What Is The Difference Between Trade Confirmation And Affirmation?

What is Trade Confirmation?

Trade confirmation (also known as swap confirmation) is a receipt from your broker confirming the price at which you have placed a trade. They precisely reflect the trades done on an account and contain crucial trade facts such as the trade’s time, place, and commercial conditions.
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They may be in paper or electronic form and include the settlement date. Next, the confirmation is sent to the custodian once both parties have agreed to the trade’s terms and conditions. Finally, a trade confirmation slip is issued by the broker when the shares can be bought or sold at a price specified by the investor. 

Why do you need a Trade Confirmation?

Trade confirmations verify a trade’s exact price. They assist with tax filings and settle any discrepancies. They can also use confirmations to check against monthly statements to ensure they correctly reflect the trades made on an account.

What is Trade Affirmation?

When one party claims the contents of an SB swap contract to its counterparty, and the counterparty confirms the information if they are correct, this is known as trade affirmation. The trade affirmation process involves completing a trade, after which the counterparties check and validate the specifics before submitting it for settlement.

If alleged derivatives transaction information is received, the parties may take advantage of trade affirmation and matching, individually or together, with the parties receiving the alleged derivatives transaction information, performing a local match to their satisfaction before affirming to their counterparty.

Trade affirmation and confirmation form an essential part of the trade life cycle. 

What is a trade life cycle?

The trade life cycle encompasses all the steps involved in a deal, from order placement to trade execution and settlement. It consists of a series of logically organised stages of the trade. 

Trade confirmation and affirmation play a crucial role in moving an agreement from a contested state to a ‘confirmed’ state in the trade life cycle and asset allocation, where continuous expansion and contraction of economic activity occur. They are bilateral processes, meaning both parties must approve the transaction. Although they may appear to mean the same thing, they are not.

Let’s consider some crucial differences between trade confirmation and trade affirmation.

Trade affirmation, also known as transaction capture, is the act of asserting a trade, in which the parties agree on the trade economics and exchange a general affirmation. In comparison to trade confirmation, it is a less stable stage.  As the phrase implies, affirmation refers to the act of validating or affirming something.

Trade affirmation is when two parties exchange securities, they must first agree to all of the conditions and agreements, which specify that time should now be spent officially confirming the trade by both counterparties. 

On the other hand, trade confirmation can be one or more documents or proofs that reveal all of the details involved in the transaction’s completion.

Let’s consider an example. Imagine the counterparties (let’s say two banks) electronically submitting their respective transaction information into a trade matching platform throughout the trade matching process. So, when the information matches and both parties are satisfied with each other, i.e. checking and reacting via affirmation, this procedure falls under affirmation. After that, part of the investment bank’s service to its clients is the prompt and accurate communication of trade confirmation. They may appear to be interchangeable, yet they are not.

Conclusion

Even though they may appear synonymous, there is a significant distinction between trade affirmation and confirmation. First, the clearinghouse performs all necessary computations after these processes. Next, the clearinghouse confirms what is needed from the purchase and sell sides of the trade. The final stage is the settlement process, which involves the transfer of funds and security.

Everything You Need to Know About Trade Validation and Enrichment in Trade Life Cycle

Everything You Need to Know About Trade Validation and Enrichment in The Trade Life Cycle

The development of technology results in the rapid development of the trading landscape.

There are no messengers anymore. Instead, we have letters. In place of the stock ticker, there is a television. 

Innovative technology accelerated the trade lifecycle process.

The workflow of a trade order from the time it is created is known as the trade life cycle. Front office, middle office, and back office activities make up the Trade Life cycle.

As a result, every element, from data storage and communication to online banking, has affected how the current market works.

A specific trade is executed in a market from the other side of the world in the wink of an eye.

Introduction to Trade Life Cycle

The Trade life cycle can be seen from different angles. The Trade Life Cycle can be seen as the interaction between the buyer and the seller. However, it can be divided into trading and operational activity.

Front Office: Frequently referred to as the trading floor, the front office primarily conducts the tasks of trade capture and trade execution.

Middle Office: The Middle Office in the Trade Life Cycle is crucial to the management of exceptions.

Back Office: The “backbone” of the entire commerce life cycle is, in a sense, the back office.

Trade Enrichment in Trade Life Cycle

Trade Enrichment refers to an enhancement of something valuable to improve efficiency. It adds specific trade data to the basic trade detail to allow Downstream processing.

Trade figuration

Calculating trade cash values is known as trade figuration. It entails figuring out the net value of a securities transaction.

