{"product_id":"the-cme-group-risk-management-handbook-isbn-9780470137710","title":"The CME Group Risk Management Handbook","description":"\u003cp\u003e\u003cb\u003eInvaluable insights on trading today's futures market\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe CME Risk Management Handbook\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eChicago 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 a Director of Clearing Development at CME. John Nyhoff, MBA, is a Director of Financial Research and Development at CME.\u003c\/p\u003e \u003cp\u003eForeword by Leo Melamed ix\u003c\/p\u003e \u003cp\u003ePrologue by Terry Duffy xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003eIntroduction by Craig S. Donohue xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Futures Market Fundamentals 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a Futures Contract? 2\u003c\/p\u003e \u003cp\u003eOverview of Popular Financial Futures Contracts 21\u003c\/p\u003e \u003cp\u003eAnatomy of a Futures Transaction 35\u003c\/p\u003e \u003cp\u003eConclusion 41\u003c\/p\u003e \u003cp\u003eNotes 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Order Entry and Execution Methodologies 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOpen Outcry\/Pit Trading 44\u003c\/p\u003e \u003cp\u003eIntroduction of the CME Globex Platform 46\u003c\/p\u003e \u003cp\u003eTrade Matching Algorithms 50\u003c\/p\u003e \u003cp\u003eAbout Options Markets 69\u003c\/p\u003e \u003cp\u003eEx-Pit Trading 73\u003c\/p\u003e \u003cp\u003eConclusion 78\u003c\/p\u003e \u003cp\u003eNotes 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Role of the Clearinghouse 80\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Safeguards 81\u003c\/p\u003e \u003cp\u003eFinancial Surveillance 89\u003c\/p\u003e \u003cp\u003eDefault by a Clearing Member 91\u003c\/p\u003e \u003cp\u003eResources Backing CME Group Clearing System 95\u003c\/p\u003e \u003cp\u003eCustomer Protection 95\u003c\/p\u003e \u003cp\u003eDisaster Recovery and Business Continuity 96\u003c\/p\u003e \u003cp\u003eRule Enforcement 96\u003c\/p\u003e \u003cp\u003eFinancial and Regulatory Information Sharing 99\u003c\/p\u003e \u003cp\u003eConclusion 100\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Currency Futures: The First Financial Futures 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvolution of Foreign ExchangeMarketplace 101\u003c\/p\u003e \u003cp\u003eOver-the-Counter Currency Trading Vehicles 106\u003c\/p\u003e \u003cp\u003eExchange-Traded Currency Futures and Options 115\u003c\/p\u003e \u003cp\u003eForeign Exchange Market Growth and Trends 130\u003c\/p\u003e \u003cp\u003eConclusion 135\u003c\/p\u003e \u003cp\u003eNotes 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Stock Index Futures: The First Financial Futures 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMechanics of Stock Index Futures 137\u003c\/p\u003e \u003cp\u003eE-Minis versus Exchange-Traded Funds 142\u003c\/p\u003e \u003cp\u003ePricing Stock Index Futures 147\u003c\/p\u003e \u003cp\u003eSpreading Stock Index Futures 152\u003c\/p\u003e \u003cp\u003eHedging with Stock Index Futures 158\u003c\/p\u003e \u003cp\u003ePortable Alpha Strategies 163\u003c\/p\u003e \u003cp\u003eConclusion 167\u003c\/p\u003e \u003cp\u003eNotes 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Eurodollar Futures: Interest Rate Market Building Blocks 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEurodollar Futures Market 169\u003c\/p\u003e \u003cp\u003eSpeculating on Shape of Yield Curve 180\u003c\/p\u003e \u003cp\u003eTerm Treasury\/Eurodollar (TED) Spreads with\u003c\/p\u003e \u003cp\u003eFutures and Options 184\u003c\/p\u003e \u003cp\u003eInterest Rate Swap Market 194\u003c\/p\u003e \u003cp\u003eGrowing Up Together 202\u003c\/p\u003e \u003cp\u003ePricing Relationship 205\u003c\/p\u003e \u003cp\u003eHedging Techniques 208\u003c\/p\u003e \u003cp\u003eConclusion 215\u003c\/p\u003e \u003cp\u003eTechnical Appendix: Complications and Shortcuts\u003c\/p\u003e \u003cp\u003efor Pricing and Hedging Swaps 216\u003c\/p\u003e \u003cp\u003eNotes 229\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Understanding