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Interest and the Time Value of Money

• Compounding and Discounting
• Present Value and Discount Factors
• Zero Rates and Forward Rates
• Quiz

Dates and Day Counts

• Day Count Conventions
• Business Day Conventions and Holiday Calendars
• Quiz

Yield Curves

• Bootstrapping a Yield Curve
• The Multi-Curve Framework
• Curve Interpolation
• Quiz

Mathematical Preliminaries

• Probability and Statistics Basics
• Random Walks and Brownian Motion
• Introduction to Stochastic Calculus (Ito's Lemma)
• Quiz

Market Participants

• Dealers and Brokers
• How Corporates Use Derivatives
• How Institutional Investors Use Derivatives
• How Regional Banks Use Derivatives
• How Hedge Funds Use Derivatives
• Quiz

Uses and Market Size

• Hedging, Speculation and Arbitrage
• Market Size Statistics (BIS Surveys)
• Quiz

Listed and OTC

• Exchange-Traded vs OTC Derivatives
• Cleared vs Bilateral Trades
• Quiz

How Listed Products Work

• Contract Months and Tick Sizes
• Futures Margin and Daily Settlement
• Japanese Exchanges and Listed Products
• Quiz

Basic Structures

• What Is a Derivative?
• Forwards and Futures
• How Swaps Work
• Quiz

Option Basics

• Option Basics: Calls and Puts
• Option Payoffs and Profit/Loss
• Exercise Styles: European, American and Bermudan
• Put-Call Parity
• Option Strategies
• Quiz

Types of Exotic Options

• Overview of Exotic Options
• Barrier Options
• Digital Options
• Asian Options
• Lookback Options
• Basket Options
• Quanto Options
• Quiz

Interest Rate Forwards and Futures

• Forward Rate Agreements (FRA)
• Interest Rate Futures
• JGB Futures
• Quiz

Interest Rate Swaps

• Interest Rate Swaps
• Valuing an Interest Rate Swap
• Overnight Index Swaps (OIS)
• Basis Swaps
• Amortizing Swaps
• Quiz

Interest Rate Options

• Caps and Floors
• Swaptions
• Quiz

Interest Rate Exotics

• Overview of Exotic Rate Products
• Bermudan Swaptions
• Callable Swaps
• Constant Maturity Swaps (CMS)
• CMS Spread Options
• Range Accruals
• Snowballs
• Quiz

Major Benchmark Rates

• What Is a Benchmark Rate?
• TONA
• TORF
• TIBOR
• SOFR
• €STR and SONIA
• Quiz

Compounding in Arrears

• Compounding in Arrears
• Lookback, Lockout and Payment Delay
• Quiz

The Transition from LIBOR

• The Transition from LIBOR
• Fallbacks and Spread Adjustments
• Quiz

FX Forwards and FX Swaps

• FX Forwards
• Covered Interest Parity and FX Forward Points
• FX Swaps
• Non-Deliverable Forwards (NDF)
• Cross-Currency Swaps
• Quiz

Currency Options

• FX Options
• FX Option Market Conventions
• Quiz

FX Exotics

• Overview of Exotic FX Products
• FX Barrier Options
• Target Redemption Forward (TARF)
• Power Reverse Dual Currency (PRDC)
• Quiz

Listed Products

• Equity Index Futures
• Equity Index Options
• Single Stock Options
• Warrants
• Quiz

OTC Products

• Equity Swaps and Total Return Swaps
• Quiz

Equity Exotics

• Overview of Exotic Equity Products
• Dividend Swaps and Futures
• Variance Swaps and Volatility Swaps
• Worst-of Options
• Cliquets
• Autocallables
• Quiz

CDS

• Credit Default Swaps (CDS)
• Credit Events and Settlement
• Pricing a CDS
• CDS Indices (iTraxx, CDX)
• Quiz

Credit Exotics

• First-to-Default Baskets
• Synthetic CDOs and Tranches
• Quiz

Inflation Derivatives

• Inflation Swaps
• Inflation-Indexed JGBs and BEI
• Inflation Caps and Floors
• Quiz

Commodity Derivatives

• Overview of Commodity Derivatives
• Energy: Crude Oil and Natural Gas
• Power
• Metals
• Agricultural Commodities
• Emissions
• Quiz

