Leading Excellence in Banking & Finance

INTRODUCTION TO TRADING AND INVESTING IN FIXED INCOMESIMULATION TRAINING@THE DEALING ROOM

CapitalWave provides truly dynamic educational simulation training platforms. CapitalWave’s instructors, consultants and management team have a wealth of financial knowledge and experience and have designed, developed and delivered training programmes globally to many of these leading capital market banks and financial institutions

The CISI is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and in a growing number of major financial centres around the world. Formed in 1992 by London Stock Exchange practitioners, we now have more than 40,000 members in 110 countries.

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals, combining industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets.

SimArch was founded in 1999 and has developed simulations related to commercial banking businesses. The simulations model all key components of a commercial bank and its operating and regulatory environment. SimArch has conducted over 450 workshops in more than 40 countries.

Part of Henley Business School, the practical application of finance theory is one of the ICMA Centre’s key advantages. This integration of theory with practice is achieved through the use of the Centre’s three state-of-the-art dealing rooms. With over 100 terminals, All equipped by Thomson Reuters, the terminals run the latest industry simulation software as well as the Centre’s own simulation software platforms; ICTrader and StockTrak.

OUR PARTNERS

1. Proprietary trading across all major asset classes

2. Professional development using trading technology

for live & simulation-based training

3. Market analysis and research for clients

Amplify Trading delivers training to the world’s leading global banks using its proprietary trading and simulation platforms.

Amplify Trading was founded in 2009 and has three core operations of business:

SELECTIVE CLIENTS OF BIBF’S PARTNERS

The BIBF Dealing Room has a Live link to Amplify Trading’s dealing room in London.

Participants will be exposed to the Live trading activity of Amplify’s trading team.

The BIBF Dealing Room is a state of the art facility, the first of its kind in the MENA region, which powers technology-enabled learning by doing. The facility has over 20 trading stations, fully-equipped multimedia and market tools such as Bloomberg and Thomson Reuters Eikon.

In order to provide cutting-edge training expertise and technology, BIBF has partnered

with specialist training and technology providers in the UK and US. Our partners have a successful track record of providing training to bulge-bracket global banks, including JPMorgan, Citigroup, HSBC, Morgan Stanley, Barclays Capital & Deutsche Bank.

A comprehensive range of courses are offered, covering subjects of interest to professionals in the financial sector across Treasury, Investments, Capital Markets and Risk Management.

SIMULATION TRAINING IN PORTFOLIO AND INVESTMENT MANAGEMENT@THE DEALING ROOM

INTRODUCTION TO TRADING AND INVESTING IN FIXED INCOME

• Be aware of the key information that moves market prices and

what information and data participants need

• Understand the key terminology, phrases and acronyms used in the

money market, fixed income market and credit market

• Become familiar with the major products traded, how they are used

and the trade strategies market participants employ

MAIN TOPICS COVERED IN THIS PROGRAMME

WHAT YOU WILL LEARN

• Will have a clear understanding of the key cash and derivative

products traded in the money market.

• Will appreciate the structure and pricing of the major cash and

derivative products traded in the fixed income markets.

• Be able to identify the different types of risk management and

trading analysis undertaken by market participants and understand

their data needs.

• To describe the key data inputs used by option traders to price

options and manage the risks on their positions.

• Understand the terminology used in the credit trading market and

be able to identify the types of trades that are established, together

with the information needed to assess them.

PREREQUISITE COURSES

Those interested in attending this course should have a foundational

understanding of Fixed Income Markets. There are no pre-requisite

courses.

WHO SHOULD ATTEND

From Commercial Banks, Central Banks, Investment Banks, Asset Management firms’ representatives, Pension Funds, Hedge Funds, Leasing companies, Insurance companies, Fund Managers, other financial institutions • Fixed Income Traders• Those who support Fixed Income Traders• Financial Officers • Risk Officers • Internal Auditors • Investment Analyst• Portfolio Manager

REAL MARKET NEWS TRADING GAME (RNTS)

Each day begins with a class discussion of the current news stories;

this reinforces the need for delegates to become news aware.

Delegates are then broken into small groups that need to take

trading positions within stated position limits across 6 markets using

real market prices. The positions are marked-to-market and groups

are able to change their positions during each analysis session.

A leader-board ranks the team’s performances and the winning team

is one with the highest profit at the end of the programme.

TRADING SIMULATIONS (FITS)

Delegates take part in trading simulations using the Fixed Income

Trading Simulator (FITS). These fast paced market simulations allow

delegates to experience the high pressure of trading and volatile

markets in a tightly controlled environment.

Each delegate needs to manage their own positions, make prices,

and react to market news while trying to make money in an

exciting and competitive forex environment. For some participants

this is often their first exposure to trading, and delegates find the

experience highly engaging and enjoyable.

ONLINE LEARNING TOOL (OSA)

Delegates take part in using the Option Strategy Analyser (OSA).

This online tool will provide delegates the opportunity to create and

structure Options for a better understanding of how to use them in

the Fixed Income marketplace.

