Lifecycle of a Trade – Commodities

This program introduces participants to the trade lifecycle for commodities trading. Types of trades include spot and derivative trades in various commodity types such as energy, metals, etc. Included are commodity swaps, futures, forwards, and options. Participants follow the sequence of activity that occurs “behind the scenes” on trade date once a commodities trade is executed through the final exchange of value on settlement date.

Course Objectives

By the end of the course, participants will be able to:

• Recognize how commodity trades are executed among brokers, dealers, their customers and inter-dealer brokers
• Identify the critical functional areas related to moving commodity trades forward to settlement, including confirmation and clearance
• Distinguish types of operational risks related to commodity trades that have a potential impact on the bank and its customers, as well as the industry as a whole
• Examine specific post-execution processes related to commodity, especially as it relates to issues surrounding physical settlements

Suggested Prerequisites: None

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7