Other Derivatives

• Weather Derivatives
• Volatility Products such as VIX Futures
• Insurance-Linked Securities and Cat Bonds
• Longevity Swaps
• Property Derivatives
• Freight Derivatives (FFA)
• Quiz

Structured Product Concepts

• What Are Structured Products?
• Quiz

Structured Notes

• Exchangeable Bonds (EB)
• Equity Index-Linked Notes
• Callable Bonds and Early Redemption Features
• Convertible Bonds (CB)
• Credit-Linked Notes (CLN)
• PRDC Notes
• Digital Coupon Notes
• Quiz

Structured Deposits and Loans

• Structured Deposits
• Structured Loans
• Quiz

Valuation Foundations

• No-Arbitrage and Replication
• Binomial Trees
• Risk-Neutral Valuation
• Quiz

Option Valuation

• The Black-Scholes Model
• The Greeks
• Implied Volatility
• Volatility Smiles and Surfaces
• The Black and Bachelier Models
• Quiz

Collateral and XVA

• Collateral and Discounting
• Overview of XVA
• ISDA SIMM: The Standard Model for Initial Margin
• CVA and DVA
• FVA and MVA
• Quiz

Valuation Models

• The Hull-White Model
• The LIBOR Market Model (LMM)
• The SABR Model
• Local Volatility Models
• The Heston Model
• Copulas for Credit
• Model Calibration
• Quiz

Numerical Methods

• Monte Carlo Simulation
• Finite Difference Methods
• Adjoint Algorithmic Differentiation (AAD)
• Quiz

Hedging

• Delta Hedging
• Managing Gamma and Vega
• Hedging Exotic Products
• Quiz

Trading

• Market Making
• Volatility Trading
• Quiz

Measuring Risk

• Sensitivities: DV01, Vega and Key Rate Sensitivities
• Value at Risk (VaR)
• Expected Shortfall
• Quiz

Validation and Regulation

• Stress Testing
• Backtesting
• Quiz

Exposure

• What Is Counterparty Credit Risk?
• Exposure Measures: CE, PFE, EE/EPE and EAD
• Exposure Profiles by Product
• Wrong-Way Risk
• Quiz

Mitigation and Management

• Risk Reduction through Netting and Collateral
• Credit Limit Management
• Overview of the Regulatory Treatment of Counterparty Risk
• Counterparty Risk and XVA
• Quiz

Liquidity and Funding Risk

• Funding Variation and Initial Margin
• Handling Margin Calls
• Sourcing and Substituting Collateral
• Derivatives in LCR and NSFR
• Quiz

Operational Risk

• Operational Risk in Derivatives
• Booking Errors and Confirmation Mismatches
• Settlement Failures and Reporting Errors
• Rogue Trading Cases: Barings, Societe Generale and Others
• Quiz

Capital and Profitability

• Risk-Weighted Assets (RWA)
• P&L Attribution
• The Leverage Ratio
• Capital Valuation Adjustment (KVA)
• Funds Transfer Pricing (FTP)
• Quiz

Up to the Trade

• The Client Business Flow
• Understanding Client Needs
• KYC and Credit Review
• Proposals and Explanations
• Product Explanations and Pre-Contract Disclosures
• Suitability Checks
• Trade Execution
• Quiz

From Trade to Maturity

• Trade Confirmations
• Mark-to-Market Reporting to Clients
• Early Termination
• Quiz

Organization and Roles

• Front, Middle and Back Office Roles
• Quiz

Daily Operations

• Trade Capture and Approval
• Lifecycle Event Processing
• Daily Valuation and P&L Sign-Off
• Daily Risk Management Operations
• Collateral Operations
• Settlement
• Quiz

Accounting, Reporting and Audit

• Regulatory Reporting
• Accounting Operations
• Responding to Audits and Examinations
• Quiz

System Architecture

• Front-to-Back System Architecture
• Lifecycle Event Data
• Market Data Management
• End-of-Day Batch Processing
• Trading System Types and Vendor Examples
• Quiz

Data Standards

• FpML
• The ISDA Common Domain Model (CDM)
• Identifiers: LEI, UTI, and UPI
• Quiz

Booking Models

• Choosing the Booking Entity
• Intragroup Back-to-Back Trades
• Recovery and Resolution Planning
• Resolution stay protocols
• Quiz

