INTRODUCTION TO OPERATIONS TRAINING COURSE

JUNE 19-20,2000
The Coleman Center
NEW YORK

PROGRAM AGENDA-DAY 1

7:45 AM Registration and Continental Breakfast

(Location: Lounge 23,23" Floor)

8:40 AM Welcoming Remarks

Rutlt Airtslie, Senior Director of Policy for t l ~ Antericas
e and Media Relatiofis,ISDA
(Location: Room 1. 23rdFloor)

Course Instructor:
David Mengle, J.P. Morgart Securities I~icorporatedarrd Fordltam University Graduate
School of Busiriess

Notice: Please bring a financial calculator to the course (a HPl2C calculator or the equivalent) in order to calculate
present value and discounted cash flow amounts. The instructor will be using a HPlZC and will explain how to
calculate answers to sample problems.

Fundamentals of Interest Rate and Currency Derivatives

1. What are they? How do they work?
2. Why use them?
3. What risks do they manage? What risks do they involve?
4. The yield curve and forward interest and exchange rates.

10:15 Ahl hlorning Break

(Location: Lounge 23, 231d Floor)

10:30 Ah1 Fundamentals of Interest Rate and Currency Derivatives - (Continued)

1:00 Phl Luncheon

(Location: Room 314. ~ 3 Floor)
' ~

2:30 Phl Pricing, Valuing and Unwinding Interest Rate Derivatives

1. Estimating the value o f a swap
2. Estimating the value of an option
3. Unwinding swaps
4. Hedging considerations

3:30 Phl Afternoon Break

(Location: Lounge 23, 23'd Floor)

3:45 PlM Pricing, Valuing and Unwinding Interest Rate Derivatives - (Continued)

I 4:30 Phl Overview of the Structure of a Derivatives Business

5:oo Phl Conclusion - Day l

 INTRODUCTION TO OPERATIONS TRAINING COURSE

JUNE 19-20,2000
The Coleman Center
NEW YORK

P R O G R A M AGENDA-DAY 2

8:15 AM Continental Breakfast

(Location: Lounge 23, ~ 3 Floor)
' ~

8:55 AM Welcoming Remarks

Rosearrne Stanzione, Assistant Director of Policy for tire Americas, ISDA
(Location: Room 1, ~ 3 Floor)
' ~

9:00 AM Responsibilities and Organization of an Operations Department

General discussion of the roles in an operations department and the various approaches to
organizing job functions.
Heidi Coggeslrall, vice President, Swap Operatiorrs, Goldman Saclrs & Co.

9:30 AM Master Agreements

Introduction to ISDA documentation smcture including dealing with new counterparties and
setting up a Master Agreement.
Stephen Baum, Vice President and Senior Associate Counsel, Tlre Chase ManIranan Bank

10:30 AM Morning Break

(Location: Lounge 23, ~ 3 Floor)
' ~

10:45 AM Trade Capture to Confirmations

A step-by-step review of a sample deal ticket including a review of terms, a discussion of the
financial implications of deal ticket errors, transferring the deal ticket information onto the
confirmation and issuing the confirmation.
Mark Bramante, Vice President & Legal Counsel, Fuji Capital Markets Corporation

12:15 PM Luncheon
(Location: Room 314, 231d Floor)

1:15 PM Rate Sets and Settlements

A review of rate sets and settlement calculations and customer notification procedures, including
tracking and implementing changes.
Michael J. Pesce, Assistant Vice President and Manager, US Dollar Products -
Client Services Department, Merrill Lyrrclr Capital Services, Inc.

2:00 PM Credit and Collateral

A discussion of credit risk issues and credit mitigation techniques including collateral
arrangements. Includes a review of different types of collateral.
Mark Jennis, Head of Equities Collateral Management Globally, Morgan Stanley Dean Winer

2:45 PM Afternoon Break

(Location: Lounge 23, ~3~ Floor)
3:00 PM Issues in Derivatives Operations
A discussion of current trends affecting derivatives operations including standards development,
automation initiatives and the impact of e-commerce as well as operational risk hacking in the back
office.
Roseanne Stanzione, Assistant Director of Policy for the Americas, ISDA

4:15 PM Overview of Derivatives Technology

Integrating kont, back and middle office systems and procedures.
Scon Dillman, Director, PricewaterlrouseCoopers
Ian Draclrman, Director, PricewaterlrouseCoopets

5:00 PM Conclusion
 SPEAKER
BIOGRAPHIES

OPERATIONS TRAINING COURSE

JUNE 19-20,2000
The Coleman Center
New York
 RUTH W. AXNSLIE
Senior Director of Policy for the Americas and Media Relations
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

Ruth Ainslie is the Senior Director of Policy for the Americas and Media Relations at the International
Swaps and Derivatives Association, Inc. Her policy responsibilities include policy development and
implementation in North and South America, including oversight of relevant member committees and
working groups. She is also responsible for the association's global press activities.

