Markets Demystified: OTC vs. Exchange-Traded Derivatives

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Click to Register Online or call 202.223.1528.
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Course: Over-the-Counter (OTC) or Exchange-traded derivatives: what's all the fuss? Each of these markets has built a successful business serving their clientele needs to modify or hedge corporate exposure to different types of market risk. Dodd-Frank will significantly change the oversight and structure of the U.S. OTC derivatives markets and the European Union too is currently engaged in building a new regulatory framework for its markets. While the biggest challenge going forward may be to understand all the new rules themselves, it will be essential to have a clear grasp of the differences between OTC and exchange-traded products.

After the course you will be able to:

  • Understand the primary differences between trading OTC and trading designated contract markets on a exchange
  • Recognize the trade-off between trading a customized product to fit your needs vs. a standardized product which can be rather robust for offsetting price risk
  • Explain the advantages and pitfalls of trading OTC derivatives vs. ETDs (exchange-traded derivatives)
  • Articulate the nature of basis risk from trading futures
  • Comprehend the relative cost of trading OTC vs. ETD

Class Size: Registration is limited to approximately 15 participants to promote student participation and interaction.

Who Should Attend: People and companies trading OTC to hedge various business risks should become knowledgeable about the relative merits/disadvantages of trading exchange traded products. Similarly, those experienced in trading OTC should be made aware of the advantageous daily mark-to-market feature of exchange trading as well as interest bearing margin.

Level: Basic/Intermediate

Cost: $250 early-bird ends 4 weeks prior to course date; $375 standard registration.
Complimentary refreshments are provided.

To Register: Online click here, contact
the Institute at 202.223.1528
or via e-mail at

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