Clearing and settlement are critical yet often overlooked components of financial markets, ensuring the smooth transfer of assets and funds between counterparties. As markets grow more complex, the risks associated with post-trade processes - such as counterparty defaults, settlement failures, and liquidity shortfalls - have become increasingly significant.
This full-day workshop provides a comprehensive walkthrough of clearing and settlement mechanisms, the role of Central Counterparties (CCPs), and the management of counterparty risk. Participants will gain a detailed understanding of the trade lifecycle, from execution to final settlement, across various asset classes, including equities, fixed income, derivatives, and FX.
The workshop will also address key regulatory imperatives, such as G20 reforms, EMIR, Dodd-Frank, and the shift toward T+1 settlement.
The session also covers advanced margining methodologies, such as SPAN and VaR-based models, and emerging trends like blockchain and AI in post-trade processing.
Designed for risk managers, traders, compliance officers, and clearing professionals, this workshop equips participants with the knowledge to navigate today’s evolving clearing and settlement landscape effectively.
What will you learn
By the end of this course you will be able to:
- Gain a comprehensive understanding of the Clearing & Settlement Process - Gain clarity on the trade lifecycle, including pre-trade, execution, post-trade clearing, collateral management, and settlement across asset classes (equities, fixed income, derivatives, FX, and repos).
- Assess Settlement Risks & Mitigation Strategies - Identify key risks (principal, replacement, liquidity, Herstatt risk) and learn mitigation techniques such as DvP/PvP, netting, and collateral optimization.
- Understand the Role of CCPs - Go through the key functions of CCPs, their risk management frameworks (default waterfall, stress testing), and their role in reducing systemic risk.
- Apply Margining Methodologies - Compare standard vs. portfolio margining, understand SPAN and VaR-based models, and go through margin calculations via case studies.
- Analyse Regulatory & Technological Trends - Explore the impact of EMIR, Dodd-Frank, Basel III, and G20 regulatory frameworks, alongside innovations like DLT, T+1, and AI in clearing.
This full-day workshop provides a comprehensive walkthrough of clearing and settlement mechanisms, the role of Central Counterparties (CCPs), and the management of counterparty risk. Participants will gain a detailed understanding of the trade lifecycle, from execution to final settlement, across various asset classes, including equities, fixed income, derivatives, and FX.
The workshop will also address key regulatory imperatives, such as G20 reforms, EMIR, Dodd-Frank, and the shift toward T+1 settlement.
The session also covers advanced margining methodologies, such as SPAN and VaR-based models, and emerging trends like blockchain and AI in post-trade processing.
Designed for risk managers, traders, compliance officers, and clearing professionals, this workshop equips participants with the knowledge to navigate today’s evolving clearing and settlement landscape effectively.
What will you learn
By the end of this course you will be able to:
- Gain a comprehensive understanding of the Clearing & Settlement Process - Gain clarity on the trade lifecycle, including pre-trade, execution, post-trade clearing, collateral management, and settlement across asset classes (equities, fixed income, derivatives, FX, and repos).
- Assess Settlement Risks & Mitigation Strategies - Identify key risks (principal, replacement, liquidity, Herstatt risk) and learn mitigation techniques such as DvP/PvP, netting, and collateral optimization.
- Understand the Role of CCPs - Go through the key functions of CCPs, their risk management frameworks (default waterfall, stress testing), and their role in reducing systemic risk.
- Apply Margining Methodologies - Compare standard vs. portfolio margining, understand SPAN and VaR-based models, and go through margin calculations via case studies.
- Analyse Regulatory & Technological Trends - Explore the impact of EMIR, Dodd-Frank, Basel III, and G20 regulatory frameworks, alongside innovations like DLT, T+1, and AI in clearing.
Course Content
- Comprehensive overview of clearing and settlement process and trade lifecycle
- Asset class specific clearing & settlement flows analysis
- Importance of risk management in post-trade processes
- Key challenges in modern clearing systems
- Roles of Central clearing counterparties (CCPs), Central security depositories (CSD), and clearing members
- Settlement Cycles (T+1, T+2, T+3) and global trends
- Analysis of different settlement risk and failures and mitigation mechanisms
- Central Counterparties (CCPs) and risk management
- Portfolio Margining Methodologies including SPAN and VaR
- Impact of key regulations: EMIR, Dodd-Frank and Basel III
- Impact of DLT & Blockchain on clearing & settlement
- T+1 & Instant Settlement Trends
- Horizon Scanning - Clearing and settlement with AI and Big Data technologies
- Various Case studies and real life examples
Who Should Attend
Professionals from or involved with:
- Clearing houses
- Prime Brokers and Derivative Clearing Brokers
- Clearing and Settlement
- Custodians
- Counterparty Risk Management
- Back and Middle Office Operations
- Fund Administrators
- Compliance and Risk Management
- Audit
- IT
