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Course Outline
Global Capital Markets
- Defining the concept of a ‘financial marketplace’
- The historical evolution of the modern global financial system
- The influence and role of financial media
- The structural components of major capital markets:
- Exchanges, clearing houses, and regulatory bodies
- The contemporary surge in global investment flows
- Variations in the design and function of ‘Stock Exchanges’
- The position of Stock Exchanges within today’s market landscape
- Comparative analysis of US, European, Middle Eastern, and Asian Stock Exchanges
Regulatory Frameworks in Financial Markets:
- Capital adequacy standards
- Basel I framework
- Basel II framework
- Basel III and its operational implications
- Regulatory drivers for new product development
Asset Classes and Associated Markets
- Current instruments traded on Stock Exchanges
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issues
- Bond structures – Fixed, floating, and zero-coupon rates, plus yield curve analysis
- Money market instruments
- Foreign exchange (currency) markets
- Investor motivations for purchasing and selling
- Income generation vs. capital appreciation
- Interdependencies among various asset classes
- The correlation between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of deposit
- Government Treasury Bills
- Commercial paper
- Trade paper and Banker’s Acceptances
- Standard market conventions and practices
- Key market participants
Categories of Stock Exchange Investors
- Retail and institutional investors
- Fund managers
- Hedge funds
- Primary Stock Exchange participants
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Internal market dynamics – the interaction between buy and sell sides
The Function of the Stock Exchange
- Trading venues for financial products
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in the current global market
- Comparative architectures of US, European, and Asian markets
- Diversity of asset classes traded on exchanges worldwide
- Primary versus Secondary market functions
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of ‘listed’ companies to investors
- Leveraging Stock Exchanges to pool liquidity and raise capital
- Strategies for capital raising
- Methods for ‘Floating’ (IPO) a company
Clearing and Settlement
- Settlement mechanics and associated risks
- Settlement conventions in major markets
- Settlement of equities, bonds, and derivatives
- Processes for clearing derivatives
- The role of the Central Counterparty (CCP)
- Services provided by CCPs to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement checks
- Final settlement
- Common challenges – unmatched trades, settlement delays, and delivery failures
- Enforcement of Stock Exchange settlement disciplines
- The ‘life cycle of a trade’ – linking 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 Services
- The role of custodians in Stock markets
- Settlement and safekeeping of assets
- Collection of income and processing corporate actions
- Cash management and funding of transactions
- Supplementary services
- Accounting and reporting
- Stock lending and collateral management
- Trustee services
- Asset valuation reporting
Alternative Investments
- Definition and scope of Alternative Investments
- Structured products – assessing risks and returns
- Hedge funds – risk management and control mechanisms
- Venture Capital – valuation, risk, and control
- Private Equity and Angel Finance
- The application of derivatives in Asset Management
- OTC vs. Exchange-Traded Derivatives
- Types of derivatives utilized in Asset Management
- Futures
- Options
- Risk controls for derivatives, including documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks in acquiring securities
- Risks in managing securities portfolios
- Risks related to corporate actions
- Pricing mechanisms for quoted equities
- Primary risk factors
- Standard controls within equity investment
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Use of credit ratings and associated risk considerations
- Risks in pricing fixed income securities
- Risk and controls in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign credit ratings
- Valuation of government securities
- Risk and controls in sovereign bond processing
Market and Credit Risks in Global Investing
- Identification of market risks
- Value at Risk (VaR) calculations
- Market risk modeling techniques
- Identification of credit risks
- Metrics for measuring credit risk
- Risks specific to global markets
- Money market risks
- OTC market risks
- Exchange-related risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
