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Agenda Overview

Tuesday 15th September

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: Andy Skues, Global Manager of Coal & Iron Ore Quality, Trafigura 

  • 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 

Instructor: Guillaume Perret, Director, Perret Associates

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

Networking break

17:00 - 19:00 Networking drinks
Relax after an intensive first day with fellow delegates over some drinks.

Wednesday 16th September 

08:30 Morning coffee

 09:00-10:00 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 ?

10:00 Networking refreshment break

10:30-11:30 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

11:30-12:40 Session 7

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

Instructor: Ola Strand Andersen, Chief Executive Officer - Singapore, Marex Spectron and Arne Petter Kolderup, Head of Coal Derivatives – Asia, Marex Spectron

  • 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

12:40 Networking lunch

14:00-15:30 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

15:30 Networking refreshment break

16:00-17:30 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

Thursday 17th September 

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: Alan Bannister, Executive Director, Energy Products, CME Group

  • 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


 


 


 

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