Securities Buyside Operational Practices Course & Introduction

In this article, we will give a brief outline about the Securities trading practices on the Buyside Operational Practices Course & Introduction and topics to be covered in the Trading activities of financial Securities for Buyside Operational Practices. With the financial world getting more and more automated, the best practices for Buy Side as well as the sell side business is getting interlined and complex. It is becoming increasingly important to understand the nitty-gritty and also focus on the best possible execution practice. Fraud, Scams, bankrupties and all the recent happenings have made it a requirement for the various market participants to be aware of the practices. Moreover, being an operational feature, it requires an effective management of people, process as well as technology. Integration of internal work and team along with the dependence on external service providers make it a lot more complex.
Let's begin with the basics for the Securities Buyside Operational Practices Course & Introduction:


- Types of Buy-side investors: Here we introduce various market participants who act as the buy side parties - they may be large pension funds, insurance companies, etc.

  - Mutual funds

  - Hedge funds

  - Corporate treasury

  - High-net-worth investors

- Portfolio management for Buy Side Investors: This module covers the basic functions and preparations for the Buy side market particpants and parties.

  - Investment strategies

  - Portfolio management

  - Indication of Interest

  - Selection of the marketplace

  - Order placement

  - Limit or Market Orders

- Execution of Orders for Buy Side: These are the various steps in Order capture to processing to Management & finally order Execution:

  - Execution Management Systems

  - Recording the trade

  - Allocation

  - Affirmation of a Trade

  - Prime Broker

- Settlement Mechanism for the Buy side trading activities:

  - Role of the Custodian

  - Payment and receipt of cash and/or the security

  - Financing

  - Reconciliation

- Asset Servicing : The various requirements for taking care of special activities like CA processing, other trnasactions like Repo, lending and borrowing, etc.

  - Income collection

  - Corporate action event processing

  - Collateral management

  - Securities Borrow/Loan

  - Portfolio Valuation

  - Reporting

- Regulatory Requirements for the Buy side investors:

  - Industry regulators

  - Significant regulations

  - Compliance