Essentials of Derivatives

Strategies for negotiating, trading, hedging, reporting and compliance
Date: September 18 & 19, 2014
Location: Toronto
See Full Description: Download PDF

Highlights

- Get the latest on new proposals put forward by the OSC about derivatives reporting and trading

- Learn about the current derivatives market - the products, their uses and the risks

- Benefit from learning about best practices in derivatives deal negotiation and documentation

- Explore the use of foreign exchange derivatives in currency speculation and hedging FX exchange risk

- Hear about collateral management best practices

- Gain practical knowledge on equity derivatives structuring, pricing and hedging strategies

- Examine the clearing and settlement processes for derivative transactions

Faculty

FACULTY
COURSE LEADERS
Francesca Guolo, Goodmans LLP
Francesca Guolo is a Partner at Goodmans LLP. Her experience in the field of structured finance & derivatives encompasses interest rate, FX, credit and equity derivatives, monetizations, covered bonds, securities lending, debt trading, CDOs, and synthetic & asset-backed securitizations.
Candace Pallone, McCarthy Tétrault LLP
Candace Pallone is Counsel at McCarthy Tétrault LLP. She has extensive experience in all aspects of OTC derivative transactions, including the central clearing of OTC derivatives and repo transactions, and the regulation of OTC derivatives.
CO-LECTURERS
Jason Boggs, PricewaterhouseCoopers LLP
Jason Boggs is a Partner at PricewaterhouseCoopers LLP.
Tony Cancellara, Scotiabank Global Banking and Markets
Tony Cancellara is Senior Manager, Derivatives Compliance at Scotiabank Global Banking and Markets. He He offers guidance with respect to exchange rules, Dodd Frank compliance, client suitability and the upcoming Canadian OTC challenges.
Kevin Fine, Ontario Securities Commission
Kevin Fine is Director of the Derivatives Branch at the Ontario Securities Commission. He participates in a variety of national and international committees currently working on introduction of regulation of over the counter derivatives markets.
Jason Kroft, Stikeman Elliott LLP
Jason Kroft is a Partner at Stikeman Elliott LLP. His practice focuses financial products, structured finance, banking and secured finance covering a range of exchange-traded and over the counter derivative products.
Shahen A. Mirakian, McMillan LLP
Shahen A. Mirakian is a Partner at McMillan LLP. Shahen is involved in all aspects of structuring and documenting of a broad range of derivative products particularly equity and energy derivatives.
Trevor Noronha, TD Bank Group
Trevor Noronha is Senior Counsel at TD Bank Group.
Paul Rand, Blake, Cassels & Graydon LLP
Paul Rand is Counsel at Blake, Cassels & Graydon LLP . His practice involves all aspects of derivatives, securities financing arrangements and structured products, as well as regulatory matters significant to the financial services industry.
Michelle Schwartzberg, Bank of Montreal
Michelle Schwartzberg is Senior Counsel in Bank of Montreal’s Legal, Corporate and Compliance Group. She advises on derivatives matters, both transactional and regulatory as well as on the negotiation of ISDA Master Agreements.
Victoria Wilson, Bank of Montreal
Victoria Wilson is a capital markets derivatives lawyer at Bank of Montreal. She regularly advises on capital and collateral issues pertaining to OTC derivatives agreements.

Program

COURSE PROGRAM
Overview of Derivatives Products: Types, Uses and Risks
There has been a rapid growth in the use and the number of types of derivatives being used in the market to assist in managing risks and structuring financing. This evolution of the derivative market has also brought increased complexity and regulation. This session will provide an overview of the derivative market with a focus on the products, their uses and risks.

