Coal Trading and Risk Management Training Course

Transcription

1 organised by: An intensive training course from Coaltrans Conferences Coal Trading and Risk Management Training Course Mastering essential trading and risk management techniques 2-4 July 2007 Crowne Plaza London The City London, UK Attending this intensive and highly-focused three-day training course will enable you to: Gain an in-depth analysis of the current physical and financial coal markets Grasp the fundamental mechanisms of derivatives trading Develop effective trading and hedging strategies adapted to your requirements Strengthen your understanding of options and learn to utilise them as a risk management tool Integrate freight and emissions as drivers in your trading strategy Profit from trading dark and spark spreads Devise key risk management indicators and optimise their use Understand the benefits of technical analysis for coal trading Manage counterparty risk via clearing and contract provisions Take away key lessons to set up and develop a trading desk in the most efficient way whilst avoiding the pitfalls save 10% Book by 18 May 2007 official publication supporters

2 Coaltrans intensive training course will boost your practical understanding of trading and risk management, and improve your skills by equipping you with valuable day-to-day tools that can be applied as soon as you are back in the office. Who should attend? This intensive course is designed for executives in the coal, energy and commodity sectors that are seeking practical insights to trade and manage risk in full confidence and with increased sophistication. The course will benefit participants that are entering the market, as well as those who may have an understanding of physical commodity trading, or experience with financial products in general, and are looking to move to the next level in the coal arena. Recent Coaltrans Coal Trading and Risk Management training courses were attended by executives in key energy, mining, utility and trading companies in the UK, Europe, South Africa, Latin America, Asia and the USA, including: Coal producers Coal buyers Coal sales and marketing managers Energy traders and marketers Bank and financial institution executives Shipping and logistics managers Importers / Exporters Energy brokers Middle- and back-office managers Risk managers Coaltrans Conferences organises leading international coal conferences, which attract delegates from all over the world. It also runs focused regional events, exhibitions, field trips and training courses, with a reputation for employing the highest organisational standards. Coaltrans regularly runs events in Europe, Australia, China, India, Indonesia, Singapore, South Africa, the USA and the UK. course outline The core objectives of this course are to achieve a practical, working understanding of key risk management and speculative trading tools in the coal and dry bulk shipping markets including structured deals, dark and spark spreads, freight derivatives, coal contract provisions, clearing and options. Hands-on training and long-lasting benefits Throughout the course, teaching will be reinforced with practical examples and exercises inspired from day-to-day trading situations. The programme will also draw upon the hands-on experience of a panel of expert guest speakers who will share their views on best practice and offer pragmatic advice on the trading and risk management tools most vital to their success in the field. Enduring value: Delegates will take away beneficial reference materials as well as advice on pursuing their training. venue Crowne Plaza London The City. The hotel is perfectly located by Blackfriars Bridge and underground station. It is metres from the River Thames and at the centre of Europe s most vibrant financial and business district, whilst only a short distance from West End attractions. Boasting deluxe accommodation and facilities, it provides the ideal environment for business training.

3 training course agenda DAY ONE Monday, 2 July Registration and Coffee SESSION I Introduction and Trading Essentials Instructor and Course Director: Topics Course outline The importance of risk management in coal and commodities trading Main coal derivatives products traded: Definition, methodology, volumes Market structure: Principals and intermediaries, brokers, exchanges Overview of new products recently launched Indispensable trading glossary 1030 SESSION II The Physical Coal Market Eoghan Cunningham, Chief Executive Officer, globalcoal Is physical coal a commodity? Role of globalcoal in the commoditisation of steam coal Views on future product development Managing price risk: Separating physical from financial risk for latest programme updates please visit our website on Lunch SESSION III Using Derivatives Tools for Trading and Risk Management Hedging physical positions with swaps Interactive risk management case studies for suppliers, end-users and traders Implied freight and arbitrage Links between physical and derivatives markets 1500 SESSION IV Structured Deals in the Coal Market Trading the forward curve: Backwardation and contango Tailor-made structured deals using available derivatives tools Worked examples: Deals from the producer, end-user and trader perspective 1630 SESSION V The Freight Market: A Key Driver for Coal Ian Staples, Derivatives Broker, Freight Investor Services Ltd (FIS) Analysis of freight supply and demand Understanding freight risk Impact of freight on coal trading Overview of the FFA market: Volumes and market structure Using derivatives to hedge freight risk Optional Tutorial An opportunity to further explore the material covered during the day Optional Video Case Study DAY TWO Tuesday, 3 July Registration and Coffee SESSION VI What Coal Traders Need to Know about Emissions Gilles Corre, Director, Evolution Markets Inc. Overview of the EU ETS: Volumes, volatility and market participants Mechanisms for carbon emissions reduction and impact on the EU ETS market Trading strategies in the carbon market 0945 SESSION VII Dark Spreads and Spark Spreads: Introduction Definitions Calculating dark spread and spark spread with and without emissions cost The increased importance of emissions costs in the coal market Quotes from previous London participants Overall I thought the course was superb, in just three days it covered all the basics of trading and coal derivatives. Also, I thought Guillaume's presentation style was excellent - very knowledgeable, relaxed and informative.

