Course description
The forex (foreign exchange), derivatives, and money markets are key and major parts of the global market system. Combined, they form the largest money market globally. Trillions of dollars in transactions are traded in foreign exchange alone in a single day. These markets act as components ofglobal capital marketsthrough the providence of opportunities, trading, and funding of the world markets. In recent years, it has become imperative for financial institutions to closely monitor the diversification and management of these markets because they have become a greater source of liquidity and price movements in the market. Foreign exchange is arguably one of the world’s most liquid and versatile markets. Foreign exchange is generally divided into major and minor currencies. It can be traded as a spot, options market, or forward. Foreign exchange is used to raise capital, trade, invest, or hedge to make profits.
Understanding foreign exchange, derivatives, and money markets can be greatly rewarding as it is a form of making a fortune if done correctly. This course from Rcademy will give the participants the ability to understand and examine the fundamentals of money markets, derivatives, and foreign exchange, as well as the characteristics, risks, features, how pricing is done, and application in the real world.
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The Foreign Exchange, Money Markets and Derivatives Course by Rcademy is ideal for:
- Anyone who wishes to gain meaningful knowledge and skills about policies and their effects on short-term money markets
- Anyone looking to start trading forex
- Business development executives
- Board members
- Wealth managers
- Accountants
- Risk managers
- Treasury and product professionals
- Auditors
- Finance specialists
- Speculators
Outcome / Qualification etc.
The objectives of The Foreign Exchange, Money Markets and Derivatives Course by Rcademy are to enable professionals to:
- Understand the key players in the forex markets
- Demonstrate better knowledge of liquidity, solvency, and capital adequacy with other factors
- Analyse the responsibilities and effect of central banks’ money policies on forex
- Develop an understanding of key strands offinancial risk management
- Explain and apply forex options
- Demonstrate how to price forward forex
- Describe the features and characteristics of spot, forex, and forward
- Explain the functions and use of money derivatives such as the highly utilised swaps, options, and forwards
- Discuss the impact on forex from the credit crisis
- Discover how to use analytical knowledge in various money markets worldwide
- Understand the role of a market maker and end-user
- Understand deeply how forex works, how it is influenced, and what moves the prices
- Discover how the money supply works, the money market, and operations
Training Course Content
Module 1: Policies and Money Supply
- Overview of policies – PBOC – The Bank of England policy committee – ECB – Federal Open Market Committee (FOMC)
- Inflation targeting
- Term structure of interest rates
- Monetary policies and tools
- Central bank reserves
- Modern economy
- Taylor rule in the money market
Module 2: Forex and Money Markets Interface
- Current market conditions
- Treasury bills issuance in different jurisdictions
- Arbitrage and interest rate parity
- Issuance of treasury instruments, commercial paper, repos, and banker acceptances
- Risk premia, currency outlook, and key money market spreads
- Forward interest rates forex
- LIBOR
- Size of the money markets
- Mechanics of the existing repo market
- Overview of Euromarkets
- Risk-adjusted for effective forex yields
Module 3: Characteristics of Forex Market
- Global forex reserves
- Key role of the London market in forex trading
- Size of market, major currency pairs, volumes, and participants
- Historical background to today’s forex market
- How gold and the US dollar index interact
- Regional analysis of the main forex markets in the world
- Review of several major historical forex rates
- The International Monetary Fund (IMF)
Module 4: The Role of Central Banks in Money Markets
- Introduction to the world of Central Banks – China’s people’s bank – Central Bank of England – ECB (European Central Bank) – Japan Central Bank – Federal Reserve – Bank of Japan
- Independence of central banks
- Lender of last resort Structure of central bank balance sheet
- Nature of payments systems – Net Settlement – Target2 – Real-time gross settlement systems (RTGS)
- Forward guidance and transparency of decision-making
- Unorthodox monetary policy, including quantitative easing (QE)
- Financial stability and macro-prudential policy
- Summary of open market operations
- Assets and liabilities of central banks
Module 5: Credit Default Swaps (CDS)
- ISDA protocols
- Naked CDS positions
- Sovereign and corporate markets
- International swaps updates and considerations for derivates Association (ISDA) protocols
- Equating actual and contingent payments
- Differentiating a CDS from the financial insurance contract
Module 6: Interest Rate (IR) Swaps
- Netting arrangements
- Counter-party risk
- Business example where swaps are used in interest rates
- Swap in the money market; interpretation and fixed leg pricing models
- Swap execution facilities (SEFs)
- Interest Rates swap and the contrast money market
- Over-the-counter (OTC) market
Module 7: International Regulatory Framework
- Overview of Basel III framework
- Pro-cyclical and countercyclical risk management
- Volcker rule
- Prudential regulation authority
- Dodd-Frank Act
- Pillar 2 and 3 of Basel accords
Module 8: Derivatives For Hedging Purposes
- Calculating portfolio beta
- Hedging on fixed income and equity with some derivatives
- Hedge the forex risks by utilising forwards
- Variance swaps and how they are used in hedging
- Futures and equity hedge ratio
- Important strategies used in options
- Variance swaps as a tool in volatility risk
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Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...