Commodities - Trading and Investment Strategies

London: Thursday 9 - Friday 10 September 2010

Objectives  

This course is to explore commodity trading and investing perspectives from the very short term trade to longer buy-and-hold strategies. The course considers the different motivations and strategies used by participants and also provides the underlying theory of the strategy and the actual practical knowledge for implementation.

Target Audience

This course is suitable for anyone with an understanding of the fundamental concepts of finance but wishes to know more about commodity trading and investment strategies. For persons with no or little background in commodities it would be advisable to first take the “Commodities – An Introduction” course, though there is no formal pre-requisite this basic knowledge is assumed.

Length and Structure of the Course

The course consists of two days of lectures and case studies. Each day typically consists of four 90 minute session with coffee breaks in the morning and afternoon and a lunch break in the middle. There is no exam for this course but candidates will get a certificate of attendance.

 

Course Tutor

Neil Schofield

Neil is a visiting fellow at the University of Reading and is a freelance training consultant.  From 2001 to 2008, he was global head of financial markets training at Barclays Capital in London.  He was responsible for the design and delivery of a large number of seminars in a variety of different asset classes to many different audiences.  Previous to that he was a director at Chisholm Roth training in London and has also held positions at Chase Manhattan Bank as well as Security Pacific Hoare Govett (now trading as Bank of America).  Neil has over 20 years of experience in financial markets.  In 2008, he published his first book "Commodity Derivatives" and is currently in the process of writing a second "Relative Value in Financial Markets".

Course Outline

Session 1 - Why invest in commodities    

  • The rationale for investing in commodities
  • The dynamics of a forward curve for commodities
  • Concepts of contango, backwardation and convenience yield

Session 2 - Tactical / market opportunity based trades – Geographical and time spreads

  • Popular strategies in the base metal markets
  • NYMEX WTI vs. ICE Brent
  • Quarterly, seasonal and annual spreads in energy markets

Session 3 - Tactical / market opportunity based trades - Energy

  • Energy vs. refined product spreads
  • Interfuel spreads
  • ‘Dark’ and ‘spark’ spreads

Session 4 - Tactical / market opportunity based trades - Emissions

  • EUAs and CERs
  • Trading emission strips

Session 5 - Exchange traded products

  • Exchange Traded Funds
  • Exchange Traded Commodities
  • Exchange Traded Notes 

Session 6 - Capital protected structured products

  • Basket notes
  • Outperformance notes 
  • Best of / Worst of structures 

Session 7 - Yield enhanced structured products

  • Reverse convertibles
  • Leveraged structures 

Session 8 - Long term allocation to broad commodity indices

  • The main index commodities
  • The main source of return from indices (roll yield)
  • Recent index investment structures

Details of the next Commodities - Trading Strategies seminar

ICEICE Education, London, have a look at the venue

Thursday 9 - Friday 10 September

Please e-mail John Evans: j.evans@icmacentre.ac.uk  or call + 44 118 378 6498

This is a jointly promoted ICMA Executive Education and ICE Education course.

Hosted at ICE Education London offices at Milton Gate, 60 Chiswell Street. 

IntercontinentalExchange® (NYSE: ICE), is a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets. ICE's diverse markets offer contracts based on crude oil and refined products, natural gas, power and emissions, agricultural commodities including canola, cocoa, coffee, cotton, orange juice and sugar, as well as credit derivatives, foreign exchange and Russell Index futures and options.

Fees

London Course
The fees for the Commodities - Trading and Investment Strategies course is £1000.00 for both ICMA & ICE Members and £1300.00 for non-members with the following discount scale being offered:
2-4 candidates - 5% discount each*
5+ candidates - 10% discount each*
*Please note that discounts are applied by way of a refund to the organisation when registration has closed and the final number of candidates from the firm has been determined

For more information

This course is available on a group booking basis, for more information please email cts@icmacentre.ac.uk