Trade Life Cycle and Clearing & Settlement of Equities

Syllabus

• Section 1: Overview of Equity, Bullish and Bearish, Long Position and Short Position
• • What is equity?
  • Truths or Facts on Equity
  • Features of Stocks or Shares
  • Trading concepts of Equities
  • What is trade?
  • Why Trade?
  • What do you mean by Bullish and Bearish?
  • Features of Bullish and Bearish
  • What is Long Position and Short Position?
  • How does Long and Short Position work?

• Section 2: Trade Life Cycle Participants, Methods of Executing Trades, Front Office, Middle Office
• • Trade Life Cycle Participants
  • Clearing Banks
  • Methods of Executing Trades
  • Introduction to Trade Life Cycle
  • Departments involved in the process of Trade Life Cycle
  • Front Office
  • How does Front-Office work in Trade life cycle?
  • Middle -Office

• Section 3: Trade Validation Components and Back Office Roles and Responsibilities
• • Trade Validation Component: Trade Date
  • Trade Validation Component: Value Date
  • Trade Validation Component: Trade Time
  • Trade Validation components: Quantity and Price
  • Trade Validation components: Instrument /Security and Counterparty
  • Trade Validation component: Operation
  • Back Office Roles and Responsibilities

• Section 4: Settlement Instructions and Settlement Methods
• • What is Settlement Instruction?
  • Settlement Instruction Details
  • Settlement Cycle: Rolling Settlement
  • Settlement Methods
  • Delivery versus Payment (DVP) settlement method
  • Free of Payment (FoP)
  • Netting Settlement Method

• Section 5: Securities Trade Life Cycle in Capital Market and Order Management
• • Securities Trade Life Cycle in Capital Market
  • Clearing and Settlement
  • Auction and It’s Process
  • Asset Servicing
  • Order Management and Types of Orders
  • Market Order and Limit Order
  • Stop Loss Order