Today, technology is key in turning trading strategy into trading profit. Technology enables new pricing models and products to be delivered to the market. The IB industry thrives on the flow, analysis, and interpretation of information and technology is often the edge that gives a bank competitive advantage.
Technology spans across IB functions and underpins every deal that is made. When a system is unavailable, millions of dollars can be lost. So robust systems and infrastructure are more than important, they are fundamental to IB’s ability to operate & make profits.
Another challenge is the evolving regulatory burden of the financial sector. Technology has to do more than keeping up; it has to drive the changes and developments necessary to keep IB’s ahead of the competition.
IB’s rely on advanced technologies in the front office to enable high-speed and high-frequency trading. Until now, the upfront benefits from this activity have been so enormous that the complexity and inefficiency of post-trade processes and systems have often been overlooked.
This is changing at a fast pace. The highest performing investment banks are now using their front-office technologies in bold, innovative ways as a source of competitive advantage for the whole business. By concurrently enabling interdependent business functions, such as risk management, settlement and financial reporting, these technologies are transforming the way organizations ‘think’, ‘react’ and ‘operate’.
There are a number of reasons for the change in this trend:
• Management requires integrated, proactive technology infrastructures that can anticipate the impact of new market and regulatory developments and adapt to the same.
• Technical leaders are under mounting pressure to get a return on their massive investments in technology by using these assets to drive down costs, as well as increase revenues (traditionally the principal focus for front-office technologies)
• This increasing emphasis on ROI means Technology leaders need to develop flexible IT systems/assets, that, by adapting to business change, can appreciate in value over time.
Understanding complex technology is one aspect, but a firm grasp of business problems is also essential. IB technologists work closely with the sales, trading floor, middle office operations to develop the software that enables them to make the split-second decisions or use their creativity and initiative to enhance state-of-the-art front-to-back systems and databases. Whatever the task may be, IB technologists work in a fast-moving environment where solutions move from concept to implementation in weeks and months rather than years.
You’re in the right place. If you enjoy reading about Finance.
“IMARTICUS GOOD READS”
DISRUPT YOURSELF: PUTTING THE POWER OF DISRUPTIVE INNOVATION TO WORK
Author : Whitney Johnson
Johnson, a Merrill Lynch equity analyst turned entrepreneur, shows how and why to upend a career in this practical, concise book. Savvy and often counter-intuitive, this book offers the tools, mind-set guidance, and rationale for avoiding complacency and embracing a new career path. Consider this your playbook for personal and professional innovation. Are you ready to jump?
THE ART OF DISTRESSED M&A: BUYING, SELLING, AND FINANCING TROUBLED AND INSOLVENT COMPANIES
Author : H. Peter Nesvold and Jeffrey Anapolsky
Opportunities abound in “bankruptcy beauties”―both in good times and bad. The Art of Distressed M&A provides the information needed to manage the unique complexities of buying, selling, and financing troubled companies. The book also highlights practical examples using recent bankruptcy cases following the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and is the first publication of its kind since the Dodd–Frank Act of 2010.
THE GLOBAL MINOTAUR
Author : Yanis Varoufakis
In this remarkable and provocative book, Yanis Varoufakis, former finance minister of Greece, explodes the myth that ineffective regulation
of banks, greed and globalization were at the heart of both the Eurozone crisis and the global economic crisis. Rather, he makes the case that they are mere symptoms of a much deeper malaise, traceable to the Great Crash of 1929, then on through to the 1970s: the time when a Global Minotaur was born.
GOOD TO GREAT: WHY SOME COMPANIES MAKE THE LEAP… AND OTHERS DON’T
Author : Jim Collins
Good to Great introduces readers to the concept of an enduring great company, one that sustains trem
endous growth for at least 15 years from the so called “turning point”. Published in 2001, the book offers a well-reasoned road map to excellence for any organization and gives a great opportunity to analyze how much endurance there is in a great enduring company.
