Contact Us
×

Tag: Imarticus Learning

How Imarticus Learning Boosted Ashwin Alex’s career?

Posted on by Imarticus Learning

After obtaining his Bachelor of Commerce degree, Ashwin Alex managed to land his first job at Tata Consultancy Services (TCS) as a Customer Service Representative (CSR). He was given the responsibility of handling customer queries for TCS’s credit card and debt recovery division, a role which he fulfilled for 3 years. However, he knew that if he wanted his career to gain momentum, he would have to upskill himself and upgrade his existing base of knowledge.

Having spoken to a colleague who was enrolled in Imarticus Learning’s Certified Investment Banking Professional program, Ashwin became curious about what his colleague stood to achieve from the program. He witnessed his colleague complete the CIBOP program successfully and then get a job placement at a reputed investment banking firm. This inspired Ashwin to follow suit, and he too joined Imarticus Learning’s CIBOP program soon after.

It was one of the best decisions he ever made.

Three months into the CIBOP program, Ashwin was asked to rate his overall experience at Imarticus Learning. He gladly gave it a score of 5 out of 5, highlighting the dual benefits of both theoretical and real-world practical education he received from his primary trainer, Mrs. Lourdes Miranda. He emphasized that her teaching style made it easier for him to understand the complex world of investment banking.

Ashwin also spoke of the importance of guest lectures from seasoned investment banking professionals who provided him with extremely valuable industry insights that he was otherwise unaware of. He stressed how he learned about commodities trading, both in India and worldwide, from guest lecturers in a relatively short period of time.

The deeply knowledgeable faculty, the friendly administration, the in-depth course material, and the wonderful study environment fostered at Imarticus Learning left a remarkably positive impression on Ashwin. According to him, his experience during the CIBOP program has undoubtedly enhanced his professional profile and made him a much more desirable candidate for future employers.

To learn more about Ashwin Alex’s journey at Imarticus Learning, please click here.

Imarticus Special: 25% off on Data Analytics Courses!

Posted on by Imarticus Learning

What is data analytics?

In the contemporary landscape, data science is at the core of every industry that leverages progressive technology to target and reaches its audience. Data analytics has multiple aspects and can be explained as the process of cleaning, transforming and analyzing data to obtain valuable insights and draw important conclusions. The significance and vitality of data analytics are such that it can help to decode the world around us using statistical figures.

In the digital era, an enormous amount of data is generated and stored regularly from people all across the globe. Whether you are using your social media account or making a purchase online through your favorite e-commerce store, all the internet powered activities generates data that is stored electronically for future reference. Businesses are using data analytics to extract useful information about the customers that can help them design their products and services as per the customer’s need and demand. Some of the key aspects of using data analytics are listed below.

Identifying secret insights

Data is analyzed by businesses to obtain hidden insights that couldn’t have been normally obtained; these secret insights are used as per the requirements of the corporations. Data analytics helps to identify trends and patterns that help to project prospects.

Conduct market analysis

Conducting market analysis is an important application of data analytics. It helps to understand consumer behavior, the general trends and competitor’s strategies. It can help to find out the strength and weaknesses of other players in the industry.

Why opt for a data analytic course?

As we have already established that data science and analytics are at the core of corporate operations. Data analytics has gained widespread popularity in the last decade given the benefits it has to offer to businesses. This has caused a surge in demand for data analytics professionals.

As per the latest estimates, the demand for data analytics professionals in the industry is much higher than the current supply of professionals who are equipped to handle complex data. The data analytics industry is estimated to grow multiple-folds in the coming decade as more and more companies will adopt data science for smart decision making. A career in the field of data analytics is very rewarding and lucrative for those who are interested in making sense of facts and figures.

Imarticus data analytics courses

Imarticus Learning is a technology-driven educational institute that provides an immersive learning experience to students who want to kick start their career in industries such as analytics, financial services, AIML, business analysis, etc. The primary objective of Imarticus Learning is to reduce the skills gap that persists in the economy. The courses offered by Imarticus takes a comprehensive approach to learn both the theoretical and practical aspects of the subject.

