The Securities and Derivatives Operations and Processing training course covers the clearing and settlement processes for securities and derivatives instruments. It focuses on the entire process from decision making to purchasing or selling a security, to actual settlement including all the operational processes. It also examines the border settlements in the major markets and the market players. Finally, the course addresses all the recent industry changes including the impact of regulatory changes and operational risk issues and developments.

Attend this comprehensive 3–day training course and get an in-depth coverage of:

• Operational processes and procedures for securities and the most commonly used derivative instruments
• The role of the exchanges, securities depositories and clearing houses in securities and derivatives operations and processing
• Payments, movement of securities, corporate actions and securities lending
• Regulation affecting securities and derivatives processing and operational risk issues

Who Should Attend?

• Settlement officers in FX, securities and derivatives departments
• Operations officers
• Operational risk managers
• Risk controllers
• Middle and back office managers
• Compliance officers
• Custodians
• Clearing house staff
• Auditors
• Accountants

Course Level

This is an introductory to intermediate level course designed for back office operations and middle office staff who wish to obtain a complete overview of the operations and processes of securities and derivatives instruments and a greater understanding of how securities are traded in the front office.

Day 1

Securities

Securities products in both mature and emerging markets are covered and compared

Equities and Debt

• Characteristics of equities
• Characteristics of debt and money market instruments (bonds, notes etc)
• Issuance and listing
• Shareholders and stock holders

The Role of the Exchanges, Securities Depositories and Clearing Houses

• Securities trading
• The execution process of a transaction for a trader, broker and an investment manager
• The clearing process
  Clearing houses
  Matching systems
  Confirmation networks
• The settlement process
  Securities depositories
  Settlement agents
  Role of custodians
  Role of fund administrators
• The role of the middle and operations/back office teams

Workshop: The Trade Cycle for an Equity and a Debt Security

• Pre trade and execution
• Clearing and matching
• Controls, verification and confirmation
• Ledger postings
• Pre settlement
• Settlement
• Ledger postings, statements  and reports

Day 2

Derivatives

The most commonly used derivatives are explained and the processes and procedures for their clearing and settlement described

Derivatives

• Characteristics of products
• On exchange and OTC derivatives
• Issuance and listing
• Agreements

The Role of the Exchanges and Clearing Houses

• On exchange and OTC derivatives trading
  Client orders and the role of brokers and dealers/traders in the execution of trades
• The clearing process
  Clearing houses
  Margin process
  Delivery
• The settlement process
  Variation margin
  Initial margin
  Option premiums and OTC settlement
  Role of clearing brokers
  Role of custodians
  Role of fund administrators
• The role of the middle and operations/back office teams

Workshop: The Trade Cycle for an on Exchange and OTC Derivative

• Pre trade and execution
• Clearing and matching
• Controls, verification and confirmation
• Ledger postings
• Pre settlement
• Settlement
• Margining and collateral management
• Ledger postings, statements  and reports

Day 3

Operational Processes and Procedures

On the final day we look at the key areas of payments, movement of securities, corporate actions, securities lending and a brief look at regulation and risk to complete our workshop

Payments and Securities Settlement

• Role of the payment and settlement systems
  Target2
  Target2 securities
  CLS Bank
  Euroclear and Clearstream
• Role of SWIFT and other communication processes
• Settlement instructions

Securities Lending

• What it is?
• Players
• Process flows and controls in securities lending
  Collateral management

Corporate Actions

• Types of corporate actions including
  Rights
  Scrip and bonus
  Splits and consolidations
  Spin offs
  Capital return
  Takeovers and mergers
• Processing corporate actions
  Role of the operations team
  Instructions and communications
  Role of custodians and administrators
• Corporate action cycle
  Announcement
  Ex, record and pay dates
  Entitlement
  Elections and processing
  Ledger postings
  Impact on derivatives positions

Overview of Risk and Regulation

Brief introduction to regulation that affects securities and derivatives processing and the operational risk issues.

The course program contains case studies, workshops and documentation relevant to each subject area including a comprehensive glossary of terms.

Course summary and close

 

• David Loader

  David Loader has been involved in the financial markets for over 30 years during which time he has worked in a variety of roles within fund management, operations, and investment banking.

  His experience covers both front office and operations functions, having held positions as Director of S.G.Warburg Securities Ltd, Operations Director of Warburg Futures & Options Ltd and Director Exchange Traded Derivatives at SBC. David now specialises in training and consultancy in the area of fund administration and operations, settlement, custody, operational risk and subjects related to securities and derivatives trading and investment.

  David works with clients in the United Kingdom and Channel Islands as well as internationally in Singapore, Malaysia, Belgium, France, The Netherlands, Austria, Germany, Gibraltar, Malta, Cyprus, Monaco, Lebanon, Abu Dhabi, Kuwait, Dubai, Bermuda, Panama, India, Mauritius, The Seychelles, Switzerland, USA, India, Australia and Ireland.

  David is also the author of many finance and investment textbooks published by Wiley, Elsevier and The Securities & Investment Institute. He is a member of Worshipful Company of International Bankers, The Securities and Investment Institute and the Institute of Directors.
  

Securities and Derivatives Operations and Processing

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

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