Elements and Performance Criteria
- Analyse financial markets products and their characteristics
- Review the relationship between risk and return for financial products
- Compare different types of financial products traded in exchange-traded and over-the-counter (OTC) markets and the variables impacting their pricing
- Assess the capabilities, benefits and risks of different physical and derivative financial products
- Identify risk management strategies to manage the risks inherent in the financial products
- Discuss how and why various financial market products are used by market participants
- Analyse the deal transaction cycle
- Identify categories of trading strategies
- Differentiate the trading processes for exchange-traded and OTC markets
- Outline the steps in the trading, clearing and settlement processes for exchange-traded financial products
- Determine the steps for trading, confirming, settling, reconciling and managing collateral for OTC products
- Identify risks and risk management strategies in transaction processes for financial markets products
- Maintain financial market knowledge
- Assess the impact of technological and regulatory factors on financial products and how they are traded and processed
- Maintain professional competence in market knowledge in accordance with codes of conduct and regulatory and organisational requirements
- Implement processes for maintaining up-to-date knowledge of relevant aspects of financial markets