Imarticus postgraduate data analytics course is among the best data analytics program available online. It is a well-designed postgraduate data analytics program that studies duration of 450+ hours. The training course takes a hands-on-learning approach to cover foundational concepts of the best analytical tools such as R, Python, SAS, Hive, Spark, and Tableau.

The whole PG program is spread across three semesters. In addition to the theoretical understanding of the data analytics related concepts, students will also gain practical exposure through case studies, live capstone projects, hackathons, and mentorship by industry experts.  The course also entails mock interviews to boost your employability, industry leaders for guidance, placement assurance and much more.

Imarticus Learning is providing a limited period offer on its special data analytics course. Enroll without any delay to avail 25% off on your data analytics course!

Why Is Professionalism Important at the Workplace?

Posted on by Imarticus Learning

Professionalism is perhaps the most misunderstood and over described term in modern times. Therefore, it is difficult to explain the precise expectation clearly. And because we often hear how vital it is to behave “professionally” we go on with our own interpretation of the expected perception.
The customary code of conduct is our easiest adaptation on following the method of the organisation, which to us is our guide to being a professional employee. We follow guileless like the dress code, office hours, doing the given job in a timely manner, basic dos and don’ts, which are self-explanatory. One doesn’t ponder over it for long and accepts, if what is written is followed, one will be considered a professional employee.
But what to employers exactly mean by this term? Certainly, it’s good to do one’s job well and show up on time regularly. But then again are there additional things expected of you if you rightly want to be regarded as a professional?
Your employer might not tell you exactly about their idea of being professional simply because they may expect you to know about it. It may only come up when you indulge in something they term “Unprofessional” or “Unexpected”, (for instance not attending a meeting with equipment to take notes)

Ways to be considered a professional: 
Acting like or conceivably one will be considered professional if your actions and presence make others think of you as a Reliable, Competent, Dependable, Respectful, and Believer of Integrity.
Being professional would mean to be consistently good at what you do, staying true to your words, meeting deadlines dependable, to be upfront about where things stand, to approach people with respect and most importantly to be proactive in upgrading your skills, being positive, focused, not letting your personal life dominate professional, listening to what is being said, supporting others, making informed decisions.
As said earlier the definition is vast, but if genuinely thought over, the above-mentioned traits are only a few ways to building a Professional Atmosphere which has myriad advantages.

  • Creates Boundaries – Workers who conduct themselves professionally avoid crossing their line with subordinates, superiors or clients
  • Creates an Atmosphere of Improvement – A professional atmosphere is more conducive to success.
  • The sense of Responsibility – In a professional atmosphere, an employee while handling a task, sees the larger purpose, and hence are able to own their actions and take appropriate decisions. One takes pride in performing the tasks assigned to them.  This adds to the overall image of not only the employee but also showcases the value by which the organisation stands.
  • Mitigates Conflicts – businesses which promote a professional atmosphere also makes it easier to deal with diverse environments in which subordinates or even clients could have a difference of opinion however they can agree to disagree and come together on common grounds.
  • Increased Job Satisfaction – Professionalism eliminates stress to a great degree and once that is taken care of an employee thrives in a healthy atmosphere leading to enhanced performance.
  • Personal Growth – Not only in terms of job advancement, but there are a certain dignity and pride in one’s work that develops. You get appreciated for consistently good quality output and that in turn builds your confidence, makes you a more secure person who is then capable of handling difficult situations with refined emotional maturity.

It is important to note that demonstrating professionalism is important at all levels in an organisation. Professionalism is not the responsibility of the leadership team but is vital at all levels. You can display professionalism in something as small as never forgetting an attachment to your emails, or writing without any grammatical errors, or in something as complex as performing a task with limited resources in the given time even when the delay was unavoidable.
Professionalism can become a part of your personality, (not keeping people waiting, being responsive etc..,) People with high levels of professionalism are most frequently considered for Job advancement.
Professionalism goes a long way in one’s personal career success as well as the success of the organisation.