COURSE ACTIVITIES

This 4-day intensive course is designed to provide delegates with a high level understanding of interest rate markets and the associated derivative markets. By participating in this 4-day intensive course, delegates gain a deeper understanding of the global Fixed Income Markets.

COURSE OUTLINE

DAY 1: THE MONEY MARKETS

DAY 2: THE BOND AND SWAP MARKETS

Module 1: Review of the Money MarketsThe role of the money marketKey money market productsLIBOR and Overnight Index SwapsCentral Bank liquidity facilitiesThe implications of the current low rate environmentPricing money market securities7 Real News Trading Game

Module 2: Introduction to FuturesBackground to futures marketsDefinitions and terminologyPit versus screen tradingClearing and marginingPhysical delivery versus cash settlement7Excel Case Study

Module 3: Yield Curves and Forward RatesDefinition of the yield curveYield curve shapesHow traders use the yield curveCalculating implied forward ratesForward Rate AgreementsHedging using FRA’sUnderstanding why traders focus on forward rates7Understanding the Yield Curve7Fixed Income Trading Simulator

Module 3: STIR Futures ReviewBackground to futures marketsDefinitions, terminology and featuresUnderstanding STIR futuresSTIR futures terminologyPacks, bundles and stripsSTIR futures trading strategiesHedging using STIR futures

Module 1: Bond Market Maths and ReposPricing interest bearing securitiesThe relationship between price and yieldDay count conventionsAccrued interestIntroduction to duration and convexityThe Repo Market7Real News Trading Game

Module 2: Interest Rate SwapsBasic principles of how swaps workCash flows, timing and basic structureMarket quotation conventionsInterest rate swap applicationsThe link between swaps and corporate bond issuance7Excel Case Study

Module 3: Fixed Income Products and MarketsOverview of government and corporate bondsThe US treasury marketGovernment bond auction processStrips and agency securitiesThe corporate bond issuance processBond RatingsBond futures, conversion factors and CTD7Fixed Income Trading Simulator

Module 4: Other Types of SwapsNon constant principal swapsOvernight Index Swaps (OIS)Cross currency swapsSwaps spreads, curve trades and what traders watch

DAY 3: US BONDS AND EMERGING MARKETS

DAY 4: TRADING CREDIT

Module 1: More on the US Bond Markets US Bond Market OverviewMunicipal BondsAgency SecuritiesMortgage Backed SecuritiesThe securitisation processPrepayment Risk and MBS TerminologyThe TBA market and MBS Dollar Roll7Real News Trading Game

Module 2: Emerging Markets – LATAM FocusBackground and historyEmerging market crisisThe Brady plan and Brady bondsMotivations to invest in and trade emerging market debtEmerging market benchmarks and IndexesSovereign debt crisis contagion7Fixed Income Trading Simulator

Module 3: Emerging Markets – Eastern Europe and AsiaOverviewComparisons of key marketsMajor products traded in emerging marketsThe carry tradeMacro drivers and key news releasesGreece and its knock-on effects

Module 4: Introduction to OptionsOption definitions and terminologyAmerican versus European style optionsIntrinsic and time valueKey factors that influence option pricesUsing options to hedge riskOption trading strategies 7Excel work sheet7Option Strategy Analyser

Module 1: Options Knowledge Primer Understanding the option “Greeks”Key interest rate option productsCaps, collars, floors and swaptionsExotic option overviewUnderstanding barrier options7Option Strategy Analyser

Module 2: Overview of Credit DerivativesThe principles of credit derivativesKey terms and definitionsMotivations for using credit derivativesOverview and current trends in credit derivative usageTypes of credit derivatives7Excel Case-study

Module 3: Single Name and Index Credit Default Swaps (CDS)Terms and definitionsWhat are credit events?The credit derivative settlement processThe Big Bang, Little Bang and SNACThe CDX and iTraxx index seriesHow index products work7Excel Case-study

Module 4: Trading CreditOverview and conceptRelative value versus outright tradingThe link between corporate bonds and CDSSingle name versus index CDSWhat information does a credit trader need?The sovereign debt crisis

BIBF plays a vital role in the training and development of human capital in the Kingdom of Bahrain. Our commitment to excellence has strengthened our position as the top provider of quality education across all major business disciplines. We serve as a partner to numerous world-class institutions; delivering thought leadership, research and advisory, assessment and training solutions in the areas of Accounting and Finance, Academics, Executive development, Banking, Leadership and Management, Insurance, Islamic Finance and Information Technology; resulting in a complete business solution. BIBF covers a wide spectrum of subject matter, with over 300 different courses offered to the financial and corporate market; tailor-made training solutions based on organisational requirements; specialised programmes taught by leading market specialists; and professional qualifications and degree programmes in partnership with major international organisations.

BIBF continues to exceed global benchmarks for many of the qualifications it offers with its affiliates.

Contact Details:Tel: +973 1781 5591

Email: dealing@bibf.com

www.bibf.com