ACF Academy
Operations and IT Training Training
Category:
 Operations and IT Training
Targeted Audience:
 All those who need to understand the life-cycle of a trade.
Prerequisites:
 Fundamental Securities Operations Concepts
CPE Credits:
 7 hours
Course Level:
 Foundation
 

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
   

 
Course Outline
   
 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

 

 
Accreditation


 

"Extremely enjoyable and well taught."

– Ronak P.