Course description
Clearing 101: Exchanges, Clearinghouses and CCPs
Buyers and sellers in exchange transactions rely on clearinghouses to intermediate transactions and to manage credit risks between trading parties. As such, clearinghouses promote transparency, efficiency, and stability by providing market-based pricing, daily settlement, and ensuring adequate capitalization for markets to function. While CCPs serve a critical role in the operations, capitalization and integrity of financial markets.
Join IFM for a virtual instructor-led workshop that explains the multilateral systems that provide the infrastructure for transferring, clearing and settling payments, derivatives and other financial transactions among financial institutions and end users. Additionally, the program will include relevant case studies to demonstrate clearinghouse functions and the impact and outcome of actual clearing events.
Virtual instructor-led workshop occurs in 90-minute sessions held on two consecutive days.
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Who should attend?
The workshop is suited for a broad range of participants including:
- Users of cleared derivatives markets such as institutional investors, money managers, producers/suppliers, as well as manufacturing and distribution companies
- Support, operations, sales, and marketing personnel at FCMs
- Public policy markers
- Staff in trading, risk management, financial and legal departments
- Potential users of futures, options and swaps markets
Training content
After the course you will be able to:
- Understand financial market infrastructure with an emphasis on the critical function and benefits of clearinghouse operations.
- Describe the key roles of clearing parties including CCPs, clearing members, customers, and the U.S. Commodity Futures Trading Commission (CFTC).
- Explain the principles of novation and how CCPs reduce processing costs, enable multilateral netting, prevent the accumulation of losses.
- Describe the critical role that margin (both initial and variation) and the mandate of segregated funds play in ensure liquidity and market stability.
- Know the basic portfolio margining methodologies at the CME, ICE and Options Clearing Corporation.
- Understand the default management plans and resolution rules as required by CFTC.
- Describe the CCP’s assessment powers and default waterfall used to satisfy a defaulting clearing member.
- Be familiar with the cleared swaps and OTC markets, similarities, and differences.
- Understand past bankruptcies and bankruptcy considerations.
Course delivery details
Virtual instructor-led workshop.
Costs
- Early-bird Discount: $220 (Enroll 30 days prior to start of the course date.)
- Standard Enrollment: $250
Qualify for an Additional Discount?
- FIA Member firms and their employees are eligible for discounts on courses. FIA members include more than 300 financial services firms as well as fund managers, commercial hedgers, global exchanges, technology vendors, and legal and other professional services providers.
- Group Discount: 10% off any registration with 3+ participants from same organization.
Why choose IFM?
Nonprofit educational foundation founded that offers top-quality education at the lowest cost
Qualified instructors who have real world working experience at major films and regulatory agencies
IFM instructors are passionate to share the knowledge gained from real world working experience at major firms and regulatory bodies
Reviews
Average rating 5
The course was well organized, interactive and very well presented.
The instructor was really engaging and knew the content well.
Contact this provider
The Institute for Financial Markets (IFM)
The Institute for Financial Markets (IFM), established by in 1989 is a nonprofit educational foundation. The IFM is an affiliate for the FIA, the leading global trade organization for the futures, options and centrally cleared derivatives markets. The IFM works to...
Will recommend because class is small. Interactive class was a huge (and unexpected) asset.