The Derivatives Workshops aim to provide participants with knowledge on the best practices in physical trading and financing; the use of iron ore derivatives (swaps, futures and options) to manage raw material cost, lock in profits and set fixed prices for iron ore purchases and sales; as well as the use of FFA derivatives to manage price and credit risks.
|8.30am – 9.30am||Registration|
|9.30am – 9.40am||Opening Address|
|9.40am – 10.40am||Urban legend has it that it is a myth that documents presented to draw a LC have no discrepancies. Let’s kill the myth! How?
Liew Kim Fui Regional Trade Advisor DBS Global Transaction Services
|10.40am – 11.00am||Coffee Break|
|11.00am – 12.00pm||Documentary credits – Negotiation is a question of fact
Sarjit Singh Gill, SC Senior Partner ShookLin & Bok
Probin Dass Partner ShookLin & Bok
|12.00pm – 12.30pm||Financing the Iron Ore Trades
Lee Teng Whatt Trade Finance Sales DBS Global Transaction Services
1. Urban legend has it that it is a myth that documents presented to draw a LC have no discrepancies. Let’s kill the myth! How?
This short presentation would provide you with an understanding of the nature of Letter of Credit (LC) and how do discrepancies come about; and most of all how to management presentation of documents to kill the myth i.e. compliant presentation of documents under a LC.
2. Documentary credits – Negotiation is a question of fact
In the quest to reach accord on the terms of the negotiation of a letter of credit, parties must communicate clearly. A recent case highlights the pitfalls of parties failing to express their intentions clearly. In Grains and Industrial Products Trading Pte Ltd v Bank of India and another  3 SLR 1308, correspondence between the beneficiary of a letter of credit and the nominated bank gave rise to multiple issues that had to be resolved first in the High Court and then in the Court of Appeal at considerable cost to the parties. An examination of the facts of this case in the light of legal principles will serve as a useful guide to prevent misunderstandings that may end up in costly litigation.
3. Financing the Iron Ore Trades
As the trading environment gets more transparent and competitive, traders need to be innovative and provide the “EXTRAS” to lower their cost, mitigate their risks as well as cater to the requests from their more demanding counter parties. The “EXTRAS” will give them the competitive edge and get the deals done.
DBS is the leading bank in financing the commodity financing. We provide the “EXTRAS” to the traders – the different financing structures, risk mitigants as well as yield enhancement. Hear us out!
This workshop will be conducted in English.
Venue: Sands Expo and Convention Centre (Map)
Time: 9.30am – 1.00pm
|9.15am – 9.30am||Registration|
|9.30am – 10.00am||Understand Iron Ore Options Basics through Insurance Premium
Benjamin Villeger FIS
|10.00am – 10.30am||Iron Ore Options: Insurance & Speculation
Mitchell Tourle Susquehanna Pacific Pte Ltd (SIG)
|10.30am – 11.00am||Tea Break|
|11.00am – 11.30pm||Hedge and Trading Strategy Through Iron Ore Options
Lawrance Lu CICC
|11.30am – 12.00pm||Basics of Option Volatility Trading
Foaud Ramadan Citibank
|12.00pm – 1.00pm||Panel Discussion|
Mitchell Tourle Head Trader Commodity Derivatives, Asia. Susquehanna Pacific Pty Ltd
Mitchell Tourle is the head of the Commodities Desk at Susquehanna Pacific Pty Ltd in Sydney. Susquehanna Pacific is a proprietary trading firm & an affiliate of the Susquehanna International Group (SIG) of companies. Mitchell has been trading commodity derivatives for Susquehanna in Asia for 11 years covering all products & underlying commodities, specialising in options, futures & ETFs.
Lawrance Lu Head of OTC Commodity Department CICC
Mr Lu currently works in CICC as OTC commodity department general manager, he has been working in derivative trading for around 15 years. Before joining CICC Hong Kong in 2010, he worked in various investment banks and trading house in London during 2003-2010, Mr Lu established and responsible for global commodity business for CICC, has thorough understanding of derivative products and trading. Mr Lu holds BSc in financial mathematic from CASS business school, MBA from Oxford university and BSc in international finance from Shanghai International Studies university.
Benjamin Villeger Head of Iron Ore Options FIS
Benjamin has 10 years’ experience as an options broker, working across different products including soft commodities, equities, freight and iron ore. He joined the FIS iron ore desk in Singapore in 2013 and is focused on broking iron ore options, helping clients get involved in this fast-growing market.
Venue: Sands Expo and Convention Centre (Map)
Time: 2.00pm – 5.30pm
The Iron Ore market dynamics have changed considerably over the last 12-18 months. In the first part of this workshop we will examine the current state of the Iron Ore market and discuss some of the main drivers in force at present based on our proprietary in house research. The second part of the workshop will focus on risk management using a range of derivatives once the main pricing dynamics have been established. Using various scenarios we will explore the interaction between the physical and derivatives markets when pricing spot levels as well as QP pricing using a combination of products. The goal is to highlight the appropriate instruments to hedge and maximise profits using structured products while maintaining the appropriate flexibility in your portfolio.
Mr Hui Heng Tan
Marex Spectron Research is the analytical arm of the firm responsible for the research & analysis of all key energy, basic materials & industrial transportation markets. Hui Heng is the principal ferrous metals analyst of Research. He also works closely with the energy analysis team. Prior to joining the company, he had spent close to 5 years in the upstream Oil and Gas Industry. Hui Heng holds both Bachelor of Engineering and Master of Science degrees from the National University of Singapore.
Ms Amy Chen
Amy Chen is an experienced commodities specialist having spent the last 7 years working in commodities broking/trading of Iron Ore, Zircon Sand, Coal, Nickel and Iron Ore. Ms Chen joined the Marex Spectron Iron Ore desk in 2014 and has since been involved in all aspects of iron ore trading and risk management through flat price, spread- and options positions. Amy Chen holds a B.Sc. in Management from Xiamen University.