Course Overview

Manage the entire process to generate a deal with a sound understanding of all costs involved and risks to be covered.

Course Objectives and Takeaways

The course provides the key elements to have a deeper understanding of oil market and related transactions. More specifically, the focus will be set on the following topics:

•  Know the origin of oil and its derivatives
•  Understand oil market and characteristics
•  Assimilate buyer and seller obligations against INCOTERMS 2020
•  Locate products against requirement
•  Negotiate contract terms
•  Elaborate deal budgets

• Understanding of the trading workflow. The students will be able to identify the different steps of a trade from the sign-off of the contract to the delivery of the goods. They should be able to integrate in this analysis the specificities of the different commodities
• Understanding of contracts set-up (incoterms, etc.). The students should be able to link the different documentations to the contract. At the end of the module, they will be able to list the documents used on specific trades as shipping documents. They will be able to identify the right Incoterms according to the trading strategy and the impact of an incoterm choice on trading operations / documentation
• Abilities to identify impacts of contracts set-upon trade operations example.The students, based on trade details, will be able to describe trade operations and identify the pitfalls of a contract. They will be able to identify the coordination requirements/specifities of the trade operations

With over 90% of World’s trade carried by Sea, participants are likely to encounter maritime transportation in the course of their careers whether they will be directly engaged in the process of moving the goods (trading, chartering, operations and etc.) or not (trade-/finance, insurance, legal and etc.). This module will provide a synthetic presentation of key areas related to seaborne transportation. We will look at various technical, commercial, economic and legal concepts and tools that stakeholders need to master to understand, analyze and anticipate for efficient operations

Course Overview

The objective of this 4th module is to familiarise students with trading risk issues and their management/monitoring. The module will consist of identifying, quantifying and managing risks, directly or indirectly related to price risks. At the end of this section, the participants will have developed their capacity to understand the traders’ approach towards risks and opportunities in the commodity trading industry (with a focus on pricing risks) and understand the elements of risk management techniques in commodity trading.

Course Objectives and Takeaways

• Define and identify risks
• Master hedging techniques
• Understand notions such as Position capture and Mark-to-Market within a commodity trading structure
• Be familiar with option contracts and strategies
• Use and understand the different VaR models: parametric, historical and Monte-Carlo simulations

We are living an unprecedented concurrence of intertwined factors that are driving a profound transformation in commodity markets. The path to net-zero and the decarbonisation of the economy, the remapping of geopolitics, and the digitalisation of the industry, are re-shaping the vision and the strategy of the organisations operating in this industry. In this state of flux, where market participants of all sizes are rapidly transforming their business models to make informed decisions ahead of their competitors, the role of data and information technology has become of extreme relevance as it enables the innovation that underpins both revenue generation ideas, and the reduction of costs and operational risk. 

This interdisciplinary course blends core concepts of data, technology, and business strategy from the perspective of a commodities trading corporation. Participants will gain a solid basis of the theoretical foundations and practical applications of data and technology that demystify data science and artificial intelligence. Each module supports the data-driven decision making that nurtures innovation, and is enriched by real-world examples and applications. The interactive presentations will include fireside chats and panel discussions with senior-level guests from the market who will be sharing their insights and bet practice.

Course Overview

Understanding the mechanism of the main banking instruments used for obtaining financing from financial institutions in order to secure payment and performance in trading of commodities on the international market.

Learning Objectives

• Understanding UCP600 and their usage
• Ability to choose the best payment instrument for a trader

Risk Insurance

This course will explore the principles of insurance, the main insurance covers applicable to the trading industry, both from trading company’s and bank’s point of view, along with a comprehensive review of the corresponding risks and the claim handling process.

The course is meant to be interactive and promote transversal learning, capitalizing on the knowledge of the students. The presentations combine theory, a lot of illustrations, practical examples and case studies to facilitate the assimilation of the discussed topics.

