ACF Academy : : Operations and IT : : The Securities Trade Lifecycle

The principal objectives of this one-day seminar, viewed from an operations perspective, are to:

	Convey clearly defined steps that form the trade lifecycle
	Facilitate a complete understanding of 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 impact of failed trades
	Understand what operational actions result in happy clients
	Appreciate what causes (and prevents) Straight Through Processing


The Trade Lifecycle

	Orders: • Purpose • Who issues orders • Who receives orders • Types
	Trade Execution: • Order-driven markets • Quote driven markets • Exchange-traded vs OTC • Electronic trading • ECNs
	Trade Capture (FO): • How captured • Components to capture • Speed of capture • Accuracy
	Trade Capture (BO): • Implications of successful capture • Failure to capture • Reasons for failed capture
	Trade Enrichment: • Purpose • What is added to basic trade details • How automatic enrichment is achieved
	Trade Agreement: • Purpose • Methods • Trade confirmation (manual, electronic) • Trade affirmation (Oasys Global) • Implications of failing to agree
	Settlement Instructions: • Purpose • Methods • Deadlines • Implications of failing to instruct
	Settlement Instruction Statuses: • Purpose • Status types & meaning • Required action • Implications of failure to resolve unmatched instructions
	Failed Trades: • Definition • Causes • Implications • Prevention • Minimising impact
	Trade Settlement: • Definition • Causes of successful settlement (seller, buyer) • Partial settlement
	Updating Internal Records: • Why update? • Implications of successful and unsuccessful updating
	Reconciliation: • Benefits, types (e.g. FO/BO) • Methods • Risks


Activities Associated with the Trade Lifecycle

	Basic securities bookkeeping: • Importance of accurate books & records
	Funding: • Purpose • Cash borrowing methods (unsecured, secured, repo) • Collateral management • Operating within cash deadlines • Preadvising
	Securities Lending & Borrowing: • Purpose of lending • Benefits of borrowing • Circumstances giving rise to borrowing (including short selling) • Legal ownership • Mechanics of lending / borrowing (OTC and automated)
	Safe Custody: • Definition • Internal & external (custodians’) • Structure of clients’ accounts • Securities & cash movement types • Risks and controls
	Corporate Actions: • Purpose • Overview of mandatory events • Mandatory with options events • Voluntary events • Processing lifecycle • Entitlement calculation • Risks & controls

NB All practical sessions are highlighted like this:
	means a Workshop or Simulation
	means a Case study