Introduction to the Currency Markets

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This half-day course covers the fundamental knowledge you need to know about the FX markets and outlines the characteristics, structure and trading conventions of both spot (immediate delivery) and forward (future delivery) market. In addition, the investors’ perspective is discussed and describes how portfolio managers hedge their positions against currency volatility.

Key Learning Objective

• Gain a deeper understanding of global FX markets
• Identify the major drivers of currency fluctuations
• Understand the terminology used in the FX markets and the quoting conventions
• Differentiate between the spot and forward markets and learn how investors engage in the two distinct market places
• Review how portfolio managers can protect the portfolios from FX losses
• Explore how investors use the FX swap market to enhance yields on foreign investments
• Look inside the carry trade strategy and the risks associated with this strategy
• How to access currency exposure to the emerging markets using Non-Deliverable Forwards (NDFs)

Start: 13:30

FX market fundamentals

• The FX environment, currency pairs and codes
• Who trades in the currency markets
• The two major FX products – spot and forward trades
• Global FX liquidity
• Macro drivers of the spot price

Foreign currency management and the spot FX market

• Standard exchange rate notation and quotation conventions
• Big figures and pips/points
• Base currency and variable currency rules

Coffee Break: 14:50 - 15:10

Foreign currency management and the forward FX market

• Why the need to hedge on a forward basis?
• Risks associated with hedging using forwards
• Forward market quotations and pricing conventions
• FX swap products
• How investors use FX swaps for yield enhancement

Carry trading strategies and the spot FX market

• What is the carry trade
• How to make money from this strategy and the downside risks

Non-deliverable forwards

• Access tool to emerging market currencies
• Quoting conventions and mechanics

End: 16:30

This half day course is relevant to those who are new to the investment industry or those looking to improve their knowledge and understanding of the currency markets.

• Investment professionals, investment administration and operations
• Client services and sales and marketing
• Risk management, legal, audit and compliance
• Finance and accounting
• HR and learning and development
• IT and software developers

Russell Hammerson

Russell Hammerson is an experienced banker working with structured products and exotic options over 15 years.

Russell started his career in the fixed income trading division at Chase Manhattan in 1986. After having graduated from the Chase nine-month advanced financial risk analysis programme, he was seconded to the Chase insurance banking division for a year. Taking his insurance expertise with him, he later moved to Citibank to work in the financial engineering division, structuring fixed income and equity products for institutional investors.

From Citibank, Russell moved to Bear Stearns to help set up the newly established equity derivatives group as associate director responsible for marketing and structuring of European products prior to becoming head of structured products at Commerzbank.

Before moving into the technical training arena, Russell ran the structured product group at Banque Nationale de Paris followed by Bankgesellschaft Berlin, London, in a similar role as head of engineered products and international new issues and director of the London Management Committee.

Russell has been training all areas of capital markets since 2001. At BG Consulting (now trading as ZISHI Cornerstone), he specialises in structured products, equity and credit derivatives and exotic options.

IA Member: £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

We will continue to monitor and follow government guidance regarding coronavirus (Covid-19) to ensure the safety of our team and our members. Please be advised some training courses could change from hybrid delivery (being held in-person and virtually) to solely virtual delivery, should government guidance require.