Mastering OTC Products for Successful Trading
CEUs: Pending - CPE Credits: 10 hr.
Course Level: Intermediate
Agenda: 8:30 AM - 5:00 PM
This is an intermediate course designed to expose individuals to the intricate nuances of OTC traded products. Most importantly, it helps piece together the many complex components of the trading world. The real-life scenarios provide valuable insight that will prepare industry professionals to ask the right questions. Ultimately, exposure to the expansive product slate fosters creative problem solving and unique strategy creation. Understanding how the trade process evolves enables individuals to work more efficiently and cohesively with other segments of the organization involved and affected by a “trade”. The interactive lecture format allows participants to easily access the Mr. Hum’s wealth of knowledge and experience in the OTC Trading Environment.
8:30 – 8:45 AM
Everything you want to know about Trading OTC Natural Gas
8:45 – 9:15 AM
How does the OTC market interact with Futures
9:15 – 9:45 AM
Types of Trades
9:45 – 10:15 AM
Trading Methods: Voice, electronic, RPQ, etc.
10:15 AM – Noon
Physical Gas Module
Physical gas trading categories
Physical gas calendar
Cash trading and balancing
Term trading
Storage dynamics
Daily, monthly, bidweek indices unraveled
Index methodology and settlement
Physical products summarized and defined
Clarification of delivery hubs throughout the N.A. pipeline grid
Transport and capacity trading
Cleared physical gas
1:00 – 2:00 PM
Financial Gas Module
Futures vs. swaps
Mechanics of a swap and benefits
Henry Hub swaps (TAS, SDO, PEN)
Other swaps (Basis, Index, Swing, Fixed for Float)
Basis relationships and product dynamics
Time and locational spread trading
2:00 – 3:00 PM
OTC Clearing Module
Centralized clearing vs. traditional bilateral counterparties
Exchanges’ role
FCM role as clearing broker
Margining and rates
SPAN calculation
Position limits
Risk controls
3:00 – 3:30 PM
Broker Section
Types and services provided
Pros and cons
Attributes
3:30 – 4:00 PM
OTC Marketplace Participants and Dynamics
4:00 – 4:30 PM
Technological Advances and Keeping Up
4:30 – 5:00 PM
Trade Economics and Pricing Considerations