Trading, Derivatives, Hedging and Risk Management Gold Courses

This course provides the detailed practices and techniques involved in successful trading operations in today's international crude and product markets.

It has been designed for front, middle and back office personnel who need a detailed insight into trading operation practices and emphasises the operational impacts to corporate profitability and risk. It will also appeal to personnel who have recently joined an oil trading group of an oil major, investment bank or commodity trading company.

Much of the work will be carried out in syndicate groups where teams will simulate real in-company practice, working with other delegates drawn from a wide background of disciplines in the industry.

The course commences with the progress of a trade, from verbal agreement between two traders, through the subsequent preparation of the contract, operation of the contract with chartering and nominations of the tanker, invoicing and presentation of documents, culminating in post contractual settlement of claims arising from the contract operation. Each area is subsequently discussed in detail with further presentations which also include topics such the quality and specifications of actively traded product groups; viz. gasoline and naphtha, middle distillates (diesel, gasoil and jet fuel) and residual fuels oils. Blending theory and practice, operation of storage and pipelines are also addressed.

This four-day course provides delegates with a fundamental understanding of the trading and operational features within the international oil industry - from the selection, purchase, shipment and refining of crude oil through to the subsequent selling of the refined products that meet stringent sales specifications. Emphasis is placed on understanding and successfully resolving the practical issues encountered by professionals within the industry. In addition to formal presentations, delegates will actively participate in exercises and role plays to reinforce their understanding of the topics presented.

This course provides a comprehensive summary of the markets together with the techniques and range of trading instruments that are typically employed. The primary focus is the identification and management of the wide variety of risks that arise from the trading activity. The purpose is to enable delegates to design, critique and implement a control and monitoring regime within their own trading organisation; information from which could be utilised to report to senior management. Case studies are used to learn the techniques involved, which will be reinforced in syndicate groups where risk arising from a portfolio of positions is assessed.

Case studies will address each technique used in the management of risk. A continuous theme case study will also allow each syndicate to manage a portfolio of their own group positions. It is recommended that delegates should have attended TR1 or have a reasonable working knowledge of the subjects covered in that course.

The course commences with a recap of the markets and trading techniques, the instruments used, and the methodology of trading oil and derivatives. Within each trading area the risks are identified and available management tools are discussed in detail. The theory and mechanics of advanced instruments including swaps, CFDs, traded and OTC option are explained and the application of VaR in assessing a variety of risk is discussed in detail. Along with price risk, other areas of exposure will be addressed such as counterparty, credit exposure, trading limits and mark to market in-house position management.

This course addresses the risks associated with oil trading focused on price. Building on material taught in TR1, this course covers the more advanced aspects of price risk management. Case studies will address each technique used in the management of risk. The course commences with a half-day fast track recap of the key issues covered in TR1 prior to moving into the key issues – the identification of risk, the tools available and the mechanisms used to manage it. The theory and mechanics of advanced instruments including swaps, CFDs, traded and OTC option are explained. Their use in developing effective trading strategies is discussed and practiced in detail.

A case study with a continuous theme will also allow each group to manage a portfolio of their own group positions. Delegates will have the opportunity to trade both structured and live markets. It is recommended that delegates should have attended TR1 or have a strong working knowledge of the subjects covered in that course.

This advanced course is designed to provide delegates with a thorough understanding of the latest business techniques and refining technologies available to the oil supply, trading and refining industries, and highlights how the activities of these sectors may be optimised and synergised to maximise overall profitability. Through a variety of case studies, delegates will learn the principles of refinery planning and economics along with basic principles and techniques involved in trading and supply. Delegates will focus on the synergies between these sectors to maximise corporate profitability. Short-term operations and medium-term planning using linear programming and long-term investment decisions are addressed. It is recommended that delegates should have attended SP1 or have working knowledge of the subjects covered in that course. There are no pre-requisites for this course, nor is any advanced preparation required.

Building on the knowledge gained in "Tanker Ownership, Chartering and Operations" (TD2), this three-day course offers delegates a more in-depth exploration of contracts and pricing issues surrounding the tanker industry. The course focuses on the implementation of tactics and practical strategies for enhancing commercial returns and business performance in tanker transportation - both from charterers' and owners' perspectives. It looks at how commercial risks may be hedged using freight futures or by entering into period charter agreements. Negotiating techniques and the key elements of contracts of affreightment are examined and discussed. A legal workshop provides a series of case studies designed to highlight some of the more common events impacting on commercial operations.

