Lifecycle of a Derivative Trade: Uncovering the Middle- and Back-Office Functions
IFM's one-day course takes you "behind the scenes" to explore how brokers and investors on the buy-side and sell-side of the industry perform these functions for listed and OTC derivatives, as well as cleared and uncleared swaps. The program explores the functional building blocks of middle- and back-office operations for trade lifecycle activity, the infrastructure that links together these functions, and the points of failure representing operational risk.
After the course you will be able to:
- Analyze the functional building blocks of the trade for account set-up, client on-boarding, master agreements, confirmation, clearing and settlement, and collateral management
- Identify the participants and their roles, including the investment managers, end-users, swap dealers, FCM's, interdealer brokers, exchanges and SEF's (Swap Execution Facilities), clearing houses and CCP systems, custodians and prime brokers
- Explain the links and plumbing that connect industry participants in the trade lifecycle, including standards and protocols and books and records systems
- Distinguish the role of clearinghouses and CCP systems
- Analyze the collateral management process in mitigating counterparty credit risk
- Understand protections in place for customer collateral and assets
- Be able to explain why novations are done and how they are processed
- Appreciate the impact of industry regulatory changes on derivative trade processing
Class Size: Registration is limited to approximately 15 participants to promote student participation and interaction.
Who Should Attend: Anyone who is interested in learning about the front-to-back functions of the trade lifecycle and OTC derivative trades, from the inception of an order through clearing and settlement. Content is focused on middle- and back-office operations. Attendees include operations, technology, audit, legal and compliance staff, as well as, third-party vendors and regulatory personnel.
Level: Basic/Intermediate. A prior understanding of derivatives is helpful.
Please read our terms and conditions before registering.