Advanced Global Securities Operations II

Module description

This module is intended for Financial Services Professional Degree Apprenticeship students who would like to develop a solid understanding of the global regulatory environment on a regulated UK firm’s securities operation. This module shows how the understanding of global securities operations can help support an organisation’s management in investment decision-making and control of the following aspects: cash management, processing of corporate actions, straight through processing environment, process of outsourcing/offshoring and data management.

Full module specification

Module aims

The overall aim of the module is to provide a broad understanding on how the global regulatory environment impacts cash management, corporate actions, straight-through processing, outsourcing/offshoring and data management and, in particular, how the regulatory environment dictates processes for a regulated UK firm.  Students are advised to become familiar with the rules laid down by the Financial Conduct Authority. 

The module covers topic on cash management which includes the prediction of cash requirements (funding requirements) and the movement of cash itself. Students will understand that the movement of securities and, in particular, the settlement of securities trades, is linked to the movement of the corresponding counter value of cash.

Attention will be paid to cash management to produce additional income, together with strong capital growth performance, affecting the overall performance of the securities portfolio. A general overview on the worldwide cash management will be presented.  

This module discusses how a worldwide publicly-traded company issues a corporate action, initiating a process that brings actual change to its issued shares. By understanding the different types of processes and their effects, students will be able to have a clearer picture of what a corporate action indicates about a company’s financial affairs and how that action will influence the company’s share price and performance. Students should be able recognise the importance of management review and authorisation of the action taken and the accuracy of that action at each critical stage of the process. 

This module also focuses on the key initiatives behind Straight-Through Processing (STP) including specialist applications/systems and explains the advantages and disadvantages that arise with STP. A summary on how a firm might monitor the success of an outsourcing/offshoring project is provided. Students should be able to identify the main information providers in the financial services industry and especially in global securities operations. 

ILO: Module-specific skills

• 1. Describe the methods used to manage surplus cash balances
• 2. Understand the time frames of cash payment methods and how they can influence with positioning
• 3. Explain the reasons for a corporation initiating a particular corporate action
• 4. Identify the risks and benefits associated with underwriting
• 5. Analyse a typical corporate action describing the management of the process and the timetable applicable at each stage
• 6. Explain the business reasons behind the development of Straight-Through-Processing (STP) and technology
• 7. Evaluate the advantages and disadvantages of outsourcing or offshoring
• 8. Criticise how the global regulatory environment impacts on the aspects of securities operations and in particular how the regulatory environment dictates processes for a regulated UK firm
• 9. Understand how and when data is used and the interaction with the global securities environment

ILO: Discipline-specific skills

• 10. Understand how the global regulatory environment impacts the processes of global securities operations
• 11. Understand the importance of gathering the correct data of clients and monitoring and operational controls
• 12. Keep up to date with sector relevant legal/regulatory changes

ILO: Personal and key skills

• 13. Demonstrate sound understanding of how and when data is used and the interaction with the global securities operations environment
• 14. Contribute to the development of strategic plans for the global securities operations

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Details of re-assessment (where required by referral or deferral)

Re-assessment notes

Defer – as first time

Refer – capped at 40%

Syllabus plan

• Investment Account Openings
• Market and Stock Exchange Fees and Taxes
• Clearing and Settlement
• Custodians
• Stock Lending and Stock Borrowing
• Cash Management
• Corporate Entitlements
• Straight-Through Processing and Technology
• Outsourcing/Off-shoring
• Data Management

Indicative learning resources - Basic reading

Basic reading:

• Advanced Global Securities Operations (Diploma in Investment Operations Programme) Workbook Edition 6, Chartered Institute for Securities and Investment.

Module has an active ELE page?

Yes

Origin date

28/02/2019

Last revision date

15/03/2019