Agenda

Agenda

FISD Level 1: Financial Markets

Course agenda

08:3009:30

Overview

08:30 - 09:30

  • Understand the role of the market: foundational terms and concepts

  • Introduction of ‘The Street’: illustrating the market and participants in the market

    • Define the primary functional entities that serve in the markets and 

    • Identify the roles primary functional entities perform

09:3009:45

Break

08:00 - 08:15

09:4510:45

The trading process (part 1)

09:45 - 10:45

  • Describe the typical steps in the trading process, which can be applied to most traded instruments

    • Movement of trade through execution from institutional or retail investor 

    • Processing trade for settlement

    • Understand the roles of entities employed on ‘The Street’ perform in the trading process

10:4511:00

Break

08:00 - 08:15

10:0012:00

Instruments and markets

10:00 - 12:00

  • Define the three major categories of instruments: cash, derivative, and packaged instruments

  • Explore characteristics of the instrument categories

  • Describe the features of major types of instruments

  • Investigate the markets in which each instrument trades 

08:3009:30

Functions (activities)

08:30 - 09:30

  • Understand tasks of individuals and groups on ‘The Street’

    • Buy-side investment responsibilities

    • Sell-side professionals acting as intermediaries 

    • Market support duties that underlie the markets

  • Regulation, risk, and compliance

    • Define regulation as the creation of rules designed to manage markets, protect market participants, and correct perceived problems and inequities

    • Unpack risk as: 

      • The uncertainty about future returns on financial assets or portfolios

      • The probability that a firm or department will be subjected to losses because of events in the market, improper controls, or profligacy

      • Compliance as oversight of the activities within an entity ensuring regulations are obeyed, contracts honored, and risk minimized

09:3009:45

Break

08:00 - 08:15

09:4510:45

Trading venues and the trading process (Part 2)

09:50 - 10:45

  • Examine the important methods used by trading venues engaged in trading a variety of instruments

  • Understand how each process step both consumes information and produces it 

  • Identify how networks link functions and provide the infrastructure that makes trading efficient 

09:4511:00

Break

08:00 - 08:15

11:0012:00

Technology

10:00 - 11:00

  • Understand dedicated technologies — systems, data, and networks — that support trading

  • Interpret technology and other services provided by support entities

  • Develop a framework that classifies the products and services that are offered by vendors

  • Review important vendors in the markets and the products they offer

08:3009:30

Overview of commercial data process

08:30 - 09:30

  • Explain the process used to collect and distribute market data 

  • Introduce the parallel licensing and payments required to compensate data creators and distributors 

Data usage

  • Recap of market data users and methods of usage

    • Display users: visual presentation

    • Non-display usage: processing market data

  • Understand data services 

  • Examine the scope of data usage needs 

  • Data-usage categories commonly used to group users with similar value profiles

09:3009:45

Break

08:00 - 08:15

09:4510:45

Content

09:45 - 10:45

  • Define information based on dimensions:

    • Type of data

    • Characteristics

    • Instrument groups to which it applies

    • Factors associated with distribution

  • Understand common attributes of information

10:4511:00

Break

08:00 - 08:15

10:0012:00

Ownership and administration

11:00 - 12:00

  • Fundamental concept of licensing data for use 

  • Understanding the implications of ownership versus licensing 

  • Influences on what data owners expect 

  • What data users are permitted to do with the data licensed

  • Licensing data processes:

    • Acquire data

    • Contract for use

    • Entitle users and applications to access data

    • Report usage and usage changes

    • Create, approve, and pay invoices

    • Respond to periodic audits

    • Terminate a service

08:3009:30

Management

08:30 - 09:30

  • Explore technology that captures, transforms, and normalises data 

  • Load data into databases for access by different displays and applications

  • Integrate applications designed for new environments with data and applications provided in legacy structures and proprietary vendor formats

  • Examine the process of managing data from the perspectives of data owners, vendors, and users 

09:3009:45

Break

08:00 - 08:15

09:4510:45

Pricing and Value

09:45 - 10:45

  • The business of data

    • Revenue from licensing data (for the owner and vendor) 

    • The cost of data (for the user)

    • Data units capturing the quantity of data consumed 

    • How the price attempts to relate revenue/cost to value

10:4511:00

Break

08:00 - 08:15

10:0012:00

Delivery

11:00 - 12:00

  • Understand the processes and technologies used to distribute real-time and bulk information

Issues 

  • New and emerging issues on FISD Syllabus 

    • New regulations

    • Evolving market structure issues such as “high-frequency trading” 

    • Momentum around “enterprise data management”

  • Preparing for the exam