Commodities, Derivatives and Structured Products

Introduction to Derivatives - Part 2 (2018)



This eCourse consists of three modules. Module 1 describes derivatives markets today, both OTC and exchange-traded – and how the lines between these have become blurred by regulations adopted following the global financial crisis. The module also outlines the role of end-users and intermediaries in derivatives markets, as well as the many applications of derivatives for the various market players.

Module 2 outlines the basic structures and terminology associated with options, and looks at the ways in which they are used. The module also describes option variations across asset classes and markets.

Module 3 outlines the basic structure of a swap and the different swap types. It also describes how market participants can use swaps to transform existing asset or liability positions, or speculate on underlying market movements. Finally, the significant changes in the regulatory environment, particularly as regards clearing and trading, are discussed.


On completion of this course, you will be able to:
- List the differences between OTC derivatives and exchange-traded derivatives markets
- Recognize the role of the key market players in derivatives markets
- Identify the motivations behind using derivatives
- Describe basic option mechanics and option market terminology
- Explain the main uses of options, including basic strategies for limiting downside risk and generating income
- Outline the many markets and asset classes in which options are traded
- Identify the key characteristics of swap contracts
- Compare the main types of swap
- Recognize the scale and spread of the major swap markets
- Recall how the largest market, the interest rate swap (IRS) market, operates and how it and other swap markets have been affected by regulatory change


Module 1: Derivatives - Markets
Topic 1: Derivatives Market
Topic 2: Market Players
Topic 3: Derivatives Uses

Module 2: Options - An Introduction
Topic 1: Option Basics
Topic 2: Option Uses
Topic 3: Option Markets

Module 3: Swaps - An Introduction
Topic 1: Basics of Swaps
Topic 2: Swap Types
Topic 3: Markets Overview


SFC:2.50, PWMA:2.50
Non-Member: HK$1050
Staff of Corporate Member: HK$710
All Member: HK$710