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Course Outline

The Global Capital Markets

  • Defining the 'financial market place'
  • The historical evolution of modern global financial markets
  • The influence of financial media
  • Structure of major capital markets:
    • Exchanges, Clearing houses, and Regulators
    • The contemporary rise in global investment
    • Variations in 'Stock Exchange' types
    • The position of Stock Exchanges in current markets
    • Stock Exchanges in the US, Europe, the Middle East, and Asia

Financial Markets Regulation:

  • Capital Adequacy Requirements
  • Basel I
  • Basel II
  • Basel III and its implications
  • Sources for New Product Development

Diverse Asset Classes and Their Markets

  • Current trading activities on Stock Exchanges
  • Equities: Common and Preferred
  • Bonds: Corporate and Government
  • Bonds: Fixed, Floating, and Zero coupon, along with the Yield Curve
  • Money Market instruments
  • Currency markets
  • Motivations for investors to buy and sell
  • Income vs. Capital Gain
  • Interconnections among various asset classes
  • The relationship between Exchange-traded and Over-The-Counter markets

Short Term Money Market

  • Certificates of deposit
  • T Bills
  • Commercial paper
  • Trade paper & BAs
  • Standard market norms and practices
  • Key market participants

Types of Stock Exchange Investors

  • Individual and institutional Investors
  • Fund managers
  • Hedge funds
  • Stock Exchange participants
  • Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
  • Intra-market dynamics: the buy and sell sides of the industry

The Role of the Stock Exchange

  • Trading venues for these products
  • The significance of the OTC market
  • The historical development of Stock Exchanges
  • Leading Stock Exchanges in today's landscape
  • Architectural differences in US, European, and Asian Markets
  • Asset classes traded on Stock Exchanges globally
  • Major Primary and Secondary markets
  • New York, Euronext, London, Shanghai, and Hong Kong
  • The appeal of 'listed' companies to investors
  • Leveraging Stock Exchanges to pool liquidity and raise capital
  • Methods of Capital Raising
  • 'Floating' a company: various methods

Clearing & Settlement

  • Settlement processes and settlement risk
  • Settlement Conventions in major markets
  • Equities, Bonds, and derivatives
  • The Derivatives Clearing process
  • The Central Counterparty (CCP)
  • CCP services for Stock Exchanges
  • Margin requirements
  • The security trade settlement workflow
  • Pre-settlement stages
  • Final Settlement
  • Potential issues: unmatched trades, delayed settlement, and failed deliveries
  • Stock Exchange Settlement Discipline
  • The 'life cycle of a trade': connecting the process from execution to settlement
  • The function of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – such as LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC

Custody

  • The role of Custodians in Stock markets
  • Settlement and safe keeping
  • Income collection and Corporate Actions
  • Cash management and funding transactions
  • Additional services
  • Accounting
  • Stock Lending and collateral management
  • Trustee services
  • Valuation reports

Alternative Investments

  • Definition of Alternative Investments
  • Structured products: Risks and returns
  • Hedge funds: Risks and Control
  • Venture Capital: Valuation issues, Risk, and Control
  • Private Equity and Angel Finance
  • The application of derivatives in Asset Management
  • OTC vs ETD
  • Types of Derivatives in Asset Management
  • Futures
  • Options
  • Risks and controls related to derivatives, including documentation, valuation, and reporting

Managing Quoted Equity Investment

  • Risks related to acquiring securities
  • Risks related to managing securities
  • Risks arising from corporate actions
  • Pricing of quoted equity investments
  • Major sources of risk
  • General controls within equity investment
  • Risks associated with international equity markets

Managing Quoted Fixed Income Investment

  • Risks in acquiring and disposing of fixed income securities
  • The use of ratings and associated risk factors
  • Risks in pricing fixed income securities
  • Risk and controls in corporate fixed income processing
  • Risks associated with Government Securities
  • Sovereign risk ratings
  • Valuation of government securities
  • Risk and controls in sovereign bond processing

Market and Credit Risks in Global Market Investing

  • Market risks
  • VAR calculations
  • Market risk modelling
  • Credit Risks
  • Measuring Credit risks
  • Global Market Risks
  • Money Market Risks
  • OTC Risks
  • Exchange risks
 14 Hours

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