Managing market- & trading-specific risks

The consequences to organisations of disrupted markets & systemic failure

Thursday 16 March 2023, 10:00-16:00 (CET)

Target groups:

  • Any professional in the commodity or energy markets, including, but not limited to, employees of a company with a trading function, brokers, exchanges, clearing organisations and regulators.

Learning objectives:

  • To get an idea of the risks relating to trading.
  • To know how these can be identified, assessed and controlled.
  • To understand the implications of mitigating those risks
  • Being able to point out the impact of one solution to another problem

Including:

  • Study materials (handout)

Programme:

  • Market risk
    • Adverse price moves
    • Risk assessment
      • Risk qualification
      • Risk quantification
        • Value at risk
          • Methodologies
          • Relevant parameters
          • Interpretation of outcomes
        • Stress testing
      • Counterparty risk
        • The risk of non-delivery / non-supply – Delivery risk
        • The risk of non-payment – Credit risk
          • Clearing
            • Clearing houses
            • Clearing members
          • Collateralisation & margining
          • Initial margin
          • Variation margin
          • Defaults & the default waterfall
        • Liquidity risk
          • Market liquidity
            • The consequences of a poor price formation for consumers
            • The relation between price volatility and asset liquidity
            • Market depth & resilience
          • Finance liquidity
            • Funding
            • The level of the working capital impacts the market activity
          • The circle market risk – credit risk – liquidity risk
            • Balancing the ratios
            • Systemic risk
          • Compliance risk
            • Corporate culture
            • Sanctioning may involve the company and/or employees
              • Administrative sanctions
              • Criminal sanctions (incl. sentencing)
            • Naming & shaming hurts the reputation of the company – Reputational risk
            • Incorrect or incomplete reporting of data
            • Incorrect or incomplete publication of inside information – Unlawful disclosure
            • An non-effective trade surveillance function
          • Governance
            • Framework
            • Setup
              • Controls
                • Pre-trade controls
                • Trade controls
                • Post-trade controls
              • Limit structures
                • Risk limits
                • P/L limits
                • Volume limits
                • Price limits


About the Lecturer

Jerry de Leeuw
Jerry de Leeuw, MSc. (founder of Entrima, former trader and author of the book “Value at risk”)



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Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com