshop attendees will attempt to mitigate portfolio risk of various linear and non-linear (options) positions in FX by analyzing historical and implied volatility of currency pairs, historical correlations of FX pairs along with technical price charts.
Session 7: FX Risk Management Workshop Session 3: Understanding OTC Currency Options – The
Basics
Session 4: Understanding OTC Currency Options – Options Pricing Models
Session 5: Understanding OTC Currency Options – The Greeks
EMI’s leading industry experts have an average of over 30 years of knowledge and experience in: Energy • Commodity trading • Risk management
• Education • Consulting • Financial services
Plus many years of managing marketing, international trading, manufacturing, consulting, start-up operations and project finance operations of well-known companies; integrated major oil companies as well as international trading companies. EMI’s industry experts have also provided risk and value management analysis, advice, information, and services to a variety of companies in the electric power industry. Clients have included power marketers, integrated utilities, retail power providers, hedge funds, and power plants.
Highlights of our instructors’ experience include: • Developing a suite of models for a variety of power markets that quantify value and risk • Managing spark spread portfolios for hedge funds in the power markets • Operating in futures trading pits as a market observer in the power markets• Developing working papers for investigations and performing compliance audits in the power industry• Helping Texaco initiate its first use of futures exchanges as an integral part of hedging/trading strategy • Chief Operating Officer of Triwell Marketing and refining • Director of OPIS, Oil Price Information Service, a management-consulting and educational services group that solely focused on the downstream energy industry • Member of Board of Directors of Longview Refinery • Member of the New York Mercantile Exchange Petroleum Advisory Board • Expert witness for a hearing before the subcommittee on surface transportation for the Commerce, Science, and Transportation Committee of the US Senate • Supplied expert testimony to a US Senate sub-committee hearing on diesel petroleum product pricing • Supplied testimony to the Federal Highway Administration regarding fuel tax evasion • Expert witness in a MTBE litigation against the major oil companies • Publishers of The Daily Hedger, BTU’s Daily Gas Wire and BTU’s Daily Power Report, which advise thousands of petroleum professionals daily.
Our instructors are frequent expert speakers for numerous petroleum industry events and trade associations including: • DOE DESC World Energy Conference • OPIS Fleet Fueling • CME NYMEX • Fuel Management University • NATSO • ATA • AAA • Dairy Distribution • eyeforEnergy eCommerce • OPIS Supply Summit • CIOMA • American Society of Me-chanical Engineers • American Society of Lubricating Engineers • Ambrust Aviation • NACHA.
Over the years EMI has developed a series of intensive courses covering all aspects of Energy from production all the way to managing the impact price and volatility on the margin of end-users, resellers, traders, marketers, shippers, retailers and refiners. Our instructors have had the privilege to instruct thousands of professionals representing all aspects of the energy industry, including every major oil company (i.e. Exxon Mobil, BP, Shell, Equilon, Motiva) major power utilities (i.e. Sempra, Edison Mission, Berkley, Toronto Hydro, Dominion, Conectiv) small marketers (i.e. Sprague, Getty, Southern Counties, Western Petroleum) trucking fleets from 50 to 10,000 (i.e. UPS, U.S. Postal Service, Yellow, Pepsi, Werner), gasoline-powered fleets hyper-markets (i.e. The Pantry, Wawa, BJs Wholesale) and many fortune 500 energy consumers.
EMI experts are frequent editorial contributors to petroleum magazines and are trusted by today’s leading news sources. Our experts have been featured in:
Futures Magazine • The Wall Street Journal • USA Today • The New York Times • The Washington Post • Journal of Commerce • CNN • NBC • CBS • ABC • Bloomberg • Reuters
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1st Attendee: $1,995 for full program 2nd Attendee: $1,795 3rd Attendee: $1,600
Attendees may reschedule for a different date or course with no penalty. Attendees may substitute a colleague in place of themselves as long as prior notice is given to EMI.
Course fees are 100% refundable up to 14 days prior to course date, 80% refundable up to 5 days prior to course date and 50% refundable up to 2 days prior to course date. Cancellations are non-refundable thereafter.
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CHOOSE YOUR COURSE DATE/LOCATIONHotel recommendations for select course locations available online at www.energyinstitution.org/hotels
October 28-29, 2015
Regus Conference Center
Downtown Houston Two Allen Center
1200 Smith Street, 16th Floor Houston, TX 77002
PH: 713.353.4600
November 11-12, 2015
Regus Harborside Financial Center
2500 Plaza 5 25th Floor
Jersey City, NJ 07311 PH: 201.484.7200
December 3-4, 2015 Norris Conference Center
Houston/City Centre I/ 10 Katy Freeway Area 803 Town and Country Blvd. Houston, Texas 77024 PH: 713.590.0950
EMAIL: Send form to [email protected].
TEL: Call PMA Conference Management at 201.871.0474 FAX: 253.663.7224
POST: PMA Conference Management POB 2303
Falls Church, VA 22042 Please make checks payable to: “PMA"