Course Overview
This course provides a practical framework for understanding how energy and power markets are organized, priced and cleared. Participants will learn where commercial exposure originates in crude oil, natural gas, LNG and power; how that exposure moves from physical and bilateral markets into cleared futures; how reference prices are established; what drives basis risk; and the roles exchanges and clearinghouses play in managing these exposures.
Course Pricing
Non-Member Rate: $250
FIA Member Rate: $225
Enroll Below
Course Detail
Day 1 topics include fixed-price and index-linked contracts; spot, forward, and futures settlement prices; contango and backwardation; and the role of basis and its underlying physical drivers. Participants will also explore where important reference prices originate, including price reporting agencies, exchange settlements, and grid-operators.
Day 2 connects physical and bilateral markets to cleared derivatives. Participants will examine the roles of designated contract markets, derivatives clearing organizations, and futures brokers, execution channels including central limit order books and privately negotiated transactions, as well as novation, initial and variation margin, and final settlement.
The course then follows the customer's journey from identifying a physical exposure and selecting an appropriate reference price through establishing broker access, executing a transaction, and supporting and reconciling the resulting position.
Real-world market events including the 2022 natural gas price shock, the January 2026 cold-snap spike, disruption in the Strait of Hormuz as it affected LNG references, and Winter Storm Uri show how these concepts apply to actual market events and consider which exposures were covered by existing contracts and which remained.
Learning Outcomes
By the end of the course, participants will be able to:
- Explain how commercial price exposure arises in crude oil, natural gas, LNG, and power markets and identify the market participants that carry that risk.
- Distinguish between fixed-price and index-linked contracts and identify the exposures each can leave in place.
- Differentiate among spot, forward, and futures settlement prices and identify the principal sources of reference prices in energy and power markets.
- Explain basis and identify the physical factors that can cause it to change across different energy markets.
- Describe the respective roles of the exchange, clearinghouse, and FCM and explain what central clearing changes in the management of counterparty risk.
- Identify the execution channels available to commercial market participants and describe how a physical exposure can become a supported cleared position.
- Apply the course framework to real market events to assess what risks a particular contract or hedge addressed and what exposures remained.
Who Should Attend?
This course is designed for professionals who want a stronger working understanding of energy and power markets and their connection to the cleared derivatives industry. It is appropriate for participants with a range of professional backgrounds including trading and risk management, operations, technology and compliance at brokerage firms, exchanges, clearinghouses, vendors and commercial energy firms. No prior energy market expertise is required.
Duration and Format: This virtual instructor-led workshop is delivered in 90-minute sessions on two consecutive dates.
Registration Options
Non-Member Rate: $250 (After Oct 9: $295)
FIA Member Rate: $225 (After Oct 9: $250)
📍 Location: Virtual Workshop. 90-minute sessions on 2 consecutive days.
👥 Class Size: Limited to approximately 25 participants to promote student participation and interaction.
