Securities Settlement, Clearing & Global Custody
This course provides a thorough understanding of the securities settlement and global custody industry in order to give confidence to operations and middle office staff in dealing with the front office. It looks at every stage of the process , from decision making to purchasing or selling a security, to actual settlement and safekeeping.
Course Highlights
The content was fantastic and it was delivered very well
T.H., Morgan Stanley
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
For details of the course trainer, please download the course brochure
Booking Information
| Dates | Prices | Book This Course | Discount |
|---|---|---|---|
| 06 - 07 Dec 2010 |
£ 1999 |
 |
-
|
Course Programme
The content was fantastic and it was delivered very well
T.H., Morgan Stanley
The presenter is very competent and has a very effective way of communicating. The course content was carefully compiled and presented in a professional manner
E.A., European Central Bank
What I liked most about this course was the experience and expertise of the course leader
A.R., Railpen Investment
Introduction to settlement
- Principles of securities and derivatives settlement
- Demystifying the jargon
- The G30 and ISSA
- 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
- Issues surrounding contingency trading
The role of the settlements department
- Importance of settlement
- Relationships and responsibilities
- Management information: management reports
- Explaining the relationships with at least five of the counterparties dealt with in the settlement of a typical trade
Settlement conventions
- What are they and how do they differ by security class in major markets?
- equities
- bonds
- derivatives
- Describing the generic process used for clearing derivatives
- Understanding the basics of margining
Processes in settlement
- Pre-settlement
- input of settlement instructions
- input scenarios
- matching
- monitoring transactions
- changing transaction input
- shaping deliveries –splits
- Settlement
- priorities and queues
- circle processing
- monitoring transaction settlement
- electronic transfer of title (ETT)
- bad deliveries
- SDRT
- The importance of securities timing
- Overcoming problem areas
- Cash management and FX - timing and importance
- Settlement for residual securities
- Derivatives settlement
- The importance of reconciliation
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 7 linked phases of processing
- The communications chain - ICSD's, CSD's, etc.
- Trade settlement - demystifying the jargon
- Market practice: cut-off and value dates
- Safekeeping
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 - SWIFT etc.
- banking facilities
Global custody – value-added services
- Investment accounting
- Master custody / master record-keeping
- Securities lending, equity repos and collaterals
- Trustee services
- Portfolio valuation
- Collateral management
- Describing how securities lending operates in simple terms
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
- Changes taking place in the industry
- RTGS
- STP
- Alliances
- Other Industry Initiatives
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