Trading 101 for Investment Managers

and 

•  The Securities Trade Life Cycle – One Day course
•  An Introduction to Derivatives – Half Day Course
•  OTC Options Valuation and Administration - Equity and FX OTC Options   AM
•  OTC Options Valuation and Administration - Interest Rate Swaps and Credit Default Swap Indices   PM
•  Best Execution for Trading and Dealing – Half day course
•  Ethics and Culture in Investment management -Half day course

This programme is comprised of six modules that cover the core competences and responsibilities of investment firms involved with securities dealing on the firm’s behalf and its client.

Without efficient post trade management any securities transaction would be pointless in the first place. The life cycle demonstrates that trading is about much more than two counterparties engaging in a transaction. Before any transaction can be executed an extensive process is implemented before, during and after the trade. The first module (full day) covers the securities trade life cycle events and critical functional processes of a trade post execution. This module addresses the question “now that the deal is done, what happens next?

The following three modules (half days) are dedicated to derivative products which now play an increasing role in the modern portfolio; whether they are used as risk management tools or to provide liquid alternatives to gain market exposures. The first module, provides an introductory overview of how investment managers use derivatives and provides an insight into the primary derivative products. This module is then followed by two sessions (each half day) on OTC derivative valuation and administration exploring how OTC derivatives are used, priced and the operational procedures of managing such products. The products covered are equity and FX options, interest rate swaps and index credit default swaps.

The final two modules cover Best Execution for trading and dealing (half day) which provides an overview of MiFID regulation which requires investment firms to take all reasonable steps to obtain the best possible result for their clients and the final module on ethics and culture (half day) which provides a framework for moral values, encompassing honesty, and promoting openness in the work environment; in short "it is not a question of laying down rules but altering behaviour”

Key Learning Objectives:

• Master the technical skills and concepts that traders and operational staff are expected to know
• Speak and understand the financial markets and derivative jargon
• Understand how trades are executed both on the official exchanges and OTC markets
• Explore the securities life cycle value chain from trade execution through to trade settlement
• Cover post trade responsibilities and regulatory obligations
• Develop an understanding of how derivatives are used by investment managers in achieving portfolio risk and return objectives
• Provide insights into the different derivative instruments such as futures, swaps and options and their applications
• Learn how to mark-to-market and value derivative products and understand the primary risks and sensitivity metrics
• Understand the exchange traded margin process and the OTC documentation requirements and trade netting processes
• Understand what is meant by Best Execution, what is required and the implications of getting it wrong
• Explore the ethical dimensions of investment management starting with an exploration of the fundamental principles which underpin ethical behaviour and to recognise if behaviour is ethical or not
• Provide insights into in the steps that are necessary to establish an appropriate culture through which both corporate and individual reputation can be enhanced and maintained

Technical and operations staff from the following activities:

• All staff involved in dealing on behalf of the firm and its clients
• Investment professionals, investment administration and operations
• Client services and sales and marketing
• Risk management, legal, audit and compliance
• Finance and accounting
• IT and software developers

1. The Securities Trade Life Cycle (full day)

• This course breaks down the life cycle into three functional activity groups from Pre-trade to At-trade and Post-trade functionalities. The course will demonstrate how the entire process works and demystify the complexities of the chain of events that occur.

2. An Introduction to Derivatives (half day)

• This course aims to demystify the terminology used in the marketplace and promote an awareness of the concepts behind derivatives. We cover the different types of derivatives instruments and how investment managers use them to achieve the portfolio objectives.

3. OTC Options Valuation and Administration: Session 1 – Equity and FX Options (half day)

• This session covers the practical mechanics of the options markets; focusing on characteristics and execution of options from the perspective of the different asset classes.

4. OTC Options Valuation and Administration: Session 2 – Interest Rate Swaps and Credit Default Swap Indices (half day)

• This session looks at the cash flows and mechanics of swap products whilst also covering the valuation/mark-to-market calculations of the products and the practical issues surrounding the documentation, collateral and netting arrangements.

5. Best Execution for Trading and Dealing (half day)

• This course focuses on understanding what Best Execution means, the MiFID II enhancements and how the FCA has applies them to investment firms

6. Ethics and Culture in Investment Management (half day)

• This course reviews and defines the meaning of ethics and its link to the firms culture by establishing if behaviour is ethical or not by challenging participants to answer the question “How do I know I behaving in an ethical manner?”.

For full details of each module contents please refer to the Investment Association relevant programme overviews in the Training Library

Russell Hammerson

Russell Hammerson is an experienced banker working with structured products and exotic options over 15 years.
Russell started his career in the fixed income trading division at Chase Manhattan in 1986. After having graduated from the Chase nine-month advanced financial risk analysis programme, he was seconded to the Chase insurance banking division for a year. Taking his insurance expertise with him, he later moved to Citibank to work in the financial engineering division, structuring fixed income and equity products for institutional investors.
From Citibank, Russell moved to Bear Stearns to help set up the newly established equity derivatives group as associate director responsible for marketing and structuring of European products prior to becoming head of structured products at Commerzbank.
Before moving into the technical training arena, Russell ran the structured product group at Banque Nationale de Paris followed by Bankgesellschaft Berlin, London, in a similar role as head of engineered products and international new issues and director of the London Management Committee.
Russell has been training all areas of capital markets since 2001. At BG Consulting (now trading as ZISHI Cornerstone), he specialises in structured products, equity and credit derivatives and exotic options.

Julia Kirkland

Julia is the Senior Partner of FSTP. Julia has spent the last seventeen years consulting with clients in financial services helping them to respond to regulatory change.
Working with Boards and more recently leading provision of a programme for NEDs joining Asset Management Boards, she has assisted groups to resolve real difficulties between their preferred style of operation and what the regulator requires. She always seeks to reconcile what regulation requires with best practice and the particular culture and strategy of her clients. An excellent facilitator, with an intelligent and highly effective communication style.
Her career began at GT Asset Management in 1980’s and held senior roles at Invesco Perpetual where she helped lead the implementation of complex changes to the client and fund proposition.
Julia is a Chartered Member of the Securities and Investment Institute, and holds a Diploma in Management Studies. She is also a member of the Secondary and Further Education Qualifications Assessment Board of the CISI. Julia writes articles and speaks on the topic of Governance and people development.

IA Member £1,950 +VAT
Non-Member £2,450 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.