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Investors
➢ Institutional, Retail
Securities market intermediaries
➢ Brokers, Prime brokerage, Dealers, Intermediaries,
Banks
➢ Custodians, Trustees, Industry support organisations, Depositories, Regulators
HOW THE FINANCIAL MARKETS WORK
An introduction to the different capital markets products and instruments
➢ Analysis of different asset classes
How different securities/assets are issued and why:
➢ Bonds, Commodities, Currencies, Derivatives, Equities, Funds, Trusts
Types of 'hybrid' instruments - convertibles, warrants and other structured products
➢ Futures and options, OTC Vs exchange traded derivatives, Credit derivatives
OPERATIONS & SECURITIES MANAGEMENT
Managing and developing the operations structure
➢ Role of operations teams in securities
➢ Relationship with front and middle office
➢ Key challenges in the operations environment
Securities Clearing & Settlement
➢ Principles of securities settlement
➢ Demystifying the jargon
➢ G30, IOSCO and ISSA directives
➢ Describing the steps in a typical trade cycle
➢ Industry initiatives driving change in the market
The role of the exchanges and clearing houses
➢ What is the role of exchanges
➢ What is the role and function of the clearing house
➢ Assessing the impact of the consolidation of exchanges and clearing houses across markets
The role of the settlements department
➢ Importance of settlement
➢ Relationship and responsibilities
➢ Management information: management reports
➢ Explaining the relationships with counterparties dealt within the settlement of typical trades
Settlement conventions
➢ What are they and how do they differ by securities class in major markets?
➢ International market conventions
Processes in settlement
➢ Investment decision
Order flow from Investor to Broker / Dealer
➢ Order/Execution management
➢ Client trade reporting
➢ Regulatory reporting
Pre-settlement
➢ Input of settlement instructions
➢ Input scenarios
➢ Matching
➢ Monitoring transactions
➢ Changing transaction input
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Settlement
➢ Priorities and queues
➢ Circle processing
➢ Monitoring transaction settlement
➢ Electronic transfer of title (ETT)
➢ Bad deliveries
➢ Overcoming problem areas
➢ The importance of timing
➢ Cash management and FX - timing and importance
➢ Netting
➢ Settlement for residual securities
➢ The importance of reconciliation
Clearing & Settlement Market Service Options
➢ Straight Through Processing (STP) options
➢ Role of third party organisations
➢ Central Counterparties (CCP)
➢ CHAPS/CHIPS
➢ Euroclear/Clearstream (ICSDs)
➢ CREST
➢ DTCC
➢ Legal requirements
ASSET SERVICING
➢ Margin
➢ Collateral
➢ SMAC
Corporate actions: Selection of corporate action types, including:
➢ Coupon payments (fixed & floating rates)
➢ Principal payments
➢ Bond conversions
➢ Bond redemptions
Mandatory & voluntary event lifecycle, including:
➢ Sources of information
➢ Announcement capture
➢ Ascertaining entitlements
➢ Counterparty claims
➢ Calculation of resultant entitlements
➢ Updating books and records
➢ Settlement with custodian and counterparties
GLOBAL SECURITIES SERVICES & DEVELOPING TRENDS
➢ Types and development of markets
➢ Common structures
➢ Withholding tax and Double Taxation Treaties (DTT)
➢ Principal custody service providers
➢ Risks associated with global markets
The foreign exchange market
➢ The role of the Forex market
➢ How they are used - the exchanges and trading techniques
➢ Relationships between the spot, forward and interest rate markets
➢ Relationship with the money markets
➢ Settlement with custodian and counterparties
Industry trends and the future
➢ Changes taking place in the industry
➢ RTGS
➢ STP
➢ Alliances
➢ Other industry initiatives
| Case studies, exercises and short multiple-choice examinations will be included in components of the program. In-depth securities market profiles will be produced for markets covered in the case studies. |
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