This program provides a comprehensive overview of Global Securities Clearance and Settlement processing for trades that occur on a cross-border basis. The focus will be on trades for sovereign debt in markets including the Americas and Europe. As clearance and settlement platforms globally undergo significant changes because of new regulatory requirements, the Operations, Cash Management, and Accounting areas of international bond trading participants need to secure compliance. At the same time, they will have to maintain ever higher standards of risk management, best practices and cost-effective processing. This program uncovers the activity that occurs in the local market settlement systems for securities and cash, as well as settlement through international settlement systems including Euroclear and Clearstream.
The program covers the SWIFT network and standards which have been the backbone for domestic and international securities trade processing. Changes are occurring at SWIFT that global market participants need to be aware of. This program will include a discussion of how SWIFT is used in global trade lifecycle activity, and what changes are expected in the near future.
By the end of the course, participants will be able to:
- Identify the participants and their roles in the domestic and international clearance and settlement of sovereign debt
- Identify the functional components of the post-execution trade lifecycle through settlement, custody and corporate actions, specifically as it relates to sovereign debt
- Compare the clearing and settlement infrastructures for sovereign debt markets in the US, and major Latin American and European markets, including clearing houses and national depositories
- Evaluate the settlement systems provided for both Euroclear and Clearstream, including transactions for bridge settlement between the two
- Map the SWIFT message types to the trade lifecycle
- Recognize major trends in the global clearance and settlement environments, initiatives for global standards, shortened settlement cycles, and new regulatory requirements
- Fundamentals of the Capital Markets/Securities Industry or equivalent knowledge
Program Level: Foundational
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7