Securities Operations A Guide To Trade And Position Management

[Janae Chebret]

Theonly comprehensive account of operational risk in securities settlements

Securities Operations focuses on the settlement aspects of a securities transaction. As financial analysts make a greater effort toward quantifying and managing operational risk, they are paying more attention to securities transactions in general and to the settlement phase in particular. While describing the practical issues, this book enumerates the different "back office" related risks potentially encountered throughout the settlement. Simmons also covers more advanced topics such as derivatives, trade compensation, internal allocation of funding costs, and operational performance measurement.

Michael Simmons (London, UK) is currently Head of Business Consultancy at Wilco International, a major software systems provider to the financial markets.

Over the years, financial professionals around the world have looked to the Wiley Finance series and its wide array of bestselling books for the knowledge, insights, and techniques that are essential to success in financial markets. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to respond. With critically acclaimed books by leading thinkers on value investing, risk management, asset allocation, and many other critical subjects, the Wiley Finance series provides the financial community with information they want. Written to provide professionals and individuals with the most current thinking from the best minds in the industry, it is no wonder that the Wiley Finance series is the first and last stop for financial professionals looking to increase their financial expertise.

Beginning June 9, 2023, candidates will need an approved accommodation to schedule an online appointment for an NFA or FINRA exam (other than the SIE). Online appointments scheduled to be taken after Sept. 9, 2023, will be canceled if the candidate does not have an approved accommodation.

The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an operations professional, including customer onboarding; financial control; receipt and delivery of securities and funds and account transfers; and collection, maintenance, reinvestment and disbursements of funds.

Candidates must pass the Securities Industry Essentials (SIE) exam and the Series 99 exam to obtain the Operations Professional registration. For more information about the SIE and Series 99 exams, refer to FINRA Rule 1210 and FINRA Rule 1220(b)(3).

The Series 99 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the two major job functions of an operations professional. The table below lists the allocation of exam items for each major job function.

Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA representative-level qualification exams. For more information on registration requirements, refer to FINRA Rule 1210.

Please note that if you qualify for the exception based on having held an eligible registration within the two years immediately prior to registering as an Operations Professional, you must first reactivate your eligible registration prior to requesting Operations Professional (Series 99) registration. Additionally, the exception does not apply to persons whose eligible registrations are revoked pursuant to FINRA Rules 8310 (Sanctions for Violation of the Rules) or 8320 (Payment of Fines, Other Monetary Sanctions, or Costs; Summary Action for Failure to Pay), suspended or otherwise deemed inactive.

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With a broad array of integrated solutions that span investment strategies, fund structures, asset types and geographies, J.P. Morgan Securities Services delivers the expertise, scale and capabilities to help our clients protect and grow their assets, optimize efficiency and maximize opportunities in diverse, global markets.

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Access services across the ETF value chain, including liquidity, index creation and securities services, delivered through one global platform. Our ETF platform connects managers, capital market specialists, authorized participants and operations for an efficient, transparent and scalable experience. We offer a full suite of services across baskets, orders and post-trade to enable faster time-to-market and efficient operations. Our team of experts helps clients identify best practices for product structure, fund launch and establishing operations and technology.

Fund Accounting

Achieve your target operating model with our leading investment accounting platform built to support a broad array of industry segments, fund structures and asset types. Leverage the power of a full-service investment bank to access the latest derivative capabilities and oversight tools to drive efficiency in your business. Our integrated accounting platform handles all asset classes and is supported by a global operating model with continuous workflow. Through our best-in-class technology, clients benefit from:

Transfer Agency

Simplify your operating model and drive efficiency with a service that is fully integrated with our platforms across fund accounting, custody, treasury and payments, FX and hedging. Leverage J.P. Morgan's expertise in supporting EU regulated funds, with extensive coverage for the largest platforms and commercial distributors. Our end-to-end platform enables deal processing at scale and rich online reporting capability, integrated with KYC/AML processes compliant with the latest regulations, efficient onboarding and transitions, automated retrocession calculations and online investor dealing. Our team of experts across Ireland and Luxembourg, with time-zone support from Asia, serve investors globally.

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Manage your collateral to address margin requirements, financing, performance, liquidity and regulatory needs. Manage your collateral effectively using innovative solutions for both collateral providers and receivers. Banks, broker-dealers, asset managers, insurers, central banks and pension funds can optimize their portfolios with sophisticated analytics and eligibility tools, bilaterally or via tri-party. Global capabilities, delivered locally, help institutions manage collateral around the world or onshore to meet increasingly complex financing, liquidity and regulatory requirements.

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This document is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. Any market prices, data or other information contained herein are not warranted as to completeness or accuracy and are subject to change without notice. Nothing in this document should be construed as legal, regulatory, tax, accounting, investment or other advice. The recipient must make an independent assessment of any legal, credit, tax, regulatory and accounting issues and determine with its own professional advisors any suitability or appropriateness implications and consequences of any transaction in the context of its particular circumstances.

JPMorgan Chase & Co. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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MX.3 centralizes the processing and reporting of trades, positions, margin calls and settlements across all instrument types, trading sources and settlement routes. The platform empowers leading teams to streamline standard and bespoke processes across all product types in a 24/7 trading world.

Operations teams are continuously adapting to changing regulations and market infrastructure evolution while supporting ever-growing transaction volumes across financial products. Simultaneously, achieving cost savings and control of operational risks is a conundrum. MX.3 simplifies post-trade with all products, from high-volume FX cash to complex over-the-counter derivatives, managed on a robust, single platform.

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