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Duration 14 hours
Course Outline
The Global Capital Markets
- Defining the 'financial market place'
- The historical evolution of the contemporary global financial market
- The influence of financial media
- Architectural structure of major capital markets:
- Roles of Exchanges, Clearers, and Regulators
- The recent surge in global investment activity
- Distinguishing between various types of 'Stock Exchanges'
- The positioning of Stock Exchanges within the current market landscape
- Comparing US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its strategic implications
- Driving new product development through regulatory insights
The Different Asset Classes and Their Markets
- Current tradable instruments on Stock Exchanges
- Equities: Common and Preferred shares
- Bonds: Corporate and Government issues
- Bond structures: Fixed, Floating, and Zero-coupon rates, along with the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Income generation versus Capital Gains
- Interdependencies among various asset classes
- The interplay 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)
- Established market norms and practices
- Key market participants
The Different Types of Stock Exchange Investors
- Retail and institutional Investors
- Fund managers
- Hedge funds
- Direct 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 specific products
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in the modern market
- Architectural differences across US, European, and Asian Markets
- Asset classes traded on global Stock Exchanges
- Major Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of 'listed' companies to investors
- Leveraging Stock Exchanges to aggregate liquidity and raise capital
- Strategies for Capital Raising
- 'Floating' a company: Various methodologies
Clearing & Settlement
- Settlement mechanics and associated risks
- Settlement conventions in major markets
- Processing Equities, Bonds, and derivatives
- The workflow for Derivatives Clearing
- The function of the Central Counterparty (CCP)
- CCP services supporting Stock Exchanges
- Margin requirements
- The security trade settlement process
- Pre-settlement procedures
- Final Settlement
- Addressing potential issues: unmatched trades, settlement delays, and delivery failures
- Enforcement of Stock Exchange Settlement Discipline
- The 'life cycle of a trade': Connecting 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 function of Custodians in Stock markets
- Settlement and safekeeping services
- Income collection and processing Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting processes
- 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 mechanisms
- Venture Capital: Valuation challenges, risk, and control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC versus ETD markets
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risk and control frameworks for derivatives, covering documentation, valuation, and reporting
The Management of Quoted Equity Investment
- Risks inherent in acquiring securities
- Risks associated with ongoing securities management
- Risk factors linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Primary sources of risk
- Standard controls within equity investment portfolios
- Risks specific to international equity markets
The Management of Quoted Fixed Income Investment
- Risks in acquiring and disposing of fixed income securities
- Utilization of ratings and related risk considerations
- Risks associated with fixed income pricing
- Risk and control frameworks within corporate fixed income processing
- Risks related to Government Securities
- Sovereign risk ratings
- Valuation methodologies for government securities
- Risk and control frameworks within sovereign bond processing
The Market and Credit Risks of Investing in the Global Market
- General Market risks
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- 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.