4 Coal Trading and Risk Management July 2007 SESSION VIII Dark Spreads and Spark Spreads: Trading Illustration SESSION X What Traders Do and How it Works SESSION XII Clearing: Another Alternative to Solve Counterparty Risk Olivier Montfort, Director of Commodity Trading Strategy, Merrill Lynch Why and how to trade dark and spark spreads? The utility perspective and the trader perspective Trading strategies, risks and opportunities 1200 Networking Lunch SESSION IX Options (with break) Definitions Put, calls, strikes, premiums and other essential concepts Using the Black Scholes model Practical examples: How traders use options Risks and opportunities with options 1530 Step-by-step worked example of a derivative deal and implications for the trader Different ways to trade: OTC or through exchanges Required infrastructure to support trading activities Practical perspective: Screen shots 1730 Optional Tutorial An opportunity to further explore the material covered during the day Networking Reception DAY THREE Wednesday, 4 July Registration and Coffee SESSION XI An Easy Guide to Understanding Quantitative Indicators The International Coal Trading Mark-to-market: Implications and Market 2007 potential issues By Guillaume Perret Volatility, value-at-risk: Definitions and easy ways to calculate these indicators Comprehensive study of derivative indices, methodology and volumes Avoiding a false sense of security Insightful analysis and perspectives on the latest Introduction to more sophisticated products risk management software In-depth review of market structure, brokers, exchanges, principals 1000 Physical coal market flows with detailed maps of main hubs Overview of the main clean coal technologies Quotes from previous London participants Price Order your copy A comprehensive overview of the now and Special coal derivatives market save 10% 10% discount for training Very good and interesting. Gave me a See course participants back page for details. good understanding of financing issues within the coal market Jason Pegley, Head of Utility Markets, ICE Futures Clearing mechanisms and the different parties involved: Exchange, clearing house, clearing members Implications for participants: Markedto-market, initial margins, daily margins, cash flows Interactive examples ICE Futures and the coal market: Update and perspectives SESSION XIII Technical Analysis Phil Roberts, Chief European Technical Analyst, Barclays Capital Fundamentals of technical analysis: Trends, support, resistance Other tools: Momentum, patterns and relative strength Applications to commodities and the coal market 1230 Networking Lunch SESSION XIV Setting Up and Developing a Derivatives Desk (with break) Guillaume Perret, Director, Requirements to set up and develop a trading activity: Credit, legal, compliance, IT Typical trading floor organisation: Small and large companies departments, responsibilities and interconnections Common mistakes to avoid in commodities trading Course wrap-up Next steps, questions and answers 1600 End of Training Course

