Failed Trade Settlement is very expensive in terms of Penalties, extra working time needed to resolve a situation and possible loss of reputation. It also erodes a good client relationship. It is not really surprising that clients give their highest ratings to some of the most expensive Custodians, Brokers and Banks. Cheap is often dear and dear is often cheap!
Regulators are now also paying far more attention to Fails Management in assessing a company’s safety, security, and hence regulatory capital as required under Basle 2. Recent events have also made Regulators far tougher and less forgiving to subjects’ shortcomings and lapses.
This effective one day course highlights the cost of failed securities (equities and bonds) trades and analyses their causes. Preventive measures are described and detailed. It is a very useful course for those with little or no experience or those requiring an overview.
Delegates
The course is suitable for:
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existing staff who have limited exposure to failed trades and require a greater understanding of the relationship between their work and failed trades
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team leaders and management, to increase their awareness of failed trades management
Participants will be from Asset Managers, Banks, Brokers, Custodians, Fund Managers, Hedge Funds, Insurance and Life Assurance companies as well as Government Regulators. The course is applicable in any country active in the Securities business.
Participants need to have at least 6 months work experience in or with Back Office or Operations or Custody areas (eg areas connecting to the Back Office or Operations) and to have both a basic Securities and Settlements knowledge or experience.
Failed Trades – Overview
Introduction to failed trades, including definition, overview of impact, and linking to the trade lifecycle.
Trade Lifecycle – Overview
The primary components of the securities trade lifecycle (to ensure all attendees have a similar understanding) highlighting the point at which fails occur.
Impact of Failed Trades
The positive & negative impact.
The functions and business attributes that are affected by failed trades, including:
-Interest on cash
-Client relationships
-Corporate Actions
-Counterparty
-Exposure
-Capital adequacy (Basle II)
-Financial statements
Identifying Failed Trades
Methods by which fails are highlighted to an organisation by its custodians and central securities depositories.
Causes of Failed Trades
Identifies the various causes of fails, including:
-non-matching settlement instructions
-seller having insufficient securities
-securities in different location
Prevention of Failed Trades
Pinpoints the operation & trading actions that maximise possibility of settling trades on their due date including:
-working within deadlines
-resolution of non matching instructions
-securities realignment
-securities borrowing
-cash and collateral management
Additionally covers the advantages/disadvantages of partial settlement, free of payment settlement and use of statistics to minimise potential fails.
Enforcing Trade Settlement
Describes the ultimate course of action open to buyers and sellers inn order to force a counterparty to settle a trade.
Interest Claims
Identifies the circumstances under which lost cash interest is (and is not) recoverable from counterparties, including cash calculations, claiming procedure and internal monitoring of unpaid claims.
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Todays Date: 1 Febuary 2010 |
| Duration | 1 day |
| London | 9 February 2010 24 June 2010 Additional dates on request |
| Fee | Ј550 + VAT |