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Course Outline
Global Capital Markets
- Defining the 'financial marketplace'
- The historical evolution of today's global financial systems
- The influence of financial media
- Architecture of major capital markets:
- Roles of exchanges, clearing houses, and regulatory bodies
- The contemporary expansion of global investment flows
- Variations in stock exchange models
- The position of stock exchanges within modern market ecosystems
- Stock exchanges in the US, Europe, the Middle East, and Asia
Regulation of Financial Markets
- Capital adequacy standards
- Basel I framework
- Basel II framework
- Basel III and its operational impact
- Implications for new product development
Asset Classes and Their Corresponding Markets
- Current instruments traded on stock exchanges
- Equities – common and preferred shares
- Bonds – corporate and sovereign issues
- Bond structures – fixed, floating, and zero-coupon rates; the yield curve
- Money market instruments
- Currency markets
- Investor motivations for buying and selling
- Income generation versus capital appreciation
- Interdependencies among different asset classes
- Interplay between exchange-traded and over-the-counter markets
Short-Term Money Markets
- Certificates of deposit
- Treasury bills
- Commercial paper
- Trade paper and bankers' acceptances
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- Individual and institutional investors
- Fund managers
- Hedge funds
- Participants in stock exchange operations
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Internal market dynamics – buy and sell sides of the industry
The Function of the Stock Exchange
- Trading venues for financial products
- The significance of the OTC market
- Historical progression of stock exchanges
- Leading stock exchanges in the current global landscape
- Architectural differences in US, European, and Asian markets
- Asset classes traded on exchanges worldwide
- Key primary and secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong exchanges
- The appeal of listed companies to investors
- Leveraging exchanges for liquidity pooling and capital raising
- Strategies for raising capital
- Methods for taking a company public ('floating')
Clearing and Settlement
- Settlement processes and associated risks
- Settlement conventions across major markets
- Handling of equities, bonds, and derivatives
- Derivatives clearing workflows
- The role of the Central Counterparty (CCP)
- CCP services provided to exchanges
- Margin requirements
- Security trade settlement procedures
- Pre-settlement activities
- Final settlement
- Common issues – unmatched trades, settlement delays, and delivery failures
- Settlement discipline in stock exchanges
- The trade lifecycle – 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 Services
- The role of custodians in stock markets
- Settlement and safekeeping
- Income collection and corporate action management
- Cash management and funding transactions
- Supplementary services
- Accounting processes
- Stock lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Defining alternative investments
- Structured products – risk and return profiles
- Hedge funds – risk management and control mechanisms
- Venture capital – valuation, risk, and control
- Private equity and angel investing
- Application of derivatives in asset management
- OTC versus Exchange-Traded Derivatives (ETD)
- Types of derivatives utilized in asset management
- Futures
- Options
- Risk and control considerations for derivatives, including documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks associated with portfolio management
- Risks arising from corporate actions
- Pricing mechanisms for quoted equities
- Primary risk sources
- General controls within equity investment
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Use of credit ratings and related risk factors
- Risks related to fixed income pricing
- Risk and control frameworks in corporate fixed income processing
- Risks associated with government securities
- Sovereign risk assessments
- Valuation of government bonds
- Risk and control measures in sovereign bond processing
Market and Credit Risks in Global Investing
- Market risk concepts
- Value at Risk (VaR) calculations
- Market risk modeling techniques
- Credit risk definitions
- Methods for measuring credit risk
- Global market risk exposures
- Money market 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.
