coal trading and risk · pdf filecoaltrans conferencesorganises leading international coal...

Mastering essential trading and hedging techniques

10-12 November 2008

Hilton Singapore

A highly focused three day programme:

Gain an in-depth analysis of physical and financialcoal marketsGrasp the fundamental mechanisms of derivatives tradingDevise key risk management indicators and optimise their use Develop effective trading and hedging strategies Learn to utilise options as a risk management toolIntegrate freight as a driver in your trading strategyManage counterparty risk via clearing and contract provisionsSet up and develop an effective trading desk whilst avoiding the pitfalls

Coal Trading and Risk Management

organised by:

An executive training programme from Coaltrans Conferences

in association with

Limited course places

available

I thought the course was superb, in just

three days it covered all ofthe basics of tradingand coal derivatives.

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QUOTE FROM PREVIOUS DELEGATE

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Early birdsave

US$400Book by

26 September 2008

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official publication

supported by

Coaltrans Conferences organisesleading international coal conferences,

which attract delegates from all overthe world. It also runs focused regional

events, exhibitions, field trips andtraining courses, with a reputation foremploying the highest organisational

standards. In 2008-2009, Coaltrans Conferences is running events in

Australia, China, the Czech Republic,India, Indonesia, Singapore, South

Africa, the UK and the USA.

Vulnerable to fluctuating coalprices and freight rates?

Trading coal or energy?

Need to sharpen your hedging tools?

Speculating on the current volatile market?

Working with coal and freight derivatives?

Coaltrans’ three day intensive programme providesexecutives with the essential risk management and hedgingmethods needed to carry out an effective risk managementstrategy in today’s volatile coal market. The courseprovides practical working knowledge of coal trading,equipping you with valuable day-to-day tools that canbe applied as soon as you are back in the office.

Whether you are entering the market for the first time or alreadyhave an understanding of physical commodity trading and/orfinancial products, this course will advance you to the next level.

Recent Coaltrans’ Coal Trading and Risk Management Singaporeprogrammes were attended by executives in key energy, mining, utilityand trading companies from Australia, China, Hong Kong, India,Indonesia, Japan, Malaysia, Singapore, South Korea and Thailand.

Hands-on training and long-lasting benefitsThroughout the course, teaching will be reinforced with practical examplesand exercises inspired by day-to-day trading situations. The programme will alsodraw upon the hands-on experience of a panel of expert guest speakers whowill share their views on best practice and offer pragmatic advice on the tradingand risk management tools most vital to their success in the field.

Enduring value: Delegates will take away beneficial referencematerials as well as advice on continuing their training.

Course Outline The core objectives of this course are to achieve a practical, working

understanding of key risk managementand speculative trading tools in the coaland dry bulk shipping markets including

structured deals, freight derivatives,coal contract provisions, clearing

and options.

Venue The Hilton Singapore is

conveniently located on Orchard Road, the heart of Singapore’s shopping,

entertainment and commercial district,and offers a range of facilities for leisure and business. The 423 room hotel is aleisurely 20 minute drive from ChangiInternational Airport and a five minute

walk from the Mass Rapid Transit (MRT) Orchard

underground rail network station.

Hilton Singapore 581 Orchard Road, Singapore 238883Tel: +65 6737 2333 Fax: +65 6732 2917

Who should attend?

Coal producers Coal buyers

Coal marketersEnergy traders and marketers

Shipping and logistics managersBank and financial institution executives

Importers / ExportersEnergy brokers

Middle- and back-office managersRisk managers

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Day One: Monday 10

November 2008

0800Registration and coffee

Session 1Introduction: The steam coal derivatives market

0830-1030

Instructor and Course Director:Guillaume Perret, Director, Perret Associates

� Course outline and organisation� Faculty’s and delegates’ introduction � The importance of risk

management in coal andcommodities trading

� Main coal derivatives products –definition, methodology, volumes

� Market structure – principals,brokers, exchanges

� Analysis of the new derivativesproducts recently launched

1030Networking refreshment break

Session 2The physical market and its

relative maturity1100-1215

Instructor: Pat Markey, Chief Operations Officer, globalCOAL

� Is physical coal a commodity?� Role of globalCOAL in the

commoditisation of steam coal� Views on future product

developments� Managing price risk – separating

physical from financial risk

1215Networking lunch

Session 3Using derivatives for risk

management1330-1545

Instructor:Guillaume Perret, Director, Perret Associates

� Hedging physical positions with swaps

� Interactive risk management casestudies for suppliers, end users and traders

� Implied freight and other arbitrage

1545 Networking refreshment break

Session 4Mark-to-market and

forward curve1600-1700


� What is mark-to-market and how isit used?

