Foreign Exchange, Money Markets and Derivatives

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Foreign Exchange, Money Markets and Derivatives

The course emphasizes the integrated nature of FX, money markets and derivatives. Mastering the mechanics and usages of such instruments provides excellent opportunities for arbitrage, hedging and risk management for those engaged in corporate treasury functions, commercial banks and asset management companies. The course also analyses the liquidity characteristics and risks of different instruments and funding strategies. The global foreign exchange (FX) and money markets are the world’s largest markets and pivotal parts of the financial system.  In foreign exchange alone, more than $5 trillion of transactions occur daily. These markets provide funding, trading and investment opportunities and are the conduit between all other components of the world’s capital markets. In recent years, the importance of the money markets has become even greater as financial institutions focus more closely on the management and diversification of their sources of liquidity, apply greater discipline to their funding and examine the attractions of short term investment and trading strategies.

Course Objectives

  • Develop a deep understanding of the FX market, its mechanics and major participants
  • Analyze the role and impact of central banks on FX and money markets
  • Examine the nature of money supply, open market operations and quantitative easing
  • Demonstrate a thorough understanding of liquidity, capital adequacy and solvency
  • Apply analytical skills to key financial products within global money markets
  • Explain the logic and uses of financial derivatives – forwards, swaps and options
  • Develop an understanding of key strands of financial risk management