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Agenda Overview

DAY ONE: Tuesday 25 September

08:00 Registration & coffee


Session 1: Introduction and overview of the steam coal physical market

Instructor: Guillaume Perret, Director, Perret Associates

· Course outline and organisation
· Introduction to teaching faculty and delegates
· Summary of the steam coal physical market
· The importance of risk management in coal and commodities training


Session 2 - Key quality parameters relevant for steam coal pricing

Instructor: Roy Simanjuntak, Coal Technologist, PT SGS Indonesia

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

10:30 Networking refreshment break


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 – 15:45

Session 4 - Using derivatives for risk management

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

15:45 Networking refreshment break


Session 5: 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

17:00 Networking drinks reception

DAY TWO: Wednesday 26 September 2012

08:30 Morning coffee


Session 6: Trading the physical coal market

Instructor: Chris Walker, Market Manager, global COAL

· Is physical coal a commodity?
· Role of globalCOAL in the commoditisation of steam coal
· Current developments in standardise contracting
· Physical contract pricing – options & trends
· Exchange of futures for physical – how does it work?
· Physically settled futures contracts – the basics

10:30 Networking refreshment break


Session 7: 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

12:30 Networking lunch


Session 8: 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

15:30 Networking refreshment break


Session 9: What traders and brokers do: Over-the-counter trading mechanisms

Instructor: Ola Strand Andersen, Managing Director, Marex Spectron Asia Pte Ltd

· 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 swap

DAY THREE: Thursday 27 September

08:30 Morning coffee

09:00- 10:00

Session 10: Understanding risk management indicators


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


Session 11: Use of structured derivatives to manage coal price exposures

Instructor: Tobias Lausch, Marketing Commodity Futures in Asia-Pacific, BNP Paribas Commodity Futures Ltd

· Structured financing solutions
· Alternative sources of capital
· Interactive case studies


Session 12: Clearing: Another way to address counterparty risk

Instructor: Russell Norton, Founder and Managing Director, Calhan Trading

· 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

12:15 Networking lunch


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?


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