Understanding the Markets

This book looks at the financial markets from the viewpoint of the person working in the operations functions that support the trading, dealing and investment processes, and as such is essential reading in order to fully understand the industry — an industry which has gone, and is still going through, much change.

As the markets undergo change so too do the administration, clearing and settlement functions, as the clearing houses, security depositories and custodians merge and diversify. This is going to impact on the operations teams that support the trading, sales and retail business. A failure to be aware of and to understand the impact of changes in the markets will create massive problems, greater risk and ultimately financial losses. And yet the sheer size and diversity of the global markets, together with the rapid pace of change and expansion, and the increasing volume of transactions needing to be processed, present a massive challenge to operations teams and managers.

Knowing how the markets work and what impacts on the operations team is crucial for managers and supervisors. In this book the author provides a full explanation of the markets and their impact in operations terms. So if you are about to embark on a career in operations Understanding the Markets is essential reading. Alternatively, if you are planning a career as a dealer it will give a useful insight into what happens after you have traded.

Understanding the Markets:

• provides an analysis of the major securities, derivatives and money markets from an operations point of view
• takes you through the major features and characteristics of the markets and the products
• explains the relationship between trading, dealing and operations functions
• looks at the significant changes taking place in the financial markets and considers those that are likely in the future
• will provide the supervisor and manager of an operations function (and those aspiring to these positions) with thought-provoking examples of how and why problems can occur
• shows the importance of understanding what happens in the front office

1. Introduction
2. Debt and money markets
3. Equity markets
4. Derivatives and commodities markets
5. Trading, dealing and investment
6. The role of the exchange
7. Fund management and retail markets
8. Changes and developments

• Appendix 1: ISSA 2000 recommendations
• Appendix 2: G30 recommendations
• Appendix 3: Global derivatives exchanges

The title says it all. A very good introduction to the investment markets. Don't be surprised to find that half the book is a glossary, it is an introduction text.