Back Office Management of Commodities

Commodity derivative market participants and organisation
  • Definition of commodities, oil, gas, electricity, base metals, precious metals and agricultural products
  • Regulated markets/OTC markets
  • Mechanism and use of leading commodity derivatives (futures, cash or physical spot delivery, forwards, swaps, options and IRS)
  • Fundamentals of valuing derivatives
  • Roles, responsibilities and distribution of information among different market participants: market authorities, members, regulators
  • Circulation of information between back, middle and front offices
Administration of commodity derivatives
  • Listed derivative markets
  • Market operating principles (LME, CME Group & IPE)
  • OTC markets
  • Valuation references (price fixing, standalone or external publication)
  • Main legal points of contracts (master agreement, master confirmation, confirmation and long form confirmation)
  • Documentation management
  • Managing events during the term of the contract
  • Collateralisation
  • Best practices in terms of action recommended by various parties
  • Use of Markit, ICE Clear, LCH Cleamet, Clearport
General principles of commodity derivative accounting
  • International accounting standards for these instruments
  • Practical workshop
  • Managing positions, calculating margins, netting, managing due dates, financial calculations
  • Cash flow problems linked to arbitrage positions between organised commodity markets
  • Managing confirmations

  • Master the fundamentals of how the markets operate and of leading commodity derivatives
  • Understand back and middle office processes and associated responsibilities
  • Incorporate fundamentals of valuing commodity derivatives
  • Identify operational responsibilities and risks
  • Master back office handling of commodity derivatives
  • Master the fundamentals of recognising commodity derivatives in the accounts
  • Overview of underlyings, products and their operational management
  • Comparison of the different markets and underlyings and identification of operating and valuation differences
  • Presentation of new international matching platforms
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