POSTGRADUATE CERTIFICATE DELIVERED BY DISTANCE LEARNING OVER 16
WEEKS
Learning partner of
THE MECHANICS OF
DERIVATIVES AND FINANCIAL PRODUCTS
WHAT YOU WILL LEARN This ground-breaking course will examine the
rationale, mechanics and risks/rewards for investors in a variety
of financial instruments which provide direct and indirect exposure
to these asset classes. There will be a focus on the way in which
these instruments function, the markets and platforms upon which
they trade, and the motivations behind the selection of such
instruments in constructing an investment portfolio. While
securities such as shares, and bonds represent primary financial
instruments of the major asset classes such as equities and fixed
income, there will also be a comprehensive examination of the wide
variety of derivative instruments which have grown rapidly in
response to increased volatility in exchange rates, interest rates,
commodity prices and the need to manage risks in a complex
financial environment. Instruments that will be examined include
options, futures, swaps, structured products, exchange traded funds
and other collective investment vehicles. These will be considered
from the perspectives of the hedger, the speculator and, on the
sell side, from the perspective of the originators and structurers
of these products. You have the opportunity to receive a
Postgraduate Certificate from Middlesex University. This is the
only course on this topic that offers you the chance to get this
qualification. The course takes place over 16 weeks and consists of
eight distance learning units. Every two weeks an additional unit
will be released with the associated assessment so you can grasp
your understanding before moving on to the next unit.
COURSE AT A GLANCE Unit 1 – Equities, global equity markets and
indices Unit 2 – Fixed income securities Unit 3 – Money market
securities, foreign exchange and settlement Unit 4 – Exchange
traded funds and collective investment schemes Unit 5 – Exchange
traded derivatives: futures and options Unit 6 – Key elements of
swaps Unit 7 – Risk management with derivatives Unit 8 – Trading
derivatives, hedging and investment strategies
COURSE LEADER CLIVE CORCORAN Clive Corcoran has been engaged in the
finance and investment management sectors, on both sides of the
Atlantic, for more than 25 years. After completing his education in
the UK, Canada and the US, he co-founded and became the CEO of an
investment management company based in the USA during the 1980’s
and 90’s. The company provided wealth management and fiduciary
services to a variety of international clientsHis own
responsibilities included personalized business management,
international tax planning and providing strategic financial advice
to high net worth individuals. Since re-locating to the UK in 2000,
he has continued, as an FCA registered investment adviser, to be
engaged in providing strategic investment advice to private clients
and pension funds. During recent years he has written several books
on international finance, focusing on asset allocation and risk
managementHe also has also been very actively involved in executive
education on a global basis for finance professionals. He conducts
workshops and in-house courses on a variety of topics including
risk management, Basel III and capital adequacy, central banking,
systemic risk, asset allocation techniques, credit risk, market
risk and derivatives. Hear from the trainer himself:
www.iff-training.com/VIDMSD
HOW YOU WILL LEARN • A new module is released every two weeks • You
can study the units online, save them to your
computer or print them out • You set the pace for yourself • No
need to travel or take time off work – cost effective • Apply the
knowledge, skills and expertise to your work
straight away
POSTGRADUATE CERTIFICATE To make your studies more relevant and
valuable, the course is validated by the Business School at
Middlesex University at a Postgraduate Certificate level. For those
wishing to receive a Postgraduate Certificate from Middlesex
University, an additional marked assignment of 5000 words will need
to be submitted, based on a continuing case study that runs
throughout the duration of the course.
PRICE
* VAT may be payable depending on your location –
see online booking page for details
HOW TO APPLY Tel: +44 (0)20 7017 7190 Email:
[email protected]
CUSTOMISED TRAINING IFF’s bespoke digital training solutions will
help you address your specific key business challenges. The
programme is designed for you, with content focusing on the issues
you and your teams are facing. The fully branded digital course
will be hosted by us, and unlike other online courses, your
employees will receive a specialist qualification at the end of the
programme from a London University.
