Managing derivatives contracts : a guide to derivatives market structure, contract life cycle, operations, and systems

"I am sure practitioners, auditors, and regulators will find the content of Mr Shaik's book of value. The accessible style is also welcome. All in all, a worthwhile addition to the finance literature and one that hopefully helps plug the knowledge gap in this field." — from the foreword by Professor Moorad Choudhry, Brunel University __Managing Derivatives Contracts__ is a comprehensive and practical treatment of the end-to-end management of the derivatives contract operations, systems, and platforms that support the trading and business of derivative products. This book focuses on the processes and systems in the derivatives contract life cycle that underlie and implement the activities of derivatives trading, pricing, and risk management. Khader Shaik, a Wall Street derivatives platform implementation expert, lays out all the fundamentals needed to understand, conduct, and manage derivatives operations. In particular, he provides both introductory and in-depth treatment of the following topics: derivative product classes; the market structure, mechanics, and players of derivatives markets; types of derivative contracts and life cycle management; derivatives technology platforms, software systems, and protocols; derivatives contracts management; and the new regulatory landscape as shaped by reforms such as Dodd-Frank Title VII and EMIR. __Managing Derivatives Contracts__ focuses on the operational processes and market environment of the derivatives life cycle; it does not address the mathematics or finance of derivatives trading, which are abundantly treated in the standard literature. __Managing Derivatives Contracts__ is divided into four parts. The first part provides a structural overview of the derivatives markets and product classes. The second part examines the roles of derivatives market players, the organization of buy-side and sell-side firms, critical data elements, and the Dodd-Frank reforms. Within the framework of total market flow and straight-through processing as constrained by regulatory compliance, the core of the book details the contract life cycle from origination to expiration for each of the major derivatives product classes, including listed futures and options, cleared and bilateral OTC swaps, and credit derivatives. The final part of the book explores the underlying information technology platform, software systems, and protocols that drive the end-to-end business of derivatives. In particular, it supplies actionable guidelines on how to build a platform using vendor products, in-house development, or a hybrid approach. Front Matter....Pages i-xviii Front Matter....Pages 1-1 The Derivatives Market....Pages 3-20 The Derivative Products....Pages 21-57 Derivatives and Risk Management....Pages 59-82 The Derivatives Contract....Pages 83-102 Front Matter....Pages 103-103 The Market Players....Pages 105-144 The Buy-Side Organization....Pages 145-158 The Sell-Side Organization....Pages 159-170 Market and Reference Data....Pages 171-183 The Dodd-Frank Act and Other Reforms....Pages 185-210 Front Matter....Pages 211-211 The Derivatives Contract Life Cycle....Pages 213-249 Collateral Management....Pages 251-274 Futures Life Cycle....Pages 275-293 Listed Options Life Cycle....Pages 295-309 OTC Cleared Contract Life Cycle....Pages 311-320 OTC Bilateral Contract Life Cycle....Pages 321-338 Credit Contract Life Cycle....Pages 339-351 Front Matter....Pages 353-353 Derivatives and Information Technology....Pages 355-368 IT Platforms and Systems....Pages 369-400 Platform Architecture and Implementation Guidelines....Pages 401-455 Back Matter....Pages 457-470