Module 2: Introduction to Hedging on the LME with Futures

1 day 14 Dec 2016, Dubai UAE £800.00 Download brochure Add to basket
1 day 22 Feb 2017, London UK £800.00 + VAT* Download brochure Add to basket
1 day 29 Mar 2017, Dubai UAE £800.00 Download brochure Add to basket

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Overview

Programme

  • Overview of the LME market
  • Basic concepts, uses and benefits of hedging with futures
  • Introduction to risk and price volatility
  • Long, short, transactional, and strategic hedges
  • Costs of hedging
  • Carries
  • Using the right hedging instrument
  • Hedging with Monthly Average Futures
  • Hedging workshops

Is this course for you?

This course is suitable for you if you want to know more about metals futures and the management of price risk on the LME. It is advised that you take 'Introduction to the LME' before attending this course to fully benefit from this session.

What will you learn

  • Learn how effective price risk management can be achieved with LME services
  • Understand the benefits of hedging with futures across all sectors of industry
  • Work through interactive workshops on hedging futures
  • Gain an understanding of the role that clearing and LME Clear play in establishing trades

Benefits for you

This course aims to provide you with a fundamental knowledge of price risk management in the metal industry. You will develop a comprehensive and practical understanding of the benefits of hedging with futures through highly interactive workshops which are based on typical examples of the types of risk scenarios prevailing in the metal industry.


Benefits for your organisation

This course will help your organisation by highlighting the key benefits of hedging futures in terms of minimising the impact of price volatility. The interactive format of the course gives employees the knowledge of how to apply hedging theory within the context of their organisation.

Pre-requisites

Previous knowledge of the LME.

Benefits for your organisation

Organisations will benefit from employees who have a clear understanding of how the LME operates and how its core services of pricing, hedging and delivery can benefit the company.

Pre-requisites

None

Who should attend

This course is suitable if you are new to the physical trading industry and want to understand the procedures and terminology of physical trading. It would also be suitable if you are from the physical or financial services industries and wish to understand the value that LME services can bring to your physical transactions.

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Emma Jenkins - Metals Only

Emma has a First Class Honours degree and gold medal in Mathematics from Trinity College, Dublin, and over 20 years of banking experience.

She commenced her banking career with Goldman Sachs and initially her roles were mathematically focussed and she worked as a quantitative analyst on swaps, interest rate options and FX desks implementing pricing and risk management models for traders, salespeople and risk managers. She became involved in commodity markets in the late 1990s when she joined Credit Suisse in Sydney as a marketer of structured gold derivative products. Shortly thereafter she transferred to the London office and was instrumental in the integration of the short-date flow and structured derivatives businesses.

At Credit Suisse, she developed her specialised commodity skills through vanilla and structured transactions on a physical and paper basis with the spectrum of participants in the metals markets, in both derivative and lending markets.

She subsequently moved to Macquarie Bank as a director specialising in precious and base metals derivatives sales. Her clients used both LME futures and OTC derivatives. She worked closely with the bank's base metals traders to determine how the bank would hedge exotic OTC derivatives with LME futures.

Delegates on her courses have ranged from central banks and regulators, large miners, traders and manufacturers, wealth managers, through to small import/export businesses, thereby giving her a unique insight into the issues facing the many market participants.

Her consultancy work has included:

  • Valuing embedded derivatives in base metals physical contracts and determining appropriate derivative hedges
  • Negotiating copper prepaid financings with long-dated copper options
  • Analysing the metal risk position of a copper components manufacturer and recommending a hedge strategy combining physical, LME and OTC products
  • Significantly reducing an insurance claim arising from delayed metal shipments by demonstrating how a derivative hedge would have reduced losses
  • Acting as an expert witness on behalf of an LME member with respect to disputed aluminium OTC swaps
Dubai
Emma Jenkins - Metals Only

Emma has a First Class Honours degree and gold medal in Mathematics from Trinity College, Dublin, and over 20 years of banking experience.

She commenced her banking career with Goldman Sachs and initially her roles were mathematically focussed and she worked as a quantitative analyst on swaps, interest rate options and FX desks implementing pricing and risk management models for traders, salespeople and risk managers. She became involved in commodity markets in the late 1990s when she joined Credit Suisse in Sydney as a marketer of structured gold derivative products. Shortly thereafter she transferred to the London office and was instrumental in the integration of the short-date flow and structured derivatives businesses.

At Credit Suisse, she developed her specialised commodity skills through vanilla and structured transactions on a physical and paper basis with the spectrum of participants in the metals markets, in both derivative and lending markets.

She subsequently moved to Macquarie Bank as a director specialising in precious and base metals derivatives sales. Her clients used both LME futures and OTC derivatives. She worked closely with the bank's base metals traders to determine how the bank would hedge exotic OTC derivatives with LME futures.

Delegates on her courses have ranged from central banks and regulators, large miners, traders and manufacturers, wealth managers, through to small import/export businesses, thereby giving her a unique insight into the issues facing the many market participants.

Her consultancy work has included:

  • Valuing embedded derivatives in base metals physical contracts and determining appropriate derivative hedges
  • Negotiating copper prepaid financings with long-dated copper options
  • Analysing the metal risk position of a copper components manufacturer and recommending a hedge strategy combining physical, LME and OTC products
  • Significantly reducing an insurance claim arising from delayed metal shipments by demonstrating how a derivative hedge would have reduced losses
  • Acting as an expert witness on behalf of an LME member with respect to disputed aluminium OTC swaps

Venue

Dubai

Central Dubai Hotel

This programme takes place on a non-residential basis at a central Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration. Typically the course venue will be confirmed 2-3 weeks before the course start date.

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

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.

 

Agenda

Agendas are localised, please select your preferred location.

What will you learn

  • Overview of the LME market
  • Basic concepts, uses and benefits of hedging with futures
  • Basic hedging examples
  • Contango and backawardation
  • Setting up a hedging team
  • Hedging with LME swaps
  • Examples – Average annual price-fix hedging LME swaps
  • Risk considerations and locking in contangos.

What will you learn

  • Overview of the LME market
  • Basic concepts, uses and benefits of hedging with futures
  • Basic hedging examples
  • Contango and backawardation
  • Setting up a hedging team
  • Hedging with LME swaps
  • Examples – Average annual price-fix hedging LME swaps
  • Risk considerations and locking in contangos.
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