Foundational knowledge of markets, traded products and pricing, as well as related risks and operations. Why, what, where, when, and how trading takes place are addressed.

Duration
1-day kick-off session, possibly as first component of the ‘recruits onboarding programme’.

When?
This 1-day workshop is provided each year on the following three dates:

• 1^st Monday in February – Winter session
• 1^st Monday in June        – Spring session
• 1^st Monday in October   – Autumn session

Target group
Any new recruit in a business, control or support function at a market operator, market facilitator or market participant, or for those who are already junior but want to build a stronger foundation.

Learning objectives:

• Get a clear overview of the basic concepts and processes in the commodity and/or energy wholesale markets.
• Master practical knowledge about markets, market working and market structures, including continuous trading and auctions, as well as spot and term markets.
• Understand contracts and products, including supply contracts, and derivative contracts.
• Optimise skills regarding pricing, valuation, price formation, and price-indexation.
• Develop competencies in the field of the products traded, including commodities and derivatives contracts.
• Become an expert in order submission and execution, transacting, and deal-making.
• Gain expertise in the field of price risk and market risk management.
• Master trading operations, incl. novation, clearing, collateralisation, margining and settlement.
• Understand the implications of the energy transition.

Content
The following topics will be addressed during the workshop:

• The supply chain
  • Production, transport, storage & consumption capacity
  • Up-, mid- & downstream activities
• Organisation
  • The trading environment
    • Market operators
    • Market facilitators
    • Market participants
    • Regulatory authorities
  • The trading process
    • From negotations and order submission, via deal-making, to clearing & settlement
  • The deal life cycle
    • From negotations and order submission, via deal-making, to clearing & settlement
  • The external world: Market Participants – Market Operators – Market Facilitators – Regulators
    • Interactions with other organisations
      • Suppliers
      • Clients
      • Counterparties (in wholesale markets)
      • Trading venues (e.g exchanges)
      • Brokerage firms
      • ISVs
  • A market participant’s internal world:
    • Organisational setup
      • Inner world – Within trading departments
        • Role & objectives
        • Business, control & support functions
        • Front, middle & back office
        • The interactions between them
        • The use of the trading & risk management (TRM) system
      • The relations of the trading department with other departments
        • Business unit Trading vs. Business unit Sales
        • Business unit Trading vs. Business unit Asset Management
        • Business unit Trading vs. Treasury department
• Markets
  • Wholesale vs. retail
  • Primary vs. secondary
  • Term vs. spot (& balancing) (cash, prompt)
  • On-venue vs. off-venue
  • Auction vs. continuous trading
  • Physical vs. financial
• Products
  • Supply contracts
    • Provisions, flexibility
  • Derivative contracts
    • Futures, options, swaps
• Pricing
  • Price driving factors (fundamental v.s non-fundamental)
  • Price formation in a trading venue’s central order book
  • Price volatility
  • Price-indexation
• Trading
  • The deal life cycle
  • Exchange trading vs. bilateral deal-making in the OTC markets
    • Bilateral vs. multilateral deals
• Risk management
  • Types of risk
    • Market risk, counterparty risk, liquidity risk, operational risk, weather risk, compliance risk, political risk
  • Risk assessment
    • Value at risk
  • Risk control
    • Hedging
• Trading operations
  • Deal confirmation
  • Master agreements
  • Credit support & collateralisation
  • Clearing
  • Netting
  • Margining
  • Settlement
• Trading technology & digital world
  • Data management
  • Data reporting
  • Publication of information
• Accounting
  • Mark-to-market valuation
• Regulation & compliance
  • Regulatory packages and their objectives
    • Protecting investors & consumers
    • Non-compliance & sanctioning