THE BOOK OF AWAKENING: HAVING THE LIFE YOU WANT BY BEING PRESENT IN THE LIFE YOU HAVE
Author : Mark Nepo
A daily guide for authentic living in hard times, The Book of Awakening is a beautiful and poetic book to keep your head high, your heart
open and your feet on the ground. A year’s supply of wise and shining thoughts to be taken, one a day, like vitamins
for the soul. Highly recommended by Oprah Winfrey and one of her Ultimate Favourite Things.
What surprises our IFAP and students the most during the program is not how difficult and subjective Valuation and interpreting Financial Statements can be but how quant work is not the be all and end all of Financial Analysis. In fact, once they learn the logic behind the CAPM and it’s elements, the calculation of the WACC and the formula for the free cashflow, all of which are easy once you understand the steps and the theory, what flummoxes is forecasting basic numbers like sales, working capital and capital expenditure. They realize it’s not just a case of dragging cells and using historical growth rates but understanding the company’s future in context of the industry it operates in. The best analysts are industry experts, which is why Investment Banks work in Industry teams because, like man, no company is an island.
This blog post is a part of a longer series where we try and understand the importance of Industry Analysis, its role in financial services and of course, try and develop quick frameworks that help you ask the right questions. Let’s start with its role, which goes right back to strategy and the principals of why companies exist.
There are two principles to running any firm:
- Increase Top line or Sales or Revenue year after year and in a sustainable manner.
- Increase the bottom-line, margin, profit, income year after in a sustainable manner
The word ‘sustainable’ is critical because a company is an entity that lives to perpetuity. So to create wealth and fundamental value, growth and profitability have to be recurring forever. That’s what creates great companies like Saint Gobain (founded in 1665) Citigroup (1812), Harpers Collins (1817) Bowne (RR Donelly 1775) and Kikkoman (the Japanese food company that can trace its heritage back to 1630). No PE firm wants to invest in a one hit wonder because selling it again would require them to prove sustainable returns over a lifetime.
For firms to achieve their two principles they begin with a vision and a mission statement followed by an execution plan which we broadly call Corporate Strategy, quite simply, a plan of attack. Why attack? Well because most of what we know about strategy comes from war strategy and the wisdom of the Romans, the Greeks and the Mauryas and the political treatise like Arthashastra by Chanakya, The Prince by Machiavelli and The Art of War (the one most adapted to business and investing) written by Sun Tzu.
FACT: Japan is home to the world’s oldest lots of things. Sudo Honke, the world’s oldest sake brewer, has been around since 1141. Before being absorbed into a subsidiary in 2006, the oldest continuously operating family business in the world was Kongo Gumi, which built temples, and had been doing so for 14 centuries.
The origin of Strategy
Military War strategy focused on two things, how to acquire power, stay in power once you get it and how to expand your reach, creating more wealth for your treasury and, unfortunately, yourself. They rarely did it for their people. Nothing much has changed. Strategy wouldn’t have been needed of course if there were only ONE people and ONE king who ruled the earth completely, leaving no land to conqueror or no usurper to vie for the throne. We would call this a Monopoly. A state of play where there is no competition for customers or demand making me the sole provider, which enables me to charge anything, I want. Anyone or anything come to mind? OPEC has been doing it for years. Controlling supply and price because our demand for oil can never be satiated, that was until Russia and the US entered the picture and we suddenly went from a Monopoly to an Oligopoly where there were other players.
What about De Beers, the South African diamond miner? For years they controlled who they made sightseers, a selected group of people who would be given a velvet bag in exchange for money, a bag they could not open. The aspects (four C’s) of the stones unknown to the buyer, and they had to live with it for over a 100 years until Alrosa broke open the market in 1992 and became the largest miner in the world.
