ETRM Game powered by riskGRID at ISS 2014 Rome and Milan Saturday July 5th

1. The riskGRID™ ETRM Game –
ISS 2014 J l 5th Mil & RISS 2014 July 5th Milan & Rome
• We are proud to announce that we will be offering a new and excitingp g g
opportunity to learn and practise Energy Trading and Risk Management
at the International Summer School this year.
• The course teaches the groundwork on Day 1 and then runs ag y
competitive team game on Day 2. Day 1 will be different for Rome and
Milan, Day 2 is July 5th, 2014.
• www.riskschoolrome.eu/etrm-game
The riskGRID™ ETRM Game
Sponsored by Platts
1
Sponsored by Platts
A division of the McGraw-Hill Companies

2. Content & Learning Outcomeg
• ETRM first principles.p p
• Fundamental analysis, Technical trading, Futures, Swaps, Options and
Deal structuring (financial engineering).
• How trading companies banks and hedge funds work How indexHow trading companies, banks and hedge funds work. How index
trades and deal structuring work.
• Deal booking, trading the price curve, trading the volatility surface,
recognising and either leveraging or neutralising market moves by typerecognising and either leveraging or neutralising market moves by type.
• Defining a Risk adjusted Framework and managing an ETRM strategy.
• You will be graded as a team and individually.
• This is a market-driven course lead by practitioners. We don’t teach
from books, this is a pro-am event where our aim is to get you buckled
in, down the runway and airborn as quickly as possible – with someone
helping you. Whether front, middle, or back office; or any of the STCB or
CPG ETRM roles ….
2
You will be ideally prepared for an interview…
or simply superbly introduced to ETRM.

3. Who learns ETRM/CTRM¹ ?/
Commercially Academically Professionally
“for traders, trader new-hires
and the teams who work with
them”
” for students and their teachers” “corporate risk managers,
accountants, lawyers”
1 live price and vols
2 futures physical and freight
1 practitioner dominated faculty
yet academically sound
2 trading structuring role
1 Explains curve construction
and management
2 Teaches accounting and2 futures, physical and freight
capability, index (Platts etc)
3 real market curves and
surfaces (price vol and correl)
2 trading, structuring, role-
playing, financial engineering
3 a gradable case study in
ETRM/CTRM
2 Teaches accounting and
regulatory best practice
3 Teaches risk management
best practicesurfaces (price, vol and correl)
4 trading, structuring, role
playing, financial engineering
ETRM/CTRM
4 constant assessment by pop-
quiz and a variety of games and
tests
best practice
4 Captures structured deals
allowing reverse engineering
playing, financial engineering
5 look at our
recommendations on linkedin
tests
5 ideal preparation for trading
and risk management
front/middle/back office positions
5 teaches “as its taught” by
your risk management
service providers
3
recommendations on linkedin front/middle/back office positions
¹ ETRM – Energy Trading & Risk Mgmt, CTRM – Commodity Trading & Risk Mgmt

4. How do we know its good?g
• Its like flying a fighter jet. When properly designed and built any
experienced (pilot)trader can pick up the game and fly it after only
minutes of familiarisation.
• We were constrained in academia by poor IT when compared to the
i l ld O th i t t th t d tcommercial world. Our game runs across the internet on the students
laptop. Every problem you solve is an opportunity and becomes a
critical success factor while slowing the competition.
• We developed software with “live prices and live vols”• We developed software with live prices and live vols .
• The game content is based on real events as they happened – it is not
a simulation but like the techniques used in the commercial world it is
based on actual market action and information and heavilybased on actual market action and information and heavily
dependent on role playing within a real commercial environment.
• The game itself runs for 8 hours – its a dense and intense day, just like
the trading (ETRM) world.
• Students work in teams of four to build a strategy, execute, evaulate
and rebalance within a Risk άdjusted Framework (RάF ™ by riskGRID)
while their corporate world and its needs change with a dynamic
k tmarket
4
We were challenged to build something special

5. How do we know its unique?q
• Its like flying a fighter jet.
• With an experienced design, engineering and delivery team we
stripped down actual commercial software to first principles and built a
student version with as few compromises as possible and many which
were practical.
• We then rigorously trained and taught with it, honing and developing
our ETRM game.
t ll ti ill h i d i l k t l• At all times you will have experienced commercial market people
training you hands on and taking the controls with you for the more
complicated manouvers.
• We hired others to teach with their software as a benchmark. We out-
performed at every level.
5
We built something special –
riskGRID™ for Academia

6. riskGRID™ the GUI feed…
h h i l O C F d
Generators Transaction types Database
Vol
GEN
Exchange, Physical, OTC
Futures, Swaps, Options
Data
Price
Fundam
entals
Curve
GEN
Price
GEN Basis, Index, EFP
Data
Commodities Biz Mgmt, Compliance & Controls
riskGRID™ Architecture
Oil Gas Electricity CRM
• Customer positions, limits, reports...
C dit Li it Ri k Li it t
Regional & Global
Carbon, LNG, Weather, Structured
i t b dd d
CRO
• Credit Limits , Risk Limits, reports…
Risk
• By commodity, strike, expiry…
6 Stack Agrimax
Finance etc can be added
Risk

