ACF Academy
Operations and IT Training Training
 Operations and IT Training
Targeted Audience:
 All those new to securities operations. This course is also a pre-requisite to the "Securities Trade Lifecycle" course.
CPE Credits:
 7 hours
Course Level:

Fundamental Securities Operations Concepts

The principal objectives of this one-day seminar, viewed from an operations perspective, are to:
  Facilitate a more complete understanding of the securities trade lifecycle
  Examine aspects of the global securities industry which impact the management of trades
  Describe similarities and differences between equity and debt securities
  Explain how securities positions are managed, and the impact of new trades on positions
  Explain what causes (and prevents) Straight Through Processing

Course Outline
Equity Fundamentals: 
  • Common/ordinary, preference, convertible
  • Status of investor’s capital & income
Debt Types: 
  • Fixed, floating, zero, convertible. 
  • Status of investor’s capital & income
Where securities are held: 
  • Central Securities Depositories (national, international)
  • Local custodians
  • Global custodians
Services provided by CSDs and custodians: 
  • Securities safekeeping
  • Electronic book-entry
  • Cash management
  • Asset servicing
Security forms: 
  • Registered versus bearer versus electronic
  • Certificated versus dematerialised
  • Registrars and coupon paying agents
Trade & Position Concepts: 
  • What is a trade?
  • What is a position? 
  • How trades impact positions
Date Concepts on Trades: 
  • Meaning of trade date, value date, settlement date. 
  • Explanation of settlement cycles and reasons for reduction.
Settlement Methods: 
  • Delivery versus Payment (DvP)
  • Free of Payment (FoP)
Trading Methods: 
  • Exchange-traded
  • OTC
  • Implications for settlement
Trading Capacity: 
  • Proprietary trading
  • Market making
  • Agency broking
  • Risk outlook
  • Implications (e.g. funding)
Trading Books: 
  • Purpose
  • Structure, 
  • Implications on operations
Transaction Types: 
  • Securities
  • Principal
  • Agency
  • Book transfer
  • Repo
  • Securities lending/borrowing
  • Depot transfer. 
  • Cash borrow/lend (secured/unsecured)
  • FX
Static Data: 
  • Purpose
  • Importance
  • Methods of updating
  • Maintenance
  • Risks
  • Controls
Securities Static Data (equity/debt):
  • Types
  • Sources (including data vendors)
Counterparty Static Data: 
  • Standing settlement instructions
  • Purpose
  • Importance
  • Sources
Trade Cash Calculation: 
  • Equity: calculation method, market charges (e.g. stamp duty, sales tax). 
  • Debt: calculation method, accrued interest principles.


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




"Excellent – very impressed with the program, well placed and good mix of practical and classroom work."

– Christine M.