Learning Objectives

At the end of the course and the various case studies, the students will have a broad understanding of:

• Physical risks related to the 3 main commodity categories: agri, oil and metals
• The insurance market and market players
• The process of binding an insurance cover
• Credit & Political Risk and Marine Cargo Insurances
• Utilisation of insurance to mitigate risks and optimize financing 

The practice of commodities trading is the process wherein all Commodity products are exchanged to satisfy current demand. Traders engage in it to remove any inefficiency in the market. In the market for commodities, there is always a way to make a profit with managed risk, and this is via arbitrage where traders play with immediate price differentials.

During this module, students will have the opportunity

• To identify new trading opportunities using Business analysis canva
• To test in a simulation environment their concrete understanding of the trading industry: from the management of cash contract, monitoring of portfolio/positions to hedging cash contracts on exchanges.
• To familiarize themselves with real tools of the industry: Data Management Screen, Order Management System, Document templates from the industry.

Information will be presented in the form of use cases, academic research, articles, and whitepapers published by respected scholars and experts in the field, and the actual disclosures of major multi-national companies in the industry, including service providers, consultancy companies…

Rules of the simulation will be communicated in detail at the beginning of the module through the commodities trading simulation Handbook.

Students will have to connect to many platforms and will receive details for this purpose.

This module presents the various financing methods that are available to the commodity trading companies.

The module first deals with the types of financing which are typically used by or available to commodity trading / distribution companies, such as:

• Transactional Trade Finance;
• Inventory Financing – repurchase agreements;
• Borrowing Base;
• Prefinance and Pre-export finance, which are two different types of financing yet having some common features;
• Payment Risk Assumption (“PRA”) & Credit Risk Insurance (“CRI”), two credit risk mitigating tools that share common aspects but also significantly differ.

The module also covers some other types of financing which can be used by commodity trading companies when they reach a certain stage of development and/or are used by other commodity markets participants (E&P players, mine owners,..), namely: 

• Reserve Base Lending (“RBL”);
• Revolving Credit Facility (“RCF”).

Other types of financing which will be covered including Asset Finance, Acquisition Finance, Bridge Loan and Project Finance.

Course Objectives and Takeaways

Objectives of this module are the following:

• give participants an understanding of the various tools/products and methodologies that lenders have developed over the years in order to finance the commodity trading companies, and 
• illustrate how commodity trading companies manage their treasury requirements thanks to such financing tools.

Each type of financing is dealt in a similar manner, i.e. covering the following aspects:

1. Principle & reimbursement sources
2. Parties involved
3. Type of duration
4. Typical risks
5. Securities
6. Challenges for the Lender and the Borrower
7. Advantages for the Lender and the Borrower
8. Nature of the financing
9. Typical structure of the credit facility
10. Legal framework
11. Management – follow up and position keeping.

At the end of the course, the participants will be able to: 

• Understand the specificities of the various financing methods available in order to finance trading companies, some of the technical aspects of such methods, the sources of risks and how to mitigate them.
• Have hints and tips to help choose/decide which type of financing would be the most appropriate depending on the business and related needs of the trading company.
• Be familiar with the specific language of the industry in order to be in a position to exchange with other members of the industry.
• Understand how trading companies manage their treasury requirements thanks to the use of the various financing methods covered

This is organized in two parts:

The first part of the module deals with a typical commodity finance lender’s Credit Analysis.

It presents each step of the credit decision-making process from:

• the initial credit analysis up to
• the final decision made by the credit committee(s).

More specifically, the participants will become familiar with all aspects related to the completion of a credit application file for trade finance transactions / borrowers.

• Company presentation and its purpose in its market: (business profile, identification of added value & strategy, industry analysis, shareholders, board of directors and management assessment)
• Financial analysis, the peculiarities of traders’ financials (Balance Sheet, Profit and Loss, Cash Flow Statement)
• Internal and external methodologies to rate / report / record;
• Term sheet and facility(ies) / transaction analysis;
• Risk analysis, recommendation to and decision from the credit committee(s).

The module also provides hints about the credit process that a trading company is typically going through when granting credit to its client(s) (and/or assuming credit exposure linked to marked to market in relation to its purchases) and how this process compares and/or differs from a lender’s credit process.