Loved this blog? Read more here:
Why is a short professional program better than an MBA?
Life Hacks: 5 Tips to Help You Crack Interviews

AI (Artificial Intelligence) is about to Reshape the Workplace. How?

Posted on by Imarticus Learning

Of late, a great topic of discussion is on the true meaning of Artificial Intelligence. As the field is witnessing progress there is a constant evolution in the meaning as well. In simple words, artificial intelligence is the ability of the computer to perform tasks commonly associated with intellectual human beings. It is predicted to fundamentally reshape the way in which organizations work.

Artificial intelligence and Machine intelligence is often misunderstood as a substitute for each other. Machine learning is basically getting the computers to program for themselves, here it allows the data to internally train the data sets. Machine or Artificial intelligence on the other hand means ‘intelligent computers’, computers without human intervention capable of pattern discovery, discerning context, to reason, and to learn and improve themselves over time.

What’s in the future……?
In the future with this type of evolution, it will not necessarily be Humans v/s Computers, but man and computers working alongside in harmony to improve the way we work. So the employees who do routine manual or routine cognitive job roles will have a high chance that their jobs will be replaced with computers and they will have the availability of time to invest in areas that they are interested in or jobs that require advanced skills.

Making machines responsible to do the repetitive tasks can go a long way. It will take the creativity and innovation quotient of the human race to enhanced levels. Furthermore, this technology is not only set to impact the workers with routine repetitive jobs, if your job is of routine cognitive nature then artificial or machine intelligence will play a role of a digital advisor, but it will also play a role where man and machine collaboratively work in tandem for betterment. Artificial learning and automation of certain jobs will then to a large extent become a good thing.

There are some researches that predict that artificial intelligence will be responsible for making workers more productive and create new jobs. There is a belief that AI will help with automation that will not only assist companies to focus on higher-skilled tasks and more creative jobs but will give them insights that will enable workplaces to use that knowledge in ways that cannot have been imagined so far.

Some stats on Artificial Intelligence:

  • By 2020 85% of customer interactions will be handled without a human
  • 44% of executives believe “artificial intelligence’s most important benefit is that automated communications that provide data that can be used to make decisions”
  • By 2018 ‘customer digital assistance’ will recognize customers by face and voice across channels and partners.
  • By 2020, smart agents will manage 40% of mobile interactions.
  • 9% of business data technology has artificial intelligence solutions deployed.

The artificial intelligence market is estimated to reach $40 billion by 2020
In the future, you will witness an Artificial intelligence revolution in marketing, where smart data and machine intelligence in collaboration will use artificial intuition which ape’s human intuition. For e.g. creating advertisements whose images and phrases evolve based on viewer response.

However, reaching the state where organizations will be machine intelligence is not so easy. The majority of our efforts at present is on supervised learning, where we are training the computer on instances that are labeled with reinforcement, and doing that takes time. Also, there is the impending challenge of embedding technology into existing enterprise applications.

In doing that we will one day make the computer as intelligent as the human brain. 25 years ago the internet impacted the wider world, it revolutionized the way we existed, and changed the way organizations functioned. We are at the identical brink of time wherein the next 25 years Artificial Intelligence might have the same impact on the way we work and live.

