PRIME BROKERAGE. 3 day training course

Transcription

1 PRIME BROKERAGE 3 day training course

2 Prime Brokerage Course Overview This Prime Brokerage course is a first of its kind in South Africa and is designed to meet the needs of all professionals involved with prime brokerages. The course will equip delegates with the knowledge required to fully understand, appraise and operate prime brokerages. Delegates will learn the theoretical foundations and will be submersed into rich case studies, real-live experiences, practical prime brokerage knowledge and simulation-exercises. At the end of three days, delegates will have a comprehensive set of practical tools ready for immediate implementation. The course goes into the detailed mechanics of prime brokerage and relevant securities lending, OTC derivatives and collateral management and will then enumerate different hedge fund strategies and fundamentals. The delegates will then acquire a comprehensive risk management overview and list of risk management pitfalls before finishing off with a detailed view of the financial crisis using Lehman s and Bear Stearns as examples. In addition, the course will cover Reg 28, international prime brokerage structures, up-to-date global trends and innovations, and how you might use them for product development and gaining a strategic advantage in South Africa. The course will be delivered by Marilyn Ramplin: Founder of Ramplin Capital a hedge fund consultancy that assists international hedge fund clients raise capital, develop strategies, optimises operations and develop world class risk management solutions. Ramplin Capital s global clients also include major investment banks, including prime brokers, international regulators and hedge fund investors. Ramplin Capital has delivered hedge fund training courses in America, UK and across Europe. Prior to Ramplin Capital, Marilyn was an Executive Director with JP Morgan s Prime Brokerage in London and was part of the Bear Stearns acquisition during the financial crisis. She was previously a risk arbitrage trader for a multi-billion dollar US hedge fund, has in-depth OTC derivatives experience and developed credit counterparty risk models for clients like the Bank of International Settlements. Marilyn is the founder of the UCITS University and the International group UCITS for Hedge Funds. Marilyn is also an independent director for a number of Luxembourg based hedge funds and a UCITS platform. In South Africa Marilyn sits on the board of Strate. Marilyn will combine her practical experience of prime brokerage and passion for hedge funds in delivering this course. This program is aimed at: All Prime Brokerage Staff including: -Legal -Risk Management - IT Hedge Fund Operations -Chief Operating Officers -Head of Operations Hedge Fund Investors -Responsible for due diligence Hedge Fund Governance -Regulators -Auditors Course Outline Mechanics of Prime Brokerage Fundamentals of hedge funds Different hedge fund strategies Stocklending and Collateral Management Prime Brokerage Risk Management Hedge Fund risk management parameters to monitor Lessons from the financial crisis (Bear Stearns and Lehman case studies) International Prime Brokerage Structures Prime Brokerage Product Development

3 Prime Brokerage Course Agenda Mechanics of Prime Brokerage Hedge Funds & Strategies Prime Brokerage Definition of Prime Brokerage Clients of Prime Brokers Physical vs. Synthetic Prime Equity Prime Brokerage Fixed Income Prime Brokerage Equity finance structures Prime Brokerage Services Leverage Securities Lending / Short Selling Rehypothecation OTC Derivatives Counterparties Trade Execution Clearing Settlement Custody Asset Servicing Risk Management Capital Introduction Operational / Technology Support Consulting Services Other Prime Brokerage Models Multi Prime Prime Custody Managed Accounts UCITS & Prime Brokerage International Prime Brokerage Structures US vs. European Prime Brokerage structures US protection of prime brokerage client assets (Lehman case study) International regulatory changes post the crisis South African regulatory and legal framework Characteristics of a Hedge Fund Definitions of a hedge fund Short selling Leverage Hedge Fund Fee Structures Management fees Performance fees High water mark Hurdle rate Redemption fees Different Hedge Fund Strategies Long Short Merger / Risk Arbitrage Distressed Convertible Arbitrage Global Macro CTA Credit Fixed Income Arbitrage Statistical Arbitrage Volatility Arbitrage Multi-Strategy Fund of Hedge Funds Prime Brokerage Product Development Opportunities Regulation 28 UCITS 130/30 Mutual Funds

4 Prime Brokerage Course Agenda Stocklending and Repo PB Risk Management Mechanics of Securities Lending What is securities lending / repo Prime Brokerage and securities lending Stocklending intermediaries Securities lending vs. cash Cash reinvestments Securities lending vs. securities Overnight vs. term loans Collateral Management Eligible collateral, Collateral terms, Haircuts Margin calls (Initial vs. variation margin) Collateral valuations Corporate events Dividends / Coupons Voting Rights issues Risk Management Risk management and default procedures of counterparties Securities lending lessons from the crisis Collateral Management Why collateral management Counterparty exposure OTC derivatives collateral management Futures clearing Central Clearing for OTC derivatives Rehypothecation Pledge vs. title transfer Monitoring counterparty exposure o Hedge Funds o Other Banks o Stocklending partners Lehman case study Bear Stearns case study Prime Brokers and the Financial Crisis Impact of the financial crisis on Prime Brokers and the resulting impact on hedge funds Balance Sheet constraints Credit Ratings Managing Prime Brokerage risk to other prime brokers Systemic risk of a prime brokerage failure on the market Impact of the financial crisis on hedge funds Hedge Fund transparency and side pockets Hedge Fund investor risk Hedge Fund failure and the impact on prime brokers Hedge Fund risk management parameters to monitor: VaR Drawdowns Time under water Regulatory Structure Liquidity Risk / Lock Ups Manager Risk Style Drift / Strategy Risk Valuation Risk Capacity Risk Concentration Risk Leverage Risk / Credit Risk Market Risk Key manager risk Perfection of Collateral Crowded Shorts Regulatory Risk Hedge Fund Failures Case studies of the factors behind the collapse: Amaranth, Peloton, Carlyle, Bayou, Madoff, Galleon, Long Term Capital

5 Registration Registration Register online at or back the following registration form to Yes, please register me for the Prime Brokerage course August 2011 Johannesburg Delegate details Mr/Mrs/Ms Surname First name Position / Department Company Address Telephone I have read and understood the booking terms and conditions Signature Date An invoice will be sent on receipt of registration. For security purposes we only accept credit card payments online at All fees must be paid prior to course start date. Fees include tuition, documentation, lunch and refreshments. Delegates are responsible for their own accommodation. Course Dates August 2011 Johannesburg FEE: R Group Bookings Discounts 2 delegates - 5% discount 3 delegates - 10% discount 4 delegates - 12% discount 5 delegates - 15% discount Discounts are available for delegates from the same organisation attending the same course. In-House Training The following course can also be arranged in-house and can be tailored according to the needs of your organisation. Call Fax courses@hedgefundacademy.co.za to book a group course. Disclaimer Hedge Fund Academy reserves the right to change or cancel any part of its published programme due to unforeseen circumstances. Postal Address: Private Bag X11, Postnet Suite 12, Birnam, 2015 Cancellation policy Cancellation or transfer requests must be made in writing (letter or fax) and reach this office 20 working days before the course commencement date. A full refund less a R500 administration fee will be given. Delegates who cancel less than 20 days before the course commencement date, or who do not attend, are liable to pay the full course fee and no refunds will granted. If you wish to transfer to a different course within a six month period, and you have paid your course fee in full, you will be invoiced a 25% additional charge to transfer your registration and any difference in course prices. You will not incur any additional charges if you wish to send a replacement delegate and your registration meets the above terms. Incorrect mailing Please accept our apologies for mail which is incorrectly addressed. Should you wish to amend the address/ addressee details, please send us an at info@hedgefundacademy.co.za to update our records accordingly.