The course also looks at how companies have looked to improve their competitive positions through benchmarking and the development of tanker pools. In a high oil price environment, delegates learn how to improve voyage economics through optimising bunkering strategies.

The course emphasises sound commercial practice, drawing on the working knowledge and experience of the various industry speakers. Case studies and practical sessions provide delegates with hands-on experience of decision making in this area. While not essential it would be preferable for participants to have already attended "Tanker Ownership, Chartering and Operations" (TD2).

This course covers the basic principles of international oil trading and the allied fields of supply, transportation and refining. Through the medium of a case study, delegates will address day-to-day problems and will understand the relevant commercial driving forces in this area. Much of the work will be carried out in syndicate groups where teams will simulate real in-company practice, working with other delegates drawn from a wide background of disciplines in the industry. Delegates are introduced to the key elements affecting the international market of oil trading. Crude valuation, ocean tanker transport and freight are explored together with a basic overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Aspects of product quality will be covered together with the keyrefining processes needed to achieve them.

The principal aim of this course is to expose delegates, to comprehensive training on power hedging and risk management in an applied context.

The course will enable participants to gain a practical working knowledge of power market structure, main players and common traded instruments. Delegates will gain a practical understanding of the various dimensions of risk in power markets and the various tools to manage and transfer those risks.

We will present new approaches to hedge energy exposures with derivatives as well as useful techniques to unbundle gas and power structures in long term contracts and physical assets. Particular emphasis is placed on the use of derivatives as well as physical assets and contracts to manage price, credit, volumetric, and operations risk.

Advanced Energy Derivatives Pricing, Hedging and Risk Management (DPH3) builds on the concepts and instruments presented in Energy Derivatives Markets, Instruments and Hedging (DPH1) and Energy Derivatives Pricing, Hedging and Risk Management (DPH2) and covers advanced derivatives pricing topics as well as market risk management of derivatives portfolios. Advanced market risk management topics such as applications of marginal VaR analysis, backtesting VaR models and extreme value theory VaR are presented. Counterparty risk management and potential future exposure (PFE) calculations are covered in this module. Advanced derivatives pricing and hedging concepts covering exotic derivatives and physical assets (eg power plants and natural gas storage) are also presented in this course. The course also covers advanced hedging concepts such as delta-gamma hedging and cross-market hedging and hedging in the presence of volumetric risk.

This highly interactive workshop uses practical case studies, Excel exercises and group discussions to reinforce the concepts presented in the lectures.

This course covers the latest practical developments in credit and counterparty risk in energy and commodity markets. We will explore how to identify, quantify and mitigate credit and counterparty risk from derivatives and long term contracts. Case studies will illustrate practical applications based on gas, electricity and oil markets. We will review the critical components to establish sound credit risk management policies and procedures. Delegates will learn about applications of recent methodological developments such as counterparty potential future exposure (PFE), Credit Valuation Adjustments (CVA) and probability of default calculations. The course will also introduce applications of various counterparty risk mitigation tools such ISDA agreements (with emphasis on netting and collateral clauses), guarantees, pre-payments and credit derivatives.

This highly interactive workshop uses practical case studies, Excel exercises and group discussions to reinforce the concepts presented in the lectures. The workshop will focus on practical applications of various methodologies and tools to improve credit decisions.

This course provides an overview of energy derivatives and physical markets as well as the main instruments traded in those markets. We will explore the main differences between physical and paper transactions and also between exchange-traded and OTC products. We will show how to trade and understand the risk of futures, forwards and swaps to mitigate market risk. The course will also provide an overview of option contracts and hedging and speculation strategies using options and simple structures. We will cover strategic and tactical issues around hedging with Energy Derivatives and will explore alternative hedging alternatives for producers and end-users. The course will introduce exotic options, as well as options on spreads and multiple assets and the use of those options in hedging programmes.

Energy Derivatives Pricing, Hedging and Risk Management (DPH2) builds on the concepts and instruments presented in Energy Derivatives Markets, Instruments and Hedging (DPH1) and provides an overview of Energy derivatives Pricing and Risk Management.

We will start with a review of Energy Price Behavior, Probability and Statistics and various Excel exercises with hands-on calculations of various risk statistics. As a review and extension of some of the structures presented in DPH1, a common framework to analyze derivatives structures and long term contracts is also presented.

