Nasdaq Dubai Academy will deliver two training courses on equity derivatives in March, in conjunction with London-based training company 7city Learning.

The one-day courses will support the growing regional interest in trading equity derivatives, including those listed on Nasdaq Dubai’s market.

The Fundamentals of Trading Equity Derivatives course on March 17 provides an introduction to futures and options as well as margining and the concept of fair value. It includes a case study of how to hedge risk, one of the primary uses of derivatives.

Exotics, Strategies, Greeks and Managing Option Risk in a Trading Book on March 18 is an advanced course that looks at tools for calculating risk positions and composite derivatives strategies. It examines volatility and the Black-Scholes option pricing model.

The first course is aimed at anyone seeking a basic understanding of derivatives, and the second at industry professionals only.

“The rapid expansion of Nasdaq Dubai’s equity derivatives market in 2009 demonstrates that investor interest in this important sector is increasing in the region. The Academy’s courses will help to meet the rising demand for expert training in how to use these sophisticated risk management and investment tools,” said Jeff Singer, chief executive of Nasdaq Dubai.

Following the launch of Nasdaq Dubai’s equity derivatives market in November 2008, trading reached 125,000 contracts in 2009, with 73 per cent of the volume in the second half of the year as the market expanded. The market consists of futures listed on 21 individual UAE companies and on the FTSE Nasdaq Dubai UAE 20 share index, which rose 48 per cent in 2009.

“Based on case studies and interactive exercises, our tailored courses are designed to demonstrate how these complex financial instruments work in practice and ensure learning in the classroom translates to life on the desk,” added Paul Shaw, chief executive of 7city.-TradeArabia News Service