• Tailored content - 100% targeted to cover your business
needs
• No travel or time out of the office – 100% Distance
Learning
• Value for money – train teams of staff at the same time • Risk
free – we’ve been doing this for 30 years
We will meet you anywhere in the world. If you would like one of
our consultants to talk about your needs in more detail or if you
would like more information on our customised training solutions,
please contact us on +44 (0)20 7017 7190 or email:
[email protected]
COURSE INFORMATION DELIVERED BY DISTANCE LEARNING OVER 16
WEEKS
APPLY ONLINE HERE
UNIT 1 – EQUITIES, GLOBAL EQUITY MARKETS & INDICES
Unit Learning Aims and Objectives . A Understand the defining
characteristics of financial
securities and their relationship to assets . Gain the ability to
contrast the nature of financial securities
with the derivatives which are structured and dependent upon these
underlying securities
. Increase your understanding of the role that equity plays in the
capital structure of corporations
. Obtain a full comprehensive overview of different types of
equities including warrants and CFDs,
. Enhance knowledge of the issuance of equities and the manner in
which they are traded in contemporary markets
. Benefit from an ability to analyse relationship between the
financial performance of companies and the behaviour of their share
prices, dividends, management policy etc.
UNIT CONTENT • The differences between a security and a
derivative
– fundamental financial claims – ownership of equity vs. a
derivative claim which is contractually bound to the performance of
an underlying or fundamental claim
• The principal types of equities – ordinary (common) shares –
preference shares – convertible securities – ranking for dividends
– liquidation priority
• Issuance of equities – stages of IPOs – private placements –
secondary offerings – rights issues – role of underwriters
• Equity markets and trade execution • Order driven/quote driven
platforms
– alternative trading venues – dark pools – order types – trade
settlement
• Warrants, Covered warrants and Contracts for Difference (CFDs) –
relative risks of warrants and covered warrants – mechanics of a
CFD
• High Frequency Trading – market making – liquidity provisioning –
flash crashes
• Equity valuation – dividend discounting models – financial ratios
– fundamental analysis
• Historical overview of equity market returns – P/E ratios –
comparison with returns on other asset classes – over-valuation
indicators – risk premium – overview of Capital Asset Pricing Model
(CAPM) and portfolio
theory
• Review of major equity indices – market classifications – major
markets – emerging markets
UNIT 2 – FIXED INCOME SECURITIES
Unit Learning Aims and Objectives . Understand the main
characteristics of fixed incomes
instruments which enable a variety of borrowers to raise capital
from investors by issuing debt securities
. Gain a comprehensive overview of global bond markets and the
financial and macro-economic drivers of the capital flow into these
markets
. Attain an ability to examine and contrast of the different kinds
of bonds – sovereign, corporate, fixed rate/floating rate, asset
backed, zero coupon, seniority
. Obtain a clear understanding of the principles of fixed income
mathematics and the sensitivity of bonds to changes in credit
conditions and the interest rate environment
. Obtain a critical consideration of the advantages/ disadvantages
to issuers and purchasers of securitisation instruments
UNIT CONTENT • Characteristics of Sovereign Bonds
– US Treasury market – UK gilt market – Japanese government bond
market – principal EU markets – index linked bond characteristics –
stripped government bonds
• Characteristics of Corporate Debt – Eurobonds – Floating Rate
Notes (FRNs) – subordinated – Asset Backed (ABS) – zero coupon
bonds – convertible debt securities
• Issuance of fixed income securities – pricing and role of
underwriters/syndicates – spreads over government bond benchmarks –
over LIBOR – fixed and floating charge securities
• Fixed income markets and trade execution – Inter-Dealer (IDB)
price-driven electronic trading platforms – OTC inter-dealer voice
trading – on-Exchange trading
• Valuation of fixed income securities – time value of
money/discounting – yield to maturity – clean and dirty prices –
trading cum and ex div
• Bond sensitivity – modified duration and convexity – the term
structure of interest rates
• Securitization – Mortgage Backed Securities (MBS) – CDOs – more
exotic types
COURSE SYLLABUS
UNIT 3 – MONEY MARKET SECURITIES, FOREIGN EXCHANGE & SETTLEMENT
Unit Learning Aims and Objectives . A comprehensive understanding
of the role of cash and near
cash instruments – including short term government and corporate
paper - as primary drivers of money markets and short term interest
rates
. Understand the $5 trillion per day market for foreign exchange –
spot, forwards and swaps
. Gain a detailed comprehension of the role of clearing and
settlement in markets including those for equities, FX, bonds, and
derivatives
