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New for 2008 - FIA FOA International Derivatives Expo (IDX)
will comprise the 15th International Derivatives Conference & NEW International Trade Exhibition.
For further information and ro register on-line click here

REGISTER BEFORE 16 MAY AND SAVE
APG on Wholesale Financial Markets and Services International Derivatives Week 2008 - 9-13 June 2008 . For further information click here
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FOA Publications

Publications

In order to provide members with information on matters affecting their business, the FOA publishes a number of specialist, technical and general interest publications. The FOA also develops guidelines to help firms navigate their way through their regulatory obligations successfully.

EU-US Coalition on Financial Regulation
Mutual Recognition , Exemptive Relief and "Targeted" Rules' Standardisation: The Basis for Regulatory Modernisation (March 2008)

The second report, issued by the EU-US Coaltion on Financial Regulation, on cross-border regulation. The Report argues strongly for the early adoption of a tailored and progressive regim for establishing a more open, inclusive and effectively regulated transatlantic marketplace to the benefit of all users.

For a copy of the Report click here.

Impact of the Capital Requirements Directive on Commodity Market Participants

A KPMG report, commissioned by the FOA, examines some of major issues that would arise if the capital adequacy provisions of the Capital Requirements Directive were to be applied to specialist commodity dealers. The report is based on responses to a questionnaire completed by a sample of FOA members who are participants in these markets.

Click here for further information or a copy of the Report.

Derivatives 2007: Meeting the Challenge of Change

The FOA's annual yearbook focuses on the challenges and opportunities facing the industry with guest contributions by and interviews with key industry figures on the latest developments that are taking place.

Derivatives 2007 includes articles on traditional exchange traded financial derivatives, credit derivatives; equities; energy, power and the environment; agriculture and soft commodities; precious and base metals; operations and support; technology; emerging markets and exchange competition/consolidation.

Guest contributors include:

  • Ed Balls MP, Economic Secretary to the Treasury
  • Ruben Jeffrey, Chairman of the Commodity Futures Trading Commission
  • Arthur Docters van Leeuwen, Chairman of the Committee of European Securities Regulators
  • Dr Thomas F Huertas, Director, Wholesale Firms Division and Banking Sector Leader, Financial Services Authority.

For copies please e-mail derivatives2007@newsdeskmedia.com

Managing The Risk of Financial Transactions - Guidelines for Market Participants (November 2006)

The FOA, in association with PricewaterhouseCoopers and UK Trade & Investment, have produced a set of Guidelines to provide an indication of some of the kind of controls and procedures that may be adopted by users of financial instruments, whether traded OTC or on an exchange, for managing transactional risk.

Click here for a Copy of the Guidelines

Guidelines for Market Users of the London Metal Exchange (June 2006)

The FOA has produced a set of industry guidelines on good order handling practice to assist broker/dealers when dealing with their customers and in measuring and interpreting applicable regulatory obligations in respect of order handling, conflict management and market conduct.

Click here for a Copy of the Guidelines.

Derivatives 2006
"Globalisation: Managing Growth and the Consequences of Growth"

The FOA's annual yearbook focuses on the challenges and opportunities facing the industry, and provides a useful insight into the industry and reference work for market participants, their customers and others who have an interest in the derivatives industry.

Derivatives 2006 includes articles on the trading environment, products, clearing, technology, regulation and compliance with contributions by and interviews with key industry figures and opinion-formers.

Guest contributors include:

  • Pervenche Beres MEP - Chairwoman of the European Parliament's Economic & Monetary Affairs Committee;
  • Rt Hon John McFall MP - Chairman of the Treasury Select Committee;
  • John Tiner - Chief Executive, Financial Services Authority;

For copies please e-mail derivatives2006@newsdeskmedia.com

Developing a Corporate Bond Market and Associated Derivatives Market in China (Oct 2005)

FOA and UK Trade & Investment have released a report on the current state of China's emerging corporte bond market. The Report, "Developing a Corporate Bond Market and Associated Derivatives Market in China: A Study of the Opportunities and Challenges" is based on research carried out by the ICMA Centre - Business School for Financial Markets, University of Reading and considers the need to balance progress in the development into a free and risk-based market with the need for the Chinese authorities to maintain the credibility of any new market structures through the years of transition.

The Report is available in both English and Chinese from UK Trade & Investment. For copies, please e-mail: ray.williams@uktradeinvest.gov.uk

Report on Activities 2004 2005 - Please click here for an overview of the work of the FOA during this period.

The Transatlantic Dialogue in Financial Services: The Case for Regulatory Simplification and Trading Efficiency (Sept 2005)

The ABA Securities Association (ABASA), the Bankers' Association for Finance and Trade (BAFT), the British Bankers' Association (BBA), the Futures Industry Association (FIA), the Futures and Options Association (FOA) and the Securities Industry Association (SIA), with the support of the Corporation of London, have published a major study which calls for regulatory convergence of the transatlantic markets. The study underscores the need for establishing a much more coherent and cost-efficient regulatory framework for wholesale transatlantic business in financial services.

The study is available in two parts.

Volume I - The Industry Case for Priority Regulatory Act
Volume II - Comparative Legal & Regulatory Analysis (compiled by Clifford Chance)

Click here for a copy of Volume I and/or Volume II.

