Certified Derivatives Trader 2018Certificate Program

Capital Markets Academy

2 Certified Derivatives Trader 2018

Course Structure

Target audienceThe Certificate Program is aimed at employees dealing in derivatives at banks and trading firms, as well as university students and retail investors.Participants should have basic knowledge about options and futures.

Course structureThe one-week course combines theoretical funda-mentals and practical case studies with hands-onuse of interactive media and calculation programs.Topics covered include key concepts and principlesrelating to the creation, valuation and trading of financial derivatives. Underlying markets and market participants will also be covered.

ExamThe exam is conducted electronically. It includestrue / false and multiple choice questions. Participantsare given 3 hours to answer 150 questions which arerandomly picked out from a question pool of approx.900 questions. The pass mark is 75 percent.

Only participants who have attended the one-weekcourse are allowed to take the final exam “CertifiedDerivatives Trader”. Participation in the course mustnot exceed 6 months.

This Certificate Program trains participants in deriv-atives trading completely. It qualifies you not only for trading on Eurex, one of the world’s leading deriv-atives exchanges, the program is also accredited by the Financial Conduct Authority (FCA) and givesyou entrance to the U.K. derivatives market.

One program – two qualificationsBy attending the program and passing the EurexOnline System Training as well as the final exami-nation, participants gain the professional knowledgeand practical experience required for admission as trader at the Eurex Exchanges.

Furthermore participants may complete additional examinations from the Chartered Institute for Securi-ties & Investment (CISI) to achieve the authorisationas Retail Investment Advisers in Derivatives from theU.K. regulator the “Financial Conduct Authority (FCA)”in respect of the Retail Distribution Review (“RDR”).

Certified Financial Engineer The passed final exam is accepted by the EuropeanInstitute of Financial Engineering and Derivatives(EIFD).

RequirementsParticipants should have a good understanding of derivative products.

Certified Derivatives Trader

One program qualifies for two markets

Additional approriate qualification (e.g. exams provided by the Chartered Institute for Securities & Investment (CISI) in: Regulation and Ethics

Investment Principles and RiskPersonal Taxation

Qualified for U.K. retail activity of “Dealing and Advising on Derivatives”

Qualified for trading at Eurex Exchanges

3Certified Derivatives Trader 2018

Organization

DurationFive days, 09:30–17:00 CET daily plus examination

LocationsDeutsche Börse AGMergenthalerallee 6165760 EschbornGermany

Deutsche Börse AGWestferry House11 Westferry CircusLondon E14 4HEUnited Kingdom

Fees3.200€ (2,870£) 2.950€ (2,650£) for early bookings up to 6 weeksbefore the start of the program

Dates26.02.–02.03.2018 (course in Eschborn in German)13.04.2018 (exam date in Eschborn)Early booking discount until 15.01.2018

23.04.–27.04.2018 (course in Zurich in Englisch)17.05.2018 (exam date in Zurich)Early booking discount until 12.03.2018

11.06.–15.06.2018 (course in London in English)18.07.2018 (exam date in London)Early booking discount until 30.04.2017

03.09.– 07. 09.2018 (course in Eschborn in German)30.10.2018 (exam date in Eschborn) Early booking discount until 23.07. 2018

The final exam can be taken once a month at all our representative offices.

ContactPhone +49-(0) 69-211-13767Fax +49-(0) 69-211-137 63academy@deutsche-boerse.com

www.deutsche-boerse.com/cma

Continual Professional Development (CPD)The program has been approved by the FinancialConduct Authority (FCA) and for 32.5 CE credithours by the CFA Institute. Participants can also claimCISI CPD hours.

Eurex® Trading ArchitectureParticipants, who will register as trader at Eurex, are recommended to book the Eurex Online SystemTraining. By means of interactive exercises they learnthe most important functions of the trading system.The successful completion of the online training courseis accepted as practical experience for trading at Eurex.

