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Course Outline
The Global Capital Markets
- The definition of a ‘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 recent surge in global investment flows
- Various forms of ‘Stock Exchanges’
- The position of Stock Exchanges in contemporary markets
- Comparing US, European, Middle Eastern, and Asian Stock Exchanges
Regulation of Financial Markets:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its broader implications
- Innovation drivers for new product development
Diverse Asset Classes and Their Respective Markets
- Current instruments traded on Stock Exchanges
- Equities – Ordinary and Preferred shares
- Bonds – Corporate and Sovereign
- Bonds – Fixed-rate, Floating-rate, and Zero-coupon, plus the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Income versus Capital Appreciation
- Interconnections between different asset classes
- The relationship between Exchange-traded and Over-The-Counter markets
The Short-Term Money Market
- Certificates of Deposit
- Treasury Bills
- Commercial Paper
- Trade Paper & Bank Acceptances
- Standard market conventions and practices
- Key market participants
Various Types of Stock Exchange Investors
- Individual and institutional Investors
- Fund Managers
- Hedge Funds
- Stock Exchange members
- 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
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in the current global landscape
- Comparing the structures of US, European, and Asian Markets
- Asset classes listed on exchanges worldwide
- Key Primary and Secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of ‘listed’ companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Techniques for Capital Raising
- ‘Floating’ a company – various methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Different Settlement Conventions across major markets
- Equities, Bonds, and Derivatives
- The Derivatives Clearing process
- The Central Counterparty (CCP) role
- CCP services offered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final Settlement
- Potential issues – unmatched trades, settlement delays, and failed deliveries
- Stock Exchange Settlement standards
- The ‘life cycle of a trade’ – linking 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
- The role of Custodians in Stock markets
- Settlement and safekeeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting functions
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Definition of Alternative Investments
- Structured products - Risk and return profiles
- Hedge funds - Risk management and control
- Venture Capital – Valuation challenges, risk, and control
- Private Equity/Angel Investing
- Application of derivatives in Asset Management
- OTC versus Exchange-Traded (ETD) products
- 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 managing securities
- Risks linked to corporate actions
- Pricing of quoted equity investments
- Key sources of risk
- General controls in equity investment
- Risks in international equity markets
Managing Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Use of credit ratings and related risk considerations
- Risks associated with pricing fixed income securities
- Risk and controls in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and controls in sovereign bond processing
Market and Credit Risks in Global Market Investing
- Market risks
- Value at Risk (VaR) calculations
- Market risk modelling
- Credit Risks
- Measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