Selection of relevant custodian details

STOs engage local agents to exchange securities and cash on their behalf to decrease the risk of being without securities and cash and to interchange securities and cash.

Issuing Settlement instructions (For example, by SWIFT or fax)

When a trade is settled, both parties involved in the transaction receive their respective payments. It is, therefore, a two-way process.

Reporting of trade

It entails informing stock market regulators of trades. Reporting of trade is required. It is carried out to improve market transparency.

Trade Validation in Trade Life Cycle

Soon after the completion of execution and enhancing trade, the next step is establishing certain measures. This is known as Trade Validation. In this Trade validation and enrichment in Capital Market, the process inspects if the received trade information in the back-office systems coincides with the front-office records.

It takes a lot of preparation and follow-up for a trade to actually happen.

To gain a greater grasp of trading, it is necessary to comprehend the full transaction lifecycle or the series of events and procedures that take place when a trade is made.

Know More about Special Trades

Special trades – includes validation of certain trades such as

  • That is deemed to be large
  • Trades in a specific market
  • Trades with a specific counterparty
  • Trades with prior value dates
  • Trades with prices outside a specified range
  • Trade setting on a Free of Payment (FOP) basis

Exception handling

Few trades may require editions or have to be cancelled. In such instances, they are sent back to the front office. If any trade is not resolved within the stipulated period, it may be escalated to a more skilled member of the middle office.

Conclusion

Once you have a firm grasp on the life cycle of a trade, you may use it to learn more about investment banking’s global markets section. You will gain knowledge of the various facets of the trade life cycle and the jobs accessible to those seeking to make a career in this field.

 

Ways Trade Execution Can Improve Your Capital Market Business!

What exactly is Trade?
Trade is the exchange of items between two or more parties backed up by purchasing power. In a layman’s language, buying and selling of products and services are known as Trade.

What are Capital Markets?
Capital market is the kind of financial market where securities such as long-term debt, equities, etc. are traded frequently. This is a volatile market as the value of these securities and the interests and dividend rates involved with them keep fluctuating.

The capital market is further broken down into two categories: Primary Market & Secondary Market. The primary market is the capital market where new securities are bought and sold and the Secondary market is the one where the already issued securities are exchanged by various investors and companies.

Trade Execution and the Capital Market 
Whenever there is an exchange, trade comes into the picture, even in case of financial instruments. Financial instruments are heavily traded all around the globe every second. And with such exchange of securities, the trade aspect has to be clearly defined and should not be eclipsed by the volume of transactions. The capital market runs on the game of exchange. Such exchanges are facilitated by smooth trade execution, Asset Management Allocation, and a well-versed post-graduate diploma in Banking and Finance.The trade life cycle has to be optimized and every step has to deliver some value to make the process smooth and glitch-free. Mentioned below are the stages of the Trade Life cycle and how their execution leads to improvement in the capital market business.

  • Order Initiation

The order is initiated when the stocks of various companies are made to float in the market. Such a process can be called as “Security Existence Awareness”. Then an individual buyer or a company shows its intention to buy particular security with the help of their registered stock brokers. The brokers perform the buying and selling function for their respective clients in exchange for a small fee. After the order is placed, the brokers process the transaction, delivers the security or collect the money and transfer the benefit to his client.

  • Order Processing and Managing Potential Risks

A capital market is a place with fluctuating value. And with fluctuation, risks dawn in. To process the order, the broker must have a clear picture of the funds residing in his client’s account and also of the securities the client is interested in. If both the scenarios fall in line, the broker generates the receipt and processes the orders. If any default on the part of the client, the broker will have to keep a window up for such loopholes and manage the associated risks carefully. Also, the broker has to recover the additional charges from their clients efficiently.

  • Order Matching and Trade conversion

On the verification of what is required by the client, the particular securities are sent to exchange for verification of various details and allotment of the respective securities. The brokers charge a brokerage for executing the security trade function effectively and efficiently. The receipt of the order confirmation is then sent to the client and the details of the client are recorded by the broker for the allotment of a unique customer ID.

An agency that is commonly known as the custodian then intervenes in the settlement of any security deal. The custodian receives the details of the order from the exchange. This includes details like the type, price of the security, etc. This is done to make the custodian aware of an upcoming securities exchange. It is the job of a custodian to validate the details of the transaction and then show a green flag to the broker. This complicated process can be made much easier by proper capital market training.

