essentials of financial markets

8/3/2019 Essentials of Financial Markets

http://slidepdf.com/reader/full/essentials-of-financial-markets 1/5

ESSENTIALSOF FINANCIAL

FOR IT PROFESSIONALS

MARKETS

2 DAY WORKSHOP



ESSENTIALS OF

FINANCIAL MARKETS


15th & 16th July, 2010 - Chennai19th & 20th July, 2010 - Bengaluru

Program Fee: INR 13,000 /- + Service Tax

PROGRAM OBJECTIVE

The financial markets are a vital source of capital for banks, corporations and governments while also offerin

source of investment returns for financial institutions, overseas investors and individuals. Within the markets

products that cover the full spectrum of financial services activity - from equities and fixed interest through

foreign exchange, derivatives and commodities.

While the size and sophistication of the financial markets has brought many benefits, their sheer scale a

complexity can make them difficult to grasp. This workshop will take the mystique out of the financial markets

that you can better understand their operation and significance to the broader economy.

PROGRAM FACULTY

Our Faculty is a seasoned banker and academician would conduct the workshop. He brings a rare combinat

of academician and working professional. He is a visiting faculty to IIM Calcutta and has conducted over 10

training hours and training over 500 trainees in the same topic.

KEY BENEFITS

Put your role and the role of your

organisation in the context of the broader

financial services sector

Appreciate how financial markets are

used by businesses for both capital

raising and as a source of investment

returns.

Develop your knowledge of finance and

investment language.

Define the role of the key regulatory

agencies that supervise market activity.

Manage the challenges created by the

current credit crisis.



ESSENTIALS OF

FINANCIAL MARKETS


WHO SHOULD ATTENTD

Middle level Managers

IT Professional & Analysts DAY ONE Session One: Basics of Financial Market

What are Financial Markets:

Role of financial markets :

position of financial markets in the overall

economy

Participants of Financial Market:

Players in the financial market & their

major activities : Banks : Different types of banks

Commercial Bank

Investment bank

Credit union

Central Banks

Corporates

Custodian Bank

Stock Exchanges

Information providers

Types & Classification of Markets:

Money Market Debt Market

Capital Market

Derivative Market

Common Instruments used in the markets :

T Bill

G Sec

Bond

Commercial paper

Bills of exchange

Dividend Warrants

Basic Concepts Related to trading in the

markets:

Bid- ask rate

Spot ,cash , tom and forward rate

Long and short position

Clearing house

Introduction to Derivatives:

Basic concepts of derivatives

Different types of derivatives Classification of derivatives

Session Two: Introduction to Financial Mathemat

Time value of money :

Concept of present value

Concept of future value

Concept of continuous compounding a

its application

Concept of annualised rate

NPVs and IRRs – understanding what theymean:

Calculation of IRR

Meaning of IRR

Meaning of XIRR

Concept of Required return

How to calculate required return

Cost of equity

Cost of debt

Weighted average cost of capital

Meaning and implication of positive N

and Negative NPV

Comparison of NPV and IRR

Concept of Amortised loan

Calculation of interest and principal of

amortised loan

Bond pricing – yield to maturity and spreads:

Coupon

YTM

Holding Period Return

Concept of Price of bond

Concept maturity of a bond Yield curve – different types of basis rates:

Understanding the yield curve

Shape of the yield curve

Implication from the shape of the yield

curve

Techniques of drawal of yield curve

Bond pricing:

Price and yield relationship

Bond duration

Bond convexity Conce t of rice risk of a bond



INTRODUCTION TO

ESSENTIALS OF

FINANCIAL MARKETS


DAY TWO Session Three: Derivative

Derivatives definition and terminology

Concept of future

Concept of forwards

Concept of options

Concept of Financial derivatives

Concept of Physical derivatives

Concept of OTC derivatives

Concept of exchange traded derivatives

Market Size:

Market size of financial derivatives

Market size of different financial derivatives

Rational for different financial derivatives

Session Four: Classification of derivatives

Futures

Long and short positions

Forwards : Long and short positions

Options :

Call option

Long and short call options

Put option :

Long and short put options

Index forwards

Index options

Equity derivatives

Equity options

Interest rate derivatives :

SWAPs

Interest Rate Futures

Interest Rate Options

Forward Rate Agreement

Foreign Exchange derivatives :

Forwards

Currency swap

Foreign exchange swap

Foreign exchange options

Credit derivatives : Credit Default swap

Total Rate of Return Swap

Basket Swap

Index trades

Swaptions

Exotic derivatives :

Binary option

Look back option

Use of derivatives:

Hedging

Arbitrage

Speculation

Session Five: Risk Management

Concept of risk

Different types of risk

Credit Risk

Market Risk

Operation risk Credit risk :

Expected loss :

Probability of Default

Exposure at default

Loss given default

Pricing and Expected loss

Methods of credit risk

management

Market Risk

Concept of market risk

Measurement of market risk

VaR

Management of market risk

Operation risk :

Concept of operation risk

Measurement of operation risk

Management of operation risk

Basel II :

Three pillars of Basel II

Capital adequacy

Calculation of capital under



Booking terms and conditions

The registration fee for the event covers the

following : Attendance, copy of documenta-tion, lunches and light refreshments. Accom-modation is not included. Detailed delegateinformation will be sent to you approximatelytwo weeks before the event. Payment isrequired in advance of the event, or at thelatest, paid at the event. Payment may bemade by par cheque or demand draft if favour of “OPTIRISK LEARNING SYSTEM(P) Ltd.” payable at Gurgaon.

exclusive jurisdiction of whose court theparties hereby agree to submit.

Confirm your CANCELLATION in writing upto 15 working days before the event andreceive a refund less a 10% service charge.Regrettably, no refunds can be made forcancellations received less than 15 workingdays prior to the event. However, SUBSTITU- TIONS are welcome at any time.

The organizers reserve the right to amend the

programme if necessary.INDEMNITY : Should for any reason outsidethe control of OptiRisk Learning Systems (P)ltd (hereafter called OptiRisk), the venue orthe speakers change, or the event be can-celled due to industrial action, adverse

weather conditions, or an act of terrorism,OptiRisk will endeavour to reschedule, butthe client hereby indemnifies and holdsOptiRisk harmless from and against any andall costs, damages and expenses, includingattorneys fees, which are incurred by theclient. The construction validity and perform-ance of this Agreement shall be governed byall aspect by the laws of India to the

1.Webwww.optiriskindia.com

[email protected]

3.Telephone+91 9717039970

4.Register Onlinewww.optiriskindia.com/learningsolutions/register.php

5.Fill this and postOptiRisk Learning Systems (P) LS27 / 1A, DLF Phase IIIGurgaon - 122001Haryana

R egistration form

Yes, please register me for :

Essentials of Financial Markets 15th & 16th July,2010 - Chennai

For IT Professionals 19th & 20th July,2010 - Begaluru

Fees

Rs 13,000/-

*(Service Tax Applicable)

essentials of financial markets

Documents