Overview

This seminar was constructed at the request of lawyers who, while never themselves dealing in financial markets, nevertheless need to be familiar with the jargon of international finance - which jargon often distracts from and masks transactional reality.

The seminar is essentially "unscripted" in the sense that, while there are a number of prepared talking points, attendees are invited to interpose questions at any time throughout the seminar. In short, it is intended that the seminar be entirely informal and interactive.

Presentation of the seminar has often taken the form of two 1.5 hour sessions, which sessions have received an enthusiastic reception. See, for example, the respective remarks of Anthony M Gregg (Clayton Utz, Lawyers) and Don McKenzie (Gadens Lawyers) on the Testimonials from Lawyers page.

A video in DVD format of an actual "Coming to Terms with the Jargon of International Finance" seminar presentation by John R. Rush is available. For further details contact Oakbridge.

Session 1

Why do financial markets exist?

International financial markets:

• characteristics of Eurocurrency markets: regulated or unregulated markets?
• how many Eurocurrency markets?
• who are the professional players?
• is there a Eurodollar?; is there an Asiadollar?
• creating an "offshore" market: basic legal framework
• exchange controls
• arbitrage between Eurocurrency and domestic markets: what is it and does it exist?
• bringing funds "onshore"; sending funds "offshore" – common fallacies.

Wholesale and retail markets: essential pricing differences

Dealers and dealing:

• how do dealers know what prices to make?
• bid and offer: why two prices?
• can the market be viewed?
• role of the information providers: who are they are what do they do?
• role of brokers: who are they are what do they do?
• interbank and corporate dealing.

Session 2

Financial markets trading:

• parameters of financial markets transactions: quantum, term, maturity, rate
• market quotation conventions for interest rates and exchange rates: basis points or forward points?
• "over the counter, OTC" or "exchange traded, ET"?
• cash or money markets: discount securities
• fixed income markets: bonds, coupon interest rates, yield to maturity, securities traded at discounts or premiums
• foreign exchange markets: spot and forward trading
• does the bank make a forward quote by guessing the future spot rate?
• financial derivatives defined
• are derivatives inherently "dangerous"?
• major traded financial derivatives: forward rate agreements (FRAs), futures, options, swaps
• options: puts and calls; European and American options.

Future trends in financial markets:

• driving forces: innovation and technology combining to engineer new, profitable, differentiated financial markets products.