Prior to joining ISDA in January of this year after 17 years at Bankers Trust Company, Ms. Ainslie, a
managing director and counsel in the Legal Department, had been responsible for various foreign
exchange and derivatives issues and regulatory matters in the U.S. and overseas.

STEPHEN BAUM
Vice President and Senior Associate Counsel
THE CHASE MANHATTAN BANK

Stephen Baum is a Vice President and Senior Associate Counsel at The Chase Manhattan Bank
specializing in derivative products, a position he has held since 1990.

From 1986 until 1990, Mr. Baum was associated with the law firm of Shea & Gould where he
specialized in corporate and securities law. Prior to that, Mr. Baum was on the staff of the U.S.
Securities and Exchange Commission.

Mr. Baum graduated Magna Cum Laude from New York Law School.

MARK BRAMANTE
Vice President & Legal Counsel
FUJI CAPITAL MARKETS CORPORATION

Mark Bramante, Vice President and Legal Counsel at Fuji Capital Markets Corporation ("FCMC"),
formerly of the law firm of Seward & Kissel. Mr. Bramante is the Head of OTC Derivative
Documentation at FCMC and serves as the primary interface with ISDA on confirmation and
operations issues. Mr. Bramante is currently FCMC's representative on the FpML Standards
Committee and the SWIFT Derivatives Market Group.

Mr. Bramante graduated from New York University School of Law in 1988.

HEIDI COCCESHALL
Vice President
COLDMAN, SACHS & CO.

Heidi CoggeshaN joined Goldman Sachs in 1989, having previously worked at Price Waterhouse.
Ms. Coggeshall has, at various times throughout her career, managed Equity Derivative Operations,
Bond Option Operations and Eurobond Operations. Her current responsibilities are to manage the
Swap Operations department globally. There are swap operations personnel in New York, London,
Hong Kong and Tokyo. Ms. Coggeshall currently serves on The ISDA Executive Operations
Committee.

Ms. Coggeshall has an undergraduate degree from Williams College and a Masters in Business
Administration from Harvard.
 scorn DILLMAN
Director
PRICEWATERHOUSECOOPERS

Mr. Dillman is a Director in the Financial Risk Management Practice at PricewaterhouseCoopers

(PwC) in New York. His expertise and consulting experience is in both risk management and
technology.

Mr. Dillman has over 2oyears experience inthe capital markets. Prior to consulting, he managed both
trading and sales teams in fixed income and currency options for top tier banks. In those trading and
sales management capacities Mr. Dillman drove the requirements for the design and implementation
of several market risk management systems.

At PricewaterhouseCoopers, Mr. Dillman has assisted numerous banks and investment banks in the
selection andlor development of market and credit risk management systems.

IAN DRACHMAN
Director
PRICEWATERHOUSECOOPERS

I a n Drachman is a seasoned Technology Manager with over 17 years of financial industry experience
in the management of design and delivery of quality technology strategies, products and services. Mr.
Drachman defined technology strategies and developed system architectures across multiple
businesses and support areas including fixed income, equities, futures, foreign exchange, derivatives,
finance, operations and compliance. His strengths include relationship building, strategy
development, people and process management, program management, project management. Mr.
Drachman has evaluated and successfully implemented and deployed new technologies consistently
on a global basis for investment banks and other financial services firms.

MARK JENNIS
Head of Equities Collateral Management Globally
MORGAN STANLEY DEAN W T T E R

Mark Jennis is Head of Equities Collateral Management Globally at Morgan Stanley Dean Witter
where he is responsible for supporting
.. - the Prime Brokerage,
- Private Wealth Management and
Institutional Equities businesses.

Prior to Morgan Stanley Dean Winer, Mr. Jennis was a managing director at Bankers Trust
responsible for collateral and credit management for BT's Derivative, FX, Emerging Market and Repo
and Stock Lending Businesses, an internal consultant at Morgan Stanley Dean Winer working on a
number of productivity projects for the Repo, Government and Money Market trading and operations
areas, a project and operations manager at Citibank responsible for building a global trading
processing system, and a management information consultant at Arthur Andersen.

Mr. Jennis holds an MBA in Computers and Information Systems from New York University and a
BA in Economics from Brandeis University.
 DAVID L. MENCLE
J.P. MORGAN SECURITIES INC.
FORDHAM UNIVERSITY GRADUATE SCHOOL OF BUSINESS

F avid &fengleis a Vice President in the Markets Support Group of J.P. Morgan Securities Inc. in New
York. He also teaches courses in bank management and managerial economics at the Fordham
University Graduate School of Business. Mr. Mengle sewed as editor and primary contributor to The
J.P. Morgan! Arthur Andersen Guide to Corporate Risk Management, published by Risk Magazine in
1997. In addition, he conducts seminars on risk management for the Financial Stability Institute in
Basel, Switzerland.

Prior to joining J.P. Morgan Securities Inc. in 1991, Mr. Mengle was a research economist with the
~ederal'~esew Bank
e of Richmond, specializing in bank regulation.

Mr. Mengle holds a BA from The Citadel and a Ph.D. in economics from the University of California,
Los Angeles.