Tutors

Walter BraeggerPartner, Nosco Partners AG, Financial Market Expertise,Zurich, Switzerland

Vincent CousonPartner, Nosco Partners AG, Financial Market Expertise,Zurich, Switzerland

Paul NorthTrainer – Derivatives and Capital Markets, Teddington, United Kingdom

Stefan Toetzke Founder, mmSuisse GmbH, Zumikon, Switzerland

Eurex Zürich AGMannessestrasse 85/878045 ZurichSwitzerland

Agenda

Certificate Program Certified Derivatives Trader 2018

Wednesday

Portfolio research and construction� Overview of modern portfolio theory� Use of beta and correlation� Fundamental vs. technica analysis

Investment selection and administration� Strategic vs. tactical allocation� Selecting the right portfolio for clients

Regulatory requirements� Post financial crisis – changes in regulation� The BASEL accords and impact on banks� MiFid, Dodd Frank, Vocker Rule implications� Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)� Client money and levels of protection� Role of custodian

Options� Options fundamentals� Basic options positions� Eurex options� Risk/reward profiles of the positions

Thursday

Relationships� Put-call-parity� Special case: options on futures� Arbitrage: conversion/ reversal /box� Synthetic positions� Synthetic positions using future style options on futures� (Hedged) protective put purchasing� (Hedged) covered call writing� Risk Reversal

Pricing� Intrinsic value and time value� Insurance value and interest value� Negative time value� Variables affecting the time value� Different types of volatility and their importance� Maximum pain and pin risk

Sensitivities� Greeks: delta, gamma, vega, theta, rho� Importance of gamma and vega: move and uncertainty� Developing trading strategies

Friday

Eurex Strategy Master� Mapping risk� Simulating changes in price, vola and time

Directional strategies� Bull spreads call /put� Bear spreads call /put

Volatility strategies� Straddle� Strangle� Butterfly� Condor� Time spreads

Hedge ratios� Correlation� Beta� Limitations of correlation/ beta� Delta hedge� Gamma hedge� Using index vs. future in hedge ratios� Using CTD and basis point value (BPV) in hedge ratios� Anticipating CTD-change in hedge ratios

4 Certified Derivatives Trader 2018

Published byDeutsche Börse AG60485 Frankfurt / MainGermanywww.deutsche-boerse.com

December 2017Order number 1910-4760

Eurex® is a registered trademark of Deutsche Börse AG.

Monday

Derivatives market overview� Origin and types of derivatives� Forwards (swaps), futures and options (exotics & warrants)� OTC vs. Exchange-based products� General market terminology

Market participants� Buy side and sell side� Banks, funds, corporates� Brokers, dealers, sales, traders, market makers� HFT and algo firms� Regulators

Underlying markets� Equities� Fixed income� Money market� FX� Commodities� Weather

Exchange-traded futures� Contract design based on different underlyings� Working out a futures price� Cost of carry and arbitrage relationship� Applications of futures� Hedging, speculation and arbitrage� Calculating profit and loss� Basis consideration

Tuesday

OTC Derivatives� Forwards vs. futures� Forward rate agreements (FRAs) and contracts for difference (CFDs)� Types of swaps – e.g. interest rates, credit default swaps� ISDA agreements� General pricing and valuation� Applications of different forwards� Trading venues� Structured products

Hedging, trading andinvesting strategies� Determine (simple) hedge ratio� Fine tuning the hedge ratio� Basis risk� Outright trading� Spread trading� Arbitrage principles� Cash and carry arbitrage

Clearing� Managing counterparty risk� Counterparty risk in different derivatives� Listed derivatives cleared via Central Counterparty (CCP)� OTC derivatives cleared via CCP� OTC derivatives not cleared� Netting principles

Margining derivatives� Initial margin calculation� Variations margin� Portfolio-based margining� SPAN vs. historical VaR methodology

Role of Clearing Memberand CCP� Types of clearing membership� Account structure� Default management process

