Global Securities: Custody

This session examines the services provided by custodians, and looks at the basics of corporate actions as well as county-specific practices in processing redemptions, mergers and rights issues.

22-OCT-2008 -- 22-OCT-2008New YorkUSD$1475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ David Weiss; ] Wed Level: Basic
CPE Credits: 7.0

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

Services of the Global Custodian Bank

  • The Network
  • *Global, Regional and Local (sub) custodians
  • *Rule 17f-5/6/7 and the local custody of securities
  • Core Services
  • *Processing Trade Instructions
  • *Cash Management
  • *Processing Corporate Actions
  • *Processing Dividend and Interest Income
  • Value Added Services
  • *Processing tax withholding and reclaims
  • *Processing proxy voting
  • *Securities Lending
  • *Risk Assessment and Management

Services of the Local Custodian Bank

  • Receipt, delivery and safekeeping of securities
  • Notification and processing capital changes
  • *Redemptions, conversions, exchanges, tender offers
  • *Exercise or sale of rights issues
  • Processing Dividend and Interest Income

Cash Management

  • Financing Requirements
  • Funds Reconciliation
  • The Foreign Exchange Marketplace
  • *Currency Controls
  • *Spot vs. Forward execution
Workshop - Participants will analyze a subscription rights issue, subscribe or sell the rights and evaluate the risks.

International Securities Lending

  • Definition of Securities Lending
  • Definition of Repurchase Agreement / Reverse Repo
  • Participants
  • *Borrowers
  • *Lenders
  • *Agents (Tri-Party)
  • The Process
  • *Initiation
  • *Transfer of securities and collateral
  • *Revaluation
  • *Transaction close-out
  • The Risks and Rewards
Workshop - Participants will discuss the booking, settlement and custody of an order executed in a linked market. Example: an Australian stock executed on the Singapore exchange and settled via the link between CREST and the CDP.

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.