| CDS Clearing and Depository Services Inc. (CDS), Canada's national securities depository, clearing and settlement organization is now offering a comprehensive set of training courses about the life cycle of a trade and securities operations in the Canadian capital markets.
These courses are targeted to everyone in the securities industry who wants a complete understanding of the processes involved in making an issue eligible in the depository from trading, clearing and settlement, to asset servicing.
Individuals who are directly involved in front office, middle office or back office activities will obtain a full understanding of what happens before and after they have completed their part of the processes.
Staff at investment firms, in ancillary departments such as audit, information technology and client service, also will benefit from these courses as will other parties in the securities industry, such as trading system operators, regulators, transfer agents and service bureaus.
These in-class instructor-led courses are organized into modules, comprised of lectures and a student workbook. Exercises are used throughout to reinforce the material presented and a certificate of completion will be handed out at the end of the course.
Depository Processing in Canada
1 day session
9:00 a.m to 4:30 p.m.
This course provides participants with a comprehensive introduction to the fundamentals of the Canadian securities depository process and explains in detail the role CDS plays in the issuance and holding of securities.
This course will explain the indirect holding system in Canada and will cover the requirements for making securities eligible for deposit in CDS, the deposit and withdrawal process and the roles of key players in the depository process.
After completing the course you will be able to:
- Explain the structure and features of the two securities holding systems used in Canada
- Identify the key players in the Canadian depository process and how they interact with each other
- Explain the origin and role of CDS as the central securities depository in Canada
- Identify how CDS is regulated
- Identify CDS's customers and their rights and responsibilities
- Explain what an International Securities Identification Number (ISIN) is and how it is constructed and used
- Describe the process to make securities eligible in CDS
- Explain how securities are transferred.
Clearing and Settlement Processing in Canada
1 day session
9:00 a.m to 4:30 p.m.
This course provides participants with a comprehensive introduction to the fundamentals of the securities clearing and settlement process in Canada.
This course covers post-trade activities, ranging from how trades are entered into the clearing system to how trades are settled and matched and why trades fail, in an easy-to-follow format. Risk controls, including buy-ins, and how they are applied within the clearing and settlement process in Canada also will be briefly covered.
After completing the course you wil be able to:
- Describe the securities clearing and settlement process in Canada
- Identify the key players in the clearing and settlement process
- Explain the role of CDS as the central clearing counterparty in Canada and the role the Bank of Canada plays in settlements
- Describe the full life cycle of the clearing and settlement process from trade entry, through trade clearing, to settlement (including the difference between overnight and intraday settlement, Trade for Trade (TFT), and Continuous Net Settlement (CNS)) and the day-end payment exchange process
- Explain why trades may not settle on T+3, how they are managed, and the controls to mitigate settlement risk
- Identify the regulatory environment applicable to clearing and settlement
- Describe the role of the settlements team in managing operational risk issues.
International Securities Transactions Processing in Canada
1 day session
9:00 a.m to 4:30 p.m.
A unique relationship exists in North America between Canada and the U.S., not just in trade but also in the capital markets. The need of Canadian and U.S. fi rms to effi ciently buy and sell securities in each others’ marketplace has led to an extensive clearing and settlement relationship between CDS and The Depository Trust & Clearing Corporation (DTCC).
This course will provide participants with a clear understanding of the cross-border securities trading and settlement relationships between Canadian and U.S. trading counterparties. You also will learn how CDS, as a sponsor of Canadian firms, plays a pivotal role in facilitating their access to foreign markets.
After completing the course you will be able to:
- Describe how Canadian and U.S. fi rms trade, clear and settle securities transactions in each others’ marketplace
- Explain the role that CDS plays as a sponsor of Canadian firms in their relationship with DTCC and U.S. regulatory bodies
- Identify the key players in the cross-border trading and settlement process
- Describe the full life cycle of a cross-border trade through the Automated Confirmation Transaction (ACT) system (Trade Reporting Facility (TRF)/Qualifi ed Special Representatives (QSR)) to settlement at DTCC
- Explain why trades may not settle on T+3, how they are managed, and the controls to mitigate risk
- Describe the links CDS has with other foreign markets.
Corporate Actions Processing in Canada
1 day session
9:00 a.m to 4:30 p.m.
Corporate actions have been a major source of risk in the securities industry and have become increasingly complex for organizations to understand and process. Adding to this complexity are events that extend beyond the Canadian border. As the central securities depository in Canada, CDS is recognized as an expert in the collection and distribution of entitlements for Canadian securities.
This course will provide participants with a comprehensive understanding of common corporate action events and how they are processed. Participants also will be shown how to calculate different types of corporate action distributions, how to identify depository, clearing and settlement transactions that affect unreconciled payments and distributions and how to deal with domestic and cross-border withholding tax implications affecting an event.
After completing the course you will be able to:
- Describe the purpose and importance of a corporate action in the securities capital markets and differentiate between event types (both voluntary and mandatory)
- Identify how corporate action information and instruction fl ows are carried out and who the key players are
- Describe each part of the corporate action life cycle
- Describe how each event is completed end to end, from company to investor
- Calculate and process a typical event
- Identify key risk areas in the processing of corporate action events and how CDS processed these events
- Explain withholding tax implications and tax reporting requirements related to entitlements
- Converse with other industry professionals and regulators on corporate action events.
Financial Risk Management in CDS's Settlement Services
1 day session
9:00 a.m to 4:30 p.m.
This course provides participants with a comprehensive introduction to the CDS Financial Risk Model. The course outlines the financial risk model and the risk management principles and processes embedded in CDS’s clearing, settlement and depository services.
The information presented will provide participants with a detailed understanding of how the risk management principles are implemented in settlement services and will describe the role that category credit rings, participant funds and collateral pools play in ensuring that CDS is able to complete the dayend payment process and how CDS would deal with a CDS member default.
After completing the course you will be able to:
- Identify the settlement risks inherent in the clearing and settlement of securities
- Describe the different settlement methods and the related risks associated with each
- Describe how the risk edits embedded in the settlement system mitigate the potential loss associated with clearing and settlement
- Identify key risks and controls associated with credit/payment processes at CDS
- Identify the market/replacement cost risk controls within CDS’s Central Counterparty (CCP) services
- Identify the liquidity risk controls that limit the potential loss in the settlement services.
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