KEITH DICKINSON is Director of The Settlement & Management Research Consultancy Limited, Principal of Financial Markets Training Limited and a Senior Teaching Fellow at the International Business School Suzhou at Xi'an Jiaotong-Liverpool University, Suzhou. His career has spanned twenty years as an industry practitioner in operations and over twenty years in executive education and academia.

A comprehensive text on financial market operations management
Financial Market Operations Management offers anyone involved with administering, maintaining, and improving the IT systems within financial institutions a comprehensive text that covers all the essential information for managing operations. Written by Keith Dickinson--an expert on the topic--the book is comprehensive, practical, and covers the five essential areas of operations and management including participation and infrastructure, trade life cycle, asset servicing, technology, and the regulatory environment. This comprehensive guide also covers the limitations and boundaries of operational systems and focuses on their interaction with external parties including clients, counterparties, exchanges, and more.
This essential resource reviews the key aspects of operations management in detail, including an examination of the entire trade life cycle, new issue distribution of bonds and equities, securities financing, as well as corporate actions, accounting, and reconciliations. The author highlights specific operational processes and challenges and includes vital formulae, spreadsheet applications, and exhibits.
* Offers a comprehensive resource for operational staff in financial services
* Covers the key aspects of operations management
* Highlights operational processes and challenges
* Includes an instructors manual, a test bank, and a solution manual
This vital resource contains the information, processes, and illustrative examples needed for a clear understanding of financial market operations.

Preface xix
Acknowledgements xxiii
PART ONE
CHAPTER 1 Introduction to Operations 3
1.1 Introduction 3
1.2 Organisational Structure of an Investment Company 5
1.3 Operations' Relationships 10
1.4 Other Business Functions 13
1.5 Summary 15
CHAPTER 2 Financial Instruments 17
2.1 Introduction 17
2.2 Why Do We Issue Financial Instruments? 18
2.3 Money Market Instruments 19
2.4 Debt Instruments 26
2.5 Equity Instruments 38
2.6 Derivative Instruments 47
2.7 Exchange-Traded Derivatives 52
2.8 OTC Derivatives 71
2.9 Summary 81
CHAPTER 3 Data Management 83
3.1 Introduction 83
3.2 Importance of Reference Data and Standardisation 84
3.3 Types of Reference Data 86
3.4 Data Management 94
3.5 Legal Entity Identification 95
3.6 Summary 99
CHAPTER 4 Market Participation 101
4.1 Introduction 101
4.2 Market Players 102
4.3 Market Structure 131
4.4 Summary 137
PART TWO
CHAPTER 5 Clearing Houses and CCPs 141
5.1 Introduction 141
5.2 Overview of Clearing and Settlement 142
5.3 The Clearing House Model 143
5.4 The Central Counterparty Model 145
5.5 Features of CCPs and Clearing Houses 148
5.6 Summary 150
CHAPTER 6 Securities Depositories (CSDs and ICSDs) 151
6.1 Introduction 151
6.2 Historical Context 151
6.3 Definitions 154
6.4 Central Securities Depositories 154
6.5 International Central Securities Depositories 163
6.6 Linkages - Exchanges, Clearing Systems and CSDs 167
6.7 CSD Associations 171
6.8 Summary 173
CHAPTER 7 Securities Clearing 175
7.1 Introduction 175
7.2 Generic Clearing Cycle 176
7.3 Trade Capture 182
7.4 Trade Enrichment and Validation 184
7.5 Regulatory Reporting 186
7.6 Confirmation and Affirmation 188
7.7 Clearing Instructions 194
7.8 Forecasting - Cash 199
7.9 Forecasting - Securities 203
7.10 Summary 205
CHAPTER 8 Settlement and Fails Management 207
8.1 Introduction 207
8.2 The Different Types of Settlement 208
8.3 Delivery versus Payment 211
8.4 Free of Payment Settlement 215
8.5 Settlement Fails 217
8.6 The Move to Shorter Settlement Cycles 228
8.7 Summary 229
CHAPTER 9 Derivatives Clearing and Settlement 231
9.1 Introduction 231
9.2 Regulatory Changes 232
9.3 Exchange-Traded Derivatives Contracts 234
9.4 Cleared OTC Derivatives Contracts 240
9.5 Non-Cleared OTC Derivatives Contracts 245
9.6 Summary 255
PART THREE
CHAPTER 10 Custody and the Custodians 259
10.1 Introduction 259
10.2 Custody 260
10.3 Holding Securities 263
10.4 The Custodians 267
10.5 Target2Securities (T2S) 279
10.6 Summary 283
CHAPTER 11 Corporate Actions 285
11.1 Introduction 285
11.2 Types of Corporate Action Event 286
11.3 Participation in Corporate Actions 287
11.4 Entitlements, Key Dates and Claims 289
11.5 Corporate Action Event Processing 294
11.6 Information Flows 315
11.7 Corporate Action Risks 320
11.8 Industry Initiatives 323
11.9 Corporate Governance and Proxy Voting 328
11.10 Withholding Tax 333
11.11 Impact on Other Departments 337
11.12 Summary 340
Appendix 11.1: Corporate Action Event Type Categories 340
Appendix 11.2: Voluntary and Mandatory Events for Equities and Bonds 341
CHAPTER 12 Securities Financing 343
12.1 Introduction 343
12.2 Types of Securities Financing 344
12.3 The Players and Their Motivations 346
12.4 Intermediaries 352
12.5 Agreements and Code of Guidance 354
12.6 Securities Lending Lifecycle 356
12.7 Repurchase Agreement Lifecycle 370
12.8 Collateral and Margin 379
12.9 Default and Close-Out Provisions 384
12.10 Central Counterparty (CCP) Services 386
12.11 Summary 389
Appendix 12.1: Credit Ratings - Long Term 390
Appendix 12.2: Delivery by Value (DBV) Class List 391
Appendix 12.3: Technology Vendors 392
PART FOUR
CHAPTER 13 Accounting for Securities 395
13.1 Introduction 395
13.2 The Accounting Equation 397
13.3 The Accounting Lifecycle for Securities 400
13.4 Gains and Losses 405
13.5 The Accounting Lifecycle for Derivatives 411
13.6 Summary 416
Appendix 13.1: Closing Prices for Singapore Equities (SGX) 416
CHAPTER 14 Reconciliation 417
14.1 Introduction 417
14.2 Importance of Reconciliation 418
14.3 Types of Reconciliation 421
14.4 Automation of Reconciliations 427
14.5 Summary 428
About the Author 429
Index 431