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Course Outline
Global Capital Markets
- The definition of a ‘financial market place’
- The historical evolution of the contemporary global financial system
- The influence of financial media
- The architecture of major capital markets:
- Roles of exchanges, clearing houses, and regulatory bodies
- The recent surge in global investment activity
- Various forms of ‘Stock Exchanges’
- The position of Stock Exchanges in the current market landscape
- Stock Exchanges in the US, Europe, the Middle East, and Asia
Regulation of Financial Markets:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its strategic implications
- Implications for New Product Development
Asset Classes and Their Corresponding Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred shares
- Bonds – Corporate and Government issues
- Bonds – Fixed, floating, and zero-coupon rates; understanding the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations for buying and selling
- Distinguishing between Income and Capital Gains
- Interconnections among different 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 & Bankers’ Acceptances (BAs)
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- General investors
- Fund managers
- Hedge funds
- Participants in the Stock Exchange
- Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market dynamics – the buy and sell sides of the industry
The Function of the Stock Exchange
- Trading venues for financial products
- The significance of the OTC market
- The historical development of Stock Exchanges
- Leading Stock Exchanges in the current market
- Architectural differences in US, European, and Asian markets
- Asset classes traded on exchanges worldwide
- Major Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of ‘listed’ companies to investors
- Utilizing Stock Exchanges for liquidity pooling and capital raising
- Methods of Capital Raising
- ‘Floating’ a company – various approaches
Clearing & Settlement
- Settlement processes and associated risks
- Differing Settlement Conventions in major markets
- Handling of Equities, Bonds, and Derivatives
- The Derivatives Clearing process
- The Central Counterparty (CCP)
- Services provided by CCPs to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final Settlement
- Potential issues – unmatched trades, settlement delays, and delivery failures
- Settlement Discipline within Stock Exchanges
- The ‘life cycle of a trade’– integrating the process from 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 role of Custodians in Stock markets
- Settlement and safekeeping services
- Income collection and Corporate Actions
- Cash management and funding transactions
- Additional value-added services
- Accounting processes
- 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 & Angel Finance
- Application of derivatives in Asset Management
- OTC vs. Exchange-Traded Derivatives (ETD)
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risk and control mechanisms for derivatives, including documentation, valuation, and reporting
Management of Quoted Equity Investments
- Risks involved in acquiring securities
- Risks associated with managing securities
- Risk exposure from corporate actions
- Pricing methodologies for quoted equity investments
- Primary sources of risk
- General controls within equity investment management
- Risks specific to international equity markets
Management of Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- The use of credit ratings and related risk considerations
- Risks associated with pricing fixed income securities
- Risk and control measures in corporate fixed income processing
- Risks linked to Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and control measures in sovereign bond processing
Market and Credit Risks in Global Market Investing
- Identification of Market risks
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- Identification of Credit Risks
- Methods for Measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange-related risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.