IN-PERSON CLASSROOM SEMINARS

• The three different types of forward energy and electricity markets and the terminology they use; how each of these markets operate and their purpose; and why an understanding of these markets is critical for energy industry participants.
• The difference between brokers, traders, dealers, market-makers, marketers and wholesale energy merchants.
• How electronic marketplaces and electronic futures exchanges such as ICE, NYMEX CME Globex, and NYMEX Clearport Services operate.
• How to use futures contracts, commodity swaps, CFDs, and trigger deals to protect your company from natural gas and electricity price and basis risk - and the pros and cons of each approach.
• What basis risk is, and how basis and delivery risk can destroy a hedging program.
• The three different ways to hedge locational basis risk.

• What The Master Hedging Equation is, and how energy markets are different from equity, bond & currency markets.
• How heat-rate-linked power transactions can effectively convert natural gas futures, options, swaps and other financial instruments into electric power hedging instruments.
• A basic overview of energy options: puts/calls and other option terms and concepts.
• How buyers and sellers can use NYMEX options to create price caps, price floors, and "no-cost" collars to manage price risk.

• Overview of energy & electric power forward markets, terminology, price risk and the basics of energy and electricity wholesale markets.
• Liquidity risk, funding risk and credit risk.
• What futures contracts are, and why and how they evolved.
• How physically-settled energy futures contracts are traded on the NYMEX trading floor and through the electronic NYMEX CME Globex platform.
• How cash-settled energy futures contracts are electronically traded on the ICE Futures Exchange and why the crude oil futures contract has been so successful.
• How buyers and sellers hedge natural gas and electricity price risk with NYMEX futures contracts.
• How to use heat rate linked power transactions to hedge electricity price risk with NYMEX natural gas futures contracts.
• What basis is, and what the different types of price spreads are.
• What basis risk is, and how it can destroy a futures hedge.
• What spread or basis trading is and how it works.
• The fundamentals of fixed-for-floating swaps, basis swaps, exchange indexed swaps, and contracts-for-differences.
• How electronic marketplaces such as ICE and NYMEX's Clearport Services work, how an Internet marketplace differs from an Internet futures exchange, who the CFTC and the United Kingdom's FSA regulates, and why these issues are important.
• The difference between financial and physical basis ("fin" and phys").
• Why so many industry participants use trigger deals. .
• How the wholesale energy hedging equation is defined, and how it is used.
• Puts and calls / Basic option terminology and concepts.
• What American, European and Asian style options are.
• How to create price caps and collars with exchange-traded options.

This live group seminar is eligible for 7.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.