Global Financial Operations - Processes, Management and Regulation

3 days
Prague, NH Hotel Prague
  • Objectives and Responsibilities of Operations
  • Risk Management in Operations and Business Continuity Planning
  • Trading Environments for OTC and Exchange Traded Products
  • Processes of Clearing and Settlement
  • CCPs, CSDs, Euroclear and Clearstream
  • Regulatory Environment and International Conventions
This course presents details of the dealing environment and the downstream operational procedures that follow including deal confirmation, clearing and settlement. It will define the responsibilities of managers and supervisors working in operational disciplines in financial institutions and explain the procedures and controls required in post-trade disciplines.

Learning Objectives

Delegates will come away from the course with an understanding of the importance of operations management. The course focuses on particular characteristics of product groups, including equities, fixed income securities, foreign exchange, funds and derivatives.

Those participating in this course will also widen their understanding of the contribution that Operations makes to an institution in the modern financial marketplace:
  • How to manage operational processes
  • Learn which issues that represent operational risk to the firm and how to control them
  • Enhance product knowledge

Interactive classroom learning includes up-to-date case studies and exercises to provide a strong base for learning.

Session 1

This session will review the core requirements of an effective operational structure and will bring into focus the external forces which shape the development of operational disciplines. It will define the key processes of clearing and settlements and bring out the importance in Operations of the support and management of reference data.

  • The role and scope of Operations
  • Objectives and responsibilities of Operations
  • Overview of clearing & settlement
  • The Group of 30 (G30)
  • G30 recommendations
  • Relevance of reference data to the Operations department

Session 2

This session concentrates on risk management in Operations. It will show how operational teams, their processes and systems act as a vital element of a firmís risk management process. We shall go on to detail the ways in which firms must plan to cope with risk events which might threaten their entire business and we draw conclusions as to the business continuity and business availability measure which result.

  • Focus on Risk
  • Market risk
  • Credit risk
  • Operational risk
  • Systemic, reputational and other risks
  • Disaster recovery and business continuity planning (BCP)

Session 3

This session looks at the operations managerís ability to organise projects within the firm. As an example, we look at STP and highlight the essential aspects of this approach as applied to securities trading organisations and banks. The second half of the session examines the dealing environments with which operations teams must interface. We compare the differing demands placed upon Operations by exchanges and OTC environments.

  • Managing projects
  • Straight through processing (STP)
  • Trading environments
  • The role and services of exchanges
  • Comparison of OTC and exchange traded products

Day Two

Session 4

This session addresses the detail involved within clearing and settlement, perhaps the core of Operations. We compare the processes in the pre- and post-trade environments and review some of the techniques which exist and apply them to different asset classes.

  • The processes of clearing and settlement
  • Confirmation matching
  • Reconciliation
  • Settlement disciplines
  • DvP
  • Payment systems

Session 5

This wide-ranging session addresses the key attributes of securities settlement and reviews the respective roles of the CSDs and Central Counterparty organisations, using many international examples. We then turn our attention to the varying asset classes and then move on to look at derivatives, exploring the differences that such instruments present to operational systems.

  • The role of Central Securities Depositories (CSDs)
  • The role of the International CSDs Ė Euroclear and Clearstream
  • DTCC services
  • Central counterparties (CCPs)
  • Products and markets
  • The Lamfalussy principles
  • Focus on derivative products
  • Hedge fund operations
  • Prime brokerage services
  • Margining principles
  • Derivatives clearing houses

Day Three

Session 6

This final session begins by describing the regulatory impacts upon Operations and explores the practical challenges of outsourcing services. This is followed by a detailed review of corporate actions and asset servicing issues in a custody environment. We complete the course by conducting an appraisal of the demands of some market segments including retail products and emerging markets and we examine some niche areas such as stock lending.

  • Basel 2 and the CRD
  • Outsourcing
  • Global custody
  • Corporate actions and asset servicing
  • The regulatory environment
  • International settlement conventions
  • S.W.I.F.T.
  • Stock lending
  • Retail products
  • Emerging markets
  • The Internet

Evaluation and Termination of the Course

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