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Clearing, Settlement and Custody
- 2nd Edition - September 27, 2013
- Author: David Loader
- Language: English
- Paperback ISBN:9 7 8 - 0 - 0 8 - 0 9 8 3 3 3 - 2
- eBook ISBN:9 7 8 - 0 - 0 8 - 0 9 8 3 4 5 - 5
Four new chapters and updates throughout help this 2e of Clearing, Settlement and Custody summarize worldwide changes in the process of concluding a financial transacti… Read more
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Request a sales quoteFour new chapters and updates throughout help this 2e of Clearing, Settlement and Custody summarize worldwide changes in the process of concluding a financial transaction. Noted consultant David Loader provides a highly detailed analysis of the central clearing counterparty concept, the drivers behind it, and its effects on operations teams. He also clearly illustrates the life cycle of a series of transactions to broaden the comparison process.
Emphasizing changes in the regulatory environment stemming from the 2008 market crash and liquidity crisis, this edition uses new case studies and end-of-chapter quizzes to explore the transaction value chain of trading, clearing, settlement, and custody. Students and professionals in the financial field will benefit from the book's description of the industry and the details of financial innovation and regulatory response, with their many implications.
- Supplements theoretical insights about risk with empirical data from current cases
- Provides the first algorithmic risk management technique that spans multiple asset classes
- End-of-chapter questions reinforce primary and secondary points
Finance and business school upper-division undergraduates and graduate students preparing for careers in the financial industry. Finance industry professionals working in financial market operations.
Preface
Chapter 1. The structure of clearing and settlement
Abstract
The clearing house
Changes in clearing
Development of the clearing structures
Objectives of clearing houses
Summary
Chapter 2. The role of the clearing house, trade repositories and central securities depositories
Abstract
The role of the CCP
The role of securities depositories
The role of trade repositories
Summary
Chapter 3. Bond settlement
Abstract
Introduction
International bonds
Domestic bonds
Fixed-rate bonds
Floating-rate notes
Zero coupon bonds
Maturity
Lead manager
Co-lead manager
Market-maker
Trade confirmation
Settlement instruction
International bonds, global bonds and convertible bonds
Government bonds and domestic bonds
Summary
Chapter 4. Equity clearing and settlement
Abstract
Introduction
Issuing and trading equities
Settlement
Corporate actions
Record date
Pay date
Ex-date
Repayment of capital
Stock benefits
Capitalization
Scrip dividends
Stock situations
Summary
Chapter 5. Clearing and settlement of derivatives
Abstract
Introduction
Exchange traded futures and options
OTC derivatives
Further reading
Summary: Useful reference websites
Chapter 6. Custody services
Abstract
Instruction from client to global custodian
Reporting requirements
Pooled nominee system (omnibus)
Corporate actions
Stock situations
Take-overs, mergers and de-mergers
Conversions
Warrant exercise
Pari passu lines of a security
Redemptions and maturity
Share suspension and liquidations
Proxy voting
Asset and cash management
Single-currency accounts
Multi-currency accounts
Interest-bearing accounts
Sweeping
Banking services
Withholding tax
Double-taxation agreements
Investment accounting
Pricing and valuation reporting
Investment analysis
Summary
Chapter 7. Securities lending
Abstract
Introduction
The characteristics of securities lending
Uses of securities lending
Securities lending precautions and controls
The role of the prime brokers/global custodians
Non-discretionary programme
Discretionary (or managed) programme
Benefits and entitlements
Lenders’ rights
Role of the custodian or intermediary
Actions required
Implications for collateral
Repurchase agreement
Summary
Chapter 8. Settlement of portfolio transactions and subscription/redemption of shares and units in investment funds
Abstract
Introduction
Investment fund administration and support
Portfolio administration and fund records
Assets of the fund
Administration workflow
Margin and collateral
Other activities affecting the portfolio administration
Capturing data
Subscription and redemption of shares and units in investment funds
Summary
Chapter 9. Risk and regulation
Abstract
Contents
Risk
Clearing and settlement risk
Regulation
Glossary
Index
- No. of pages: 240
- Language: English
- Edition: 2
- Published: September 27, 2013
- Imprint: Butterworth-Heinemann
- Paperback ISBN: 9780080983332
- eBook ISBN: 9780080983455
DL
David Loader
David Loader is the cofounder of DSC Portfolios Ltd., which specializes in global training and consultancy services for the financial industry. He has worked in the debt, equity, and derivatives markets, and his expertise in back-office dynamics is unparalleled. He has written widely on operations management, derivatives, fund administration, and operational risk.
Affiliations and expertise
Director, DSC Portfolio Ltd. and Loader Associates Ltd.Read Clearing, Settlement and Custody on ScienceDirect