The role of technology in financial markets
 
An introduction to how technology is being used in and impacting the financial markets. We consider the various stages of a trade and how technology is integrated within the business flow. We also discuss the impact of technology on market infrastructure throughout the trade lifecycle and outline its likely future evolution.

This course looks at how technology is used in different areas of the financial markets so we will refer not only to fixed income but also to equities and FX. The course identifies key differences in how technology is used in these different market sectors, responding to their differing needs.


By completing the course you will:
  • Understand how technology can be used to improve efficiency at various stages of the trade lifecycle within financial markets
  • Become familiar with the different types of technology being employed for different purposes across the markets
  • Understand how the changing regulatory landscape has influenced the need for technology and the subsequent requirements the regulators are placing on the users of such technology
  • Become cognizant with industry hot-topics such as AI and blockchain to feel more confident in engaging in key conversations surrounding this technology in the industry

Who should attend?

This course is designed for those who need to understand how technology is used in the markets. This will include those in key management functions in many areas of technology such as programming, business analysis etc., as well as other core areas of the firm such as Control & Compliance.


Details of the next seminar

London
2-3 December


Course Trainer

Gail Rolland
Day One

History of Fintech
  • A look at how the industry has evolved
  • Why it is so significant
  • Impact on the markets
Before the Trade
  • Preparing for the trade: what needs to be in place?
  • Client onboarding and KYC: what this is and why it must be done; verification; building the static client data file and its uses
  • How technology can help, and the challenges faced in this function; creating audit trails; ongoing management of the datafiles
Bond Issuance
  • Evolution of electronic securities: how the market is moving away from paper securities; immobilised and dematerialised markets
  • Putting technology into the chain: current solutions for managing new issuance procedures, connecting issuers to intermediaries; bookbuilding and position management
Analysis – Making the trade decision
  • Who makes this decision: evolving roles of the trader, salesperson, asset manager and quant
  • Key data in different market sectors: what data do we need to make this decision; measures of valuation; real-time and historic data
  • Role of the data vendors
  • Typical data analysis models and how technology is used by the buy-side/sell-side to provide them with the perspectives they need
  • Technology routes in different markets: understanding why different markets use technology for different purpose e.g. automation in fixed income markets, algo-trading in equity
Execution
  • The transformation of trading: How is a trade traditionally executed - a look at how execution has evolved from floor-based trading, through telephone execution to advent of ECNs/ information networks; multi-contributor electronic trading systems, and rules-based execution
  • OTC and Exchange-traded markets
  • Quote-driven and order-driven markets
  • Trading paradigms: interbank; bank(member) to exchange; bank (member) to customer; customer to customer; systematic internalisers
  • Order management systems (OMS) and execution management systems (EMS)
  • Mapping execution to market sector: a look at the dominant models in the different market areas and how the markets are evolving today; combining analysis with execution

Day Two

After the Trade 1 – Immediate post-trade and risk management
  • STP: what this is and its dependence on technology
  • Clearing and settlement: an overview of what happens for different market products
  • Steps to automation: how technology can manage this process from confirmation to settlement and interacting with the relevant parts of Operations; role of data dictionaries; interfacing with static data; managing exceptions
  • Mapping clearing and settlement to market sector: a look at how this is achieved in different market areas including a look at the role of payment systems, CSDs and CCPs
  • Position-keeping systems: revaluation and marking to market
  • Risk management systems: analysing risk positions and suggesting management strategies
Connecting with other departments – Allowing Oversight
  • A look at how technology enables adjunct departments to oversee the trade flow and understanding why this is significant
  • Control and Compliance: a look at their function; illustrating how technology gives them the data they need to carry out their checks
  • Regulatory reporting: why regulators need to oversee trades and trading; key regulatory requirements on market participants; purpose of regulatory reporting; managing the report flow, including types of report, challenges and multiple requirements
  • Key regulatory drivers, including MiFID II, SFTR
The Regulators
  • Identifying the market regulators and how they interact with the market participants
  • How are they involved in the technological advances in the market: identifying the drivers for change in the market; understanding the impact; understanding the regulatory grey area in which some elements of FinTech will sit; role of “regulatory sandboxes” and other types of innovation support schemes
  • Examples of regulatory response to Technology-driven advances in the market, e.g. MiFID II requirements for HFT
Hot topics
  • Understanding the eco-system as it is today and the impact and evolution of standard protocols, such as FIX (Financial Information eXchange), SWIFT messaging
  • A look at some of the major technology-driven initiatives in the markets, including:
    • Managing Big Data
    • Blockchain (Distributed Ledger Technology)
    • Machine Learning: machine to machine and rise of AI machine learning
  • How will the new disruptive technology change the face of financial markets in the future?
  • Role of Big Tech companies in financial markets
  • Understanding and managing the particular risks of the technology revolution in the markets
Details of next course



London


International Capital Market Association (ICMA) Limited
3rd Floor
23 College Hill
London EC4R 2RP
United Kingdom



2-3 December 2019

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For security reasons, delegates who have not registered in advance will not be admitted to this course.  Delegates will be required to provide photo identification on arrival, to ensure entry.



Cost

£1,650 for members and £1,950 for non-members

The course fee includes all lunches, coffee breaks and training materials.

Payment can be made by secure online credit card or by invoice.


Terms and conditions

Please click here to view our terms and conditions before registering.


Contact

Should you have any queries, please contact education@icmagroup.org.



 
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