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Course Outline
The Global Capital Markets
- Defining a 'financial marketplace'
- The historical evolution of today's global financial markets
- The influence of the financial media
- Structure of major capital markets:
- Exchanges, Clearing Houses, and Regulators
- The modern surge in global investment
- Different types of 'Stock Exchanges'
- The role of Stock Exchanges in today's markets
- Major exchanges in the US, Europe, the Middle East, and Asia
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Origins of New Product Development
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, plus the Yield Curve
- Money Market instruments
- Foreign exchange markets
- Investor motivations for buying and selling
- Income vs. Capital Gain
- Interrelationships between various asset classes
- Connections between Exchange-traded and Over-The-Counter (OTC) markets
The Short-Term Money Market
- Certificates of Deposit
- T-Bills
- Commercial Paper
- Trade Paper & Bankers' Acceptances
- Market norms and practices
- Market participants
Types of Stock Exchange Investors
- Investors
- Fund managers
- Hedge funds
- Stock Exchange participants
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Intra-market relationships – the buy and sell sides of the industry
The Role of the Stock Exchange
- Where are these products traded?
- The significance of the OTC market
- Historical development of Stock Exchanges
- Key Stock Exchanges in today's markets
- US, European, and Asian markets and their differing architectures
- Asset classes traded on various Stock Exchanges globally
- Major Primary and Secondary markets
- New York, Euronext, London, Shanghai, Hong Kong
- Why 'listed' companies attract investors
- Using Stock Exchanges to pool liquidity and raise capital
- Methods of Capital Raising
- Going public ('Floating') – various methods
Clearing & Settlement
- Settlement and settlement risk
- Different 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 issues – unmatched trades, delayed settlement, failed delivery
- Stock Exchange Settlement Discipline
- The 'life cycle of a trade' – linking the process from 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 the 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
Managing Quoted Equity Investments
- Risks associated with acquiring securities
- Risks associated with managing securities
- Risks associated with corporate actions
- Pricing of 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
- The use of ratings and associated risk issues
- Risks associated with pricing fixed income securities
- Risk and controls within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and controls within sovereign bond processing
Market and Credit Risks 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.