Fair Value Measurement

• Fair Value Measurement: IFRS 13, ASC 820 and the Fair Value Hierarchy
• Japan's Fair Value Measurement Standard
• CVA and DVA in Accounting
• Quiz

Hedge Accounting

• Hedge Accounting Basics
• Deferral Hedge Accounting under Japanese GAAP
• Hedge Accounting under IFRS 9 and ASC 815
• Quiz

Embedded Derivatives and Disclosure

• Embedded Derivatives
• Japanese GAAP vs IFRS vs US GAAP
• Disclosures in the Notes
• Quiz

Tax

• Taxation of Derivative Gains and Losses
• Withholding Tax
• Transfer Pricing for Cross-Border Trades
• Quiz

Documentation

• The ISDA Master Agreement and Schedule
• The Credit Support Annex (CSA)
• ISDA Protocols
• Quiz

Termination and Netting

• Events of Default and Termination Events
• Close-Out Netting
• Japan's Close-Out Netting Act
• Netting Enforceability and Legal Opinions
• Quiz

Market Infrastructure

• Overview of Market Infrastructure
• Central Counterparties: JSCC, LCH, CME and Others
• Trade Repositories
• Portfolio Compression
• CCP Default Management
• Electronic Trading Platforms such as SEFs
• Portfolio Reconciliation
• Major Electronic Trading Platforms
• Post-Trade Confirmation and Matching Services
• Post-Trade Efficiency Services
• Quiz

Governance

• The Three Lines Model
• New Product Approval
• Limit Frameworks
• Model Risk Management: SR 11-7 and the JFSA Principles
• Independent Price Verification (IPV)
• Quiz

Client Protection

• Mis-Selling Cases
• Complaints and Dispute Resolution (FINMAC)
• Conduct Risk
• Quiz

Legal Framework

• Japan's Derivatives Regulation at a Glance
• The Financial Instruments and Exchange Act and Derivatives
• The Financial Services Provision Act
• The Commodity Derivatives Transaction Act
• Supervisory Guidelines of the Financial Services Agency
• Quiz

OTC Derivatives Regulation

• Mandatory Clearing
• Margin Requirements for Uncleared Derivatives
• Trade Reporting
• Electronic Trading Platform Mandate
• Quiz

Customer Protection

• Suitability and the Duty to Explain
• Quiz

US Regulation

• Overview of Derivatives Regulation in the US
• The Roles of the CFTC and SEC
• Dodd-Frank Act Title VII
• The Volcker Rule
• Swap Dealer Registration
• Clearing, Reporting, and Trade Execution Requirements
• Quiz

EU and UK Regulation

• Overview of Derivatives Regulation in the EU and UK
• EMIR
• MiFID II and MiFIR
• UK EMIR
• PRIIPs
• The EU Benchmarks Regulation (BMR)
• Quiz

International Standards

• The G20 OTC Derivatives Reforms
• The Basel Framework and Derivatives
• BCBS-IOSCO Margin Requirements for Uncleared Derivatives
• The Fundamental Review of the Trading Book (FRTB)
• The Standardized Approach for Counterparty Credit Risk (SA-CCR)
• The CVA Risk Capital Charge
• Quiz

Asia-Pacific Regulation

• Overview of Derivatives Regulation in Asia-Pacific
• OTC Derivatives Regulation in Hong Kong
• Singapore
• China
• South Korea
• Australia
• Quiz

Cross-Border Themes

• Market Manipulation and Spoofing
• AML and Sanctions
• Insider Trading
• Best Execution
• Record keeping
• Quiz

Origins and Market Development

• The Dojima Rice Exchange
• The Development of Futures Exchanges
• The Arrival of Black-Scholes
• The Swap Market and ISDA
• A History of Japan's Derivatives Market
• Quiz

Major Events

• The Collapse of LTCM
• The Collapse of Lehman Brothers (2008)
• The LIBOR Manipulation Scandal
• Other Major Derivatives Losses
• The Metallgesellschaft Loss (1993)
• The Orange County Investment Pool Loss (1994)
• The JPMorgan London Whale Credit Derivatives Loss (2012)
• Bank Losses from the Archegos Default (2021)
• Quiz

New Trends

• ESG-Linked Derivatives
• Crypto-Asset Derivatives
• Digitalization: CDM and Tokenization
• Quiz