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Course Outline
The Global Capital Markets
- Defining a ‘financial marketplace’
- 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 contemporary markets
- Overview of US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Origins of New Product Development
Asset Classes and Their Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred
- Bonds – Corporate and Government
- Bonds – Fixed, Floating, Zero-coupon, and the Yield Curve
- Money Market instruments
- The currency markets
- Investor motivations: Why buy and sell?
- Income versus Capital Gain
- Interrelationships among various asset classes
- Integration of Exchange-traded and Over-The-Counter markets
Short-Term Money Market
- Certificates of Deposit
- Treasury Bills (T-Bills)
- Commercial Paper
- Trade Paper & Bankers' Acceptances (BAs)
- Market norms and practices
- 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 relationships – the buy-side and sell-side dynamics
The Role of the Stock Exchange
- Where these products are traded
- The significance of the Over-The-Counter (OTC) market
- Historical development of Stock Exchanges
- Premier Stock Exchanges in today’s landscape
- US, European, and Asian Markets and their distinct architectures
- Asset classes traded on global Stock Exchanges
- Major Primary and Secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong
- Why investors are attracted to “listed” companies
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Capital Raising Methods
- ‘Floating’ a company – diverse approaches
Clearing & Settlement
- Settlement processes and associated risks
- Diverse Settlement Conventions in major markets
- Equities, Bonds, and derivatives
- Process for Derivatives Clearing
- The Central Counterparty (CCP)
- CCP services provided to Stock Exchanges
- Margin requirements
- The security trade settlement process
- Pre-settlement procedures
- Settlement execution
- Potential issues – unmatched trades, delayed settlement, bad delivery
- Stock Exchange Settlement Discipline
- The ‘trade lifecycle’ – connecting trade to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – LCH.Clearnet, Euroclear, Crest, Clearstream International, and the DTC
Custody
- The role of Custodians in Stock markets
- Settlement and safekeeping
- 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, Risk, and Control
- Private Equity and Angel Finance
- Use of derivatives in Asset Management
- OTC versus Exchange-Traded Derivatives (ETD)
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, including documentation, valuation, and reporting
Management of Quoted Equity Investment
- Risks associated with acquiring securities
- Risks associated with managing securities
- Risks associated with corporate actions
- Pricing of quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks associated with international equity markets
Management of Quoted Fixed Income Investment
- Risks associated with acquiring and disposing of fixed income securities
- 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
- Valuation of government securities
- Risk and controls within sovereign bond processing
Market and Credit Risks of Global Market Investing
- Market risks
- VAR calculations
- Market risk modeling
- 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.
