Brokerage Operations

This intensive program covers the more salient aspects of brokerage operations. Offered as a two day program, the participants are taken through the steps from order entry through trade processing to final record keeping and regulatory reporting for many of the industries products. This includes after settlement processes, such as corporate actions and debt servicing. Both customer side and contra side of the operation process are detailed.

02-Apr-2012 -- 03-Apr-2012New YorkUSD$2475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ David Weiss; ] Mon Tue Level: Basic

10-Oct-2012 -- 11-Oct-2012New YorkUSD$2475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ David Weiss; ] Wed Thu Level: Basic

CPE CREDITS
14.0
It should be of particular interest to: • Technology -- operational and administrative staff new to the securities industry; • Broker dealer's staff with limited exposure to the entire operations process; • Brokerage firms' counter parties at banks; • Employees of clearing corporations and depositories; • Regulatory personnel; • Administrative and operational personnel of institutional clients; • Employees of the Industry's vendors
No advance preparation required.
Students will be able to:
  • Understand the components of the trade processing cycle
  • Identify the processing routines used by the primary products
  • Grasp concept of customer margin requirements for different products
  • Interpret financing needs and probable solutions
  • Garner an appreciation of customer and street side processing cycle
  • Be conversant in the workings of the Stock Record and General Ledger
None
"Fantastic instructor who was very engaging!"
"The use of real-world examples was a strength of this course."
"Good overview of operations and good background on trade processing."
"This course gives a very full and detailed description of the operations process."
"The instructor offered experience AND knowledge."
Day 1
Primary Sections of a Brokerage Firm
  • Front office-Revenue generation
  • Middle office-Transaction processing
  • Back office-Security and money settlement, asset servicing
  • Main records and reports
  • Regulatory reporting

Overiew of Products

  • Equity
  • Debt
  • Derivatives

Industry Interfaces

  • Institutional and retail clients
  • Banks - in multiple roles
  • Clearing corporations
  • Depositories
  • Regulators
  • Vendors

Broker Dealer Categories

  • Broker
  • Dearer, market maker, trader
  • Clearing/non-Clearing
  • Prime broker
  • International/Multi-national

Trade Entry Process

  • Order entry systems
  • Security master reference file
  • Client master reference file
  • Order flow

Functions of the Marketplace

  • Agency vs. principal markets
  • Workings of the market
  • Order instructions, Execution, Reporting

Trade Processing Function

  • Trade Figuration
  • Comparison: Netting and CNS, RTTM, Matching
  • Confirmation: T+3 (Retail); DVP (Institutional)

Introduction to the Margin Department

  • Requirements for securities, options and futures
  • Work of the margin department
  • Margin applications: Excess, Maintenance
  • Requirements
  • Actions

Day 2
Security and Cash Settlement
  • Receive and Deliver operation
  • Seg control and balancing
  • Settlement Interfaces
  • Stock Loan/Borrow/Bank Loan
  • Repo/Reverse/GCF
  • Workings of the clearing banks
  • FedWire

Custody Functions

  • Depositary
  • Custodian Bank

Corporate Action Processing

  • Dividend and bond interest processing
  • Mergers, Acquisitions
  • Tenders
  • Reverse Splits, Spin offs, etc

Transaction Processing and Clearing For

  • Mutual funds- via FundServ; Non FundServ
  • Options: Listed and OTC-Working of OCC; Exercise and Assignment
  • Futures-Trade processing; account management; settlement
  • Asset Backed Securities: ISDA Agreements; Warehousing

Cash and Security Accounting

  • Type of accounts
  • Entry exercise

Stock Record

  • Entry types
  • Daily Activity
  • Position Record

General Ledger

  • Entry types
  • Daily Cash Listing
  • Trail Balance

Regulatory and Financial Reports

  • Profit and Loss
  • Balance sheet
  • Net Capital (a.k.a. 15c3-1)
  • Customer protection (a.k.a. 15c3-3)
  • FOCUS

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.