Trade Lifecycle
Information
This is a One-Day version of the full course, which is Two-Days.
In today’s financial marketplace where it is imperative to identify risk situations at the earliest opportunity, it is essential that staff have:
-
an understanding of why tasks are done
-
a clear appreciation of the knock-on effects of tasks being processed well or badly
-
an understanding of the context and importance of their responsibilities.
For the management of the firm, having staff with such knowledge and awareness increases the probability of dangerous situations being highlighted early in the processing lifecycle. For the individual, enjoyment of their role can be dramatically enhanced once they appreciate their importance in successful processing, and through avoidance of monetary loss and top-quality client-servicing.
The Securities Trade Lifecycle training course is designed to provide a thorough understanding of the sequential steps in processing securities trades, with particular focus on factors enabling efficient processing, the relationships between the various components, the risks at each step and the mitigating controls. This covers both internal components (e.g. static data) and external components (e.g. Delivery versus Payment).
Following the course, each delegate will be equipped to apply all concepts to whichever part of the processing lifecycle for which they are responsible.
This course is intended to be the natural follow-on to the Fundamental Securities Operations Concepts course.
Objectives
The objectives of the course are to:
-
Convey clearly defined steps that form the trade lifecycle
-
Appreciate the value of each component within the trade lifecycle
-
Understand the relationship and dependencies within the trade lifecycle
-
Identify the risks and controls at each step in the trade lifecycle
-
Appreciate the impact of timely and accurate trade settlement
-
Appreciate the consequences of processing errors within the trade lifecycle
-
Understand the causes and impacts of failed trades
-
Understand what operational actions result in happy clients
-
Appreciate what causes (and prevents) Straight Through Processing.
This course is suitable for a novice operations audience as well as existing employees that would benefit from a broader understanding of securities processing (typically with up to 3 years’ experience).
The course contains essential concepts that all securities operations personnel should be aware of, such as the impact of failed sales, the relationship between trade confirmations and settlement instructions, what enables settlement of purchases, and what can be done to enforce settlement.
Delegates should possess a thorough understanding of basic securities operations concepts prior to attending this course; please refer to the Fundamental Securities Operations Concepts course.
Each topic (see Contents below) will be expanded and explained to the delegates in a structured manner (via linked building blocks), developing their knowledge through diagrams, ‘live’ drawings and on-the-spot explanations.
Active participation of the delegates will be encouraged, and exercises will be introduced at frequent and appropriate points.
Schedule
The following table covers the contents of the 1-day course; if required, more information will be supplied.
Securities Trade Processing
Session 1: Securities Trade Processing
- Definition & Purpose of CSDs
- Primary Functions & Services
- National & International CSDs
- DvP and FoP
- Local Custodians
- Global Custodians
Session 2: The Securities Trade Lifecycle
- Orders
- Purpose
- Who Issues Orders?
- Who Receives Orders?
- Order Types
- Trade Execution
- Order-Driven Markets
- Quote Driven Markets
- Exchange-Traded vs OTC
- Electronic Trading (incl. ECNs)
- Trade Capture (Front Office)
- Capture Methods
- Components
- Speed
- Accuracy
- Trade Capture (Operations)
- Implications of Successful Capture
- Identifying Failed Capture
- Implications of Failure to Capture
- Reasons for failed Capture
- Trade Enrichment
- Purpose
- What’s added to basic trade details
- Achieving automated enrichment
- Importance of Static Data
- Trade Agreement
- Purpose
- Methods
- Trade Confirmation (manual, electronic)
- Trade Affirmation (Oasys Global)
- Implications of Failing to Agree
- Settlement Instructions
- Purpose
- Methods
- Deadlines
- Time-Zone Differences
- Implications of Failing to Instruct
Session 3: The Securities Trade Lifecycle
- Settlement Instruction Statuses
- Status Types & Meaning
- Required Action
- Implications of Unmatched Instructions
- Failed Trades
- Definition
- Causes
- Implications
- Prevention
- Minimising Impact
- Enforcing Settlement
- Trade Settlement
- Definition
- Causes of Successful Settlement
- Partial Settlement
- Securities Only Settlement
- Cash Only Settlement
- Updating Internal Records
- Definition
- Purpose
- Implications of Successful Update
- Implications of Unsuccessful Update
- Reconciliation
- Definition
- Purpose
- Types
- Methods
- Risks
Session 4: Corporate Actions: Overview
- Purpose
- Overview of Mandatory Events
- Mandatory with Options Events
- Voluntary Events
- Processing Lifecycle
- Entitlement Calculation
- Risks & Controls
Course Close
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.