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Agenda

Day One: Tuesday 27 September 2016

08:00 Registration & coffee


(09:15-10.30) Session 1: Introduction to the steam coal physical market – Market analysis and forecast in the short, medium and long term

Instructor: Guillaume Perret, Director, Perret Associates

  • Course outline and organisation
  • Introduction to teaching faculty and delegates
  • The importance of risk management in coal and commodities training
  • Share Perret Associates’ most recent analysis, and forecast in the short, medium and long term

10:30 Networking refreshment break

(10.50-12:00) Session 2: Key quality parameters relevant for steam coal pricing

Instructor: David Barnes, Chief Representative - Jakarta, Knight Energy Services Limited

  • Which are the most important quality criteria for steam coal?
  • How are they determined?
  • How do they impact on prices?

(12:00-12:30) Session 3: The steam coal derivatives market

Instructor: Guillaume Perret, Director, Perret Associates

  • Main coal derivatives products: historical trading volumes, liquidity,  volatility and methodology
  • The permanent evolution of the market structure and new entrants  – principals, brokers, exchanges
  • How does a financial swap work?
  • New products in development
  • Case studies: interactive risk management examples for suppliers, end users and traders

12:30 Networking lunch

(14:00-14:30) Session 3 continues: The steam coal derivatives market

(14:30 – 17:00) Session 4: Using derivatives for risk management (including networking break)

Instructor: Guillaume Perret, Director, Perret Associates

  • Case studies: interactive risk management examples for suppliers, end users and traders

17:00-19:00 Networking drinks

Relax after an intensive first day with fellow delegates over some drinks.

Day Two: Wednesday 28 September 2016

08:30 Morning coffee

(09:00-10:30) Session 5: Trading the physical coal market

Instructor: Richard Richardson, Head of Asia, globalCOAL

  • What is a commodity? Why is commoditization important? Is physical coal a commodity?
  • Role of the physical SCoTA contract in thermal coal
  • Where can you use SCoTA and how
  • Physical contract pricing – options & trends
  • What’s next for Asia when it comes to trading SCoTA ?

10:30 Networking refreshment break

(11.00-12:00)Session 6: Mark-to-market and forward curve

Instructor: Guillaume Perret, Director, Perret Associates

  • What is mark-to-market and why is it so critical for trading companies?
  • Implications and potential pitfalls
  • Mark-to-market of financial and physical positions
  • Price forecast versus forward curve
  • What can we learn from contango and backwardation and why is the switch between the two critical?
  • Case study: forward curve trading

(12:00-13:10) Session 7:  What traders and brokers do: Over-the-counter trading mechanisms

Instructor:  Alexander Newman, Desk Head, ICAP

  • Step-by-step worked example of a derivatives deal
  • Snapshot of trading screens. Screen trading versus voice trading
  • Different ways to trade coal derivatives – over-the-counter or through exchanges
  • Required infrastructure to support trading activities
  • Dealing in the iron ore swap market
  • Developments in coking coal as it heads towards exchange traded swaps


13:10 Networking lunch

(14:30-15:45) Session 8: Case study

Instructor: Guillaume Perret, Director, Perret Associates

  • Interactive case study emphasising pitfalls to avoid in commodity trading
  • Lessons to be applied in the coal market

15:45 Networking refreshment break

(16:15-17:45) Session 9: Introduction to options

Instructor: Guillaume Perret, Director, Perret Associates

  • Definitions – call, put, strike, premium and other essential concepts
  • Premium calculation and the Black Scholes Model
  • Practical examples: How traders use options
  • Risks and pitfalls

Day Three: Thursday 29 September 2016

08:30 Morning coffee

(09:00- 10:00) Session 10: Understanding risk management indicators

Instructor: Guillaume Perret, Director, Perret Associates

  • Volatility, correlation, delta, value-at-risk and other risk measures
  • Easy and useful ways to calculate these indicators
  • Avoiding the false sense of security they can provide
  • Introduction to more sophisticated risk management systems

10:00 Networking refreshment break

(10:30-11:30) Session 11: Contracts and Pricing Formulas

Instructor:  Guillaume Perret, Director, Perret Associates

  • • Best practice to decide on a price formula
  • • Pros and cons of pricing formula
  • • Which index to choose?
  • • Correlation between physical and paper
  • • Adjustments for quality

(11:30-12:30) Session 12: Clearing: Another way to address counterparty risk

Instructor:  Ryan Waters, Director - Asia Pacific, Intercontinental Exchange

  • • What is clearing?
  • • Clearing mechanisms – exchange, clearing house, clearing members
  • • Implications for market participants – marked-to-market, initial margins, daily margins, cash flows
  • • Interactive examples

12:30 Networking lunch

(14:00-14:45) Session 13: Introduction to technical analysis

Instructor: Guillaume Perret, Director, Perret Associates

  • • What is technical analysis?
  • • Introduction to simple concept: support, resistance, trend, moving average, bars
  • • How can technical analysis be used in steam coal trading?

(14:45-15:30) Session 14: Setting up a derivatives desk and wrap-up

Instructor: Guillaume Perret, Director, Perret Associates

  • Typical trading floor organisation and business models

  • Departments’ responsibilities and inter-connections – front office, risk management, back office, credit, legal
  • Risk analysis and strategy implementation
  • Requirements to set up and develop a trading activity
  • Critical issues to consider and mistakes to avoid
  • Course wrap-up and next steps