Overview

This is Module 9 of the Henley Executive Hedge Fund Program (HEHFP). We look at the functions required to manage the internal processing of the fund's position. The module discusses the importance of Straight Through Processing (STP) and the use of technology to support the complexity of processing multiple parts of the trade lifecycle and asset-servicing of positions. It also introduces the concepts of corporate actions processing, reconciliations and transaction cost analysis.

This module is a 3.5-hour (approx. study time) course and is eligible for 2 SFC CPT/PWMA OPT hours.

Check out the other modules in the Program:

• Module 1: Overview of the Hedge Funds Industry
• Module 2: Structuring & Setup
• Module 3: Capital Raising & Investor Relations
• Module 4: Portfolio Management
• Module 5: Portfolio Risk Management
• Module 6: Markets and Trading
• Module 7: Prime Brokerage Services
• Module 8: Business Management & Fund Administration
• Module 10: Operational Risk Management & Operational Due Diligence
• Module 11: Legal
• Module 12: Ethics (2023)
• Module 13: Compliance
• Module 14: Fund Governance
• Module 15: Tax, Audit & Accounting
• Module 16: Human Resources
• Module 17: Pitchbook Formation

Objective

By the end of this module, you will be able to:
- Describe what STP is and why it is important
- Explain the role of operations and the different types of technology needed
- Describe various concepts of working with the fund administrator

Content

Part 1 - Pre-reading materials
(i) A Simplified Trade Process Flow
(ii) AFME - The Role of Post-trade Services in FS

Part 2 - Presentation Slides of the eCourse

Part 3 - Operations and Technology eCourse*
(i) Section 1: What is STP and Why Do We Need it?
(ii) Section 2: The Trade Lifecycle - Idea to Allocation
(iii) Section 3: The Trade Lifecycle - Trade Processing and Settlement
(iv) Section 4: Cash and Position Management
(v) Section 5: Monitoring the Portfolio
(vii) Section 6: Concluding Remarks

Part 4 - Quiz*
The quiz consists of 15 questions where learners have 3 attempts to achieve at least 80% with correct answers as a pass.

Part 5 - Post-reading materials
(i) PwC - FS Regulatory Brief on Trade Allocation Practices
(ii) Have regulators created a new type of financial monster?
(iii) The future of clearing and settlement
(iv) AIMA Industry Guide on Digital Asset Custody

* mandatory parts to complete

Who should attend

(1) Hedge Fund professionals seeking to enhance their knowledge
(2) Individuals looking to start a Hedge Fund
(3) Service providers e.g., Banking, Risk, Compliance and IT professionals, Lawyers, Fund Administrators