Brokerage Operations - Virtual

This course is essential for understanding which processes are brought into play after a trade occurs at a brokerage firm and provides a step-by-step analysis of how a full service broker-dealer operates. It is equally important to understand the non-trade related aspects of servicing clients’ accounts and what to be cognizant of in the protection of the firm from unscrupulous individuals.

This is a live virtual class session accessible from any internet enabled computer anywhere in the world. All class times are listed in EDT.

No sessions currently available. Contact client services to get the next available date.
Technology -- operational and administrative staff new to the securities industry; Broker dealer's staff with limited exposure to the entire operations process; Brokerage counter parties of 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:
  • Identify the roles and responsibilities within brokerage operations
  • Understand the related members of the financial community related to brokerage operations, including regulatory agencies, broker dealers, clearing corporations – who they are and what they do
  • Understand in-depth each step of order execution, trade processing and settlement
  • Define the variety of financing tools available
  • Understand what is involved in custody and asset servicing
  • Define the purpose of margin and how it functions and is processed
  • Understand the general principles of operations accounting
Day 1
Overview of Products and Participants
  • Common and Preferred shares
  • Depositary Receipts
  • Warrants and Rights
  • Fixed and floating rate Bonds and Notes
  • Commercial Paper and Commercial loans

Other issuers of Debt Instruments

  • U. S. Treasury
  • Agency issues
  • Municipal Products
  • Bankers acceptances and certificate of deposit
  • Private label - asset backed securities

Mutual Funds

  • Open end, closed end
  • Types
  • ETF

Derivative Products

  • Listed and over the counter options
  • Futures and Forwards
  • Currency and currency futures
  • Seaps

Hedge Funds

Day 2
Broker Dealer Participants
  • Broker Dealer
  • Broker
  • Dealer, market maker, trader
  • Clearing/non-Clearing
  • Prime brokerage

Other Participants

  • Institutionsal and retail clients
  • Banks - in multiple roles
  • Clearing corporations
  • Depositiories
  • Regulators
  • Vendors

Overview of Transaction processing

  • Order Match Systems
  • Security Master database
  • Client Master database
  • Trade flow

Day 3
Functions of the order management system
  • Agency vs. principal markets
  • Workings of the market: Bid - Offer
  • Types of orders: Market, Limit, Short Sale, Stop FOK, AON, IOC
  • Execution
  • Reporting

Trade Processing Function

  • Trade Figuration
  • Comparison
  • NSCC’S Netting and CNS
  • FICC's RTTM
  • Retail Confirmation
  • Intitutional confirmation/affirmation

Introduction to the Margin Department

  • Work of the margin department
  • Margin applications
  • Requirements
  • Actions

Day 4
Cashiering
  • Receive and Deliver
  • Vaulting/depository/custodian bank
  • Transfer
  • Corporate Action
  • Banking Loan
  • Stock Loan/ Stock Borrow
  • Repo
  • Dividend and bond interest processing

Introduction to accounting

  • Assets, Liabilities, Expense, Revenue and Net Worth
  • Debit vs. Credit
  • Balance Sheet vs. Profit and Loss Statement vs. Statement of Cash Flow

Brokerage Accounting

  • Securities vs. Cash
  • Type of accounts
  • Entry Exercise
  • Flow to Stock Record /General ledger

Day 5
Stock Record
  • Daily Activity
  • Position Record

General Ledger

  • Daily Cash Listing
  • Trail Balance
  • Balance Sheet/ Profit and Loss Statement

Regulatory Reports

  • Net Capital [a.k.a. 15c3-1]
  • Customer Protection [a.k.a. 15C3-3]
  • FOCUS

                          This is a live virtual class session accessible from any internet enabled computer anywhere in the world. All class times are listed in EDT.

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.