COMPLIANCE PROGRAMS
In-Person: NY Wall Street Campus
Teaching Mode : Live Instructor Classes
Virtual Live
Teaching Mode : Live Virtual Sessions
Self-Placed Online
Teaching Mode : Recorded Sessions + Q&A with Faculty
Online Professional Certificate in Operations and Compliance
Trade Lifecycle & Operations Compliance
Covers how a financial trade is executed, processed, and settled across different teams to ensure accuracy and completion.
Example: A client places a buy order → trade executed → back office ensures delivery and payment on settlement (T+1/T+2).
Anti-Money Laundering (AML)
Focuses on detecting and preventing illegal financial activities by verifying customers and monitoring transactions.
Example:
Unusual transactions → flagged → investigated → Suspicious Activity Report(SAR) filed.
Brokerage Operations Professional Certificate
Trade Processing & Settlement
Explains the steps taken after a trade to ensure correct transfer of securities and funds between parties.
Example: Clearinghouse ensures securities and funds are exchanged on settlement date.
Operational Risk & Controls
Deals with identifying and reducing risks arising from internal processes, systems, or human errors.
Example: System error detected → corrected via internal controls.
Fundamentals of Brokerage Operations
Introduction to Brokerage Operations
Provides a basic understanding of how brokerage firms facilitate trades and how markets function.
Example:
Broker routes investor order to exchange → trade executed.
Customer Account Handling
Covers how client accounts are opened, maintained, and protected within a brokerage firm.
Example: KYC completed → account activated → transactions allowed.
Fundamentals of Brokerage Operations
Customer Account Handling
Covers how client accounts are opened, maintained, and protected within a brokerage firm.
Example: KYC completed → account activated → transactions allowed.
Brokerage Accounting and Regulatory Reporting
Custom Margin Requirements
Economics and Ledger Entries of Margin Transactions Margin trading allows clients to borrow funds to trade securities, creating debit balances and generating interest income for the broker.
Formula:
Example:
- Market Value = $120,000, Loan = $72,000 → Equity = $48,000
Regulatory Context (Reg T / NYSE Rule 431) - Minimum margin requirements are set to control leverage and limit broker exposure to client default risk.
Margin Calls :
- Triggered when equity falls below required levels, requiring additional funds or forced liquidation.
Rule 15c3-1 (Net Capital Rule)
Scope and Purpose
The rule requires broker-dealers to maintain sufficient liquid capital to meet obligations and absorb potential losses
Net Capital Formula:
Example:
$100M – $20M – $50M = $30M Net Capital
Aggregate Indebtedness :
- Total unsecured liabilities used to assess leverage relative to available capital.
Ratio
- Aggregate Indebtedness Ratio = Liabilities / Net Capital
Haircuts on Securities :
- Deductions applied to asset values based on risk and liquidity.
Capital Markets 101
Short Selling
Short selling is a strategy where an investor sells borrowed shares and aims to repurchase them later at a lower price to profit from a decline.
Example: Selling at $100 and buying back at $80 generates a $20 profit per share.
Time Value of Money (TVM)
Present Value (PV)
Present value is the current worth of a future cash flow discounted at a rate reflecting time and risk.
Example: $1,000 received in one year is worth ~$909 today at a 10% discount rate.
Future Value (FV)
Future value represents how much an investment grows over time when compounded at a given interest rate.
Example: $1,000 invested at 10% becomes $1,100 after one year.
Capital Markets 101
Short Selling
Short selling is a strategy where an investor sells borrowed shares and aims to repurchase them later at a lower price to profit from a decline.
Example: Selling at $100 and buying back at $80 generates a $20 profit per share.
Time Value of Money (TVM)
Present Value (PV)
Present value is the current worth of a future cash flow discounted at a rate reflecting time and risk.
Example: $1,000 received in one year is worth ~$909 today at a 10% discount rate.
Future Value (FV)
Future value represents how much an investment grows over time when compounded at a given interest rate.
Example: $1,000 invested at 10% becomes $1,100 after one year.
Basel III: Challenges for Emerging Markets
Capital Requirements (CET1 Ratio)
The CET1 ratio measures a bank’s core equity capital relative to its risk-weighted assets, indicating its ability to absorb losses.
Example:
A bank has $80 million in CET1 capital and $1,000 million in risk-weighted assets.
Step 1: Divide capital by RWA → 80 / 1,000
Step 2: Convert to percentage → 8% This is above the regulatory minimum, indicating a strong capital position.
Net Stable Funding Ratio (NSFR)
The NSFR ensures that long-term assets are funded with stable funding sources over a one-year horizon.
Example: A bank has $500 million in stable funding and requires $450 million to support its assets. Step 1: Divide available funding by required funding → 500 / 450 Step 2: Convert to percentage → 111% This indicates sufficient long-term funding stability.
Risk Regulation: The Dodd-Frank Act
Federal Bank Supervision
Federal bank supervision involves continuous monitoring of large financial institutions to ensure they maintain adequate capital, liquidity, and risk-management practices.
Example:
The Federal Reserve conducts annual stress tests to determine whether large banks can survive severe economic downturns.
Transparency and Accountability for Exotic Instruments
Dodd-Frank introduced enhanced disclosure and oversight requirements for complex financial instruments to reduce hidden risks within the financial system.
Example: Structured derivative products must now be reported and monitored more closely to improve market visibility.
Customer Protection Rule 15c3-3
Customer Protection Rule
SEC Rule 15c3-3 safeguards customer cash and securities by requiring broker-dealers to segregate customer assets from firm assets.
Example:
A broker-dealer cannot use customer reserve funds for operational expenses.
Securities & Exchange Commission (SEC)
The SEC is the federal agency responsible for enforcing securities laws and supervising financial market participants.
Example:
If a broker-dealer improperly uses customer funds, the SEC may investigate and impose penalties.
Data Governance in Financial Services & the Impact of Global Regulation
Bank Secrecy Act (BSA)
The Bank Secrecy Act requires financial institutions to detect and report suspicious financial activities that may indicate money laundering or fraud.
Example: A bank flags repeated large cash deposits made into multiple linked accounts.
Enterprise Data Governance Program
An Enterprise Data Governance Program establishes the structure, policies, standards, and controls used to manage data consistently across the organization
Example: A bank creates governance committees responsible for enterprise reporting standards and data quality oversight.
