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Duration 14 hours
Course Outline
Global Capital Markets
- Defining the ‘financial marketplace’
- The historical evolution of today’s global financial markets
- The influence of financial media
- Architecture of major capital markets:
- Exchanges, clearing houses, and regulators
- The contemporary surge in global investment
- Varieties of ‘Stock Exchanges’
- The position of Stock Exchanges in current markets
- Stock Exchanges in the US, Europe, the Middle East, and Asia
Regulation of Financial Markets:
- Capital adequacy requirements
- Basel I
- Basel II
- Basel III and its broader implications
- Driving new product development
Asset Classes and Their Corresponding Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred stock
- Bonds – Corporate and Government issues
- Bonds – Fixed, floating, and zero-coupon rates, and the Yield Curve
- Money market instruments
- Currency markets
- Investor motivations for buying and selling
- Income generation versus capital appreciation
- Interconnections between various asset classes
- Integration of Exchange-traded and Over-The-Counter markets
Short-Term Money Markets
- Certificates of deposit
- Treasury Bills (T Bills)
- Commercial paper
- Trade paper and Banker’s Acceptances (BAs)
- Prevailing market norms and practices
- Key market participants
Categories of Stock Exchange Investors
- General 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 Function of the Stock Exchange
- Trading venues for these products
- Significance of the OTC market
- Historical progression of Stock Exchanges
- Major Stock Exchanges in the current landscape
- Architectural differences in US, European, and Asian markets
- Asset classes traded on global Stock Exchanges
- Key Primary and Secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong
- Appeal of ‘listed’ companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Capital raising methodologies
- ‘Floating’ a company – various approaches
Clearing and Settlement
- Settlement processes and associated risks
- Diverse Settlement Conventions across major markets
- Handling Equities, Bonds, and derivatives
- Derivatives Clearing procedures
- The role of the Central Counterparty (CCP)
- CCP services offered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement stages
- Final settlement
- Potential issues – unmatched trades, delayed settlement, and failed delivery
- 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 Services
- The role of Custodians in Stock markets
- Settlement and safekeeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Defining Alternative Investments
- Structured products – Risk and return profiles
- Hedge funds – Risk management and control
- Venture Capital – Valuation issues, risk, and control
- Private Equity and Angel Finance
- Utilization of derivatives in Asset Management
- OTC versus ETD
- Types of Derivatives employed in Asset Management
- Futures
- Options
- Risk and control mechanisms for derivatives, including documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks involved in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Principal sources of risk
- General controls within equity investment
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks associated with acquiring and disposing of fixed income securities
- Application of credit ratings and related risk considerations
- Risks involved in pricing fixed income securities
- Risk and control measures in corporate fixed income processing
- Risks linked to Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control measures in sovereign bond processing
Market and Credit Risks in Global Market Investment
- Market risks
- Value at Risk (VAR) calculations
- Market risk modelling
- Credit risks
- Methods for measuring Credit risks
- Global Market risks
- Money Market risks
- OTC risks
- Exchange risks
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