. Benefit from a full exploration of the role of a variety of
financial intermediaries including prime brokers, custodians,
investment banks and dealers
UNIT CONTENT • Cash instruments and markets
– treasury bills – commercial paper – money market funds – deposit
insurance and default compensation schemes
• Money markets – repo market – re-hypothecation
• Foreign exchange instruments and markets – characteristics of
global FX Market – 24 hour nature – de-centralized – spot contracts
– FX forwards – FX futures – currency swaps
• Macro-economic drivers of global capital flows – FX in emerging
markets – exotic currencies – interest rate parity and pricing of
forwards
• Clearing, settlement and safe custody – prime brokerage and
equity finance – principles of Delivery vs. Payment (DVP)
• Custodians/Nominees – designated nominee – pooled nominee
accounts – legal ownership/beneficial ownership
• Purpose, requirements and implications of securities lending –
function of SBLIs – market makers
UNIT 4 – EXCHANGE TRADED FUNDS & COLLECTIVE INVESTMENT VEHICLES
Unit Learning Aims and Objectives . Get clarification of the
mechanics and rationale for
collective investment vehicles/products . Comprehension of the
historical development of Exchange
Traded Funds (ETF’s) and an examination of the popularity, scope
and usage of these packaged securities
. Obtain the ability to contrast the costs/benefits, management
styles and the principal consumers of different collective
investment products
. Leave with an increased grasp of the of structured investment
products – the financial engineering required in product creation
and the rationale and benefits to issuers and purchasers
. Fully understand the role of hedge funds and their different
investment styles and strategies
UNIT CONTENT • Characteristics of Exchange-Traded Funds
(ETFs)
– continuous trading – expenses – tracking error – fiduciary/trust
architectures – role of sponsors – creation units
• Contrast passive index tracker ETFs with actively managed
funds
• Examination of geographical ETFs – commodity ETFs – features of
inverse ETFs – leveraged funds
• Characteristics of Collective Investment Vehicles (CIVs) – OEICs
– unit trusts – investment trusts – Real Estate Investment Trusts
(REITs) – Life assurance investment bonds – endowment policies –
annuities
• Management of CIVs – fee structures – net asset value – trade at
discount/premium to NAV – location/domicile – pass-porting – UCITS
compliance
• Structured products – risks – capital protection – valuation and
yield characteristics of structured products – tax efficiency –
prospects for capital growth and income – asset cover – redemption
yield
• Hedge Funds – main strategies of hedge funds – investment risk
and return – allocation – valuation and quality of holdings
COURSE SYLLABUS
UNIT 5 – FUTURES & EXCHANGE TRADED OPTIONS
Unit Learning Aims and Objectives . Examine the evolution of the
futures markets in commodities
into the coverage of futures for a wide array of financial
instruments
. Grasp Central Counter Party Clearing (CCP), settlement,
collateral/margin management, risk, contrast with bilateral
clearing
. Improve your knowledge of principal futures exchanges and futures
contracts
. Recognise the manner in which exchange traded futures and options
are priced, fair value, trading strategies and uses in
hedging
. Gain the ability to critically examine different kinds of
options, pricing issues including Black Scholes and binomial
models, sensitivities to market factors etc.
UNIT CONTENT • Futures and options traded on exchanges
– contractual assets – Centralized Clearing (CCPs) – regulatory
initiatives designed to promote migration from OTC
to CCP – central clearing vs. counterparty risk
• Legal framework – clearing – initial margin – variation margin –
novation and the role of Central Counterparty (CCP)
• Factors of options pricing – Black Scholes Merton model –
binomial tree methods – option premium – understanding the “Greeks”
– delta and dynamic hedging – time value – intrinsic value
• Types of options – puts and calls – perspectives of buyer and
writer – American – European – Asian style – risks to buyer/writers
of options
• Characteristics of futures contracts – standardised contract
specifications – tick size – contract size – delivery dates –
calculation of fair value – cost of carry – contango –
backwardation
• Principal futures contracts – Eurodollar – bond futures – short
term interest rates – stock index futures – FX futures – Energy –
Metals
– agricultural products • Exchanges and platforms
– open outcry – order types accepted by the markets – market orders
– limit orders – cash settlement/physical delivery
UNIT 6 – KEY ELEMENTS OF SWAPS
Unit Learning Aims and Objectives . Leave with the ability to
critically assess the role of swaps
in contemporary financial markets – their historical development
and the role of financial engineering in ongoing innovations and
their continuing evolution
. Examine the legal frameworks for swaps – ISDA Master Agreement,
Credit Support Annex (CSA) etc.
