Supporting OTC Derivatives Workshop 3 >>
Supporting OTC Derivatives Workshop 1
OTC derivative governance and education programmes
| Date: | November 2006 |
| Author: | Ian Dando and Rob Sanders |
Why Intelligence workshops?
The Intelligence membership asked Investit to cover 'Supporting OTC Derivatives' (OTCs) as a series of three workshops, in order to stay abreast of this fast moving topic and benefit from other members' experiences.
The first workshop was titled The Corporate Governance of OTC Derivatives and Establishing OTC Derivative Education Programmes.
This report captures the experiences of both Intelligence member company delegates and Investit consultants. Much of the detail was covered in the workshop itself; the report is intended to be an outline of current best practice experience.
OTC derivative governance frameworks
Expertise in supporting OTCs is scarce. Investment management companies are coming to understand the benefits of a comprehensive OTC education programme.
Investment management companies need to identify who requires OTC training in line with the policy and control programme. This should stretch from senior management in all areas of the business, down to the administrators who take meeting minutes. While many roles may only need basic training in the main principals of OTCs, some roles will require in-depth training.
There are many suppliers of OTC training, although experience of those at the workshop was that few off-the-shelf courses sufficiently addressed the operational side of the products. The report outlines the best approach to accessing appropriate training.
Table of contents
| Management Summary | 1 | ||
| 1.0 | Introduction | 3 | |
| 1.1 | Scope and framework of the research | 3 | |
| 2.0 | OTC Corporate Governance | 5 | |
| 2.1 | Establishing an OTC governance framework | 5 | |
| 2.2 | Developing an OTC governance framework | 5 | |
| 2.3 | What does an OTC governance policy contain? | 6 | |
| 2.4 | Ownership of the OTC governance policy | 7 | |
| 2.5 | Policy approval and ongoing management | 8 | |
| 2.6 | Policy considerations | 9 | |
| 2.7 | The challenges and requirements of effective OTC governance | 10 | |
| 3.0 | OTC Education Programmes | 11 | |
| 3.1 | The drivers for OTC education programmes | 11 | |
| 3.2 | Who sponsors the OTC education programme? | 11 | |
| 3.3 | Who needs OTC training? | 12 | |
| 3.4 | Build a competency matrix | 12 | |
| 3.5 | Converting a competency matrix into training needs | 13 | |
| 3.6 | Who identifies training needs for each competency? | 14 | |
| 3.7 | Who supplies this training? | 14 | |
| 3.8 | Managing and monitoring education | 14 | |
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