FIRST FINANCE - Financial training courses - London - New York - Singapore - Masterclass

FUNDAMENTALS OF CAPITAL MARKETS

Programme combining online and in-class training

Programme in 5 phases. Phases 2, 3 and 4 alternate:

1st stage of individual work preceding the seminar in the form of self-assessment quizzes, online consultations of technical sheets and e-learning modules

One-day course: revisions, lectures and case studies

2nd stage of individual work postseminar:
quizzes, case studies and exercises in EXCEL™ (accessible online after the seminar)

The first phase does not include days of in-class seminars

Phase 5 consists in bestowing a FIRST FINANCE certificate to delegates who have successfully completed the programme.

Trainees may take the evaluation tests more than once. What is important is that the knowledge be truly acquired.

This programme is linear. Delegates will have to follow the phases in their sequential order.

	Learn the typology, organisation and functioning of financial markets, as well as the roles of all their participants
	Connaître la typologie, l'organisation et le fonctionnement des marchés financiers ainsi que le rôle des différents intervenants
	Know all the major risks involved in markettransactions and the implications of the Basel II Reform
	Master the jargon of financial markets

Anchor knowledge and skills using:

an appropriate rhythm of preparation, training and practice

an alternated use of educational methods: e-learning, small group sizes, exercises in EXCEL™, case studies, simulations, MCQ

Gain state-of-the-art practical skills

Validation via tests and an official FIRST FINANCE certificate

	Trading room newcomers
	Multi-instrument salespeople, financial intermediaries
	Junior fund managers
	Back office, internal controls, audit
	IT staff and consultants in computer services and financial information firms
	Economists and legal staff
	Financial departments
	Corporate treasurers

TYPE OF TRAINING	TOPICS	DURATION
PHASE 1: Financial Markets - Organisation and Key Players
Quiz	Self-assessment	15 min
E-learning + quiz	Organisation and participants of financial markets	90 min
Pre-reading	Typology and mechanisms	20 min
Pre-reading	Front to back office functions	30 min
Summary Quiz		30 min
Exercise	Attribute the correct function to each participant	30 min
PHASE 2: Equity Products - Shares, Bonds and Money Market Products
Quiz	Self-assessment	15 min
E-learning + quiz	Equity markets	45 min
E-learning + quiz	Money markets	45 min
Pre-reading	Role of the ECB	20 min
Pre-reading	Negotiable debt securities and T-bills	20 min
E-learning + quiz	Bond markets	60 min
Seminar	Mechanics, Uses and Market Conventions for Cash Products: Shares, Bonds, Money Market instruments	1 day
Summary Quiz		30 min
Exercise 1	From an order book, predict market transactions resulting from different types of orders	30 min
Exercise 2	Calculate a bond's accrued coupon, price and duration	40 min
PHASE 3: Interest Rate, Credit and Equity Derivatives
Quiz	Self-assessment	15 min
E-learning + quiz	Interest rate derivatives	50 min
E-learning + quiz	Equity derivatives	30 min
Pre-reading	FRAs and short-term futures	20 min
Pre-reading	Interest rate swaps (IRS) and currency interest rate swaps (CIRS)	30 min
Pre-reading	Credit Default Swaps (CDS) And Credit Linked Notes (CLN)	30 min
Seminar	Interest Rate, credit and Equity Derivatives: Mechanics, Uses and Market Conventions	1 day
Summary Quiz		30 min
Exercise 1	Calculate an FRA differential	20 min
Exercise 2	Make a bill book for the Euribor leg of an interest rate swap	30 min
Exercise 3	Calculate the guaranteed rate and the break-even spot rate of capped/floored strategies	30 min
PHASE 4: Forex Market, Fundamentals of Risk Management and Implications of the Basel II Reform
Quiz	Self-assessment	15 min
E-learning + quiz	Forex market	50 min
Pre-reading	Spot FX transactions	20 min
Pre-reading	Forward FX transactions and FX swaps	30 min
Pre-reading	FX options	30 min
Pre-reading	Capital resources	20 min
Pre-reading	Market, counterparty and operational risks	45 min
Seminar	FX Market, Fundamentals of Risk Management and the Implications ot the Basel II Reform	1 day
Summary Quiz		30 min
Exercise 1	Calculate a forex cross rate and a forward rate	30 min
Exercise 2	Classify different market and counterparty risks	20 min
PHASE 5: Certification by FIRST FINANCE
FIRST FINANCE certificate bestowed to all successful delegates
TOTAL: 44 h 00

(No prior mathematical knowledge required)

DAY 1
MECHANISMS, USES AND MARKET CONVENTIONS FOR CASH PRODUCTS: SHARES, BONDS AND MONEY MARKET INSTRUMENTS

Equity Market

How organised stock exchanges work

Key players: clearing houses/depositories

Indices

Indices and cash equity instruments

Equity futures

Principles of equity structuring

Practical Workshop

Analyse a fund manager's needs and offer risk management solutions

Money Market

Reference rates: Libor, Eonia and Euribor

Monetary policy and dynamics of short-term interest rates:

Base rates

Calls for tenders: procedures

Minimum capital requirements

Money Market Instruments

Deposits

Debt securities: T-bills, commercial paper, certificates of deposit

Reverse transactions

Practical Workshop

Compare sources of short-term financing

Bond Market

Bond reference rates

Most common debt securities and their uses: fixed-rate bonds, floating rate bonds, CMSs, etc.

Bond issues

Essentials of pricing

Duration and sensitivity

Practical Workshop

Calculate a bond's yield

Day 2
INTEREST RATE, CREDIT AND EQUITY DERIVATIVES: MECHANISMS, USES AND MARKET CONVENTIONS

Principles of forward products

Interest rate curve and forward rates

Mechanisms and uses of non-option derivatives:

FRAs

Futures

Interest rate swaps (IRS), currency and interest rate swaps (CIRS)

Non-vanilla swaps: quanto swaps, CMSs

Credit default swaps, credit linked notes

Practical Workshop

Calculate a forward rate

Options: mechanisms

Fundamentals of option pricing

Volatility and volatility smile

Option sensitivity: delta, gamma, vega, theta, etc.

Option-based strategies

Special features of caps/floors and swaptions

Special features of share warrants

Common types of exotic options

Practical Workshop

Manage a floating rate debt using swaps and caps/floors

CREDIT DERIVATIVES

Credit derivatives market: organisation and key players

Mechanisms and uses

Credit default swaps (CDS)

Credit-linked notes (CLN)

Legal and regulatory framework

Practical Workshop

Use a CDS to hedge counterparty risk

Day 3
FOREX MARKET, FUNDAMENTALS OF RISK MANAGEMENT AND THE IMPLICATIONS OF THE BASEL II REFORM

Forex Market

Spot FX transactions

Forward FX transactions, forwardation/backwardation

FX swaps

FX options

Practical Workshop

Calculate a forward FX rate

Calculate the maximum loss, effective guaranteed rates and break-even spot rates of various FX

option-based strategies

Fundamentals of Risk Management

Value-at-Risk (VaR)

Counterparty risk approach

Market risk approach

Operational risk approach

Practical Workshop

Perform a simple calculation of a 1-day/99% VaR

Implications of the Basel II Reform

Goals and consequences of the reform

Tools and methods

Pillar 1: risks

Pillar 2: supervisory review

Pillar 3: market discipline and transparency

Impacts of the reform