Securities Operations

The only comprehensive account of operational risk in securities settlements Securities Operations focuses on the settlement aspects of a securities transaction. As financial analysts make a greater effort toward quantifying and managing operational risk, they are paying more attention to securities transactions in general and to the settlement phase in particular. While describing the practical issues, this book enumerates the different "back office" related risks potentially encountered throughout the settlement. Simmons also covers more advanced topics such as derivatives, trade compensation, internal allocation of funding costs, and operational performance measurement. Michael Simmons (London, UK) is currently Head of Business Consultancy at Wilco International, a major software systems provider to the financial markets. Over the years, financial professionals around the world have looked to the Wiley Finance series and its wide array of bestselling books for the knowledge, insights, and techniques that are essential to success in financial markets. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to respond. With critically acclaimed books by leading thinkers on value investing, risk management, asset allocation, and many other critical subjects, the Wiley Finance series provides the financial community with information they want. Written to provide professionals and individuals with the most current thinking from the best minds in the industry, it is no wonder that the Wiley Finance series is the first and last stop for financial professionals looking to increase their financial expertise.

As the industry-altering shift from Trade Date +5 to Trade Date +3 grows ever closer, securities operations executives and managers are looking for facts, figures and updates on new technology that will enable them to meet the new 3-day settlement periods. This text ties together much-needed information on the back office (operations) and the data processing (information systems) functions of international securities industries.

"As the markets undergo change so too do the administration, clearing and settlement functions, as the clearing houses, securities depositories and custodians merge and diversify. This is going to impact on the operations teams that support the trading, sales and retail business. A failure to be aware of and to understand the impact of changes in the markets will create massive problems, greater risk and ultimately financial losses. And yet the sheer size and diversity of the global markets, together with the rapid pace of change and expansion, and the increasing volume of transactions needing to be processed, present a massive challenge to operations teams and managers."--BOOK JACKET.

This comprehensive book offers an in-depth analysis of the operational facets of stock brokerage, catering to individuals keen on mastering broker operations and risk management within the securities markets. It is structured to enhance understanding through a detailed examination of various critical areas, such as: • Client Onboarding • Trade Life Cycle • Compliance Requirements Related to Report Submission • Redressal of Investor Grievances Upon completing this book, readers will gain a foundational understanding of the Indian securities market, including its products, participants, and the roles they play. The book aims to establish a minimum knowledge benchmark for associated persons of registered stock brokers, trading members, and clearing members, focusing on managing assets or funds, investor grievance redressal, internal control, risk management, and operational risk aspects. The Present Publication is the January 2024 workbook version, published exclusively by Taxmann for NISM Certification Examination VII [Securities Operations and Risk Management], with the following noteworthy features: • [Know] the following in detail: o Basics of the Indian Securities Market – Explores the basics of securities, the money market, products traded in the Indian securities market, and the concept of International Financial Services Centres (IFSC) o Market Participants – Details the roles of investors, issuers, the market structure, participants, and regulators in the securities market o Securities Trade Life Cycle – Offers insights into front office, middle office, and back office operations, outlining their functions and significance • [Understanding] of the following: o Clearing Process – Explains the role of clearing corporations, clearing banks, clearing members, custodians, depositories, and the clearing process itself o Settlement Process – Covers the determination of settlement obligations, settlement of funds and securities, auction of securities, and corporate actions adjustment o Risk Management – Discusses risk management strategies, compliance, regulatory reporting, and the Core Settlement Guarantee Fund o Investor Grievances and Arbitration – Focuses on investor grievance mechanisms, online dispute resolution, and investor protection funds o Other Services Provided by Brokers – Explores IPO applications, trading of mutual fund units, portfolio management service, research reports, depository services, margin trading, and internet-based trading technologies The contents of the book are as follows: • Introduction to the Securities Market o Overview of the securities market o Insights into the money market o Exploration of products traded in the Indian securities market o Discussion on International Financial Services Centres (IFSC) • Market Participants in the Securities Market o Detailed introduction to different market participants o Roles and perspectives of investors and issuers o Overview of market structure and key participants o An in-depth look at regulators in the securities market • Introduction to the Securities Broking Operations o Detailed stages of the securities trade life cycle o Examination of front office, middle office, and back office operations • Risk Management o A comprehensive exploration of risk management strategies and practices o Discussion on compliances and regulatory reporting o Insight into the Core Settlement Guarantee Fund • Clearing Process o Introduction to the clearing process o Roles and functions of the Clearing Corporation, clearing banks, clearing members, custodians, depositories, and depository participants o Detailed explanation of the clearing process • Settlement Process o Overview of the Settlement process in securities trading o Determination and settlement of obligations, both in funds and securities o Procedures for auction and corporate actions adjustment • Investor Grievances and Arbitration o Introduction to investor grievances and arbitration mechanisms o Online resolution of disputes in the Indian securities market o Overview of the Investor Protection Fund • Other Services Provided by Brokers o Range of services offered by brokers, including IPO applications, trading of mutual fund units, and portfolio management services o Discussion on research reports, depository services, margin trading, and internet-based trading technologies

"The best guide to private equity funds. Insight and explanations for both fund sponsors and investors. The gold standard." --Andrew Zalasin, General Partner and CFO: RRE Ventures Best Practices for Organizing and Managing a Fund With nearly $7 trillion invested in more than 20,000 funds, investor interest in the private equity industry has returned, despite the economic turmoil of recent years. Still, guidance about the organization and administration of these funds is tough to find. This 1,400+ page resource, will equip corporate lawyers, investment professionals, and tax practitioners and with best practices to manage these funds effectively. Private Equity Funds: Business Structure and Operations covers a wide range of important issues, such as: the key economic differences between various types of funds; structuring the private equity fund to meet economic expectations and investment goals; securing maximum tax benefits for the sponsor of the fund; duties of the fund's General Partner and Investment Advisor; the major regulatory issues affecting the private equity fund; and much more. Private Equity Funds: Business Structure and Operations reflects the aftermath of the financial crisis of 2007 to 2009. The authors also focus on cyber risk and the compliance obligations of investment advisers.

The fully updated classic guide to the mechanics of securities processing—a must for professional investors This third edition of After the Trade Is Made reflects the changes that have taken place in recent years as a result of new products, technological breakthroughs, and the globalization of the securities industry. Comprehensive and easy to understand, it provides brokers, operations personnel, and individual investors with definitive and up-to-the-minute explanations of each step in the trading process—from the moment a customer decides to buy or sell a security through the final requirements of record keeping. Written for both securities professionals and individual investors, whether domestic or in other countries, this new edition clearly explains the core of underwritings, new and established trading markets, transaction processing, margin, and more—while providing critical insights into the most recent wave of industry changes. David M. Weiss, a veteran securities professional, traces the entire process of buying or selling a security, from order management to transaction processing to the final posting on the firm’s books and records. He covers the specialized attributes of each function in a typical brokerage firm, as well as their relationships with commercial banks, transfer agents, clearing corporations, and depositories. After the Trade Is Made is the definitive resource for anyone eager to understand and confidently navigate the vast and often surprising world of securities.

This work is a two-volume treatise that zeroes in on crucial back-office operations issues faced by broker-dealers everyday. It includes protection, use of customer funds, net capital requirements, record-keeping, reporting and credit regulations. In addition, the work offers an overview of the historical development of broker-dealer practices and the regulatory framework that has grown up around them. It also integrates coverage of commodities regulation throughout the text, oftern comparing and contrasting the different ways securities and commodities regulatory schemes impact upon specific broker-dealer activities.