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1002 Booklet Markets Simulations
 

1002 Booklet Markets Simulations

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    1002 Booklet Markets Simulations 1002 Booklet Markets Simulations Document Transcript

    • oxyor. simulations
    • Why use our simulations 3 Trading Simulation 4 Option Trading Simulation 6 Pension Fund Simulation 8 What our users say 10 The simulations in action 11 Participants are having fun while learning by doing Asset Management Simulation 12 All simulations run via internet Portfolio Management Simulation 14 Credit Risk Simulation 16 User friendly interface Bank Management Simulation Up to 100 participants, from around the world, in one session 18 Additional offerings 20 Sessions can be done in one hour No facilitators physically needed on location Online tutorials and videos available Tailored scenarios possible Tailored scenarios possible Comprehensive debriefs on an individual levelcontent. Scenarios for different skill levels
    • Why use our simulations "Learning by doing" is Oxyor’s key motto and our simulations are perfect examples. Realistic Our simulations are built to be a mirror of reality. They are educational and can be competitive, but still remain fun and engaging. In a realistic environment, users can explore different strategies and experience the consequences of their actions and decisions. Our simulations can be tailored to your specific needs and it is possible to include additional learning objectives. All the simulations are designed by the best practioners from their respective fields which ensures that the simulations are realistic and cutting edge. Educational The unique debriefing function behind all our simulations gives the users the opportunity to analyse their actions over time, explore areas of improvement, and adjust behaviour where needed. Our simulations are excellent tools for training purposes as they focus not only on the end-results but also on behaviours and the thinking processes during the simulations. The quantitative outcome from the debriefing tool together with a qualitative discussion about the activities during the simulations, easily identifies strengths and improvement areas for all users. Some simulations require intensive team work from which the users can learn from each others’ strengths and weaknesses. The simulations develop a deeper understanding of the topics explored and create a higher value for the investment made in training. Entertaining If you want to give your clients or employees hands-on experience in typical transactions of a financial institution, using our simulations is your best solution. The simulations are ready to use with relatively little preparation for the users, including those users without any knowledge of the simulation’s subject. Your clients or employees can sit in your chair and experience the work environment in a financial institution in a fun and entertaining way. Whether using our simulations for training, evaluation, awareness, or just for fun, all users will find the experience to be rewarding.2 3
    • © Trading Simulation TradeSim Description Duration The Trading Simulation puts the participants in the seat of During one trading session, normally lasting between one and trader in a dealing room. They have to monitor the markets two hours, a full trading day is simulated. The length of a session and act on news and price changes, as well as give two-way can vary depending on the experience of the participants. A prices and manage risks. session can also be stretched to multiple days in order to show the impact of overnight positions. During the simulation, the participants experience the stress, continuous demands, fast needed action and A first-time session typically requires either an hour of pre- disappointments of a typical trading day. They will be simulation e-learning or a 30-minutes presentation before the required to adapt their views and trading strategies when start of the trading. faced with changing market conditions. After the trading session, the instructor provides the The participants interact with other market players, both real participants with both general (group) and individual feedback. (other participants in the same trading session) and fictive. The feedback session usually takes some 30 minutes. They trade a pre-programmed scenario from an actual trading day. However, the scenario can be manipulated from A full trading simulation - with preparation, trading and the control panel during the session in order to test various feedback - takes between two and three hours on average. abilities of the individual participants. The instruments which can be traded in the simulation are: currencies, equities, indices, commodities, bonds and fictitious instruments. Key issues covered Evaluation Dynamics of the financial markets After each session, a debrief is conducted, including the Responses to client requests and changes following: in market conditions Profitability Risk management Risk and liquidity management and risk profile Liquidity handling Position(ing) compared to market movements Profit generation Market awareness and reaction to news Trading strategies and styles of trading Client service, including response times, pricing Handling of market emotions and arbitrage accuracy and speed possibilities Trading style (e.g. market maker vs. ‘market taker’) Technical and fundamental analysis4 5
