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Duration 14 hours
Course Outline
Global Capital Markets
- Defining the 'financial marketplace'
- The historical evolution of the modern global financial system
- The influence of financial media
- The architecture of major capital markets:
- Exchanges, clearing houses, and regulatory bodies
- The contemporary surge in global investment activity
- Variations among different 'Stock Exchanges'
- The current positioning of stock exchanges within the market landscape
- Stock exchanges across 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 – both common and preferred shares
- Bonds – corporate and government issued
- Bond structures – fixed, floating, and zero-coupon, along with the yield curve
- Money market instruments
- Currency markets
- Investor motivations for buying and triggers for selling
- Income generation versus capital appreciation
- Interdependencies among various asset classes
- Interactions between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of deposit
- Treasury bills
- Commercial paper
- Trade paper and Bankers' Acceptances
- Standard market norms and practices
- Key market participants
Categories of Stock Exchange Investors
- Individual and institutional investors
- Fund managers
- Hedge funds
- Direct stock exchange participants
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Intra-market dynamics – the relationship between buy-side and sell-side entities
The Function of Stock Exchanges
- Trading venues for various financial products
- The significance of the OTC market
- The historical development of stock exchanges
- Leading stock exchanges in the current global landscape
- Differences in market architecture across the US, Europe, and Asia
- Asset classes traded on global stock exchanges
- Primary and secondary market mechanisms
- Key exchanges including New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of listed companies to investors
- Leveraging stock exchanges to consolidate liquidity and raise capital
- Strategies for capital raising
- Company 'floats' – various methodologies
Clearing and Settlement
- Settlement processes and associated risks
- Settlement conventions in major markets
- Handling of equities, bonds, and derivatives
- Derivatives clearing procedures
- The role of the Central Counterparty (CCP)
- CCP services offered to stock exchanges
- Margin requirements
- The securities trade settlement workflow
- Pre-settlement activities
- Final settlement
- Potential issues – unmatched trades, delayed settlements, and failed deliveries
- Stock exchange settlement discipline
- The 'life cycle of a trade' – tracing the process from execution to settlement
- The function 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 safe-keeping services
- Income collection and handling corporate actions
- Cash management and funding transactions
- Additional support services
- Accounting and reporting
- Stock lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Defining alternative investments
- Structured products – risks and return profiles
- Hedge funds – risk management and control mechanisms
- Venture Capital – valuation, risk, and control
- Private Equity and Angel Finance
- The application of derivatives in asset management
- OTC versus Exchange-Traded Derivatives (ETD)
- Types of derivatives utilized in asset management
- Futures
- Options
- Risks and controls related to derivatives, including documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks associated with ongoing securities management
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity
- Primary sources of risk
- Standard controls within equity investment
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks associated with buying and selling fixed-income securities
- Utilization of credit ratings and related risk considerations
- Risks involved in pricing fixed-income securities
- Risk and control measures in corporate fixed-income processing
- Risks associated with government securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control measures in sovereign bond processing
Market and Credit Risks in Global Investment
- Identification of market risks
- Value at Risk (VaR) calculations
- Market risk modeling techniques
- Identification of credit risks
- Metrics 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.