5 Teaching Faculty The expert faculty gathers executives and practitioners from a range of companies actively involved in different areas of the international coal business including utilities, shipping and banking. Teaching method includes lectures, examples drawn from real business situations, group exercises and interactive discussion. Delegates will have ample opportunity to question each speaker to make the most of their expertise and experience in the field of coal trading and risk management. Course Director: Guillaume Perret, Director, Guillaume Perret has over ten years of experience in commodities trading and shipping. Before establishing his own consulting business in 2005, he spent five years with the German utility RWE Trading in London, setting up and developing the steam coal and freight trading activities and concluding structured deals with third parties. Between 1995 and 2000, he worked as a trader with Louis Dreyfus Negoce in Paris, trading international grains and chartering physical vessels. His consulting business,, focuses on steam coal, solid fuels and freight risk management as well as the establishment and development of trading activities, both physical and financial, based on his extensive handson experience in trading for front offices. He has also earned an MBA from the London Business School and Kellogg School of Management. Gilles Corre, Director, Evolution Markets Inc. Gilles Corre leads Evolution Markets emissions brokerage operation in Europe, directing the company s industry-leading European emissions allowance and Kyoto credits brokerage desk and providing structured transaction services for global emissions credits. Mr. Corre brokers transactions in Kyoto credits for utilities, manufacturers, financial institutions, and project developers. He also directs the company s business development activities for Europe, educating European emissions market participants and introducing new transaction structures. In addition, Mr. Corre advises European corporations and financial institutions on developing risk management programmes for the global carbon market, including transaction- oriented solutions for carbon allowances and structuring trades in carbon credits. Prior to joining Evolution Markets, he was a founder and senior executive of several technology companies, including firms in the software and technology consulting sectors. Eoghan Cunningham, Chief Executive Officer, globalcoal Eoghan Cunningham, CEO of globalcoal, has more than a decade of experience in international energy markets having worked in coal, natural gas, electricity, emissions, renewable energy and refined products/crude. Eoghan joined globalcoal from EDF Energy Plc where, as Director of Market Operations, he was responsible for all commodity trading including the purchase of 8 million tonnes of steam coal per annum. Olivier Montfort, Director of Commodity Trading Strategy, Merrill Lynch Jason Pegley, Head of Utility Markets, ICE Futures Jason Pegley joined ICE Futures, formerly the IPE, in December He is currently Head of Utility Markets. His primary role is to identify and develop new opportunities for the Exchange in European energy markets. Most recently this has involved the development and marketing of ICE Futures Rotterdam and Richard's Bay Coal Futures Contracts. He has been involved in the oil and energy industry since joining Petroleum Economics Ltd in Phil Roberts, Chief European Technical Analyst, Barclays Capital Phil Roberts is the Chief European Technical Analyst for Barclays Capital working within the bank's Global Technical Research Group. He joined the bank nine years ago and focuses on the FX, Fixed Income and Commodities markets. His role is to support the bank's traders, sales professionals and clients with technical ideas and strategies. Phil has been a Technical Analyst for nineteen years and prior to Barclays worked at three other major city firms. Ian Staples, Derivatives Broker, Freight Investor Services Ltd (FIS) Ian Staples is a derivatives broker at Freight Investor Services Ltd. He is based in London and trades Capesize, Panamax and Supramax markets. Previously he was a director of research at SSY Ltd in London and the editor/publisher of Lloyds Shipping Economist magazine. He graduated from London School of Economics. tel: fax: coaltrans@euromoneyplc.com