Read More: Imarticus Learning

Industry Report: Banking in India: Initiatives of the Government Part III

Posted on by Imarticus Learning

Read the previous part of the report here.
The chief regulatory body, which is supposed to deal with all the finance and banking related decisions, is the Government of India. In the recent times, this body seems to have taken a considerable amount of decisions in order to strengthen the Indian Banking Sector. Some of which are as follows.
In the month of July 2016, the Government of India reportedly allocated about 3.41 billion USD. This amounts to Rs 22,915 crore, which was allocated in the form of capital infusion to 13 public sector banks. This move is believed to increase the economic growth of the country by improving the liquidity and lending operations of these public sector banks.
The Reserve Bank of India (RBI) has already begun on its move to make all transactions digital in nature and absolutely paper free. Following in the same vein, the RBI has released the Vision 2018 document, which primarily aims at increasing the use of electronic payments through all the divisions of the society. This move will not only increase the usage of digital channels but also boost the customer base for mobile banking.
All the commercial banks which are scheduled will now be allowed to grant non-fund based facilities including partial credit enhancement (PEC), to all customers including those that do not avail any fund based facility from any of the banks present in India.
The Union Budget, which was announced in the year 2016-17 had a provision towards interest subvention. This provision is basically made to help in reducing the burden of loan repayment by the farmers. On account of this, an amount of 15,000 crore INR is being granted by the government.
The Government of India is looking to set up an exclusive fund, which will be a part of the National Investment and Infrastructure Fund (NIIF). This fund will basically be set up for dealing with all the stressed assets of banks. This fund will be taking over all the assets, which although viable do not have any additional fresh equity from promoters to complete the projects.
Post the massive drive that was conducted by the government to open up a number of bank accounts, quite a large number of Indians were financially included in the banking sector. The Reserve Bank of India plans on coming out with guidelines, which will be dealing with the basic know-your-customer norms. These norms would be the primary focus of protecting the consumers.
The government of India is well on a warpath, to provide insurance, pension, and credit facilities to all of those citizens, who were excluded from enjoying the benefits offered by the Pradhan Mantri Jan Dhan Yojana (PMJDY).
In a bid to provide relief to all the state level, electricity providing companies, the government has proposed to its lenders that, about 75% of their loans would soon be converted to state government bonds.
Thus with so many new and effective schemes falling into place, courtesy the government of India, things are looking quite positive for the banking sector. This is great news for those finance enthusiasts who opt for special training programs, offered by Imarticus Learning in the field of Finance and Investment Banking.

Loved this blog? Read something similar here:
How to succeed as an Analyst in Investment Banking
Investment Banking – Why do Sellers use an Investment Banker? (I)
Working in a Boutique vs a Bulge Bracket Investment Banking Firm

For All The Career Oriented Women Out There

Posted on by Imarticus Learning

A few decades ago, the only career a woman could probably be allowed to pursue, was to take home tuition or probably open a day care center. The world has become a lot more in favor of equality and there have been various changes, especially in the professional sphere, when it comes to promotion of women for high-profile jobs. The number of women setting out for a better career is steadily growing in the society, with more and more women trying to set and achieve personal goals and ambitions. The stereotypes that a woman cannot function the way a man can, or women have other priorities and give less important to their job, are being destroyed. There is a majority of women who treat their professional life with an equal amount of importance as their home and family. These women are usually very very talented and need to feel the steady momentum, in order to keep on going and achieving their goals.

While there still are a number of issues, in terms of the equal work, equal pay dynamic, that have been a little difficult for women to handle, but in general there are various ways in which, women today are able to manage their responsibilities at their workplaces, as well as outside of it. The bottom line here is that if you are committed to your and your work, it sometimes becomes a little difficult to do the waiting for someone to acknowledge your perseverance and thus let you advance in your career.

For those who cannot wait for their work to be recognized, here are few ways with the help of which ambitious women can move forward in their lives.

  1. Goals

Turning your career plans into a proper flow chart like a plan is the best thing you could do to motivate yourself. Make a flowchart of all the things you want to achieve in say, the next ten years. Write down what you want to be, where you want to be and how you plan to achieve that and you will be a terrific goal seeker very soon.

  1. Take Action

Now that you have a clear skeleton, as to what you want to do in your future, it’s time to take some action. Outlining all the possible steps that you need to take to reach all of them and how you choose to make use of the resources available to you; this will help you maximize the benefits of the resources at your disposal, as well as put things into a proper perspective.

  1. Be Proactive

Making long term goals is absolutely amazing, but it does not mean that you should clearly ignore your short-term goals. Go ahead and make a to-do list every single day and ensure that you stick to it. Drive the fear of deadlines out of your system, by giving deadlines to the most minimalistic of tasks, be focused and alert during your working hours. Make contacts, be positive in your dealings at the workplace, ensure that you have positive vibes around you.