� Implications and potential uses� Price forecast versus forward curve� Contango and backwardation and

switching between the two� Trading the forward curve, e.g.

time spreads

1700 Networking drinks reception

Day Two: Tuesday 11 November 2008

0830Morning coffee

Session 5Introduction to options

0900-1030


� Definitions – call, put, strike, premiumand other essential concepts

� Premium calculation and the BlackScholes Model

� Interest of options and practical examples

� Risks and pitfalls


Session 6Case study and tradingexamples in coal and

commodities1100-1200


� Interactive case study emphasisingpitfalls to avoid in commodity trading

� Lessons to be applied in the coal market

for latest programme updates please visit our website atwww.coaltrans.com/ctrmsingapore

training course agenda

A comprehensive overview of the coal

derivates market.

Very good and interesting.Gave me a goodunderstanding of financingissues within the coalmarket.

“


“Early bird

save

US$400Book by

26 September 2008

Coal Trading and Risk Management -10-12 November 2008


Session 7Structured deals in the

coal market1330-1530

Instructor: Russell Norton, Head ofCommodities, Asia, Barclays Capital

� Use of structured derivatives tomanage coal price exposures

� Risk management solutions acrossmultiple commodities and currencies

� Structured financing solutions� Interactive case studies


Session 8Case study and

trading examples1600-1700

Instructor:Guy Broadley, Derivatives Broker, Freight Investor Services Pte Limited

� Physical market fundamentals andthe growth of freight futures

� Vessel sizes and trade routes� Freight derivatives – main products,

market sizes and volumes traded � Freight derivatives market structure –

principals, brokers, exchangeand clearing

Day Three: Wednesday 12 November 2008

0800 Morning coffee

Session 9What traders and brokers do:

Over-the-counter marketmechanisms

0900-0945


� Step by step worked example of aderivatives deal

� Traders’ day-to-day activity� Typical deal flow and implications at

a company level � Required infrastructure to support

trading activities� Different ways to trade coal

derivatives – over-the-counter orthrough exchanges

Session 10Understanding risk

management indicators0945-1045


� Volatility, correlation, delta, value-at-risk and other risk measures

� Easy and useful ways to calculatethese indicators

� Avoiding the false sense of securitythey can provide

� Introduction to more sophisticatedrisk management systems


Session 11Clearing: Another way toaddress counterparty risk

1100-1200

Instructor: Christopher Fix, Head of Marketing Asia Pacific, BNP Paribas Commodity Futures Asia Ltd

� What is clearing? � Clearing mechanisms – exchange,

clearing house, clearing members� Implications for market participants:

Marked-to-market, initial margins,daily margins, cash flows

� Interactive examples


Session 12Setting up a derivatives desk

and wrap-up1315-1500


� Typical trading floor organisation andbusiness models

� Departments’ responsibilities andinter-connections – front office, riskmanagement, back-office,credit, legal

� Risk analysis and strategyimplementation

� Requirements to set up and developa trading activity

� Critical issues to consider andmistakes to avoid

� Course wrap-up and next steps

1500 End of training course

The International Coal Trading Market 2007By Guillaume Perret

• Comprehensive study of derivative indices, methodology and volumes• Insightful analysis and perspectives on the latest products• In-depth review of market structure, brokers, exchanges, principals • Physical coal market flows with detailed maps of main hubs• Overview of the main clean coal technologies

Price £350 - Order your copy now and save 10%See back page for details.

Special

10% discountfor training

course participants

Course Director: � Guillaume Perret, Director,

Perret Associates Guillaume Perret has over ten years ofexperience in commodities trading andshipping. Before establishing his ownconsulting business in 2005, he spentfive years with the German utility RWETrading in London, setting up anddeveloping the steam coal and freighttrading activities and concludingstructured deals with third parties.

Between 1995 and 2000, he worked asa trader with Louis Dreyfus Negoce inParis, trading international grains andchartering physical vessels. His consultingbusiness, Perret Associates, focuses onsteam coal, solid fuels and freight riskmanagement as well as theestablishment and development oftrading activities, both physical andfinancial, based on his extensive hands-on experience in trading for front offices.