Delivery and settlement� Cash vs.physical settlement� Determining invoice amount and convergence� Concept of cheapest to deliver (CTD)� Understand basis risk� Seller’s optionality in a futures contract

Registration

Deutsche Börse AGCapital Markets Academy60485 Frankfurt am Main

Fax +49-(0) 69-211-137 63

Personal details

Home address

Business address

Billing address

Professional experience

Course details / date

Terms and conditions

Place, date Stamp, signature

Name in printletters

Registration “Certificate Program Certified Derivatives Trader 2018”

I hereby expressly confirm that I have correctly entered my details into the application for the program “Certified Derivates Trader”. I have read the terms and conditions and accept them as part of the contract.

I would like to receive infomation on the current training courses offered by Deutsche Börse AG, Capital Markets Academy.

Place and date of birth

Postcode, town

E-mail

Postcode, town

E-mail

Business address

Years in the financial sector

11.06.–15.06.2018 (London, course in English) 03.09.–07.09. 2018 (Eschborn, course in German)

Name, first name

Street / P.O. box

Phone, fax

Employer

Street / P.O. box

Phone, fax

Home address

Years in total

26.02.–02.03.2018 (Eschborn, course in German) 23.04.–27. 04.2018 (Zurich, course in English)

Male Female

Terms and conditions

General Terms and Conditions of Deutsche Börse AG relating to participation in fee-based face-to-face training courses and fee-based and free web-based training

1. Subject matter of contractThese General Terms and Conditions govern the performance of fee-based face-to-face training coursesand exams (fee-based face-to-face training courses and exams (hereinafter referred to jointly as “face-to-face training courses”) and fee-based and free web-based training (hereinafter referred to as “WBT”)(face-to-face training courses and WBT hereinafter referred to jointly as “training courses”) by DeutscheBörse AG. The contractual services and the terms of participation for each training course are specifiedin the applicable catalogue (available as a hardcopy or for downloading, on the internet for fee-basedface-to-face training courses at www.deutsche-boerse.com/cma).

2. Registration; formation of contractA contract with respect to participation in one of the training courses specified is entered into by the customer by completing and sending the registration form, either by e-mail, fax or in writing,and the forwarding of a confirmation of registration, or a confirmation of the order placed by Deutsche Börse AG.

3. Training services3.1 The nature and scope of the training services are outlined in the service descriptions containedin the catalogue in accordance with Clause 1; the course contents may be subject to modificationswithout notice, if and insofar as the participant can be reasonably expected to accept such modifications.3.2 In the case of face-to-face training courses, however, Deutsche Börse AG always reserves the rightto move the venue and/or time of training events or to replace the announced instructor/course leaderby another person. Deutsche Börse AG shall notify the participant of any relocation, change in time,cancellation or replacement.3.3 Deutsche Börse AG shall conduct the face-to-face training courses described in detail in the catalogueeither on its own premises, on the premises of the participant or at external venues (e.g. conferencecentres). The venue and time of face-to-face training courses will be specified in the confirmation of registration.3.4 Deutsche Börse AG shall make WBTs available online using an access code for the period of timespecified in the catalogue (hereinafter referred to as “access period”), starting from the day of registration.The participants shall define the access code themselves during the registration process. The accesscode must not be disclosed to third parties. After the access period ends, Deutsche Börse AG has the right to delete the WBT and/or to cancel the participant’s access code.

