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Duration 14 hours
Course Outline
Global Capital Markets
- Defining a ‘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 recent surge in global investment activity
- Distinctions between various ‘Stock Exchange’ types
- The current role of Stock Exchanges in the market landscape
- Stock Exchanges in the US, Europe, the Middle East, and Asia
Regulation of Financial Markets:
- Capital Adequacy Requirements
- Basel I Framework
- Basel II Framework
- Basel III and its operational implications
- Drivers for New Product Development
Asset Classes and Their Corresponding Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issuances
- Bonds – Fixed, Floating, and Zero-coupon rates; understanding the Yield Curve
- Money Market instruments
- Foreign Exchange (FX) markets
- Investor motivations for buying and triggers for selling
- Balancing Income generation and Capital Gain
- Interdependencies among various asset classes
- The relationship between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Market
- Certificates of Deposit
- Treasury Bills (T Bills)
- Commercial Paper
- Trade Paper and Bank Acceptances (BAs)
- Standard market norms and practices
- Key market participants
Categorisation of Stock Exchange Investors
- General Investors
- Fund Managers
- Hedge Funds
- Direct Stock Exchange participants
- Investment Banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market dynamics – analysing the buy and sell sides of the industry
The Function of the Stock Exchange
- Venues for trading specific products
- The significance of the OTC market
- The developmental history of Stock Exchanges
- Leading Stock Exchanges in the current global landscape
- Comparing architectures of US, European, and Asian markets
- Asset classes traded on Stock Exchanges worldwide
- Major Primary and Secondary market distinctions
- New York, Euronext, London, Shanghai, and Hong Kong exchanges
- The appeal of ‘listed’ companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Various methods of Capital Raising
- ‘Floating’ a company – exploring different methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Varying Settlement Conventions across major markets
- Equities, Bonds, and Derivatives clearing
- The Derivatives Clearing process
- The Central Counterparty (CCP) model
- CCP services facilitated for Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final Settlement
- Common issues – unmatched trades, settlement delays, and failed deliveries
- Stock Exchange Settlement Discipline
- The ‘life cycle of a trade’ – tracing the process from execution to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – including LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody
- The role of Custodians in Stock markets
- Settlement and safekeeping services
- Income collection and Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting functions
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Defining Alternative Investments
- Structured products – analysing risks and returns
- Hedge funds – risk management and control mechanisms
- Venture Capital – valuation challenges, risk, and control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC vs Exchange-Traded Derivatives (ETD)
- Types of Derivatives utilized in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, covering documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks involved in managing securities portfolios
- Risks associated with corporate actions
- Pricing mechanisms for quoted equity investments
- Primary sources of risk
- General controls within equity investment strategies
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- The role of credit ratings and related risk factors
- Risks associated with fixed income pricing
- Risk and control measures in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation methodologies for government securities
- Risk and controls in sovereign bond processing
Market and Credit Risks in Global Investing
- Market risk overview
- Value-at-Risk (VaR) calculations
- Market risk modelling techniques
- Credit risk overview
- Methods for measuring Credit risk
- Global market risk factors
- Money market risks
- OTC market risks
- Exchange-based risks
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