    • OptionSim © Option Trading Simulation Description Duration The Option Trading Simulation puts the participants in the During one trading session, normally lasting around two hours, seats of option brokers. They have to monitor the markets and a full trading day is simulated. The length of a session can vary act on news and price changes. At the same they give two-way depending on the experience of the participants. A session can prices and manage risks and holding levels. also be stretched to multiple days in order to show the impact of overnight positions. During the simulation, the participants experience the stress, continuous demands, fast needed action and disappointments A first-time session typically requires either one to two hours of of a typical trading day. They will be required to adapt their pre-simulation e-learning or a 60-minute presentation before views and option trading strategies when faced with changing the start of the trading. market conditions. After the trading session, the instructor provides the The participants interact with other market players, both participants with both general (group) and individual feedback. real (other participants in the same trading session) and The feedback session usually takes 30-60 minutes. fictive. They trade a pre-programmed scenario from an actual trading day. However, the scenario can be manipulated from A full trading simulation - with preparation, trading and the control panel during the session in order to test various feedback - takes between two and four hours. abilities of the individual participants. The Option Trading Simulation has many similarities with the (‘vanilla’) trading simulation. Key issues covered Evaluation Dynamics of the financial markets After each session, a debrief is conducted, including the The ‘Greeks’ following: Responses to client requests and changes Profitability in market conditions Risk and liquidity management and risk profile Risk management Position(ing) compared to market movements Liquidity handling Market awareness and reaction to news Profit generation Client service, including response times, pricing Trading strategies and styles of trading accuracy and speed Handling of market emotions and Trading style (e.g. market maker vs. ‘market taker’) arbitrage possibilities Technical and fundamental analysis6 7
    • © Pension Fund Simulation PensionSim Description Duration In the Pension Fund Simulation, the participants will The simulation software is internet based and usually runs experience what it is like to manage a pension fund over a session objectives over a period of one day. In a session a (fictive) period of 50 years. They will come across different period of 50 years is simulated. The duration may be adjusted economic conditions of inflation, interest rates and asset to match the participants’ experience and available time. returns. A standard session would require either one hour’s worth of The participants have to manage the balance sheet of the e-learning or classroom presentation before the start of the pension fund, comply with Central Bank regulation and simulation. manage the interests of all stakeholders. They will have to balance short term (inflation, compensation) and long term After a simulation session, the group feedback takes on (fund solvency over economic cycles) considerations. average two hours. Individual feedback can range from ten minutes to one hour per participant depending on the The participants will gain an in-depth understanding of required depth of coaching. market dynamics important for pension funds, as well as experience the emotions of managing a pension fund over a longer time horizon. Key issues covered Evaluation Setting and management of pension fund objectives The instructor will interact with the participants by analysing Fund management, including balance sheet and risk their strategy and performance and give continuous feedback. management, through ‘normal’ economic cycles and During and after a session the participants are reviewed ‘unexpected shock’ scenarios both as a group (a ‘pension fund board’) and individually by Balance the interest of all stakeholders (active an instructor on specific aspects including the following: members, retirees, unions, regulators and politics) Fund strategy handling and meeting of stakeholder Interpretation of macroeconomic data and objectives economic news Profitability Decision making under economic uncertainty Risk management Compliance with regulatory requirements Knowledge and awareness of market developments Reaction to news and market changes Liquidity management8 9
    • What our users say: The simulations in action Allard Jacobs, Duncan Niederauer, All our simulations can be either run over the internet or The delivery itself is also very flexible. You can use our online CEO All Options: CEO of NYSE Euronext: in a closed network environment with limited technical video tutorials and demonstrations or follow a train-the- requirements. The sessions can be run in a single-user or trainer session in order to brief and debrief the participants “This real-world simulation is the first in its kind and takes “Education and financial literacy are priorities at NYSE group environment giving you all the flexibility you need. yourself. Also, you can ask us to provide a facilitator or trainer place in a time when the financial industry is changing. In Euronext and we consider the simulations to be a great way to run the session for you. We can also provide laptops and this changing environment the role of market makers and to train young financial talent in preparation for a future When setting up a simulation you can have the participants infrastructure if needed. liquidity providers is growing fast. Therefore we are pleased career in finance.” work in groups, or each participant working individually, that the simulations have shown that the Netherlands has which is most common in trading. If you run the simulation You can set up most simulations to run within the space of the talent to take advantage of these opportunities. To show Steve Barnes, over the internet, you can let everyone log into the system an hour (excluding briefing and debriefing) or as a support in our belief in the trading simulation and the competition we Head of Trading, Standard Bank: within a classroom or from their home or desk. Through our training over a couple of days. are offering the top 3 finalists a job contract.” administration and trainer consoles you are fully in control “In the current financial markets, finding the correct people and you can communicate with the participants. You can is essential. Banks are looking for