Last edited by Goltinris
Tuesday, August 11, 2020 | History

2 edition of Operational risk management of derivatives trading found in the catalog.

Operational risk management of derivatives trading

David K. T. Lau

Operational risk management of derivatives trading

current issues, case study & opinion survey.

by David K. T. Lau

  • 114 Want to read
  • 18 Currently reading

Published by The Author] in [s.l .
Written in English


Edition Notes

Thesis (M. B. A.) - University of Ulster, 1997.

ID Numbers
Open LibraryOL18144557M

The Committee is proposing a limited number of updates to: (i) align the principles with the recently finalised Basel III operational risk framework; (ii) update the guidance where needed in the areas of change management and information and communication technologies; and (iii) enhance the overall clarity of the principles.   Volume 2 consists of 8 Parts and 18 Chapters covering risk management, market risk metodologies (including VAR and stress testing), credit risk in derivative transactions, other derivative trading risks (liquidity risk, model risk and operational risk), organizational aspects of risk management and operational aspects of derivative trading.

Operational risk remains the most poorly understood and neglected risk in managing derivatives portfolios. This two-day course is designed for risk managers, auditors, compliance officers, back office and IT professionals, and regulators who need to better identify, measure, control and monitor this important risk.   In addition, they reveal how financial derivatives can effectively manage interest rate risk and discuss how hedge funds use financial derivatives. Uncertainty is a hallmark of today's global financial marketplace. This essential guide to financial derivatives will help you unlock their vast potential for risk management and much, much more.

  Derivatives Handbook: Risk Management and Control brings together the latest and best thinking on derivatives and risk management from some of the world's leading practitioners, academics, attorneys, accountants, consultants, and professionals all in one acclaimed s: 1. An Introduction to Derivatives and Risk Management, 10th ed. Ch. 4: * One-Period Binomial Model (continued) This is the theoretical value of the call as determined by the stock price, exercise price, risk-free rate, and up and down factors.


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Operational risk management of derivatives trading by David K. T. Lau Download PDF EPUB FB2

Operational risk. Derivatives. For example, e-trading requires the rapid processing of quotes and orders – meaning speed is king. Liquidity management, on the other hand, is a volume-heavy process, placing the emphasis on data-crunching capacity.

which can ‘stream’ data instantaneously to decision and risk management systems, but. A financial institution’s trading book comprises assets intended for active trading.

These can include equities, debt, commodities, foreign exchange, derivatives and other financial contracts. The portfolio of financial instruments in the trading book may be resold to benefit from short-term price fluctuations, used for hedging or traded to fulfil the firm’s or clients’ needs.

Risk Management consists of 8 Parts and 18 Chapters covering risk management, market risk methodologies (including VAR and stress testing), credit risk in derivative transactions, other derivatives trading risks (liquidity risk, model risk and operational risk), organizational aspects of risk management and operational aspects of derivative trading.

Counterparty Risk. Counterparty risk, or counterparty credit risk, arises if one of the parties involved in a derivatives trade, such as the buyer, seller or dealer, defaults on the This white paper presents a particular occurrence of this issue on the interest rate market, extends it to commodities, and details some risk management techniques that could have been used in.

'Managing Operational Risk in Financial Markets' outlines the major issues for risk management and focuses on operational risk as a key activity in managing risk on an enterprise-wide basis. While risk management had always been an integral part of financial activity, the s has seen the requirement for risk management establish itself as a.

Yet in operational risk management, firms look at risks independently, rather than having a portfolio approach. Covid has underlined the interdependent nature of risks, and the necessity to have more of a systemic approach to risk management,” she says. Analysis of the interdependence of risk can be learned from other workplaces.

The Asia Risk Awards return in to recognise best practice in risk management and derivatives use by banks and financial institutions around the region. Margin in Derivatives Trading aims to do just this, Search Risk Books. Recommended Books.

Credit Derivatives: Trading, Investing, and Risk Management - Ebookgroup Version: PDF/EPUB. If you need EPUB and MOBI Version, please send me a message (Click message us icon at the right corner) Compatible Devices: Can be read on any devices (Kindle, NOOK, Android/IOS devices, Windows, MAC) Quality: High Quality.

No missing contents. The purpose of the Fundamental Review of the Trading Book (FRTB) is to cover shortcomings that both regulations and internal risk processes failed to capture during the financial crisis.

The introduction of the FRTB demonstrates that regulators are willing to look at: A convergence between risk measurement methods. The world leader in specialist books on risk management and the financial markets.

Operational Risk vs. Financial Risk. In a corporate context, financial risk refers to the possibility that a company's cash flow will prove inadequate to meet its obligations—that is, its loan. Risk Management in Trading includes an introduction to hedge fund and proprietary trading desks and offers an in-depth exploration on the topic of risk avoidance and acceptance.

Throughout the book Edwards explores the finer points of financial risk management, shows how to decipher the jargon of professional risk-managers, and reveals how non Reviews: 3. Credit derivatives Value at Risk based on • Prob. of Default – ORR • LGD – FRR Operational Risk Age Risk-based capital Pace of business growth Infra investment, planning People management, training Value at Risk based on •Loss frequency •Loss severity.

Derivatives are sometimes used to hedge a position (protecting against the risk of an adverse move in an asset) or to speculate on future moves in the underlying instrument.

Hedging is. The problems surrounding the use of derivatives in recent years have primarily been due to difficulty in understanding these risks and thus using appropriate derivatives for risk management purposes.

Derivative use is sometimes misunderstood because, depending on the terms of derivative it may be used to increase, modify, or decrease risk. Fundamentally, the risk of derivatives (as of all financial instruments) is a function of the timing and variability of cash flows.

Comptroller's Handbook 1 Risk Management of Financial Derivatives. As of Januthis guidance applies to federal savings associations in addition to national banks.*.

This booklet provides an overview of financial derivatives, addresses associated risks, and discusses risk management practices. Applicability. This booklet applies to the OCC's supervision of national banks and federal savings associations. Derivatives and Risk Management provides readers with a thorough knowledge of the functions of derivatives and the many risks associated with their use.

Besides discussing the particular derivative instruments available in India, the book concentrates on four types of derivatives—forward contracts, futures contracts, swap contracts and. market conditions. Open and timely communications between trading, support, and risk management units are essential.

BC provides guidelines on risk management practices for national banks engaging in financial derivatives activities. The guidelines represent prudent practices that will enable a. traded derivatives since PSERS is contractually bound to a regulated exchange, not an individual counterparty, once the trade has been accepted by both trading parties.

Settlement risk is mitigated for OTC derivatives by requiring the counterparty to post collateral for .Price Risk Management and Trading. Energy risk management expert, Tom James, does it again. His latestbook is a timely addition to the rapidly developing energy tradingmarkets.

This book should be on every energy trader, risk managerand corporate planer's desk. it is an easy read as Tom goes intogreat detail to explain the intricacies of this.Tools for sales, trading and operations Bloomberg Trade Order Management Solutions (TOMS) provides fixed income sell-side firms the capabilities to efficiently manage inventory, risk, P&L.