Course Objectives

A well-trained and efficiently organized Treasury Operations Department is essential to complete every transaction. The Operations Department provides a vital service to the Front-Office by ensuring that all funds flow in a timely and correct manner and that all the necessary documentation is completed.

Taking into consideration the wider job function of the Operations Staff, this examination has been designed to provide a benchmark for competency in all aspects of the operations and settlement processes. It aims to test candidates’ knowledge of the underlying instruments involved in the international financial markets, the processes for efficient settlements and related basic financial calculations. Candidates should also be able to demonstrate appreciation of the scope, importance and the role of the Operations Department, particularly in ensuring an autonomous service to the Front-Office.

Back to Top

Overall financial market and front to end treasury view
To describe the roles of each participant within the financial market and to provide an understanding of how Treasury Trading and Sales, Middle-Office and Operations have to be structured in the risk management context. To give an understanding of how the whole transaction process management can be optimized as well as to explain the importance of providing a quality, customer-orientated service to both internal and external clients.

Deal capture, trade entry and confirmations
To explain the payment and confirmation process that follows deal capture and trade entry; list the problems that can arise if mistakes are made; describe how different clearing and payment systems can impact on risk; show an understanding of the correct source of trade information.

Settlement, netting and clearing
To explain the importance of the different settlement and payment systems as well as the use and handling of the correspondent network and accounts.

Reconciliations and investigations
To explain the methodology used to match at least two different records, using the same information to identify and investigate differences and taking corrective action when necessary. To explain the way how to proceed to settle outstanding items.

Treasury systems and data management
To explain the essentials of a treasury system, the data management for treasury operations as well as the basic accounting of treasury operations.

Risk management, controls, compliance, documentation
To explain the importance of having strict procedures and controls in place to ensure that no unauthorized or incorrect payments are made and to protect the business from related risks. To describe the purpose of documentation in settling financial transactions.

Foreign exchange
To describe the characteristics of foreign exchange instruments and specific responsibilities and settlement processes associated with them.

Money market
To explain the characteristics of the major money market instruments, specific responsibilities and settlement processes associated.

Derivatives
To explain the specific features of exchange-traded and Over The Counter (OTC) derivative markets as well as the characteristics of optional and non-optional derivatives, including the specific responsibilities and processes associated with them.

Short-term bonds and notes
To explain the characteristics of short-term debt instruments, notes and bonds as well as the specific responsibilities and processes associated with them.

Back to Top