Globally, the volume and notional values outstanding for equity, commodity, interest rate, credit, and currency option derivatives have been exploding. In OTC Derivatives, course participants will learn about the different types and characteristics of derivatives and the market infrastructure that enables such unique and negotiated contracts to thrive. We will examine the role of large dealers and the inter-dealer brokers, and we will document the important role that ISDA and the evolution of contractual standards has played to improve the operational efficiency of the OTCD market. We will look at the role of the Master Agreement (MA) and Master Contract (MC) in bringing much needed automation to the processing of OTC derivatives, substantially increasing the percentage of electronically eligible deals led by credit derivatives. Course participants will learn about steps in the OTCD trade processing workflow, all too frequently a manual process leading to errors and failed trades. OTCD processing automation is a "chicken and egg" situation in the industry, wherein one highly automated side to a transaction can nevertheless break down if one's counterparty is not automated. We will profile the role of leading matching utilities DTCC Deriv/Serv, SwapsWire, and the Intercontinental Exchange's eConfirm platform, and we will discuss major components of solution functionality including trade affirmations, allocations, confirmations, portfolio reconciliation, and novation. In the subsequent section, we will look at some of the leading IT vendors of post-trade, pre-settlement systems (TradeWeb, Traiana, misys, Markit, Smartstream, SS&C), collateral management (Algorithmics, Lombard, SS&C, SunGard Adaptiv, JP Morgan, AcadiaSoft), and valuation tools and independent valuation providers (FINCAD, ICAP, Markit, Numerix, Quantifi, SuperDerivatives, Reuters, State Street).

I. Users & Usages of Derivatives

II. OTC Derivatives (OTCD) Market Overview & Infrastructure

• OTCD Inter-Dealer Brokers
• Role of the International Swaps & Derivatives Association (ISDA)
• Standards & Automation
• Master Agreement (MA)
• Master Confirmation (MC)
• Operational Efficiency
• Growth of OTCD Market

III. OTC Derivatives Operations

• OTCD Trade Processing Workflow

IV. OTCD Processing Solutions

• DTCC Deriv/Serv
• SwapsWire
• eConfirm
• Triaiana
• TradeWeb

V. OTCD Processing Solution Functionality

• Trade Affirmations
• Trade Allocations
• Trade Confirmations
• Portfolio Reconciliation
• Novation

VI. OTCD Technology Vendors

• Post-Trade, Pre-Settlement
• Collateral Management
• OTCD Valuation Tools & Vendors

VII. OTC Derivatives Summary Points