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Course Outline
The Global Capital Markets
- Defining a ‘financial marketplace’
- The historical evolution of today’s global financial markets
- The influence of financial media
- Structure of major capital markets:
- Exchanges, Clearinghouses, and Regulators
- The modern surge in global investment
- Various types of ‘Stock Exchanges’
- The role of Stock Exchanges in today’s markets
- US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Drivers for New Product Development
The Different Asset Classes and Their Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred
- Bonds – Corporate and Government
- Bonds – Fixed, Floating, and Zero coupon; the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations: drivers for buying and selling
- Income vs. Capital Gain
- Interrelationships between various asset classes
- The interplay between Exchange-traded and Over-The-Counter markets
Short Term Money Market
- Certificates of deposit
- T-Bills
- Commercial paper
- Trade paper & Bankers' Acceptances (BAs)
- Market norms and practices
- Key market participants
The Different Types of Stock Exchange Investor
- Investors
- Fund managers
- Hedge funds
- Stock Exchange participants
- Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market relationships – the buy-side and sell-side dynamics
The Role of the Stock Exchange
- Trading venues for these products
- The significance of the OTC market
- The historical development of Stock Exchanges
- Major Stock Exchanges in today’s markets
- US, European, and Asian Markets and their architectural differences
- Asset classes traded on Stock Exchanges globally
- Primary and Secondary markets
- Key exchanges: New York, Euronext, London, Shanghai, Hong Kong
- The appeal of ‘listed’ companies to investors
- Utilizing Stock Exchanges to pool liquidity and raise capital
- Methods of Capital Raising
- ‘Floating’ a company – various methods
Clearing & Settlement
- Settlement and settlement risk
- Different Settlement Conventions in major markets
- Equities, Bonds, and derivatives
- The process for Derivatives Clearing
- The Central Counterparty (CCP)
- CCP services provided to Stock Exchanges
- Margin requirements
- The security trade settlement process
- Pre-settlement phase
- Settlement phase
- Potential issues – unmatched trades, delayed settlement, bad delivery
- Stock Exchange Settlement Discipline
- The ‘life cycle of a trade’ – linking the process from trade to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – LCH.Clearnet, Euroclear, Crest, Clearstream International, the DTC
Custody
- The role of Custodians in stock markets
- Settlement and safe keeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Additional services
- Accounting
- Stock Lending and collateral management
- Trustee services
- Valuation reports
Alternative Investments
- Definition of Alternative Investments
- Structured products – Risks and returns
- Hedge funds – Risks and Control
- Venture Capital – Valuation issues, Risk, and Control
- Private Equity/Angel Finance
- The use of derivatives in Asset Management
- OTC vs. ETD
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, including documentation, valuation, and reporting issues
The Management of Quoted Equity Investment
- Risks associated with acquiring securities
- Risks associated with managing securities
- Risk associated with corporate actions
- Pricing of quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks associated with international equity markets
The Management of Quoted Fixed Income Investment
- Risks associated with acquiring and disposing of fixed income securities
- The use of ratings and associated risk issues
- Risks associated with pricing of fixed income securities
- Risk and controls within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- The valuation of government securities
- Risk and controls within sovereign bond processing
The Market and Credit Risks of investing in Global Market
- Market risks
- VAR calculations
- Market risk modelling
- Credit Risks
- Measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
