Financial Markets Simulatin - Initial Evaluatin f the Practical Experience Highlights First-f-its-kind Financial Markets Simulatin experience. This is the Initial Evaluatin f the Practical Experience mdule in a series f linked mdules in the Financial Markets Simulatin Centre (FMSC) Fundatinal Prgram. Participants will have the pprtunity t evaluate their explratin and experiences n the full practical prcess flws invlved s far in dealing in the varius instruments in the fllwing Financial Markets Interest Rate Markets, Freign Exchange Markets, Equity Markets and Cmmdity Markets. Participants will have full access t PI ETA Cnsulting Cmpany s Dealing System - The PERMIT 1 System t experience the real wrld f financial markets and prducts. The PERMIT System is a multi-tier netwrkable enterprise Treasury & Financial Risk Management system develped entirely in-huse by PETS 2 Grup wrking in tandem with PEER 3 Grup, that supprts straight-thrugh prcessing f n-line treasury transactins. PERMIT is the wrld s first cmprehensive sftware t adpt the PET-DOG 4 system (n-line Help Functins and Guidance Features). Chief Prgram Facilitatr Dr. Jeffrey C. K. Lim, Ph.D., C.Sci., C.Math., FIMA, FRM, PRM, B.Fel. Prgram Duratin 1 Day, 9:00am t 5:00pm 1 PERMIT, which is an acrnym fr PI ETA Risk Management Infrmatin Technlgy, is a registered trademark f PI ETA Cnsulting Cmpany. 2 PETS is an acrnym fr PI ETA Technlgical Supprt 3 PEER is an acrnym fr PI ETA Engagement Resurce 4 PET-DOG, which is an acrnym fr PI ETA Tactically-Develped On-line Guidance, is a registered trademark f PI ETA Cnsulting Cmpany. 1
Prgram Backgrund "The extent f ne's achievement is ften cnstrained by ne's believes. What we believe makes us wh we are." Dr. Jeffrey C. K. Lim "Derivatives are like a surgen s scalpel; in the wrng hands it can kill, but in the right hands, it can be used t save lives!" Dr. Jeffrey C. K. Lim Simulatin ffers ne the ability t experience life withut having t pay the ptentially high price and it als cuts dwn n the actual time required t be invested in rder t learn abut the real wrld. This is particularly true f trading in the financial markets. One needs t have the pprtunity t have several dry runs in rder t have an initial feel f the financial markets; therwise, if ne is t be thrwn int the system fresh, then risk expsures t the rganizatins they jin can be high! PI ETA Academy-Kappa (PEAK), which is a subsidiary f PI ETA Cnsulting Cmpany, is the first t prvide the wrld with the FMSC (Financial Markets Simulatin Centres) cncept kind f interactive experiential financial markets training allwing learning that is hlistic, effective and sticks! This Initial Evaluatin f the Practical Experience mdule allws participants t have the pprtunity t evaluate their experiences invlved in the dealing f Financial Prducts thrugh the use f the Dealing System. They will als be given the pprtunity t clarify pints they may have encuntered in the dealing prcesses s far with the Facilitatrs. 2
Prgram Cntent Initial Evaluatin f the Practical Experience Mdule Upn cmpletin f the earlier practical sessins, Participants are nw asked t evaluate their experiences and review the practical aspects f the lessns they have learnt t date thrugh the use f PI ETA s Treasury and Risk Management systems. Facilitatrs will be n hand t als prvide a frm f resurce t assist participants t evaluate the lessns learnt at this phase as well as t clarify any cncepts the participants need further explanatin n. Intrductin t Basic Interest Rate Prducts and Derivative Instruments Different Types f Interest Rates Mney Market Rates Spt and Frward Interest Rates Interest Rate Benchmarks Fixed Incme Instruments Cupn Bnds Zer-Cupn Bnds Interest Rate Derivatives Frward Rate Agreements (FRA) Interest Rate Futures Swaps Interest Rate Swaps Crss Currency Swaps Prducts and Derivatives Dealing using The PERMIT 1 System Prducts and Derivatives Dealing Sensitivity Analysis Intrductin t Basic Currency Prducts and Derivative Instruments Currency Spt Cntracts Shrt Psitin Lng Psitin Currency Frward Cntracts Currency Frward Buy Cntract Currency Frward Sell Cntract Nn-Deliverable Frwards (NDFs) Currency Optin Cntracts Types f Optins Eurpean Optins American Optins Other Optins Greeks - Delta, Vega, etc. Sme Vanilla Optin Structures Call Optin Spreads Put Optin Spreads Straddles 3
