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Course Outline
The Global Capital Markets
- Defining a 'financial market place'
- Historical evolution of today's global financial landscape
- The role of financial media
- Structure of major capital markets:
- Exchanges, Clearing Houses, and Regulators
- The modern surge in global investment
- Various types of 'Stock Exchanges'
- The role of Stock Exchanges in current markets
- US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Origins for New Product Development
The Different Asset Classes and Their Markets
- What is traded on Stock Exchanges today?
- Equities – Common and Preferred
- Bonds – Corporate and Government
- Bonds – Fixed, Floating, and Zero Coupon; The Yield Curve
- Money Market instruments
- The currency markets
- Investor motivations for buying and selling
- Income vs. Capital Gain
- Interrelationships between various asset classes
- Interaction between Exchange-traded and Over-The-Counter markets
Short Term Money Market
- Certificates of deposit
- T Bills
- Commercial paper
- Trade paper & Bankers' Acceptances (BAs)
- Market norms and practices
- Market participants
The Different Types of Stock Exchange Investor
- Investors
- Fund managers
- Hedge funds
- Stock Exchange participants
- Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market relationships – the buy and sell side of the industry
The Role of the Stock Exchange
- Where are these products traded?
- The importance of the OTC market
- The past development of Stock Exchanges
- The main Stock Exchanges in today’s markets
- US, European, and Asian Markets and their differing architecture
- Asset classes traded on different Stock Exchanges worldwide
- The major Primary and Secondary markets
- New York, Euronext, London, Shanghai, Hong Kong
- The attraction of 'listed' companies to investors
- Using Stock Exchanges to pool liquidity and raise capital
- Methods of Capital Raising
- ‘Floating’ the company – different methods
Clearing & Settlement
- Settlement and settlement risk
- Settlement Conventions in major markets
- Equities, Bonds, and derivatives
- The process for Derivatives Clearing
- The Central Counterparty (CCP)
- CCP services provided to Stock Exchanges
- Margin
- The security trade settlement process
- Pre-settlement
- Settlement
- Potential problems – unmatched trades, delayed settlement, bad delivery
- Stock Exchange Settlement Discipline
- The 'life cycle of a trade' – linking trade to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – LCH.Clearnet, Euroclear, Crest, Clearstream International, the DTC
Custody
- The role of Custodians in Stock markets
- Settlement and safe keeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Additional services
- Accounting
- Stock Lending and collateral management
- Trustee services
- Valuation reports
Alternative Investments
- What are Alternative Investments?
- Structured products - Risks and returns
- Hedge funds - Risks and Control
- Venture Capital Valuation issues, Risk and Control
- Private Equity/Angel Finance
- The use of derivatives in Asset Management
- OTC vs ETD
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, including documentation, valuation, and reporting issues
The Management of Quoted Equity Investment
- The risks associated with acquiring securities
- The risks associated with managing securities
- Risk associated with corporate actions
- Pricing of quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks associated with international equity markets
The Management of Quoted Fixed Income Investment
- The risks associated with acquiring and disposing of fixed income securities
- The use of ratings and associated risk issues
- The risks associated with pricing of fixed income securities
- Risk and controls within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- The valuation of government securities
- Risk and controls within sovereign bond processing
The Market and Credit Risks of investing in Global Markets
- Market risks
- 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.