Clearing houses and stock exchanges are vital to managing counterparty risk. In recent years a lot of attention has been focused on the subject of post trade environment - clearing and settlement.
This informative and easy to follow one day course, has been specially designed to explain how the clearing and settlement process works for derivatives and securities, demonstrating how banks and their clients manage their counterparty risk - which is particularly important in the post financial era.
The course also shows in some detail, how the margining system allows for the netting of risk and the effective management of collateral. Course is conducted by en expert with 28 years of experience in the market.
By the end of this course you will be able to:
Understand the significance of counterparty risk – especially post
Explain the role and function of the central clearing counterparty (CCP)
Illustrate the relationship between clearing members and clients and
show how different types of client accounts can be set up and managed
Demonstrate how CCPs and central security depositories (CSDs)
Show how CCPs are structured and explain their “lines of defence”
Describe how listed derivatives v OTC derivatives are collateralised and
Show how the margining system works for futures and options and
other derivatives like swaps compared with bonds and equities
Illustrate the benefit of portfolio based margining systems like SPAN
and VaR margining methodology
You may be interested in our 2 day International Securities Settlement & Custodial Services course in London & Dubai.