When you stop being the only one, you have only two ways to grow. You either conquer unchartered territory or you take someone else’s. Unchartered territory is ofcourse the easiest and most cost effective. You lose fewer people, spend less on feeding and housing armies and don’t lose sleep over being knifed by the resistance. But alas, much like the world has run out of unchartered territory, product demand is not infinite. This means I am going to have to step on your toes, and perhaps take what is yours. To do that successfully I need to master three things.
- Have a single simple long term goal
- Have a comprehensive understanding of my environment
- Have a critical and honest appreciation of the strength of my resources.
In the next series, we will look at the above in more detail. This is a small taste of what you will learn in IFAP, the industry’s leading Financial Analyst program. Learn more about the program here.
Today we try and understand the relationship between Bond Prices and Yield.
Bonds or Fixed Income products per say have been a great area of interest for investors and specially traders globally. Investment banks have always relied heavily on FICC (Fixed Income Currency Commodities) business to make profits. FICC has always been the major contributor to the banks profits.
Now let’s understand how the Fixed Income product really works and what the determining factor is for investors and traders to invest in a type of bond.
The two major components of a Bond is principal and interest. Interest component is primarily known as Coupon. But bond investment is primarily decided by calculating the Yield. Now what is Yield. Not delving into the bookish definition much, It is anticipated rate of return.
So let’s take an example now and understand how it works in a practical scenario.
A Bond say XYZ is issued on 1st Jan 2012.
- Face Value-$1000
- Coupon-6% Semi Annually
Mr. A purchased this bond on the issue date. So he would receive $60 as yearly interest in two shapes of $30(paid semi annually). Owing to the huge demand of bond the price of the bond has gone up to $1100 after one year. Mr. B who is interested in buying this bond is willing to pay $1100 to Mr. A. Mr. A is happy to sell this off as he is making $160 ($100 due to increase in bond price and $60 as coupon) which is 16% return on investment. The bond is now sold to Mr. B on 1st Jan 2013 at $1100. But the question now is will Mr. B get 6% on Face value or the price he purchased the bond. It is important to understand that bond is a debt instrument and no issuer will want to increase the liability by paying coupon on $1100.Hence coupon will be always paid on $1000 irrespective of the price the bond is purchased in the secondary market. But is that the real rate of return for Mr. B. No is the answer. Reason being he purchased the bond at $1100 and is getting coupon of 6% on FV.
Then how does Mr. B calculate is real rate of return. Well, he does this by calculating Yield.
Let us now calculate the yield of both Mr. A and Mr. B and determine the relation between Bond price and Yield. Going by the above formula.
Yield of Mr. A = 6/1000 = 0.006
Yield of Mr. B = 6/1100 = 0.005
Hence we can now deduce that bond price is inversely linked to the yield. Meaning, if bond price goes up, yield goes down and above calculation can be used to demonstrate the same.
Interested in learning more about Bonds? Then why not enrol in our online 8 week Certification in Capital Markets program (CCM). It is a comprehensive, short-term instructor led program that provides aspirants with a thorough understanding of Financial Instruments and Capital Market Operations through 34 hours of videos and 20 hours of live webinars. Details about the program can be found here.
Learn this and much more from senior bankers and traders at Imarticus. Imarticus Learning is India’s leading Financial Services and Analytics professional education institutes. Our courses are designed by industry experts to impart practical skills and knowledge. We have accreditations with CISI, the largest and most widely respected professional body in the securities and investment industry in the UK and in a growing number of major financial centers around the world. Our Faculty & Management includes Sr. Bankers from tier 1 banks with a combined experience of over 150 years in the Global Banking & Financial Services, and of course Placement Alliance – association with 25+ Global investment banks such as J.P. Morgan, Deutsche Bank, Morgan Stanley, Goldman Sachs, Barclays, Bank Of America, and many more.
Some links to learn more about IB :
Investment Banking is not just about horsepower, if it was then the smartest people in the room would be PhD holders. Most successful Investment Bankers are not CA’s and neither are they CFA’s. Most Investment Banking analysts around the world are armed with degrees in History and Philosophy and often law because most Analysts are graduates fresh out of university. So what does it take for an Analyst to perform successfully during the first crucial three years?
