Securities Clearing and Settlement

Course Description

What used to be termed pejoratively the “back office” of securities processing has moved to the front line of strategic discussions. The market’s goal of achieving “straight-through processing” (STP) and cost reduction is largely dependent on the rationalisation of international clearing and settlement. Despite the recognition that back office securities processing has gained, it remains very complex.

The objective of this course is to provide participants with a solid understanding of what happens to securities “after the trade is made” and how the world of clearing and settlement is changing. The course analyses a variety of different approaches to clearing and settlement (e.g., net vs. gross) and how they shape market practice. It also covers different international and domestic markets and describes how they approach clearing and settlement. A basic understanding of financial services is assumed (cf., the course International Financial Markets).

Learning Objectives

By the end of the course, delegates will have a good understanding of

• the attributes of securities according to the ISO standard 10962

• what clearing and settlement are and how they function

• the different approaches to clearing and settlement that exist

• the life cycle of a securities transaction

• how instrument characteristics impact clearing and settlement

• the different settlement criteria

• the characteristics of central securities depositories (CSD’s), both
  domestic and international

• central counterparties and how they are used

• differences in market practice in diverse markets

• straight-through processing and initiatives to standardise information flows in the market

• the principal risk and regulatory issues affecting clearing and settlement

Target Audience

Financial service professionals working in back office areas; financial service professionals from other areas who are involved with back office operations; other professionals interested in clearing and settlement.

Duration

1 day for up to 12 participants