• University of Exeter Business School
• Module

Advanced Global Securities Operations I

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: the opening of client investment accounts in the UK, the market and stock exchange fees applicable to clients, the clearing and settlement, the custodians, and securities lending and borrowing.  

Module aims - intentions of the module

This module aims to provide students with an understanding of global securities operations in the following aspects: the opening of client investment accounts in the UK, the market and stock exchange fees applicable to clients, the clearing and settlement, the custodians and securities lending and borrowing.

Students will be able to analyse the impact of global regulatory environment on a regulated UK firm’s securities operation and support an organisation’s management in investment decision-making and control. You will be able to analyse the risks that arise at each stage of the settlement process and understand the direct impact of risks on the firm’s ability to be efficient in the settlement and clearing of trades. The module emphasises the need to maintain adequate organisational arrangements to minimise the risk of loss and take additional actions when mitigating customers.

This module also outlines some examples of the global structures where securities lending takes place in order to alleviate settlement failures. Benefits and risks to organisations that borrow/lend securities will be discussed, including the mechanics of the process and the methods of selection of the lender/borrower. Students will understand how the global regulatory environment impacts on securities lending and borrowing and in particular how the UK 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.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. Understand the regulations and procedures for opening investment accounts
• 2. Identify the sources of market and exchange fees and tax when trading securities
• 3. Describe the life-cycle of a transaction through to the settlement in the UK and the other global markets
• 4. Analyse the risks that arise at each stage of the settlement process
• 5. Describe the due diligence process for the selection of custodians
• 6. Appraise the benefits and risks of stock lending and stock borrowing

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

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

ILO: Personal and key skills

On successfully completing the module you will be able to...

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

Syllabus plan

• Investment Account Openings
• Market and Stock Exchange Fees and Taxes
• Clearing and Settlement
• Custodians
• Stock Lending and Stock Borrowing

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%

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.

Key words search

Global Securities Operations