7. riskGRID™ - the front end of
the Trader Systemthe Trader System
Account: All 1 +/- day 0 30-Mar-12Prices riskGRID AS OF: March 30 2012
“Give me a lever long enough
Account: All 1 +/ day 0 30-Mar-12Prices riskGRID AS OF: March 30, 2012
Commodity last ∆ +/- IVol% +/- TDelta TGamma $Theta $Vega $Rho $P&L YTD $P&L TDY Futs Swaps TDelta 1d ∆ IV%
1w ∆
IV%
0 0 0
WTI (CL)
Apr-12 103.02 (4.50) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
May-12 103.54 (4.41) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
J 12 104 03 (4 22) 0 00 20 00% 0 00 (0) (2) 139 (92) 25 (1 503) $ 200 100 300 400 0 01% 0 01%
and a fulcrum strong enough,
Jun-12 104.03 (4.22) 0.00 20.00% 0.00 (0) (2) 139 (92) 25 (1,503) $ 200 100 300 400 0.01% 0.01%
Jul-12 104.40 (3.90) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
Aug-12 104.66 (3.55) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
Sep-12 104.86 (3.23) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
Oct-12 105.05 (2.92) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
Nov-12 105.23 (2.63) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
Dec-12 105.33 (2.35) 0.00 20.00% 0.00 0 0 0 0 0 0 $ - 0 0 0 0.01% 0.01%
(0) (1.6) $ 139 $ (92) $ (1,503) $ 200 100 300 400
and I will move the world.”
HEAT (HO)
Apr-12 316.84 (3.75) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
May-12 317.01 (3.49) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Jun-12 317.94 (2.50) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Jul-12 318.91 (2.11) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Aug-12 319.81 (1.78) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Sep-12 320.53 (1.55) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Archimedes
p ( ) $ $ $ $
Oct-12 321.07 (1.51) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Nov-12 321.48 (1.65) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Dec-12 321.76 (1.74) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
0 0.0 $ - $ - $ - $ - 0 0 0
RBOB (RB)
Apr-12 338.99 13.27 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
May-12 330 81 5 74 0 00 20 00% 0 00 0 0 0 $ - $ - 0 $ - $ - 0 0 0 0 01% 0 01%
Archimedes
Greece ca. 300 BC
May 12 330.81 5.74 0.00 20.00% 0.00 0 0.0 $ $ 0 $ $ 0 0 0 0.01% 0.01%
Jun-12 324.93 2.69 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Jul-12 319.47 1.00 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Aug-12 313.91 (0.15) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Sep-12 308.24 (0.84) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Oct-12 292.10 (1.41) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Nov-12 287.40 (1.38) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
Dec-12 284.94 (0.85) 0.00 20.00% 0.00 0 0.0 $ - $ - 0 $ - $ - 0 0 0 0.01% 0.01%
7 Stack Agrimax
0 0.0 $ - $ - $ - $ - 0 0 0

8. STCB – Short Term Commercial Bank
8

9. CGP – Consumer Packaged Goodsg
e.g. A Tesco
9

10. The full Academic Course
Dynamic Commodity Trading
ABC Modules Overview
• 3 hrs Fundamentals
Modules elements and
duration
A i ti
ABC Modules
A, B, C Common
elements
• 3 hrs
Duration
AA
• Booking deals• 3 hrs Fundamentals
• 1 hrs Technicals
• 2 hrs Futures
• 1 hrs Swaps
• 1 hrs Options
• 1 hrs Swaptions
Appreciation
30 Hours
• 3 hrs
• 3 hrs
• 3 hrs
• 3 hrs
• 9 hrs
• Booking deals
• Curve Structure – Price
• Curve Structure - Vol
• Market Moves
• Trading Game
• 1 hrs Deal Structuring
Basic
60 Hours
cumulative
• 1 hrs Fundamentals
• 1 hrs Technicals
• 1 hrs Options
• 1 hrs Swaptions
• Booking deals
• Curve Structure – Price
• Curve Structure - Vol
• Market Moves
• 3 hrs
• 3 hrs
• 3 hrs
• 3 hrs
BB
ABC module
total duration
p
• 1 hrs Deal Structuring
• 1 hrs How Trading Companies Work
• 1 hrs How Banks Work
• 1 hrs How Hedge Funds Work
• 1 hrs How Index Trades Work
• 1 hrs How Structured Trades Work
• A Module allows
total of 30
teaching hours
• B Module allows
total of 30
• Trading Game • 9 hrs
Competent
90 Hours
• 1 hrs How Structured Trades Work
• 2 hrs Indices
• 2 hrs Platts
teaching hours
• C Module
allows total of
30 teaching
hours
• 2 hrs
• 3 hrs
CC
• Booking deals
• Curve Structure – Price
90 Hours
cumulative
• 1 hrs Swaptions & Financing
• 1 hrs Deal Structuring - for Finance
• 1 hrs How Trading Companies Trade
• 1 hrs How Banks Trade
• 1 hrs How Hedge Funds Trade
• 1 hrs How Index & Structured Trades Leverage
• 3 hrs
• 3 hrs
• 9 hrs
• Curve Structure - Vol
• Market Moves
• Trading Game
• 1 hrs How Index & Structured Trades Leverage