Financial markets operations management

Author

• Dickinson, Keith

Additional Author(s)

-

Publisher

Hoboken, New Jersey: John Wiley and Sons, Inc., 2012

Language

English

ISBN

9781119208365

Series

Subject(s)

• BANKS AND BANKING
• FINANCE
• FINANCIAL SERVICES INDUSTRY-MANAGEMENT
• INVESTMENT ADVISORS

Notes

• Includes bibliographical references and index (431-447)

. .

Abstract

Financial Market Operations Management offers anyone involved with administering, maintaining, and improving the IT systems within financial institutions a comprehensive text that covers all the essential information for managing operations. Written by Keith Dickinson—an expert on the topic—the book is comprehensive, practical, and covers the five essential areas of operations and management including participation and infrastructure, trade life cycle, asset servicing, technology, and the regulatory environment. This comprehensive guide also covers the limitations and boundaries of operational systems and focuses on their interaction with external parties including clients, counterparties, exchanges, and more.

This essential resource reviews the key aspects of operations management in detail, including an examination of the entire trade life cycle, new issue distribution of bonds and equities, securities financing, as well as corporate actions, accounting, and reconciliations. The author highlights specific operational processes and challenges and includes vital formulae, spreadsheet applications, and exhibits.

Offers a comprehensive resource for operational staff in financial services
Covers the key aspects of operations management
Highlights operational processes and challenges
Includes an instructors manual, a test bank, and a solution manual
This vital resource contains the information, processes, and illustrative examples needed for a clear understanding of financial market operations.

Physical Dimension

Number of Page(s)

1 online resource (xxiii, 447 p)

Dimension

-

Other Desc.

-

Summary / Review / Table of Content

Preface xix
Acknowledgements xxiii
PART ONE CHAPTER 1 Introduction to Operations
3 1.1 Introduction
3 1.2 Organisational Structure of an Investment Company
5 1.3 Operations Relationships
10 1.4 Other Business Functions
13 1.5 Summary 15
CHAPTER 2 Financial Instruments
17 2.1 Introduction
17 2.2 Why Do We Issue Financial Instruments?
18 2.3 Money Market Instruments
19 2.4 Debt Instruments
26 2.5 Equity Instruments
38 2.6 Derivative Instruments
47 2.7 Exchange-Traded Derivatives
52 2.8 OTC Derivatives
71 2.9 Summary 81
CHAPTER 3 Data Management
83 3.1 Introduction
83 3.2 Importance of Reference Data and Standardisation
84 3.3 Types of Reference Data
86 3.4 Data Management
94 3.5 Legal Entity Identification
95 3.6 Summary 99
CHAPTER 4 Market Participation
101 4.1 Introduction
101 4.2 Market Players
102 4.3 Market Structure
131 4.4 Summary 137
PART TWO CHAPTER 5 Clearing Houses and CCPs
141 5.1 Introduction
141 5.2 Overview of Clearing and Settlement
142 5.3 The Clearing House Model
143 5.4 The Central Counterparty Model
145 5.5 Features of CCPs and Clearing Houses
148 5.6 Summary 150
CHAPTER 6 Securities Depositories (CSDs and ICSDs)
151 6.1 Introduction
151 6.2 Historical Context
151 6.3 Definitions
154 6.4 Central Securities Depositories
154 6.5 International Central Securities Depositories
163 6.6 Linkages Exchanges, Clearing Systems and CSDs
167 6.7 CSD Associations
171 6.8 Summary 173
CHAPTER 7 Securities Clearing
175 7.1 Introduction
175 7.2 Generic Clearing Cycle
176 7.3 Trade Capture
182 7.4 Trade Enrichment and Validation
184 7.5 Regulatory Reporting
186 7.6 Confirmation and Affirmation
188 7.7 Clearing Instructions
194 7.8 Forecasting Cash
199 7.9 Forecasting Securities
203 7.10 Summary 205
CHAPTER 8 Settlement and Fails Management
207 8.1 Introduction
207 8.2 The Different Types of Settlement
208 8.3 Delivery versus Payment
211 8.4 Free of Payment Settlement
215 8.5 Settlement Fails
217 8.6 The Move to Shorter Settlement Cycles
228 8.7 Summary 229
CHAPTER 9 Derivatives Clearing and Settlement
231 9.1 Introduction
231 9.2 Regulatory Changes
232 9.3 Exchange-Traded Derivatives Contracts
234 9.4 Cleared OTC Derivatives Contracts
240 9.5 Non-Cleared OTC Derivatives Contracts
245 9.6 Summary 255
PART THREE CHAPTER 10 Custody and the Custodians
259 10.1 Introduction
259 10.2 Custody
260 10.3 Holding Securities
263 10.4 The Custodians
267 10.5 Target2Securities (T2S)
279 10.6 Summary 283
CHAPTER 11 Corporate Actions
285 11.1 Introduction
285 11.2 Types of Corporate Action Event
286 11.3 Participation in Corporate Actions
287 11.4 Entitlements, Key Dates and Claims
289 11.5 Corporate Action Event Processing
294 11.6 Information Flows
315 11.7 Corporate Action Risks
320 11.8 Industry Initiatives
323 11.9 Corporate Governance and Proxy Voting
328 11.10 Withholding Tax
333 11.11 Impact on Other Departments
337 11.12 Summary
340 Appendix 11.1: Corporate Action Event Type Categories
340 Appendix 11.2: Voluntary and Mandatory Events for Equities and Bonds 341
CHAPTER 12 Securities Financing
343 12.1 Introduction
343 12.2 Types of Securities Financing
344 12.3 The Players and Their Motivations
346 12.4 Intermediaries
352 12.5 Agreements and Code of Guidance
354 12.6 Securities Lending Lifecycle
356 12.7 Repurchase Agreement Lifecycle
370 12.8 Collateral and Margin
379 12.9 Default and Close-Out Provisions
384 12.10 Central Counterparty (CCP) Services
386 12.11 Summary
389 Appendix 12.1: Credit Ratings Long Term
390 Appendix 12.2: Delivery by Value (DBV) Class List
391 Appendix 12.3: Technology Vendors
392 PART FOUR CHAPTER 13 Accounting for Securities
395 13.1 Introduction
395 13.2 The Accounting Equation
397 13.3 The Accounting Lifecycle for Securities
400 13.4 Gains and Losses
405 13.5 The Accounting Lifecycle for Derivatives
411 13.6 Summary
416 Appendix 13.1: Closing Prices for Singapore Equities (SGX)
416 CHAPTER 14 Reconciliation
417 14.1 Introduction 417 14.2 Importance of Reconciliation
418 14.3 Types of Reconciliation
421 14.4 Automation of Reconciliations
427 14.5 Summary
428 About the Author
429 Index
431

Exemplar(s)

#	Accession No.	Call Number	Location	Status
1.	01042/19	332.64068 Dic F	Online !	Available