An Introduction to the Financial Markets, its Institutions and Instruments

14
days to go
11-06-2020 -
16-06-2020
Training

Virtual Classroom

This practical, four day virtual classroom workshop will provide delegates with an understanding of the role of financial markets and the instruments traded.

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Course overview

The purpose of this four half-day virtual programme is to demystify the role of the financial markets and how they operate, in particular we consider:

  • What purpose do the capital markets serve
  • What role do banks play and how do they provide liquidity
  • What other institutions are involved

Peppered with practical group exercises and real-life case studies, the programme will provide delegates with a good understanding of the markets and financial instruments traded. The use of live trading screens bring the learning to life.

Learning Outcomes

By the end of this course, delegates will have a good understanding of 

  • how financial markets work
  • the key players
  • the key financial instruments and how they are used
  • the risks that companies are exposed to and how they are managed

Who should attend?

This course is suitable for anybody new to financial services looking for a broad understanding of today's financial markets or lawyers, accountants, internal audit, HR, IT and Public Relations professionals seeking to broaden their knowledge.

No prior knowledge of financial markets is required.

Course tutor
Our trainer has been a financial trainer for the past fifteen years, specialising in treasury, capital markets and derivatives, drawing from experience gained in a professional career at blue chip institutions spanning eighteen years, and has run training programmes for the world’s leading financial institutions.
DAY ONE 11/06/2020
09:00-12:30
 Financial Markets & City Institutions

 How do Non-Financial Institutions Interact with the Financial Markets: Financial Markets & Institutions           

This session provides the financial markets foundation, terminology and context to be able to understand the dynamics of the financial markets. Parties on one side of the transaction are typically large institutional investors, often acting on behalf of retail investors; on the other side of the transaction are the entities (issuers) that require finance, either by borrowing (debt markets) or by selling part of their company (equity markets).

  • What are the financial markets for?
  • Funding choices for corporates: defining “capital”
    • Debt v equity instruments
    • Risk v reward
  • Introduction to city organisations:
    • What role do commercial banks play?
    • How do investment banks differ?
    • What role do exchanges play?
  • Where does the capital come from: “buy” side institutions
  • The role of market regulation
    • Different types of equity instrument
    • Different forms of debt instrument
    • LSEG’s markets
DAY TWO 12/06/2020
09:00-12:30
Trading Securities in the Secondary Market

 Secondary Markets: Trading Securities

This session explains how securities are traded in the market, distinguishing between over-the-counter transactions and trading “on-exchange”, and the role that brokers play and how they are becoming dis-intermediated as a result of regulatory changes

  • Exchange trading v over-the-counter (OTC) trading
  • Accessing secondary markets: the role of the broker
  • Electronic trading platform trading types:
    • Order v quoted driven systems distinguished
    • Order types explained
  • Using auctions to establish a price
    • Why this is important
    • Establishing daily closing prices on LSEG
    • Issuing government bonds in the Primary Market
DAY THREE 15/06/2020
09:00-12:30
Financial Instruments (1)

Equity Capital

This session focusses on equity capital, what different forms it takes, where a company might choose to list and on which market, the IPO process and how to raise further equity capital.

The session concludes with a discussion on the management of the equity base, including the role of dividends versus share buy-backs, and the setting of a “price range” for the shares.

  • What do we mean by equity?
  • From private to public company status
    • Deciding to go public
    • Which exchange to list on?
    • Which LSEG market to choose?
  • Raising further equity
    • Regulation affecting further equity offerings
    • The concept of pre-emption rights
  • Manging the capital base
    • The dividend decision
    • Share buy-backs
    • Choosing the share price: stock splits and bonus issues
    • AIM v Standard v Premium markets
  • The issuing process
    • Bookbuilding v placement
    • The “Greenshoe option” explained
  • Placements
    • Setting the discount
    • What role does the ex-rights price place in the process
    • Should the issue be underwritten or not?
DAY FOUR: 16/06/2020
13:00-16:30
Financial Instruments (2)
From Bank Funding to Bond Issuance

This session covers debt funding alternatives, including bank and debt security issuance. The session discusses the advantages of debt funding, and also the disadvantages, and concludes on what is an appropriate level of debt.

  • Bank funding sources
    • Committed v uncommitted facilities
    • Short v long-term funding
  • Why issue a bond?
  • Busting bond market jargon
  • What form do bond issues take
    • Which investors to target: institutional or retail
      • Order Book for Retail Bonds (ORB)
    • Private placement v public issuance
    • Where to issue:
      • Domestic v foreign
      • The US Private Placement market
      • Eurobond market
  • How much debt?
    • Advantages of corporate funding through debt:
      • Tax shield explained
      • Impact on eps
    • Limits on advantages: Debt capacity explained
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