Financial Markets and Instruments (FMI)

Source details

Expected background: advanced degree in economics or finance or equivalent work experience.
Technical skills required: heavy use of Microsoft Excel spreadsheets; participants are expected to be proficient.
Recommended prior training: strongly recommended that applicants first complete the online Financial Market Analysis (FMAx) course.
Participant deliverable: participants are expected to prepare final presentations on a set of predetermined current financial market issues.
Application note: due to the transition to a new IMF course registration system, formal applications cannot be submitted at this time; interested participants should submit their details to be notified when applications open.

Foundation beyond standard bond and equity treatment covered in the FMAx course, starting with a short review.
Instruments covered: forwards, futures, swaps, and options, and combinations of these building-block instruments with practical applications.
Teaching approach: lectures introduce underlying theory; workshops and case studies allow application and testing of understanding of strategies.
Policy focus: time devoted to policy implications, notably related to regulation of financial markets; separate course on financial sector policies is recommended for those seeking deeper coverage.
Risk and misuse: course highlights misuse of financial instruments, which can lead to large losses and financial instability.

Upon completion of the course, participants should be able to:

Explain the economic rationale for various financial instruments and markets.
Identify and use the building blocks presented in the course to construct financial instruments.
Use basic pricing models to identify possible mispricing and misuse of financial instruments.
Identify threats to financial stability in markets and instruments based on case studies of previous financial crises.
Extract lessons from previous financial stability threats to try to prevent their recurrence.