Course Outline
 

Course Title

  

Clearing Corporations and the Settlement Process

Course Category

    Online
Target Audience  

Back office and operations personnel in banks, securities firms, trust companies, and transfer agents.
Also appropriate for compliance staff, lawyers, accountants and asset managers who require an understanding of securities clearing and settlement.

Continuing Education

  

3 MX CE Credits

Prerequistes

   Introduction to Financial Markets, or a familiarity with securities transactions involving equities, debt instruments, options and futures, and the basic features of these instruments.
Objectives   Upon completion of this course, participants will be able to:
1.Analyze and describe the role of clearing corporations
2.Describe how clearing corporations help simplify the settlement process
3.Explore and analyze different types of settlement models
4.Analyze and explain the international settlement process
Subject by level  

Topics  

Section 1: Clearing Corporations and Depositories
-  Depository Services
-  Clearing Services
-  Mitigating Risk
-  Mitigating Risk of a Clearing Corporation
-  Case Study on Mark-to-Market
-  International Clearing Corporations and Depositories
   . Canadian Clearing Corporations and Depositories
   . U.S. Clearing Corporations and Depositories
   . Asia Clearing Corporations and Depositories
-  Canadian Clearing Corporations
- U.S. Clearing Corporations
   . Overview of U.S. Options Clearing Corporations
   .  Major Roles of an Options Clearing Corporation
- Quick Clicks

Section 2: Settlement Models
- Trade-for-Trade Settlement
-  Retail Exchange Trade for Securities
-  Trade-for-Trade Process
-  Trade-for-Trade Model
-  Continuous Net Settlement
-  Continuous Net Settlement Process
-  Benefits of the Continous Net Settlement Model
-  Delivery Versus Payment Settlement
-  Delivery Versus Payment Fails
-  Give-Ups
-  Over-The-Counter Settlement
-  Clearing Corporation Settlement vs. OTC Settlement
-  Over-The-Counter Settlement Process
-  Over-The-Counter Forward Settlement
-  Over-The-Counter Option Settlement
-  Risks of Over-The-Counter Settlement
-  International Settlement
-  Typical International Settlement Process
-  Quick Clicks

 Section 3: The Clearing Process
-  Canadian Systems
- Typical Clearing Process
- CDCC Clearing and Settlement Process
- Canadian Equity Trade Settlement Example
- Canadian Debt Clearing Trade Settlement Example
- Quick Clicks
- U.S. Clearing Systems
- U.S. Equity Trade Settlement Process
- Examples of Common Exceptions

Section 4: Options Clearing and Settlement
-  Option Exercise/Assignment Process (CAN. and U.S.)
-  Examples of Common Exceptions (CAN. and U.S.)

Section 5: Futures Clearing and Settlement
- Futures Typical Clearing and Settlement Process
- Futures Clearing and Settlement Example (CAN. and U.S.)
- Futures Delivery (CAN. and U.S.)
-  Futures Clearing and Settlement: Delivery Activity (CAN. and U.S.)
-  Examples of Common Exceptions

Conclusion

Module Assessment

 
Duration   This online course is equivalent to an in-class course with a duration of 3 hours. Online courses are self-paced, and the time necessary to complete each course will vary with each student
Time to comple the course   Six months (user account can be deactivated after this period)
Date   Available now
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