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Our courses are intended for a global audience, with each one being completely customisable to suit the needs of the individuals it is being delivered to.

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Energy Derivatives

  • Banking and Financial Markets, Corporate Treasury, Derivatives, Energy and Commodity Markets, Trading and Technical Analysis
  • Duration: One day
  • Information

    This One-Day programme is of a highly participative course on the products, techniques, practices and application of energy derivatives. The course will include discussion on the causes and consequences of recent upheavals in energy markets.


    Session 1:

    Prices and Indices

    • Differences between energy markets and traditional financial markets

    • Energy Exchanges: ICE, NYMEX, etc.

    • Role of indices

    • Futures markets and Price discovery

    • Different energy markets: Oil, Natural Gas, Electricity, Emissions, Freight, Coal

    • Formula based pricing

    • The way the market quotes

    • Average nature of forward curves

    • Importance of Spreads

    Session 2:


    • Forwards, Futures, Swaps

    • Asian options, Swaptions, Spread options, Basket Options

    Session 3:

    Price Dynamics of Spot and Forward Prices

    • Spot Price Behaviour (Mean reversion, Seasonality, Mean reversion and jump diffusion)

    • Role of the forward when trading

    • Storage and the convenience yield

    • Shape of the forward curve and relationship with spot prices

    • Principal component analysis

    • How should we interpret the current bull run?

    Session 4:


    • Term structure of volatility

    • Seasonality in volatility

    • Effect of stock on volatility

    • Volatility Smile and inverse leverage

    Session 5:

    Correlations and Spreads

    • Term structure of correlations

    • Understanding and exploiting correlations

    • The way markets develop; standardization and liquidity

    • Spreads in pricing

    • Modelling spreads

    • Pricing relative to other instruments

    Session 6:

    Risk Management

    • Defining objectives

    • Single versus multiple horizon models

    • Market risk

    • Credit risk

    • Earnings-at-risk

    • Risk in commodity finance

    • Problems with data and calendars

    • Identifying risk factors

    • Limitations of traditional risk management methods

    Session 7:

    Commodities as an Asset Class

    • Correlation between commodities and traditional asset classes

    • The main commodity indices

    • Construction of indices

    Course Close

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    As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.

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