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Life Cycle of Financial Market
Instruments’ Trading
- Course Outline
Course Aims
To provide a good understanding of the financial market
instruments traded by investment bankers and the various processes from
originating order to final settlement.
Participants will understand:
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The various market instruments including equities, bonds, repos, swaps,
financial derivatives, foreign exchange, commodities
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How the instruments interrelate
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Hedging one instrument with another
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The separate functions of trading systems from order capture to settlement
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System and process interfaces and requirements.
Course Objectives
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To explain the differences and relationships between market instruments
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To explain how each instrument type is used by the various investing and
banking participants
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To enable comprehension of the functionality of systems and processes to
cater for the different requirements for each instrument type
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To split the functionality required of different systems and processes
referred to as "trading systems" and see how they interface one to
another
Day 1
– Market Instruments
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Explanation of each instrument
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Relationships between instruments
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Hedging one instrument against another
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Use of instruments by various market participants
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Requirements for the life cycle of a trade
Day 2
– Systems and Processes
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Map the systems and processes required at an investment bank to process a
trade
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Functional requirements for each system/process
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Discuss the interfaces between systems, including where functionality
within systems could be combined/separated
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Automatic versus manual processing – not everything is computerised
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External system interfaces to markets, government authorities, information
suppliers and, most importantly the users
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