Course Code: 102

Duration: 2 days

Level: Basic

Fee: $1395.00

Instructor: Charlotte Scott

CPE Credits: 14

Prerequisite: Seminar 101 - How the Securities Industry Works or equivalent experience is recommended but not required.

This two-day course will provide a broad understanding of securities processing within the U.S. Markets. It is intended for new hires or for people who desire a more complete picture of how the trade process works from order entry, trade execution and settlement, through asset servicing.

All securities processing functions will be covered in detail from both the brokerage and the custodian perspective. The course begins with a general overview of the markets and its participants. It will take you through the full trade cycle, including the roles and relationships of the various entities such as broker/dealers, investment managers, custodians, and depositories.

The course will also touch upon the current securities processing trends and discuss the future of security processing and the potential for centralizing the core activities of various types of organizations.

Market Overview

• Historical Background
• Exchanges/Markets
• Instruments
• Processing Participants
• Governance

Trade Cycle and Processing Overview

•  Trade Cycle
•  Order and Trade Management
•  Matching, Comparison and Confirmation
•  Clearance and Settlement
•  Asset Servicing
•  Control
•  Reporting

Order and Trade Management

•  Roles of the Portfolio Manager/Broker/Trader
•  Orders
•  Executions
•  Cancels and Corrects
•  Market Makers
•  Interfaces

Matching, Comparison and Confirmation

•  Role of the Middle Office
•  Confirmation Process
•  Market Interfaces
•  Comparison and Netting
•  Depository Interfaces

Clearance and Settlement (Security Movement and Control)

•  Role of the Custodian and Broker Dealer
•  Clearance and Settlement
•  Physical Settlement
•  Depository Process
•  Reconciliation and Fail Management

Asset Servicing

•  Income Collection (Categories and Processing)
•  Corporate Action Processing (Categories and Processing)
•  Securities Lending
•  Reorganization
•  Stock Transfer
•  Data Suppliers

Control and Recordkeeping

•  Stock Record
•  Segregation
•  Audits

Reporting

•  Confirms
•  Statements
•  Regulatory
•  Other Reporting Channels

Industry Trends and Initiatives

•  Straight Through Processing
•  Standard Interfaces
•  T+1

By the end of this course, the participants will be able to:

• Identify the functional areas related to the lifecycle of a trade from the inception of an order through settlement
  
• Distinguish types of operational risk that have a potential impact on the firm and its customers
  
• Develop an understanding of the trade lifecycle participants