Investment Operations

Securities Operations Fundamentals

Categories Introductory, Operations

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: TBD

The Securities Operations Fundamentals virtual training course is designed to provide a thorough understanding of the components that enables efficient and risk-aware securities processing. This covers both internal components (e.g. Static Data) and external components (e.g. Delivery versus Payment). After completing this course, the attendees will be equipped to apply the concepts they learned to the part of the processing lifecycle that they are responsible for.

This course is intended to be an essential pre-cursor to attending the Securities Trade Lifecycle courses.

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

Who Should Attend

The Securities Operations Fundamentals course is suitable for a novice operations audience as well as existing employees that would benefit from a broader understanding of securities processing (typically with up to 3 years of experience). The course contains essential concepts that all securities operations personnel should be aware of, such as the role that custodians play, the risks involved in issuing settlement instructions and how such risks are typically mitigated, the importance of internal static data, what settlement cycles mean and the impact of their reduction.

Agenda

DAY 1 – Products & Players

Equity Fundamentals

  1. Common/Ordinary
  2. Preferred
  3. Convertible
  4. Status of Investor’s Capital & Income

Debt Fundamentals

  1. Fixed Rate Bonds
  2. Floating Rate Notes
  3. Zero-Coupon Bonds
  4. Convertible Bonds
  5. Status of Investor’s Capital & Income

Trade & Position Concepts

  1. What is a Trade?
  2. What is a Trading Position?
  3. What is a Settled Position?
  4. Impact of Trades on Positions

Date Concepts on Trades

  1. Meaning of Trade Date
  2. Meaning of Value Date
  3. Meaning of Settlement Date

Where Securities are Held

  1. Central Securities Depositories
  2. National CSDs
  3. International CSDs
  4. Local Custodians
  5. Global Custodians
  6. Similarities & Differences

Services Provided by CSDs & Custodians

  1. Securities Safekeeping
  2. Electronic Book-Entry
  3. Cash Management
  4. Asset Servicing

Security Forms

  1. Registered Form
  2. Bearer Form
  3. Registrars
  4. Coupon Paying Agents
  5. Certificated vs Dematerialised/Immobilised

Settlement Cycles

  1. Account Settlement
  2. Rolling Settlement
  3. Reasons for Reduction (G30)

Summary & Questions

DAY 2 – Settlement, Asset Servicing & Data

Settlement Methods

  1. Settlement Risks
  2. Delivery versus Payment
  3. Free of Payment (with/without risk)

 Trading Capacity

  1. Proprietary Trading
  2. Market Making
  3. Agency Broking
  4. Risks & Implications

Trading Methods

  1. Exchange-traded
  2. OTC
  3. Settlement & Operations Implications

Trading Books

  1. Purpose
  2. Structure
  3. Operations Implications

Transaction Types

  1. Principal
  2. Agency
  3. Book Transfer
  4. Repo
  5. Securities Lending & Borrowing
  6. Depot Transfer
  7. Cash Borrowing & Lending (secured/unsecured)
  8. Foreign Exchange (re X-ccy settlement)

Static Data and Straight Through Processing

  1. Purpose
  2. Importance
  3. Methods of Updating
  4. Maintenance & Security
  5. Risks & Controls

Securities Static Data

  1. Types (Equity & Debt)
  2. Content
  3. Uses (e.g. market charges, accrued interest)
  4. Sources (including Data Vendors)

Counterparty Static Data

  1. Standing Settlement Instructions
  2. Trade Confirmation Preferences
  3. Sources (manual & electronic)

Trade Cash Value Calculation

  1. Calculation Method
  2. Market Charges (e.g. sales tax, stamp duty)
  3. Accrued Interest Principles
  4. Accrued Interest (incl. straight, FRN)

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: TBD

The Securities Operations Fundamentals virtual training course is designed to provide a thorough understanding of the components that enables efficient and risk-aware securities processing. This covers both internal components (e.g. Static Data) and external components (e.g. Delivery versus Payment). After completing this course, the attendees will be equipped to apply the concepts they learned to the part of the processing lifecycle that they are responsible for.

This course is intended to be an essential pre-cursor to attending the Securities Trade Lifecycle courses.

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

Who Should Attend

The Securities Operations Fundamentals course is suitable for a novice operations audience as well as existing employees that would benefit from a broader understanding of securities processing (typically with up to 3 years of experience). The course contains essential concepts that all securities operations personnel should be aware of, such as the role that custodians play, the risks involved in issuing settlement instructions and how such risks are typically mitigated, the importance of internal static data, what settlement cycles mean and the impact of their reduction.

Agenda

DAY 1 – Products & Players

Equity Fundamentals

  1. Common/Ordinary
  2. Preferred
  3. Convertible
  4. Status of Investor’s Capital & Income

Debt Fundamentals

  1. Fixed Rate Bonds
  2. Floating Rate Notes
  3. Zero-Coupon Bonds
  4. Convertible Bonds
  5. Status of Investor’s Capital & Income

Trade & Position Concepts

  1. What is a Trade?
  2. What is a Trading Position?
  3. What is a Settled Position?
  4. Impact of Trades on Positions

Date Concepts on Trades

  1. Meaning of Trade Date
  2. Meaning of Value Date
  3. Meaning of Settlement Date

Where Securities are Held

  1. Central Securities Depositories
  2. National CSDs
  3. International CSDs
  4. Local Custodians
  5. Global Custodians
  6. Similarities & Differences

Services Provided by CSDs & Custodians

  1. Securities Safekeeping
  2. Electronic Book-Entry
  3. Cash Management
  4. Asset Servicing

Security Forms

  1. Registered Form
  2. Bearer Form
  3. Registrars
  4. Coupon Paying Agents
  5. Certificated vs Dematerialised/Immobilised

Settlement Cycles

  1. Account Settlement
  2. Rolling Settlement
  3. Reasons for Reduction (G30)

Summary & Questions

DAY 2 – Settlement, Asset Servicing & Data

Settlement Methods

  1. Settlement Risks
  2. Delivery versus Payment
  3. Free of Payment (with/without risk)

 Trading Capacity

  1. Proprietary Trading
  2. Market Making
  3. Agency Broking
  4. Risks & Implications

Trading Methods

  1. Exchange-traded
  2. OTC
  3. Settlement & Operations Implications

Trading Books

  1. Purpose
  2. Structure
  3. Operations Implications

Transaction Types

  1. Principal
  2. Agency
  3. Book Transfer
  4. Repo
  5. Securities Lending & Borrowing
  6. Depot Transfer
  7. Cash Borrowing & Lending (secured/unsecured)
  8. Foreign Exchange (re X-ccy settlement)

Static Data and Straight Through Processing

  1. Purpose
  2. Importance
  3. Methods of Updating
  4. Maintenance & Security
  5. Risks & Controls

Securities Static Data

  1. Types (Equity & Debt)
  2. Content
  3. Uses (e.g. market charges, accrued interest)
  4. Sources (including Data Vendors)

Counterparty Static Data

  1. Standing Settlement Instructions
  2. Trade Confirmation Preferences
  3. Sources (manual & electronic)

Trade Cash Value Calculation

  1. Calculation Method
  2. Market Charges (e.g. sales tax, stamp duty)
  3. Accrued Interest Principles
  4. Accrued Interest (incl. straight, FRN)

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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