Certificate in Forex & Treasury Management
With the significant developments that have taken place in the Capital, Money, and Foreign Exchange Markets in the recent years affecting volatility in exchange rates and accentuating liquidity constraints, corporates and banks have started paying closer attention to the treasury and forex management function. The globalization of the economy with mobilization and deployment of funds from/in other countries is also necessitating growing attention in the area of treasury and forex management.
The IICM Certificate in Forex and Treasury Management Program is a highly specialized course imparting focused knowledge in the areas of Treasury, Forex and Risk Management.
The course is suitable for;
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Students targeting jobs in Integrated Treasury in a Bank, PD, DFI, Mutual Fund, MNC and Corporate in India & Overseas
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Middle and Senior Level Officers from Treasury Departments of Commercial Banks, Financial Institutions
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Corporate CFO’s or CA’s, CMA’s in Finance & Cost deptartment
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Aspiring Corporate Treasury Managers in Banks and Corporates
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Aspiring Money and Debt Market Managers in Banks & Corporate Treasury
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The Banks and Corporates who are involved in strategizing treasury operations
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Internal / concurrent / statutory / RBI Auditors of the Bank and Financial Institutions.
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Brokers and Consultants
Course Conducted by
Professor N.K. GUPTA, B.COM,CAIIB,AICWA,DLII Practicing Cost Accountants and Management Consultant with over 30 Years of Experience in International Banking / Markets / Business & Treasury
Linkedin Profile: http://www.linkedin.com/in/nijaygupta
Facebook Study Group: http://www.facebook.com/group.php?gid=143970885148
Course Duration and Timings
Two months (seven weeks) from 15th May to 27th June 2010 - 9.30 a.m. to 5.00 p.m.
Course Structure
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Week 1
Saturday
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Session 1
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Introduction
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Session 2
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Role, Scope and Functions of Integrated Treasury
· Overview of FOREX Business in India.
· Role in brief - MOC/MOF/ICC/RBI/ FEDAI / ECGC/CCIL/FIMMDA/DGFT
· Role of FEMA 1999
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Session 3
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Integration between Forex Markets & Money Markets
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Session 4
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Back Office , Mid Office Functions
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Week 1
Sunday
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Session 1
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Overview & profile of local & global forex market including Central Banks role in influencing inflation , interest rates , exchange rates etc.
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Session 2
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Overview & profile of local & global forex market, Current scenario of Indian FX Market, Major players i.e. all related macro issues.
· Convertibility & Funding of Balance of Payment through Capital Inflows (FII’s, FDI’s, ADR’s & GDR’s). RBI’s intervention and liquidity management through sterilization process, Repo, Reverse Repo and role of CCIL.
· Role of IMF & World Bank (Brettonwood system) post Southeast Asian Currency Crisis and impact of Sub-Prime Crisis.
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Session 3
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What is exchange rate, What is exchange position, Fund position, Nostro, Vostro, Loro? Exchange Risk, GAP Risk (Intro). Various merchant transactions (Intro) and how & when they affect exchange position, funds position. How accounting entries flow from Branches to treasury and back to branches. Giving idea of complete transaction from taking a position, Nostro credit to reconciliation.
Factors affecting Exchange Rates and Interest Rates
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Session 4
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------- Continued -------
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Week 2
Saturday
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Session 1
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Forex Market Fundamentals and Exchange Rate Arithmetic Calculations & Quotations
Forex Basics – 1
Currency pairs , base currency , quoting currency , numeraire currency , cross rates
Interbank versus commercial market ;
Structure of two-way FX quote.
EXERCISES on two-way quotes and quotation styles
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Session 2
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Forex Basics – II
Value dates: cash, to, spot and forward, broken dates.
Rules for determining value dates
FX settlement and risk
EXERCISES on value date
FX deal types : outright and swap
Cash flow analysis of deal types
Concept of Position and Gap.
Dealer blotter, position and gap statements
EXERCISES on position and Gap.
