Risk
Derivatives and the Role of Counterparties
OTC and Exchange-Traded Derivatives, Margins, and Central Clearing
5 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 5 units of CPD . One unit is the equivalent of one hour of learning.
Course Sections
This CPD course is made up of the following sections:
- Derivatives (video)
- Derivatives (quiz)
- Hedging strategies (video)
- Hedging strategies (quiz)
- Exchange trading (video)
- Exchange trading (quiz)
- Margins (video)
- Margins (quiz)
- Central counterparties (video)
- Central counterparties (quiz)
- Importance of central clearing (video)
- Importance of central clearing (quiz)
What You Will Learn
- Distinguish between linear derivatives (forwards, futures) and non-linear derivatives (options) based on their payoff structures
- Compare over-the-counter markets with exchange-traded markets in terms of standardisation, counterparty risk, and regulation
- Explain how margins, collateralisation, and special purpose vehicles manage counterparty risk in OTC derivatives
- Describe the role of a central counterparty (CCP) including novation, netting, and default fund contributions
- Identify the five categories of OTC derivatives and assess why notional value alone can overstate true risk exposure
- Evaluate how central clearing reduces systemic risk through position offsetting and transparency
Who This Course Is For
- Finance professionals who deal with derivative instruments or counterparty risk management
- Risk and compliance analysts working in banking or financial services
- Accountants involved in the valuation or reporting of derivative positions
Prerequisites
- Basic understanding of financial instruments such as bonds, equities, and simple derivatives
- Awareness of how financial markets operate, including the concept of counterparty risk
Frequently Asked Questions
Course Details
CPD Credits5
CertificateYes
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CPD certificate on completion
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Self-paced learning
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