6 Coal Trading and Risk Management 2-4 July 2007, UK Four other ways to register The easiest way to register is online at (quoting brochure ref:) please quote this reference Fax: Ref: CT WEB Telephone: (quoting brochure ref:) Post: Coaltrans Conferences Ltd Nestor House, Playhouse Yard London EC4V 5EX, UK Delegate 1 Title...First Name...Surname... Job title Delegate 2 10% discount Title...First Name...Surname... Job title Delegate 3 15% discount Title...First Name...Surname... Job title Contact details Name of Company...Company Activity... Address Postcode...Country Telephone...Fax...VAT number... Fee and Payment details REGISTRATION FEE VAT is charged at 17.5%. Organisations registered for VAT in the UK may reclaim the tax, and delegates from outside the UK but within the European Community may also be able to reclaim the VAT. Organisations outside the UK and the EC should check with their excise authority as to which domestic fiscal regulations apply. The fee includes lunches and refreshments, tuition, training equipment and course materials. Number of delegates 1st delegate 2nd delegate (10%) 3rd delegate (15%) Early-Bird Price by 18/5/ VAT = VAT = VAT = Standard fee after 18/5/ VAT = VAT = VAT = HOTEL BOOKING: For hotel enquiries please contact Sarah Symons on or ssymons@euromoneyplc.com Payment to be made in one of three ways - please tick appropriate box: 1. Please debit my CREDIT CARD No. Visa/Access/Euro Amex Expiry... Date Signature Payment by bank transfer should be made through Lloyds TSB Bank plc, PO Box 72, Bailey Drive, Gillingham Business Park, Gillingham, Kent, ME8 0LS, account number , sort code: (all charges to be paid by sender) 3. CHEQUES should be drawn on a UK Bank and be made payable to Coaltrans Conferences Ltd. A receipted invoice will be sent to all delegates. Cannot attend? Please pass this brochure onto a colleague or you can purchase the documentation for 600. Tick here if you would like to purchase the material Tick here to purchase a copy of The International Coal Trading Market 2007 Cancellations All cancellations must be received in writing by 5 June 2007 for a full refund, less a 10% administration charge. We cannot accept verbal cancellations. Cancellations received after 5 June 2007 are liable for the full course fee. However, substitutions can be sent to attend in your place at no extra charge. If owing to a force majeure, Coaltrans is obliged to postpone or cancel the event, Coaltrans is not liable for any travel or accommodation expenses incurred by delegates or their organisations. Please complete and return this form together with a copy of your credit card number, bank transfer or cheque, payable in to Coaltrans Conferences Ltd, and send by post or fax to: Coaltrans Conferences Ltd, Nestor House, Playhouse Yard, London, EC4V 5EX, UK. Tel: , Fax: coaltrans@euromoneyplc.com Data protection: The information that you provide will be safeguarded by Coaltrans, a division of Euromoney Institutional Investor PLC group, whose subsidiaries may use it to keep you informed of relevant products and services. We occasionally allow reputable companies outside the Euromoney Institutional Investor PLC group to contact you with details of products that may be of interest to you. As an international group, we may transfer your data on a global basis for the purposes indicated above. If you object to contact by telephone fax or please tick the relevant box. If you do not want us to share your information with other reputable companies, please tick this box Organisations that have recently attended Coaltrans training courses: Tenaga Nasional Berhad DCM Mining & Marketing Gauri International Corp Pty Ltd Voest Alpine Intertrading AG BBC Trading NV Electrabel ACOMINAS Companhia Siderurgica do Tubarao Teck Corporation TotalFina Elf CLP Power Hong Kong Ltd InterGen (HK) Ltd ABC Dubash Group Balaji Coke Industry Pvt Ltd Bhatia International Ltd BHP Billiton Coal India Limited CRISIL Advisory Services Larsen & Toubro Limited Reliance Petroleum Limited South India Corp Ltd Tata Metaliks Limited The Madras Aluminium Co Ltd The Tata Iron and Steel Company Ltd. United Shippers Ltd Usha Martin Industries Ltd Adaro Envirocoal Banpu Public Co Ltd PT Adaro Indonesia PT Arutmin Indonesia PT. Hutrindo PT Indominco Mandiri PT Indonesia Power PT Kaltim Prima Coal PT PLN (Persero) PT Powergen Jawa Timur PT Tambang Batubara Bukit Asam Samjoo Co Ltd NYK Line Petronas Mitco TNB Logistics Shanxi Coal Import & Export Group Corp Shenhua Coal Trading Company Tai Fung Trading Co, Ltd National Power Corporation EDP Producao Korea Midland Power Co Ltd Samtan Co. Ltd KRUTrade CSL Asia Shipping Pte Ltd Termoelektrarna Toplarna Barwil Coal Services ESKOM Eyesizwe Coal (Pty) Ltd Glencore South Africa (Pty) Ltd. Kumba Coal Lamberti Bach & Associates Spoornet Glencore International AG Rio Tinto Asia Ltd Banpu Minerals Co.Ltd WMH Stork RMO- Bulk Handling Trimex International FZE Barwil Agencies (UK) Ltd Carbones del Guasare, SA Hargreaves plc LE Group plc PowerGen UK Plc Spectron Futures Ltd EPDC