Hardwork: This is a given but after three years of doing a Bcom where you skipped classes and had weekends to yourself, 90 hour weeks can be hard especially if you’ve never done finance before. Most Investment Banks are happy to have you learn on the job but that means doing it on your own time. So while you spend your days building tables, research companies and filling up powerpoint templates, you need to spend your after hours, think skipping that episode of Suits and take out your Damodaran on Valuation. Investment Banking does not allow for weekends or free time during your first two to three years. You are wedded to your job. That means getting in at 9 am and working till 8 pm after which you’re probably going to have to come back to work on Saturday and Sunday to finish that pitch if you want a coveted bonus. But beware of facetime. Staying in and playing brick breaker at work won’t score you any points primarily because it’s very unlikely you’ve finished everything you need to do. There’s always something more to do in IB. The financial analyst prodegree program is an intensive program that prepares you for the harsh reality of Investment Banking.
Deadlines: Getting stuff done on time is something we have noticed students find very hard to do because they are not used to doing assignments. They think extensions are permissible. There are no extensions in Investment Banking or Equity Research because a meeting or stock calls cannot be postponed. The financial analysis prodegree ensures that assignments have strict deadlines through our state of the art Learning Management System.
Groupwork: for many of you, this will be the first time you work in groups and have to put up with someone else’s style of working. A team will always create better work than an individual because it has the added advantage of multiple inputs, which get validated by your peers, and it also ensures that mistakes are caught at various levels. But group work also means working your leadership skills, learning to delegate, learning to accept someone else’s weaknesses and bringing the best out in the team. It can also mean learning to work with someone who doesn’t pull his or her weight. This is a common interview question. How would you deal with a team member not working on their deliverables? The Imarticus School of Investment Banking prepares you for group work since almost 40 percent of the course is group work which means you work with people who live 2 hours away from you and come from different backgrounds. You learn to work in coffee shops and crowded environments and realize that working in a group is much better than working alone.
While the financial analysis prodegree program prepares you for Investment Banking by equipping you with technical skills such as Financial Modeling, Pitch Book making as well as Financial Analysis training, we also focus on developing your soft skills, which include Business communication skills, group work and Interview Preparation.
So to boost to your career in finance and enroll now!
The buzz word everywhere is analytics but it’s only when your interest is piqued and you decide to investigate a little further that the realm of all analytics software tools opens up. Among these, SAS you will soon find is hard to ignore as an integral part of all analytics domains.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence Market. Through innovative solutions, SAS helps customers at more than 70,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world the power to use data to make informed business choices.
SAS or statistical analysis system as it was originally called is a software suite or a set of solutions developed by the SAS Institute to analyse and interpret large sets of data by business users enterprise-wide. It enables them to derive conclusions and make strategic recommendations to improve business performance. The many tasks SAS can perform include data entry, retrieval, and management, report writing and graphics, statistical and mathematical analysis business planning, forecasting, and decision support.
Origin of SAS
The major contender in the world of analytics today had its origins in very humble beginnings.
The SAS seed was sown in 1966 when Anthony Barr at North Carolina University started a program to analyze agricultural data and increase crop yields. Barr was later joined by James Goodnight, a student at the time who helped program statistical routines into the software, thus putting the duo at the helm of the project. Though the project initially lost it’s funding from the National Institute of Health, the University Statisticians of the Southern Experiment Stations extended their help to finance the project the following year. Work thereafter continued uninterrupted with more people joining and contributing extensively. A few of these notable contributors were John Sall who joined in 1973, Caroll G. Perkins who contributed to SAS’ early programming and Jolayne W. Service and Jane T. Helwig who created SAS’ first documentation.
Eventually in 1976, Barr, Goodnight, Sall, and Helwig took the project out of North Carolina State and incorporated SAS Institute, Inc.
