Cash Equities

Summary

Course Objective

This one-day course enables delegates to gain a comprehensive understanding of clearing securities (fungible, negotiable financial instruments that represent some type of financial value).

Body

Intended Audience

This course is recommended as optional training for new and existing Clearing Members of LCH SA.

Prior Knowledge Required

This course assumes a good understanding of equities and the role and function of LCH SA.

Content

  • Trade & Settlement Process
  • Buy-in Process
  • Corporate Events Process

 

Training Programme

Date: This training is arranged upon request
Location:

LCH SA
Le Centorial
18, Rue du Quatre Septembre
75002 Paris
France

LCH Ltd Training Facility
Aldgate House
33 Aldgate High Street
London
EC3N 1EA
United Kingdom

This training can also be arranged by vision conference or conference call.

09:30pm Registration and Coffee
09:45pm Welcome and Introduction
10am Trade & Settlement Process

  • Client account structure

    • Participant services 
    • Segregation possibilities
    • Accounts architecture
  • Trade Management
    • Referential services
    • Trade posting Functions
    • Trade netting process
  • Settlement Management
    • Position netting process (CNS&SDN)
    • Settlement instructions specificities
    • Fails management

Buy-in Process

  • LCH Buy-in Timeframe & Caracteristics

    • Publication & Market
    • Notifications
    • Delivery timing
  • Buy-in process
    • Delivery process
    • Cash compensation calculation
    • Tender offer process
1pm Lunch
2:30pm Buy-in Specific cases

  • Early buy-in process
  • Partial deliveries on buy-in
  • Buy-in adjustments
3.30pm Corporate Events Process

  • Management and processing of corporate actions

    • Difference between the 2 types of corporate actions (trade + pending or only pending).
    • The 2 different ways of reporting (trade legs files and position files)
  • Type of corporate actions
    • Ordinary corporate events (distribution of cash)
    • Mutation/Transformation corporate events (assimilation, merger)
    • Voluntary events based on participation/election choice (rights)
  • Buyer Protection Process on Euronext Notices
    • Reading of Euronext notice
    • Cancellation of outstanding position
    • Liabilities
  • Dividend on US securities
    • Non-standard corporate events
    • Reverse market claim

Appendix

  • All available Reports
  • List of US Securities
  • Reading of SIF/BIF files
  • Specific Case of delisting/KO Warrants
5:30pm Questions and Answers
6pm Close

For further details, please contact the Member Training team:

For EquityClear T: +33 (0) 1 70 37 67 60 SAEquityClearBusinessDev&RM@lch.com

Knowledge Assessment

Once you have attended an LCH SA training course, you may also opt to register for a one and a half hour knowledge assessment, to take place within one month of attending a training session. The knowledge assessments can take place via email, or at our London or Paris offices.