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International Securities Settlement and Custodial Services

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16-17 Jun 2014 London

Early Bird offer until 9 May £1795 + VAT. Save £300. Regular price: £2095 + VAT. Group discount available at all times: 5% for 2 and 10% for 3 people.

Course Description

This 2 day training program is designed to provide delegates with practical  knowledge about the key concepts, systems, processes and procedures in international securities settlement and custodial 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. 

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
  • A clear understanding of the operational risks involved in these two services
  • An update on recent developments of international securities settlement and custodial services
  • 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 
  • Derivatives and securities settlement process
  • Understanding the role of a settlement department
  • The role of payment system in securities settlements
  • Settlement process including pre-settlement, settlement and reconciliation processes
  • Timing in cash management and Forex exchange
  • 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
  • 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
Register Now

16-17 Jun 2014 London

Early Bird offer until 9 May £1795 + VAT. Save £300. Regular price: £2095 + VAT. Group discount available at all times: 5% for 2 and 10% for 3 people.

Group discount: 2 people - 5% discount, 3 people - 10% discount. Delegates have to be from the same company and register at the same time in order to claim the discount.

International Securities Settlement and Custodial Services - A Two Day Programme

Introduction to the clearing and settlement process

  • Underlying principles of securities and derivatives settlement
  • The stages in a typical trade cycle
  • 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
  • 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


Case Study: ASEAN Economic Community (AEC) and Initiative of Interlinking Payment & Settlement Systems of ASEAN Member Countries

Exercise

Comparing and contrasting the “Initiative of Interlinking Payment & Settlement Systems of ASEAN Member Countries” (case study) with the key concepts presented at the start of the day

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

 

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)


Case Study

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

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

 

DAY TWO

Global custody and derivatives clearing

  • 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

 

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

 

Case Study: CSD Linkage services – Korea Securities Depository

Custody services “corporate actions”

  • What are “corporate actions” and why do they occur?
  • Common types of corporate actions and examples
  • Impact of corporate actions on derivative products
  • The growing importance of proxy voting
  • Importance of timing
  • Industry initiatives


Identifying and managing risks

  • In securities clearing, settlement & custody
  • Settlement, Operational, Financial, Market, Loss of title, Insolvency, Payment
  • In payment systems
  • Settlement, Operating, Payment Finality, Liquidity, Systemic, Zero hour bankruptcy rule.
  • Examples of what can go wrong
  • Emerging markets risk


Industry trends and the future

  • Changes taking place in the industry
  • The financial crisis – its effects
  • Industry recommendations: G30 and ISSA


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?

London 

Stanley has an extensive experience in banking and IT specifically the operations, payments, RTGS and the operational risk aspects of banking covering the UK, Europe, USA, Australia and Southern Africa.
 
Commencing his career at the Standard Bank of South Africa he gained a thorough grounding in all aspects of banking ranging from the bank’s branch system, back-office payments processing. He was also closely involved in the development of electronic banking at the Standard Bank.
 
On leaving South Africa he joined Fundtech Corporation, a leading US based provider of financial technology. He spent time in their Jersey City, London and Melbourne offices working with various bank clients.
 
His has been working closely with organisations such as UNCITRAL (United Nations Commission on International Trade Law), Deutsche Bank, the New York Federal Reserve and CHIPS in New York; APACS (Association for Payment Clearing Services), BACS Payment Schemes, the British Bankers Association, CLS  and Barclays Bank in London; Crédit Agricole in France; UBS and Credit Suisse in Switzerland; the central bank in the Netherlands; Alpha Bank in Greece; the central bank in Romania; the central bank in Kazakhstan; Bank Leumi and the central bank in Israel; the Standard Bank, Clearing Bankers Association, STRATE, BankServ and the central bank in South Africa and ANZ and Commonwealth Bank in Australia. 
 
At a banking industry level he was involved in the creation and development of STRATE (Central Securities Depository in South Africa dealing with the dematerialization, clearing and settlement of all financial instruments. He also served as Vice Chairman of the South African Clearing Bankers Association’s ERAG Group (an interbank payments/operations risk initiative established to identify & eliminate operational, legal and other risks in electronic payments) and later as Chairman of the Payments Association of South Africa Operational Risk Committee.

Dubai 

Richard holds a B.S. in International Business Administration from San Jose State University in California. 

His professional experience spans over 25 years. He started his career with Wells Fargo Bank, following by Fundtech and then moving to international advisory and consulting for the private and high-tech sectors providing high-level consulting, business analysis, project management and training to a wide range of banking clientele across the globe.   

Over his career Richard was involved in International Trade Finance, Cross Border Payments and Settlements, Operational Risk, AML and Corporate Governance amongst others.

He has spent extensive time servicing a diversity of financial institutional clients in many countries including: UK, Ireland, China, Singapore, Hong Kong, Philippines, Korea, Malawi, Ghana, Nigeria, Kenya, South Africa, Poland, Sweden, Netherlands, Greece, Norway, Bermuda and across North America. Clients that

Richard has trained & consulted to include: JP Morgan, Abu Dhabi Commercial Bank, Qatar Exchange, Abu Dhabi Investment Authority, Central Bank of Egypt, Irish Gas, UBS, Central Bank of Ireland, Central Bank of Norway, Merrill Lynch, PGGM, BP, Asian Development Bank, African Development Bank, Instinet, Fundtech, European Central Bank, Brunei Investment Agency, British Steel Pension Fund, Salesforce, Euroclear and Tullet Prebon amongst others.

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International Securities Settlement and Custodial Services <p>This 2 day training program is designed to provide delegates with practical&nbsp; knowledge about the key concepts, systems, processes and procedures in international securities settlement and custodial services as well as operational risks involved.</p> <p>You will have a chance to gain skills necessary to facilitate day-to-day transactions and communication processes between all parties invol ... London