Capital Markets and Financial Instruments Certificate (CAMFIN)

With the technical expertise of ICMA Luxembourg region, the House of Training organizes a high standard one-week residential training seminar in Luxembourg about capital markets and financial instruments.

The primary objective of this practice-driven seminar is to enable participants to thoroughly deepen their knowledge of the international capital markets, the financial instruments, such as bonds, equities, repos, swaps, options and structured products. Both technical and operational aspects as well as risk considerations and the impacts of regulation on day-to-day activities are covered.

• Self-preparation by e-learning: International Financial Markets
• Self-preparation by e-learning: Financial Mathematics

All of the different training units are held by experts in the respective fields of activity and networking with both trainers and co-participants is considered to be a highly important added-value.

The educational programme has been designed for both front and back-office personnel having a good basic knowledge of the markets, products and financial mathematics; as well as a practical experience of several years (ideally 3 to 6 years) in the banking and financial sector.

The ICMA Financial Markets Foundation Qualification offered in collaboration with ICMA Centre, University of Reading, or equivalent knowledge is a highly recommended prerequisite.

In order to help the course attendants to refresh the required level of fundamental knowledge in financial markets and financial mathematics 2 distinctive e-learning/distance learning programmes are put at their disposal at least 1 month before the start of the actual seminar.
They are required to validate their knowledge by delivering the final test at the end of these training courses.

The actual seminar is divided in 4- or 8-hour training units covering the following subjects:
EL International financial markets

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

Estimated total duration: 20 hours (sessions of 30-40 minutes each)
EL Financial Mathematics

• General financial calculations
• Time value and discount factors
• Term structure of interest rates
• Financial returns
• Statistics
• Variance and covariance, standard deviation, market model
• The variance components of assets in a linear regression model and some performance ratios

Estimated total duration: 8 hours (sessions of 30-40 minutes each)

PRINCIPAL SEMINAR

Applied Mathematics on fixed income products, bonds and futures on bonds (4 hours)

• Pricing of bonds
• ICMA Bond Principles
• Term structure of interest rates
• Identifying and measuring financial risk
• Bond futures and hedging techniques

Practical applications and bond portfolio management (4 hours)

• Return expectations
• Management strategies
• Diversification
• Currency as asset class
• Performance contributors and measurement

Options & Structured products (4 hours)

• Introduction, options, yield curves
• Pricing variables
• 4 basic strategies & their risk and reward
• Exercises – using options in Portfolio Management
• Capital guaranteed structures
• Reverse convertibles
• More exotic structured products
• Pricing and Documentation –
• Beware of the dangers!
• Exercises – understanding real life products

Sustainable Finance ( 4 hours)

• Introduction to Sustainable Finance
• Green Social and Sustainability Bond Trends
• Market Standards
• Taxonomy and Accounting

Repos and swaps (8 hours)

• Repos: Flow chart; Terms of the agreement; Collateral; Margins; Manufactured dividend; Market participants; Repo types; GC & special
• Swaps: Definition & characteristics; Types of swaps; Market share; Currency swaps; CDS; example; IRS characteristics; IRS cash flows; IRS quotation; Curves; Swap pricing mechanics; Constructing the short end; Constructing the long end; Zero curve examples; Curve adjustments; Interpolating the curve; Intermaturity spreads; Bond hedging; Forward starting swaps; Pricer example; Currency interest rate swaps; Beyond plain vanilla swaps

Financial analysis, cross-asset (8 hours)

• Methods, tools and instruments for asset selection
• Bonds and Equities: definitions, different markets, attributes
• Stock market quotation and orders in MiFID regulated markets
• Investment Funds: overview and fund selection methods / criteria
• Relevant websites

Risk Management (4 hours)

• The current market turmoil: origin of the crisis and features
• Choosing a risk management strategy
• The risk management framework and lessons learned during the crisis
• Organisational and operational aspects for the risk management unit
• Market risk, credit risk, operational risk and liquidity risk from the bank’s perspective
• Risk systems and lessons learned during the crisis

Securities clearing, settlement and custody (4 hours)

• Debt instruments; Equities; Entitlements
• Matching; Clearing; Settlement; Custody
• Future Issues

The knowledge acquired in the seminar will be validated through an examination. The examination is based on a MCQ questionnaire of around 80 questions. The required passing rate is 50%. Successful candidates will be granted a certificate.

The CAMFIN Training is exclusively offered in English (delivery and course material content).

The following mandatory procedure must be strictly observed by each participant, with no exception:

• The seminar takes place in residence at Hôtel Mercure Kikuoka Golf & Spa, Canach.
• The participants’ bedrooms are booked from Monday until Friday by the House of Training upon registration, and are included in the price. They are required to check in the first morning of the course.
• A number of wellness facilities (fitness room, swimming pool, sauna…) are at the disposal of the participants for relaxation at the end of the day.

The examination session is held at the Training Centre of the Chamber of Commerce, 7, rue Alcide de Gasperi, Luxembourg.

Registrations and payment for this training are made online.