IM2 · Commodity Instrument Engineering

Commodity Forwards

Fix the price. Shape the curve. Own the exposure.

Master the commodity forward as an instrument family: fixed, floating, index and basis forwards, average-price and shaped structures, strips, physical versus financial settlement, FX-linked and multi-currency forms, confirmation architecture, valuation, position and the ETRM object model.

Fixed & floating · Basis · Strips & shapes · Averaging · FX-linked · Confirmations · ETRM

Enrol or enquire See the 100 chapters

100 chapters · 10 modules · multi-commodity · one continuous instrument estate

How it is built

Design it, book it, value it, risk it, operate it, implement it

100 chapters does not mean 100 definitions. This programme follows the academy's standard ten-module architecture, so the instrument is taken from first principles through to a working CTRM representation, using the same structure as every other programme in the academy.

Worked cases run on NorthStar Global Commodities, a fictional instrument book created for teaching. It does not describe any real firm, person or transaction.

Curriculum

10 modules · 100 chapters

M0 Forward Instrument Foundations Ch 1-10 · 10 chapters
  1. What a Commodity Forward Actually Is
  2. Forward vs Spot vs Future vs Swap
  3. Physical Forward vs Financial Forward
  4. Fixed-Price Forward Economics
  5. Commodity Forward Instrument Hierarchy
  6. Trade Date, Value Date and Delivery Period
  7. Forward Quantity, Notional and Units
  8. Long and Short Forward Positions
  9. Forward Lifecycle from Execution to Settlement
  10. NorthStar Multi-Commodity Forward Portfolio
M1 Forward Structures & Market Conventions Ch 11-20 · 10 chapters
  1. Outright Commodity Forwards
  2. Floating-Price Forwards
  3. Index-Linked Forward Contracts
  4. Basis Forwards
  5. Differential and Premium Forwards
  6. Average-Price Forwards
  7. Strip Forwards
  8. Shaped and Profiled Forwards
  9. Accreting and Amortising Forward Quantities
  10. Multi-Leg Forward Structures
M2 Commodity-Specific Forward Markets Ch 21-30 · 10 chapters
  1. European Natural Gas Forwards
  2. North American Natural Gas Forwards
  3. Crude Oil Forward Contracts
  4. Refined Product Forwards
  5. LNG Forward Contracts
  6. Power Forward Contracts
  7. Metals Forwards
  8. Agriculture and Soft Commodity Forwards
  9. Environmental Commodity Forwards
  10. Freight and Shipping Forwards
M3 Forward Pricing & Curve Construction Ch 31-40 · 10 chapters
  1. Spot–Forward Relationship
  2. Cost-of-Carry Forward Pricing
  3. Convenience Yield
  4. Forward Curve Construction from Market Quotes
  5. Interpolation Between Forward Nodes
  6. Extrapolation Beyond Liquid Tenors
  7. Seasonal Forward Curves
  8. Contango and Backwardation
  9. Basis Curve Construction
  10. Multi-Currency Forward Valuation Inputs
M4 Forward Valuation & Mark-to-Market Ch 41-50 · 10 chapters
  1. Valuing a Fixed-Price Commodity Forward
  2. Physical Forward Valuation
  3. Financially Settled Forward Valuation
  4. Valuation of Partially Fixed Forwards
  5. Average-Price Forward Valuation
  6. Basis Forward Valuation
  7. Shaped Forward Valuation
  8. Long-Dated Forward Valuation
  9. Fair-Value Hierarchy for Forward Inputs
  10. Forward Valuation Reconciliation Lab
M5 Position, P\&L & Forward Exposure Ch 51-60 · 10 chapters
  1. Forward Position Construction
  2. Forward Curve Bucket Exposure
  3. Daily Forward P\&L
  4. Curve-Movement P\&L Explain
  5. Basis P\&L Explain
  6. FX P\&L on Commodity Forwards
  7. New-Deal P\&L
  8. Amendment and Cancellation P\&L
  9. Carry, Roll and Time Effects
  10. Complete Forward P\&L Explain
M6 Market Risk & Hedging of Forwards Ch 61-70 · 10 chapters
  1. Forward Delta
  2. Curve Risk Across Tenors
  3. Basis Risk
  4. Cross-Commodity Risk
  5. Forward VaR
  6. Stress Testing Forward Books
  7. Hedging Forwards with Futures
  8. Hedging Forwards with Swaps
  9. Hedge Ratio and Minimum-Variance Concepts
  10. Forward Portfolio Risk Dashboard
M7 Credit, Collateral & Pre-Trade Controls Ch 71-80 · 10 chapters
  1. Counterparty Exposure on Commodity Forwards
  2. Netting Forward Transactions
  3. Potential Future Exposure of Forwards
  4. Collateral and Margin for Bilateral Forwards
  5. Cleared Forward-Like Instruments
  6. Settlement Exposure at Forward Maturity
  7. Wrong-Way Risk in Commodity Forwards
  8. Credit Limits for Forward Trading
  9. Pre-Trade Forward Eligibility Controls
  10. Forward Credit Stress Case
M8 Lifecycle, Operations, Settlement & Accounting Ch 81-90 · 10 chapters
  1. Forward Confirmation Process
  2. Fixing Events
  3. Physical Forward Delivery
  4. Cash Settlement of Financial Forwards
  5. Forward Amendments and Novations
  6. Early Termination of Forwards
  7. Forward Accounting Fundamentals
  8. Hedge Accounting Considerations
  9. Forward Regulatory Reporting and Controls
  10. Month-End Forward Control Process
M9 CTRM/ETRM Engineering & Capstone Ch 91-100 · 10 chapters
  1. Canonical Forward Trade Data Model
  2. Forward Curve Data Model
  3. Forward Valuation Service
  4. Position and P\&L Engine for Forwards
  5. Forward Risk Engine Architecture
  6. Forward Credit Engine Integration
  7. Forward Lifecycle Event Architecture
  8. Complex Multi-Commodity Forward Case
  9. Tier-1 Forward Implementation Lab
  10. NorthStar Commodity Forward Capstone
How it is delivered

Three ways to take Commodity Forwards

Self-paced is a document-and-media programme with lifetime access - no live sessions. Cohort and enterprise add live instructor-led training. Mentorship is not offered in any tier.
Feature Self-paced Cohort Enterprise
Format Written chapters, video explainers and podcasts Everything in self-paced, plus scheduled live sessions Everything in cohort, delivered privately to your team
Live sessions None Scheduled, instructor-led Scheduled, instructor-led, private
Mentorship Not offered Not offered Not offered
Access Lifetime Lifetime Lifetime for every enrolled seat
Pace Entirely your own Guided schedule with a peer group Agreed with your desk
Tailoring Fixed curriculum Fixed curriculum Sequenced to your markets, systems and governance
Best for Individuals learning around a job Individuals who want structure and deadlines Desks building the same capability together
For individuals

Get the programme guide

The full chapter list, what each module covers, and how the tiers compare - sent to your inbox as a PDF.

For teams

Run this for my desk

Private delivery for your desk, sequenced to your markets and systems. Tell us the team and we will scope it.

Run this for my desk

Bring this to your desk

Download the full curriculum, or talk to us about running it for a team.

Enrol or enquire See the whole academy