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Course Outline
Global Capital Markets
- Defining a 'financial market place'
- The historical evolution of today's global financial markets
- The influence of financial media
- Architecture of major capital markets:
- Exchanges, Clearing Houses, and Regulatory Bodies
- The contemporary surge in global investment
- Various types of 'Stock Exchanges'
- The position of Stock Exchanges in modern markets
- Comparative overview of US, European, Middle Eastern, and Asian Stock Exchanges
Regulation of Financial Markets
- Capital Adequacy Requirements
- Basel I Framework
- Basel II Framework
- Basel III and its broader implications
- Innovations in New Product Development
Asset Classes and Their Respective Markets
- Current instruments traded on Stock Exchanges
- Equities: Common and Preferred shares
- Bonds: Corporate and Government issues
- Bond structures: Fixed, Floating, Zero coupon, and the Yield Curve
- Money Market instruments
- Currency markets
- Investor motivations: drivers for buying and selling
- Dynamics of Income versus Capital Gain
- Interconnections among different asset classes
- The relationship between Exchange-traded and Over-The-Counter (OTC) markets
Short-Term Money Markets
- Certificates of Deposit
- Treasury Bills
- Commercial Paper
- Trade Paper and Bank Acceptances (BAs)
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- Individual and Institutional Investors
- Fund Managers
- Hedge Funds
- Direct Stock Exchange participants
- 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 various products
- The significance of the OTC market
- Historical development of Stock Exchanges
- Leading Stock Exchanges in the current landscape
- Distinguishing architectural features of US, European, and Asian markets
- Asset classes traded on exchanges worldwide
- Key Primary and Secondary markets
- Major hubs: New York, Euronext, London, Shanghai, Hong Kong
- 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 and Settlement
- Settlement mechanics and associated risks
- Divergent Settlement Conventions across major markets
- Processing Equities, Bonds, and Derivatives
- Procedures for Derivatives Clearing
- The role of the Central Counterparty (CCP)
- CCP services delivered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement processes
- Final Settlement
- Potential issues: unmatched trades, settlement delays, and failed deliveries
- Stock Exchange Settlement protocols
- The 'life cycle of a trade': tracing the path from execution to settlement
- The function of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs): LCH.Clearnet, Euroclear, Crest, Clearstream International, and DTC
Custody Services
- The role of Custodians in stock markets
- Settlement and safekeeping of assets
- Income collection and Corporate Actions processing
- 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 Financing
- Application of derivatives in Asset Management
- OTC versus ETD markets
- Derivative instruments utilized in Asset Management
- Futures contracts
- Options
- Risk controls for derivatives, covering documentation, valuation, and reporting
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks involved in managing securities portfolios
- Risks stemming from corporate actions
- Pricing mechanisms for quoted equity investments
- Primary sources of risk
- Standard controls within equity investment management
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks associated with buying and selling fixed income securities
- Utilization of credit ratings and related risk considerations
- Pricing risks for fixed income securities
- Risk and control frameworks for corporate fixed income processing
- Risks specific to Government Securities
- Sovereign risk assessments
- Valuation methods for government securities
- Risk and control measures for sovereign bond processing
Market and Credit Risks in Global Market Investing
- Identification of Market risks
- Value at Risk (VAR) calculations
- Modelling Market risk
- Assessment of Credit Risks
- Metrics for measuring Credit risk
- Global Market specific risks
- Money Market specific 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.