Capital Markets Back-Office Certification Programme: CAMBOC Certificate

Mastering Securities Back-Office Operations

In cooperation with the House of Training Quality Circle Capital Markets and ICMA Luxembourg (International Capital Market Association).

Objectives

CAMBOC is a comprehensive programme that covers many aspects of securities back-office operations.

The main objective of CAMBOC is to provide participants with a good understanding of the diverse activities that are carried out in a securities back office, including settlement, custody, treasury, securities financing, collateral management, tax processing and payments. The programme also includes a section on managing risk in the back office.

Methodology

The programme combines 2 parts:

1. An E-learning course “International Financial Markets” (maximum duration: 12 hours) with a final non-eliminatory test.

Participants are required to take this course and pass the test with a minimum recommended score of 60% before the beginning of the second part.

2. An instructor-led training (ILT) in Luxembourg. The ILT part of the programme is taught by industry experts, who effectively combine theory with practical examples, exercises and case studies.

The blended methodology used in CAMBOC is based on an optimal combination of theory and practice. Theoretical aspects are based on the latest market standards, while examples, case studies and exercises are used to present and reinforce the practical application of the material.

Target group

The level of this course is intermediate to high. It focuses on improving the efficiency of back-office staff in banks and other financial institutions by covering different aspects of securities and cash operations in detail. Participants should have a minimum of 3 years experience in back-office operations or a similar area.

A good level of Engish is required.

Knowledge assessment

Part 1: E-learning non-eliminatory test: prerequisite for the participation in the Luxembourg course.

Part 2 in Luxembourg: Participants have their newly acquired knowledge validated through a group presentation and a written exam.
Participants who succeed the group presentation and the exams will receive a certificate of achievement issued by the House of Training and ICMA, Luxembourg region.

Location & duration

E-learning course: approx. 10 hours
ILT cours in Luxembourg : 7 working days including 3 hours examination
ILT in HoT-ATTF partner countries: divided in 2 parts of 4 days, exam included

Detailed programme

Part 1 - E-Learning:

The specific content of the E-learning course is the following:

Financial Markets
Financial Instruments: Securities
Financial Instruments: Derivatives and Investment Funds
Market Activities
Market Players
Future Trends

Part 2:

Definitions

ISO standards
ISO codes
Classification scheme for financial instruments (ISO 10962: 2015)
Players in financial markets
SWIFT as a back-office standard
Financial markets
Primary market
Secondary market

Overview of the Transaction Chain of Securities Processing

Front office
Pre-trade
Trading
Middle office
Functions of the middle office
Importance of the middle office
Back office

Back-Office Operations

Matching
Trade matching
Pre-settlement matching
ICMA rules
Clearing
Gross clearing
Net clearing
Central counterparties

Settlement

Settlement criteria
Instrument type
Payment method
Currency, multi-currency
Settlement cycle
CSDs vs. ICSDs
Settlement models
Domestic
Cross-border
ICSD internal
Net settlement
Role of central banks in settlement
Target 2 Securities

Custody for equities

Corporate actions
Classification of corporate actions
Initial public offerings (IPOs)
Dividends
Annual general meetings/extraordinary general meetings (AGMs/EGMs), proxy voting
Splits/reverse splits
Exchanges
Capital increases
Mergers, acquisitions, de-mergers
Anti-takeover defences
Tenders, Dutch auctions
Legal/regulatory issues regarding equities

Custody for debt instruments

Interest payments
Conversions
Restructuring
Redemptions, early/partial redemptions

Tax processing for securities

Withholding tax
Capital gains tax
Other types of taxes
Tax reclamation

Custodian fees

Transaction fees
Custody fees
Other types of fees

Treasury and Cash Management

Treasury
Placements, borrowing
Foreign exchange
Hedging, derivatives
Reconciliation
Cash correspondents
Payments
Payment systems
Market practice

Securities Financing

Securities lending and borrowing
Repurchase agreements ("Repos")
Sell/buybacks

Collateral Management

Uses of collateral
Managing different types of collateral
Haircuts and margins
Marking to market
Legal/regulatory issues

Fund Custody

Functions of a fund custodian/depositary
Responsibilities of a fund custodian/depositary
Variations for standard ("UCITS") and alternative funds

Managing Risk in the Back Office

Types of risk in financial services
Basics of risk management
Risk in the back office
Counterparty/settlement risk
Operational risk
Processes
People
Systems
External events

Regulatory Issues in the Back Office

International standards
European regulations
Prevention of money laundering and terrorist financing in the back office

Technology in the Back Office

Case Studies and Group Projects

Day 6 of the course will be dedicated to running simulations and analysing case studies involving failed transactions, fraud and human errors. The different cases will be analysed by groups of course participants, who will present their findings to the other participants and to a jury of experts. An evaluation of the quality of the presentations will be included in the overall score of each participant.
Examples of the case studies to be analysed include:
Settlement failures
Missed deadlines on corporate actions
Wrong information received
Mispriced securities
Fraud in the back office
Money laundering through the use of securities

Review and Exam

Review of the entire programme
Exam

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Programme

Latest event photo gallery

From 04/02 to 08/02/2019
Seminar: Certification Programme Compliance Foundation Level
Where: Luxembourg

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Testimonial

Assel Zkumasheva - Kazakhstan
ISC Halyk Bank

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Assets and Liability Management
2018-11-28 / Almaty

Very informative seminar, which includes all important themes in Risk Management. Very good slides. Excellent explanation of information to understand examples.

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