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Duration 14 hours
Course Outline
Global Capital Markets
- Defining the concept of a 'financial marketplace'
- The historical evolution leading to the current global financial landscape
- The influence and role of financial media
- Analyzing the structure of major capital markets:
- Exchanges, clearing houses, and regulatory bodies
- The recent surge in global investment activities
- Distinguishing between various types of stock exchanges
- The position of stock exchanges within modern market structures
- Comparative analysis of US, European, Middle Eastern, and Asian stock exchanges
Regulatory Frameworks in Financial Markets:
- Capital adequacy requirements and standards
- Basel I framework
- Basel II framework
- Basel III and its broader implications
- Regulatory sources influencing new product development
Asset Classes and Their Respective Markets
- Current trading instruments on stock exchanges
- Equity instruments: common and preferred shares
- Bond instruments: corporate and government issues
- Bond variations: fixed, floating, and zero-coupon rates, and the yield curve
- Money market instruments
- Foreign exchange and currency markets
- Motivations for investor buying and selling behaviors
- Income generation versus capital appreciation
- Interconnections and relationships between various asset classes
- The interplay between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Market Instruments
- Certificates of deposit
- Treasury bills (T Bills)
- Commercial paper
- Trade paper and bank acceptances (BAs)
- Standard market norms and operational practices
- Identification of key market participants
Categories of Stock Exchange Investors
- Individual and institutional investors
- Fund management professionals
- Hedge fund operators
- Direct participants in stock exchanges
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Intra-market dynamics: the buy-side and sell-side ecosystems
The Strategic Role of Stock Exchanges
- Identifying where specific financial products are traded
- The critical importance of the OTC market
- The historical progression of stock exchanges
- Leading stock exchanges in the contemporary market
- Architectural differences between US, European, and Asian markets
- Asset classes traded on global stock exchanges
- Overview of major Primary and Secondary markets
- Key exchanges including New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of listed companies to investors
- Leveraging stock exchanges for liquidity pooling and capital raising
- Strategies and methods for raising capital
- Corporate flotation: exploring various methods
Clearing and Settlement Processes
- Settlement mechanisms and associated settlement risks
- Varied settlement conventions across major markets
- Applying processes to equities, bonds, and derivatives
- The operational process for clearing derivatives
- The function of the Central Counterparty (CCP)
- Services provided by CCPs to stock exchanges
- Margin requirements and management
- The lifecycle of security trade settlement
- Pre-settlement procedures
- Final settlement execution
- Managing potential issues such as unmatched trades, settlement delays, or failed deliveries
- Enforcing settlement discipline on stock exchanges
- Tracing the 'life cycle of a trade' from execution to final settlement
- The roles of International and Central Securities Depositories (ICSDs and CSDs), including LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody Services
- The function of custodians within stock markets
- Settlement facilitation and safe-keeping of assets
- Income collection and processing of corporate actions
- Cash management and funding transaction handling
- Provision of additional value-added services
- Accounting and reconciliation processes
- Stock lending and collateral management
- Trustee services
- Generation of valuation reports
Alternative Investments
- Defining the scope of alternative investments
- Structured products: analyzing 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
- Comparing OTC vs. Exchange-Traded Derivatives (ETD)
- Types of derivatives utilized in asset management
- Futures markets
- Options markets
- Risk and control measures for derivatives, covering documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks inherent in acquiring securities
- Risks associated with managing a securities portfolio
- Risk factors related to corporate actions
- Pricing mechanisms for quoted equity investments
- Identification of major risk sources
- Implementing 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
- Utilization of credit ratings and associated risk considerations
- Risks linked to the pricing of fixed-income securities
- Risk management and controls in corporate fixed-income processing
- Risks associated with Government Securities
- Assessment of sovereign risk ratings
- Valuation methodologies for government securities
- Risk controls within sovereign bond processing
Market and Credit Risks in Global Investments
- Understanding market risks
- Calculations involving Value at Risk (VAR)
- Methodologies for market risk modelling
- Identifying credit risks
- Techniques for measuring credit risks
- Assessment of global market risks
- Risks within money markets
- Risks specific to the OTC sector
- Risks associated with exchange-traded instruments
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
