CISI introduction to securities and investment
the financial service sector is a major
contributor to the economies. The activ-
what is the financial service sector ities of the financial service firms pro-
vide considerable employment as well as
overseas earnings for the economy.
it provides the link between organisa-
tions needing capital eg( a company
what is another role the financial ser-
seeking to expand) and those with capi-
vices sector play
tal available for investing ( eg those sav-
ing for retirement via pension fund)
Due to the UK leaving the EU, UK ex-
why have UK exports fallen significantly ports of the financial services to the EU
since 2018 fell by 19%. But exports of the financial
serivces to non-EU countries grew by 4%
The Global Financial Centres Index is
produced by China Development Insti-
tute (CDI) in Shenzen in the conjunction
what is the global financial centre index
with z/Yen Partners in London and evalu-
ates the rankings and future competitive-
ness of major financial centres
- business environment
-human capital
what are the 5 areas of competitiveness
- infrastructure
in major financial centres
-financial sector development
-reputation
what is the wholesale sector sometimes the professional sector or institutional
referred to as sector
- equity markets
- bond markets
- foreign exchange
what are the activities that make up the - derivatives
wholesale sector - insurance markets
- fund management
- investment banking
- custodian banking
what are equity markets the trading of quoted or listed shares
what are bond markets
, CISI introduction to securities and investment
The trading of government, supranation-
al or corporate debt. Bond markets al-
low governments and companies to raise
loans or debt finance directly from in-
vestors and facilitate the subsequent
secondary trading of the debt securities
created
the trading of currencies between coun-
what is foreign exchange
tries
the trading of options, swaps, futures and
what are derivatives
forwards
major corporate insurance ( includ-
ing professional indemnity), reinsurance
what are insurance markets
captive insurance and risk-sharing insur-
ance
Managing the investment portfolios of
What is fund management? collective investment schemes, pension
funds and insurance funds.
banking services tailored to organisa-
tions, eg undertaking mergers and ac-
what is investment management
quisitions (M&A) equity trading, fixed in-
come trading and private equity
Provision of services to asset managers
involving the safekeeping of assets; the
what is custodian banking administration of the underlying invest-
ments; settlement; corporate actions and
other specialised activities
what are retail sectors also referred to as services provided to personal customers
- retail banking
- insurance
what makes up the retail sector - pensions
- investment services
- financial planning and financial advice
the traditional range of current accounts,
what is retail banking deposit accounts, lending and credit
cards
, CISI introduction to securities and investment
the provision of a range of life assurance
What is insurance? and protection solutions for areas such
as mortgage protection
the provision of an investment account
specifically designed to capture savings
what is pensions
during a person's working life and pro-
vide benefits on retirement
a range of investment products and vehi-
cles ranging from execution-only stock-
what is investment services
broking to full wealth management ser-
vices and private banking
what is financial planning and financial Helping individuals to understand and
advice plan for their financial future
Equity markets are the markets in which
What are equity markets?
equity instruments (shares) are traded
how much was the global market capital-
over us$102 trillion
isation towards the end of 2022
the total value of shares quoted on the
what is global capitalisation
worlds stock exchanges
MTFs are systems that bring together
multiple parties that are interested in
buying and selling financial instruments
what are multilateral trading facilities
including shares, bonds and derivatives.
(MTFs)
these systems are also known as cross-
ing networks or matching engines that
are operated by an investments firm
are bond markets larger in size and value yes, even though it is less known than
of trading than equity markets equity markets.
no because most traders tend to be very
is the volume of bond trading higher than
large when compared to equity market
equity markets
trades
how much do corporate bonds make up 32%
what is the foreign exchange (FX) mar-
kets
, CISI introduction to securities and investment
are global and facilitate the trading of
currencies as well as the determination
of exchange rates. ie the price of one cur-
rency in terms of another. FX markets are
the largest of all financial markets with a
daily turnover of approximately US$7.5
trillion cubed a volume 30 times greater
than the daily global GDP
it is determined by the supply and de-
How is a rate of one currency determined
mand of acountry
where brokers/ dealers negotiate directly
what is an over the counter (OTC) market
with one another
when does the bank of international set-
tlements (BIS) release figures on the every three years
composition of the FX market
trade a range of complex products based
on underlying instruments that include
What are derivative markets
currencies, indices, interest rates, equi-
ties, commodities and credit risks
what are the two most known derivatives futures and options
a marketplace that brings together a
range of insurers, both individuals and
What is Lloyd's of London? companies, each of whom accepts insur-
ance risk as a member of one or more
underwriting syndicates
a small number of individual members
that are liable to the full extent of their
what are names
private wealth to meet their insurance
commitments
provide services such as taking deposits
what are retail banks from and lending funds to retail cus-
tomers
what do larger retail banks provide investments, pensions and insurance
what are saving institutions/ building so- specialise in offering savings products to
cieties retail customers
What is legislation/demutalisation?
