From 26 Jun 2017 to 29 Jun 2017    The Mechanics of Derivatives    in Shanghai / China

Capital Markets Back-Office Certification Programme (CAMBOC)

Mastering Securities Back-Office Operations

In cooperation with the House of Training Quality Circle Capital Markets and ICMA Luxembourg (International Capital Market Association).

Objectives

CAMBOC is a comprehensive programme that covers many aspects of securities back-office operations.

The main objective of CAMBOC is to provide participants with a good understanding of the diverse activities that are carried out in a securities back office, including settlement, custody, treasury, securities financing, collateral management, tax processing and payments. The programme also includes a section on managing risk in the back office.

Methodology

The programme combines 2 parts:

1. An E-learning course “International Financial Markets” (maximum duration: 12 hours) with a final non-eliminatory test.

Participants are required to take this course and pass the test with a minimum recommended score of 60% before the beginning of the second part.

2. An instructor-led training (ILT) in Luxembourg. The ILT part of the programme is taught by industry experts, who effectively combine theory with practical examples, exercises and case studies.

The blended methodology used in CAMBOC is based on an optimal combination of theory and practice. Theoretical aspects are based on the latest market standards, while examples, case studies and exercises are used to present and reinforce the practical application of the material.

Target group

The level of this course is intermediate to high. It focuses on improving the efficiency of back-office staff in banks and other financial institutions by covering different aspects of securities and cash operations in detail. Participants should have a minimum of 3 years experience in back-office operations or a similar area.

A good level of Engish is required.

Knowledge assessment

  • Part 1: E-learning non-eliminatory test: prerequisite for the participation in the Luxembourg course.

    Part 2 in Luxembourg: Participants have their newly acquired knowledge validated through a group presentation and a written exam.

    Participants who succeed the group presentation and the exams will receive a certificate of achievement issued by the House of Training and ICMA, Luxembourg region.

Location & duration

  • E-learning course: approx. 10 hours
  • ILT cours in Luxembourg : 7 working days including 3 hours examination
  • ILT in HoT-ATTF partner countries: divided in 2 parts of 4 days, exam included

Detailed programme Explode

Part 1 - E-Learning:

The specific content of the E-learning course is the following:

  • Financial Markets
  • Financial Instruments: Securities
  • Financial Instruments: Derivatives and Investment Funds
  • Market Activities
  • Market Players
  • Future Trends

Part 2:

Definitions

  • ISO standards
  • ISO codes
  • Classification scheme for financial instruments (ISO 10962: 2015)
  • Players in financial markets
  • SWIFT as a back-office standard
  • Financial markets
  • Primary market
  • Secondary market

Overview of the Transaction Chain of Securities Processing

  • Front office
  • Pre-trade
  • Trading
  • Middle office
  • Functions of the middle office
  • Importance of the middle office
  • Back office

Back-Office Operations

  • Matching
  • Trade matching
  • Pre-settlement matching
  • ICMA rules
  • Clearing
  • Gross clearing
  • Net clearing
  • Central counterparties

Settlement

  • Settlement criteria
  • Instrument type
  • Payment method
  • Currency, multi-currency
  • Settlement cycle
  • CSDs vs. ICSDs
  • Settlement models
  • Domestic
  • Cross-border
  • ICSD internal
  • Net settlement
  • Role of central banks in settlement
  • Target 2 Securities

Custody for equities

  • Corporate actions
  • Classification of corporate actions
  • Initial public offerings (IPOs)
  • Dividends
  • Annual general meetings/extraordinary general meetings (AGMs/EGMs), proxy voting
  • Splits/reverse splits
  • Exchanges
  • Capital increases
  • Mergers, acquisitions, de-mergers
  • Anti-takeover defences
  • Tenders, Dutch auctions
  • Legal/regulatory issues regarding equities

Custody for debt instruments

  • Interest payments
  • Conversions
  • Restructuring
  • Redemptions, early/partial redemptions

Tax processing for securities

  • Withholding tax
  • Capital gains tax
  • Other types of taxes
  • Tax reclamation

Custodian fees

  • Transaction fees
  • Custody fees
  • Other types of fees

Treasury and Cash Management

  • Treasury
  • Placements, borrowing
  • Foreign exchange
  • Hedging, derivatives
  • Reconciliation
  • Cash correspondents
  • Payments
  • Payment systems
  • Market practice

Securities Financing

  • Securities lending and borrowing
  • Repurchase agreements ("Repos")
  • Sell/buybacks

Collateral Management

  • Uses of collateral
  • Managing different types of collateral
  • Haircuts and margins
  • Marking to market
  • Legal/regulatory issues

Fund Custody

  • Functions of a fund custodian/depositary
  • Responsibilities of a fund custodian/depositary
  • Variations for standard ("UCITS") and alternative funds

Managing Risk in the Back Office

  • Types of risk in financial services
  • Basics of risk management
  • Risk in the back office
  • Counterparty/settlement risk
  • Operational risk
  • Processes
  • People
  • Systems
  • External events

Regulatory Issues in the Back Office

  • International standards
  • European regulations
  • Prevention of money laundering and terrorist financing in the back office

Technology in the Back Office

Case Studies and Group Projects

  • Day 6 of the course will be dedicated to running simulations and analysing case studies involving failed transactions, fraud and human errors. The different cases will be analysed by groups of course participants, who will present their findings to the other participants and to a jury of experts. An evaluation of the quality of the presentations will be included in the overall score of each participant.
  • Examples of the case studies to be analysed include:
  • Settlement failures
  • Missed deadlines on corporate actions
  • Wrong information received
  • Mispriced securities
  • Fraud in the back office
  • Money laundering through the use of securities

Review and Exam

  • Review of the entire programme
  • Exam

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