Michael Simmons 
Securities Operations 
A Guide to Trade and Position Management

The only 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.

Table of Content

Essential Trading and Settlement Concepts.

The Securities Marketplace.

Bringing Securities to the Securities Marketplace.

Structure of a Securities Trading Organisation.

Transaction Types.

Security Forms.

Security Types

Trade Cash Value Calculation

Static Data

The Trade Lifecycle and Straight Through Processing

Trade Execution and Capture.

Trade Enrichment.

Trade Validation.

Trade Confirmation.

Trade Agreement

Transaction Reporting.

Settlement Instructions.

The Role of the Custodian

Pre-Value Date Settlement Instruction Statuses

Settlement Failure

Trade Settlement

Reflecting Trade Settlement Internally

Position and Trade Related Operations

Funding.

Securities Lending & Borrowing.

Safe Custody

Corporate Actions

Reconciliation.

Accounting

Objectives and Initiatives

About the author

MICHAEL SIMMONS has spent the majority of his working life within
the operational areas of stockbroking and international investment
banking firms, most notably with the S.G. Warburg group in London.
Having gained a detailed understanding of various back office tasks
through many years of hands-on experience, he assumed managerial
responsibility for a number of operational areas.

In recent years, Michael has worked for Wilco International in
London (part of the ADP group of companies, headquartered in the
U.S., suppliers of software systems to the global financial
community), where he heads up a team of securities industry
specialists. Michael’s area of expertise includes the analysis of
the business needs of companies operating in various capacities
within the securities industry and in different geographical
locations. In addition, he has created and runs training courses on
the workings of the securities industry and associated operational
aspects to audiences around the world.