This is an intensive course for individuals who want to understand the differences between US clearance/settlement and how it occurs in other regions of the world. The content includes the trends in global trading, trade settlement and custodial processing. The different trade types will be examined, the risks associated with the processing of these securities and how to minimize any risk. Standardization of trade input will be discussed and also how SWIFT is used in global processing. The major financial services initiatives, including straight through processing, shortened settlement periods, Continuous Linked Settlement (CLS) and the Basel II Accord, will also be discussed

Objectives

By the end of the program the course participant will be able to:

• Understand the primary objectives of the "buy side" and "sell side"
• Understand the life-cycle of an international trade versus a US trade
• Describe the difference between bi-lateral netting and multi-lateral netting
• Have a knowledge of how securities are settled in the major trading nations and the primary differences among them
• Understand the various types of risk in global settlements and how to avoid them
• Know the impact of standardization in the industry and the impact of FIX (Financial Information eXchange) and SWIFT
• Be aware of the major trends in financial services including CLS, Basel II and STP (Straight Through Processing)
• Understand how global custodians function and interact with the local markets

Participants in this course should have a good understanding of the US settlement cycle including the primary participants and the roles of clearing and depository utilities. This may include operational, informational technology and brokerage support individuals. Investment managers would also benefit from this course by knowing how their investments are processed, the inherent risks and the potential benefits.