  • Trade Settlement and Clearance

The trade is then settled after 2 days of a valid transaction. This is commonly known as a T+2 settlement. The clearance provider then informs the restrictions of the particular transactions which is followed by the settlement of balances. The securities are then allocated to the client in his DMAT account and the share value is credited to the companies raising capital. After completion of such a transaction, it is recorded by the Exchange offices.

A Beginner’s Guide to Asset Management Allocation in Trade Life Cycle!

What is trade?
Trade is an exchange of items within or outside the country. Trade has two elements: Buying and Selling. The catalyst which makes this buying-selling process hassle-free is money. In earlier times, people used to exchange the goods they have for the commodities which were owned by other people but today, you cannot separate money from trade.

Trade, as we know, is a process. And as every financial process involves a lot of assets, trade also makes use of the same. People who are trained with a proper PG Diploma in Banking and Finance can do this asset allocation with a lot of ease.

Stages in the Trade Life Cycle
In a globalized economy, trade is a continuous process. Exchanges take place now and then. Mentioned below are the prominent steps involved in the trade life cycle. With capital market training, you can understand each step involved with much more ease.

  • Sales

The process of Sales starts when there is a demand for a good or service. It starts with the seller and ends with the buyer. By this process, a client is acquired and then is provided by multiple buying options
E.G.: Various investment avenues that are available with an Investment banker. Such investment tools are curated according to the needs of the investor and then presented to him in the form of Hedge funds or mutual funds to the client.

  • Trade Initiation and Execution

Once the investor or the buyer selects the product or service he likes and places the order with the seller, the process of trade begins. Trade begins when there is a monetary exchange and even if the buyer asks the seller to give various quotes for his product (As in the case of huge deals). As soon as the order is placed by the buyer and it gets accepted by the seller, the trade is said to be executed.

  • Trade Capture

The real challenge starts once the order has been placed. It percolates down to several channels that use various assets to get the job down. Assets such as a bank, commodity, etc. have to be allocation right and quick to deliver the trade experience smoothly.

This process can be made efficient by proper Asset Management courses. Trades are then recorded in the whole operating system and are also brought into the Risk management system which will help in reducing risks associated with a particular deal and maximize value.

  • Trade Validation and Enrichment

The trade is then validated by several teams and various sets of parameters. Various stable and dynamic parameters are considered and are validated before the actual trade takes place. Assets such as currency have to be allocated and depreciation sand appreciation parameters have to be brought into the picture.

  • Trade Confirmation

This step is one of the most important steps of the Trade Life cycle. Various confirmations are made by both the parties in terms of delivery and payment of the products or services involved in a trade settlement. All of this is done at least a day before the settlement takes place. This provides a window to both the parties to make necessary changes to the trade deal.

  • Trade Settlement

This is the step where the commodity or the service gets delivered to the buyer. The buyer gets the required in exchange for cash. Also, buyers get security in exchange for cash. If the case is of derivatives, a particular currency is also delivered in return for some other currency.

  • Reconciliation

This step involves the bookkeeping and recording of transactions to meet the necessary accounting details of both the buyer and the seller. This also involves vouching, matching ledger accounts, etc. With effective training in the Certificate course in Banking and Finance and various asset management courses, this process can be made much easier and convenient to implement.

Bank Innovation Through Collaboration, Its Better Together..!!

Bank Innovation Through Collaboration, Its Better Together..!!

Bankers have used a number of strategies to gain competitive advantage the chief weapons being localization and scale of operations. Do you know that in the US of the 7,000 odd banks only 1.5 percent of the players command control over 75 percent of the deposits and 81 percent of the loans? GDPR and PSD2 are all set to transform the banking industry by empowering the customer with multi-dimensional power over their personal data in 2018.

The future of banks and their success is to reply to the regulatory and technological disruptions through a strategy aimed at value-added relationships with fintech enterprises, e-commerce platforms, and companies like Amazon, Google, Facebook and more. This will ensure they still get multivariate data for their systems to carry out their functions while they offer their clientele a more holistic improved experience since the regulations will check the growth of banks. The capital market course shows that the well-run and capitalized new-age midsize and small banks are among the survivors in the race for survival and staying competitive.

Will the mere strategies of being local and scale of operation in cashing in on local markets be sufficient for banks to survive? Let’s explore why it’s different now.

The Commodity trap:

The same basic model of banking has survived for centuries now. Banking had become an essential service that had no real threat of substitution, till it was at disrupt just 5 to 10 years ago when tablets, smartphones, broadband connectivity and other concepts of AI, data analytics and ML slowly and surreptitiously crept into our lives. The banking disruption in banking is only just beginning and it appears to have fallen into a commodity trap.

