School of Derivative Instruments

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Derivatives markets have witnessed significant change in the years following the financial crisis, not only in how they are regulated, but in the market structure for the trading and clearing of derivative instruments, and in how they are priced.
This programme will provide delegates with a detailed understanding of how these changes have impacted the derivatives landscape, and will be of particular interest to those in client-facing positions and those who are operating in back and middle office functions, who require a comprehensive overview of the changes and how they affect operations.

Course Objectives
This four-day derivatives training programme has been designed to provide delegates with a thorough understanding of the derivatives market place for both OTC and ET and, in particular, how banks use derivatives on a day-to-day basis to manage both their own exposures and to provide solutions to their customers.

  • Day 1 of the programme provides delegates with a comprehensive general knowledge and understanding of the major classes of derivatives, distinguishing between linear and non-linear derivatives.
  • Day 2 concentrates on market structure, highlighting how the regulatory framework has evolved since the financial crisis and the specific implications for the trading and clearing of derivatives, notably those executed in the OTC market; trading mechanics and the critical differences between OTC and exchange-traded derivatives, as well as covering recent developments which has seen OTC instruments booked “on-exchange” and centrally cleared.
  • Day 3 covers the important area of valuation for those derivatives where there is no direct market price discovery. The emphasis will be placed on cash flow analysis and how valuation approaches have changed since the financial crisis.
  • Day 4 explains, by way of specific examples, how banks use derivatives for their own and customer benefit. The first part looks at specific solutions for customers and focuses on the role of swaps in the primary issuance business, and managing customer FX exposures; whilst the second looks at financial engineering, and more specifically, at how derivatives can be used to reduce funding costs and/or as a means of the bank earning fees without taking a proprietary position, whilst at the same time providing investors with instruments that meet their risk/reward requirements.

Key Learning Points
  • What is a derivative?
  • How and why are they used in practice?
  • How do exchange traded derivatives and OTC derivatives differ?
  • Clearing procedures for exchange-traded and OTC derivatives
  • Understanding the principal money market derivatives and how they are used to manage interest rate risk
  • Swaps and how banks and other institutions use them
  • Prima on options and their application in the management of FX risk

Course Training Method

The programme will use traditional and well-tried techniques, lectures, worked examples and many realistic case studies showing in detail how the products are used and why. The course has been designed to show the products in a highly practical way, without over-complication, with clear illustrations of each so that participants may readily understand them and the role the bank plays.

Who Should Attend

The course should be of interest to those who are just starting their careers in investment banking, or those with some experience who are involved in support functions within the bank, notably, those in product control, compliance, legal, IT, and other back and middle office functions. In addition, it will be help relationship managers, sales and other individuals in client-facing roles that involve the identification and marketing of derivatives to corporate customers.

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Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:

Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.


We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:

Read more about our offering or complete a call back request to speak to a learning specialist.


Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product