people who not only create groups over the internet connecting participants from Roy Kramer, make profits, but at the same time monitor their risk and all over the world. Nyenrode business university: treat their clients well. For this reason the simulations from Oxyor have been perfect to analyse and train new people “We have used the simulations from Oxyor in our executive for our business lines.” programmes. We and our participants are convinced that the simulations are an important tool to bridge the gap Anja Ong, between the academic world and the actual day-to-day Global winner of the Traders Trophy: business. The software Oxyor provides is of extremely high quality, flexible and user friendly. “It was very stressful but a great experience. I didnt know We would highly recommend using Oxyor and its simulations anything about trading when I started and now I feel I have for all your training.” gained great understanding of investment banking.”10 11
    • AssetSim © Asset Management Simulation Description Duration The Asset Management Simulation gives the participants The simulation software is Internet based and runs normally the opportunity to gain valuable knowledge and experience over a period of one day. The portfolios are constructed in the process of portfolio management and strategic asset in a simulated environment that spans over five years, allocation. which translates to one simulated month per five minutes. The duration may be adjusted to match the participants’ The participants are given a certain (fictive) amount of experience and available time. capital which they can strategically invest over asset classes and their constituents. The goal is to maximise returns while A standard session would require either one hour of adhering to their fund objectives and risks. e-learning or classroom presentation before the start of the simulation. The participants will gain an in-depth understanding of market dynamics and can create and follow (their own) After a simulation session, the group feedback takes on market expectations as well as experience the emotions of average two hours. Individual feedback can range from ten managing a fund over a longer time horizon. They will get the minutes to two hours per participant depending on the opportunity to see which market theories work as expected required ‘depth of coaching’. and what happens when a theory breaks down in practice. Key issues covered Evaluation Active management of a portfolio of various The instructor will interact with the participants by analysing instruments their strategy and performance and give continuous Risk assessment and rating feedback. During and after a session the participants are Risk and return appetites of clients reviewed individually by an instructor on specific aspects Pricing, covenants and collateral including the following: Formulation of investing and trading strategies Profit and loss (volatility) to build a balanced portfolio Risk management Establishment of risk parameters, trading limits Identification of (own) trading styles and goals Knowledge and awareness of market developments Credit portfolio management Reaction to news and market changes Selection of target instruments, sectors Liquidity management and companies Fundamental and technical analysis Analysis of expected returns, volatility Fund strategy handling and portfolio “fit” for each investment Instruments to hedge or leverage a position Realistic ‘take profit’ and ‘stop loss’ levels12 13
    • © Portfolio Management Simulation PortfolioSim Description Duration The Portfolio Management Simulation lets the participants The simulation software is internet-based and runs ‘live’ gain valuable knowledge and experience in the process (either with a 15-minute delay or real time) over a period and execution of portfolio management. The participants of at least four weeks. The length of a session can vary are given a certain (fictive) amount of capital which they considerably depending on the experience of and time can invest in a variety of securities. The goal is to maximise available for, the participants. A ‘normal’ length is five to returns while adhering to their client’s portfolio objectives eight weeks. and balanced trading risks. The online simulation uses real market instruments in a real time environment. A standard session would require either one hour of e-learning or a classroom presentation before the start of The participants will get the opportunity to see which market the simulation. theories work as expected and what happens when a theory breaks down in practice. They gain an in-depth understanding After a simulation session, the group feedback takes on of market dynamics and create and follow (their own) market average two hours. Individual feedback (partly given during expectations as well as experience the emotions involved in a session), can range from ten minutes to two hours per managing a portfolio of real instruments in real time. participant depending on the required depth of coaching. Key issues covered Evaluation Active management of a portfolio of The instructor will interact with the participants by analysing various instruments their strategy and performance and give continuous Risk and return appetites of clients feedback. During and after a session the participants are Formulating of investing and trading strategies reviewed individually by an instructor on specific aspects to build a balanced portfolio including the following: Establishment of risk parameters, trading limits Profit and loss (volatility) and goals Risk management Selection of target instruments, sectors Identification of (own) trading styles and companies Knowledge and awareness of market developments/ Analysis of expected returns, volatility and portfolio products “fit” for each investment Reaction to news and market changes Instruments to hedge or leverage a position Liquidity management Realistic ‘take profit’ and ‘stop loss’ levels Fundamental and technical analysis14 15
