The document outlines the agenda for a two-day workshop on capital markets testing hosted by Time2test Limited and Asymilate Limited. The workshop will provide an introduction to capital markets domains, technical skills, and testing skills. It will cover topics such as banking products, trade lifecycles, cash flows, delivery concepts, and derivatives. The agenda includes sessions on the banking domain, technical skills like XML and SQL, and testing skills including test planning and defect resolution.

1. Workshop hosted by Time2test Limited in conjunction with AsymilateLimited
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2. Agenda
What's the agenda?
Flexible agenda to met the delegates’ requirements.
Evening times:
6pm –10am ( 4 hours with coffee breaks)
Weekend and weekday times:
Start at 9am to 5pm with breaks and lunch
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3. House Rules!
Lavatories
Food and Drink in the class room
Drinks –water from the kitchen area
Fire Alarm
Room Access during lunch and breaks
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4. Pre-requisites
•Your laptop and permissions to install software
•Windows machine for installation of the client software , ftp clients and other useful tools
•Pen and notepad for taking notes
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3 mins

5. Fast Paced course?
Lots to go through
We only have a limited time so the pace is going to be fast
The workshop will introduce you to the Capital markets domain from the Quality assurance and testing perspective.
We will introduce you to Asymilate’sCapital Markets Testing tool : Caesar
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6. About me –MiteshSoni
Over 20 years in the Capital Markets Banking Domain
Has worked for major investment banks as a principal consultant
Specialises in Capital Markets Quality assurance and Testing solutions.
Managing Director of AsymilateLimited
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7. About me! –Viresh Doshi
Over 15 years testing experience
Extensively worked in the Internet domain
Technical testing specialist
Process Improvements Advocate
Automation testing advocate
Keen follower of Agile and it’s techniques
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8. What do you want to get out of the course?
Note down your goalsand objectivesone per sticky note and describe them.
Note down any questionsyou have that you would like answered.
One per sticky note
Lets review them at the end of the course.
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10 mins

9. What do you already know about the capital markets domain?
Lets talk and note down what we already know.
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5 mins

10. Capital Markets Testing overview
The workshop will be delivered in a classroom lecture style.
We will use a popular Capital Markets Application to describe the domain and concepts for testing and QA
We will also refer back to Caesar application which is a test harness built to perform regression testing for Capital Markets.
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11. Course Overview
The 2 day Capital Markets Testing workshop is split into three categories:
1.Banking Domain
2.Technical Skills
3.Testing skills
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12. Course Overview –Banking Domain
Capital Markets -what is capital markets in the investment banking arena?
Learn about investment banking trading
Learn the different banking products (ADR
1.Equities
2.Repos
3.Swaps
4.Bonds
5.Derivatives
Learn the workflow -Trade, Transfer, Message
Learn about SWIFT messages
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Learn STP –straight through processing
Risk and Reporting -EOD
Learn about these objects(trades, transfers, messages, tasks, legal entities, tasks, legal entities)
Learn about static data
Learn about netting
Learn about SDI
Learn about rejected trades and resolution
Learn about Front office, Middle office and Back office

13. Course Overview –Technical Skills
Unix and linuxfor running jobs and viewing log files and starting and stopping
Telnet and FTP for test data manipulation
XML files manipulation
Basic of SQL for test data preparation
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14. Course Overview –Testing Skills
Popular test variations for Test data Prep
Functional testing and Regression testing test plans and test cases creation
Performance Testing planning and simulation
Test Environments and development environment.
Problems and Defect finding and resolution
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15. Recap
Introductions complete
Objectives set on the sticky notes
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16. Quick recap of topics covered in the first session
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17. FX example
FX –Foreign Exchange
Trade Lifecycle –Pricing to Accounting
Front office
Back office
Middle office
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18. Products
Securities-Bonds, Equities
Derivatives
Money Markets
FX
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19. Areas covered
Domestic Banking
Investment Banking –Capital Markets
Trading and Speculation
Hedging
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20. Chocolate –Cadburys Example
Chocolate is made in the UK
Raw material –Coco Beans are needed from South America
Instead of buying chocolate at a fluctuating price, Cadburys will enter into the derivatives market for a product that will fix the price for additional fee(s).
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21. Nick Leeson–Barings Example
Investment bank is brought down due to a rogue trader who confirmed his own trades.
Large futures trades sensitive to changes in price of underlying asset led to big losses
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22. Quality Gates
Four Eyes Principle –supervisory checks to maintain audit trail
Kyc–Know your customer
Dodd Frank –OTC markets being forced to go through regulated exchanges to prevent big losses.
Basel committee recommendations
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23. Lehman Brothers example
Investment bank collapses.
Credit Defaults triggered large payoutsthat the bank could not guarantee
Counterparties exposed to Leemanstriggering systemic risk
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24. Topics
Settlement t+2 for FX (exceptions CAD)
CLS –continuous link settlement – organisation that facilitates FX settlement and reduces settlement risk
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25. Topics
Quantitiveeasing –effects on exchange rates
Static Data –reference data
Reuters/Bloomberg for pricing
SWIFT –confirmations gateway MT/MX
Trading book –hierarchy of trade activity
Netting –aggregate settlement
Matching Confirmations Process
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26. Terminology
Nostro–our account, at our agent
Vostro –cpty’saccount with agent
Loro–cpty’saccount held with our organisation who is an agent
STP –Straight Through Processing
Netting –an agreement to aggregate the transactions for net settlement www.time2test.co.uk 26