MICHAEL J. PESCE
Assistant Vice President
MERRILL LYNCH CAPITAL SERVICES, INC.

Michael Pesce is Assistant Vice President of Client Services in the Debt Derivative Operations group
at Menill Lynch Capital Services, Inc. He specializes in settlements of debt derivative dollar
products. Mr. Pesce has held this position since June 1999.

From May 1998 to June 1999,Mr. Pesce worked with over the counter derivatives at Barclays Capital
as the reset manager. He began his career with Chase Manhattan Bank in October 1992, holding
various positions within different areas of the organization, including Global Investor Services, IT&O
Management Development Program and in the capital MarketslGlobal Derivatives group.

ROSEANNE STANZIONE
Assistant Director of Policy for the Americas
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, LNC.

RoseanneS~anzionejoined ISDA's North America policy group in September of 1999 and has
assumed responsibilities for a variety of activities within the Operations, Tax and Market Practice
Committee areas.

Before joining ISDA, Ms. Stanzione was a vice president in Derivative Operations at Bankers Trust
Company and Deutsche Bank. While at Bankers Trust Company, she lead a multi-disciplinary
practice group that developed global documentation and operations processing strategies as well as
databases to assess operational risks for the bank's derivatives business.

Ms. Stanzione has a degree in Philosophy from the University of Montana.

 :. Delegate
List
Introduction to Operations
Training Course

June 19-20,2000
The Coleman Center
New York
 Michelle DePool Craig Parker Conley
ABN AMRO AIG International

a John Stavreu
AIG International
Simon Plate1
AIG International Inc

Angela Yin Loren Remetta

ANZ Banking Group Ltd., New York Ambac

Calogero Di Gangi Robert Burton

Banca Commerciale Italiana Banca Commerciale Italiana, N.Y. Branch

Julio Cezar Tozzo M. Pereira Edesio Antonio De Arauso

Banco Do Brasil S.A. Banco Do Brasil S.A.

Mauro Borges Loch Thomas Fontaine

Banco Do Brasil S.A. Bank Julius Baer (New York)

Cynthia Chase-Kofkin Patrick O'Keefe

Bank One, NA Bank of Tokyo-Mitsubishi, Ltd

Kara B. Haughton Willie Santacreu

Bear. Steams & Co. Inc Bear. Steams & Co. Inc

Joseph R. Meierer Paul J. Sullivan

Centura Bank Chase Securities Inc

April Rider Maria delia Hojilla

Commerce Capital Markets Commerzbank AG

Paul T. Saponaro Lisa Giglio Connor

Conectiv Davis Polk 8: Wardwell

Pamela Amsten Michele Babkine

Davis Polk & Wardwell Davis Polk & Wardwell

Stacy S. Long Alice Yu

Derivatives Net Inc Derivatives Net Inc.

Clara P. Carrington Catherine N. Avary

Enron North America Ericsson Treasury Services US Inc.
 Walter Hill Debra Wong
Fannie Mae Federal Home Loan ~ a n bf
k ~oston

Lisa Stew.art
Ford Motor Company
Vikki Rohrer
Ford Motor Credit Company

Michelle Patacsil Hiroko Miyagi

Goldman Sachs & Co. Goldman Sachs & Co.

Catherine Gleason Jorge Turnellas

Goldman Sachs & Co.. Inc. HSBC Bank USA

Christina Parallada Molly Mboijana

International Finance Corporation International Finance Corporation

Mona Vyas Stella F. Gonzalez

International Finance Corporation International Finance Corporation

Marc Rodriguez Reynard Richards

J.P. ~ o r ~ a ; J.P. Morgan
a James Monagle Marc Zindle
J.P. Morgan J.P. Morgan

Nathan Parker Edward Chen

J.P. Morgan J.P. Morgan

John Barlowe Nicole Frew

Lehman Brothers McMillan Binch

Helen Remeza Ken Rozycki

Moody's Investors Senrice, Inc. Morgan Stanley Dean Witter

Suzie R. Dindyal Jaqueline Taveras

Morgan Stanley Dean Witter 8r Co NatWest

Kyle McKaye Olga Mikhnenko

.atwest GFM Natexis Banque

Teresa Pace Carl Zoccali

National Bank of Canada Nomura Securities International, Inc
 Murray C. Pozmanter Erin Langford.
Nomura Securities International. Inc PIMCO

Kenneth Koo Kimberley Dall

PIMCO PIMCO

Ron Canent Sapna Singh

Pacific Life Insurance Company Pacific Life Insurance Company

Charles Nelson Debbie Donatelli

Sanwa Bank Limited Sanwa Financial Products

Mark Cardale Deborah Schermerhom

Slaughter and May The World Bank

Helena Coates Jennifer Potestio

Toronto Dominion Bank UBS Warburg

Salvatore Femia Elizabeth Melillo

WestLB WestLB

a Carlos Rijo Tracy Lam

Westdeutsche Landesbank, New York Branch Westdeutsche Landesbank, New York Branch

Yuka Y. hlackay
World Bank Group