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Course Outline
Global Capital Markets
- Defining the concept of a 'financial marketplace'
- The historical evolution of today's global financial markets
- The influence of financial media
- Structural components of major capital markets:
- Exchanges, Clearing houses, and Regulatory bodies
- The recent surge in global investment activity
- Variations in 'Stock Exchange' types
- The positioning of Stock Exchanges within contemporary markets
- Comparative overview of US, European, Middle Eastern, and Asian Stock Exchanges
Regulation of Financial Markets:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its consequential impacts
- Drivers for New Product Development
Asset Classes and Their Corresponding Markets
- Current instruments traded on Stock Exchanges
- Equities – Ordinary and Preferred
- Bonds – Corporate and Sovereign
- Bonds – Fixed-rate, Floating-rate, and Zero-coupon; Yield Curves
- Money Market instruments
- Currency markets
- Motivations for buying and selling investments
- Income versus Capital Gains
- Interdependencies among various asset classes
- The interplay between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of Deposit
- Treasury Bills (T-Bills)
- Commercial Paper
- Trade paper and Bank Acceptances
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- General Investors
- Fund Managers
- Hedge Funds
- Direct Stock Exchange participants
- Investment Banks, Brokers, Hedge Funds, and Prime Brokers
- Intra-market dynamics – the buy and sell sides of the industry
The Function of the Stock Exchange
- Locations of product trading
- The significance of the OTC market
- Historical progression of Stock Exchanges
- Principal Stock Exchanges in the current landscape
- Architectural differences in US, European, and Asian Markets
- Asset classes traded on global Stock Exchanges
- Key Primary and Secondary markets
- New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of 'listed' companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Strategies for Capital Raising
- 'Floating' a company – various methodologies
Clearing & Settlement
- Settlement processes and associated risks
- Divergent Settlement Conventions in major markets
- Handling Equities, Bonds, and derivatives
- The Derivatives Clearing process
- The Central Counterparty (CCP) role
- CCP services offered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement phases
- Final Settlement
- Potential issues – unmatched trades, settlement delays, failed deliveries
- Stock Exchange Settlement protocols
- The 'life cycle of a trade' – integrating processes from trade 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 duties
- Income collection and Corporate Actions
- Cash management and funding transactions
- Supplementary services
- Accounting procedures
- 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
- Venture Capital – Valuation challenges, Risk, and Control
- Private Equity and Angel Finance
- Application of derivatives in Asset Management
- OTC versus Exchange-Traded Derivatives (ETD)
- Derivatives types utilized in Asset Management
- Futures
- Options
- Risks and controls related to derivatives, covering documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks involved in managing securities
- Risks linked to corporate actions
- Pricing mechanisms for quoted equity investments
- Principal sources of risk
- General controls within equity investment management
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks associated with acquiring and disposing of fixed income securities
- Utilization of ratings and associated risk considerations
- Risks related to fixed income securities pricing
- Risk management and controls in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation methods for government securities
- Risk management and controls in sovereign bond processing
Market and Credit Risks in Global Market Investing
- Market risk identification
- Value at Risk (VaR) calculations
- Market risk modelling techniques
- Credit risk assessment
- Measuring Credit risks
- Global Market risk factors
- 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.