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Stock Index Futures


INTRODUCTION

A futures contract is a public transaction that takes place on an organized futures exchange. The contract is standardized which the exchange sets the terms and conditions, except the price. Since the time when organized futures trading appears to have originated in Japan during the early Tokugawa era around the seventeenth century, financial futures have become so successful that they now constitute the bulk of all futures trading and have become an indispensable tool for financial risk management by companies and fund managers. This short course will focus on understanding the mechanics of stock index futures and their uses in trading, hedging, and asset management.

COURSE DURATION

1.0 hour

COURSE OBJECTIVES

  1. Understand how futures contracts, especially stock index futures, work
  2. Understand contract standardization and its importance
  3. Know the role Clearinghouse plays and the purpose of mark-to-market and price limits
  4. Learn the essential pricing principles for stock index futures
  5. Know the various general trading strategies utilizing stock index futures
  6. Know the various ways fund managers could make use of stock index futures

COURSE OUTLINE

Module 1: Introduction to Futures Contract

  • History of Futures Trading

Module 2: Contract Standardization

  • Expiration Dates
  • Contract Value
  • Trading Hours
  • Contract Standardization Promotes Liquidity

Module 3: Clearinghouse, Margins, and Price Limits

  • Futures Margins
  • Mark-to-Market
  • Settlement Price
  • Price Limits
  • Offsetting Futures Positions
  • Cash Settlement
  • Special Quotation

Module 4: Pricing Stock Index Futures

  • Basis
  • Basis Convergence
  • Cash-Futures Arbitrage

Module 5: Trading Stock Index Futures

  • Outright Futures Trading
  • Rolling Positions
  • Spread Trading

Module 6: Fund Management Applications of Stock Index Futures

  • Beta Adjustment
  • Cash Equitization
  • Creating Equity Out of Cash
  • 130-30 Strategies
  • Portable Alpha Strategies

Assessment


IBF-FTS Funding

The Financial Training Scheme (“FTS”) provides funding for financial sector-specific training programmes which are recognized under FTS. This scheme is only eligible for company-sponsored participants who are Singapore Citizens or Singapore Permanent Residents, physically based in Singapore, and who have successfully completed a FTS programme. Financial Institutions (MAS licensed or exempt entities), involved in or supporting financial sector activities, are eligible to submit claims for company-sponsored participants.

For all FTS programmes commencing on or after 8 April 2020 to 31 December 2021, MAS will enhance course fee subsidies for locals attending accredited or recognised courses up to 90% co-funding of direct training costs, subject to existing grant caps of S$2,000 per programme..

IBF will provide an additional 5% in support in the form of IBF Credit, bringing the course fee subsidy up to 95% of course fees subsidies until 30 June 2021. This existing scheme will also be expanded to include workers in eligible FinTech firms.

For more information, please refer to IBF website.


Terms and Conditions

1) This e-training programme takes approximately an hour to complete.

2) In order to qualify for Continuing Education credits from SGX, please complete all quiz questions found at the end of each tutorial (a 70% pass rate is required) by 31 December 2021.

3) Access to the e-training materials is valid to the end of the calendar year.

4) Upon successful registration, an online course access email will be sent to you within 2 working days. If you are new to Salmon Thrust online learning system, you will receive an additional invitation email to create your online account.

5) If participants wish to make any changes to their application or request for a refund, written notice should be given within 10 business days of receiving the access ID and password to the online programme and provided the access has not been utilised. There will be an administrative fee of 20% of the fees paid. There will be no changes or refund if notice is given thereafter or if the access has been utilised.

6) It is recommended to login the web browser via a personal computer.

7) For assistance please contact e-training@sgxacademy.com or call 6670-6808.
(Operating Hours: 9.00am to 5.00pm)


This course is recommended for Trading Representatives and Professionals who need to meet their Continuing Education Credit.

SGX reserves the right to make changes to information regarding the programme if warranted by circumstances beyond its control.


Disclaimer:

By completing this registration form and providing your personal data, you agree and authorise Singapore Exchange Limited and its affiliates (collectively, “SGX”) to provide your personal data to Salmon Thrust Pte Ltd for the purposes of conducting and managing this e-course. In addition, by registering for and participating in the e-course, you acknowledge and agree to the following terms: You acknowledge and agree that this e-course is offered by Salmon Thrust Pte Ltd and conducted on a website/platform that is not owned, controlled and/or operated by SGX. SGX shall not be responsible for the consequences of your accessing such website/platform and/or the content at website/platform. SGX makes no guarantee, representation or warranty as to, and shall have no liability for, any content of such website/platform. Such website/platform linked to the SGX website does not constitute (a) an endorsement, authorisation, verification or representation that we are affiliated with the operators or owners of such website/platform; or (b) an endorsement, authorisation, verification, or representation of or as to the contents of website/platform. You agree that your access to and/or use of such website/platform is entirely at your own risk and subject to the terms and conditions of access and/or use contained therein (including Salmon Thrust Pte Ltd’s privacy and data processing policies and practices). SGX shall not be responsible or liable for any loss, damages and/or costs arising from or in connection with your registration and/or participation in the e-course and/or your access to such website/platform. The General Terms of Use of the SGX website shall apply and be incorporated herein.

Event Details