Global Securities: Trading and Settlements

Participants gain an overview of the global security trade flow and receive a detailed examination of trading and settlement.

20-Oct-2008 -- 21-Oct-2008New YorkUSD$2375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ David Weiss; ] Mon Tue Level: Basic
CPE Credits: 14.0

Settlement, corporate action and custody staff; IT, program and product developers; client service representatives.
No advance preparation required.
Day 1

Overview of Global Trading

  • Trends in the Global Markets
  • *Linked and merged exchanges
  • *Linked CSD's
  • *VMU
  • *CCP
  • Order and instruction flow

Participants

  • Issuers, Transfer Agents and Registrars
  • Investors
  • Brokers
  • Banks
  • Clearing and Settlement facilities
  • Service Organizations

Basic Valuation Techniques

  • Marketplace structure
  • *Exchanges
  • *ECN
  • *ATS
  • *Floor vs. electronic
  • Participants
  • *Market Makers
  • *Specialists
  • Advantages and disadvantages of the methods of execution
  • *Order or Price Driven
  • Trading Regulations
  • *Types of Orders
  • *Special Instructions
  • *Unit of Trading
  • *Required Information
  • *Restrictive Markets
  • Comparison of methods for equities, debt, derivatives and F/X

Trades Processing

  • Creating the trade confirmation and trade instructions
  • Standard Settlement Instructions
  • Instruction Flow and the VMU
Workshop - Participants will examine the methods of trade execution: expectations of the investors vs. the services provided by the broker/trader/marketplace

Day 2 - Clearance and Settlement Procedures

Defining the Clearance Process

  • Matching
  • Netting practices and the CCP
  • Trade Guarantee

Comparison of Clearance facilities

  • Vendors
  • Role of the Clearing House
  • International Clearing Depositories (ICSDs)
  • Government Securities and the Central Bank

Comparison of clearance methods by instrument

  • Equities
  • Debt
  • Derivatives
  • Currency (F/X transactions)

Defining the Settlement Process

  • Physical vs. Book Entry Settlement
  • Free or Delivery vs. payment
  • Instruction Matching
  • Securities transfer systems
  • Funds transfer systems

Settlement Risk Factors

  • Delivery vs. Payment
  • Depository Links
  • *With payment system
  • *With registrar
  • Close Out Procedures
  • *Penalties
  • *Buy-in / Sell-out procedures
  • Settlement in the ‘no-fail’ markets
  • Murphy’s Law

Risk Assessment and Management

  • Basel II Accord
  • Three Pillars
  • *Minimum Capital Requirements
  • *Supervisory Review Process
  • *Market Discipline
  • Credit Risk
  • Operational Risk
  • Market Risk
Workshop - Participants will examine steps in settlement and develop a plan to monitor and control settlement risk

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.