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Course Outline
The Global Capital Markets
- Understanding the concept of a 'financial marketplace'
- Historical evolution of today's global financial markets
- The influence and role of financial media
- Architecture of major capital markets:
- Exchanges, Clearing houses, and Regulatory bodies
- The modern surge in global investment
- Various types of 'Stock Exchanges'
- The position of Stock Exchanges in current markets
- Overview of US, European, Middle Eastern, and Asian Stock Exchanges
Regulation of Financial Markets:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Origins for 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, including the Yield Curve
- Money Market instruments
- Foreign Exchange (Currency) markets
- Investor motivations: Drivers for buying and selling
- Income generation vs. Capital Gain
- Interrelationships between various asset classes
- Integration of Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of Deposit
- Treasury Bills (T-Bills)
- Commercial Paper
- Trade Paper and Bankers' Acceptances (BAs)
- Market norms and best practices
- Key market participants
Types of Stock Exchange Investors
- Retail Investors
- Fund Managers
- Hedge Funds
- Direct Stock Exchange Participants
- Investment Banks, Stockbrokers, and Prime Brokers
- Intra-market dynamics – The buy-side and sell-side of the industry
The Role of the Stock Exchange
- Venues for trading these products
- The significance of the OTC market
- Historical development of Stock Exchanges
- Premier Stock Exchanges in today's markets
- US, European, and Asian Markets and their distinct architectures
- Asset classes traded across global Stock Exchanges
- Primary and Secondary markets overview
- Key exchanges: New York, Euronext, London, Shanghai, 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 & Settlement
- Settlement processes and associated risks
- Different settlement conventions in major markets
- Equities, Bonds, and derivatives
- The derivatives clearing process
- The Central Counterparty (CCP)
- CCP services provided to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Settlement execution
- 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, and the DTC
Custody Services
- The role of Custodians in stock markets
- Settlement and safekeeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Value-added services
- Accounting functions
- Stock lending and collateral management
- Trustee services
- Valuation reports
Alternative Investments
- Definition and scope of Alternative Investments
- Structured products – Risks and returns
- Hedge funds – Risks and controls
- Venture Capital – Valuation, risk, and control issues
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC vs. Exchange-Traded Derivatives (ETD)
- Types of derivatives used in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, including documentation, valuation, and reporting challenges
Managing Quoted Equity Investments
- Risks associated with acquiring securities
- Risks involved in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks associated with international equity markets
Managing Quoted Fixed Income Investments
- Risks associated with acquiring and disposing of fixed income securities
- Use of credit ratings and associated risk issues
- Risks involved in pricing fixed income securities
- Risk and control frameworks within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control frameworks within sovereign bond processing
Market and Credit Risks in Global Markets
- 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.