4. Prices, price changes, terms of payment4.1 The participation fee for each face-to-face training course shall include participation, comprehensivetraining documentation and refreshments. The participant shall bear all other costs, in particular travel,subsistence and hotel expenses.4.2 Participation in a WBT solely includes online access to the training course in question.4.3 The training fees specified in the latest catalogue on the date of ordering shall apply; value-addedtax shall be payable on top of them.4.4 The fees for face-to-face training courses shall be invoiced to the participant before the course in question commences. These fees shall be payable without deduction as soon as the invoice is received. If Deutsche Börse AG has no record of payment being received prior to commencement of the face-to-face training course, Deutsche Börse AG may refuse the participant’s participation in the course in question.4.5 The training fees for fee-based WBTs shall be invoiced to the participant following registration.These fees shall be payable without deduction as soon as the invoice is received.4.6 No refunds will be made for services not accepted in their entirety.4.7 Subject to the foregoing, Deutsche Börse AG and the respective author do not warrant thatthe training documentation is up-to-date, correct and complete and shall not assume any liability for its not being so.

5. CopyrightsTraining documentation and contents of a WBT may not be duplicated, processed, amended, circulatedor published in any other way without the written consent of Deutsche Börse AG.

6. Liability6.1 Liability on the part of Deutsche Börse AG for breaches of duty through slight negligence shall beexcluded, unless they relate to damage due to injury to life, body or health or warranties or otherclaims that cannot be contracted away are affected, in particular claims under or in accordance withsection 288 (6) sentence 1 of the German Civil Code (BGB); Deutsche Börse AG shall be liable forsuch damage in accordance with the statutory provisions. Liability on the part of Deutsche Börse AGfor a breach of duties that jeopardises the achievement of the purpose of the contract and of dutieswhose fulfilment is a prerequisite for enabling the proper fulfilment of the contract in the first placeand on the fulfilment of which the participant may regularly rely (“cardinal obligations”) shall also remain unaffected. In such cases, Deutsche Börse AG shall only be liable vis-à-vis participants for anytypical and foreseeable damage or loss. To the extent that Deutsche Börse AG is under an obligationto compensate for unavailing expenditure, the foregoing shall apply mutatis mutandis.6.2 If liability is excluded in accordance with Clause 6.1 above, that shall also apply to the personalliability of agents of Deutsche Börse AG.6.3 Deutsche Börse AG shall not be liable for any damage to or the destruction or loss of participants’property in connection with the performance of the face-to-face training course, unless such damage,destruction or loss has been caused by gross negligence or intent on the part of Deutsche Börse AG.6.4 The right to raise the objection of contributory negligence pursuant to section 254 of the GermanCivil Code (BGB) shall remain unaffected.

7. Rescission, substitute participants, changes in bookings7.1 Deutsche Börse AG is entitled to rescind the contract relating to performance of a face-to-facetraining course if there is an insufficient number of participants enrolled in the course by 14 days before the date the course commences. A number of less than ten participants shall be deemed to be

insufficient. However, Deutsche Börse AG may, at its discretion, opt on a case-by-case basis to proceedwith any face-to-face training course having a lower number of participants. Where participants havealready paid training fees to Deutsche Börse AG, said fees shall be refunded in full. Any further claimsof participants are excluded.

