CME Institute LIVE: Financial Futures and the Institutional Trader’s Toolbox

Partner Content from CME Group – Today’s European money managers must be on the lookout for new ways to generate alpha in low-return environments, while nimbly navigating hairpin market turns from a 24-hour world news cycle. Uncleared Margin Rules have many institutions looking for ways to negate higher costs, such as switching to listed FX options. Portfolio managers must manage a slew of risks and new technologies while seeking greater cost efficiencies in ever-more-regulated, capital-constrained markets. To be successful requires a deep and comprehensive toolbox of the right tools, innovative strategies and a forward-thinking mind ready to learn.

This workshop provides a deep dive into how you can achieve just that using CME Group’s benchmark interest rate, equity index and FX derivatives products. Discover new ways to reduce existing and new margin requirements from Uncleared Margin Rules while freeing up credit lines, increasing cost efficiencies and maximizing your risk/return.

Who should attend?

Portfolio managers, research, trading and client facing professionals from pensions, asset management, and insurance firms as well as sell-side professionals from banks, broker-dealers and futures brokerage firms.

What you’ll learn

The CME Institute Live event will provide you with practical applications of exchange-traded derivatives (ETD) as effective trading and risk management tools. You also will learn how to analyze the price of futures versus cash markets, and how to evaluate ETDs as an effective tool for your portfolio.

Agenda

Day 1 │ Interest Rate Workshop
9:00 – 9:30	Welcome Standardized futures vs. OTC Exchange-traded derivatives & clearing benefits CCP vs. bilateral counterparty risk
9:30 – 10:30	US Treasury Futures Foundations Delivery process Pricing mechanics Basis, carry-repo, net basis Cheapest to deliver (CTD), measuring risk
11:00 – 12:30	US Treasury Futures Applications Basis trading Invoice spreads Duration adjustments Yield curve Option overlay
12:30 – 13:30	Break, lunch provided
13:30 – 14:30	STIRs Basics Contracts, design & specs Fed Funds (FF) & FedWatch Convexity bias Eurodollar (ED) Packs, Bundles, and Strips SOFR-SONIA
14:30 – 15:00	Break
15:00 – 16:30	STIRs Applications Hedging rate exposure & creating synthetic investments Pricing/hedging interest rate swaps Calendar spreads & butterflies Inter-commodity spreads: FF-ED & Term TED spreads Eurodollar options

Day 2 │ FX & Equity Index Workshop
9:00 – 9:30	Welcome Financial futures, incl. exchange-traded vs. OTC Uncleared Margin Rules (UMR) implications and margin CCP vs. bilateral counterparty risk
9:30 – 11:15	FX Futures Size and scope of FX Quote conventions, futures pricing, contract mechanics Currency overlays FX as a non-correlated asset class Basis: CME FX Link FX options Uncleared Margin Rule (UMR) considerations
11:15 – 11:30	Break
11:30 – 12:30	Equity Index 1.0 Indexing/benchmarks Pricing mechanics Carry, dividend income CAPM review, beta, alpha Beta replication, beta adjustment
12:30 – 13:30	Break, lunch provided
13:30 – 15:00	Equity Index 2.0 Cash equitization Portable alpha Index spreads Select Sectors, sector rotation
15:00 – 15:15	Break
15:15 – 16:45	Equity Index 3.0 Basis Trade at Index Close (BTIC) Trade at Cash Open (TACO) Total Return & Dividend futures Futures versus ETFs Options for price risk