Why opt for SAS?
Gartner research in it’s issue states that SAS’s strengths in the Industry still remains undisputed in several spheres of analytics.
But why should you or I go by what Gartner perceives?
This would require a short introduction to Gartner itself. Gartner is an information technology research and advisory company providing technology related insight. Gartner uses what it calls Magic Quadrants for visualization of its market analysis results. Magic Quadrants are a culmination of research in a specific market, giving you a wide-angle view of the relative positions of the market’s competitors.
To quote from the report on the strengths of SAS :-
- SAS gets high marks for its global footprint and broad industry initiatives. The solution-oriented analytic application approach to the market is a differentiator, giving the company the advantage of having a wide variety of cross-functional and vertically specific analytic applications out of the box for a wide variety of industries, including financial services, life sciences, retail, communications and manufacturing. Thus, SAS’s sales processes can be diverted from tool features and price comparisons to a discussion of potential business value of solutions and industry expertise. While others are also adopting this approach, SAS remains in the lead.
- In 2012, SAS announced Visual Analytics, the new data discovery product that merges dashboard design with diagnostic analytics and the use of predictive models — a possibility not yet available in some of its competitors’ tools.
From our viewpoint, the world of data can be divided into three parts –
- Small data- a word that will be used to define data that has upto 1 million rows and few hundred columns of data and can fit into an excel sheet, will be drawn to softwares that allow them to do processing on excel itself
- Large data– a word that will be used to define data that has a few million rows and a few thousand columns of data and will often be found in ERP system tables and in the EDW (enterprise wide data ware house). The common softwares to analyse this data is SAS, SPSS, Minitab, Stata, Systat etc. The size of the data most likely would be around 1 GB.
- Big Data – a word used to define data that is huge, much likely run into a few GBs and require systems like Hadoop, Teradata etc. to hold and manage.
For Large data, SAS and SPSS will continue to hold ground but SAS’s ability to process large volumes of data without a blip and the very ‘long term relationship’ style of marketing and sales that SAS practises as a company, will fuel SAS as the most popular and widespread SAAS in the area of Analytics. Sheer acceptability in the industry will snowball the widespread usage of SAS, quite like MS office. Also, SAS’s extensive online help makes its usage quite like writing an open book exam. As long as you know what you are looking for, there is near certainty you will find it on a click of the mouse.
To conclude, another stronghold for SAS will be its ability to handle the big data revolution.
For further information regarding the Business Analytics Programme offered at Imarticus kindly visit the link below,
The other half of traditional Investment Banking, Financing or Corporate Financial Advisory, comprises of structuring and executing a variety of transactions including equity offerings and debt issuances to help companies raise money to fund both organic and inorganic growth. Banks also act as intermediaries between investors like Private Equity firms and companies.
Private Financing can be in the form of straight equity, mezzanine- a mixture of debt and equity, and also structure customized solutions using a host of derivative instruments. This should not be confused with the Derivatives desk that sells hedging instruments to corporate as part of their own risk management strategy or proprietary trading. Corporate financial advisory is a pure service and the team acts as a middleman even if the derivative is being sold is by another team in the same company. The conflict of interest that arises when you have to recommend your own firm’s product has been widely debated. Chinese walls have been set up for this reason and many banks have strict communication protocols in place to make sure the client is protected.
Public market financing is the way companies raise money through the primary and secondary public offerings and debt issuances. Investment banks take up the role of a Book Running Lead Manager. The Book Running Lead Manager undertakes the due diligence of the company ensuring it meets all the criteria for listing, creates the IPO Offer Document, markets the offering through road shows and carefully planned analyst meets and finally sells the issue sometimes offering to underwrite. Here again, the underwriting to buy a percentage of shares is not done by the Investment Banking team but by the Securities desk of the same bank.
