Neil Schofield is the principal of FMT Ltd., a UK-based company offering training services in the areas of treasury, derivatives, capital markets and risk management to financial institutions, central banks and corporations worldwide.
Neil was global head of Financial Markets training at Barclays Capital from 2001 to 2008. He teaches primarily on the rates business, covering all of the major asset classes and their respective derivative products from foreign exchange through to commodities.
Before joining Barclays Capital, he was a director at Chisholm-Roth Training for 4 years, where he was responsible for the provision of training services for a number of blue chip global investment banks. Clients included Citigroup, Deutsche Bank, Goldman Sachs, and JP Morgan Chase.
He started his training career at Chase Manhattan Bank, where he was originally employed as an internal auditor. Over a period of nine years, he conducted numerous internal and external training seminars including the Bank of England and the Federal Reserve System in the USA.
He has also held positions with Security Pacific Hoare Govett (now trading as Bank of America) and Lloyds TSB.
Neil holds a B.Sc. in Economics from Loughborough University and an MBA from Manchester Business School. He was elected as a Fellow of the IFS School of Finance (formerly the Chartered Institute of Bankers) in 1999.
Neil was appointed as a Visiting Fellow at the University of Reading ICMA center in April 2007.
He is the author of the book Commodity Derivatives: Markets and Applications and Trading the Fixed Income, Inflation and Credit Markets both published by Wiley.
He is currently writing two books a co-authored book entitled “Trading inflation: markets, instruments and strategies” and a sole-authored book “Equity derivatives: corporate and institutional and applications”.
About the training
This course does assume an understanding of option principles but can be tailored to include these elements if required. The initial focus is one of valuation where the approach is thorough although more intuitive rather than mathematical. Using an Excel spreadsheet, participants will complete a ‘guided learning’ exercise that investigates the main principles of option valuation. Following on from this the next topic is that of option risk management (‘the Greeks’) where the focus is on defining and interpreting the main measures of options market risk. The analysis also considers why in practice some of the theoretical principles do not hold and how they can be traded. The course concludes with an Excel-based trading simulation where participants manage the market risk parameters of a portfolio of FX options.
Explain the main principles of option valuation. Describe how a change in different market factors influences the value of an option.
Define and interpret the main option Greeks
Explain what is meant by the terms ‘skews’ and ‘smiles’ and how they could be traded
Manage the market risk of a portfolio of options on a simulated basis
Principles of option valuation
Understanding the Greeks - Delta, Gamma, Vega, Theta
Second order Greeks
Volatility term structures
Smiles and skews – what they are and how they could be traded