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Duration 14 hours
Course Outline
The Global Capital Markets
- Defining the 'financial market place'
- The historical evolution of contemporary global financial markets
- The influence of financial media
- Architectural components of major capital markets:
- Exchanges, clearing houses, and regulatory bodies
- The recent surge in global investment activities
- Varieties of 'Stock Exchanges'
- The positioning of Stock Exchanges within modern markets
- Overview of US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital adequacy standards
- Basel I framework
- Basel II framework
- Basel III framework and its broader implications
- Impacts on new product development
Asset Classes and Their Respective Markets
- Current trading instruments on Stock Exchanges
- Equities: Common and Preferred stocks
- Bonds: Corporate and Government issues
- Bonds: Fixed, floating, and zero-coupon rates, and the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Distinction between Income and Capital Gain
- Interconnections among various asset classes
- Relationships between Exchange-traded and Over-The-Counter markets
Short-Term Money Market
- Certificates of deposit
- Treasury Bills
- Commercial paper
- Trade paper and Banker's Acceptances
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- General investors
- Fund managers
- Hedge funds
- 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 product trading
- The significance of the OTC market
- Historical progression of Stock Exchanges
- Primary Stock Exchanges in today's landscape
- US, European, and Asian markets: architectural differences
- Asset classes traded on global Stock Exchanges
- Major Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- Appeal of 'listed' companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Strategies for Capital Raising
- Company 'Floating': various methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Settlement conventions in major markets
- Equities, Bonds, and derivatives
- Derivatives clearing procedures
- The Central Counterparty (CCP) role
- CCP services offered to Stock Exchanges
- Margin requirements
- Security trade settlement workflows
- Pre-settlement phases
- Settlement execution
- Common issues: unmatched trades, settlement delays, and failed deliveries
- Stock Exchange Settlement Discipline
- The 'life cycle of a trade': linking execution to settlement
- The function of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – including LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody
- The role of Custodians in Stock markets
- Settlement and safekeeping services
- Income collection and Corporate Actions
- Cash management and funding transactions
- Value-added services
- Accounting functions
- 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: Risks and control mechanisms
- Venture Capital: Valuation challenges, risk, and control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC versus ETD markets
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risk controls for derivatives, covering documentation, valuation, and reporting
Management of Quoted Equity Investment
- Risks involved in acquiring securities
- Risks involved in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Primary sources of risk
- Standard controls within equity investment
- Risks specific to international equity markets
Management of Quoted Fixed Income Investment
- Risks in acquiring and disposing of fixed income securities
- Use of credit ratings and related risk considerations
- Risks associated with fixed income pricing
- Risk controls in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation methods for government securities
- Risk controls in sovereign bond processing
Market and Credit Risks in Global Market Investing
- Market risk fundamentals
- VaR (Value at Risk) calculations
- Market risk modelling techniques
- Credit risk fundamentals
- Methods for measuring Credit risks
- Global Market risk dynamics
- Money Market risks
- OTC market risks
- Exchange-related risks
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.