Life of a Trade - Part 3


This tutorial explores the activities that take place after a trade is executed. It describes the role of clearinghouses, central counterparties (CCPs), central securities depositories (CSDs), and custodians. We outline the asset servicing solutions that custodians provide for their customers. The tutorial provides an understanding of counterparty credit risk and how it is reduced. We cover post-trade transaction cost analysis, the various types of transaction cost and the methods to measure these costs. We discuss profit and loss (P&L) and risk reporting.


On completion of this tutorial, you will be able to:
- Identify the activities that take place after a trade is executed and the key participants in these activities
- Recognise the steps involved in the trade clearing process
- Identify the different trade settlement methods and the causes and consequences of settlement fails
- Identify the various ongoing position management functions that institutions must carry out
- Recognise the purpose and benefits of post-trade transaction cost analysis
- Identify the difference between realised and unrealised P&L and how companies report both P&L and risk exposures

Content Highlight

Module 1: Life of a Trade - Clearing & Settlement
Topic 1: Overview of Trade Clearing & Settlement
Topic 2: Trade Clearing
Topic 3: Trade Settlement

Module 2: Life of a Trade - Ongoing Position & Risk Management
Topic 1: Ongoing Position Management
Topic 2: Post-Trade Transaction Cost Analysis
Topic 3: P&L & Risk Reporting

Administrative Details

Relevant Subject
Type 1 - Dealing in securities
SFC:2.00, PWMA:2.00
All Member: HKD570
Non-Member: HKD840
Staff of Corporate Member: HKD570