International Securities Settlement & Global Custody Training Program (August 22-24, 2022 November 21-23, 2022)

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Aug 11, 2022, 05:30 ET

DUBLIN, Aug. 11, 2022 /PRNewswire/ -- The "International Securities Settlement & Global Custody" training has been added to ResearchAndMarkets.com's offering.

This training program is designed to provide delegates with practical knowledge about the key concepts, systems, processes and procedures in international securities settlement and global custody services as well as operational risks involved.

You will have a chance to gain skills necessary to facilitate day-to-day transactions and communication processes between all parties involved as well as all stages about clearing and settlement process, the role of exchanges and clearing houses, functioning of the settlements department, role of payments in the settlements.

Day two focuses on the role and functioning of global custody, services provided, derivatives settlements, corporate actions and risk management. You will also learn about the latest sector's trends and changes.

You will also learn about the impact of the MiFID and T2S - Target 2 Securities initiatives on the market.

The course is conducted by senior experts with many years of international experience and includes many international case studies and exercises.

What will you learn

By attending this program you will gain:

Practical understanding of international securities settlement processes and custodial services, key players and concepts and relationships between them
A clear understanding of the operational risks involved in these two services
An update on recent developments of international securities settlement and custodial services including Target 2 Settlements and MiFID
An understanding and appreciation of the communication processes between all the parties involved in a given transaction

Main topics covered during this training

Securities settlement - exploring key concepts and market context
The relationship between exchanges and clearing houses
Trade cycle stages
Understanding the role of a settlement department
The role of payment systems in securities settlements
Settlement process including pre-settlement, settlement and reconciliation processes
European switch to T2S (TARGET 2 Securities) settlement system
Timing in cash management and Forex exchange
The role and operations of CLS - Continuous Linked Settlement
Global custody and derivatives clearing
Core and value added services in global custody
Identifying and managing risks in clearing, global custody and settlement
The impact of 'Corporate actions' in custody services
Key legal issues
MiFID Directive
Exploring industry trends

Who Should Attend:

Professionals from Custodial and Investment Banks, Exchanges, Hedge Funds, Pension Funds and Endowments and other institutional investors from the following departments:

Custody Services
Settlements
Transactions & Processing
Compliance
Risk Management
Credit Risk
Operations
Reporting
IT
Customer Relationship

Key Topics Covered:

Introduction to the clearing and settlement process

Wall Street 101 - an introduction to the securities trade life cycle
Underlying principles of securities and derivatives settlement
The structure and operations of a typical securities trading organisation/firm
Cashiering Firms, Custodians, Commercial & Other Banks, Prime Brokerage
Clearing - what it is and how it works - basic structures for clearance
Key Concepts - Beneficial ownership, Collateral, Counterparty credit limits, Daylight overdraft, Default, Dematerialization, Failed transaction, Free riding, Fungible, Internal settlement, Lamfalussy Standards, Loss-sharing agreement and pools, Netting, Settlement date, Standard settlement instruction, Unwind, Zero hour rule
Capital requirements
Chain of entitlements
Immobilisation and dematerialisation
Processing book entry (electronic) and certificated (paper based) securities

Exchanges and clearing houses

The role of the exchanges
The role and function of the clearing house
The interaction between exchanges and clearing houses
Derivatives - what they are and how they work
Derivatives clearing - why the process differs from regular securities; actions to make the process safer.
Recent changes in the Derivatives clearing process
Bilateral clearing.
Central Counterparties
Nominee Services
Vault Management (immobilised securities)

Settlements - The role of the settlements department

Importance of settlement Relationships and responsibilities
Management information
The relationships with the counterparties dealt with in the settlement of a typical trade
Rules and conventions for settlement
Differing conventions for different security classes (equities, bonds, derivatives)
CPSS-IOSCO Technical Committee Recommendations for Securities Settlement Systems
Delivery versus Payment Interaction between payments and securities settlement systems

Nominee Services

What is a 'nominee'
Key nominee activities
Announcements & communications
Voting
Entitlement actions

The role of payment systems in securities settlements

Large Value Transfer systems (LVTS) including Real Time Gross Settlement (RTGS) systems
International payments - concepts, procedures and settlements
CLS (Continuous Linked Settlement)

Settlement processes

Pre-settlement (including; input of settlement instructions, input scenarios, matching, monitoring transactions, changing transaction input, shaping deliveries, splits).
Settlement (priorities and queues, circle processing, monitoring transaction, settlement, electronic transfer of title (ETT), bad deliveries)
The importance of securities timing
Overcoming problem areas
Cash management and Foreign Exchange - timing and importance
Settlement for residual securities
Derivatives settlement
The reconciliation process and its importance

Group Discussion

Using their own experience delegates will examine preconceptions that they may have held regarding the securities settlement process against the previous sessions' material.

DAYTWO

CLS - Continuous Linked Settlement - Its purpose, role and operation

Herstatt risk - a brief introduction into foreign exchange risks
Differing settlement methods for foreign exchange settlements.
Continuous Linked Settlement.
Why CLS is relevant for securities settlements.
PvP Requirements of overlapping national RTGS systems.
CLS & correspondent banking.
Current CLS statistics

Case Study: South Africa - STRATE Interbank money markets and payment systems: A Two Way Relationship

Global custody

Who are the users and the providers?
Basic structure for custody services
The role of the derivatives clearing broker
Sub Custodian
Life cycle of a trade - the linked phases of processing
Trade settlement
Market practice: cut-off and value dates
Safekeeping

Discussion

Using own experience delegates will examine preconceptions against the previous sessions' material

Global custody - core services

The services a global custodian and derivative clearer offer its clients - settlement, safekeeping of securities, income collection, corporate actions management, cash management, funding, tax management, reporting - the information chain e.g. SWIFT, banking facilities
How custody services work
Central Securities Depositories (CSDs)
International Central Securities Depositories (ICSDs)
Paper trail from actual transactions to actual deposit of securities with custodians
Differences between Domestic & International CSDs

Global custody - value added services

Investment accounting
Master custody/master recordkeeping
Securities lending, equity repos and collaterals
Trustee services
Portfolio valuation
Collateral management
Describing how securities lending operates in simple terms.
Country-specific depositories in Hong Kong, India, Indonesia, the Philippines and elsewhere

Target T2 Securities

What has driven the need for T+2?
What are the T+2 benefits?
The Target T2S migration
How T+2 impacts clients transactions
The scope of T+2 in T2S
What is not in scope
The impacts of Target 2 Securities
Derivatives and T+2

Custody services "corporate actions"

What are "corporate actions" and why do they occur?
Common types of corporate actions and examples
The growing importance of proxy voting
Importance of timing
Communicating Corporate Actions
Managing Corporate Actions Risk

Identifying and managing risks

Credit, Replacement cost, Principal, Delivery versus Payment, Liquidity, Settlement, Custody, Operational, Legal and Systemic risks
In securities clearing, settlement & custody:Settlement, Operational, Financial, Market, Loss of title,Insolvency,Payment, Failed Trades, Cross border operations
In payment systems:Settlement, Operating, Payment Finality, Liquidity, Systemic, Zero hour bankruptcy rule
Specific risks relating to custodians - examples of what can go wrong
IOSCO and technology risk concerns
Lack of appropriate market surveillance tools
Risk created by automation
Identified industry issues
IOSCO April 2013 Report
Legal environment
Key legal issues

Exercise

Playing the role of Risk Manager: Establishing where we are in relation to risk mitigation, the industry recommendations and how far must we go to reach them. An attempt to establish if full compliance of the recommendations is beneficial or harmful to risk management?

Market in Financial Instruments Directive (MiFID)