WHAT'S NEW?

FINANCIAL MARKET COURSES

Life of a Trade – Clearing & Settlement

This course explores the activities that take place after a trade is executed. These activities, which are collectively referred to as clearing and settlement, include trade capture, trade enrichment, trade validation, trade confirmation/affirmation, trade reporting, and settlement instructions. The course also describes the role of key participants in the clearing and settlement process, including clearinghouses, central counterparties (CCPs), central securities depositories (CSDs), and custodians.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Identify the activities that take place after a trade is executed and the key participants in these activities

    Recognize the steps involved in the trade clearing process

    Identify the different trade settlement methods and the causes and consequences of settlement fails

  • COURSE OUTLINE

    Topic 1: Overview of Trade Clearing & Settlement

    Trade Dates vs. Value Dates

    Clearing vs. Settlement

    Key Participants

    o Clearinghouses

    o Central Counterparties (CCPs)

    o Central Securities Depositories (CSDs)

    o Custodians

    Topic 2: Trade Clearing

    Trade Clearing Process

    Trade Capture

    Trade Enrichment

    o Trade Figuration

    Trade Validation

    o Exception Handling

    Trade Confirmation

    o Direct Confirmation

    o Trade Matching Service

    Trade Affirmation

    o Same Day Affirmation (SDA)

    o Trade Allocation

    Trade Reporting

    Settlement Instructions

    o Standard Settlement Instructions (SSIs)

    o Settlement Instruction Deadlines

    Topic 3: Trade Settlement

    Trade Settlement Methods

    o Delivery-versus-Payment (DVP)

    o Free-of-Payment (FOP)

    Gross vs. Net Settlement

    DVP Settlement Models

    o Simultaneous Gross Settlement of Securities & Funds

    o Gross Settlement of Securities Followed By Net Settlement of Funds

    o Simultaneous Net Settlement of Securities & Funds

    Settlement Failures

    o Causes

    • Operational Risks

    • Liquidity Problems

    • Lack of Incentive to Avoid Fails

    o Consequences

    • Replacement Cost Risk

    • Principal Risk

    • Liquidity Risk

    • Other Consequences

    • Buy-Ins & Sell-Outs

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Next Course

VIEW COURSE

INTRODUCTORY

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.