1- SUBJECT DESCRIPTION
Nowadays it is essential not only the knowledge about the theory but also the understanding of how the financial markets work from the inside. Either to start your career within the financial industry or to work in a private or public entity outside this financial industry, there are some key markets you will be in contact with if you want to have a global perspective for your company.
This subject will be focus on one of the most relevant financial markets in the world; the Foreign Exchange Market (FX). Taking advantage of the teacher¿s privileged position within the Corporate & Investment Banking - Global Markets unit of a universal bank, we will provide the students with a clear understanding about the following concepts; market fundamentals, products traded in FX markets, who are the main market participants, what regulation is changing and why it will be determinant in the coming future, skills needed in the most important roles of the FX industry, and why Strategists are so relevant within the FX value chain.
The main goal of the subject is to provide students with a great understanding of the biggest financial market in the world (in terms of volume), the Foreign Exchange Market, with a practical approach focus on:
¿ The Basics of the FX Market; main relevant currencies, main FX centers in the world, main banking industry players, FX Products traded, eCommerce aspects in FX and main Market Participants groups
¿ How to manage FX Risks from a Corporate perspective and from a Trader perspective?... taking into account main FX Benchmarks used
¿ Options products commercialized for different client segments and main Traders responsibilities
¿ The FX Regulation and its implications, with special remarks related to Ethics and the FX Industry Code of Conduct (The Global Code) that was finally published in May 2017
¿ The Research piece within the FX value chain; why are strategist so relevant for the business? What were the most relevant events affecting the FX markets during 2017?
¿ The Digital Currencies and the blockchain
At the end of the term, students are expected to have a clear understanding of:
¿ ¿ How the FX market works in real life; type of markets (organized markets-exchanges vs over-the-counter markets-trades on the phone, Bloomberg chats,¿), type of products and type of channels to distribute FX products with special attention to eFX
¿ Who are the main participants in the FX Markets and their relevance: Hedge Funds, Sovereign Wealth Funds, Central Banks Reserve Management, Banks ¿.
¿ What different roles can be found inside entities dealing in the FX Market (Traders, research analysts, Sales,¿) and what skills are needed
¿ Why it is needed to manage the FX risks and how we can define a Currency Risk Management policy in a non financial entity
¿ What benchmarks are used in the FX Industry and their utility
¿ Why Regulation is so important and what are the consequences of an inappropriate behavior
¿ What FX Derivatives are more suitable for clients related to the client segment and how to manage client orders