7.2 Participants may cancel their participation in any such face-to-face training course and rescindthe contract in writing, by fax, by e-mail or online at www.deutsche-boerse.com/cma (60485 Frankfurt /Main, Germany, Fax +49-69 211-1 37 63, e-mail: academy@deutsche-boerse.com) no less thanthree weeks prior to the commencement of said face-to-face training course. In such cases, DeutscheBörse AG will charge a fee of €50 to cover its expenses; this fee will be offset from the training fee to be refunded. Any training fees already paid above and beyond said fee shall be refunded. Participantshave the right to prove that the actual expenses or damage incurred by Deutsche Börse AG are in factlower. Any further claims of participants are excluded.7.3 Should participants be unable to participate in the face-to-face training course, they may nominatea substitute participant free of charge. In such cases, the cancellation of the contract entered into withthe initial participant will be effected after conclusion of a contract with the substitute participant, andthen only with the proviso that the contract between Deutsche Börse AG and the substitute participanton participation in the respective face-to-face training course will be validly concluded no later thanthree weeks prior to commencement of the face-to-face training course.7.4 Moreover, if participants are unable to participate in the face-to-face training course date booked,they may – alternatively to the procedure specified in Clause 7.3 – change their booking to anotherdate for the same face-to-face training course up to three weeks prior to the commencement of thebooked face-to-face training course. In such cases, the relevant participant will be charged a processingfee of €50. A change of booking within a period of less than three weeks is not possible.7.5 Where participation has not been cancelled within the time limit pursuant to Clause 7.2., wherethe contract between Deutsche Börse AG and a substitute participant has not been concluded withinthe time limit pursuant to Clause 7.3 (provided the contract has been concluded late or has not beenconcluded at all for reasons for which Deutsche Börse is responsible) or in the event of non-participationin a face-to-face training course, the full training fee shall be payable or the training fee already paidshall not be refunded, whichever may apply.7.6 A WBT on which the participant has already started working cannot be cancelled.7.7 If the training fees are not paid on time, Deutsche Börse AG reserves the right to refuse the partici-pant’s participation in face-to-face training courses, block access to WTBs and/or withhold confirmationsof participation until all claims resulting from registration for the training have been settled.

8. Data protection8.1 Pursuant to the Federal Data Protection Act [BDSG], participants are hereby notified that DeutscheBörse AG will store their full address as well as further information related to the order in machine-readable form and process this data electronically for tasks arising from this contract. Deutsche Börse AGguarantees that this data will be treated as strictly confidential.8.2 Deutsche Börse AG undertakes to treat all personal data received from participants, in particulartheir names, addresses, age and invoice details, as strictly confidential and to refrain from makingsuch data available to unauthorised third parties, except those data required by national authorities,auditing firms or lawyers to meet Deutsche Börse AG’s legal obligations, or in any event of litigation,and in accordance with data protection laws. Furthermore, by undertaking suitable measures (section9 of the German Federal Data Protection Act) and by committing its staff to secrecy, Deutsche BörseAG shall ensure that confidentiality is observed for the term during which the services of DeutscheBörse AG are used and thereafter. As soon as participants participate in a WBT exam, their personalexam results will be stored at least until the expiry of the statutory retention periods, and can thereafterbe retrieved by participants until they object the storage of their exam results.8.3 The disclosure of participants’ personal data to unauthorised third parties for any other purposes,in particular for the purpose of consultancy, advertising and market research, is prohibited unless the relevant participants give their express permission to do so.

9. Right of revocationParticipants are entitled to revoke the contract pursuant to section 312 b and section 312 d of the German Civil Code in conjunction with section 355 of the German Civil Code, provided thatthey are consumers (section 13 of the German Civil Code), i.e. conclusion of the contract cannotbe ascribed to their commercial or freelance professional activity. This right shall apply for a period

of two weeks. The two-week revocation period shall commence one day after the participant sendsthe registration form. No reasons for the revocation need to be given. It shall be sufficient to submitthe declaration of revocation either in writing or on a permanent data carrier to Deutsche Börse AG,Capital Markets Academy, 60485 Frankfurt /Main, Germany.

10. Settlement of disputesDeutsche Börse AG is not obliged to participate in settlement of disputes before a consumer arbitrationboard according to the German Settlement of Consumer Disputes Act [VSBG] and also does not offerparticipation in such action.

11. Governing law and legal venue11.1 All legal relationships based on these General Terms and Conditions shall be subject to the lawsof the Federal Republic of Germany to the exclusion of the UN Sales Convention.11.2 If the contractual relationship is not formed with a consumer and the choice of legal venue is otherwise permitted under the law, legal venue for all disputes arising from the contractual relationship shall be Frankfurt/Main, Germany. The statutory regulation shall otherwise apply.

12. Written formThe parties agree that any amendments to the terms and conditions shall be made in writing only.This shall also apply to the stipulation in this Clause 12 of the General Terms and Conditions, requiring written form.

Capital Markets Academy