The essential features of a commodity trap as defined in the book by Beating the Commodity Trap authored by Richard D’Aveni and applicable to the capital market course state that the concept applies where,

  • Business insights and process knowledge are distributed widely as in a bank with many branches.
  • The moving of products from the manufacturer to producers occurs with very low costs as in the banking services and charging of high fees for sub-par customer service.
  • The lifecycle of product s is short before a newer version replaces it.

The Collaborative Advantage:

The banking industry is burdened by regulations and compliance measures that focus on mitigating and avoiding risks. Established enterprises prefer to protect their territories of customers rather than collaborate and better the customer’s journey. And the time has come for the risk-averse banking sector to open its doors to collaborations with vendors, customers, and even other banks to stay afloat and make a bid to increase their customer bases. Managing the past results and protecting their revenues will lead nowhere if the focus on future outcomes is overlooked.

The regulators have a point in reinforcing compliance and this is especially good in the areas of credit underwriting and capital management. But, risks will have to be taken in small doses of improving customer experiences, innovating with new products customized on needs of clients, and bringing in new on par services like the leading ASIPs and PSIPs to counter the falling into the commodity trap.

It’s Better Together

Innovation in the banking sector should move towards more collaboration, beyond a single business line, and should include a more brainstorming capital market course for new ideas inside the bank. Events from the likes of Finovate, Bank Innovation, Innotribe, and NextBank prove the smaller firms globally have no legacy systems or models to protect and are hence more innovatively involved in newer products and services. The National Science Foundation’s Business Research and Development Survey show that large firms (with more than 25,000 employees) spent less than 40 percent in R and D which is down by 30 percent for the period 2001-2008.

The Bank Innovators Council is akin to the “FinTech” incubators and even when they do not have the same forums its good to go with an old African proverb that states when you want to go quickly you walk alone and fast. But if you need to go far buttressing the point that innovation badly needs the banks to introduce idea connectors, network enablers and such measures on a war footing.

In conclusion:

While innovation may be frightful to risk-averse banks it has the potential to lead to effective collaborations, generate revenues and better customer service and interactions.  If you would like to learn all about the remedial measures being taken up by banks it is time to do a capital market course at Imarticus Learning where the future of emerging technologies is well-taught and packaged with career-ready skills.