Various financial derivative instruments currently used in the markets

Applications of derivatives: derivatives as a tool in risk management and structured financings

Exchange-traded vs over-the-counter derivative products

Latest developments and trends in derivative market

Procedures and processes involved in derivatives operations

Clearing, derivative reporting and collateral management

Framework for Documenting Derivatives
Documenting derivative transactions is highly complex and technical and will only grow more so as the types and applications of derivatives continues to increase. This session will use the International Swaps and Derivatives Association (ISDA) documentation as a basis to examine the framework for documenting derivatives.

Main provisions of the Schedule to the ISDA Master Agreement

Key negotiation issues and best practices

Customizing the agreement to suit individual requirements

The Credit Support Annex

Provisions widely used to document derivatives transactions

Critical deal terms and risks

Practical and legal issues associated with documentation

Impact of Canadian OTC Derivatives Rules on documentation

Foreign Exchange Derivatives
This session will explore foreign exchange derivative that are used for currency speculation and arbitrage or for hedging foreign exchange risk.

Major types of foreign exchange derivatives

Relevant characteristics and uses of different types of FX derivative

Identifying and quantifying currency risk to determine hedging needs

Strategies for managing FX exposures

Marking-to-market forward FX

Application and Uses in Trading, Hedging and Arbitrage: Managing Risks
Derivatives can be used to identify, isolate and manage the market risks in financial instruments and commodities for the purpose of hedging, speculating, arbitraging price differences and adjusting portfolio risks. This practical session will provide insight into the application and uses of derivatives in trading, hedging and arbitrage strategies.

Common option trading strategies

Directional and volatility trading strategies

Creating synthetic long and short positions

Arbitrage relationships

Cash arbitrage

Documenting Collateral Arrangements between Derivative Counterparties
Collateral arrangements associated with derivatives transactions have become more prevalent over time, in part as a means to address counterparty risk. This session will focus on:

Customary collateral documentation

Overview of the ISDA forms of Credit Support Annexes

Key terms of such documentation

Structure and Role of Equity Derivatives
This session will provide practical knowledge on structuring, pricing and hedging strategies for equity derivatives.

Role of equity derivatives: advantages and uses

Equity derivatives products: equity forwards, futures, swaps and options

More exotic equity derivatives and their uses

Derivative hedging process: challenges and risks

Practical limits of derivative models and their reliability

Equity option pricing and risk

Clearing and Settlement of Derivatives
This session will examine the clearing and settlement processes required to complete a derivative transaction.

Clearing and settlement of derivatives: process used for clearing derivatives

Role of the clearing house

CSA model mandatory clearing rule

Exemptions from clearing requirements

OTC settlement vs. clearing exchange traded derivatives

Confirmation process for OTC transactions & legal agreements

Operational and legal mechanics involved in central clearing

Trade reporting requirement compliance and challenges

Contracts required for central clearing

Update from the OSC
This discussion details a number of new proposals put forward by the OSC with respect to the reporting and trading of derivatives, including:

