Financial Markets Processes and Technology

Catalog description

In the fast-paced world of finance, understanding and using technology is critical. Financial institutions, at the forefront of innovation, have embraced information technology as a vital tool to navigate the complexities of the markets. Likewise, technology has become the lifeblood of investors, empowering them with real-time price updates and invaluable market insights. The era of open-outcry trading floors has given way to automated trade matching, ensuring fast execution of transactions. The days of error-prone paper-based settlement processing are also long gone, with straight-thru-processing (STP) having become the norm, resulting in streamlined and faster settlement cycles. However, even as the use of technology has superseded manual trading, the essence of markets, trading, and risk management remains mostly unchanged. Common processes and technology architectures serve as the foundation of financial markets. Hence, to understand the financial markets, students must understand purpose, structure, and mechanisms used to implement it. The course begins by examining the role and challenge of institutional investors and goes on to explore how various market participants help address their needs. Concepts related to exchanges, the function of financial market intermediaries, clearing and settlement, and risk management are covered. Additionally, considerations related to market malpractice and trade surveillance are discussed. This course will build on concepts taught in Overview of the Financial Industry and Finance Concepts and Math.