Passenger Vehicles Sales Drop For 9 Months In A Row

 
Tata Motors was supposed to launch its Altroz premium hatchback brand in mid-August. But a flurry of critical happenings forced it to defer, considering that every car launch in India is a 4000-crore gamble. The decision might seem like Tata Motors’s prerogative, but what it also highlights is a hint at the current state of the passenger vehicle market of India. In more critical words, it is a tiny example of the causes and effects of the great Indian passenger vehicle slump of 2019.
The question then is: what is happening with the auto industry and why?
To answer that question in the simplest way possible, there arises a need to cover all the aspects of the event. Let’s have a quick look.
What is Happening with the Auto Industry?
Historical and current data by the Society of Indian Automobile Manufacturers (SIAM) show that in July 2019 sale of passenger vehicles across categories (two-wheelers and four-wheelers) dived by about 19% compared to the same period in 2018. This is a very steep fall.
The worst affected is the passenger vehicle segment which registered an annual drop of 31% compared to 2018 even as the industry saw government intervention through restrictions involving the Bharat state emission standards. Earlier in 2019, the BJP-led central government had mandated that only BS-VI-compliant vehicles will be allowed for sale in India from April 2020, hinting at a possible goodbye to the older BS-IV versions. This drop is the steepest since December 2000.
While experts have attributed the cause to multiple factors, what this slump has further resulted in is what is controversially described as ‘fear-mongering’ on the part of the industry players. Job cuts in lower-tier cities, deep discounts, and new model launches failing to attract the potential buyer, and sluggish stock market forms the circular loop of both causes and effects, which can only be simplified by taking a look at the possible cause of this slump. Or causes.
What Caused this Slump?
While the Goods and Services Tax (GST) introduced in 2017 helped improve overall passenger ownership numbers, it began to experience a sharp decline sometime in early 2018. What exactly caused it?
Increase in fuel prices (in major metropolitan cities like Mumbai), higher interest rates, and a major hike in vehicle insurance costs were the major factors, as reported by The Hindu. The flood situation in states like Kerala also had an adverse impact in the third quarter of the 2018-2019 fiscal.
It further reported the effects of the IF&LS crisis as it tied the slump in sales in rural areas to the decline in trust with non-banking finance companies (NBFCs). In rural India, NBFCs are trusted more than actual banks. This was further accentuated by the high inventory pile-up among dealers and manufacturers.
In December 2018, the industry set off the alarm, putting its final rays of hope on the Lok Sabha elections in early 2019. The old government regained its power and nothing changed.
What perhaps is the often-neglected cause but one which has the highest weight is the combination of the BS emission standards as well as the unanimous heralding of electric vehicles. Any wise person buying a car today wants to drive it for at least a few years. And what with fuel prices refusing to go down and government standing outside everyone’s door with the emissions placard, she wants to ensure that her future private commute is ensured as well as insured with low maintenance costs.
The new BS emissions mandate comes into effect on April 2020. So, naturally, the dilemma of buying a car before or after the due date has put off a lot of discerning buyers. More of them are holding off their purchases due to one reason or the other.
Lastly, what is interesting is also the rise in growth of pre-owned cars sales. Compared to the figures in 2018, the sales for used cars grew by 12% as reported by The New Indian Express on June 2019. If one looks at the features of cars launched in the last year and compares it with those that were launched five years ago, nothing much has changed.
With the young population making wise choices when it comes to finances, thanks to increased awareness of financial literacy in the nation, they no longer need a car, let alone a new car. Taxi-cab aggregators, despite their occasional newsworthy actions, are still going strong, thanks to the young India who does not yet believe in owning a car when all it does is take him from point A to point B. Which is what he wants.
What’s Going to Happen?
In August 2019, economist and former vice-chairman of the NITI Aayog thinktank Arvind Panagariya wrote a critical analysis of the auto industry slump. He criticized the industry for waiting on the government to bail them out as he also observed the decline as not cataclysmic.
What he suggested were the industry players to keep patience and use their former profits to club the gap in this ‘phase’ even as the nation moves on to a financial market that looks favorable to consumerism.
Although the slump has triggered losses in the form of large layoffs (about 10 lakh jobs at risk) by almost all companies, there is still hope that the performance will improve in the coming months. The industry has made a demand for a reduction in GST to 18% from the current rate of 28%, but there does not seem to be a clear resolution on that front even as the government ponders over it.
This could well be a phase for the industry, as noted by experts and some auto manufacturers alike, but when that ‘end’ will be cannot be guessed, especially during the high level of uncertainty in the Indian financial and consumers market.
Influential events like the recent revocation of Article 370 will take time to subdue, and only then can one even expect to see a change, as one analyst commented on the promise of anonymity. So, the best course of action is to just wait and watch.

What Is The Function Of Retail Assets In Capital Markets?

By retail assets, one means the products that are sold. In terms of the capital market, these could be the products of the equity and debt capital markets. Hence one needs to understand the very basics of the capital market to understand its retail assets. Let us start.

Understanding the terminology:

Doing capital market courses can be very useful to get the big picture of the capital markets. The term capital market is the place where securities in the form of various instruments like a bond, stocks, etc can be exchanged by the capital needy borrower and the capital-rich investors.

They comprise the foreign exchange-FOREX market, the bond markets, and the stock markets. The major markets are London, New York, Hong Kong, and Singapore, NSE, NASDAQ, BSE, etc. which are normally found in nearly all financial centers.

The Capital Market courses classify the capital market as secondary or primary markets. The bonds and the stocks are the most popularly known instruments. The financial analyst in the capital markets is the bridge and seeks to make these transactions efficient in the capital market where the borrowers needing capital and the lenders with surplus capital can both exchange securities transparently.

Capital markets deal with capital suppliers including private investors, institutions offering instruments related to their savings and investments in life insurance companies, pension funds, non-financial companies, and charitable institutions and foundations which have surplus cash to invest.

The capital-needy users of the funds are motor-vehicle and home purchasers, governments using funds for building infrastructure projects, non-financial companies, and those seeking capital investment or operating expenses in firms/organizations. Thus capital markets sell both debt and equity securities. The capital markets operate on electronic platforms through online transactions.

Both capital markets and investment banking cover equity and the debt capital market. Capital markets use investor investments and savings serving as a channel between firms needing capital and suppliers who have capital. The capital lending entities include institutional and retail investors while those needing the capital are governments, businesses, and laymen.

Equities are actual ownership of the company stock certificates and the returns on it depend on whether the company makes a loss or profit. Debt securities such as bonds, debentures, etc are IOU’s that bear a fair interest rate higher than that offered by banks. When companies go public they sell IPOs to large institutions like banks, institutional investors like hedge funds, mutual funds, etc.

