Securities Operations Bootcamp

Price: $1895   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:05/26/2020
  • Course Duration: 2 day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual

Securities Operations Bootcamp

This two-day course will provide an intensive analysis of the middle and back-office functions that support Securities Operations.  This inclusive examination encompasses all of the functional building blocks of the trade lifecycle and beyond, including securities lending, margin, corporate actions, and the requisite recordkeeping for both buy- and sell-side firms. Participants will consider how these functions are structured within their own organizations, as well as the securities industry infrastructure that supplies the critical “plumbing” for the financial markets each day.

The program examines the interdependencies among industry groups such as exchanges, clearinghouses, securities settlement systems, and payment networks.  At the nexus with investors, are the issuers, transfer agents broker/dealers, investment managers, clearing members, custodians and other service providers that must clearly communicate trade instructions and confirmations in order to settle securities and cash transactions.  Understanding the flow of this vital information is crucial for participants either new to the securities industry, looking for the “bigger picture” beyond their specific roles and responsibilities, or those charged with managing operational, market, and credit risk

Case studies with an emphasis on operational risk will be referenced through the program. The course content promotes discussion of real-life “war stories” involving operational Key Risk Indicators (KRI’s), such as concentrations, exceptions, trade and credit limits, trade breaks, failed trades, stock record breaks, suspense entries, DK’s, and cancels/corrects.  Participants will learn how these events, if not properly managed and reported, can have a negative impact on the firms, their customers and counterparties, as well as the financial markets, are large.


By the end of this course, participants will be able to:

  • Define security types including equities, fixed income, and options
  • Distinguish typical front-, middle-, and back-office functional responsibilities
  • Identify the sequence of events in the lifecycle of a trade, from the investment decision to the final clearing, settlement, and reconciliation
  • Understand how and where customer assets are held in custody and under what conditions they may be rehypothecated
  • Examine critical securities operations functions such as Dividend and Interest Payments and Corporate Actions
  • Explore the foundations of Margin, Trade Financing Securities Lending
  • Review the various regulatory organizations that provide oversight of the securities industry, such as the SEC and FINRA
  • Consider various types of reporting used to support securities operations functions
  • Analyze yellow- and red-flag indicators in securities operations which must be addressed and resolved on a daily basis

Section 1:  Market Overview

  • Describe the overview of the marketplaces where equity and fixed income products are traded
  • Compare the differences in market structures for listed vs. OTC
  • Securities Product Types
  • Market and Financial Industry Participants
  • Responsibilities of front-, middle-, and back-office areas
  • Who are the main regulatory bodies with oversight of the securities industry


Section 2: Trade Cycle and Processing Overview

  •  Trade Life Cycle
  •  Order and Trade Management
  •  Trade Matching and Confirmation
  •  Clearance and Settlement
  •  Asset Servicing
  •  Reporting


Section 3: Order and Trade Management

  • Identify the origination of client orders, order capture, and routing
  • Highlight the importance of edit, validation, and compliance checks for order processing
  • Contrast principal vs. agency trading
  • The capture of trade execution detail and its relay back to the firm and the client
  • Describe the current state of electronic trading platforms
  • Describe how trade information needs to be enriched with information related to net money, delivery instructions, and clearance and settlement information
  • Identify where trade information is booked and the importance of the Middle Office as a control function
  • Discuss interfaces to the firm’s books and records


Section 4: Matching, Comparison, and Confirmation

  • Analyze how trades are matched, allocated, confirmed and affirmed
  • Identify the importance of trade enrichment: trade figuration
  • Compare the confirm process for retail vs. institutional trade
  • Review the type of information on a confirmation
  • Highlight how the confirmation process protects clients and counterparties and manages risk
  • Describe the transaction flow for confirmation/affirmation activity
  • Discuss the allocation process for investment managers
  • Understand the importance of delivery instructions
  • SSI (Standing Settlement Instruction) Database
  • Understand the purpose of Clearing Houses in supporting the safety and soundness of the financial markets
  • Evaluate clearing relationships with clearing firms, clearing banks and collateral requirements
  • Highlight issues related to how collateral is held
  • Describe the structure of the NSCC and the FICC
  • Understand the calculation of settlement date obligations as a result of clearing
  • Appreciate the role of a Central Counterparty (CCP) and its role in settlement risk management.
  • Review the CNS process and multilateral netting as well as its impact on liquidity management for self-clearing firms.


Section 5: Settlement 

  • Evaluate the settlement process for the exchange of assets to complete the trade lifecycle on the contractual settlement date
  • Describe how settlement occurs at DTC and the Federal Reserve Bank.
  • Understand the role of the custodians and their interactions with broker/dealers and investment managers in the settlement process
  • How securities and cash settlement is handled for retail clients
  • Identify the updates and data requirements for the settlement process
  • Recognize when a fail has occurred and evaluate fails as a source of risk and exposure, their financial impact to the firm’s regulatory net capital, and to the market as a whole
  • Identify what needs to occur to clean up fails, claims, and the buy-in process
  • Explain how third-party asset verification and custodial reporting are performed
  • Define the reconciliation processes for settlement and custody


Section 6: Asset Servicing

  • Identify the various types of both mandatory and voluntary corporate actions and re-org activity (Mergers, acquisitions, tender offers, bond calls, bankruptcies, rights and warrants exercises, convertible issues, etc.)
  • Describe the steps related to income distributions and entitlements in the form of dividends and interest
  • Understand the role of the Issuer, corporate trustee, transfer agent, broker/dealer, custodian, and depository in corporate action
  • Review voting issues and the proxy process
  • Examine the flow of shareholder communications
  • Evaluate the critical areas of operations risk associated with handling corporate action events, included miscommunication to account holders, missing deadlines for event elections and incorrect payables/receivables
  • Understand the role of market data vendors, how information related to corporate action events is “scrubbed”, and storage of the “the golden copy” of an event


 Section 7: Margin

  • Discuss margin teams for both the business and risk management
  • Understand how credit risk is a factor in margin approvals and limits
  • Describe what is Reg T Margin and what it provides
  • Understand the functions of a margin department in brokerage operations
  • Identify what is covered by the margin and rehypothecation agreements
  • Review the requirements of seg for customer securities
  • Analyze the areas of risk posed by margin businesses and the role played by Operations in managing these risks
  • Understand how initial, maintenance and house margin requirements are calculated


Section 8: Trade Finance and Securities Lending

  • Understand the motivations of stock loan participants: who borrows and why, who lends and what they hope to achieve
  • Highlight the operation needed to support this and sources of operational and credit risk
  • Review short sale requirements, including locating and borrowing securities
  • Describe the opening and closing legs of a stock loan transaction, how contracts are compared and settled
  • Review the recall process and what happens in the event that stock is not returned
  • Identify the importance of collateral management and mark-to-market capability for stock loan transactions
  • Analyze the impact of a dividend or corporate action event while a loan is open
  • Understand how and why rebates are paid to borrowers
  • Define what a repo is and how it is used by broker/dealers and fund managers
  • Explain how a tri-party repo works


Section 9: Recordkeeping and Reconciliations

  • Understand the critical nature of daily reconciliations
  • Review the structure of Stock Records and Cash Ledgers

Examine the structure of Portfolio Accounting for fund managers and custodians


  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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