Fundamentals of Value-at-Risk (VaR) and Energy Trading Books--A Non-Technical Guide for Executives, Traders, Auditors, Attorneys & Support Staff

• "Fundamentals of Energy Trading Books" In this lesson, you will learn: 1) What the different types of accounting books are, and how they relate to energy trading books; 2) Why energy trading books are necessary, and how they are used; 3) How to create and maintain the different components of energy trading books, and what the different book structures are; 4) What the difference is between mark-to-market, accrual and profit & loss accounting; 5) What the difference is between recognized and forward book income; 6) How trading books connect the actions of traders with the reporting, accounting and control functions of a company; 7) What the structure and function is of position and mark-to-market reports; 8) How to handle reconciliation issues and inter-book transactions, and why these issues are important; 9) The role of blotters, trade recaps and value-at-risk (VaR); and 10) How asset related transactions such as storage and transportation deals are addressed by energy trading books.

• "Fundamentals of Value-at-Risk" In this lesson, you will learn: 1) What value-at-risk, or VaR, is; 2) Why value-at-risk is the risk measurement method of choice at most energy trading firms, and how value-at-risk is used; 3) How trading risks are separated into VaR risk buckets, and how to prepare, calculate and use a cross-correlation table; 4) How to calculate the appropriate volatilities needed for VaR computation; 5) The methodologies behind the "variance-covariance", "historical simulation" and "Monte Carlo" VaR calculation methods, and what the advantages and disadvantages are for each of these three methods; 6) The impact that volatility, correlation and shape of curve assumptions have on VaR calculation; 7) How to calculate and use both correlated and uncorrelated VaR; and 8) The pitfalls and assumptions to be aware of when using value-at-risk.

The price for this comprehensive two-day seminar is $895 (USD).

Register online or call (843) 212-4038.

• Government and university employees receive a 10% discount (check the box when you register).
• Register 4 or more attendees and receive 20% off. Special pricing is available for groups of 5 or more. Call (843) 212-4038 for assistance.

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees are charged at the time of registration unless other arrangements have been made. Checks payable to “PGS Energy Training,” 26 Teal Lane, Hilton Head Island, SC 29926. Cancellations result in a credit good for 2 years, transferable to a colleague. Substitutions may be made at any time. For more on PGS policies, contact our offices at (843) 212-4038.

This live group seminar is eligible for 6.0 CPE credits in Specialized Knowledge. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accepts one-half credits.

PGS is a NASBA-registered CPE sponsor and a GARP-approved CPD provider, so see accreditation details.