Graduate Trading Programme

Keith Jones, Director of Training: 2 years Back Office German Investment Bank, 1 year trade support CSFB. 14 years experience of screen trading futures within the OSTC company. Kieth Duffy-Penny, Director of Training: 12 years of open outcry LIFFE floor trading and 14 years experience of screen trading futures within the OSTC company. Kondor 2005

OSTC is a global derivatives training company set up in 1999 13 Offices worldwide Over 450 traders

OSTC Values High Performing We want our people always to be able to perform to their maximum and fulfil their potential Dynamic We want to be agile – able to see opportunities and to take advantage of them in a way that benefits us all. Committed We expect a lot of ourselves and we expect the same commitment from all of the people at OSTC.

OSTC Values Disciplined We value strict discipline. It enables all of us to operate within clear boundaries and minimises our risk Respectful We respect the views and opinions of all our people. We listen. Passionate We care about every detail that affects our business and we are driven to be the best at everything we do.

Our expectations of YOU Highly Driven, Highly Disciplined First year on the job training Learning the art of spread training Ask, ask, ask Commitment OSTC model – High volume, low risk Work hard, you’re investing in your future. The more time and effort you dedicate into making a success out of it the greater the rewards. Give your best and be the best that you can be. There are no silly questions, only the one’s you don’t ask. This not about your peers it’s about you, we are here to help!!!!!!!!!!!! Main edge is in low costs, allowing greater closeness to markets than competitors

DISCIPLINE Two basic rules about winning on trading: If you don’t trade, you can’t make money If you lose all your money, you can’t trade Laurence Hite is a hedge-fund manager and one of the forefathers of system trading. He Co-founded ‘Mint Investments’ in 1981. By 1990 ‘Mint’ had become one of the largest commodity trading advisors in the world in terms of assets under management.

Training Schedule Week 1 & 2 Theory Based classroom training with on- going assessments. Practical examples and live screen trading for the group on a trading simulator Week 3 to 7 Trading live market prices in a simulated environment. Week 8 onwards Individually trade live markets, with the company’s capital. We’ll tailor this to meet different requirements and speed of uptake.

What markets do we trade? Around 25% of our market trading is in the short term interest rate markets (STIRs). The other 75% traded are commodities (Gas Oil, Brent Crude, Natural Gas, Light Sweet Crude) and other financial derivatives (FX and equity futures) All markets are electronically traded, i.e. no telephone trading or brokerage. Recently started trading cash markets, e.g. Cash Bonds These numbers vary greatly between offices. e.g. Brighton trade 90% of their volume in STIR products

What is a future? Text book definition of an exchange traded future. “Legally binding agreements of a standardised product at an agreed price for either physical or cash delivery at a pre-determined date in the future” Cash vs Physical delivery. What does this mean? Expiry date. Why is it so important? Liquidity changes Physical delivery Trading behaviour changes as big players roll their positions Futures are derivatives, meaning that they derive their value from an underlying asset, like a commodity such as oil, or a financial asset such as a bond, stock index or interest rate. A spread is simply the difference between 2 expiries created by buying 1 and selling another or vice versa

Electronic vs OTC (Over the counter) OSTC currently trades predominantly exchange traded products. Why? Central counterparty risk Lower margins, due to lower credit risk Spreads and outrights Futures are derivatives, meaning that they derive their value from an underlying asset, like a commodity such as oil, or a financial asset such as a bond, stock index or interest rate. A spread is simply the difference between 2 expiries created by buying 1 and selling another or vice versa

Market Terminology Bid Bullish Butterfly Clip Combo/Double Fly Flat Hedge Mnemonic Scratch Spread Backwardation: Future price is lower in the distant delivery months than in the nearer months. Spreads positive rather than negative

Month Codes January = F February = G March = H April = J May = K June = M July = N August = Q September = U October = V November = X December = Z Important especially for CQG