While these happen to be small changes that you can make on a personal level, at the same time, you can also opt for some professional changes. Taking a professional course would be a great choice to improve future aspects for your career goals.

Loved this blog? You might like these as well-
Working Capital – An Interesting Perspective
The Career Path and Salary for a CFA holder
Switch Careers, the Discreet Way

Life-Hacks: Absolute No-Nos at an Office Party

Posted on by Imarticus Learning

Imagine this. You are working at an International firm and they are having another office party to celebrate the launch of a product. Universities & Institutes prepare you for the theoretical and practical aspects of the job, but what about what happens after hours?
There are a number of top Investment Banks who provide their employees with interesting benefits, like organizing a product launch, annual parties or the likes. There’s a particular code of conduct as to how one would behave at these parties and here’s a few things that you must not do or say, according to a number of dignified HR professionals.
1. Never ever think it would be acceptable to expect the office party, to be a place where you would find a date. While it is fine if you are interested in someone from your office, never extend that interest to any of your coworker’s relatives. Asking or even suggesting someone to introduce their son or daughter, or their cousin or anyone to you, in the romantic context is an absolute no-no.
2. One should always measure their words. This holds truer than ever when it comes to parties and social gatherings organized by your office. The reason for this being sometimes professionals can get way out of hand while complementing a certain co-worker. Ensure that you keep away from commenting on someone’s dressing sense or physical attributes, even if you mean it innocently.

3. If any of your office parties involve alcohol, it’s always better to take a proper stance way before you attend the party. One thing that you want to make sure is that everyone, intoxicated or not, is able to get home safely. It is important that you either call up an Uber before, or have a designated driver. Just straight up going to someone (who you are not close to) and asking, “Can I Drive You Home?” will be absolute grounds for inappropriateness.
4. Always, always remember that it is an office party and not an informal gala which you are attending with your friends. This means that you should behave the way you would in the office. Being the person who drinks more than is necessary is something that you need to absolutely avoid no matter what.

Always ensuring to be sophisticated and poised, help in the making of a great employee and also help keep the atmosphere as positive as can be when it comes to working spaces.

 

We hope you liked this edition of Life-Hacks where we try to help our readers out with fun tips and tricks to survive the corporate world.

Top 6 Reasons To Smile At Work

Posted on by Imarticus Learning

A smile costs nothing, but creates much. It enriches those who receive, without impoverishing those who give. – Dale Carnegie

Psychology states that you can uplift your mood just by one simple trick, smiling. It is believed that the left cortex of our brain is the part which triggers happiness and by smiling, we stimulate it. Thus, leading to the release of endorphins, better known as the happy hormones that calm us. A lot of health experts recommend this technique to reduce anxiety and keep hypertension at bay. Smiling in general can boost your health and make you look and feel younger, it can also be your best tool at work.
Here’s a list of 6 reasons why you must smile at work

1. Smile, because you never know who’s watching you. A lot of managers believe in observing their employees, when they are off guard. A professional who is always grouchy, grumbles a lot and comes across as a possible liability to their co-workers and the environment. If your manager sees you sporting a smile and in an upbeat mood, the chances of it reflecting positively on your records are higher.
2. If you are a manager, then you definitely know how stressful team meetings can be. A lot of employees complain of not being able to be productive as they are always worried about the response from their managers. Smiling during these meetings and keeping a positive attitude can not only motivate you, but also your team mates.
3. Mondays are the official terrible days of the week. This week starter is labeled to be a day full of blues. But have you noticed that, if you turn up at you job on a Monday, in a sour mood then, your whole week follows similarly? Mondays, should definitely be the days you smile the most, so as to ensure that your whole week goes in the same upbeat manner. Remember this every Monday.
4. In lieu of enhancing employee relations, a lot of offices organize mixers or networking events. It’s surprising that most of the employees either skip these events, or turn up and spend the whole night looking into their drink. Smiles at these events lead to lighthearted conversations, which later on lead to great contacts in the industry. Who would have thought, that all you needed was a smile to be a pro at networking?
5. Every employee is given a pressure test every once in a while, the results of which may lead to a promotion or perks. The best way to ace these tests? Smile, because that way you come across as a hands-on employee, who’s never daunted by a challenging task.
6. Presentations are when everyone gets the jitter bugs. If this is a presentation that is for a great contract, which your company has been vying for lately, it can be a great pressure on you. This is the perfect time to smile and come across as someone who knows their stuff as well as is very approachable.
Imarticus Learning is an education institute, which has many comprehensive short term programs in the fields of Business Analytics, Finance and Data Science. But the thing that sets them apart from others, is the valuable career guidance and industry assistance provided to each candidate. Students have walked out of Imarticus with a smile, and walked into their new organisation with an uplifting and optimistic outlook.

