Course description
Clearing 101: Exchanges, Clearinghouses and CCPs
Join us for a short program (90 minutes each day for 2 days) that explains the multilateral systems that provide the infrastructure for transferring, clearing and settling payments, derivatives and other financial transactions among financial institutions and end users. Following Dodd Frank, clearinghouses became designated as Systemically Important Financial Market Utilities, vital to the operations of the financial markets and subject to heightened regulatory scrutiny. Buyers and sellers in exchange transactions rely on clearinghouses to intermediate transactions and to manage credit risks between trading parties. As such, clearinghouses promote transparency, efficiency, and stability by providing market-based pricing, daily settlement, and ensuring adequate capitalization for markets to function. The financial markets are transitioning away from LIBOR with key transition dates and deadlines only months away. LIBOR is implicated in virtually every interest rate swap on the planet used in hedging a broad assortment of loans, bonds and other securities. This month, the Bank for International Settlements reports that $363 trillion in the global swaps market will be impacted. The magnitude of this transition cannot be overstated. Join IFM’s instructor-led virtual course to better understand the implications of this change, hear practical guidance on the process, evaluating various reference rates and their mechanics, and key risks along the way. Use this course as an opportunity to learn what you need to know about the LIBOR transition and confidently map out a transition strategy.
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Suitability - Who should attend?
Who Should Attend
The workshop is suited for a broad range of participants including:
- Users of cleared derivatives markets such as institutional investors, money managers, producers/suppliers, as well as manufacturing and distribution companies
- Support, operations, sales, and marketing personnel at FCMs
- Public policy markers
- Staff in trading, risk management, financial and legal departments
- Potential users of futures, options and swaps markets
Outcome / Qualification etc.
Learning Outcomes
After the course you will be able to:
- Understand financial market infrastructure with an emphasis on the critical function and benefits of clearinghouse operations.
- Describe the key roles of clearing parties including CCPs, clearing members, customers, and the U.S. Commodity Futures Trading Commission (CFTC).
- Explain the principles of novation and how CCPs reduce processing costs, enable multilateral netting, prevent the accumulation of losses.
- Describe the critical role that margin (both initial and variation) and the mandate of segregated funds play in ensure liquidity and market stability.
- Know the basic portfolio margining methodologies at the CME, ICE and Options Clearing Corporation.
- Understand the default management plans and resolution rules as required by CFTC.
- Describe the CCP’s assessment powers and default waterfall used to satisfy a defaulting clearing member.
- Be familiar with the cleared swaps and OTC markets, similarities, and differences.
- Understand past bankruptcies and bankruptcy considerations.
Course delivery details
Live, virtual instruction for 90 minutes per day on two (2) consecutive days. IFM's shorter sessions allow attendees the flexibility to fit education into their work day. IFM's live course offers the benefit of a live education — including the ability to interact with other attendees and our knowledgeable faculty — without the travel expense or days away from work.
Why choose The Institute for Financial Markets
Nonprofit educational foundation founded that offers top-quality education at the lowest cost
Qualified instructors who have real world working experience at major films and regulatory agencies
IFM instructors are passionate to share the knowledge gained from real world working experience at major firms and regulatory bodies
Reviews
Average rating 5
The course was well organized, interactive and very well presented.
The instructor was really engaging and knew the content well.
Will recommend because class is small. Interactive class was a huge (and unexpected) asset.