Clearing and Settlement and Operational Risk

Catalog description

This course focuses on issues involved in processing financial transactions—from order execution to final settlement of transactions—and operational risk in general. The course examines the procedures and market conventions for processing, verifying, and confirming completed transactions; resolving conflicts; decisions involved in developing clearing operations or purchasing clearing services; the role played by clearing houses; and numerous issues associated with cross-border transactions. The course also examines the effects of transaction processing, liquidity management, organizational structure, and personnel and compliance on the nature of operational risk. Qualitative and quantitative measures of operational risk are discussed. | Prerequisite: FRE-GY 6153 and Matriculation into a master or doctoral program