School of Coal TRADING & RISK MANAGEMENT. An intensive, highly-focused three-day training course. SUPER EARLY BIRD: Register by 17 June and save $500

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1 Accredited by School of Coal TRADING & RISK MANAGEMENT An intensive, highly-focused three-day training course September 2016 I Grand Copthorne Waterfront Hotel I Singapore SUPER EARLY BIRD: Register by 17 June and save $500 Expert instructors: David Barnes, Chief Representative - Jakarta, Knight Energy Services Limited Richard Richardson, Head of Asia, globalcoal Ryan Waters, Director, Asia Pacific, Intercontinental Exchange Hands-on training and long-lasting benefits Throughout the course, our teaching faculty will reinforce the learning process with practical examples and exercises, inspired by real trading situations, and giving you an insight into the trading and risk management tools you needed for success in today s market environment.

2 Course Objectives Develop a thorough understanding of physical & financial coal markets Understand the methodology of coal indices and how you can best use them Develop effective trading and hedging strategies Evaluate key risk management indicators and optimise their application in your business Explore the fundamental mechanisms of derivatives trading Analyse the use of options as a trading tool Who should attend What s included Coal Producers Coal Buyers Coal Traders Energy Traders Shipping Managers Logistics Managers Operations Managers Marketing Managers Coal Analysts Risk Analysts Financial Analysts Commodity Finance Teams Course Material Attendance certificate accredited by the CPD Certification Service Class Photo Refreshments & Lunches F Lawyers/Legal Counsel Compliance Officers Finance Managers Networking Evening Drinks on Day 1 2

3 Faculty Guillaume Perret Director Perret Associates Perret Associates is a consultancy established in 2006, specialised in the coal, freight, iron ore and steel sectors. Guillaume Perret has sixteen years of extensive experience in commodities trading. Before establishing his own consulting business, Mr Perret set up and developed the coal and freight trading desk for the German utility RWE in London and traded grains for the international trading house Louis Dreyfus. David Barnes Chief Representative - Jakarta Knight Energy Services Limited David has been based in Asia for more than 20 years and in Indonesia now for some 5 years. Having previously been in banking and running commodity finance divisions at some of the world s largest international banks, in 2009 David moved over to the corporate sector but remained in commodities with a particular focus on coal. David s role became focussed around the Survey and Inspection industry and in October 2015 he was offered a position in both Singapore and Jakarta with the Alfred H Knight Group. Since then he has established and now runs the Knight Energy Services Representative Office in Jakarta where it is developing its business in the coal and biomass. Richard Richardson Head of Asia globalcoal Richie Richardson began his career as a Freight Charterer and Coal Analyst at Coal Marketing Company (CMC) in Dublin. From there, he joined globalcoal for the first time as a Market Manager at the London HQ. On departing globalcoal for Asia in 2011, Richie enhanced his Coal Trading expertise at HC Trading in Singapore. This was followed by his appointment as Thermal Coal Trade Manager at Coeclerici Asia. He rejoined globalcoal as Head of Asia in March Richie holds a BA in Management Information Systems (MIS) from Dublin Business School and an MBS in MIS from University College Dublin. Ryan Waters Director, Asia Pacific Intercontinental Exchange Ryan Waters joined ICE in June 2012 and oversees ICE s oil, coal, LNG, LPG and agricultural business in Asia. He is responsible for marketing international futures contracts throughout Asia, business development and promoting ICE's clearing services as well as the online front end trading platform WebICE. Prior to joining ICE, Ryan worked for Concord Energy Pte Ltd in physical operations for crude oil and refined products. Ryan has a bachelor s degree in International Business from Macquarie University. 3

