Life Cycle of a Trade

In addition to your class tuition and study materials, you will receive the following:


Simulations

• Life Cycle of a Trade:
• Teams organise to settle a securities trade in the market. One group is the buyer of the security the other the seller.Then four groups take the role of two sets of
• counterparties and a final two teams carry messages between the other teams.Will everything square up in the end? (Minimum of 10 people required)

Other Extras

• Certificate of attendance

Level: Intermediate


Synopsis:
This 1 day course provides an outline for all delegates on the settlement and operations processes necessary to enable the services provided by investment banks to work efficiently and cleanly. The approach is to follow the life cycle of a trade from trade execution and dealing systems through to settlement and clearing systems through to custody issues.The group will be split into teams to perform activities that reinforce the concepts.


At the end of the course participants will be able to: Be familiar with the key terms used in the fields of securities trading and processing and administration . Identify and describe the sequence of events in the processing of a securities trade . Identify the principal methods of trade execution and their applicability . Understand why market participants trade securities . Understand a primary and secondary market .


Prerequisites:
None, however some knowledge of the basic features of securities may be beneficial


Suitable For:
Individuals working, or seeking to work in a front, middle or back office role, who wish to gain a more complete understanding of the processes and principles that define a trade lifecycle. This course is also suitable for IT professionals and data vendors that service the securities trading industries.


The primary and secondary market

• What is a primary and secondary market?
• Offers for sale and subscription
• Placements

What is a trade?

• Rationale for trading
• Who invests and why?

What is risk?

• Market risk
• Credit risk
• Settlement risk

Trading concepts

• Exchange traded vs OTC
• Order vs quote-driven
• Order types
• Order pricing
• Trading systems
• Activity: place the Life Cycle of a Trade cards in a logical order

Trade confirmation, instruction and matching

• What is the middle office?
• Trade enrichment
• Trade validation
• Exceptions and trade repair
• Trade agreement
• The importance of trade confirmation
• Achieving trade confirmation
• Communicating a confirmation

Trade settlement and inventory management

• Settlement terminology and types
• Settlement venues
• Pre-settlement
• Cash (funding) management - principles and options
• Securities management - principles and options
• Activity: why do trades fail?

Custody

• What is a custodian?
• Services
• Settlement
• Corporate actions
• Tax
• Cash
• ASDA vs CSDA

STP

• From dealing room to Subcustodian
• Problems with achieving STP