Euromoney Learning Solutions

Introduction to the London Metal Exchange and Hedging: Three Days

Available dates

Dec 10—12, 2019
3 days
New York, New York, USA
USD 2800
USD 933 per day

Disclaimer

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Full disclaimer.

About the course

Understand core services of pricing, hedging & delivery with LME

The LME’s 3-day introductory course is an essential tool in helping market participants understand how the Exchange operates.

It will provide you with an understanding of the key services provided by the LME and demonstrate how these services can improve your organisation’s approach to price risk management. Both theoretical and practical skills developed at this course can be applied easily in the workplace.

This course is made up of three separately bookable modules:

  • Day 1: Introduction to the LME
  • Day 2: Introduction to Hedging on the LME with Futures
  • Day 3: Introduction to Hedging on the LME with Options

What will you learn?

  • Become familiar with the LME’s prompt date structure and trading procedures
  • Gain a full understanding of the LME’s market terminology
  • Understand the benefits of the delivery process used by the LME
  • Gain an understanding of the role of LME Clear
  • Learn how to access the LME through member firms
  • Understand how effective price risk management can be achieved with LME services
  • Gain an understanding of the benefits of hedging with futures and options across all sectors of the industry

Benefits for your organisation

Your organisation will benefit from having employees with a clear understanding of how the LME operates and how its core services of pricing, hedging, and delivery can benefit the company.

Pre-requisites

None

Learning Outcomes

  • Become familiar with the LME's prompt date structure and trading procedures
  • Gain a full understanding of the LME's market terminology
  • Understand the benefits of the delivery process used by the LME
  • Gain and understanding of the role of LME Clear
  • Learn how to access the LME through member firms
  • Understand how effective price risk management can be achieved with LME services
  • Gain an understanding of the benefits of hedging with futures and options across all sectors of the industry

Agenda

Day 1

  • History, organisation and primary services of the LME
  • Pricing methodology
  • Introduction to hedging
  • Prompt date structure and other LME terminology
  • LME contracts
  • Warehousing and fundamentals of delivery
  • Trading at the LME and trading floor visit
  • Understanding the role of an LME broker/dealer (Visit applicable for London courses. )
  • Clearing and LME Clear
  • Regulation of the LME

Day 2

  • Overview of the LME market
  • Basic concepts, uses and benefits of hedging with futures
  • Introduction to risk and price volatility
  • Long, short, transactional, and strategic hedges
  • Costs of hedging
  • Carries
  • Using the right hedging instrument
  • Hedging with Monthly Average Futures
  • Hedging workshops

Day 3

  • Basic concepts, uses and benefits of hedging with an options contract
  • Options terminology
  • Put and call options
  • Risk implications and motives
  • Hedging futures vs. options
  • TAPOs
  • Options workshops
  • Option pricing
  • Hedging combinations
  • Zero cost strategies

Learning Outcomes

  • Become familiar with the LME's prompt date structure and trading procedures
  • Gain a full understanding of the LME's market terminology
  • Understand the benefits of the delivery process used by the LME
  • Gain and understanding of the role of LME Clear
  • Learn how to access the LME through member firms
  • Understand how effective price risk management can be achieved with LME services
  • Gain an understanding of the benefits of hedging with futures and options across all sectors of the industry

Who should attend

  • Day 1: Introduction to the LME This course is suitable for you if you have little or no knowledge of the London Metal Exchange’s operations and want to learn how these services can add value to your business.
  • Day 2: Introduction to Hedging on the LME with Futures This course is suitable for you if you want to know more about metals futures and the management of price risk on the LME. It is advised that you take 'Introduction to the LME' before attending this course to fully benefit from this session.
  • Day 3: Introduction to Hedging on the LME with Options This course is suitable for you if you have little or no knowledge of traded options and want to know more about the use of options as a price risk management tool in the metal industry.

Trust the experts

Emma Jenkins

The course director has many years’ experience covering commodity markets, derivative pricing and structuring, and loan origination. After graduating from Trinity College, Dublin, with a BSc Hons, a gold medal and Foundation Scholarship in Mathematics, she commenced her banking career in the Gol...

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