Trading Back Office

Level 3

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September 23, 2021

Back office is the internal division of an organization that carries out the administrative work of the company. It provides support to employees who work on the front lines of the business operation. Back office serves as the pillar of every company as it provides vital back end support to the overall success of the the business.

This course is about the back office activities, from contract conclusion, processing settlement and accounting and managing the collateral, ensuring there are enough funds to clear deals, until managing regulatory reporting and tax.

 

This course is organized in collaboration with Entrima, founded (2014) to provide a solution to market participants for the influx of regulation of capital and energy markets. Various regulatory packages require staff training; education being a mandatory part of the compliance framework. Interpretation of case studies requires specific knowledge of markets, products, prices and trading, as well as value chains of metals, agricultural products, oil, gas, coal and electricity

The course is addressed to people who want to improve their knowledge of main activities handled in back office

Curricula

 

  • Administrative processes

    • back office tasks & responsibilities

    • invoicing & payments; accounts payable & receivable

    • nomination, allocation & reconciliation

  • Straight through processing

    • The deal life cycle; from deal capture & confirmation to delivery, incl. clearing,

    • margining & collateralization and settlement

  • End-of-day processes

    • daily (or periodic) reporting; End-of-day/month/year

    • position reports, P/L statements & performance management

  • Margining

    • initial margin, variation margin & maintenance margin

    • correlation, haircut & cross-margin

    • discounts or reduction on deposits

  • Netting

    • concept of netting

    • bilateral & multilateral netting

    • netting by novation, close-out and settlement netting

    • master agreements & counterparty credit risk

  • Settlement

    • daily settlement & final settlement regarding futures

    • settlement procedures; settlement date or period

    • settlement of commodity options

    • cash settlement

  • Accounting – Mark-to-Market valuation

    • valuation of trading positions & fair value

    • IFRS, IAS and hedge accounting

  • Accounting – Book structure

    • accounts/books; at division, department & personal level

    • lock-in models, for the hedging of physical assets

  • Accounting – Internal transfers & transactions

    • deals between the business units ‘sales’ & ‘trade’

    • transactions between ‘trade’ & ‘treasury department’

    • transfers between ‘generation’/’asset management’ & ‘trade’

  • Accounting – Internal transfer pricing

    • liquidity premium & validity premium

    • risk premium & profile premium

    • performance management & P/L responsibility

  • Indices – Price indexation

    • index calculation & publication

    • characteristics of an index

    • what indices are used for

    • well-known commodity indices

  • Reporting – Internal (financial reporting)

    • position reporting, price reporting & valuation

    • market risk limits, position limits and credit limits

    • mark-to-market valuation & result

    • financial ratios, such as balance sheet ratios

  • Reporting – External (regulatory reporting)

    • consequences of EMIR & REMIT

    • ICT solutions

    • transaction reporting & reporting of fundamental data

Cost

   1500 lei/person

     Discounted fee for AFEER member: 

                               975 lei/person or 5 points AFEER+