Course Introduction

To enhance participants’ knowledge on the principles of financial market infrastructure and how these principles help in safety and efficiency in payments, clearing, settlement, and recording arrangements, reduction in systemic risk and fostering transparency and financial stability.

Target participants

Staff dealing with financial markets instruments both from Central Banks and financial markets players

What you will learn

By the end of this training, you should be able to:

To create awareness in the development, challenges and risks in the financial markets. It is also intended to enhance their knowledge on the ever-emerging financial instruments.

• The main products and major participants in the financial marketplace
• The critical parts of the financial market infrastructure
• How products are used and why marketplace participants trade and invest
• How and why such products are brought to the marketplace
• How trades are executed and how marking-to-market and realised/unrealised profit & loss concepts are related to trade execution
• The concept of trade lifecycle, settlement and the impact of settlement failure
• The main purposes and similarities/differences of central securities depository and a custodian
• The differences between Over-the-Counter (OTC) and On-Exchange trading/settlement including rationale for use
• The purpose and impact of equity-related & bond-related corporate actions
• The impacts of digitalization and automation incl. auto-execution, high-frequency
• Key regulation on marketplace participants including main objectives and drivers of regulation including Dodd Frank, EMIR, MiFID

Course Duration

•    10 days

Day 1: The Financial Services Environment: Essential Concepts and Terminology

• Which financial products are traded and why incl. Cash; Securities (Equity, Bonds); Derivatives; Commodities
• How financial products are categorized incl. the Capital Market, the Money Market, the Foreign Exchange Market, the Derivatives Market, the Commodities Market
• Major Participants, their motivations and objectives

Day 2: Securities Products

• Equity and Debt Characteristics: Similarities and Differences
• Debt Types

Day 3: Bringing Securities to the Marketplace: Equity & Debt Primary Market

• Equity: IPO
• Government Debt: Auction
• Non-Government Debt: Syndication
• Trading venues, including investment exchanges and multilateral trading facilities

Day 4: The Front Office: Structure & Responsibilities of Trading and Sales

• Trading incl. Traders, trading capacity, trading books, taking positions, risk etc.
• Sales incl. relationships, order placements, identifying issues etc.
• Impact of automation, high-frequency and innovation

Day 5: The Middle Office: Typical Responsibilities of Trade Support/Confirmation, Risk Management, Reporting

• Trade capture
• Issues impacting settlement
• Risk management and P&L Calculation

Day 6: Back Office Operations: Key Responsibilities of Pre-matching, Settlements, Corporate Actions, Asset Servicing and Static Data

• Static Data
• Ensuring Trade Details Are Agreed by Counterparties
• Trade Settlement
• Securities and Cash Reconciliation
• Processing of Income, Withholding Tax and Corporate Actions

Day 7: Trading and Settling Securities Trades: Securities Trade Lifecycle Overview

• Trading Methods (Exchange trading versus OTC)
• Trade Execution (Legal contract and firm’s commitment)
• Trade Capture
• Trade Confirmation (SWIFT and Central Trade Manager)
• Trade Settlement
• Asset Reconciliation (Reconciling securities positions & cash balances at CSD/custodian)

Day 8: Key Market Infrastructure Participants

Having learnt about the market, key stakeholders and their role in trade processing, this section focuses on the infrastructure participants themselves and the multi-functional roles they perform to ensure the market works effectively.

• Stock exchanges (LSE, NYSE, NASDAQ)
• Multi-lateral trading facilities
• Central counterparties clearing houses (CCPs)
• Central securities depositories (CSDs & ICSDs)
• Trade repositories
• Custodians
• Payment systems
• Information vendors

Day 9: Key Regulation on marketplace

• Key regulation and objectives, covering Dodd Frank, EMIR, MiFID, CSDR, AIFMD
• Impact of regulation and anticipated future trends
• KYC requirements
• Anti-Money Laundering (AML)

 Day 10: Key Regulation on marketplace

• Case study on assessment methodology
• Group presentation on assessment methodology
• Recap
• Closure and issuance of certificates

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, presentation, group works and case studies.

Training notes and additional reference materials are provided to the participants.

Course Fees

• KES 155,000 – USD 2200

Certification

Upon successful completion of this course, participants will be issued with a certificate.