4 Day 1 Tuesday 27th September 2016 Session 1: Introduction to the steam coal physical market Market analysis and forecast in the short, medium and long term Course outline and organisation Introduction to teaching faculty and delegates The importance of risk management in coal and commodities training Share Perret Associates most recent analysis, and forecast in the short, medium and long term Session 2: Key quality parameters relevant for steam coal pricing David Barnes, Chief Representative - Jakarta, Knight Energy Services Limited Which are the most important quality criteria for steam coal? How are they determined? How do they impact on prices? Session 3: The steam coal derivatives market Main coal derivatives products: historical trading volumes, liquidity, volatility and methodology The permanent evolution of the market structure and new entrants principals, brokers, exchanges How does a financial swap work? New products in development Case studies: interactive risk management examples for suppliers, end users and traders Session 4: Using derivatives for risk management Case studies: interactive risk management examples for suppliers, end users and traders Networking drinks Relax after an intensive first day and network with fellow delegates over some drinks. 4

5 Day 2 Wednesday 28th September 2016 Session 5: Trading the physical coal market Richard Richardson, Head of Asia, globalcoal What is a commodity? Why is commoditization important? Is physical coal a commodity? Role of the physical SCoTA contract in thermal coal Where can you use SCoTA and how Physical contract pricing options & trends What s next for Asia when it comes to trading SCoTA? Session 6: Mark-to-market and forward curve What is mark-to-market and why is it so critical for trading companies? Implications and potential pitfalls Mark-to-market of financial and physical positions Price forecast versus forward curve What can we learn from contango and backwardation and why is the switch between the two critical? Case study: forward curve trading Session 7: What traders and brokers do: Over-the-counter trading mechanisms Step-by-step worked example of a derivatives deal Snapshot of trading screens. Screen trading versus voice trading Different ways to trade coal derivatives over-the-counter or through exchanges Required infrastructure to support trading activities Dealing in the iron ore swap market Developments in coking coal as it heads towards exchange traded swaps Session 8: Practical case study Interactive case study emphasising pitfalls to avoid in commodity trading Lessons to be applied in the coal market Practical case study 5

6 Session 9: Introduction to options Definitions call, put, strike, premium and other essential concepts Premium calculation and the Black Scholes Model Practical examples: How traders use options Risks and pitfalls Day 3 Thursday 29th September 2016 Session 10: Understanding risk management indicators Volatility, correlation, delta, value-at-risk and other risk measures Easy and useful ways to calculate these indicators Avoiding the false sense of security they can provide Introduction to more sophisticated risk management systems Session 11: Contracts and Pricing Formulas (new session) Best practice to decide on a price formula Pros and cons of pricing formula Which index to choose? Correlation between physical and paper Adjustments for quality Course Venue: Grand Copthorne Waterfront Hotel Overlooking the historic Singapore River, Grand Copthorne Waterfront Hotel Singapore is ideally located within easy reach of the Central Business District and the waterfront precincts of Robertson Quay, Clarke Quay and Boat Quay. This luxury hotel lets you experience the best of what Singapore has to offer. 6

7 Session 12: Clearing: Another way to address counterparty risk Ryan Waters, Director, Asia Pacific, Intercontinental Exchange What is clearing? Clearing mechanisms exchange, clearing house, clearing members Implications for market participants marked-tomarket, initial margins, daily margins, cash flows Interactive examples Session 13: Introduction to technical analysis What is technical analysis? Introduction to simple concept: support, resistance, trend, moving average, bars How can technical analysis be used in steam coal trading? Session 14: Setting up a derivatives desk and wrap-up Typical trading floor organisation and business models Departments responsibilities and inter-connections front office, risk management, back office, credit, legal Risk analysis and strategy implementation Requirements to set up and develop a trading activity Critical issues to consider and mistakes to avoid Course wrap-up and next steps Final questions and discussion 7

