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| Training > Training Courses > Capital
Markets Boot Campsm |
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Undergraduate and even
MBA degrees in finance don’t prepare you for the realities of how
markets and their underlying infrastructure work. Whether you are
new to the field or have been focused on the specifics of your job,
this course will put the financial services industry into a broader
context.
Topic 1 Introduction to the Financial
Services Industry
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How is the financial services industry
organized
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What are the functions of banking, securities,
insurance, markets
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Differences between retail and institutional,
buy side and sell side
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What is the impact of market convergence
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What is financial intermediation
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How firms raise capital, The IPO process
and Google’s Dutch auction
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How to research a firm
Topic 2 Intro to Modern Portfolio
Theory
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What is the logic in portfolio
creation
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What is the Capital Asset Price Model (CAPM)
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What is the Efficient Markets Hypothesis (EMH)
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Risk vs. reward in creating portfolios
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How has this driven the market for index funds
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What are the problems in the theory
Topic 3 General Introduction to
Markets and Trading
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What are the functions of markets
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Types of market models, quote drive, order
driven, dealer, electronic matching
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Who are the players in placing an order from
buy side to sell side to market
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What are mutual funds, hedge funds, ETF’s
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Order types, market, limit, reserve, etc. and
how they’re used
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Quoting of bids and offers – reading a quote
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Impact of decimalization
Topic 4 Order Management
Systems
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How was trading done via the phone
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What systems manage order flow for the buy and
sell side now
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How are they connected with the FIX protocol
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How do they work
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What are the differences between retail and
institutional systems
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What is Straight Through Processing (STP) and
its benefits
Topic 5 New York Stock
Exchange
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What was the history of the NYSE
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How is the floor organized in posts and booths
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What is a seat
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Who are the people on the floor, brokers,
(house and $2) and the specialists - What do they do
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What systems do they use, DOT, BBSS, Display
Book, CAP
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What is the trading process
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What happened in 2005 – the new NYSE Group
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Merger with Arca Exchange
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Implications of Reg NMS
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Creation of Hybrid exchange – the new trading
process
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International mergers
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Future of the NYSE
Topic 6
NASDAQ
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What is the history of NASDAQ
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How did abuses and regulation drive it
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How does its multi-dealer model work; What is
its trading process and rules
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What are NASDAQ level I, II and III quotes
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How does an order book work
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What systems did they use, SOES, SuperSOES,
etc.
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What was the impact of ECNs
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Acquisitions of INET and BRUT by NASDAQ
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What happened when NASDAQ became an “exchange”
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NASDAQ Market LLC and the Trade Reporting
Facility (TRF)
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What are NASDAQ’s future plans
Topic 7 Institutional
Trading
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The institutional search for liquidity
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Transaction Cost Accounting (TCA/TCR)
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Benchmarks, VWAP, implementation shortfall etc.
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Direct Market Access (DMA)
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Execution Management Systems (EMS)
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Alternative Trading Systems, e.g., Liquidnet,
Pipeline, etc.
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Algorithmic Trading
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Dark liquidity
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Post trade analytics
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Stat arb, pairs trading and other quantitative
trading methods
Topic 8 Introduction to Fixed
Income
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Fixed income instruments
--Treasuries,
corporates, money markets, munis
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Yield and return
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Duration and convexity
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Trading models, dealers and electronic
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Interest rate swaps
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Structured finance – CMO’s, CDO’s, CLN’s
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What went wrong with sub-prime mortgages
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Delphi short squeeze and ISDA settlement
Topic 9 Introduction to Foreign
Exchange and Forwards
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Why trade forward or future
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How to read FX rates
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What are FX forwards
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How are forward rates calculated
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How are FX rates related – purchasing power
parity
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How are cross rates calculated
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FX swaps
Topic 10 Introduction to Futures,
Options and SWAPS
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What are futures
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How are they traded
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What is in the futures contract
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What are the margin requirements
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What are options
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How are they traded
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How are they valued – Black Scholes model
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What are the Greeks
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How do futures and options differ
Topic 11 After the Trade
Topic 12 Introduction to Risk
Management
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What is risk
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What is the Basel II Accord
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What are market, credit, liquidity and
operational risk
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What is Value at Risk (VaR)
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What are Sharpe and Sortino ratios
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What are keys to a risk management system
Wrap up,
summary and sources of further information.
Additional modules:
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