Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com

Equity Markets Trading & Operations

Chapter Topics Types of Markets Trade Life Cycle What will you learn Classification - Primary and Secondary markets. A brief outline of the life cycle of an equity share - from Issuance to Asset Servicing. The various market participants in an equity transaction and their role in the trade life cycle. The common terminologies in the stock market, how stocks are classified by traders, and the jargon used in practice. Classes of investors as defined by SEBI, Who is an Anchor investor. The detailed issuance process step by step. 3 Hours Private Placement, Follow-on Public offer Fundamental Analysis Trade Life Cycle: Pre-Trade Analysis Technical Analysis Other types of share issuances from corporate. The process of analysing stocks through fundamental factors. The process of analysing stocks using charts and past investor behaviour. The process of what-if analysis and stress testing done by large financial institutions. The process and documentation required prior to trading. The actual process of classifying and placing orders on the online trading system. 2 Hours Recommended Study Time

Equity Markets Introduction

Market Participants

Key Terms

Investor Categories Issuance Process Trade Life Cycle: Issuance

2 Hours

Analytics & Simulation Secondary Market Trading Order Placement Trade Life Cycle: Trading Process Trading Workflow - end-to-end Trade Life Cycle: Trading Strategies Classification of Stocks

2 Hours

A detailed understanding of the trading process step by step. How to group stocks for trading purposes, and the trading strategies for each group.

2 Hours

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com Trading Beta Margin Trading How to calculate and use Beta for trading stocks. How margin trading works and the concept of leverage. The detailed clearing process and how the obligations of the various parties are determined. The detailed settlement process with timelines. Why settlement failure occurs, and the process of Securities Lending and Borrowing.

Clearing Process

Trade Life Cycle: Post Trade

Settlement Process Settlement Failure

3 Hours

Introduction

Role of the Custodian/DP in the asset servicing process, and the list of activities undertaken. How Dividend is collected and disbursed. Relevance of record date, ex-dividend date etc. Voluntary and Mandatory actions taken by the issuer such as Rights, stock splits, acquisitions etc., and their impact on stock holding. How to value stocks - also called Mark to Market (MTM). The various margins imposed by the exchange, and they are computed. Limits imposed by institutions internally for risk management purposes. Total 18 Hours

Trade Life Cycle: Asset Servicing

Asset Servicing: Income Collection

2 Hours

Corporate Actions

Reporting

Risk Management

Margins

2 Hours

Market Risk Limits

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com

Bond Markets Trading & Operations

Chapter Topics What will you learn Recommended Study Time 2 Hours

Bond Markets Introduction

Key terms

Understanding Key terms such as Coupon, Yield etc. Concept of Present Value, Future Value, Day count conventions. The actual arithmetic behind bond pricing, and computation of yield given a price. Calculating Profit or Loss on the bond portfolio.

Interest Rate Arithmetic Bond Pricing Bond Arithmetic Valuation of Bonds

4 Hours

Classification Based on Type of Issuers Classification Based on Characteristics The Indian Bond Market Money Market Instruments

The features of G-secs, T-bills, State Govt. bonds and Corporate Bonds.

The features of Convertibles, Callable and Puttable bonds. The features of the call money market, CDs, CPs and the Repo market.

3 Hours

Market Overview

The features of the Indian Bond market.

Market players

The market players, and the typical types of bonds they trade in.

Issuance of Govt. Securities Issuance Issuance of Corporate Bonds

The detailed auction process of bidding for bond auctions , the role of Primary Dealers, underwriting etc. How Corporate bonds are issued in practice.