U.S. Treasury Futures 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCoupon-Bearing Treasury Securities 231\u003c\/p\u003e \u003cp\u003eTreasury Futures Delivery Practices 238\u003c\/p\u003e \u003cp\u003eMeasuring Risk of Coupon-Bearing Securities 252\u003c\/p\u003e \u003cp\u003eRisk Management with Treasury Futures 254\u003c\/p\u003e \u003cp\u003eMacro Hedging with Treasury Futures 262\u003c\/p\u003e \u003cp\u003eHedging Corporates with Treasury Futures 266\u003c\/p\u003e \u003cp\u003eTrading the Yield Curve with Treasury Futures 269\u003c\/p\u003e \u003cp\u003eConclusion 276\u003c\/p\u003e \u003cp\u003eNotes 277\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Commodities: Backbone of the Futures Industry 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Are Commodities? 280\u003c\/p\u003e \u003cp\u003eGrain Markets 293\u003c\/p\u003e \u003cp\u003eLivestock Markets 299\u003c\/p\u003e \u003cp\u003eEnergy Products 315\u003c\/p\u003e \u003cp\u003ePrecious Metals 327\u003c\/p\u003e \u003cp\u003eThe Forward Curve 331\u003c\/p\u003e \u003cp\u003eIntermarket Commodity Spreading 342\u003c\/p\u003e \u003cp\u003eClearPort Over-the-Counter Clearing Facility 347\u003c\/p\u003e \u003cp\u003eConclusion 350\u003c\/p\u003e \u003cp\u003eAppendix: Major Commodity Market Specifications 351\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Alternative Investment Market Fundamentals 368\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWeather 369\u003c\/p\u003e \u003cp\u003eResidential Housing Futures 379\u003c\/p\u003e \u003cp\u003eEconomic Indicators 397\u003c\/p\u003e \u003cp\u003eConclusion 399\u003c\/p\u003e \u003cp\u003eNotes 400\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Fundamental Market Indicators 401\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy These Indicators? 402\u003c\/p\u003e \u003cp\u003eTrading Volumes 404\u003c\/p\u003e \u003cp\u003eVolatility: Daily Net Change 407\u003c\/p\u003e \u003cp\u003eVolatility: Daily High-Low Range 408\u003c\/p\u003e \u003cp\u003eConclusions 412\u003c\/p\u003e \u003cp\u003eAppendix: Economic Indicator Descriptions 412\u003c\/p\u003e \u003cp\u003eNotes 414\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Technical Analysis Primer 416\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Technical Analysis? 416\u003c\/p\u003e \u003cp\u003eInterpreting Charts 422\u003c\/p\u003e \u003cp\u003eElliott Wave Theory 443\u003c\/p\u003e \u003cp\u003eIntraday Trading Techniques 455\u003c\/p\u003e \u003cp\u003eTrend-Following Systems 459\u003c\/p\u003e \u003cp\u003eConclusion 471\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Fundamentals of Option Markets 472\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is an Option? 472\u003c\/p\u003e \u003cp\u003eMathematical Option Pricing Models 481\u003c\/p\u003e \u003cp\u003eHistoric and Implied Volatilities 494\u003c\/p\u003e \u003cp\u003eMeasuring Option Performance 504\u003c\/p\u003e \u003cp\u003eConclusion 513\u003c\/p\u003e \u003cp\u003eCHAPTER 13 Option Trading Strategies 515\u003c\/p\u003e \u003cp\u003eOption Spreads 515\u003c\/p\u003e \u003cp\u003eHorizontal Spreads 526\u003c\/p\u003e \u003cp\u003eDiagonal Spreads 532\u003c\/p\u003e \u003cp\u003eComparing Verticals, Horizontals, and Diagonals 537\u003c\/p\u003e \u003cp\u003eWeighted Spreads 538\u003c\/p\u003e \u003cp\u003eVolatility-Driven Strategies 544\u003c\/p\u003e \u003cp\u003eSpecialty Option Strategies 560\u003c\/p\u003e \u003cp\u003eMatching Strategy and Forecast 565\u003c\/p\u003e \u003cp\u003eConclusion 566\u003c\/p\u003e \u003cp\u003eCHAPTER 14 Hedging with Options 568\u003c\/p\u003e \u003cp\u003eBaseline Futures Hedge 568\u003c\/p\u003e \u003cp\u003eBuying Protection with Puts 569\u003c\/p\u003e \u003cp\u003eYield Enhancement with Calls 572\u003c\/p\u003e \u003cp\u003eIn- and Out-of-the-Money Options 575\u003c\/p\u003e \u003cp\u003eMatching Strategy with Forecast 577\u003c\/p\u003e \u003cp\u003eCollar Strategy 578\u003c\/p\u003e \u003cp\u003eDelta-Neutral Hedge 579\u003c\/p\u003e \u003cp\u003eConclusion 581\u003c\/p\u003e \u003cp\u003eAbout the Authors and Contributors 583\u003c\/p\u003e \u003cp\u003eIndex 587\u003c\/p\u003e  \u003cb\u003eJOHN W. LABUSZEWSKI\u003c\/b\u003e is Managing Director of Research and Product Development at CME Group. Labuszewski came to CME from Nikko Securities International, where he was general manager of the asset management division. He had previously worked for Fenchurch Capital Management, Refco, and the Chicago Board of Trade. Labuszewski is coauthor of four previous industry-related texts. He earned an MBA from the University of Illinois.  \u003cp\u003e\u003cb\u003eJOHN E. NYHOFF\u003c\/b\u003e is Director of Financial Research and Product Development at CME Group. He has lectured extensively in the interest rate derivative product area, and has taught financial futures and options and related courses at DePaul University and several other Chicago-area colleges. Nyhoff is coauthor of two industry-related texts: \u003ci\u003eTrading Options on Futures\u003c\/i\u003e and \u003ci\u003eTrading Financial Futures\u003c\/i\u003e (both from Wiley). He holds a master's in financial economics from the University of Rochester, a master's in economics from Northern Illinois University, and a bachelor's degree in economics from DePaul University.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eRICHARD CO\u003c\/b\u003e is Director of Financial Research and Product Development at CME Group. He joined CME in 1999. Dr. Co received a PhD in economics from the University of Chicago in 2000 and is a Chartered Financial Analyst.\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePAUL E. PETERSON\u003c\/b\u003e is Director of Commodity Research and Product Development at CME Group. He joined CME in 1989. Before that, Peterson served as vice president, research, for Brock Associates from 1988 -1989; manager, education and marketing services, for the Chicago Board of Trade from 1986-1988; and manager, market analysis, for the American Farm Bureau Federation from 1983-1986. Peterson holds a PhD in agricultural economics from the University of Illinois and has authored a number of articles in professional journals and business\/trade publications.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCME Group\u003c\/b\u003e is an international marketplace that brings together buyers and sellers on its trading floors and CME Globex around-the-clock electronic trading platform. CME Group operates leading derivatives exchanges including CME, Chicago Board of Trade, and NYMEX, offering futures contracts and options on futures, in diverse product areas including interest rates, stock indexes, foreign exchange, agricultural, energy, and metals.\u003c\/p\u003e  Where futures were once regarded as arcane trading vehicles largely utilized by speculators in search of outsized profits, they are now widely regarded and accepted by institutional and retail traders alike as a legitimate and, more so, essential component of many investment and risk management programs. Futures now cover products as diverse as interest rate, equity, foreign exchange, and commodity markets and have been extended to include somewhat more esoteric items including real estate values, economic indicators, and even weather conditions. These instruments have focused attention and interest on Chicago as the epicenter of futures market developments and innovation, and the CME Group stands out as a leader in this regard.  \u003cp\u003e\u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e provides an overview of the futures market in today's electronic trading world and outlines the various CME Group products, explaining how they can be used to manage risk for both professionals and individuals.\u003c\/p\u003e \u003cp\u003ePrinciple authors John Labuszewski, John Nyhoff, Richard Co, and Paul Peterson are some of the most highly regarded names in futures and options research and risk management. They offer you a primer and reference to the most significant of CME Group products and the applications for which they may be deployed. The book begins with a basic explanation of futures markets, defining futures contracts, methodologies of order entry and execution, and the role of the clearing house. The authors then explain the intricacies of each of the various futures products, including currency futures, stock index futures, Eurodollar futures, and U.S. Treasury futures. In addition, they describe the major commodity markets and some alternative investment market fundamentals.