NUS RMI Workshop on Practical Applications of Options Risk Management Strategies

Synopsis

Options Trading and Risk Management is often perceived as a weighty and arduous topic, but it doesn’t have to be so. This 2-day course will be conducted with an engaging and experiential approach. Learners will discover the fundamentals of Option Trading and then solidify their newly acquired knowledge through hands-on sessions on Epi-Trade®, a financial market simulator which creates realistic and dynamic scenarios.

Through these simulations, Learners will realise the risks, functional requirements and compliance considerations of Options Trading.

Learning Outcomes

• Distinguish between the various processes, key roles and responsibilities in the Options trade life-cycle
• Recognise common Option strategies and portfolios
• Identify and quantify the risks arising from Option positions
• Develop appropriate risk management recommendations and strategies
• Recommend functionality required for the trading and risk management of Options
• Apply the industry rules, regulations and best practices for the trading and risk management of Options

Who should attend

• Risk Managers
• Business Analysts
• Compliance Professionals
• Operations and Technology Professionals supporting Risk Functions

Assumed Knowledge

It is assumed that participants have a prior knowledge of the definitions of Puts and Calls, and knowledge of standard payoff diagrams.

Program Outline

• A. Fundamentals of Options
• •   Calls and Puts
• •   Writers and Holders
• •   Payoff structures

• B. Complex Options Strategies
• •   Consolidated Payoffs
• •   Positioning Profit areas
• •   Pushing out Risk areas

• C. Hedging Options Sensitivities
• •   Delta
• •   Vega
• •   Gamma

• C. Managing Exceptional Conditions
• •   Liquidity
• •   Jump Events

• D. The Onset of Risk
• •   Positions arising from:
• • Market Making
  • Arbitrage
  • Option Strategies

• E. Managing Option Risks
• •   Automatically Manage Exposures (Delta Hedging, Risk Reversals)
• •   Automatically Execute Trades when conditions are met
• •   Build in Risk Control Measures   o Position Limits (Delta-equivalent exposures)
• • Loss Limits (Mark-to-Market factoring in Gamma and Vega)

• G. Rules, Regulations and Best Practices
• •   Securities and Futures Act
• •   Securities and Futures Regulations
• •   FX Global Code

Speaker

Mr Gerard Tong

• Master of Science in Financial Engineering
• Advanced Certificate of Training and Assessment
• 20 years of Financial Markets experience specializing in foreign exchange, derivative products and financial IT solutioning
• Varied roles of Trader, Market Maker, Product Structurer, Fintech Professional
• Trading, Risk Management and Market Surveillance Systems at SGXl
• Adjunct Professor at Risk Management Institute (National University of Singapore)

Program Date

24 to 25 April 2018

Program Fees

S$2,800 (subject to 7% GST)

Discount

We are pleased to offer the following discounts (either one)

• 15% discount for signups before 24 March 2018 (1 month ahead of program)
• 15% discount for signups of a group of 3 or more

Each participant who successfully completes the workshop will receive NUS RMI Certificate.

Registration