2 Hours

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com Market Data and Events Linkage with Other Markets Trading G-Secs The market data and events that traders must look for, and their impact. 3 Hours Impact of events in the stock and currency markets on bond markets. How to play the yield curve, and the trading strategies used in practice. How to play the spreads, and the trading strategies used in practice. How FIIs use the FX-MM aribtrage to make money. How trades are done on the NDS and other order matching systems. How bond portfolios are classified into HTM,AFS & HFT, and its impact on P/L. How bond trades are recorded and settled. Basic accounting entries governing a bond trade. Actions that take place once the bond trade has settled. How to calculate and interpret PV01, and how it is used by banks for risk management. Other parameters used to measure risk on a bond portfolio, their calculation and interpretation. 2 Hours

Bond Markets: Pre-Trade Analysis

Trading Corporate Bonds FX-MM Arbitrage

Trading

4 Hours

Trading Process Banks Investment Portfolio Post Trade Process G-secs Post Trade & Asset Servicing Trade Accounting

3 Hours

Asset Servicing Risk Management PVBP/PV01/DV01

Macaulay Duration, Modified Duration, Convexity

Total

23 Hours

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com

Currency Markets Trading & Operations

Chapter Topics Features & Market participants Foreign Exchange Fundamentals Exchange Rate Economics Quoting Conventions Cross Rates Margins Quoting Strategy Spot Market Arithmetic - Part II Trading Position What will you learn The features and the market players in the Forex markets. Key terms such as - Exchange rate, base currency, quoted currency etc. BOP and its components, and how it impacts the exchange rate. How exchange rates are quoted, bid and offer. Calculation of cross rates, and thumb rules used in practice. How margins are built in, for quoting customer rates. How to trend rates in the market to achieve your trading objective How to calculate trading position for each currency pair, and in one reporting currency for the bank as a whole. The factors that affect spot markets and their interpretation for trading purposes. How the USD/INR market works, the demand and supply factors, and the role of SBI and RBI in these markets. How trades actually take place, live conversations Trading jargon used in practice. How to use ethics and courtesy to trade and be respected in the market Why do customers book forward transactions, and nature of forward contracts in terms of cashflows. 2 Hours Calculation of Forward Rates How to mathematically compute forward rates using interest rates. 2 Hours 4 Hours 2 Hours Recommended Study Time

Currency Markets Introduction

2 Hours

The Spot Market Arithmetic - Part I

2 Hours

Factors Affecting Forex Markets Spot Markets: Pre-Trade Analysis The Indian Rupee Market

Trading Process Spot Markets Trading Process Trading Vocabulary Asking Etiquette

Forward Transactions Forwards Market Arithmetic (Part I)

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com Swap Markets What are swaps, and how they are used for computing forward rates in the inter-bank market. How to mathematically compute swap rates using interest rate differentials How swaps are quoted in practice, thumb rules on bid and offer. How swaps are traded, and the factors that influence swap rates Computing cross currency forward rates using easy thumb rules. The nature of the Indian swap market, and the factors that influence swap markets Rolling months and Calendar months, how to quote odd date forward contracts. Typical customer transactions rollovers, early delivery, cancellation etc. How the NDF market works, and its impact on the domestic onshore rupee market. How different risk limits are set in practice - calculation of SR and PSR for credit risk, position and loss limits for market risk etc. Concept of CLS and how it is used to reduce settlement risk. A detailed example on how a trade is settled, and the various SWIFT messages to be sent for settlement instructions. How to track Rate Reasonability, manage Nostro reconciliations etc. What are currency futures, and how they are different from OTC forwards. 2 Hours 2 Hours

Calculating the Swap Rate Swap - Bid/Offer Swap Trading Cross Currency Forward Transactions Features of the Indian Swap Market Market Factors Unique to Indian Market The Indian Swap Market Customer Transactions

Forwards Market Arithmetic (Part II)

2 Hours

Non Deliverable Forwards (NDFs) Middle Office - Risk Limits

Continuous Linked Settlement Trade Life Cycle: Post Trade Back Office Settlement & Delivery

Back office Other Functions Introduction Currency Futures

2 Hours

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!

Course Outlines: Treasury and Capital Markets

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com Live Quotes Live quotes from NSE. and how trade takes place on the exchange. How futures settle and the various margins imposed by the exchange. Total 22 Hours

Settlement

Derivatives A Brief Overview

Chapter Topics Building blocks What will you learn How derivatives can be classified into three broad categories - credit extension, price fixing and price insurance How hybrid structures can be broken down into building blocks to understand the features and pricing 2 Hours Recommended Study Time

The Building Blocks

Combining the Building Blocks

Total

2 Hours

Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!