A Guide for Private Investors on Derivatives and Higher Risk Investments (August 2005)

A Guide for Private Investors on Derivatives and Higher Risk Investments (August 2005)
"More Power to your Money", published in association with Company Refs, is aimed at improving individual investors' understanding of, the range of higher risk products available in the market; how to assess whether such products are suitable; how to access such products and what protections are available to investors if things go wrong.

Click here for a copy of the Guide

Improving Market Efficiency: The Participant's Perspective - by David Myers and Shanin Shojai

At the request of the FIA and FOA, the consulting firm Capco has undertaken a survey of the leading brokers and major exchanges/clearing houses to identify the most effective ways to reduce costs and increase efficiency in the global exchange traded derivatives markets. The results, first presented at the FIA/FOA Global Leadership Summit in London, point to several areas where immediate effort could achieve significant results.

Please click here for a copy of the survey.

Credit Risk Guidelines for the UK Energy Market (July 2005)

The Power Trading Forum of the FOA, in association with Clifford Chance and Ernst & Young, has published credit risk guidelines. These provide a comprehensive set of recommendations designed to assist organisations engaged in energy market trading to better understand the nature and consequences of credit risk and the primary techniques for measuring and mitigating that risk.

For a copy of the Guidelines click here

PricewaterhouseCoopers/FOA Survey: End Users and Derivatives: Current and Future Trends

In a PricewaterhouseCoopers/FOA survey which was conducted on an informal basis amongst a small number of key market participants and end-users, regulation was agreed by both groups as the single greatest challenge facing the derivatives markets.

For a copy of the Executive Summary/Report click here

Agricultural Reforms and the Use of Market Mechanisms for Risk Management (2005)

New research commissioned by the Futures and Options Association (FOA) and conducted by Cass Business School has found that educating the farming community to utilise derivatives and other risk management products will be fundamental if Europe is to successfully liberalise its agricultural sector.

Click here to download a copy.

Derivatives 2005

The FOA's annual yearbook focuses on the challenges and opportunities facing the industry with guest contributions by and interviews with key figures in the industry on the latest developments that are taking place. Derivatives 2005, the latest in the series, continues to combine a unique insight and reference work for market participants, their customers and others who have an interest in the derivatives industry. Articles include the Trading Environment, the Products, Operations and Support, Technology and Regulation & Compliance, with contributions by and interviews with senior industry figures and opinion-formers. Guest contributors in Derivatives 2005 include Charlie McCreevy, European Commissioner for the Internal Market; Sir John Mogg, Chairman, Ofgem and Hector Sants, Managing Director of Wholesales & Institutional Markets, FSA.

For copies please e-mail Derivatives2005@newsdeskcomms.com.

Risk Management Process: Guidelines for UCITS Managers

The UCITS Amending Directive on investment powers (the "Product Directive"), which has now been implemented in the UK, allows fund managers to use derivatives more liberally, provided they are able to demonstrate that they have adequate procedures and controls in place to monitor and measure "the risk of a scheme's derivative positions and their contribution to the overall risk profile of the scheme".

In order to assist fund managers meet that criterion, the Investment Management Association (IMA), the Depository and Trustee Association (DATA) and the Futures and Options Association (FOA) established a joint working party to draft a set of industry guidelines. In July 2003, following a period of consultation, the guidelines were published and can now be viewed on the websites of the IMA, DATA and the FOA.

The guidelines, while in no way purporting to be conclusive or exhaustive, provide a helpful indication of the kinds of controls and procedures that may be adopted by UCITS managers when dealing in derivatives. In some cases, they will need to be adapted to fit the size of the fund, its investment objectives and policy and it will usually be appropriate for UCITS managers to seek external advice to ensure that the proposed procedures, practices and controls are appropriate to their own particular use of derivatives.

Further information regarding the management of risk associated with the use of derivatives can be obtained from "Managing Derivatives Risk: Guidelines for End Users of Derivatives", an FOA publication which can be accessed below and "Guide to Sound Practices for European Hedge Fund Managers", a publication by the Alternative Investment Management Association Limited, which can be accessed on their website at www.aima.org.

Please click here to download this document.

Managing Derivatives Risk: Guidelines for end-users of derivatives (2002)

This second edition of the original publication has been substantially updated to take account of the impact of technology, industry consolidation and globalisation on firms and institutions operating in the trading environment.

Click here to download the guidelines

Guidelines for the Procurement and Outsourcing of IT Services (2001)

This publication addresses the growing need for guidance on how to adopt a structured approach to sourcing projects, manage the attendant risks and comply with regulatory obligations. The guidelines also provide insight into how to address some of the issues and avoid some of the pitfalls that can prevent a firm from securing maximum benefit from sourcing projects.

Click here to go direct to this publication's home page.

Guidelines for Market Users of the London Metal Exchange (2000)

"Guidelines for Market Users of the London Metal Exchange" is designed to enhance customer awareness of the differences in trading practices on the LME. It sets out a number of practical recommendations which are consistent with best practice in managing risk generally.

Price: Complimentary (subject to postage)
Click here to download the guidelines

FOA 'Update' Newsletter

The FOA publishes 'Update' - an on-line newsletter which is designed to update members on current issues in UK and European regulation, along with information on member services, including fora, workshops, publications and industry training courses. The newsletter is circulated every couple of months. If you would like to receive a copy please contact our Database Administrator.