This course reviews the organisation, management and regulation of financial markets, financial exchanges, and financial service providers. It investigates the regulatory framework in which the financial service industry operates. It dwells on the financial instruments at the disposal of the industry and on their specific use at the hand of financial service providers. It analyses the techniques developed by financial services to cope with the nature of their activity, such as managing assets and liabilities, managing credit risk or managing investment portfolios to meet specific targets. It also considers how recent developments, including technological advances and economic globalisation, have instilled renewed vigour in activities such as acquisitions and mergers, and contemplates the future of the industry.

A 2-hour weekly lecture for 10 weeks.

A briefing note (25% of final grade for course) and a two-hour end-of-course examination (75% of final grade for course).

This course reviews the organisation, management and regulation of financial markets, financial exchanges, and financial service providers. It investigates the regulatory framework in which the financial service industry operates. It dwells on the financial instruments at the disposal of the industry and on their specific use at the hand of financial service providers. It explores the operation of global financial markets and in particular the role of banks, bond markets, the stock exchange, hedge funds and securities markets in general. It discusses how securitization and subprime lending fuelled the recent global financial crisis and the role of credit agents in the 2007-2009 crisis. The use of derivative products is presented.

By the end of the course, students should be able to:

■ assess how the financial service industry is regulated;

■ identify the financial instruments at the disposal of the financial service industry;

■ identify and analyse key developments in the international financial system;

■ understand the operation of markets for derivative securities.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.