. Critically examine the different techniques involving derivatives
for addressing interest rate risk and credit default including a
case study of the sovereign default of Greece in 2012
. Analyse in detail Credit Default Swaps in both the corporate and
sovereign markets
UNIT CONTENT • Characteristics and rationale in the development of
swaps
– hedging interest rate risk – customised vs. standardised
contracts – off balance sheet benefits – regulatory arbitrage –
rationale of fixed/floating interest rate swaps
• Principal types of swaps – interest rate swaps – plain vanilla
and more complex – FX swaps – currency basis swaps – commodity
swaps – equity swaps
• Credit Default Swaps – how they work and how they are
quoted
• Counter party risk – treatment under Basel III – role of
collateral – principle of “netting”
• ISDA Documentation – Master agreements and protocols –
collateralisation
Case Study the re-structuring/default of Greek government debt in
2012, impact on the sovereign CDS market, jurisdiction of swap
agreements, Contingency Action Clauses (CACs)
COURSE SYLLABUS
UNIT 7 – RISK MANAGEMENT WITH DERIVATIVES
Unit Learning Aims and Objectives . A core understanding of the key
strands of financial risk
management . Ability to critically examine some of the key drivers
of the
kind of systemic risk seen in 2008 which involved counter party
credit risk from the use of credit derivatives including
correlation, tail risk etc.
. Ability to critically assess the role that derivatives play with
regard to creating portfolio risk and in turn, providing useful
techniques for hedging risk for investment managers
. The capability to examine stress modelling techniques and their
relevance to the Basel III regulatory framework
UNIT CONTENT • Stress testing for derivative portfolios with
non-linear
characteristics – modeling methods – contingency scenarios – Basel
III focus on stress testing, Extreme Value Theory (EVT)
• Monte Carlo simulations – how to conduct them – quantifying the
exposure and severity of “outliers” – tail risk
• Principal Components Analysis – uses in implementing risk
management with derivatives
• Examination of the CMEs SPAN algorithm regarding market
volatility and liquidity
• Explanation of how margin works in the futures markets – uses of
collateral in mitigating counter-party risk with swaps
• Correlation issues – use of copulas – modeling techniques –
non-linear risk characteristics – left tail dependencies – how
these impacted CDOs
• Complex credit derivatives – basket CDS products – nth to default
type structures
UNIT 8 – TRADING DERIVATIVES, INVESTMENT & HEDGING
STRATEGIES
Unit Learning Aims and Objectives . A thorough understanding of the
purposes and
motivations of the main users of derivative instruments in
financial markets
. Ability to confidently explane the risk/reward matrix regarding
the short term trading of derivatives
. A clear understanding of the use of derivatives with longer term
investment horizons can be both a tactical and strategic component
of an asset allocation strategy
. Ability to critically analyse case studies and real world
illustrations of how the principal classes of derivatives –
futures, options and swaps - can be used to hedge a portfolio of
securities
UNIT CONTENT • Derivatives users
– roles of hedgers – speculators – arbitrageurs
• Usage of derivatives by banks to hedge credit and market risk –
trading book vs. banking book – treatment of derivatives under
Basel III
• Principles of hedging with futures – swaps and options – delta
and gamma – volatility
• Hedge ratio calculation for equity and bond futures • Futures
spread trading - intra-market spreads and inter-
market spreads • Option strategies
– long and short straddles – strangles – bull and bear spreads –
motivations for strategies – risk/reward payoff diagrams
• Relative merits of different derivatives for hedging purposes –
costs – counterparty risk – liquidity of markets – market to market
issues
• Examination of role of derivatives in financial crisis of 2007/8
– systemic risk – correlation issues
OPTION OF A POSTGRADUATE CERTIFICATE WITH MIDDLESEX UNIVERSITY You
have the unique opportunity to choose a validated option for this
course and receive a postgraduate certificate on completion. This
programme is quality assured by Middlesex University and you will
receive a Middlesex award on successful completion. However, if
university validation isn’t important to you there is still the
opportunity to take the standard non-validated course.