If the stock is sold to the investor it is called a primary market and the secondary market sells those shares and stocks that come up for trading or reselling existing security. The secondary market is overseen by the SEC. Ex: NASDAQ. This provides investors with a regulated ecosystem and reason to invest in the capital markets.

Different types of Retail Banks:

Retail banks can be of three types. They are:  

  • Commercial Banks
  • Investment Funds
  • Credit Unions

All these banks offer services related to retail banking and provide almost similar services. Their products include: 

  • Savings accounts
  • Checking accounts
  • Mortgages
  • Credit cards
  • Debit cards
  • Personal loans.

Why do a course?
Here are the top reasons for doing capital market courses.

1. Staying updated with technology changes:
Today’s business world needs a good understanding of the working of businesses and compliance with political and regulatory issues. It goes beyond the reading and understanding balance sheets, compliance issues or regulatory measures and reporting.

Data analytics, capital market courses, Deep-Learning systems, and predictive-forecasting are helping make investment decisions and strategies evolve with knowing the exact outcome of the impact of such decisions. All available data and allied technologies are now being used and the financial data is no longer disparate from business data.

2. Skill-set development:
The focus of Capital Market Courses at present on the skill development of personnel for banking and capital markets. The obvious outcomes they will look for are to include customer-facing processes, a deep understanding of business requirements, proficiency in predictive forecasting tools, change, and soft-skills management and understanding and creating financial models for the capital market decisions.

3. The good payouts:
FAs in the capital market according to Indeed make an average of USD 65-110k. They also receive great bonuses, perks, and incentives that total to almost being equal to their earnings. In essence, payouts and lucre are huge incentives in career-making decisions.

Conclusion:
Doing a course from a reputed Academy like Imarticus has several advantages besides certification which works as a true measure of your practical skills. On a concluding note, remember that at Imarticus Learning you can do capital market courses tailor-made for capital markets which cover the comprehensive syllabus with plenty of hands-on experience that is sure to give your career a huge head-start!

For more details in brief and for further career counseling, you can also search for – Imarticus Learning and can drop your query by filling up a simple form on the site or can contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

Is The Rupee Strengthening? Where Will It Head In The Next Few Months?

With the Indian rupee listed at 71.65 versus the US dollar in November 2018, the rupee appeared to stabilize and strengthen up for 2019. Global events over the last decade have affected the Indian financial markets in general with commodities, bonds, equity and the currency all feeling the heat. A crude oil price slip four years ago caused our current account deficit reduction while strengthening the growth of the equities market and bringing in the dollars to impact seeing the rupee firming up. The then newly elected government was stable and zealous and the little instability on the domestic front saw the rupee strengthening.
The factors for the decline:
In ushering in 2019 the promises of global events dominating the financial scene was a given. The outcomes this time around saw a 9% decline in the rupee value which ended with a 15% value decrease as in October 2018. The main factors contributing to this were the prices rising for crude oil to 86 USD for Brent and the Federal rates rising with the US dollar’s strengthening.
WTI crude oil prices plummeted in October 2018 and November saw prices per barrel decline from the once 77 USD to 57 USD. Domestically too we were on the urge of a historic mid-term election. The turmoil in Turkey and the tumbling of currencies caused also in some measure a very conservative currency market globally and especially so in the emerging Indian markets. This was the stack against the Indian rupee and naturally, the rupee in 2019 would see a downward trend in response.
A sudden and strong crude oil prices surge with the FPIs-foreign portfolio investors withdrawing from the debt segments has kept the pressure on the value of the Indian rupee and the equity markets. RBI on its part did intervene with the REER- Real Effective Exchange Rate as its basic focus.
The interventions were sanguine and half-hearted and designed to keep the weakening steady. This measure as understood by economists was what could be done. To effectively fight such factors in a currency war low inflation rates and higher efficiency are prime factors. No currency war is ever won by quarreling!
The US scenario with its higher Fed rates will mean the dollars will flow back to the US and in 2019 the rupee will continue to steadily weaken as US dollars become a globally scarce commodity. The policy of “USA first”, the meddling with the financial policy by US President  Donald Trump and the protectionist measures implemented in the USA are all sources of trouble and fear for the trade markets in India.
The uncertainty over a clean Brexit deal hurts India too as money moves away and foreign investors prefer to invest in the safe bet of the rising dollar value. Concurrently a listless slipping market can see a further decline in the rupee values which may even test the 68-69 limits.
The 2019 predictions:
So, how much will the rupee strengthen against the US dollar and what should we do now? A 10-year study on the rupee shows the recovery of the rupee could proceed well into 2019. A Fibonacci retracement study considering five parameter legs of the rupee movement from high to low values discloses that the rupee always returned to values between 50 to 61.8% of the rupee support values when the rupee fell from the 2018 January rate of 63.59 to the October 2018 rate of 74.48.
The mid-term polls have fortunately taken us past a phase of uncertainty with the BJP romping home with a majority and offering an outsider chance of helping stabilize the market with economic growth and unfinished financial measures like demonetization, digitalization and such, finally seeing the light of day. A stable government is a welcome feature and the RBI interventions to stem the rise in inflation could shore up the weakening rupee’s downward spiral and bias.
Conclusions:
Predictions remain so till they turn into results and facts. But given the above factors, it would not be unreasonable to see 2019 ending with the US dollar value at 75 Indian rupees.
If you would like to study such trends and make a profession of data analytics and studying financial trends, then head to the Imarticus Learning Academy for advice on careers in emerging fields and technical updated skills.
Imarticus is where financial experts are born and honed for success.  Why wait? For enrolling yourself and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

