The CME Group Risk Management Handbook: Products and Applications

Invaluable insights on trading today′s futures market
The CME Risk Management Handbook provides an accessible overview of the futures market in today′s electronic world of trading. Page by page, it outlines the various CME products currently available and explains how those products can be used to manage risk. Financial professionals around the world will find this book to be a comprehensive reference to the most widely used risk management, trading, and hedging strategies. Editors John Labuszewski and John Nyhoff–two of the most highly–regarded names in futures and options research and risk management–put this discipline in perspective and offer readers invaluable insights into successfully operating within this environment.
Chicago Mercantile Exchange Inc. is an international marketplace that brings together buyers and sellers on its trading floors and GLOBEX® around–the–clock electronic trading platform. CME offers futures contracts and options on futures, primarily in four product areas: interest rates, stock indexes, foreign exchange, and commodities. John W. Labuszewski, MBA, is Managing Director of Research & Product Development at CME. John Nyhoff, MBA, is a Director of Financial Research and Development at CME.

Spis treści:
Foreword (Leo Melamed).
Preface.
Introduction (Craig Donohue).
Chapter 1 Futures Market Fundamentals.
What is a Futures Contract?
Overview of Popular Financial Futures Contracts.
Anatomy of a Futures Transaction.
Conclusion.
Notes.
Chapter 2 Order Entry and Execution Methodologies.
Open Outcry or Pit Trading.
Introduction of the CME Globex Platform.
Trade Matching Algorithms.
About Options Markets.
Ex–Pit Trading.
Conclusion.
Notes.
Chapter 3 Role of the Clearing House.
Financial Safeguards.
Financial Surveillance.
Default by a Clearing Member.
Resources Backing CME Grou p Clearing System.
Disaster Recovery and Business Continuity.
Rule Enforcement.
Financial and Regulatory Information Sharing.
Conclusion.
Notes.
Chapter 4 Currency Futures Fundamentals.
Evolution of FX Marketplace.
Bretton Woods.
Over–the–Counter Currency Trading Vehicles.
Exchange–Traded Currency Futures and Options.
FX Market Growth and Trends.
Conclusion.
Notes.
Chapter 5 Stock Index Futures Fundamentals.
Mechanics of Stock Index Futures.
E–Minis vs. Exchange–Traded–Funds (ETFs).
Pricing Stock Index Futures.
Spreading Stock Index Futures.
Hedging with Stock Index Futures.
Portable Alpha Strategies.
Conclusion.
Notes.
Chapter 6 Eurodollar Futures Interest Market Building Blocks.
Eurodollar Futures Market.
Speculating on Shape of Yield Curve.
Term TED Spreads with Futures and Options.
Interest Rate Swap Market.
Growing Up Together.
Pricing Relationship.
Hedging Techniques.
Matching Changing Values.
Conclusion.
Technical Appendix: Complications and Shortcuts for Pricing and Hedging Swaps.
Notes.
Chapter 7 Understanding U.S. Treasury Futures.
Coupon–Bearing Treasury Securities.
Treasury Futures Delivery Practices.
Basis.
Measuring Risk of Coupon Bearing Securities.
Risk Management with Treasury Futures.
Macro Hedging with Treasury Futures.
Trading the Yield Curve with Treasury Futures.
Conclusion.
Notes.
Chapter 8 Commodity Market Fundamentals.
What Are Commodities?
Grain Markets.
The Forward Curve.
Inter–Market Commodity Spreading.
ClearPort OTC Clearing Facility.
Conclusion.
Appendix: Major Commodity Market Specifications.
Chapter 9 Alternative Investment Market fundamentals.
Weather.
Residential Housing Futures.
Economic Indicators.
Conclusion.
Notes.
Chapter 10 Fundamental Market Indicators.Why These Indicators?
Trading Volumes.
Volatility: Daily Net Change.
Conclusions.
Appendix: Economic Indicator Descriptions.
Notes.
Chapter 11 Technical Analysis Primer.
Why Technical Analysis?
Elliot Wave Theory.
Intra‑Day Trading Techniques.
Trend Following Systems.
Moving Averages.
Conclusion.
Chapter 12 Fundamentals of Option Markets.
What is an Option?
Conclusion.
Chapter 13 Option Trading Strategies.
Option Spreads.
Horizontal Spreads.
Weighted Spreads.
Specialty Option Strategies.
Conclusion.
Chapter 14 Hedging with Options.
Baseline Futures Hedge.
Buying Protection with Puts.
Yield Enhancement with Calls.
In– and Out–of–the–Money Options.
Matching Strategy with Forecast.
Collar Strategy.
Delta Neutral Hedge.
Conclusion.
About the Authors and Contributors.
Index.