Commodities, Derivatives and Structured Products

Commodities - Part 4 (2023)


This eCourse consists of three modules. Module 1 focuses on electricity as it's now traded as a commodity, and there is even some international trade of electricity. This module covers the electricity industry as a whole, and its major trading characteristics.

Module 2 aims to outline the key features of global supply and demand for the different types of coal, how it is physically traded and what risk management tools are used. The tutorial will also outline the future challenges for coal demand and its potential environmental impacts.

Module 3 examines natural gas as a commodity, including its chemistry make-up, supply and demand dynamics, and the role of pricing hubs in gas commodity trading.


On completion of this course, you will be able to:
- Recognise the basics of electricity, including its unit of measurement and why it is supplied via direct and alternating currents
- Identify the generation, transmission, and distribution sectors
- Recognise the primary energy sources of electricity
- Identify the factors driving the demand for electricity
- Recognise the wholesale and retail markets
- Identify the factors impacting electricity prices
- Identify the characteristics of coal and its popular varieties
- Recognise the key factors affecting the demand and supply of coal
- Identify the key markets and price indices for coal
- Recognise the most common derivatives used to hedge coal prices
- Recognise the key characteristics of natural gas and why these are important in terms of gas as a traded commodity
- Identify the key locations of supply and demand for natural gas, and the importance of gas storage
- Outline the role of pricing hubs in terms of natural gas as a traded commodity and list the main types of gas contract available in the market
- Recognise the role that natural gas can play in the transition to a more sustainable world


Module 1: Commodities - Electricity
Topic 1: Overview of Electricity
Topic 2: The Electricity Industry
Topic 3: Electricity Markets

Module 2: Commodities – Coal
Topic 1: Overview of Coal
Topic 2: Coal Demand Supply
Topic 3: Coal Trading & Pricing
Topic 4: Coal Risk Management

Module 3: Commodities - Natural Gas
Topic 1: Overview of Natural Gas
Topic 2: Supply & Demand
Topic 3: Gas Trading
Topic 4: Decarbonization


Relevant Subject
Type 2 - Dealing in futures contracts
Type 5 - Advising on futures contracts
SFC:2.00, PWMA:2.00
Chinese Securities Association of Hong Kong (HKCSA): HK$670
All Member: HK$640
Staff of Corporate Member: HK$640
Non-Member: HK$960