WHAT DOES THE CERTIFICATE ENTAIL? In addition to studying all the
units and passing the short self assessment tests after each unit,
you will need to submit a 5000 word assignment at the end of the
course which will be assessed. The assignment will be a cumulative
project that you will work through and build upon during each stage
of the course.
If you wish to book on the certification course there will be an
assessment fee of £360.
ENTRY REQUIREMENTS Participants wishing to undertake the
Postgraduate Certificate are required to have a degree or
equivalent qualification (or relevant work experience).
Participants wishing to undertake the course but not receive the
Postgraduate Certificate are not required to have any formal
qualifications.
ABOUT OUR PARTNER MIDDLESEX UNIVERSITY
History Middlesex University is a large London based university
with a history in higher education dating from 1878. In 1992 it was
granted the Royal Charter making it a university. The university
offers a broad range of courses through four academic schools of
Arts and Education; Business; Engineering and Information Sciences;
Health and Social Sciences and their Institute for Work Based
Learning.
Middlesex University has over 34,000 students studying on its
courses worldwide, both at its own campuses and also with partner
institutions, making it one of the largest providers of British
university education to international students. Middlesex
University has a long history of successful collaborations with the
corporate sector. It was the first academic institution to develop
industry specific MBA programmes (Shipping & Logistics and Oil
& Gas) delivered 100% by distance learning.
INTERNATIONAL REACH Middlesex University is committed to meeting
the needs and ambitions of a culturally and internationally diverse
range of students by providing challenging academic programmes. It
has a major international business school based in London with
overseas campuses in Dubai and Mauritius and a global portfolio of
partnerships delivering high quality validated programmes in
business and management.
Staff and students come from a wide spectrum of cultures and
backgrounds with a common interest in executive education that is
world class, modern and applicable. Middlesex University Business
School is proud of its dedicated teachers and its rich range of
learning resources including distance learning and virtual learning
environments.
BENEFITS OF STUDYING FOR A POSTGRADUATE CERTIFICATE WITH US
A MIDDLESEX POSTGRADUATE CERTIFICATE: n Is project based and
practical n Offers networking opportunities during and
after the course n Provides exceptional teaching staff n Delivers
applied learning experiences n Combines academic rigour with
individual
support
HOW IS THE COURSE VALIDATED?* This programme is quality assured by
Middlesex University and after successfully completing your studies
you will receive a Postgraduate Certificate from Middlesex
University. Middlesex Certificates are recognised worldwide.
QUALITY The Quality Assurance Agency (QAA) visited Middlesex in
2015 and noted in its report that its auditors had confidence in
the University’s current and likely future management of its
academic standards and of the learning opportunities available to
students.
THE UNIVERSITY IS A MAJOR PROVIDER OF BUSINESS AND MANAGEMENT
EDUCATION, WITH AN IMPRESSIVE TRACK RECORD OF WORKING IN
PARTNERSHIP WITH THE PUBLIC AND THE PRIVATE SECTOR, AS WELL AS
INTERNATIONAL ORGANISATIONS
IFF is the learning partner of
THE MECHANICS OF DERIVATIVES AND FINANCIAL PRODUCTS POSTGRADUATE
CERTIFICATE DELIVERED BY DISTANCE LEARNING OVER 16 WEEKS
Contact: www.iff-training.com Tel: +44(0)20 7017 7190 Email:
[email protected]
Duration: 16 Weeks
Dates: 19 June 2019
Learning partner of
THE MECHANICS OF
Dates: 25 September 2019 12 February 2020
POSTGRADUATE CERTIFICATE DELIVERED BY DISTANCE LEARNING OVER 16
WEEKS
Learning partner of
DISTANCE LEARNING COURSE CATALOGUE THE WORLD'S LEADING PROVIDER OF
ONLINE TRAINING FOR BANKING AND FINANCE PROFESSIONALS
Contact:
THE MECHANICS OF
POSTGRADUATE CERTIFICATE DELIVERED BY DISTANCE LEARNING OVER 16
WEEKS
Learning partner of
APPLY ONLINE HERE