Futures and forwards - Foundation

Anyone who wants to reach a sound understanding of futures and forwards used by investment managers.

Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Let's demystify these!

In close collaboration with PwC's subject matter experts, PwC Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.

With the 'Futures and forwards - Foundation' module, participants will dive into the characteristics and associated risks, market use, and valuation of forwards and futures.

By the end of this training, participants will be able to:

• define the general characteristics of futures and forwards;
• gain in-depth understanding of how the instrument operates;
• list how it can best be used on the market, be it in isolation or in combination with other instruments;
• understand the valuation method and what can impact forwards' and futures' value;
• identify major risks associated and determine controls that may mitigate them.

• Principle of a forward or future contract, based on the yield curve
• Use of forward or future contract: hedging or speculative trading purposes
• Forwards contracts: the main types of forwards are presented, namely:
  • on money market rates: FRAs
  • on currencies (forex forward), including NDFs contracts
  • on equities and on bonds
• Futures contracts:
  • the exchange clearing room and margining system
  • theoretical vs market price of a future
  • invoiced amount at delivery
  • analysis of futures contracts

This course content is presented in an attractive and understandable manner: it is illustrated with numerous real market examples. The course aims to provide a clear and thorough understanding of the considered instrument, with core mathematical concepts introduced when addressing pricing.

This training is coordinated by Samir Moussaoui, Director at PwC Luxembourg.

The different modules will be animated by experts in derivatives.

• Samir Moussaoui is a director within the Valuation Services (VS) team, specialising in traditional and alternative investment funds with a focus on private business valuations and modeling. He possesses extensive expertise in valuation processes, techniques, market practices, and auditing skills. Samir leads the VS practice in managing diverse financial valuation engagements for local and international clients and PwC offices. He is a Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS), serves on the board of the Luxembourg Valuation Professionals Association, and actively contributes as a training instructor and member of PwC’s Transformation group.