Financial Markets Operations Management

A comprehensive text on financial market operations management
 
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.

List of contents

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

About the author

KEITH DICKINSON is Director of The Settlement & Management Research Consultancy Limited, Principal of Financial Markets Training Limited and a Senior Teaching Fellow at the International Business School Suzhou at Xi'an Jiaotong-Liverpool University, Suzhou. His career has spanned twenty years as an industry practitioner in operations and over twenty years in executive education and academia.

Summary

A comprehensive text on financial market operations management 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.

Product details

• Authors: K Dickinson, Keith Dickinson, Dickinson Keith
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 13.02.2015
• EAN: 9781118843918
• ISBN: 978-1-118-84391-8
• No. of pages: 480
• Series: Wiley Finance; The Wiley Finance Series; Wiley Finance; The Wiley Finance Series
• Subjects: Social sciences, law, business > Business > Business administration; Kapitalanlage, Finanzwesen, Finanzmarkt, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen