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Course Outline
The Global Capital Markets
- Defining the 'financial market place'
- The historical evolution of the modern global financial market
- The influence of financial media
- Architectural structure of major capital markets:
- Roles of Exchanges, Clearing houses, and Regulators
- The recent surge in global investment activity
- Distinguishing between various types of 'Stock Exchanges'
- The positioning of Stock Exchanges within contemporary markets
- Comparison of US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I standards
- Basel II standards
- Basel III and its broader implications
- Regulatory sources for new product development
The Different Asset Classes and Their Markets
- Current tradable instruments on Stock Exchanges
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issues
- Bond structures – Fixed, Floating, and Zero coupon rates, and the Yield Curve
- Money Market instruments
- Foreign Exchange (Currency) markets
- Investor motivations for buying and selling
- Dynamics of Income vs. Capital Gains
- Interdependencies between various asset classes
- Interactions between Exchange-traded and Over-The-Counter (OTC) markets
Short Term Money Market
- Certificates of deposit
- Treasury Bills (T Bills)
- Commercial paper
- Trade paper & Bankers' Acceptances (BAs)
- Standard market norms and practices
- Key market participants
The Different Types of Stock Exchange Investors
- Individual and institutional Investors
- Fund managers
- Hedge funds
- Registered Stock Exchange participants
- Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market dynamics – the buy-side and sell-side of the industry
The Role of the Stock Exchange
- Venues for trading specific products
- The critical importance of the OTC market
- Historical development of Stock Exchanges
- Major Stock Exchanges in the current global landscape
- Architectural differences in US, European, and Asian Markets
- Asset classes traded across global Stock Exchanges
- Distinguishing between Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of 'listed' companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Strategies for Capital Raising
- Corporate 'Floating' – various methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Settlement conventions in major markets
- Application to Equities, Bonds, and derivatives
- The Derivatives Clearing process
- The function of the Central Counterparty (CCP)
- CCP services rendered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final settlement execution
- Mitigating potential issues – unmatched trades, delayed settlement, and failed deliveries
- Settlement discipline enforced by Stock Exchanges
- The 'life cycle of a trade' – linking execution to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – including LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody
- The function of Custodians in Stock markets
- Settlement facilitation and safekeeping
- Income collection and processing Corporate Actions
- Cash management and funding transactions
- Value-added services
- Accounting standards
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Definition and scope of Alternative Investments
- Structured products - Risk and return profiles
- Hedge funds - Risk management and control
- Venture Capital - Valuation challenges, risk, and control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- Comparing OTC and ETD environments
- Derivative instruments utilized in Asset Management
- Futures
- Options
- Risk controls for derivatives, including documentation, valuation, and reporting
The Management of Quoted Equity Investment
- Risks inherent in acquiring securities
- Risks associated with managing securities portfolios
- Risks related to corporate actions
- Pricing methodologies for quoted equity investments
- Identification of major risk sources
- General controls within equity investment management
- Risks specific to international equity markets
The Management of Quoted Fixed Income Investment
- Risks in acquiring and disposing of fixed income securities
- Utilization of credit ratings and associated risk factors
- Pricing risks for fixed income securities
- Risk and control measures in corporate fixed income processing
- Risks linked to Government Securities
- Sovereign risk ratings
- Valuation techniques for government securities
- Risk and control frameworks in sovereign bond processing
Market and Credit Risks of Investing in Global Markets
- Identification of Market risks
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- Assessment of Credit Risks
- Methods for measuring Credit risks
- Broader Global Market Risks
- Money Market specific risks
- OTC market risks
- Exchange-related risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
