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Course Outline
The Global Capital Markets
- Understanding the concept of a 'financial marketplace'
- The historical evolution of the current global financial market
- The influence of financial media
- Structure of major capital markets:
- Exchanges, Clearing houses, and Regulatory bodies
- The recent surge in global investment activities
- Various types of 'Stock Exchanges'
- The position of Stock Exchanges in today's market landscape
- Stock Exchanges in the US, Europe, the Middle East, and Asia
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
- Instruments traded on Stock Exchanges today
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issues
- Bonds – Fixed rate, Floating rate, and Zero-coupon; understanding the Yield Curve
- Money Market instruments
- Currency markets
- Motivations for investors to buy and factors leading to selling
- Income generation versus Capital Gains
- Interconnections between various asset classes
- The relationship between Exchange-traded and Over-The-Counter (OTC) markets
Short Term Money Market
- Certificates of Deposit
- Treasury Bills (T Bills)
- Commercial Paper
- Trade Paper and Bankers' Acceptances (BAs)
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- Individual and institutional Investors
- Fund Managers
- Hedge Funds
- Participants within the Stock Exchange ecosystem
- Investment Banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Internal market dynamics – the buy side and sell side of the industry
The Role of the Stock Exchange
- Platforms where these products are traded
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in the current market
- Architectural differences in US, European, and Asian markets
- Asset classes traded on Stock Exchanges globally
- Major Primary and Secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong exchanges
- The appeal of 'listed' companies to investors
- Leveraging Stock Exchanges to pool liquidity and raise capital
- Strategies for Capital Raising
- 'Floating' a company – various methods
Clearing & Settlement
- Settlement processes and settlement risk
- Diverse Settlement Conventions in major markets
- Settlement for Equities, Bonds, and derivatives
- The procedure for Derivatives Clearing
- The role of the Central Counterparty (CCP)
- Services provided by CCPs to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement activities
- Final settlement
- Potential issues – unmatched trades, settlement delays, and failed deliveries
- Stock Exchange Settlement Discipline
- The 'life cycle of a trade' – connecting 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 and safekeeping services
- Income collection and Corporate Actions
- Cash management and funding transactions
- Value-added additional services
- Accounting services
- Stock Lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Definition 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
- OTC versus Exchange-Traded Derivatives (ETD)
- Categories of Derivatives used in Asset Management
- Futures
- Options
- Risks and controls related to derivatives, including documentation, valuation, and reporting
The Management of Quoted Equity Investment
- Risks involved in acquiring securities
- Risks involved in managing securities portfolios
- Risks stemming from corporate actions
- Pricing mechanisms for quoted equity investments
- Key sources of risk
- General controls within equity investment management
- Risks specific to international equity markets
The Management of Quoted Fixed Income Investment
- Risks associated with acquiring and disposing of fixed income securities
- Utilization of credit ratings and associated risk considerations
- Risks related to pricing fixed income securities
- Risk and control measures in corporate fixed income processing
- Risks specific to Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control measures in sovereign bond processing
Market and Credit Risks in Global Investment
- Overview of Market risks
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- Overview of Credit Risks
- Methods for measuring Credit risks
- Risks specific to Global Markets
- Risks in the Money Market
- Risks in OTC markets
- Risks in Exchange markets
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