He has also earned an MBA from theLondon Business School and KelloggSchool of Management. He is theauthor of “The International CoalTrading Market 2007”, “InternationalDry Freight Market” and is co-author of“European Emissions Trading: the NewMarket”. Perret is also the author of"Steel Futures: A Turning Point For TheIndustry" (2008) and "Trading Iron Ore.A full feasibility study for a newderivatives contract" (2008)

Faculty:� Pat Markey,

Chief Operations Officer,globalCOALPat Markey has been employed byglobalCOAL Limited for six years as theMarketing Director and Head ofglobalCOAL’s front office operations,and most recently as its ChiefOperations Officer. In September of2003, Pat moved from London to openglobalCOAL’s Asian branch office,which is now based in Singapore.

Prior to working for globalCOAL, heworked as a Crude Oil and RefinedProducts Trader at Enron Capital &Trade Resources in both Houston,Texas and Singapore. In addition, heworked for Conoco Inc. for over 10years in Engineering, Supply andTrading, Internal Consulting, andStrategic Planning.

� Russell Norton, Head of Commodities, Asia,Barclays Capital Russell Norton joined Barclays Capitalin Singapore January 2005 and isHead of Commodities, Asia Pacific.

Prior to this, Russell worked forDeutsche Bank in Singapore setting uptheir commodities desk in 2000. From1994 to 2000, he worked forMasefield AG, initially based inLondon, covering risk managementand later moved to Singapore in 1996to establish and run their business inAsia. Russell started his career in1989 with BP working in the UK andSouth Africa.

Russell has a Master of Engineeringdegree in Chemical Engineering fromImperial College, London.

� Guy Broadley, Derivatives Broker, Freight Investor Services Pte Limited Guy Broadley is a dry freightderivatives broker with Freight InvestorServices (FIS). After studying Shipping,Trade & Finance at the Sir John CassBusiness School, Guy joined FIS inSeptember 2003 – at the start of therecent roller-coaster markets.

Guy is now based in Singapore, wherehe continues to broker derivativesacross all vessel sizes with a focus onthe expanding Asian client base.

� Christopher Fix,Head of MarketingAsia Pacific, BNPParibas CommodityFutures Asia LtdChristopher Fix joined BNPParibas in 1992 moving to theCommodity Derivatives platform in1999. Serving as a Credit Officer forBNPP Commodity Futures Inc. in NewYork, Christopher worked closely withthe crude oil team on the NYMEXbefore being appointed the Head ofCommodity Derivatives Credit for AsiaPacific in 2005.

Christopher is currently the Head ofMarketing for Commodity Futures inAsia Pacific.

fax: +44 20 7779 8946

email: [email protected]

tel: +44 20 7779 8945

Teaching Faculty

The expert faculty gathers executives and practitioners from a range of companies actively involved indifferent areas of the international coal business. Teaching method includes lectures, examples drawn fromreal business situations, group exercises and interactive discussions. Delegates will have ample opportunity toquestion each speaker to make the most of their expertise and experience in the field of coal trading andrisk management.

Guillaume Perret has developed a very

thorough approach to theteaching of the fundamentalsof trading in the coal market.This is something greatlyneeded by theindustry.

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REGISTRATION FEEThe fee includes lunches and refreshments, tuition, training equipmentand course materials.

Payment to be made in one of three ways - please tick appropriate box:

�� 1. Please debit my CREDIT CARD No.

��Visa/Master/Euro �� Amex �� Expiry.......................................

Date......................................... ...........................................................

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�� 2. Payment by bank transfer should be made through Lloyds Bank plc,PO Box 72, Bailey Drive. Gillingham Business Park, Gillingham,Kent, ME8 0LS, account number 11127713, sort code: 30-12-18.IBAN No: GB67LOYD3012181112713 (all charges to be paid by sender)

�� 3. CHEQUES should be drawn on a UK Bank and be made payableto Coaltrans Conferences Ltd. A receipted invoice will be sent to alldelegates.

Cannot attend?Please pass this brochure onto a colleague or you can purchase thedocumentation.

�� Tick here if you would like to purchase the material - US$800

�� Tick here to purchase a copy of The International Coal TradingMarket 2007 - £315

Cancellations: If delegates cannot attend, you must cancel your registrationin writing by 10 October 2008 to receive a refund, less a 10%administration charge. We cannot accept verbal cancellations. Cancellationsreceived after 10 October 2008 are liable for the full course fee. However,substitutions can be sent to attend in your place at no extra charge.Registrations received after 10 October 2008 are liable for the full conferencefee in case of cancellation. If owing to a force majeure, Coaltrans is obliged topostpone or cancel the event, Coaltrans is not liable for any travel oraccommodation expenses incurred by delegates or their organisations.

