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Livestreamed
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OVERVIEW
COURSE SYLLABUS
COURSE DETAILS
TEST YOUR KNOWLEDGE
Financial technology – or FinTech – is having an enormous impact on the financial services industry and nowhere is this more noticeable than in the changes taking place in DCM. This course is designed to provide participants with an accessible review of the role of technology in the primary markets, both now and in the future.
Course Outcomes
By completing the course you will be able to:
- describe the role technology plays in modern capital markets
- explain key concepts and themes for primary market technology, including digitization of book-building, new issue automation, the impact of artificial intelligence, digital assets
- understand high-level aspects of technology development, including the tech stack, intellectual property rights, licensing and user experience
- recap the work that ICMA does with respect to technology
Describe the types of market participants and appreciate why these firms engage in SLB, and their impact on capital markets and retail investors
Understand the operational, legal and regulatory risks and issues involved
Comprehend the advantages/disadvantages of using different types of collateral
Appreciate the impact that corporate actions have on the lent security and on securities collateral
Discover some relevant anecdotes and SLB case studies
Who should attend?
This course is appropriate for those who have capital markets experience but do not have a background in technology.
Course Trainer
Duncan Philips
The course syllabus is divided into the following key topic areas:
- The Role of Technology
- Defining the terms “technology”, “information technology” and “financial technology” and developing context
- Reviewing major developments and themes in technology and computing and their impact on the world
- Thinking about why technology is needed and the problems it solves.
- Course overview
- Digital Bookbuilding
- Key bookbuilding workflows and the value of technology
- A review of 20 years of technology development
- Impact on workflows and practices
- Potential future developments
- Digitization, Automation and Structured Data
- Defining and differentiating these terms
- How to capture and process structured data
- Where is automation viable and not viable?
- Impact on the primary market
- Digital Assets
- Digital assets and distributed ledger technology
- Blockchain and Cryptoassets
- Major initiatives and projects
- The case of central bank digital currencies
- Legal Implications
- Why technology is relevant to security documentation
- How to automate the creation of legal documents
- Protecting technology - intellectual property rights
- Key aspects of licensing technology
- Building Technology
- How is technology actually built
- The developmental process - Agile practices
- Functional, Non-functional requirements
- Business Analysis
- Tech company org structures & roles.
- The tech stack
- Hardware
- Software and applications
- Networks, Client / server, front-end / back-end
- Programming languages
- Cloud
- Modern cloud computing
- Cloud deployment models
- Cloud service models - IaaS, PaaS, SaaS
- Virtualization / Containerization
- Funding FinTechs
- A review of funding methods
- Case studies
Securities Lending & Borrowing (SLB) – The Fundamentals
What is Securities Lending?
The Purpose: Why Do Lenders Lend & Borrowers Borrow?
Participants & Structure
Trading Strategies
Examples
SLB Trade Lifecycle - An Overview
Short Selling, Naked Short Selling
Locates, Trade Execution & Fails
Margin
Corporate Events
Billing
The Marketplace – Participants & Stakeholders
Lenders, Borrowers and Intermediaries
Examples
The Lender’s Perspective: Motivations and Considerations
The Borrower’s Perspective: Motivations and Considerations
Global custodians
Third-party lending agents
Central counterparties
Anecdotes
SLB Trade Lifecycle
Pre-trading, Locates
Trade execution
Pre-settlement
Settlement
Buy-ins
Mark to Market
Margin calls
Recall/return of lent settlements
Fees & Billing
Assets & Collateral
Equity vs Fixed Income
Fundamental collateral concepts
Margin: Purpose & use
Types of collateral
Rehypothecation
Legal Documentation
GMSLA
Securities lending agency agreement
GMRA
Updating Books & Records
Securities bookkeeping: Definition & purpose
Importance of updating books & records
Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
SLB and Corporate Actions
Corporate actions: Overview
Income
*Cash dividends
*Lent securities
*Short sale proceeds
*Lent/borrowed equity
Voting
Withholding tax
Risks in Securities Lending & Borrowing
Market Risk
Credit Risk
Operational Risk
Legal Risk
Reputational Risk
Regulation
Introduction
EU short selling & financial transactions tax
CSDR
Reporting to a central trade repository
Recent SLB Scandals & Controversies
The Lehman saga uncover
Livestreamed Course
ICMA courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.
The Primary Market Financial Technology live sessions are delivered in five 3.5 hour sessions over the course of two weeks. You will be given access to the course materials before the live sessions, and will have access to those for a total of six months. During these six months you will have the option to keep working through the course materials at your own pace.
Live sessions: June 16, 17, 18, 23, 24 and 25
10.00-13.30 CEST | Time Zone Converter
Livestreamed course fees
Members: EUR 2,050 + VAT (if applicable)
Non-members: EUR 2,600 + VAT (if applicable)
For security reasons, delegates who have not registered in advance will not be admitted to the live sessions.
Please note:
- All payments must be made in Euro.
- Invoices for single registrations are subject to an additional Euro 50 to cover administration costs*. No administration fee applies for invoices covering two or more registrations.
Contact
Should you have any queries, please contact education@icmagroup.org.
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