On behalf of the ACI Slovenia Executive Committee, it is my pleasure to invite you to our webinar, which will be held on Wednesday, 15th December 2021 at 2.30 pm CET time.
The presentation titled ‘2022 Outlook: Risks and Rewards’ will be held by Mohit Kumar, the well-recognized Interest Rate Strategist, who is a Managing Director within the European Interest Rates Strategy Team at Jefferies International Ltd.
After the Q&A session, Rui Correia, Executive Director and Chair of Board of Education at ACI Financial Markets Association will highlight the latest developments in the education of ACI FMA.
Introduction to ALM – ALM responsibilities in a bank, relations to Treasury, market risk and risk controlling, balance sheet optimization and influence of the COVID-19
Internal prices for liquidity risk FTP(LQ), rules and using a in a bank, contingency FTPs, other FTP adjustments and strategy by various influence factors (such as customers’ behavior, sustainability)
Identifying the liquidity risk by using FTP(LQ), profitability calculation from liquidity gaps, liquidity buffer
Managing liquidity risk in a bank:
Methods for mapping the cash-flow of the balance sheet items – replication portfolio for administered products and items without defined maturity
Liquidity gaps and measurement of liquidity risk, minimum liquidity definition
Liquidity curve and liquidity costs/premiums
Cost of funding evaluation by excess of liquidity
Liquidity stress scenarios, customers’ behavior influence and idiosyncratic risks
Regulatory ratios of liquidity risk (LCR, NSFR)
Financial markets products for managing of liquidity risk: money market products (Depo, CD, CP, T-bills, Repo. FX swap), fixed income products (bonds)
2020 was a year of surprises. While we move forward in 2021, the world is simultaneously facing two unseen crisis. First, the need to renew the finances in the public sector. Second, the need to deal with the climate changes, speeding up the transfer to renewable energy sources and transition of the world economy to a more sustainable path.
Merging in terms of strengthening the positions of the domestic market would make sense for many banks given that they are still segmented, whereby a number of small banks do not have economy of scale in order to compete efficiently, and keep, at the same time, the profitability and make the necessary investments in technology.
The European Central Bank remained unaltered the monetary policy at the first meeting in year 2021, after expanding its Pandemic Emergency Purchase Program (PEPP) for another 500 billion Euros and continued it until March 2022. However, the investors see that the central bank is reiterating its effort to adjust the policy as and when needed, leaving the door open for further stimuli, under circumstances of increased infections and new blockages. Given that many analysts project higher instability in the coming months, traders have to ensure to keep up with all the current issues, and thus, the positive impacts from the stimulating package are remain to be seen in the coming period.
While ECB should be in state of rest in the coming months, it shall probably be focused on its recently announced review on strategy for stimulating the openness, strengths and durability of the EU economic and financial system in the years to come. This strategy is intended to provide a leading role to Europe in the global economic management and enable good functioning of the international financial markets and multilateral system based on rules.
Foreign market is a place where the money supply and demand meet denominated in one currency, which is exchanged for money denominated in other currency. Foreign market is not institutionalized. It is a network of all banks, dealers, tradesman, and market makers in the world, who make this market operable almost every day, day and night. The purpose of each participant is the same. Realization of profit.
But, how to become a successful dealer?
Even the best sportsmen miss a penal in their most important matches in their carrier. It is not because these sportsmen do not have the necessary values and abilities, but because their emotional situation has succumbed, because they experience stronger stress and failure fear. Feeling of stress and fear has high impact on the dealers in reaching decisions in foreign trading. Ability to manage the emotional situation, suppressing the fear in him/her, may largely improve the quality of decision making.
Psychology in foreign currency trading is very important. Very often the psychology and not the lack of education or skills is the reason for making errors. Trading psychology provides following the assigned goals, irrespective of the current losses.
Most of the people begin to know the foreign market with technical analysis of the charts, with historic trends of currency pairs. There after there is fundamental analysis, why some currency pairs behaved as they had in the past and how would they behave in the future. The challenge is to find the right combination of tools, which shall provide the dealer with realization of profit.