 

Harnessing the benefits of Financial Innovation – Part 2

Posted on by Imarticus Learning

Harnessing the benefits of Financial Innovation rather than falling prey to its demons
by Rajat Bhatia
 
FINANCIAL INNOVATION AND 25-SIGMA“FINANCIAL CHERNOBYLS”:
During the 2007-2008 financial crisis, the CFO of Goldman Sachs, David Viniar, announced in August 2007 that Goldman’s flagship GEO hedge fund had lost 27% of its value since the start of the year. Mr. Viniar explained, “We were seeing things that were 25-standard deviation moves, several days in a row.”

One commentator wryly noted:
That Viniar. What a comic. According to Goldman’s mathematical models, August, Year of Our Lord 2007, was a very special month. Things were  happening that were only supposed to happen once in every 100,000 years. Either that … or Goldman’s models were wrong (Bonner, 2007). 

To give a more down to earth comparison, on February 29 2008, the UK National Lottery is currently was offering a prize of £2.5m for a ticket costing £1. Assuming it to be a fair bet, the probability of winning the lottery on any given attempt is therefore 0.0000004. The probability of winning the lottery n times in a row is therefore 0.0000004^n , and the probability of a 25 sigma event is comparable to the probability of winning the lottery 21 or 22 times in a row.

But sadly Goldman were not alone. In 2007 alone, massive losses were announced by Bear Stearns, UBS, Merrill Lynch and Citigroup, and then there were the earlier financial disasters – 1987, Daiwa, Barings, Long-Term Capital, the dotcoms, Russia, East Asia, and so on – and afterwards Société Générale and Bear Stearns again in early 2008, with rumours of more yet to come.

Citi’s case was particularly interesting. To quote from the same commentator:
Gary Crittenden, Citi’s chief financial officer, claimed … that the firm was simply a victim of unforeseen events. … No mention was made of the previous five years, when Citi was busily consolidating mortgage debt from people who weren’t going to repay … pronouncing it ‘investment grade’ … mongering it to its clients … and stuffing it into its own portfolio … while paying itself billions in fees and bonuses. No, according to the masters of the universe, downgrades by Moody’s and Fitch’s were completely unexpected … like the eruption of Vesuvius; even the gods were caught off guard. Apparently, as of September 30th, Citigroup’s subprime portfolio was worth  every penny of the $55 billion that Citi’s models said it was worth. Then, whoa, in came one of those 25-sigma events. Citi was whacked by a once-in-a-blue-moon fat tail.

FINANCIAL ENGINEERING AND THE MAJOR GLOBAL BANKS
An analysis of the behavior of stock prices of major global banks and derivatives houses during the last five years paints an interesting picture. With the exception of Macquarie Group, an Australia based global investment banking and derivatives firm, whose stock price is up 124% over the last five years and JP Morgan whose stock is up 45% over the same period, all the other banks who are active in investment banking, financial markets and OTC derivatives, are in the red. It is worth noting that the S&P 500 index is up 47% in the same period and HDFC Bank, an India based bank focused on consumer banking and working capital finance recorded an increase in its stock price by 125%.
Stock price performance of major banking institutions benchmarked against S&P 500 over the last five years ending on 26 February 2016.

