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

METHODOLOGY

The instructor led trainings are delivered using a blended learning approach and comprises of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields.

All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.

ACCREDITATION

Upon successful completion of this training, participants will be issued with Intensive Training Institute (ITI) certificate certified by the National Industrial Training Authority (NITA).

TRAINING VENUE

The training will be held at ITI Training Centre. The course fee covers the course tuition, training materials, two break refreshments and lunch.

All participants will additionally cater for their, travel expenses, visa application, insurance, and other personal expenses.

ACCOMMODATION AND AIRPORT PICKUP

Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer.

Email: info@dev.skillsstackinstitute.com

Mob: +254 727324901

TAILOR- MADE

This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our ITI Training Centre or at a convenient location.

For further inquiries, please contact us on Tel: +254 727324901 or mail info@dev.skillsstackinstitute.com

Course Fees

One on One training -KES 180,000 / USD 2200