Settlement of Securities Trades
Competency Title:
Settlement of Securities Trades
Competency Type:
Functional
Competency Description
This competency refers to the ability to fulfil the contractual obligations arising from a securities trade in a timely and accurate manner and in adherence to securities clearing and settlement rules, regulations and procedures. The scope includes payment and transfer of the traded securities.
Level 1 - Awareness
Level 1
• Identify the types of trade settlements.
• Recognise the roles and functions of parties involved in the securities trade settlement.
• Identify the relevant rules and regulations for securities trade settlement.
Level 2 - Knowledge
Level 2
• Differentiate the obligations and rights between counterparties of a securities trade.
• Outline the process for payment stipulated in the rules, regulations and procedures.
• Outline the process for transfer of securities stipulated in the rules, regulations and procedures.
Level 3 - Skill
Level 3
• Ascertain the settlement obligations between counterparties to the securities trade.
• Process payment and transfer of securities for settlement according to obligations and/or client's instruction.
• Monitor and reconcile the completion of the settlement and transfer of securities.
Level 4 - Mastery
Level 4
• Review settlement transactions for compliance with rules, regulations and procedures.
• Review trading patterns and position limits to determine client's ability to meet settlement obligations.
• Monitor settlement team's performance and recommend improvements to the settlement procedures.
Level 5 - Expert
Level 5
• Establish procedures and controls to ensure settlement transactions meet the regulatory requirements.
• Assess counterparty risk to detect potential settlement issues and recommend mitigation actions.
• Lead the team in systematic problem resolution methods for handling settlement disputes.