Clearly, the derivatives, structured products and financial engineering firms are facing headwinds. These headwinds, have been most pronounced in the case of two European banks (1). Deutsche Bank whose stock price is down 67% over the last five years and which has been rumored to be running into the reefs just like Lehman Brothers did in 2008; and (2). Credit Suisse whose stock price is down 63%.
 

In the final post by Rajat Bhatia, we will talk about lessons learned from the wave of financial innovation. You do not want to miss that!
This, of course, is just a teaser to what you can expect at o
ur 2-day Management Development Program on Structured Products and Financial Engineering by Rajat Bhatia on 28th and 29th April, 2016. Enrol Now!

Target to Securities

Posted on by Imarticus Learning

By Abhinit Kumar.
Financial market is known for its constant changes. Since its inception, it has seen many changes in terms of financial reporting to regulators, risk or the way client’s assets are managed. Post Lehman collapse, the industry has seen one of the biggest changes in the way how derivatives markets are managed and how banks can indulge in proprietary trading under Dodd-Frank.
And yet again there is a new change being brought in the way securities trades will be settled in the euro zone knows, as introduced in finance courses in India, as Target to Securities (T2S).
T2S is in fact a new European securities settlement engine which will allow delivery-versus-payment (DVP) settlement in funds across all European securities markets much in similarity to DTC market in United States. It is expected to go live in 2015.
Reason for introduction of T2S is that currently all the securities trade in euro zone settle differently and authorities now want to make it more uniform settlement process.
In the past, European financial market was created to meet the requirements of national financial markets. In most cases, there were one or two dominant players at each stage of the value chain: typically only one stock exchange for trading, possibly one central counterparty (CCP) for clearing and at least one central securities depository (CSD) for settlement. Furthermore, each of these national infrastructures was primarily designed to manage securities that were denominated in the national currency.
Despite the introduction of the euro over a decade ago, the provision of clearing and settlement remains heavily dependent on domestic settlement.
Investors still trade mostly in domestic securities and in domestic currency. This does not provide an optimal settlement process in the euro zone and due to which the risk is still concentrated and not diversified which arise due to single currency.
So initially even United States was in a very similar position long time back, with a fragmented trading and post-trading infrastructure. The inefficiencies post trading system eventually took its toll and US government had to take measures to consolidate this fragmented. The US now has a consolidated trading and settlement environment, with the Depository Trust & Clearing Corporation (DTCC), responsible for the clearing and settlement of all equities and corporate bonds, and the Federal Reserve System responsible for government bonds. Very soon investment banking courses and training across financial courses,  MBA etc will need to start including this topic into their content to provide learners and readers with first hand information.
The EU authorities though have so far not taken any such dramatic steps. The initiatives taken up to now have focused on removing the domestic settlement process. Market forces would determine the optimal market structure, whether this is a single provider, as in the US, or multiple providers. The most important initiatives from the EC are the Markets in Financial Instruments Directive (MiFID) and Code of Conduct for Clearing and Settlement.
T2S is intended to complement these existing initiatives by improving competition, better price transparency and also improving current practices across Europe. Settlement has traditionally been the domain of national depositories, so it was difficult for a depository in another country to gain access to these securities. By creating a pan-European platform, T2S aims to improve these challenges between national markets in a way which could not have been achieved by the MiFID or the Code of Conduct on their own.
Also, with introduction of T2S in the school of investment banking is expected to get boost with more job opportunities getting created across operations.

Current workflow structure
Steps Involved
1-IB will execute trade with brokers
2-At the same time they will contact their custodian bank to provide trade details
3-Custodian will then inform clearing broker to ensure trade matching and settlement is done by them.
4-Both executing broker and clearing broker will match the trades and ensure settlement is done.
5-It is currently the job of clearing broker that trade matching is done on domestic exchanges and inform of any disparity.

New workflow structure
Steps-
1-All the steps remain same as per the old structure, but the clearing broker will not be part of the trade settlement process.
2-Custodian and Executing broker will directly be involved and settle the trade via new platform.
3-This will then ensure that trade can settle without the involvement of domestic exchange and improve cross border settlement process in EURO currency.

Visit our website to know more about our investment banking courses in India.