Strangles Cmbinatins Risk Reversals Calendar Spreads Other Optin Structures Extensin f Abve Ntins f Currency Prducts and Optins t Other Markets Equity Markets Cmmdity Markets Optins Pricing Mdels Participants wh wish t have a feel fr ptins pricing and ptins sensitivities at their cnvenience are encuraged t g t: http://www.pi-eta.cm/prducts/optin_pricing_calculatr_intr.asp Benefits f Attendance Participants will have the pprtunity t evaluate their experiences invlved in the dealing f Financial Market prducts s far, and t clarify pints they may have encuntered during the earlier simulatin sessins. This will then prepare them fr the next fllw-up mdule in the Financial Markets Simulatin Centres (FMSC) Fundatinal Prgram. Upn cmpletin f the abve practical sessins, trainees are then asked t evaluate their experiences and review the practical aspects f the lessns they have learnt t date thrugh the use f PI ETA s Treasury and Risk Management systems. Facilitatrs will als prvide a frm f resurce t assist trainees t evaluate the lessns learnt at this phase as well. Pre-requisites Participants must have attended the fllwing mdules in the FMSC Fundatinal Prgram: Basic Theretical Knwledge Acquisitin Mdule Basic Practical Knwledge Acquisitin Mdule Full Practical Prcess Flw Experience Mdule Wh shuld attend? Senir Management, Risk Management Persnnel, Treasury and Finance Persnnel, Operatins and Settlements Persnnel, Accuntants, Internal and External Auditrs, and anyne interested in gaining mre in-depth knwledge in the Treasury and Financial Markets. 4
Prgram Facilitatr Dr. Jeffrey C. K. Lim, certified Financial Risk Manager (FRM 5 ) and certified Prfessinal Risk Manager (PRM 6 ), is currently the Managing Directr f PI ETA Cnsulting Cmpany, a Treasury & Financial Risk Management Cnsulting Cmpany. A Chartered Scientist (C.Sci. 7 ), a Chartered Mathematician (C.Math. 8 ) and an elected Fellw f the Institute f Mathematics and Its Applicatins (IMA), U.K. (FIMA), Jeff earned his Ph.D. in Stchastic Financial Mdeling frm the University f Cambridge in England. Jeff s research interest at Cambridge was in the area f Arbitrage Opprtunities ccurring in the Mispricing f Financial Optins, and his riginal research culminated in the publicatin f his dctral dissertatin entitled: Multi-perid Mean-Variance Optin Prtfli Strategies. Jeff was an authrized Securities & Financial Derivatives Representative in Lndn, having been certified by The Securities and Futures Authrity (SFA) in England, where he started his career as a Derivatives Analyst with Nmura Internatinal in Lndn, England. He subsequently jined NatWest Markets frm Lndn, England t becme its Head f Currency Structured Prducts fr Suth and Suth-East Asia. Jeff then mved t American Express Bank t becme its Directr f Structured Prducts, prir t assuming his current psitin. Jeff has als cntributed t the develpment and enhancement f talent and infrastructure fr Singapre's financial center as a guest Prfessr at the Natinal University f Singapre s Center fr Financial Engineering, where he was respnsible fr the curriculum f its Master f Science degree prgram s cre mdules in Financial Derivatives and Treasury Management. In additin, Jeff has als been invited by the Nanyang Technlgical University and the Singapre Management University t share his expertise in a similar capacity. In recgnitin f Jeff s expertise and experience in the field f Treasury and Financial Risk Management, the University f New Suth Wales Asia appinted Jeff t be its first Adjunct Prfessr with the university s Divisin f Business and Humanities. At PI ETA Cnsulting Cmpany, Jeff was Principal Inventr in tw f the Patents that the cmpany currently hlds ne in Treasury & Financial Risk Management Systems, and the ther in Knwledge Management Systems. Prfessinally, Jeff is a Fellw f bth The Glbal Assciatin f Risk Prfessinals (GARP), U.S.A. and The Prfessinal Risk Managers Internatinal Assciatin (PRMIA), U.S.A. He is als a Fellw f the Cambridge Philsphical Sciety, U.K. and a Life-time Member f The Cambridge Sciety, U.K. Jeff is als hnured t be a Fellw f The Cambridge Cmmnwealth Sciety, U.K., having been previusly awarded the Cambridge Cmmnwealth Trust and the Shell Grup f Cmpanies Dctral Research Schlarship. As a special recgnitin f Jeff s prfessinal achievements, n 9 April 1999, Barns Wh s Wh cnferred Jeff with the Barns Fellwship status, making him a Barns Fellw (B.Fel.). This award 5 The Financial Risk Manager (FRM) designatin is awarded by The Glbal Assciatin f Risk Prfessinals (GARP), U.S.A. 6 The Prfessinal Risk Manager (PRM) designatin is awarded by The Prfessinal Risk Managers Internatinal Assciatin (PRMIA), U.S.A. 7 The Chartered Scientist (C.Sci.) designatin is awarded by The Science Cuncil, U.K. 8 The Chartered Mathematician (C.Math.) designatin is awarded by The Institute f Mathematics and Its Applicatins (IMA), U.K. 5
by their Charter, is limited t nly the tp 10% f thse selected fr publicatin in Barns Wh s Wh Internatinal. Fr mre infrmatin, please cntact PI ETA Engagement Resurce (PEER) Grup at Tel: +65 634 100 10 Fax: +65 634 100 20 Email: marketing@pi-eta.cm Website: www.pi-eta.cm 6