Whether you are brand new to the derivatives market or need to brush up this highly complex and constantly evolving area, this class is for you!  With the Dodd-Frank regulatory overhaul there has been significant changes in derivative operations to meet the regulatory reforms. Our derivatives class has been updated to stay on pace with changes impacting the derivatives markets, regulatory and otherwise.

It is easy to lose count of the Wall Street Journal articles highlighting how derivatives have been used in a multi-billion dollar scandal. While investing in derivatives can be risky business and make for great headlines, not utilizing derivatives in a portfolio to hedge risk is gambling on uncertainty. As auditors, we must ensure our companies are using derivatives in a manner that is consistent with management’s intentions and in a properly controlled environment. If derivatives are used in an environment where internal controls are weak or non-existent, disaster can strike and it can strike quickly. The changing regulatory environment adds additional risk and complication to this highly complicated area.

Join us to get up-to-speed on the user categories, clearing requirements, capital requirements, position limits and more due to market reform. Examples cover derivative trading in all industries and information in this class will not only benefit auditors but will provide invaluable information to back office, accounting, compliance officers and risk managers.

Learning Objectives

• Demystify derivative strategies including forwards, futures, options and swaps. Expose the “hidden” risks of using complicated strategies that could cost your company millions.
• Understand the different risk profiles of exchange traded derivatives versus OTC strategies. Explore the new financial regulation and how OTC derivatives could be affected by this regulation. Understand the difference between “exchange traded” and “cleared on the exchange”.
• Review user categories under Dodd Frank and the related clearing, capital, and position requirements.
• Review the critical responsibilities of the front, middle and back offices and discuss leading practices and key internal controls which must be present.
• Discuss derivative accounting rules and learn the three areas where external auditors find the most frequent material violations in accounting for derivatives.
• Discuss the lessons learned from the most recent case studies.
• Learn how to understand derivative strategies to determine whether “speculation” is being disguised as “hedging” and know how to spot the red flags when they are present.
• Learn new audit techniques through data analysis which can help you find anomalies in trading activity if they are present.
• Discuss audit objectives and audit steps in each type of derivative product to get you started in program development.
• Review regulatory hot spots in the derivatives markets – including recent market manipulation probes by the CFTC.

Course Outline

	Investment Training and Consulting Institute, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credits. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
Attendance Requirements:	In order to be awarded the full CPE hours, attendees must answer at least 3 polling questions per CPE hour.
Policy Information:	For more information regarding how to register for a course, refund, program cancellation, complaint policies and other frequently asked questions, please visit our Q&A page or contact our office at 785-783-8201.