Training Best Practices/Trading Swaps with Futures case study

Trading Swaps with Futures Seminar

This is a test Wiki Book

Title:

learn how the swap cash and futures market and how best to hedge using these instruments.

Presenters:

Steve Dayon, Director Business development, Chicago Board of Trade

Peter Barker, Director Interest Rate Products, Chicago Mercantile Exchange

John Donato, Product Development and Business Analysis, ICAP plc.

What you learned

• Global over-the-counter interest rate derivatives volumes have increased 27% annually over the last 5 years.

• Standardized plain vanilla interest rate swaps account for 78 % of all swap trades.

• The top 10 dealers account for over 75% of swaps trading volume. As margins on these plain vanilla swaps are becoming razor thin, participants look for more capital efficient ways to conduct business. By using a combination of futures and cash instruments, traders can efficiently trade and manage swap spread risk.

• Counterparty risk is virtually eliminated through the guarantee of the clearing house.

• Liquidity pools are increased by the introduction of quarterly contracts.

• Standardized future contracts can be aggregated into a single net position, whereas each new OTC swap is an individual security.

• Straight through processing and bookkeeping are already in place.

• Current post trade services such as credit netting, trade margining and centralized payment centers are provided up front through the exchanges at no extra cost.

Please join us as product experts from ICAP, the Chicago Board of Trade, and the Chicago Mercantile Exchange demonstrate how interest swaps and swap spreads can be traded with futures. This presentation includes detailed discussion on how to use Reuters data provided by ICAP, the CME and CBOT, along with Reuters analytics to benchmark “fair value.”

Results

In a very short time frame, the groups used 50 SME's to create over 200 learning modules, available in 13 languages with only a few months of development time.

Learners rated the courses highly, stating that the courses are "more engaging because of the realism and the relevance" of the material created by SME's.

Lessons Learned

• Many learning modules have a short shelf life, so the most cost-efficient way to produce the content is through SME-developed, rapid authoring using PowerPoint.

• In many cases, you don’t need an LMS to launch and track the learning. The content map approach provides more flexibility when accessing learning content.

• Competencies should most often be measured on-the-job and not through online learning. Online learning works well for teaching, but assess outside the course using more traditional measures.

• If more interaction is needed for instructional purposes, add a “learn more” link to provide additional opportunities. These can be online, such as simulations, or perhaps can even give someone an assignment to talk to another person or engage in on-the-job learning.

• Content stored in PowerPoint is much easier to translate than content organized in other authoring tools.

• PowerPoint-converted learning can be used for self-paced learning, but many people overlook its potential for using the same material for group learning in a classroom setting. We’ve found that it works great for facilitated learning.

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