Securities Settlement, Clearing & Global Custody Training Course

Attend this intensive two-day training course and equip yourself with a clear knowledge and understanding of:

• The role of the settlements department
• Settlement conventions and how they differ by security class in major markets
• Pre-settlement and settlement processes
• Global custody: core services and value-added services
• Common types of corporate actions and the growing importance of proxy voting
• Industry trends and recommendations

Scroll down for agenda or book onto this course.

Introduction to Settlement

• Principles of securities and derivatives settlement
• Demystifying the jargon
• The regulatory environment
• Describing the steps in a typical trade cycle
• Industry initiatives driving change in the market

The Role of the Exchanges and Clearing Houses

• What is the role of the exchanges
• What is the role and function of the clearing house
• Assessing the impact of the consolidation of exchanges and clearing houses across markets

The Role of the Settlements Department

• Importance of settlement
• Relationships and responsibilities with key internal and external parties
• Front Office/Middle Office/Back Office interaction
• Management information: management reports and how to use them

Workshop: Road Maps 1

• Explaining the relationships with the counterparties dealt with in the settlement of a typical trades on and off exchange
  – equities
  – debt
  – derivatives

Settlement Conventions

• What are they and how do they differ by security class in major markets?

Workshop:

• Explaining the high level process flow from trade to settlement for
  – equities
  – bonds
  – derivatives
• Describing the margin call process
• Understanding the basics of collateral management

Settlement Processes in Detail

• Pre-settlement
  – input of settlement instructions
  – input scenarios
  – matching
  – monitoring transactions
  – amending transactions
  – asset and cash position management
• Settlement
  – priorities and queues
  – circle processing
  – monitoring transaction settlement
• Settlement Fails
  – why they happen
  – managing the process
  – claims
• The importance of securities timing
• Overcoming problem
• Cash management and FX – timing and importance
• The importance of reconciliation to between the customer and the custodian

Introduction to Global Custody and Derivatives Clearing

• Users and providers
• The role of the derivatives clearing broker
• Context of global custody and primary functions
• Sub custodian/Payment systems overview
• Life cycle of a trade - the phases of processing and the role of custodians, agents and brokers
• The communications chain - ICSDs, CSDs, custodians, middle and back office
• Demystifying the jargon
• Market practice: cut-off and value dates
• Custody agreements

Global Custody – Core Services

• Explaining what services a global custodian and derivative clearer needs to offer its clients
  – settlement
  – safekeeping of securities
  – income collection
  – corporate actions management
  – cash management
  – funding
  – tax management
  – reporting - the information chain eg.SWIFT
  – banking facilities

Global Custody – Value-Added Services

• Investment accounting
• Record-keeping
• Securities lending and collateral
  – describing how securities lending operates in simple terms
• Trustee services
• Portfolio valuation
• Collateral management

Corporate Actions

• What are they?
• Why do they occur?
• Common types of corporate actions and examples
• Impact of corporate actions on derivative products
• The growing importance of proxy voting
• Importance of timing
• Industry initiatives

Overview Of Operational Risk

• Definition of settlement risk
• Examples of what can go wrong
• Emerging markets risk
• Industry recommendations: G30 and ISSA
• Understand the impact of shorter settlement times, why real time settlement reduces risk
• Industry trends and the future

Wrap-up Workshop

Delegates will produce a detailed overview of the clearing and settlement environment including key players, processes and issues for a new hire in the audit department.

This course has been designed to cover the most important aspects of settlements and describe the whole process, from decision making to purchasing or selling a security, to actual settlement and safekeeping. It examines the way in which crossborder transactions are settled in the major markets, the players who operate in it and the instruments that need to be settled. It will also examine the changes taking place in the industry. With its emphasis and focus on the practicalities of settling trades, this course is a must for new entrants in this area.