The purpose of this seminar is to give you a comprehensive overview global financial markets and of their instruments.
We start with a general overview and discussion of recent developments in the global financial markets, including important regulatory developments, such as Basel III, the Trading Book Review, MiFID II, EMIR etc.
We then take a closer look at equity markets. We present and describe different types of equity instruments, we explain how they are traded in the primary and secondary markets, and we discuss their risk and return characteristics.
After this, we turn to look at fixed-income markets. We give examples of instruments traded in these markets, and we describe their investment characteristics and risks.
Further, we explain developments in the global money and FX markets and explain the importance of these markets in international financial intermediation. During his session, we will also focus on "repos" and "securities lending" markets, which play a crucial role in the financing of securities transactions. We also look at commodities markets and discuss how volatility in these markets can affect the financial health of corporations, banks and countries.
We give a thorough introduction to derivatives markets. We explain the main characteristics of derivative instruments, and we discuss the differences between listed and OTC instruments. We also discuss the proposed regulatory changes, including move to centralized trading and clearing, and we discuss possible consequences of this regulation. We present and describe instruments such as futures, options, swaps, credit derivatives, and we explain their uses in trading and risk management.
Finally, we look at developments in the so-called shadow banking system. We explain shadow banks' role in the financial system and their modus operandi, and we discuss the risks associated with this type of banking. We also discuss recent attempts to regulate the shadow banking system.