ACF Academy : : Operations and IT : : Fundamental Securities Operations Concepts

Category: Operations and IT

The principal objectives of this one-day seminar, viewed from an operations perspective, are to:

	Facilitate a more complete understanding of the securities trade lifecycle
	Examine aspects of the global securities industry which impact the management of trades
	Describe similarities and differences between equity and debt securities
	Explain how securities positions are managed, and the impact of new trades on positions
	Explain what causes (and prevents) Straight Through Processing


	Equity Fundamentals: • Common/ordinary, preference, convertible • Status of investor’s capital & income
	Debt Types: • Fixed, floating, zero, convertible. • Status of investor’s capital & income
	Where securities are held: • Central Securities Depositories (national, international) • Local custodians • Global custodians
	Services provided by CSDs and custodians: • Securities safekeeping • Electronic book-entry • Cash management • Asset servicing
	Security forms: • Registered versus bearer versus electronic • Certificated versus dematerialised • Registrars and coupon paying agents
	Trade & Position Concepts: • What is a trade? • What is a position? • How trades impact positions
	Date Concepts on Trades: • Meaning of trade date, value date, settlement date. • Explanation of settlement cycles and reasons for reduction.
	Settlement Methods: • Delivery versus Payment (DvP) • Free of Payment (FoP)
	Trading Methods: • Exchange-traded • OTC • Implications for settlement
	Trading Capacity: • Proprietary trading • Market making • Agency broking • Risk outlook • Implications (e.g. funding)
	Trading Books: • Purpose • Structure, • Implications on operations
	Transaction Types: • Securities • Principal • Agency • Book transfer • Repo • Securities lending/borrowing • Depot transfer. • Cash borrow/lend (secured/unsecured) • FX
	Static Data: • Purpose • Importance • Methods of updating • Maintenance • Risks • Controls
	Securities Static Data (equity/debt): • Types • Sources (including data vendors)
	Counterparty Static Data: • Standing settlement instructions • Purpose • Importance • Sources
	Trade Cash Calculation: • Equity: calculation method, market charges (e.g. stamp duty, sales tax). • Debt: calculation method, accrued interest principles.

NB All practical sessions are highlighted like this:
	means a Workshop or Simulation
	means a Case study