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Course Outline
The Global Capital Markets
- The definition of a ‘financial market place’
- The historical evolution of the modern global financial market
- The influence of financial media
- The structural composition of major capital markets:
- Exchanges, Clearing houses, and Regulatory bodies
- The contemporary surge in global investment activity
- Distinctions among various types of ‘Stock Exchanges’
- The position of Stock Exchanges within today’s market landscape
- Stock Exchanges across the US, Europe, the Middle East, and Asia
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I Framework
- Basel II Framework
- Basel III and its regulatory implications
- Innovation in New Product Development
The Different Asset Classes and Their Markets
- Current tradable instruments on Stock Exchanges
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issued
- Bonds – Fixed, Floating, and Zero coupon rates, including the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Dynamics of Income vs. Capital Gain
- Interdependencies between various asset classes
- The interplay between Exchange-traded and Over-The-Counter markets
Short Term Money Market
- Certificates of deposit
- Government T Bills
- Commercial paper
- Trade paper & Bank Acceptances
- Standard market norms and practices
- Key market participants
The Different Types of Stock Exchange investor
- Individual and Institutional 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
- Loci of product trading
- The significance of the OTC market
- Historical development of Stock Exchanges
- Principal Stock Exchanges in the current market ecosystem
- US, European, and Asian Markets and their distinct architectures
- Asset classes traded on global Stock Exchanges
- Primary and Secondary market distinctions
- 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
- ‘Floating’ a company – various methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Settlement conventions in major markets
- Clearing for Equities, Bonds, and derivatives
- The Derivatives Clearing process
- The function of the Central Counterparty (CCP)
- CCP services offered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final settlement
- Common issues – unmatched trades, delayed settlement, and failed deliveries
- Stock Exchange Settlement Discipline
- The ‘life cycle of a trade’– linking the process from 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
- The function of Custodians in Stock markets
- Settlement and safekeeping
- Income collection and processing Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting processes
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Definition of Alternative Investments
- Structured products - Associated risks and returns
- Hedge funds - Risk management and control mechanisms
- Venture Capital - Valuation challenges, risk, and control
- Private Equity/Angel Finance
- The application of derivatives in Asset Management
- OTC vs ETD dynamics
- Types of Derivatives utilized in Asset Management
- Futures
- Options
- Risk and control aspects of derivatives, including documentation, valuation, and reporting
The Management of Quoted Equity Investment
- Risks involved in acquiring securities
- Risks involved in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Primary sources of risk
- General controls within equity investment
- Risks specific to international equity markets
The Management of Quoted Fixed Income Investment
- Risks associated with the acquisition and disposal of fixed income securities
- The application of credit ratings and related risk considerations
- Risks involved in pricing fixed income securities
- Risk management and controls within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation methods for government securities
- Risk and control measures in sovereign bond processing
The Market and Credit Risks of investing in Global Market
- Market risks
- Value at Risk (VaR) calculations
- Market risk modeling techniques
- Credit Risks
- Methods for 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.