\u003c\/p\u003e \u003cp\u003eThis reliable resource also offers a review of technical analysis, covering Elliott Wave Theory, pattern recognition, empirical analysis, and other essential information. It concludes with a look at options markets, outlining a range of options trading strategies, including hedging with options.\u003c\/p\u003e \u003cp\u003eThe development of futures markets has rapidly accelerated in the past few decades. \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e will provide professionals around the world with an up-to-date, comprehensive reference to today's most popular and widely used risk management products and trading and hedging strategies.\u003c\/p\u003e  \u003cb\u003ePraise for \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e\u003c\/b\u003e  \u003cp\u003e\"Wow! \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e is a 'ten strike' and long overdue. A must-read and reference for the risk management industry!\"\u003cbr\u003e —\u003cb\u003eJack Sandner\u003c\/b\u003e, retired chairman of CME Group, member of the Executive Committee\u003c\/p\u003e \u003cp\u003e\"This is a powerful book for its integration of futures and options markets with an understanding of the whole economy. It is an eye-opener to see how central these markets are to our economic lives.\"\u003cbr\u003e —\u003cb\u003eRobert J. Shiller\u003c\/b\u003e, Okun Professor of Economics, Yale University; Chief Economist, MacroMarkets LLC\u003c\/p\u003e \u003cp\u003e\"Risk management is essential to successful investing, and \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e provides the essentials for understanding risk management. In the wake of the financial turmoil of the last few years, managing risk should be part of any investment program. Among the key elements of risk management are stock index, bond, currency, and commodity futures as well as a growing number of futures, options, swaps, and other financial instruments built on indices tracking housing prices, weather conditions, and the economy. \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e offers a comprehensive guide for using all of these to better manage financial risks.\"\u003cbr\u003e —\u003cb\u003eDavid M. Blitzer\u003c\/b\u003e, \u003cb\u003ePhD,\u003c\/b\u003e Managing Director and Chairman of the Index Committee, S\u0026amp;P Indices\u003c\/p\u003e \u003cp\u003e\"Dare we ignore the advice of a financial institution, the largest of its kind in the world, that navigated the recent financial crisis without the aid of a single TARP dollar or access to the Fed's cheap loans? For CME Group, risk management has meant risk minimization as it enters its 151st year of life and its 85th year of central counterparty clearing without a single trading debt unpaid. It has been, and continues to be, a leader by example.\"\u003cbr\u003e —\u003cb\u003ePhilip McBride Johnson\u003c\/b\u003e, former CFTC chairman\u003c\/p\u003e \u003cp\u003e\"For the first time, a comprehensive handbook outlining the futures market in today's world is available. \u003ci\u003eThe CME Group Risk Management Handbook\u003c\/i\u003e covers futures basics for the novice trader, while the veterans will benefit from an in-depth look at options and hedging. This handbook is a necessity for any professional, investor, or other market participant seeking to manage risk in the perpetually changing futures market.\"\u003cbr\u003e —\u003cb\u003eH. Jack Bouroudjian\u003c\/b\u003e, CEO, Index Futures Group\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990188966117,"sku":"NP9780470137710","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470137710.jpg?v=1761786846","url":"https:\/\/k12savings.com\/products\/the-cme-group-risk-management-handbook-isbn-9780470137710","provider":"K12savings","version":"1.0","type":"link"}