Objectives

The program is a foundation course that allows candidates to acquire the basic knowledge and skills needed to deal with the Foreign Exchange and Money Markets together with their associated derivatives.

This course will enhance professional effectiveness by explaining the markets, products and operations. It is an excellent preparation for the ACI Dealing Certificate examination.

Target Participants

• Practitioners in the dealing room with less than three years of experience

• Middle office and operational staff

• Auditors and compliance officers

• Sales, Marketing and other staff supporting a financial institution's business in Foreign    Exchange and Money Markets.

Program Structure

This course follows the curriculum of the ACI Dealing Certificate examination:

• Module 1: Basic Interest Rate Calculations

• Module 2: Cash Money Markets

• Module 3: Foreign Exchange

• Module 4: Forward-forwards, FRAs and Money Market Futures Swaps

• Module 5: Options

• Module 6: Principles of Risk

• Module 7: The Model Code

Module 1 introduces students to the principles of the time value of money. Upon completion of the module, students will be able to calculate short-term interest rates and yields, including forward-forward rates, and to use these interest rates and yields to calculate payments and evaluate alternative short-term funding and investment opportunities.

Module 2 focuses upon the functions of the money market, the differences and similarities between the major types of cash money market instruments and how they satisfy the requirements of different types of borrowers and lenders.

Module 3 is designed to equip students with a sound knowledge of foreign exchange by dealing with a wide range of topics including spot exchange rate quotations, basic spot FX dealing terminology and the role of specialist types of intermediary, to name but a few.

Module 4 exposes students to the mechanics of money market interest rate derivatives and their application to hedge interest rate risk.

Module 5 covers the fundamentals of options such as the categorization and terminology of options and how the risk on an option is measured and how they are delta hedged.

Module 6 enables students to identify and distinguish between the principal types of risk in the markets, and to explain the main policies and procedures used to mitigate these risks.

Module 7 provides students with a thorough working knowledge of The Model Code and its recommendations on best market practice and conduct for professional dealers, with particular emphasis on dispute procedures.

Objectives

The program provides knowledge for competencies in important aspects of the settlements process. In particular, it will cover basic knowledge of the underlying instruments involved in the financial markets, and the processes for efficient settlements and related basic financial calculations. Upon completion of the program, participants should be able to demonstrate appreciation of the scope and importance of the back-office role, particularly in providing services to the front office.

This course will enhance professional effectiveness by explaining the operation and settlements processes in money and treasury markets. It also serves as an excellent preparation for the ACI Settlements Certificate examination.

Target Participants

• New and recent entrants to the back-office

• Staff from trading room support areas

• Auditors and compliance officers

• Sales, Marketing and other staff supporting a financial institution's business in Foreign    Exchange and Money Markets

Program Structure

This course follows the curriculum of the ACI Settlements Certificate examination:

• Module 1: Risk Management and Controls

• Module 2: Payments and Confirmations

• Module 3: Derivatives

• Module 4: Money Markets

• Module 5: Foreign Exchange

• Module 6: Market Conventions

• Module 7: Settlements, Accounts and Documentation

Module 1 explains the importance of having strict procedures and controls in place to ensure that no unauthorized or incorrect payments are made and to protect the business from related risks.

Module 2 discusses the payment and confirmation process that follows deal capture and trade entry , and lists the problems that can arise if mistakes are made, and describes how different clearing and payment systems can impact on risk.

Module 3 applies the knowledge acquired in Modules 1 and 2 to include derivatives, and explains the additional responsibilities involved in settling these products.

Module 4 covers the characteristics of the major money market instruments and the settlements processes associated with them.

Module 5 explains the characteristics of Foreign Exchange instruments and the settlements processes associated with them.

Module 6 examines the role played by the settlements staff, and explains the importance of providing quality, customer-orientated services to the front office. Market terminologies, and their relationships with the appropriate instruments will also be discussed.

Module 7 covers different reconciliation procedures that operation areas are typically involved in, and goes on explaining how institutions seek to maximize all revenues as well as describing the impact on the P&L of reconciliation failures for the Foreign Exchange and Money Markets. This module also explains the significance of documentation in settling financial transactions.

Module 1 -- 6 comprises 4.5 hours of classes, while Module 7 comprises 8 hours of classes.

Admission Requirements

These foundation courses require no formal education pre-requisite. However, participants should have some relevant work experience or have begun working at a financial institution actively engaged in Foreign Exchange and Money Markets.

Venue

Classes are held on the beautiful CUHK campus on Saturday afternoons.

An Intensive ACI Program for Organizations/ Corporations/ Institutions in China*:

Putonghua as the medium of instruction and classes on CUHK campus

*A one-week intensive study program can be held in Hong Kong for executives in China. The HK$5,600 tuition fee does not cover land costs and the round trip traveling expenses from China to HK. Please contact our Ms. Wendy Lai, APIB Executive Program Manager or Ms. Lili Zhang, APIB China Program Manager for details.

(email: wendyl@cuhk.edu.hk ; lilizhang@cuhk.edu.hk )

In general, it will take a preparation time of 3 months for corporations to finalize the details with us. The minimum number of participants should be 50.