Securities Operations: A Guide to Trade and Position Management

by Michael Simmons

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.

Genres: Business, Finance

496 pages, Hardcover

First published March 22, 2002

About the author

Librarian note: there are several authors on Goodreads with this name. This is Michael^Simmons, the default profile.

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Reviews

[Raj Makaram · Rating 5 out of 5]

It has been sometime since I wrote a review... may be last was way back in 1999. Definitely this book was one I could not afford to miss sharing my thoughts...having spent about 3 years in the securities operations space, this book helped me to get a bigger picture. I would definitely recommend this to all professionals of my kind (IT) who are even remotely connected with Capital markets. This is a book which is market neutral... I mean this does not talk about the market structure and other geographic specific nuances. This is a book which explains the concepts of how a typical securities operations work

I would say the 29 chapters in this book is organized into three main components - (1)fundamental of securities, (2)trade life cycle and (3)supporting functions of a securities operations. The first seven chapter sets the context in terms of various lexicons of the securities industry such as bringing securities to market place, various types of securities, how is a securities trading organization(STO) organized, figuration, etc. To me the next section which is the trade life cycle was very rewarding. The author has done a great job in terms of explaining the various steps a trade goes through. The book is organized well; the language is easy to comprehend with lots of examples.

Trade life cycle covers starting from trade capture until settlement is reflected internal to an STO...this information are spread over 11 chapters.... I would suggest people who have basics on securities market should straight away jump to the chapters which deal with trade life cycle

Finally the third section which covers supporting activities in a typical STO such as - funding, Sec lending, custodial accounts, corporate action, Recon and accounting. I definitely have a greater appreciation to the chapters that cover custodial accounts and corporate actions….as it sets the basic context in place. I am definitely looking forward to reading the book from the author (Michael Simmons) on corporate action.

For those of you in India the current book under review as well as the book on corporate action is available by Wiley India...obviously for a lesser cost :-)

To end I definitely recommend this book without any hesitations ... take your initiation to Securities market through this book.

Happy Reading!

[Tayo Olajide · Rating 4 out of 5]

This book presents information that demonstrates an understanding of trades and trade positions systems design and management for profit. It presents a lot of critical information on the common terminologies that are instrumental in developing and maintaining a trading management system.

[Łukasz Słonina · Rating 5 out of 5]

Great book, still valid 20 years after writing. Wish I had read it when working on SFTR regulation implementation. Very detailed, but all areas described clearly and understandable for everyone with minimal knowledge of equities and bonds.

[Monica · Rating 3 out of 5]

This book was at a friend's house and I only perused the pages. It was informative, but dry - would you expect anything else?
It's outdated regarding company names of who does what, but good information.

[Sa Imm]

good

[Sateesh · Rating 4 out of 5]

Good