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Duration 14 hours
Course Outline
Global Capital Markets
- Definition of a 'financial market place'
- Historical evolution of the modern global financial market
- The influence of financial media
- Structure 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 consequences
- Sources for New Product Development
Diverse Asset Classes and Their Markets
- Current instruments traded on Stock Exchanges
- Equities: Common and Preferred
- Bonds: Corporate and Government
- Bonds: Fixed, Floating, and Zero-coupon, including the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Income vs. Capital Gain
- Interrelationships among various asset classes
- Interaction between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of deposit
- Treasury Bills (T-Bills)
- Commercial paper
- Trade paper and Bank Acceptances (BAs)
- Market norms and practices
- Key market participants
Types of Stock Exchange Investors
- Individual and institutional 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 Stock Exchanges
- Trading venues for financial products
- The significance of the OTC market
- Historical development of Stock Exchanges
- Major Stock Exchanges in contemporary markets
- Architectural differences in US, European, and Asian Markets
- Asset classes traded on global Stock Exchanges
- Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of 'listed' companies to investors
- Utilizing Stock Exchanges for liquidity pooling and capital raising
- Capital raising methods
- 'Floating' a company: various methodologies
Clearing and Settlement
- Settlement processes and settlement risk
- Settlement Conventions in major markets
- Handling of Equities, Bonds, and derivatives
- Derivatives Clearing process
- The Central Counterparty (CCP)
- CCP services offered to Stock Exchanges
- Margin requirements
- Security trade settlement workflow
- Pre-settlement procedures
- Final Settlement
- Common issues: unmatched trades, delayed settlement, and bad delivery
- Stock Exchange Settlement Discipline
- The 'life cycle of a trade': linking trade execution to settlement
- Roles of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – e.g., LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody Services
- The role of Custodians in Stock markets
- Settlement and safe-keeping of assets
- Income collection and processing Corporate Actions
- Cash management and funding transactions
- Additional custodial services
- Accounting functions
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Definition of Alternative Investments
- Structured products: Risks and returns
- Hedge funds: Risks and Control mechanisms
- Venture Capital: Valuation, Risk, and Control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC vs. ETD (Exchange-Traded Derivatives)
- Types of Derivatives utilized in Asset Management
- Futures
- Options
- Risks and controls related to derivatives, including documentation, valuation, and reporting
Management of Quoted Equity Investments
- Risks in acquiring securities
- Risks in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Major risk sources
- General controls within equity investment
- Risks specific to international equity markets
Management of Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Use of credit ratings and associated risk factors
- Pricing risks for fixed income securities
- Risk and control within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control within sovereign bond processing
Market and Credit Risks in Global Markets
- Identification of Market risks
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- Assessment of Credit Risks
- Methods for measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange-specific risks
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.