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Session 3
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Cross rate arithmetic
Chain rule and principles of cross rate
Aide memoire for cross rate arithmetic
Triangular arbitrage and bounds on cross rates
EXERCISES on cross rates
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Session 4
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Forward Exchange Arithmetic
Money Market Products Money market linkages and covered interest arbitrage
Uncovered arbitrage in emerging market economies
Swap points: nature, interpretation and implied interest rate
Non-deliverable forward
EXERCISES on forward exchange arithmetic
Role of Forex & Money Market Brokers
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Week 2
Sunday
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Session 1
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Interest Rates & Swap points
Swap points and Outright prices
Rules for determining non-spot outright rates
Swap points for cross rates
EXERCISES on deriving non-spot outright prices
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Session 2
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Swap points and cash management
Structure of two-way swap quote
Cash management with FX swaps
EXERCISES on FX swap quotes and applications
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Session 3
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Commercial transactions – I
Types of commercial transactions
Margins & Commissions
Financing in commercial transactions
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Session 4
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Commercial transactions – II
Ready transactions : loading of swap points and margin
EXERCISES on ready commercial transactions
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Week 3
Saturday
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Session 1
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Introduction to Derivatives
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Session 2
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Exchange rates, forward contracts, options, Swaps, currency futures & Covered Interest Rate Arbitrages.
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Session 3
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Commercial transactions – III
Forward contracts for exports and imports
Loading of margins
Forward contract with option delivery period
EXERCISES on forward contracts rates
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Session 4
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Commercial transactions – IV
Early delivery, late delivery, cancellation and extension/rollover of forward contracts
Concept of swap cost/gain and interest cost/gain on funds inflow/outflow
EXERCISES on early/late delivery, cancellation & rollover
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Week 3
Sunday
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Session 1
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Forex trading – IV
Technical analysis: Overview
Money management techniques
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Session 2
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Session 3
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Commercial transactions # V
Life cycle of export bill purchased/discounted
Notional due date, financing cost, early utilization, late utilization, crystallization and realization
EXERCISES on export bill events
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Session 4
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Combined Exercises
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Week 4
Saturday
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Session 1
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Money Market and Management of Excess Reserves/Liquidity, CBLO, CROMS & Arbitraging with Market Participants, RBI’s Repo & Reverse Repo. NDS – CALL, NDS-AUCTION & NDS – OM functioning
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Session 2
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Bond Mathematics, CRR and SLR Requirements
■ Mechanics of Bond Market (NDS – OM), Money Market (Call, Term), CBLO and Repo Markets (CROMS)
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Session 3
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------- Continued ------- Comprehensive review
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Session 4
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Comprehensive review - Trading in Currency Markets
→ Merchant and Interbank deals
→ Mechanism of Forex Trading
→ Proprietary Trading
→ Cover Operations
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Week 4
Sunday
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Forex trading – I
Two-way quotes: market conventions and trending
Deal conversations
EXERCISES on trending and deal conversations
Forex trading – II
ACI code of conduct
Exchanges controls of RBI on interbank dealings
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Forex trading – III
Trading book transactions: position pad and gap
Trading in FX market: position trading, day trading, market-making
Management controls: day light limit, overnight limit, stop-loss limit, VaR limit
Overnight orders
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Curtain raiser on Bourse game
Capital, limits and controls
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---- DO ------
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Week 5
Saturday
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Session 1 , 2 , 3
Simulated Bourse Game
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Spot USD / INR
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Spot USD / INR
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Spot USD / INR
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Session 4
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Position Tallying
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Week 5
Sunday
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Session 1 , 2 , 3
Simulated Bourse Game
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USD / INR Spot & Forward
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USD / INR Spot & Forward covering Through SWAPS
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USD / INR Spot & Forward covering Through SWAPS
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Session 4
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Position & Gap Tallying
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Week 6
Saturday
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Session 1 , 2 , 3
Simulated Bourse Game
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Cross currency Spot
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Cross currency Spot
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Cross currency Spot & also forward
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Session 4
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Position & Gap Tallying
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Week 6
Sunday
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Session 1 , 2 , 3
Simulated Bourse Game
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Money and Bond Markets
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→ Mechanism of Money and Bond Market Trading
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→ Trading in Call Money Market
→ Trading in Repo Market and Bond Market
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Session 4
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Position & Gap Tallying
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Week 7
Saturday
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Session 1, 2 & 3
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Mix of all done in 3 days
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Session 4
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Mix of all done in 3 days
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Mix of all done in 3 days
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Integrated Treasury
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Week 7
Sunday
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→ Effective utilization of integration between forex and domestic markets
→ Opportunities in integration of forex, money and bond markets
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EXIT TEST
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Feedback & Valedictory function
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Course Fee
Rs. 5,100/- (includes Lunch, Tea and study material)
Registration
Click here inorder to register for the Program and provide us with your contact details.
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