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Course Outline
The Global Capital Markets
- Defining a 'financial marketplace'
- Historical evolution of today's global financial markets
- The influence of financial media
- Structure of major capital markets:
- Exchanges, Clearers, and Regulators
- The rise of global investment
- Diverse types of 'Stock Exchanges'
- The role of Stock Exchanges in modern markets
- Overview of US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its impact
- Origins of New Product Development
Asset Classes and Their Markets
- Current trading activities on Stock Exchanges
- Equities – Common and Preferred
- Bonds – Corporate and Government
- Bonds – Fixed, Floating, and Zero coupon; the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations: Buying and Selling drivers
- Income versus Capital Gain
- Interrelationships among asset classes
- Interaction between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Market
- Certificates of Deposit
- T-Bills
- Commercial Paper
- Trade Paper & Bankers' Acceptances
- Market norms and practices
- Key market participants
Types of Stock Exchange Investors
- Individual Investors
- Fund Managers
- Hedge Funds
- Stock Exchange Participants
- Investment Banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market relationships – Buy-side and Sell-side dynamics
The Role of the Stock Exchange
- Where products are traded
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in today's markets
- US, European, and Asian Markets: Architectural differences
- Asset classes traded on global Stock Exchanges
- Primary and Secondary markets
- Key exchanges: New York, Euronext, London, Shanghai, Hong Kong
- Attractions of 'listed' companies for investors
- Using Stock Exchanges to pool liquidity and raise capital
- Capital raising methods
- Methods of 'Floating' a company
Clearing & Settlement
- Settlement and settlement risk
- Settlement conventions in major markets
- Equities, Bonds, and Derivatives
- Derivatives Clearing process
- The Central Counterparty (CCP)
- CCP services for Stock Exchanges
- Margin requirements
- Security trade settlement process
- Pre-settlement
- Settlement
- Potential issues – 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 safekeeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Additional services
- Accounting
- Stock Lending and collateral management
- Trustee services
- Valuation reports
Alternative Investments
- Definition of Alternative Investments
- Structured products – Risks and returns
- Hedge funds – Risks and controls
- Venture Capital – Valuation, Risk, and control
- Private Equity / Angel Finance
- Use of derivatives in Asset Management
- OTC versus ETD
- Types of Derivatives used 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 from Corporate Actions
- Pricing of quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks in international equity markets
Management of Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Use of ratings and associated risk issues
- Risks in 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 Investing
- 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.