ACF Academy
Operations and IT Training Training
Category:
 Operations and IT Training
Targeted Audience:
 This course is targeted at a novice operations audience, providing an introduction to topics that are applicable across all financial product processing (including derivatives, securities, FX, money-markets). The course contains essential concepts that all investment banking operations personnel should be aware of, such as how payments in overseas currencies are made, what needs to be issued in order to effect a payment, and the essential deadlines.
Prerequisites:
 None
CPE Credits:
 14 hours
Course Level:
 Foundation
 

Fundamental Banking Operations Concepts

The principal objectives of this two-day seminar, viewed from an operations perspective, are to:
 
  Provide a solid foundation of understanding the primary investment banking activities
  Highlight banking principles applicable across all operations areas within investment banks
  Compare similarities and differences in the operational processing of various financial products
  Identify common and specific risks in processing various financial products
  Examine the costs of errors, and how trading & operational errors arise
  Emphasise the importance of client service & where client service opportunities arise within an operations environment
  Discuss commonly used controls designed to mitigate the various risks

 
Course Outline
   
 Fundamental Banking Principles
   
Bank accounts: types of bank account and their characteristics
Bank interest calculations, day count and divisor conventions
Unsecured and secured cash borrowing/lending
  • Characteristics
  • Risks
  • Similarities and differences
Concepts of collateral: 
  • Purpose
  • Types
  • Movement
  • Ownership
  • Treatment of changes in value
  • Margin calls
ISO currency codes: commonality of use
Cash management overseas: 
  • Cash correspondents
  • Deadlines
  • Time-zone differences
Standing settlement instructions: 
  • Purpose
  • Importance
  • Origin
  • Storage
Settlement instructions: 
  • Purpose
  • Content
  • Transmission methods
  • Security
  • Deadlines
SWIFT: 
  • Participation
  • Message security & format
  • Instrument coverage
Basic bookkeeping principles: 
  • Importance of accurate books & records
  • Double-entry bookkeeping
Late cash payment/receipt: 
  • Impact
  • Causes
  • Rectifying measures
Interest claims: valid & invalid claim situations
   
 
   
 Financial Products Processing
   
In each case below, we explain the client’s objective, the essential nature of the product (to address the client’s need), and the processing lifecycle, utilizing the principles described above.
   
Cash Pooling
Corporate Lending
Trade Finance
Payments
Foreign Exchange
Corporate Finance (Equity Syndication)
Securities
Derivatives
Money Markets
Asset Management
   
 Fundamental Risks & Controls
 
Market-Wide Risks, including:
  • Credit risk
  • Settlement risk
  • Reputational risk
Market-Wide Controls, including: 
  • Delivery versus Payment (DvP) 
  • Payment versus Payment (PvP)
  • Credit risk assessment
  • Settlement netting
Internal Risks, including:
  • Traders having access to operations system
  • Input of incorrect interest rates
  • Delayed capture of new security details
Internal Controls, including: 
  • Segregation of duties
  • Verification
  • Reconciliation
   

 

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

 

 
Accreditation


 

"I am fascinated by the knowledge the tutor has."

– Lim J.