Financial Markets and Market Risk Management


  • The financial markets are constantly changing. In recent years, the financial markets have changed significantly due to the global financial crisis. The regulatory authorities and financial institutions require more transparent, fair, and prudent actions from all market participants. On the other hand, banks and corporations are taking on an increasing level of market risks as a way to improve performance.

Course objectives

The objective of the workshop is to present the current functions of the major financial markets and instruments in a structured and comprehensive way. The participants will receive a good and practical understanding of markets and instruments. We will start with an overview of recent developments in the financial markets, including the new regulation. We will discuss reasons for the movements of foreign exchange and interest rates. Then we will take a closer look of capital markets. Main equity and debt instruments will be presented. In the end, we will make a short, but thorough introduction to the derivatives markets and instruments. After discussing specific market risks, the instruments and methods used to manage individual risks will be discussed in more detail and supported with case studies from practice. At the end of the seminar, we will introduce the concept of Value at Risk (VaR), as an important measure of market risk, and demonstrate how it is calculated and used.

Who should attend

  • traders
  • treasurers at financial institutions and companies
  • treasury sales
  • asset-liability management professionals
  • sales professionals covering corporate and institutional investor clients with markets and risk management strategies and products
  • risk managers accountants and auditors
  • regulatory reporting staff

Teaching methodology

    The workshop consists of the theory of financial instruments and financial markets, debates, short examples, and exercises. Prior knowledge in this field of finance is not required. The workshop is also suitable for all, who trade on a daily basis with different financial products and would like to complement their theoretical knowledge or upgrade with practical examples from real life. Participants are asked to bring a financial calculator (HP 17BII or similar) for calculating practical examples and exercises. Only a minimal amount of calculus knowledge is required in order to master numerical analyses and examples during the workshop. After the workshop, participants will better understand financial instruments and the logic of the functioning of financial markets, as well as the link between the instruments and the risks.

  • Course description

    Date: 23-24 January 2020

    Venue: Budapest, Danubius Grand Hotel Margitsziget

    The workshop is held in the English language.

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  • Course contents

    • Review of recent developmentsĀ onĀ global financial markets
    • New rules governing the functioning of financial markets and market participants
      • MiFID II
      • Basel III and CRD IV
      • EMIR
    • An overview of the main types of financial instruments and main financial markets
      • FX and Money Market
      • Equities
      • Bonds, and fixed-income securities
      • Derivatives
    • Introduction to market risks
    • Types of market risk
    • Portfolio effects from diversification and volatility
    • Market risk management
    • Risk limits and control process
    • Introduction to Value at Risk (VaR)
      • what is VaR?
      • calculating VaR