Effective product control : controlling for trading desks

Effective product control controlling for trading desks

Improve the Effectiveness of your Product Control Function Effective Product Control is a detailed how-to guide covering everything you need to know about the function. Considered essential reading for: New controllers entering the profession Auditors and regulators reviewing product control Establi...

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Detalles Bibliográficos
Otros Autores: Nash, Peter, 1977- author (author)
Formato: Libro electrónico
Idioma:Inglés
Publicado: Chichester, West Sussex, United Kingdom : John Wiley & Sons 2018.
Edición:1st edition
Colección:Wiley finance series.
THEi Wiley ebooks.
Materias:
Financial institutions > Risk management.
Financial services industry > Risk management.
Portfolio management.
Stocks.
Investments.
Ver en Biblioteca Universitat Ramon Llull:https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009631576306719
Tabla de Contenidos:
  • Intro
  • Effective Product Control
  • Contents
  • Preface
  • Acknowledgements
  • About the Author
  • PART ONE Working in Product Control
  • 1 An Introduction to Product Control
  • The Emergence of Product Control
  • The Purpose of Product Control
  • Different Types of Product Control
  • P&amp
  • L Only
  • P&amp
  • L: Balance Sheet and Financial Reporting Focus
  • Skills, Qualifications and Experience
  • Organizational Structure
  • The Desk
  • The Trading Floor
  • Pressures of Supporting the Desk
  • 2 Changing Landscape of Product Control
  • Offshoring
  • My View
  • Risky Choices
  • Benefits
  • XVA
  • Greater Levels of Capital
  • Greater Focus on Liquidity
  • Notes
  • 3 Key Stakeholders
  • Front Office: Sales and Trading Desk
  • Chief Operating Officers (COOs)
  • System Infrastructure
  • Onboarding New Products
  • Daily Operational Effectiveness
  • Forecasted Revenues, Costs, and Balance Sheet
  • Operational Risk Incident (ORI)
  • Implement Firm-Wide Changes
  • Operations
  • Middle Office
  • Market Risk
  • Financial Reporting
  • Management Reporting
  • Finance Change
  • IT
  • Operational Risk
  • Regulatory Reporting
  • Accounting Policy
  • Tax
  • Audit
  • Internal Audit
  • External Audit
  • Finance Shared Service
  • Summary
  • Notes
  • PART TWO Technical Skills
  • 4 Accounting Standards: Recognition and Measurement
  • IAS 39 Financial Instruments: Recognition and Measurement
  • Recognizing a Financial Asset or Liability
  • Derecognizing a Financial Asset
  • Derecognizing a Financial Liability
  • IFRS 9: Financial Instruments
  • Recognition and De-recognition
  • Classification and Measurement
  • IFRS 13: Fair Value Measurement
  • Defining Fair Value
  • Arriving at Fair Value
  • U.S. GAAP and Fair Value Measurement
  • Notes
  • 5 Market Risk
  • What Is Market Risk and How Is It Generated?
  • How Is Market Risk Measured by a Bank?
  • The Greeks
  • VaR.
  • Stress Testing
  • Note
  • 6 Pricing Financial Instruments
  • How to Approach the Pricing of a Financial Instrument
  • Special Features
  • Pricing examples
  • Spot FX
  • FX Forward
  • Bonds
  • Interest Rate Swap
  • FX Option
  • Pricing Add-ons
  • Notes
  • 7 Internal Control
  • What is Internal Control?
  • Establishing an Internal Control Framework
  • The Board and Senior Management
  • Regulatory Requirements
  • Market Practice
  • Type of Business
  • Example of Front to Back Internal Controls
  • Notes
  • PART THREE Profit and Loss Controls
  • 8 System Feeds, End of Day Rates and Profit and Loss Estimates
  • System Feeds
  • End of Day
  • End of Day Rates
  • Externally Sourced Rates
  • Trader Sourced Rates
  • P&amp
  • L Estimate
  • Note
  • 9 Review of New and Amended Trades
  • New Trades
  • Why New Trades Are Generated
  • Reviewing New Trades
  • Presentation of New Trade P&amp
  • L
  • Amended Trades
  • Why Are Trades Amended?
  • Avoidable vs. Unavoidable Amendments
  • Presentation of P&amp
  • L from Amended Trades
  • Notes
  • 10 Review of Mark-to-Market P&amp
  • L