27. Quiz
What is the difference between Front Office and Back office?
How would you describe Middle Office?
What products are traded in Capital Markets?
What typical attributes make up a SWIFT message?
What is benefit of netting?
What are Chinese walls at Investment banks?
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28. Quiz
What does it mean to Settle a trade?
What is a confirmation?
What is a counterparty?
Can you give some examples of static data?
What is STP?
What in terms of financial reporting is the main difference between a derivative and an equity?
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29. Quick recap of topics covered in the session
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30. Trade Lifecycle
Happy Day workflow scenario
Rainy Day scenario
Counterparty becomes insolvent
Incorrect Static Data propagation
Rate tolerances breached
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Many considerations for Test Scenarios

31. Cashflowand security movement
All transactions have movement of cash and / or security
Cashflowsare basic building block for valuation purposes
Discounted Cashflowsused to compute net present value
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32. Delivery Concepts
Deliver Against Payment (DAP) – Security and cash exchanged simultaneously
Delivery Free of Payment (DFP) – Security and Cash are exchanged independently(carries more risk)
Contingent accounting –used to build up general ledger to represent the trade as it is confirmed and settled
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33. Bond Example
Bonds entitle buyer to interest payments according to the bond definition
Bonds are issued by governments and corporations to raised debt
ISIN –unique number to identify the Bond
Coupon –term to denote the interest payable
Value of the bond is inversely proportional to interest rates.
Yield curves are used to create net present value computations
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34. IRS –Interest Rate swap
Two parties in a transaction where one party pays fixed rate of interest and the other pays floating rate.
Used by companies to hedge against interest rate movements
Or to raise capital by companies who are lower credit grade clients
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35. OTC –over the counter
OTC –over the counter products allow the counterparties to agree flexible terms and conditions
Exchange traded –product conditions are determined by the exchange
CCP –Central Counter Party –Rapidly becoming the new infrastructure for settlement.
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36. Forward Products
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Forwards are products where the price and conditions are agreed today for a future settlement
Used for hedging purposes to avoid fluctuations of rates and prices
Also can be used speculatively for trading purposes

37. Repo Products
Repurchase Agreements – Agreements where on counterparty lends the other a sum of money which is backed by collateral from the other counterparty
Used frequently for Short Term financing by large investment banks
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38. Buy/Sell Back Products
Repurchase Agreements
Short Term financing
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39. Option Basics
The right but not the obligation to buy or sell an asset at a given strike price and date schedule.
European –one fixed exercise date
American –can be exercised on any date to expiry
Bermuden–a schedule of expiry dates
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40. Terminology
Arbitrage –small differences in rates that allow you to simultaneously buy and sell an asset to capitalise on the rate difference.
Short selling –selling an asset even though you may not own the asset by taking a speculative view on where the market is heading.
Novation –transfer of ownership
LIBOR –Committee that sets the interest rates
ISDA agreement –legal framework for trade confirmation and settlement
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41. Terminology
Equity option –put / call
Exercised options -American , Bermudian, European
Swaption–the option to exchange fixed for floating in a swap trade
Asset swap –exchange the income stream from an asset pool to a cash income stream
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42. Goals and Objectives review and what’s next?
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43. Goals and Objectives
Review the Sticky notes
Did the course meet your goals and objectives?
Feedback will be requested via email.
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44. Recommend us?
Recommend your friends and earn some incentives:
iPad
Kindle
Android Tablet
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