Introduction to the foreign exchange market Making sense of Foreign exchange jargon Identifying the participants in the market Differentiating between the wholesale and retail markets for foreign exchange Understanding the motivation for exchange controls in the South African market Spot foreign exchange Recognizing the determinants of exchange rates and how currency pairs are quoted in the market Calculating settlement values given the exchange rate and currency amount Exercise – exchange rate calculations for direct and indirect quotations Deriving cross rates given two conventional market quotes Exercise – calculating cross rates involving direct and indirect quotes Understanding the settlement process for foreign exchange deals and the related risks Forward foreign exchange Identifying the mechanism for determining forward foreign exchange rates Exercise – calculate the forward rate given the interest rates in two currencies Calculating forward points Exercise – calculating positive and negative points Understanding what causes forward points to change Differentiating between outright foreign exchange and foreign exchange swap deals

Speakers

Andre Kurten

André holds BCom Honours degree from UNISA and is a CAIB (SA) with the Institute of Bankers in SA.

André is a Fellow of the South African Institute of Financial Markets and has served as a Governor on the board for over 17 years. He has extensive knowledge of banking, treasury and finance products.

André worked in the treasury at Nedcor for 9 years, where he traded money and bond markets. While at Nedcor, he was instrumental in establishing the interest rate derivative trading desk. André worked at two major interdealer brokers as a Director responsible for Interest rate derivative broking.

André worked at ABSA as Head of their agricultural derivatives trading desk in 1994. During his time at ABSA, André sat on the executive committee of the SA futures Exchange Agricultural Markets Division.

André worked for the SA Futures Exchange for a year as Assistant General Manager responsible for interest rate product development.

The ACI Financial Markets Association recognizes André as a training provider for both the ACI Dealing and Operations Certificate programs.

André has been training for 16 years and is extensively traveled having facilitated workshops and training interventions for many of the large multinational financial institutions from introductory to advanced level in Singapore, Hong Kong, Dubai, Oman, KSA, Malaysia, China, Sri Lanka, India, Pakistan, Uganda, Malawi, Zimbabwe, Zambia, Namibia, Kenya, Nigeria, Ghana, and South Africa. He consults to a number of companies on treasury product implementation and hedging.

André has conducted over 100 ACI Workshops internationally with an outstanding first time pass rate for both the ACI Dealing and Operations certificate.

André authored a book titled “Introduction to Derivatives – A South African Perspective”.

Managing foreign exchange risk Importers and exporters using forward exchange contracts – FECs Distinguishing between fixed dated, partially optional, and fully optional FECs Determining the impact of early drawdown, extension and cancellation of FECs Exercise – calculating the cost of and extension and an early drawdown Non-Deliverable Forwards – NDFs Examining the characteristics of NDFs Applying NDFs for hedging and speculation Exercise – calculating the settlement at fixing on an NDF trade Currency options Understand the nature of calls and put options and how they can be applied to hedge exchange rate exposure Exercise – calculate the effective hedge rate achieved using options Option hedging strategies using combinations of calls and puts Exercise – calculating the price achieved from a zero-cost collar hedging strategy Currency futures The contract specifications Margining process on a futures exchange The workshop summary Relevant exercises and a post-course assessment if required

Speakers

Andre Kurten

André holds BCom Honours degree from UNISA and is a CAIB (SA) with the Institute of Bankers in SA.

André is a Fellow of the South African Institute of Financial Markets and has served as a Governor on the board for over 17 years. He has extensive knowledge of banking, treasury and finance products.

André worked in the treasury at Nedcor for 9 years, where he traded money and bond markets. While at Nedcor, he was instrumental in establishing the interest rate derivative trading desk. André worked at two major interdealer brokers as a Director responsible for Interest rate derivative broking.

André worked at ABSA as Head of their agricultural derivatives trading desk in 1994. During his time at ABSA, André sat on the executive committee of the SA futures Exchange Agricultural Markets Division.

André worked for the SA Futures Exchange for a year as Assistant General Manager responsible for interest rate product development.

The ACI Financial Markets Association recognizes André as a training provider for both the ACI Dealing and Operations Certificate programs.

André has been training for 16 years and is extensively traveled having facilitated workshops and training interventions for many of the large multinational financial institutions from introductory to advanced level in Singapore, Hong Kong, Dubai, Oman, KSA, Malaysia, China, Sri Lanka, India, Pakistan, Uganda, Malawi, Zimbabwe, Zambia, Namibia, Kenya, Nigeria, Ghana, and South Africa. He consults to a number of companies on treasury product implementation and hedging.

André has conducted over 100 ACI Workshops internationally with an outstanding first time pass rate for both the ACI Dealing and Operations certificate.

André authored a book titled “Introduction to Derivatives – A South African Perspective”.