The course also covers an introduction to derivatives pricing models and relevant accounting rules such as FAS 157. Implied volatility and "Greeks" are presented using practical exercises. The course also covers analysis of structured products used by producers and end-users such as extendable swaps; spot price models, geometric brownian motion and mean-reverting models for pricing and risk analysis; market risk with particular emphasis on VaR; basis risk and derivatives in energy markets with an overview of hedge effectiveness under FAS 133. The course concludes with an overview of stress testing for energy derivatives portfolios.

This course provides an introduction to gasoline and diesel fuel technology. Presentations include refining, blending, specifications, performance, environmental aspects and the use of additives. Current and future challenges faced by the motor manufacturers, oil and additive industries will also be addressed.

This course provides an overview of the oil supply chain from upstream, transportation of crude oil from the source to the refinery through processing, trading and distribution.

It is designed for new entrants to the oil industry. This course is ideal for use as part of an induction programme or for bringing those transferring disciplines up to speed. Those without prior knowledge of the oil industry may wish to familiarise themselves through our "Introduction to the Oil Industry" web-based course. Through the medium of continuous case study, delegates will address day-to-day problems in order to understand the relevant commercial driving forces in this area.

After learning the fundamentals, delegates will cover the valuation of crude oil. Ocean tanker transport and freight will be explored together with a basic overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Key aspects of product quality will be covered together with the major refining processes needed to achieve them. The refining interface with petrochemicals will also be covered. The course moves on to cover oil markets and pricing and an introductory guide to paper markets and simple hedging.

This course provides an overview of the oil supply chain from upstream economics, transporting crude oil from source to the refinery through processing, trading and the retailing of oil products. It is designed for new entrants to the oil industry. This course is ideal for use as part of an induction programme or for bringing those transferring disciplines up to speed with the area. Those without prior knowledge of the oil industry may wish to familiarise themselves through our "Introduction to the Oil Industry" course. Through the medium of continuous case study, delegates will address day-to-day problems in order to understand the relevant commercial driving forces in this area.

After learning the fundamentals, delegates will cover the valuation of crude oil. Ocean tanker transport and freight will be explored together with a basic overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Key aspects of product quality will be covered together with the major refining processes needed to achieve them. The refining interface with petrochemicals, and retail/distribution will also be covered. The course moves on to cover oil markets and pricing and an introductory guide to paper markets and simple hedging.

32.5 Continuing Professional Development (CPD) credits awarded for this course. Authorised by The Law Society of England and Wales.

This course covers the basic principles of oil trading and the markets. Through a variety of case studies, delegates will learn the techniques involved in trading and how to address day-to-day problems. During the week, in a continuous theme case study, syndicate groups will manage their own company positions of production, refinery supply, product purchase/disposal and speculative trading, while reacting to new positions generated and changing market prices which simulate a live situation. Delegates will have the opportunity to trade both structured and live markets. It is recommended that delegates should have attended "International Oil Supply, Transportation, Refining and Trading" (SP1) or have working knowledge of the subjects covered in that course.

After reviewing the background of supply, refining and transportation, the course focuses on the key markets, pricing and the mechanisms involved in trading. Aspects of the various exposures encountered in trading are covered together with an introduction to price risk management. Syndicate exercises will address each skill required. Additionally, during the week, in a continuous theme case study, each syndicate group will manage their own company positions of production, refinery supply, product purchase/disposal and speculative trading, reacting to new positions generated and changing market prices which simulate a live situation. Delegates will have the opportunity to trade both structured and live markets.

The principal aim of this course is to expose delegates to a comprehensive training on power and gas trading and risk management in an applied context.

The course will enable participants to gain a practical working knowledge of gas and power market structure, main players and common traded instruments. Delegates will gain a practical understanding of the various dimensions of risk in gas and power markets and the various tools to manage and transfer those risks.

We will present new approaches to hedge energy exposures with derivatives as well as useful techniques to unbundle gas and power structures in long term contracts and physical assets. Particular emphasis is placed on the use of derivatives as well as physical assets and contracts to manage price, credit, volumetric, and operations risk.

This course provides the detailed practices and techniques involved in successful trading operations in today-s international crude and product markets. It has been designed for front, middle and back office personnel who need a detailed insight into trading operation best practice and emphasizes the operational factors which have impact on corporate profitability and risk. It will also appeal to personnel who have recently joined an oil trading group of an oil major, investment bank or commodity trading company. Much of the work will be carried out in syndicate groups where teams will simulate real in-company practice, working with other delegates drawn from a wide background of disciplines in the industry.