Integrated treasury functions

• Asset and Liability Management
• Control of dealing activities and risk exposure management
• CRR/SLR maintenance
• Centralised cash management and fund transfer pricing

Treasury Organization and their roles/functions

• Front office
• Mid office
• Back office

Financial market

• Money markets
• Bond markets
• FX markets
• Derivatives market
• Equity markets

Treasury basics

• Time value of money
• Day count conventions and interest computations
• Master agreements
• BR, SGL Forms
• Rate scans
• Voice recordings

Entities in the market and their roles

• Issuers
• Customers
  1. Corporate customers
  2. Bank customers
• Central counter-party
• Brokers
• Markets
• Regulator
• Banks
• Depository/custodian
• Associations like FEDAI/FIMMDA
• Information providers : Reuters, Bloomberg

Overview of treasury processes

• Types of trades
  1. Proprietary trades
  2. Customer trades
• Securities and funds settlement process
  1. Depository settlements
  2. Funds settlements
  3. Failed settlements
  4. Interest and other claims
• Documents used and their importance
  1. Deal ticket
  2. Blotter
  3. Position pad
  4. Confirmation/affirmation
  5. Banker’s receipt
  6. SGL Form

Markets

• Primary markets
• Secondary market
• Third/fourth market
• OTC markets
• Security borrowing and lending

Risk management in treasury

• Understanding and measuring credit risk
  1. Transaction credit risk
  2. Portfolio credit risk
• Understanding and measuring market risk
  1. Interest rate risk
  2. FX risk
  3. Price/equity risk
  4. Commodity risk
• Understanding and measuring liquidity risk

Introduction to treasury asset products and
treasury liability products

• Asset Products / Instruments
  1. Call /Notice Money Lending
  2. Term Money Lending/Inter-bank Deposits
  3. Investment in CDs
  4. Commercial Paper
  5. Inter-bank Participation Certificates
  6. Derivative Usance Promissory Notes/ Bankers’ or Corporate Acceptances
  7. Reverse Repos/ CBLO
  8. SLR Bonds
  9. Non-SLR Bonds(Guaranteed/Non-Guaranteed)
  10. Asset-backed Securities
• Preference Shares
• Equity
• Mutual Funds (Equity/Debt/Balanced)
• Liability Products/Instruments
  1. Call /Notice Money Borrowing
  2. Term Money Borrowing
  3. CD Issues
  4. Inter-bank Participation Certificates
  5. Repos / CBLO
  6. Refinance
  7. Tier II Bonds
  8. Swaps (INR borrowing, forex asset)

Foreign Exchange

• Entities in the market and their roles
• Exchange rate determinants
• Exchange rate arithmetic
• Interbank offered rates
• Types of FX deals
  1. Merchant deals
  2. Interbank deals
  3. Cross currency deals
  4. Cover operations
  5. Proprietary trading
• Major risks in FX
  1. Herstatt risk/settlement risk
  2. Exposure risk
  3. Transaction risk
  4. Translation risk
  5. Economic risk
  6. Trading risk
  7. Counterparty risk
• Foreign exchange risk management
  1. Risk management through limits
  2. CLS bank operations
• FX operations : buy/sell, lend/borrow, swaps
• Remittance facilities
• Nostro/vostro management and reconciliations

Domestic treasury operations

• Investment policy
• Classification and valuation of investments
  1. Held till maturity (HTM)
  2. Available for sale (AFS)
  3. Held for trading (HFT)
• Shifting in categories
• Investment fluctuation/adjustment reserve

Money market products

• Call money, notice money, term money
• T Bills and T Notes
• Repo and reverse repo
• Liquidity adjustment facility (LAF)
• Collateralised borrowing and lending (CBLO)
• Commercial papers
• Certificates of deposit
• Derivative usance promissory note (DUPN)
• Bankers acceptance/corporate acceptance

Domestic treasury (Money Bond, Equity and
Mutual Fund Markets)

Domestic treasury products including SLR and Non SLR securities

Bond market products

• Bond mathematics
  1. Current yield
  2. Yield to maturity
  3. Yield curve
  4. Duration
  5. Value at Risk (VaR)
• Risks in bond markets
• Bond ratings – Internal and external
• Risk management through limits
  1. Duration based limits
  2. Maturity based limits
  3. Ratings based limits
  4. Issuer based limits
  5. Debt market products
• Types of bonds
  1. How bond markets work
  2. Bond valuation and bond yields
• Trading in bond markets
  1. Issuers in the primary markets
  2. Credit rating and credit rating agencies
  3. Players in the secondary markets

Forward and futures contracts

• Trading on margin
• Relationship between cash and future prices
• Hedging strategies
• Trading strategies
• Off-setting contracts

Derivatives Market

• What are derivatives
• Forward and futures

Swaps transactions

• Interest rate swaps/Forward Rate Agreements (FRAs)
• FX swaps and currency swaps
• Equity swaps

Forward and futures contracts

• Trading on margin
• Relationship between cash and future prices
• Hedging strategies
• Trading strategies
• Off-setting contracts

Options and swaps

• Options contracts
• Pricing an option
• The Greeks
• Trading strategies for options

Managing risk and trading

Regulatory reporting

• Reporting to the market regulator/s

Integration of treasuries

• Opportunities in integration of treasuries
• Structuring integrated treasury deals

SWIFT operations

• What is SWIFT
• How SWIFT operates
• Important SWIFT message types