Fintuition - Course Overview

Securities Operations Clearing & Settlement

Fee: £1,995 + VAT

Berkeley Square House, Mayfair - London

Securities operations managers are currently grappling with an important decision: how best to ensure that the regulatory and structural changes that are currently taking place become drivers for change rather than just mandatory must do. The course will cover regulatory changes such as MiFID and Basel II as well as the changing clearing and settlement landscape.


24 - 25 November 2010	London - Mayfair

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Course Director(s)
Stephen C. Kell

What You Will Learn

This course provides managers and their staff with a comprehensive and thorough survey of the changes to securities operations both from a regulatory angle, particularly MiFID and Basel II, and also from a survey of the way that the clearing and settlement part of operations is undergoing changes. Explains key processes and the roles of the different players, highlighting regional differences and anticipating future developments. The participants will learn ways to implement the changes to reap the maximum benefit.

Course Overview

Overview of Back Office Processes
Confirmation
Settlement
Instructions
Provisioning
Clearing
Reconciliation
Investigation
Asset servicing

Straight-Through Processing
STP defined: internal and external. Why is it important?
What are the benefits?
Overview of initiatives

Exercise

Life Cycle of a Trade
Confirmation
Settlement instructions
Provisioning
Clearing
Settlement
Reconciliation
investigation
Corporate actions
Collateral management

Confirmations
The ETC providers: Omgeo Oasys Global, Swift etc
Best practice
Matching utilities

Corporate Actions
Corporate actions defined: Elective vs mandatory
Risks and costs associated with manual processing
initiatives to automate

Basel II & Other Regulatory Requirements
Operational risk
What is it? How can it be measured?
How can it be reduced?
What is the impact on the regulatory capital?

MiFID
What is MiFID?
Why is it important for the back office?
What are the impacts: best execution
Client classification
Transparency and systematic internalisers?

Insourcing, Outsourcing, Nearshore, Offshore
What are the advantages of outsourcing?
What are the disadvantages?
When should a process be outsourced?
What about nearshore/offshore outsourcing?

Overview of Players
Difference between clearing and settlement
Role of custodians
Central counterparties
Clearing houses
CSDs and ICSDs
Lifecycle of a trade

Exercise
Given details of a trade, delegates will be asked to identify the risks involved at each stage of its lifecycle

Central Counterparties
Settlement risk
Pre-settlement risk
Settlement costs
Anonymity
Settlement netting versus netting by novation.

Settlement Models
BIS models: real time versus netting, DVP versus FOP. Settlement risks in each model.

Exercise
Delegates will quantify the risks inherent in the same trade executed using different clearing and settlement models.

European Settlement Systems
Historical origin of multiple systems; how they operate together; similarities and differences
Euronext
LCH.Clearnet
Clearstream
Euroclear
SIS
VPC

Asia/Pacific Settlement Systems
Similarities and differences in the drivers for change versus Europe
Chess
JasDec
HKSCC
Austraclear
JSCC
CCAS

North American Settlement Systems
Differences and similarities to the other systems, how do they operate together?
DTCC
NSCC
LVTS
CDP

Collateral Management in Settlement
Uses of collateral: repo and securities lending
Exposure management
Liquidity provision
Mark to market, haircuts, substitutions

Reference Data

Case Study
An investment manager wants to shift a portion of his portfolio from North America to the Asia/Pacific region.

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