The second part of the module deals with Asset Management

It provides background about the importance of asset structuring & integration for a number of (medium to large) trading companies, covering among others:

• the acquisition process as a whole,
• the due diligence process in relation with an asset or a company acquisition,
• the various valuation methodologies and
• the financing tools available, namely (Asset Finance,Acquisition Finance, Bridge Loan, and Project Finance)

The objective of this course is to provide students with an overview of expectations towards corporations active in commodity trading in the area of responsible business conduct. It will examine international standards, with a special focus on business and human rights and what is expected from companies and how it should be implemented in commodity trading. Looking at the latest developments in business and human rights in commodity trading it will provide students with tools to address this increasing concern and to avoid potential adverse impacts of corporations.

Course Objectives:

• Understand expectations towards companies in the area of responsible business conduct
• Understand responsibilities of commodity trading companies in the area of business and human rights
• Analyse challenges in responsible business conduct in commodity trading
• Analyse potential negative human rights impact in commodity trading activity
• Develop proposals for enhancing responsible business conduct in commodity trading

Course Overview

 The objective of module 11 is to give an overview of

i) the various laws and regulations, international and national, which apply to international commodity trading and its many stakeholders, such as the producers, traders, shipping companies, trade finance banks, etc., and

 ii) the legal dispute resolution mechanisms available, including mediation, arbitration or proceedings before the courts.

The regulatory environment dramatically extended during the last years and heavily impacts the daily work of all the individuals active in trade related matters, requiring new knowledge, competences, and additional human and technological resources. 

This course will first review the history and current status of the combat against money laundering, with a particular focus on Trade Based Money Laundering, which will lead us to explore the essential "Know Your Customer" process.

We will also address the recent Swiss and international developments in the fight against corruption. 

Compliance with sanctions has likewise become an essential part of the current regulatory world, with the fragmentation of various conflicts around the world, especially in regions rich in raw materials, and the increasing use of sanctions as foreign policy measures. We will in particular address the extraterritorial effects of the sanctions over international trade, how practitioners handle these matters and the consequences of non-compliance to sanctions.

We will also explore Swiss and other national regulations impacting international commodity trading and we will finish on the various dispute resolutions mechanisms available in the world of trade and trade finance.

Course Objectives and Takeaways

• better understand when and how the fight against financial crime has started and evolved
• be more aware of the importance of various internal processes, such as KYC and compliance with sanctions, and be in a better position to follow them if in place (design them if not), all in their best interest and in the interest of the companies employing the students
• better identify suspicious transactions and be in a position to decline and/or report them
• better convince their clients or counterparties of the usefulness to respect the rules applying to the industry
• understand how disputes may be resolved or avoided

Course Overview

The objective of this module is to familiarise students with trading risk issues and their management/monitoring. The module will consist of identifying, quantifying and managing risks, directly or indirectly related to price risks. At the end of this section, the participants will have developed their capacity to understand the traders’ approach towards risks and opportunities in the commodity trading industry (with a focus on pricing risks) and understand the elements of risk management techniques in commodity trading.

Course Objectives and Takeaways

• Define and identify risks
• Master hedging techniques, including the use of basis for physical trading
• Be familiar with option contracts and strategies
• Use and understand the different VaR models: parametric, historical and Monte-Carlo simulations

Course Overview

This course provides an overview of key concepts, practical cases, and strategic methods used in market intelligence (MI) to help professionals understand, analyze, and leverage data for better decision-making. 

You will learn how to gather data and interpret information from various sources to build a comprehensive understanding of market dynamics, identify trading opportunities, and explore growth potential in commodity flows. 

The development of marketing intelligence strategies to build and sustain a competitive advantage in the marketplace is a key ingredient and differentiator in the success of companies in the commodity space. 

It is important to note that this is not a technical course focused on specific applications, data tools, or software used by MI departments. 

Instead, the course focuses on the strategic processes and high-level concepts of MI and its impact on business operations. 

By learning the fundamentals of MI, professionals who are not part of the MI department will be better equipped to collaborate with MI teams, make more informed decisions, and align their work with broader business strategies. 

The goal is to provide you with the knowledge and skills to use MI insights effectively in your daily work, without requiring specialized knowledge in data analysis or MI tools. 

By the end of the program, you will be able to gain awareness about the importance of MI, applying insights in decision-making and improve cross-departmental collaboration within your organization.