Please complete and return this form together with a copy of your credit card number, bank transfer or cheque, payable in US$ to CoaltransConferences Ltd, and send by post or fax to: Coaltrans Conferences Ltd,Nestor House, Playhouse Yard, London, EC4V 5EX, UK. Tel: +44 20 7779 8945, Fax: +44 20 7779 8946Email: [email protected] www.coaltrans.com/ctrmsingapore

Data protection: The information that you provide will be safeguarded by Coaltrans, a division ofEuromoney Institutional Investor PLC group, whose subsidiaries may use it to keep you informed ofrelevant products and services. We occasionally allow reputable companies outside the EuromoneyInstitutional Investor PLC group to contact you with details of products that may be of interest to you.As an international group, we may transfer your data on a global basis for the purposes indicatedabove. If you object to contact by telephone �� fax �� or e-mail �� please tick the relevant box. If youdo not want us to share your information with other reputable companies, please tick this box ��

Organisations that have recently attended Coaltrans training courses:Tenaga Nasional Berhad • DCM Mining & Marketing • Gauri International Corp Pty Ltd • Voest Alpine Intertrading AG • BBC Trading NV • Electrabel • ACOMINAS • Companhia Siderurgicado Tubarao • Teck Corporation • TotalFina Elf • CLP Power Hong Kong Ltd • InterGen (HK) Ltd • ABC Dubash Group • Balaji Coke Industry Pvt Ltd • Bhatia International Ltd • BHP Billiton• Coal India Limited • CRISIL Advisory Services • Larsen & Toubro Limited • Reliance Petroleum Limited • South India Corp Ltd • Tata Metaliks Limited • The Madras Aluminium Co Ltd •The Tata Iron and Steel Company Ltd. • United Shippers Ltd • Usha Martin Industries Ltd • Adaro Envirocoal • Banpu Public Co Ltd • PT Adaro Indonesia • PT Arutmin Indonesia • PT.Hutrindo • PT Indominco Mandiri • PT Indonesia Power • PT Kaltim Prima Coal • PT PLN (Persero) • PT Powergen Jawa Timur • PT Tambang Batubara Bukit Asam • Samjoo Co Ltd • NYKLine • Petronas Mitco • TNB Logistics • Shanxi Coal Import & Export Group Corp • Shenhua Coal Trading Company • Tai Fung Trading Co, Ltd • National Power Corporation • EDP Producao• Korea Midland Power Co Ltd • Samtan Co. Ltd • KRUTrade • CSL Asia Shipping Pte Ltd • Termoelektrarna Toplarna • Barwil Coal Services • ESKOM • Eyesizwe Coal (Pty) Ltd • GlencoreSouth Africa (Pty) Ltd. • Kumba Coal • Lamberti Bach & Associates • Spoornet • Glencore International AG • Rio Tinto Asia Ltd • Banpu Minerals Co.Ltd • WMH Stork RMO-Bulk Handling • Trimex International FZE • Barwil Agencies (UK) Ltd • Carbones del Guasare, SA • Hargreaves plc • LE Group plc • PowerGen UK Plc • Spectron Futures Ltd • EPDC

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Early-Bird Priceby 26/09/08

US$3,499.00

US$3,149.10

US$2,799.20

Number of delegates

1st delegate

2nd delegate (10%)

3rd delegate (20%)

Standard feeafter 26/09/08

US$3,899.00

US$3,509.10

US$3,119.20

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Post: Coaltrans Conferences Ltd, Nestor House,Playhouse Yard, London EC4V 5EX, UK

Two other ways to register For enquiries only

Fax: +44 20 7779 8946

Telephone: +44 20 7779 8945

The easiest way to register is online at www.coaltrans.com/ctrmsingapore

Coal Trading and Risk Management10-12 November 2008, Singapore

Email: [email protected]

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Hotel Booking:Accommodation is available for all participants at the Hilton Singaporeat the following special rates:S$330 King Bed Deluxe S$380 King Bed Executive Rates do not include taxes. To make a reservation and for furtherdetails on the amenities included please contact Tel : +65 6730 3200Fax : +65 6732 7237 or access the following web linkhttp://www.hilton.com/en/hi/groups/personalized/SINHITW_GEURA/index.jhtml

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