Support & Training

Course Detail

Energy Trading & Risk Management

This 2-day seminar is clearly structured to cover the instruments and market characteristics in depth, addressing the specifics of modeling energy products and risk management application of these instruments. Risks are defined in the context of energy markets including main approaches to estimating and calculating value-at-risk. The practical case studies will ensure you discuss areas of concern that might arise from your day-to-day work and enable you to put into practice any theory discussed.

Course Information

Price £1600.0 + VAT
Duration 2 days
Location London
Available Dates
2018-10-11 00:00:00.0  Register Now

Who Should Attend

From Financial Service providers, Investment Banks, Brokerage Firms, Energy Companies, Energy Hedge Funds, Exchanges, Regulators, Consultancies and Solution Providers:

  • Commodities & Energy Trading
  • Derivatives Trading
  • Derivative Sales & Marketing
  • Derivatives Pricing
  • Derivatives Structuring
  • Risk Management & Analysis
  • Energy Analysis, Research & Development
  • Portfolio Management
  • Financial Control
  • Compliance and Internal Audit

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

GLOBAL ENERGY MARKETS

  • Market outlook balance 2017/2018 supply demand drivers
  • Review of energy price behavior - key differentiating factors
  • Spot, forward prices and spreads
  • Forward curve analysis for oil markets - Excel Workshop
  • Technical Analysis - key tools that can help you in the market
  • The Key Fundamentals
  • The News and information to watch

OVERVIEW OF ENERGY PHYSICAL AND FINANCIAL

MARKETS

  • Risk of dimensions in energy markets: Price, basis, volume, regulation, weather, operations, freight - The Risk Matrix (TM)
  • Exchange-based and OTC trading
  • Impact of physical delivery
  • Clearing, collateral and margin issues

CRUDE OIL MARKETS AND INSTRUMENTS: PHYSICAL AND

FINANCIAL TRADING

  • Overview of the global crude oil market
  • Global crude oil flows
  • Price setting mechanism and world oil pricing
  • Physical oil transactions
  • Forwards, swaps, exotic swaps (extendable, double-up), basis swaps,

options, Asian options, EFPs

REFINED PRODUCTS MARKETS AND INSTRUMENTS:

PHYSICAL AND FINANCIAL TRADING

  • Overview of the global refined products markets
  • Trading the crack spreads and refineries as derivatives
  • Forwards, swaps, basis swaps, options, strips of options, Asian options, crack spread options

WEATHER, FREIGHT AND EMISSIONS MARKETS - THEIR

IMPACT ON OIL AND GAS MARKETS

  • Temperature measures: cooling degree days and heating degree days
  • Hybrid products based on weather and other underlying assets
  • Emissions markets
  • Freight routes and markets

STRATEGIC AND TACTICAL ISSUES AROUND HEDGING

WITH ENERGY DERIVATIVES

  • Understanding operations and entity wide objectives
  • Close out value - liquidity measures in OTC markets
  • Evaluating the use of derivatives to control market risk and linking use to enity-wide and activity-level objectives (the risk matrix)
  • Defining risk management activities and terms

USING ENERGY FUTURES, FORWARDS, SWAPS

  • Hedging with futures. Buyers and sellers long or short?
  • Hedging with forward and swaps
  • Energy swaps and exotic swaps

USING ENERGY OPTIONS: HEDGING AND SPECULATION

  • Review of options types
  • Understanding option payoffs

DESIGNING POLICIES AND PROCEDURES AROUND

MARKET RISK, CREDIT RISK AND OPERATIONAL RISKS

  • Communicating and enforcing the policies

RISK MANAGEMENT

  • Understanding and interpreting value at risk measures, VaR
  • Overview of methodologies: Analytic, Monte Carlo and historical

simulation

  • Risk Reports - Enhancing exposure reports with risk analysis.

STRESS TESTS IN ENERGY MARKETS

  • Stress tests as a complementary tool to VaR and other market risk

measures

  • Types of stress tests and main applications
  • Integrating liquidity, credit and operational risk in the formal risk

management process