Implementation of trade reporting in Canada

Trade reporting requirements

Adoption and practical implementation of new regulations in Ontario

Electronic trading of derivatives

Multimedia Presentations

MULTIMEDIA PRESENTATION
Identifying embedded derivatives and accounting treatment
Bhupender Gosain
MNP LLP
Taxation of structured products & derivatives: Impact of recent tax rules
Richard Marcovitz
PricewaterhouseCoopers LLP
Embedded derivatives
Carmela Pallotto
KPMG LLP
Practical considerations to taxation of financial products & derivatives
Hersh Joshi
Ontario Teacher's Pension Plan Board
Taxation of financial products and derivatives: Basic principles
Mario M. Abrioux
McCarthy Tétrault LLP
Taxation of structured products & derivatives
Lara Friedlander
Osler, Hoskin & Harcourt LLP
Latest developments in the derivatives market & regulation
Margaret Grottenthaler
Stikeman Elliott LLP
Tax & reporting issues impacting the use of derivatives
Hugh Chasmar
Deloitte & Touche LLP
Disclosure requirements for financial instruments
Kevin Moshal
Grant Thornton LLP
Fair value measurement of financial instruments
Melanie Russell
Kalex Valuations
Impairment and credit losses
Abhimanyu (Abhi) Verma
KPMG LLP
Financial instrument recognition, classification and measurement
Mahesh Narayanasami
KPMG LLP
An overview of the upcoming changes to hedge accounting in IFRS 9
Kirsty Merath
PricewaterhouseCoopers LLP
Enhanced disclosure task force, overview of RF 10
Jennifer Zhao
Ernst & Young LLP
Hedge relationships: Practical considerations for eligibility and ineffectiveness
Diana H. Kurvers
Scotiabank
Accounting for fair value and cash flow hedging relationships
Barbara Yager
KPMG LLP
An implementation case study: Meridian Credit Union
Bill Maurin
Meridian Credit Union
Financial instrument disclosures
Sona Ruparelia
BDO Dunwoody LLP
Financial instruments: Recognition, classification and measurement
Cynthia Yeung
Ernst & Young LLP
Currency hedging
Perry Teperson
Leith Wheeler Investment Counsel Ltd.
Implementing hedge accounting standards
Humayun Jafrani
Ernst & Young LLP
Testing hedge effectiveness & managing accounting issues
Edward Lee
PricewaterhouseCoopers LLP
Establishing a hedging policy and strategy in the current environment
Glen Chow
Minacs Worldwide Inc.
Currency hedging policy formulation for Canadian investors
Sofia S. Assaf
Mercer (Canada) Limited
Developments in financial instruments
Lara G. Friedlander
Osler, Hoskin & Harcourt LLP

Participants

Blake, Cassels & Graydon LLP

Bank of Montreal

Goodmans LLP

McCarthy Tétrault LLP

McMillan LLP

Ontario Securities Commission

PricewaterhouseCoopers LLP

Scotiabank Global Banking and Markets

Stikeman Elliott LLP

TD Bank Group

Who should attend

Chief Financial Officers, Treasurers, Controllers, Chief Compliance Officers, Vice Presidents, Directors & Managers of Finance and Accounting; Corporate Counsel; Advisors; Consultants; Regulators

Price

Price list:-
  • Course: $1975
  • Webcast only : $1575
  • Webcast and Proceedings : $1874
  • Course and Proceedings : $2274
  • Proceedings Only: $799
Order Now>>

View PDF

Additional Information

REGISTRATION:
To reserve your place, call Federated Press toll-free at 1-800-363-0722. In Toronto, call (416) 665-6868 or fax to (416) 665-7733. Then mail your payment along with the registration form. Places are limited. Your reservation will be confirmed before the event.
LOCATION:
Courtyard by Marriott Downtown Toronto, 475 Yonge Street, Toronto, ON, M4Y 1X7, (800) 847-5075
CONDITIONS:
Registration covers attendance for one person, the supplementary course material as described in this document, lunch, morning coffee and refreshments during breaks are provided for registered duration. The proceedings of the event will be captured on audio or video. Multimedia proceedings with all slides and handouts can be purchased separately on a CD-ROM which will also include the event material.
TIME:
Registration begins at 8:00 a.m. The morning sessions start promptly at 9:00.
CANCELLATION:
Please note that non-attendance at the event does not entitle the registrant to a refund. In the event that a registrant becomes unable to attend following the deadline for cancellation, a substitute attendee may be delegated. Please notify Federated Press of any changes as soon as possible. Federated Press assumes no liability for changes in program content or speakers. A full refund of the attendance fee will be provided upon cancellation in writing received 13 days prior to event date. No refunds will be issued after this date. Please note that a 15% service charge will be held in case of a cancellation.
DISCOUNT:
Federated Press has special team discounts. Groups of 3 or more from the same organization receive 15%. For larger groups please call Sandra Frattolillo at 1-800-363-0722, ext. 223 to get more information.
PAYMENT:
Payment must be received seven days prior to the event date.