How Can You Get Into Capital Market After Having Of Banking Experience?

Your decision to take up a banking course after graduation will stand you in good stead after being in retail banking. Corporate banking is a great career choice. Corporate Banking which is an area many career aspirants would love to join surprisingly has very few good certification courses.
Recently FLIP introduced a specific Corporate Banking certification course which is apparently popular among the B-school aspirants. This course covers non-funded and funded products while taking you through all corporate banking important work areas. It is an apt course for SME and corporate banking career aspirants and is also used for employee training by leading NBFCs and banks.
Employment Outlook:
The pay packages, bonuses, and career-progression when you make a career in any field of banking like Corporate Banking are not just lucrative and prestigious. They are performance and certification related enabling continuous learning and very satisfying job roles.
According to Glassdoor salaries, the Manager in Corporate Banking at YES bank draws a salary in the range of 1,205 to 1,716K per annum in India. In the US the corporate banker aka Personal banker at Bank of America draws an average of USD 43,330 per annum. These salaries are post based and depend on the bank you join.
Most say a banking course after graduation offers some great pluses like:

  • Job security and working in MNC environments.
  • Super salary packages topped with great benefits
  • Jobs for retired bankers and career-changers within the banking areas are never a problem.
  • Wide variety of jobs experiences and roles.
  • Banking industry jobs are prestigious and have a thriving ecosystem.
  • To update knowledge of latest banking trends and practices training can help. They also help with certifications and interview skills.
  • Excellent career progression and scope for banking jobs makes this career choice great.
  • Community service goals and continued learning opportunities are satisfying and enriching.
  • The working hours are good and the environment conducive to career-progression.
  • Certifications gained will add to your resume and knowledge endorsing your skill levels.

Skills required:
To become career-prepared you need to undertake a course in corporate banking. An academic bachelor’s degree would be essential and experience in banking practices definitely help. Fluency in English communication and excellent skills in presentations using Microsoft Excel Macros and financial software is critical to presenting a report of insights that help decision-making based on predictive analysis foresight and data analytical skills. Yes, conceptual knowledge and expertise in the domain enable you to stand out in this prestigious job.
Why banking jobs are so popular:
In comparison to investment banking, corporate banking dealing with corporate has relatively fixed working hours, fewer deals, large-deal amounts and offers a broader job-scope. New-age banks have evolved which are needs and market-based. Traditionally the roles were related to customer-service and teller areas in banks. This means multi-tasking banking professionals are in high demand. Today rather than specific roles in corporate banking, an aspirant can also take up any of the trending opportunities in new-age banking like
The banking course after graduation syllabus covers topics like

  • Understanding products, solutions, corporate client requirements and the matching of these parameters.
  • RAROC adjustments of risk, wallet sizes, Matrix for product penetration, and relationship management.
  • Credit note memos, analysis, and presentations to the management.
  • Client credit-profile analysis and assessment through quantitative and qualitative techniques.
  • Corporate banking products, Treasury products, and both non-funded and funded products.

