Skadi Limited Learning

Course Descriptions

 

Background:

Skadi Limited provides training on a range of products to improve knowledge. Our training delivers product overviews, explains the motivations behind market participants and identifies areas of risk for Auditors to consider when approaching their next audit.

 

Examples of some of our training are shown below.

 

Product Training:

 

Introduction to Convertible Bonds

Duration: 1 hour (45 minutes presentation, 15 minutes Q&A)

Participants: 20

 

This training is designed as a preparation course for Auditors looking at the product for the first time, or those in need of a refresh. The course explains why Convertible Bonds are issued, where they lie in the Corporate Capital Structure, Convertible Bond terminology, Risk Sensitivities (Greeks), how the product trades, the universe of holders, and a step by step guide to the new issue process.

 

Introduction to Structured Credit

Duration: 1 hour (45 minutes presentation, 15 minutes Q&A)

Participants: 20

 

This training is designed as a preparation course for Auditors looking at the product for the first time, or those in need of a refresh. The course explains the drivers behind the growth in Structured Credit products and why they are issued. The risk profiles and payout structures of the main products as well as the reputational and regulatory impact of the credit crunch. The course also covers how these products have been misused in the past. Participants are introduced to the concept of correlation risk and how to address the mark-to-model problem faced by an audit function.

 

Specialised Training:

 

What is an Inter Dealer Broker?

Duration: 1 hour (45 minutes presentation, 15 minutes Q&A)

Participants: 20

 

This training is designed as a preparation course for Auditors looking at the symbiotic and complex relationship between the firm’s traders and inter dealer brokers. It would also be suitable for staff employed in anti-bribery and corruption, and legal and compliance. The course explains what an inter dealer broker does, who the main firms are, how they compensate their staff, how brokers transact (principle vs name give up) and covers possible ways a trader might misuse a broker and why misuse continues to occur.

 

 

Rogue Trader Stew

Duration: 1 hour (45 minutes presentation, 15 minutes Q&A)

Participants: 20

This training considers three major rogue trading episodes of the past 20 years, Barings, Soc Gen and UBS identifying common risk themes or ingredients. These are further categorised into nature versus nurture. The training arms Auditors with a set of useful “red flags” which will help them identify areas of risk when approaching an audit.

 

Workshops:

 

Trader Workshop

Duration: 1 hour (20 minutes presentation, 30 minutes trading game, 10 minutes review)

Participants: 8-10

 

The Trader Workshop has been designed to give Internal Auditors a sense of what trading is first hand. The training provides auditors with empathy for traders. The course explains how trading has developed over recent years and explores how technology has impacted their role, the importance of information, discipline and record keeping. Traders are placed in the context of other Front Office Staff, and other market participants.

 

30 minutes of the workshop are devoted to the participants trading with each other. The participants learn how difficult it is to process information, manage risk and pay attention to other trading activities in the market. The trading game is structured in a way to allow participants scope to abuse the market, while not encouraging them to do so.

 

During the review, the group explores how the market structure allowed traders opportunity. What controls exist around trading activity in the game? The game provides insights into trader behaviour and culture, with participants invited to consider whether they should game the system in spite of being able to.