Going back to our example of Company ABC. Company ABC requires funding to complete its acquisition of XYZ. Sometimes the same team or in larger banks a different team will set about choosing the appropriate method of finance. Private financing in terms of Private Equity, Mezzanine or Debt or say an IPO or a public debt issuance. In this case it is decided that it is time for ABC to go to the markets and do an Initial Public Offering (IPO). The Equity Capital Advisory team then does a due diligence, puts together the offer document and finally sells the issue.
An example of a financing transaction
The Buy-Side Sell Side confusion
This is the general line of thought. On the sell-side, you pitch products such as stocks, bonds, or entire companies in the case of M&A, and you persuade investors to buy them. On the buy-side, you raise capital from investors and then make your own decisions (or in the case of mutual fund analysts make recommendations) on where to invest it and what to buy.”
This is perhaps the worst way to categorize financial firms for the following reason. Large financial firms like ICICI have both buy and sell side divisions. If we go back to our earlier blog post, everyone does everything these days. ICICI has a mutual fund and ICICI has a Equity Capital Markets team.
How does this relate to you as an analyst starting off in a firm? Where should you go? We will look at this in a more detailed manner in a later post relating to Careers in Investment Banking.
This is the classic investment banking product offering and involves providing advice to businesses, private investors, government agencies, private individuals and families in divesting and acquiring assets. Advice is provided on a full range of transactions including mergers, sales, buyouts, divestments, leveraged buyouts, joint ventures, raid defenses, spin-offs.
The range of services includes origination of assets to acquire, structuring, negotiation, due diligence right up to documentation and closure. The banker or a team of bankers work side by side with the company often even in charting out their growth strategy before they decide to pursue inorganic growth.
Large bulge bracket M&A teams in Goldman Sachs, JP Morgan etc often have two parts to their business- Origination & Execution. Origination involves the sourcing of deals, which includes business environment analysis, company research, pitching and agreeing on terms. Once a deal has been sourced and the target/strategy agreed on the execution team steps in to validate, value, structure and close.
To understand how interconnected the entire spectrum of banking is, we will use the example of Company ABC. ABC is bottling Water Company undertaking a huge organic and inorganic expansion plan. This strategy in itself might have been formulated with the help of a consultancy firm like McKinsey or Monitor. Once a strategy has been formulated, ABC retains an M&A team to chart out its inorganic strategy and put out a criteria list. The M&A team will then scout the globe and bring back a laundry list of possible matches according to the criteria list. They shortlist and start contacting the companies, or their respective bankers and after a lengthy process of sharing preliminary information, they zoom in on XYZ Water Company to be a suitable strategic asset for ABC. The M&A team will now engage, value, and handle the entire transaction on behalf of its client from here on out till closure. Closure includes signing on the dotted line and the fulfillment of conditions precedent (Essentially terms that need to be fulfilled for money and shares to exchange hands) Lawyers play a significant role in M&A as well and work in tandem with the M&A team especially in Due Diligence and Documentation.
This brings us to our IFAP course why it is different from other Financial Analyst Courses. Our IFAP course covers this entire process in detail and will equip you with the tools required to understand and run this process effectively. We will teach you how to research companies, how to value them and use financial models in an M&A transaction. We will take you through the concept of synergy and control premiums. Finally we will take you through the salient points of documentation.
At its heart, Investment Banking is the job of the intermediary; it is the key link between buying and selling, raising and lending.
It’s hard to know what you want to do in life if you don’t know what is out there and one of Imarticus’s keys goals is to spread awareness of the different career possibilities in Corporate Finance. This will then help you understand the need for Investment Banking courses or Financial Analyst courses that will help prepare you for a career in this extremely competitive universe.
The term Investment Banking has gone through a sea change in the last two decades with it becoming almost synonymous with Financial Services. With the scope of commercial bank and traditional investment banks constantly overlapping, there is no one definition. With the repealing of the historical Glass Steagall Act of 1933 in 1999, the walls separating investment banking activities and commercial banking activities dissolved. Even traditional retail banks like ICICI and SBI have investment banking arms today. The crisis of 2008 however has thrown light on these conflicts and chinese walls are being adhered to more carefully now. The term Investment Banking however is a term still used loosely to describe any institutional financial services offering.