    • © Credit Risk Simulation CreditRiskSim Description Duration The Credit Risk Simulation gives the participants an To allow the participants to clearly see the effects of their opportunity experience in practise the challenges of decisions, we recommend that a simulation last for a making credit decisions and managing a credit portfolio in a minimum of four ‘rounds’. One round typically lasts two competitive and dynamic environment. All of the elements hours and is equivalent to one year in real time. of a real credit decision environment are featured in the simulation. The duration of the Credit Risk Simulation is usually three days. The simulation can be shortened or extended depending After the simulation, the participants will be able to recognise on the purpose of the simulation and the experience level of the consequences of the Basel rules and the importance of the participants. Tailor-made scenarios can be provided but economic capital. They also will be able to calculate and use extra developmental costs. financial ratios and ratings, evaluate covenants, collateral, and assess – and take – credit risk. To prepare for the Credit Risk Simulation, the participants can obtain additional theoretical knowledge regarding risk The participants will be divided into groups of three to five concepts, either by e-learning or in a preceding training people, each representing the credit risk department of a session. bank. Each group sets its own risk strategy, organises its work and uses credit risk tools to make decisions with regard to The simulation may be preceded by a 3-5 day Enterprise credit proposals and credit portfolio management. The Credit credit risk course, where the participants acquire a deeper Risk simulation takes place in a competitive environment (theoretical) understanding of credit and financial analyses where Return on Economic Capital (similar to RAROC) is the of corporates. main measurement of success. Key issues covered Evaluation Basel I, II and III and various capital definitions After each simulation an overall evaluation can be conducted Risk assessment and rating in which the participants will address and evaluate: Risk process and limits Performance (Return on Economic Capital as well Pricing, covenants and collateral as profit & loss) Loan products and exit possibilities Risk profile and commercial issues Credit portfolio management Limit setting and usage of limits Group organisation and working methods Interpretation of, and reaction to, news16 17
    • © Bank Management Simulation BankManager Description Duration In the Bank Management Simulation, the participants will The simulation software is internet based and usually runs experience what it is like to manage a bank over a (fictive) session objectives over a period of one to three day. In period of 10 years. They will come across different economic a session a period of 10 years is simulated. The duration conditions of inflation, interest rates, asset returns and may be adjusted to match the participants’ experience and funding issues next to the behaviour of loans to corporates available time. and private individuals. A standard session would require either one hour’s worth of The participants have to manage the balance sheet of the e-learning or classroom presentation before the start of the bank, comply with Central Bank and Basel I/II/III regulation simulation. and manage the interests of all stakeholders. They will have to balance funding and investments throughout various After a simulation session, the group feedback takes on economic conditions. average two hours. Individual feedback can range from ten minutes to one hour per participant depending on the The participants will gain an in-depth understanding of required depth of coaching. market dynamics important for banks, as well as experience the emotions of managing a bank over a longer time horizon. Key issues covered Evaluation Setting and management of a banks objectives The instructor will interact with the participants by analysing Management of funding their strategy and performance and give continuous Risk management, through ‘normal’ economic feedback. During and after a session the participants are cycles and ‘unexpected shock’ scenarios reviewed both as a group (a ‘banks board’) and individually Balance the interest of all stakeholders by an instructor on specific aspects including the following: Interpretation of macroeconomic data and Funding strategy economic news Handling and meeting of objectives Decision making under economic uncertainty Profitability for all stakeholders Compliance with regulatory requirements Risk management Knowledge and awareness of economic developments Reaction to market changes Asset management18 19
    • Additional offerings: Assessment and recruitment services Oxyor can provide assessment and recruitment services tailored to your organisation. In an assessment, we use a combination of tests, simulations, case studies, pitches and presentations. Client events Oxyor’s simulations are well suited for client events and client entertainment. Our trainers are also frequently used as speakers at seminars and conferences. Competitions Oxyor is the global sponsor of and delivers the simulation software for the highly successful student competition Traders Trophy Worldwide. Our trainers and simulations can be used for other types of competitions as well. Advisory Due to the up-to-date and in-depth subject knowledge of our trainers, they are occasionally asked to work as subject matter experts in various projects. Online Training By using our state of the art portal that bridges the gap between online learning and classroom training, you can increase flexibility and generate greater return on your learning investment. Onsite Training Oxyor delivers full service training and development programmes for graduates and continuous development. Masters In combination with several highly-regarded business universities around the world, Oxyor delivers executive masters of finance programmes.20
    • Olmenlaan 281404 DG BussumThe NetherlandsT +31 (0) 35 6921 392info@oxyor.comwww.oxyor.com