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REGISTER NOW: Last Set of Workshops for the Year

Wed 9 Nov 2011

ABOUT THE ELECTRICITY FUTURES & OPTIONS WORKSHOP

This introductory workshop provides an understanding of the d-cyphaTrade ASX Electricity Futures and Options Market and how the market is traded. The market has grown to eclipse the size of energy consumed in the underlying physical electricity market by over 200% and incorporates the largest electricity futures options market in the world. The workshop provides a unique understanding of the futures market and benefits of centrally cleared derivative products for traders, risk managers, treasurers, regulators and other industry observers. Market liquidity and recent electricity futures price history is also analysed in the workshop.

Due to the importance of credit default risk management in today’s economic environment, particular attention is given to comparing the collateral and credit default risk management benefits of electricity futures in comparison to the Over the Counter (OTC) electricity market. Worked examples reinforce an understanding of SFE margining and settlement procedures and calculation of credit default risk mitigation. The workshop also provides practical examples on how to trade electricity futures and options via off-market negotiated Block Trading, onscreen trading and eliminating OTC credit default risk via the ASX 24 Exchange for Physical.

WHO SHOULD ATTEND

As an introductory workshop there is no assumed knowledge, it forms a good basis for gaining exposure into understanding the electricity futures and options market. The course is also a good refresher for existing market participants.

The course will be of particular interest to hedge funds, investment banks, industry regulators, equity analysts and existing energy traders seeking to improve their knowledge of the physical and financial electricity market. Risk managers and treasurers of energy-intensive companies will also find the course of interest.

WORKSHOP DETAILS

DATE & VENUE:

  • WELLINGTON DATE: Wednesday 7 December 2011
  • SYDNEY DATE: Monday 19 December 2011

>>Click here to go to the Online Registration Form

PRESENTER:

DURATION: 9AM- 4PM (7hrs)

FEES: AU $1,195 (exc GST)

MATERIALS: Workshop notes, completion certificate refreshments and lunch provided.

WORKSHOP AGENDA

  • Introduction by d-cyphaTrade
  • The Australian Electricity Pool Market
    • Introduction to the spot market
    • Fundamental drivers of the spot price
    • Information sources
    • The Australian Electricity Futures and Options Market
    • Market Liquidity and Price History
    • Fundamental drivers of futures prices
    • The Forward Curve & impact on energy-intensive industries
  • The Australian Financial Market
    • Market Liquidity and Price History
    • Fundamental drivers of futures prices
    • The Forward Curve & impact on energy intensive industries
  • Hedging with futures and options
    • Hedging techniques for generators
    • Hedging techniques for retailers & large energy users
  • Characteristics of the Centrally Cleared Futures Market
    • Collateral funding efficiencies for trading operations (OTC versus ASX)
    • Compliance benefits
    • Hedge Accounting benefits, AASB 139
  • Electricity Futures and Options Contract Specifications
    • Futures (Base, Peak and Caps)
    • Options (Peak and Base Strip)
    • Expiry Process - Cash Settlement and Option Exercise
  • ASX 24 Electricity Trading Mechanisms
    • Pre-negotiated business
    • Block Trades/OTC negotiated dealing
    • ASX 24 Custom Market
    • Strip Trading
    • Exchange for Physical (EFP)
  • Daily Price Settlement Procedures
  • Margining at ASX 24 Clear (futures)
    • Initial Margins and Variation Margins
    • Introduction to SPAN margining
    • Initial margin offsets
    • Option and futures expiry
    • Worked examples
  • Miscellaneous
    • Futures Offsets Arrangements
    • Hedging the M&A of an Electricity Business

REGISTER NOW

For further information or to enrol for any workshop please contact a member of d-cyphaTrade via:

1. Phone
Domestic (Toll free): 1800 330 101
International: +61 2 9237 0900

2. Online
Please go to Registration Form or email training@d-cypha.com.au and a representative will be in touch with you shortly.

To organise an in-house workshop please call a member of the d-cyphaTrade Team on 1800 330 101 to discuss your specific requirements.