the financial service sector is a major
contributor to the economies. The activ-
what is the financial service sector ities of the financial service firms pro-
vide considerable employment as well as
overseas earnings for the economy.
it provides the link between organisa-
tions needing capital eg( a company
what is another role the financial ser-
seeking to expand) and those with capi-
vices sector play
tal available for investing ( eg those sav-
ing for retirement via pension fund)
Due to the UK leaving the EU, UK ex-
why have UK exports fallen significantly ports of the financial services to the EU
since 2018 fell by 19%. But exports of the financial
serivces to non-EU countries grew by 4%
The Global Financial Centres Index is
produced by China Development Insti-
tute (CDI) in Shenzen in the conjunction
what is the global financial centre index
with z/Yen Partners in London and evalu-
ates the rankings and future competitive-
ness of major financial centres
- business environment
-human capital
what are the 5 areas of competitiveness
- infrastructure
in major financial centres
-financial sector development
-reputation
what is the wholesale sector sometimes the professional sector or institutional
referred to as sector
- equity markets
- bond markets
- foreign exchange
what are the activities that make up the - derivatives
wholesale sector - insurance markets
- fund management
- investment banking
- custodian banking
what are equity markets the trading of quoted or listed shares
what are bond markets
, CISI introduction to securities and investment
The trading of government, supranation-
al or corporate debt. Bond markets al-
low governments and companies to raise
loans or debt finance directly from in-
vestors and facilitate the subsequent
secondary trading of the debt securities
created
the trading of currencies between coun-
what is foreign exchange
tries
the trading of options, swaps, futures and
what are derivatives
forwards
major corporate insurance ( includ-
ing professional indemnity), reinsurance
what are insurance markets
captive insurance and risk-sharing insur-
ance
Managing the investment portfolios of
What is fund management? collective investment schemes, pension
funds and insurance funds.
banking services tailored to organisa-
tions, eg undertaking mergers and ac-
what is investment management
quisitions (M&A) equity trading, fixed in-
come trading and private equity
Provision of services to asset managers
involving the safekeeping of assets; the
what is custodian banking administration of the underlying invest-
ments; settlement; corporate actions and
other specialised activities
what are retail sectors also referred to as services provided to personal customers
- retail banking
- insurance
what makes up the retail sector - pensions
- investment services
- financial planning and financial advice
the traditional range of current accounts,
what is retail banking deposit accounts, lending and credit
cards
, CISI introduction to securities and investment
the provision of a range of life assurance
What is insurance? and protection solutions for areas such
as mortgage protection
the provision of an investment account
specifically designed to capture savings
what is pensions
during a person's working life and pro-
vide benefits on retirement
a range of investment products and vehi-
cles ranging from execution-only stock-
what is investment services
broking to full wealth management ser-
vices and private banking
what is financial planning and financial Helping individuals to understand and
advice plan for their financial future
Equity markets are the markets in which
What are equity markets?
equity instruments (shares) are traded
how much was the global market capital-
over us$102 trillion
isation towards the end of 2022
the total value of shares quoted on the
what is global capitalisation
worlds stock exchanges
MTFs are systems that bring together
multiple parties that are interested in
buying and selling financial instruments
what are multilateral trading facilities
including shares, bonds and derivatives.
(MTFs)
these systems are also known as cross-
ing networks or matching engines that
are operated by an investments firm
are bond markets larger in size and value yes, even though it is less known than
of trading than equity markets equity markets.
no because most traders tend to be very
is the volume of bond trading higher than
large when compared to equity market
equity markets
trades
how much do corporate bonds make up 32%
what is the foreign exchange (FX) mar-
kets
, CISI introduction to securities and investment
are global and facilitate the trading of
currencies as well as the determination
of exchange rates. ie the price of one cur-
rency in terms of another. FX markets are
the largest of all financial markets with a
daily turnover of approximately US$7.5
trillion cubed a volume 30 times greater
than the daily global GDP
it is determined by the supply and de-
How is a rate of one currency determined
mand of acountry
where brokers/ dealers negotiate directly
what is an over the counter (OTC) market
with one another
when does the bank of international set-
tlements (BIS) release figures on the every three years
composition of the FX market
trade a range of complex products based
on underlying instruments that include
What are derivative markets
currencies, indices, interest rates, equi-
ties, commodities and credit risks
what are the two most known derivatives futures and options
a marketplace that brings together a
range of insurers, both individuals and
What is Lloyd's of London? companies, each of whom accepts insur-
ance risk as a member of one or more
underwriting syndicates
a small number of individual members
that are liable to the full extent of their
what are names
private wealth to meet their insurance
commitments
provide services such as taking deposits
what are retail banks from and lending funds to retail cus-
tomers
what do larger retail banks provide investments, pensions and insurance
what are saving institutions/ building so- specialise in offering savings products to
cieties retail customers
What is legislation/demutalisation?
