ACF Academy
Operations and IT Training Training
 Operations and IT Training
Targeted Audience:
 With the credit crunch and the recession allied to the various scandals within a few financial services firms over the last few years, it is imperative that investment banks have full and close control over their business. Within the world of operations, there is huge opportunity to lose money and lose clients; some firms are managed very tightly, and in order to achieve that it requires all operations staff within the firm to have a similar outlook and focus, working as a strong all-round team, with each
 Fundamental Securities Operations Concepts
CPE Credits:
 7 hours
Course Level:

Risks & Controls in Securities Operations

The principal objectives of this one-day seminar, viewed from an operations perspective, are to:
  Identify risks across a broad array of securities operations functions
  Convey a number of ‘classic’ controls, their benefits and how deployed
  Define numerous detailed controls to address common operational issues
  Absorb methods of problem analysis using realistic scenarios
  Increase problem resolution capability
  Increase awareness of responsibilities in a variety of functions

Course Outline
Generic risks and the need for controls
The value of trades in an investment banking environment
Monetary loss
Reputation loss
 Risks in Primary Securities Operations Functions
Static/Reference Data, including:
  • Inaccurate securities data
  • Inaccurate counterparty SSIs
The Trade Lifecycle, including:
  • Inaccurate trade capture
  • Trades not received in BO system
  • Differing trading positions between FO and BO
  • Trade detail unconfirmed with counterparty
  • Failed trades
Securities Borrowing, including:
  • Failure to borrow
  • Unnecessary borrowing
  • Failure to return
Funding, including:
  • Missed instruction deadlines
  • Errors at weekends & public holidays
Corporate Actions, including:
  • Inaccurate or incomplete event data
  • Unreconciled books & records (trades and positions)
  • Failing to offer the owner a choice of outcome
  • Missed optional and voluntary event deadlines
 Controls in Primary Securities Operations Functions
Specific controls to address risks identified in the first section above, including:
  • Subscription to data vendors to address inaccurate securities data
  • Electronic identification of trades failing to reach BO
  • Procedure to identify root cause of trading position breaks
  • Risk assessment of unconfirmed trades
  • Minimising impact of failed trades
  • Avoiding unnecessary securities borrowing
  • Safe management of optional and voluntary corporate actions
Classic controls (how employed and their effectiveness), including:
  • Verification
  • Four Eyes checking
  • Reconciliation
  • Segregation of Duties
  • Supervision
  • Culture
 Case Study
Detailed Risk Analysis & Proposed Controls
Analysis of numerous pre-defined operational problems, in each case:
     1. Stating the specific risks
     2. Identifying the probable causes, and
     3. Defining their ideal controls including precisely how the controls are to operate
Examples of pre-defined operational problems:
  • Buy trade in internal books & records shows as open with counterparty, but has in fact settled
  • Trade quantity amended in BO system, without being amended in FO system
  • Correct coupon details in static data overridden incorrectly by incoming data vendor feed


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


"Perfectly meeting the objectives and expectations."

– Bram D.