An introductory guide to the investment industry for IT practitioners

New entrants to the investment industry in an IT role need to be fully conversant with the major financial instruments, transactions, and processes, as well as a sound knowledge of the principles of good IT management in the industry. Written specifically from an IT perspective to meet this demand in the industry, An Introductory Guide to the Investment Industry for IT Practitioners provides recent IT graduates with a clear understanding of a wide range of financial instruments such as equities, bonds, currencies, listed derivatives, and OTC. INDICE: Contents Introduction Acknowledgements PART ONE 1 An Introduction to Financial Instruments 1.1 Introduction 2 Equities 2.1 Listed and unlisted equities 2.2 Multi-listed securities 2.3 The issuance of listed equities the primary market 2.4 The secondary market in equities 3 Debt Instruments 3.1 Typesof debt instruments 3.2 Accrued interest on bonds in the secondary market 3.3More trade terminology 3.4 How prices are formed in the secondary market 4 Cash 4.1 Cash as a means of exchange 4.2 Cash as an investment class 4.3 More trade terminology 5 Derivatives 5.1 Exchange traded derivative contracts 5.2 More trade terminology 5.3 OTC derivatives 6 Common Attributes of Financial Instruments 6.1 Summary of all trade terminology used in chapters 1 to 5 6.2 Summary of basic trade arithmetic for transactions in securities, futures and options 7 Market Participants 7.1 Introduction 7.2 Investors 7.3 Institutional fund managers 7.4 Private client stockbrokers and investment managers 7.5 Investment banks that accept and execute orders from investors 7.6 Investment exchanges7.7 Settlement agents 7.8 Other market participants 8 How Investment Firms are Regulated 8.1 Introduction 8.2 Objectives of regulation 8.3 The global perspective 8.4 The European perspective 8.5 The UK perspective the role of the financial services authority 8.6 Specific offences in the United Kingdom 8.7 Regulation and its impact on the It function 9 Straight-Through-Processing 9.1 Introduction 9.2 To what extent is STP actually achieved in practice? 10 The Roleof Accurate Static Data in the STP Process 10.1 Static data overview 10.2 Duplication of static data across systems 10.3 Instrument group static data 10.4 Instrument static data 10.5 Trading party and settlement agent static data 10.6 Standard settlement instructions (SSIs) 10.7 Static data that is internal tothe firm concerned 10.8 Normal working days and public holidays 10.9 Country information 11 Communications Between Industry Participants 11.1 SWIFT 11.2 The financial information exchange (Fix Protocol) 11.3 Other message standards 12 The Trade Agreement and Settlement Processes 12.1 The trade agreement process 12.2 Communications between the trade party and its settlement agent 13 Failed Trades Causes, Consequences and Resolution 13.1 Failed trades causes 13.2 Consequences of failed trades 13.3 The prevention and resolution of failed trades and the impact on it applications 14 An Overview of Investment Accounting 14.1 Role of the financial control department 14.2 Departmental systems 14.3 The general ledger 15 The Stock Record Using the double-entry Convention to Control Positions and Security Quantities 16 Example STP Flows of Equity Agency Trades When Execution Venue the London Stock Exchange 16.1 Introduction 16.2 Equity agency trades with institutional investor customers 16.3 Equity agency trades with private investor customers 16.4 Direct market access 17 The STP Flow of Debt Instrument Trades 17.1 Introduction 17.2 Order placement 17.3 Order execution 17.4 Trade amounts 17.5 Trade agreement 17.6 Regulatory trade reporting 17.7 Settlement 17.8 General ledger postings for the trade and the settlement 17.9 Stock record postings for the trade and the settlement 17.10 Position-related events 18 The STP Flow of Foreign Exchange and Money Market Trades 18.1Foreign exchange 18.2 Money market 19 The STP Flow of Futures and Options Transactions 19.1 Introduction 19.2 Futures and options common process steps 19.3Futures-specific process steps 19.4 Options-specific process steps 20 The STPFlow of SWAP and other OTC Derivative Trades 20.1 Introduction 20.2 Order placement 20.3 Order execution 20.4 Trade components and amounts 20.5 Trade agreement 20.6 Regulatory trade reporting 20.7 Settlement 20.8 General ledger postings 20.9 Stock record postings 20.10 Marking to market 20.11 Daily accrual of interest 21 Stock Lending, Repos and Funding 21.1 Introduction 21.2 Stock Lending and borrowing transactions 21.3 Repo transactions 21.4 Summary of the differences between the various transaction types 21.5 The Role of specialist lending intermediaries (SLIs) 21.6 Business Applications to support stock lending and repos 22 The Impact of Islamic Finance 22.1 Introduction 22.2 Delivering Islamic financial services 22.3 Sharia compliant instruments 22.4 The valuationand risk management of Islamic financing instruments 22.5 The it implicationsof providing Islamic instruments 23 The Management of Positions 23.1 Introduction 23.2 Trade dated, value dated, settled and depot positions 23.3 Interest payments and interest rate fixings 23.4 Collection of maturity proceeds 23.5 Dividend payments 23.6 Corporate actions 23.7 Listed derivatives contract expiry and delivery dates 23.8 Marking positions to market 23.9 Accrual of interest23.10 Other accruals 23.11 Reconciliation 24 The Management of Risk 24.1 Forms of market risk 24.2 Forms of credit risk 24.3 Other forms of risk 24.4 The role of the board of directors in managing risk 24.5 The role of the risk management department 24.6 An introduction to value-at-risk (VAR) PART TWO 25 The Role of the IT Department in Daily Operations 25.1 Introduction 25.2 User support and helpdesk management 25.3 Data security, data retention, data protectionand intellectual property 25.4 Change management 25.5 Business continuity planning 25.6 Use of the it infrastructure library in managing it operations 26 The Role of the IT Department in Managing Business Change 26.1 Introduction 26.2 The software development lifecycle 26.3 Project management standards 26.4 Software development models 26.5 Requirements gathering 26.6 Quality assurance testing 27 Package and Vendor Selection, Outsourcing and Offshoring 27.1 Makingthe buy or build decision 27.2 Vendor and package selection 27.3 Outsourcing and offshoring Appendix 1 Bond Market Price Calculations Straight bond calculations Simple yield to maturity Gross redemption yield FRN calculations Simple margin Discounted margin Valuation methodologies for other types of debt instrument Appendix 2 Summary of Contractual Documents Appendix 3 Further Reading Glossary of Terms Index

• ISBN: 978-0-470-99780-2
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 472
• Fecha Publicación: 12/09/2008
• Nº Volúmenes: 1
• Idioma: Inglés