8 Coaltrans School of Coal I September 2016 Grand Copthorne Waterfront I Singapore please quote this reference The easiest way to register is online at coaltrans.com/schoolofcoal Ref: To enquire about the conference enquiry@coaltrans.com Telephone: (UK) (HK) SUPER EARLY BIRD FEE $4399 (BY 17 JUNE 2016) I EARLY BIRD FEE $4699 (BY 12 AUGUST 2016) STANDARD FEE $4899 (AFTER 12 AUGUST 2016) Fee includes: 1. Attendance to all conference sessions 2. Full conference documentation, which includes copies of all available speakers papers 3. Refreshments, lunches and evening receptions Delegates n 1st n 2nd n 3rd Super Early Bird Register By 17 June 2016 $4399 $3799 $3399 DELEGATE RATES Early Bird Register By 12 August 2016 $4699 $4099 $3699 Standard Rate $4899 $4299 $3899 Saving $600 $1000 IT IS IMPORTANT TO FILL OUT ALL THE INFORMATION BELOW Please photocopy this form for multiple bookings BY COMPLETING THE DETAILS BELOW YOU ARE AGREEING TO OUR CANCELLATION TERMS AND CONDITIONS* 1 st Delegate details Mr/Mrs/Ms First name Surname Tel Confirmation will be sent to the provided above only. For group discounts of 4 or more delegates, please contact our team by phone or on or enquiry@coaltrans.com Organisation details Company Name Address Postcode Country Group Contact Invoice will be sent to the provided above Please select the criteria from the below list that best describe your company type: n Coal buying n Coal trading n Coal: Financial sector n Coal: Logistics and shipping n Coal production n Coal: Consulting/Journalism/Research/Law n Coal: Government n Coal: Mining Services provider PAYMENT - FROM xxxxxxxxxxxxxxxxxxxxxxxx, ONLY PRE-PAID REGISTRATIONS OR WEBSITE BOOKINGS (coaltrans.com/schoolofcoal) will be accepted Payment may be made in one of two ways - please tick appropriate box n 1. To make a payment by credit card, please visit coaltrans.com to book and pay online n 2. Payment by BANK TRANSFER (Bank details will be displayed on your invoice) 2 nd Delegate details Mr/Mrs/Ms First name Surname Tel Confirmation will be sent to the provided above only. $1000 DISCOUNT 3 rd Delegate details Mr/Mrs/Ms First name Surname Tel Confirmation will be sent to the provided above only. $1500 DISCOUNT 4 th Delegate details Mr/Mrs/Ms First name Surname Tel Confirmation will be sent to the provided above only. HOTEL Accomodation is available at the xxxxxxxxxxxxxxxxxxxxxxxxxxx *CANCELLATIONS Conference fee: By completing this registration form, you are agreeing to the terms and conditions whereby you are liable for the full conference fee. All cancellations must be received in writing by xxxxxxxxxx 2016 for a full refund, less a 10% administration charge. We cannot accept verbal cancellations. Cancellations received after by xxxxxxxxxx 2016 are liable for the full conference fee. However, substitutions can be sent to attend in your place at no extra charge. Registrations received after by xxxxxxxxxx 2016 are still liable for the full conference fee in case of cancellation. If owing to a force majeure, Coaltrans Conferences is obliged to postpone or cancel the event, Coaltrans Conferences will not be liable for any travel or accommodation expenses incurred by delegates or their organisations. Badge swapping with other registered/non-registered delegates is against our company policy and will not be permitted. If you require a letter of invitation, please contact Coaltrans Conferences at events@coaltrans.com. Invitation letters will only be issued upon receipt of full payment. Cancellations due to unsuccessful visa applications will still be subject to the cancellation policy. Please note that we do not transfer credits to another conference. Use of your information: Coaltrans is part of the Euromoney Institutional Investor PLC group of companies. We will use your information to process your registration and communicate with you about it. As an international group, we may transfer your data on a global basis. We may monitor use of our websites. Subject to your choices below, we may use your data for marketing. By submitting your details, you indicate your consent to the use of your data as identified here. Read our full privacy policy at coaltrans.com. Marketing choices (these will be applied to all delegate contact details supplied on this form) Please tick if you don t want marketing from our group by telephone n, fax n, n, post n or from companies outside our group (including sponsors) n 8