This course is designed to provide an overview of the lifecycle of a trade in fixed income and equity cash securities, from the inception of an order through confirmation, clearing, and settlement. The roles of industry utilities, such as clearing houses and settlement agencies, for cash securities are highlighted.
Course Objectives
By the end of the course, participants will be able to:
- Identify the critical functional areas related to the lifecycle of a trade from the inception of the customer’s order through the settlement, as well as the follow-up required for the effective prevention and management of failed trades
- Recognize the importance of risk management provided by clearing houses
- Discuss how clearing and settlement are structured in both the US and International marketplaces
- Distinguish types of operational risks that have a potential impact on the firm and their customers, in both the domestic and international arenas
- Analyze the source of costs of processing trades
- Gain perspective on the relationship between an institutional customer’s custodian and the bank broker/dealer in the flow of post-execution activity
Suggested Prerequisites: None
Program Level:Foundational
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7