In retail banking aka consumer banking, the focus is on the individual consumers or mass-market large commercial banks offering services through their local offices. Some examples of such banks are Citibank, JPMorgan, Goldman Sachs, Wells Fargo and Bank of America.
Increasingly the trend is to go in for new-age banking with a gamut of services and products that are consumer-need and profitability based one-stop banking solutions providers with services like retirement planning, private banking, brokerage accounts, corporate banking, wealth management, and even third-party services being included. Hence a wide-scope new age banking certification is best undertaken at a reputed institute like Imarticus Learning.
Conclusion:
The pay packages, bonuses, and career-progression when you make in corporate banking are not just lucrative and prestigious. They are performance and certification related enabling continuous learning and very satisfying job roles.
Hurry to Imarticus Learning today! For more details, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Bangalore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

What Qualification Does One Need To Go For Capital Market Training?

If you are passionate about the Finance industry and have a fine knowledge and interest in the Sensex and nifty, why not make a career in the Capital Market and become a Capital Market Analyst?

A Capital Market Analyst is the one who combines sales, consultation, trade, and banking and balances these to work for the cause. With the market growing vast, there is a rewarding career in the Capital Market Analysis. Today we have professional training in Capital Market that produces highly skilled analysts.

What does a Capital Market Analyst do?

The Analyst can be found working in a various established organization such as Hedge Funds, consulting firms, the investment banking group, and other related firms.

They have a key role in facilitating communication between the company, investment firms, and research organizations. Companies count on them to bring the best possible deal for the clients and investors both. Capital Market Analyst is the supporter of the business that seeks capital investment in their company or the other way around.

The responsibilities of a Capital Market Analyst are: 

  • Communicating with the investors: They are the first ones who start the communication with the investors and are also responsible to research about them in details.
  • Setting or negotiating price: It is the responsibility of the analyst to deal with the pricing and thus they need to be highly persuasive and also adjusting in nature.
  • Organizing events: These analyst act as the middleman between the firms and the companies and thus will make efforts and organize events for the frequent meetings.
  • Pitching documents: They prepare the pitching documents that contain clear messages with all the details and helps to put forward the case.
  • Closing the deals: Last but not least, the analyst’s seals and finalizes the deal and ensures satisfaction on both sides.

Qualifications and Skill required to become a Capital Analyst

It is a field which requires all-round varying knowledge and different skills to be put together to create huge profit for the employers. In today’s contemporary times, a specialist is preferred who have a specific area of focus but some key qualities need to be present in common.

They require prominent knowledge in :

  • Trading
  • Settlements
  • Custody
  • Compliance
  • Risk
  • OTC derivatives
  • Finance
  • Prime Brokerage
  • Knowledge of IT Softwares

To become a Capital Analyst, one will need at least a Bachelor’s Degree in Finance, Business, Statistics or related field. Though there are no hard and fast qualification requirements to train in Capital Analysis, having strong communication skills, negotiation skills, analytical and research skills will surely give an upper hand. Also, if you intend to become a specialist in certain fields such as Healthcare, Tech, Media and Communication, you need to have deep knowledge about the sector.

There are several pioneer institutes in the country that run Capital Market Courses and provide top-notch training in the making of Analyst experts. The capital market tutorial is an easy way to gain basics in this field that will boost up your start. These tutorials are easily available, highly simplified that ensures the technicalities of this field are easily understood.

Share and Derivatives Analysis

Derivatives are among the most powerful financial tools which mainly represents contracts between two parties and derives its value from an underlying asset. The most common types of derivatives are stocks, commodities, market indexes or interest rates.

With shares and derivatives as a fast-growing financial instrument category, it becomes of utmost importance that a company dealing with finance takes measures for Share and Derivative Analysis. Derivative Analysis plays a pivot role in eliminating risks and helps in making successful predictions about the company and its future performances. This analysis indicates how well a firm is doing in the market in comparison to its competitors.

Share and Derivative analysis manifest complete details about the company’s strengths and weaknesses, its business relations, financial performances and all those factors that affect its earnings, dividends and future growth prospects. This analysis tool is being used worldwide to initiate successful trades. The purpose of the analysis is to help make more financially sound investment-related decisions by the investors.

Ways to learn Share and Derivative Analysis

Today, we have access to multiple sources of education that are easily accessible and highly reliable. To learn about Share and Derivative Analysis, a beginner needs to focus on fundamentals and basics of derivatives. There are so many resources and different platforms that can help gain a strong and sound knowledge about how derivative analysis works. Few of the ways we can approach are,

  • Read books
  • Tutorial videos
  • Certified courses
  • Resources and guidelines available online and offline
  • Blogs and Articles
  • Online and Offline Seminars

All the above-mentioned categories are helpful for a beginner to gain knowledge in this field. A word of advice is to make sure the resources are reliable and credible. For more details, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Hyderabad, Delhi, Gurgaon, and Ahmedabad.