Traditional Investment Banking comprises of Mergers & Acquisitions (M&A) and Corporate Finance Advisory. In a broader sense however, it can also include the entire Securities industry, which includes Sales & Trading, Clearing and Corporate Support. Extending their scope even further, investment banks now offer Asset Management and Private wealth managed services as well. At its heart however lies the job of the intermediary, the key link between buying and selling, raising and lending.In the series we intend to break down Investment Banking not just into its academic components but its functions and careers. We will profile Front Office Analysts and Private Equity Analysts to understand what they do everyday. In our next installment we will understand the various functions, the concept of Buy Side and Sell – Side and delve a little into the world of Mergers & Acquisitions.
Did you know?
The Bombay Stock Exchange is the oldest exchange in Asia and can be traced back to the 1850s when four Gujaratis and one Parsi stockbroker would gather under the banyan trees in front of Mumbai’s Town Hall. While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first venue of the earliest stock broker meetings in the 1850s was in rather natural environs – under banyan trees – in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and what is now called Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to place, but they always overflowed to the streets. At last, in 1874, the brokers found a permanent place, and one that they could, quite literally, call their own. The new place was, aptly, called Dalal Street (Brokers’ Street). The official organization became known as ‘The Native Share & Stock Brokers Association’. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX futures contracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE’s trading platform. Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. This automated, screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million orders per day. The BSE has also introduced the world’s first centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform. (Extract from BSE Website)
Suggested Further Reading
Chartered accountants are considered as one of the most sought after professionals in the finance industry and becoming one can expose you to a lot of job opportunities. These opportunities extend to lucrative careers in the Global Investment Banking sector, but they often get passed over for people who have additional skill-sets to meet the requirements of these global IB firms.
To bridge this gap, Imarticus Learning has introduced the CIBIF (Certified Investment Banking International Finance Professional) program with the purpose of imparting knowledge and training that will enable them to successfully enter field of Investment Banking.
This course is structured for candidates who have completed or are pursuing CA, ICWA or CS and want to work in areas of Financial Control, Product Control, Financial Planning & Analysis & Corporate Treasury in the Investment Banking industry. CIBIF is designed to be industry relevant in Corporate Finance for Investment Banking, which will create a distinct advantage over other general finance professionals. To facilitate the training program, a wide range of industry experts from highly reputed organizations will share their expertise and knowledge and provide guidance to the students.
This unique and specialized course is scheduled to begin from November, 2012. It is a comprehensive 3-month program which will enable students to gain in-depth knowledge of Global Investment Banking and Capital Markets, Securities & Derivatives industry, Global Accounting & Reporting Standards, Balance Sheet Forecasting and Analysis, Corporate Treasury and IB Corporate Finance.
After going through the CIBIF program, a student will be ready to work in a Global IB firm as he/she will have an in-depth understanding of Global Capital Markets, Complex Trading Activities, Financial Control, Regulatory and Compliance Reporting, and Treasury across the broad spectrum of IB divisions.
Some of the key responsibilities of a Corporate International Finance Professional would be:
*To safeguard the firm’s assets across complex trading structures.
*To manage the firm’s liquidity, secured and unsecured funding requirements, balance sheet reporting and analysis from entities and subsidiaries to group holding companies.
*To protect the firm’s capital against counterparty default and creates a strong risk management framework.
*To look after the firm’s relationships with regulators, rating agencies and creditors and provide a broad analytical and regulatory compliance support across all IB businesses.
*To ensure that the firm complies with the tax laws of the countries it operates in.
*To provide meticulous knowledge and understanding across areas such as Front Office, Legal, Compliance, Operations & Technology.