  • Defining Mark-to-Market P&amp
  • L
  • Attributing MTM P&amp
  • L
  • Waterfall Method
  • Restored Method
  • Other Sub-attributes
  • FX Revaluation
  • Fixings
  • Risk-Based P&amp
  • L estimates
  • Fixings
  • Changes in the End of Day Prices
  • Do the End of Day Prices Agree to the Market?
  • What Has Driven the Change in Prices?
  • When to Validate the MTM P&amp
  • L
  • 11 Funding, Fees and Charges
  • Funding
  • Drivers of Funding
  • How a Desk Funds Itself
  • Analysis of Funding P&amp
  • L
  • Rogue Trading Control
  • Fees and Charges
  • Above the Line Expenses
  • Note
  • 12 Profit and Loss Adjustments
  • The Need for P&amp
  • L Adjustments
  • Controlling P&amp
  • L Adjustments
  • Independent Verification
  • Recording
  • Reporting
  • Escalation
  • Notes
  • 13 Profit and Loss Commentary.
  • Day One P&amp
  • L
  • Who Is the Reader?
  • When Is P&amp
  • L Commentary Required?
  • Escalating P&amp
  • L and the Related Commentary
  • Other P&amp
  • L Commentary
  • 14 Profit and Loss Reconciliations and Sign-Offs
  • Flash vs. Actual
  • Apples to Apples
  • Desk P&amp
  • L Sign-off
  • P&amp
  • L Reconciliation
  • PART FOUR Valuations
  • 15 Independent Price Verification
  • Components to IPV Process
  • 1. Identifying the Fair Valued Financial Assets and Liabilities
  • 2. Price Discovery - Sourcing Fair Values from the Market
  • Calculating Price Variances
  • Reporting on the Outcomes of the IPV Process
  • Note
  • 16 Valuation Adjustments
  • Why Valuation Adjustments Are Required
  • Bid-Offer
  • Quantifying the Bid-Offer Valuation Adjustment
  • Day 1 Reserves
  • Model Valuation Adjustment
  • XVA and Collateral Agreements
  • CSA
  • Credit Value Adjustment (CVA) and Debit Value Adjustment (DVA)
  • Funding Value Adjustment (FVA)
  • Recording and Reporting of VAs
  • Notes
  • PART FIVE Balance Sheet Controls
  • 17 Balance Sheet Substantiation and Analysis
  • Substantiating the Balance Sheet
  • 1. Identify an Appropriate Source that Supports the Accounts Balance
  • 2. Confirm that the Account Used to Record the Amount is Appropriate
  • 3. The Balance and Its Movement are in Line with the Activities of the Business
  • Frequency of the Balance Sheet Substantiation
  • Evidencing the Balance Sheet Substantiation
  • Unsupported Balances
  • Lines of Responsibility
  • 18 Dividending of Profit and Loss and FX Selldown
  • Additional Items to Consider
  • 19 Controlling Nostros
  • Introduction to Nostros
  • Controlling Nostros - Cash Breaks
  • Risk-Weighting Cash and AVE breaks
  • Provisioning for Nostro and AVE Breaks
  • Notes
  • PART SIX Financial Accounting and Reporting
  • 20 Financial Accounting Entries
  • Financial Accounting Entries
  • Stock
  • Loan
  • Bond.
  • Interest Rate Swap
  • FX Forward
  • Futures
  • Chart of Accounts
  • Accounting Rules Engine
  • Notes
  • 21 Financial Reporting and Note Disclosures
  • Context of Financial Reporting
  • Legal Entity View
  • Intercompany and Intracompany Transactions
  • Timings
  • Labelling
  • Profit and Loss
  • Balance Sheet
  • Derivative Assets and Liabilities
  • Counterparty Type
  • Netting
  • IFRS
  • U.S. GAAP
  • Disclosures Relating to Netting
  • Fair Value Hierarchy
  • Level 1
  • Level 2
  • Level 3
  • U.S. GAAP
  • Notes
  • PART SEVEN Supplementary Controls
  • 22 New Product Proposals
  • Starting Line
  • The Review
  • The Sign-Off
  • 23 Rogue Trading
  • The Forefathers of Rogue Trading
  • The Fallout from Rogue Trading - The Bank
  • Regulators
  • Job Losses
  • Reputational Losses
  • Credit Ratings
  • The Fallout from Rogue Trading - The Industry
  • Going Rogue
  • Why Does a Trader Go Rogue?
  • How Does a Trader Go Rogue?
  • How Does a Rogue Trader Conceal Their Crime?
  • UBS Rogue Trading Incident, 2011
  • Background
  • The Trading Activities Which Caused the Losses
  • Concealing the Crime and Weak Controls
  • How Was the Fraud Detected?
  • Other Significant Operational Losses
  • Notes
  • Index
  • EULA.

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