Welcome to the first ICMA Stress Testing Credit Risk: The credit crunch of 1294 Executive Education newsletter The Great Depression Scenario ICMA Executive Education newsletter Issue No.1, May 2012 contents MAY 2012 INTRODUCTION PARTNERSHIPS 3 Executive education – an essential 12 IFBL & ICMA Executive Education investment in a changing market A successful five year collaboration which recently Martin Scheck, CEO of ICMA celebrated its anniversary John Board, Dean of Henley Business School 4 From the Head of ICMA Executive Education NEWS John Evans reviews ICMA’s history of education courses and looks at our current offering 13 Latest news What’s been happening recently at ICMA Executive Education COURSES FACTS & FIGURES 5 ICMA Executive Education structure How all of the ICMA Executive Education courses 14-15 Course statistics fit together Some interesting demographics about our programmes 6 Securities & Derivatives Operations A combination of two operations courses PUBLICATIONS that work particularly well together 16 Recent publications Two books published by ICMA’s trainers PEOPLE Carol Padgett and Neil Schofield 7 Featured Trainer Keith Dickinson, Programme Director for FEATURES our Operations courses shares his views 17 Stress testing credit risk 8 Training faculty Simone Varotto looks at the Great Depression scenario An introduction to all of ICMA Executive Education’s trainers 18 Back in 1294... A group of academics at the ICMA Centre examine a much earlier credit crunch CERTIFICATE HOLDERS 9 Certificate holders, 1st quarter 2012 Congratulations to all those who PROGRAMME SCHEDULE recently passed our examined courses 19 2012 schedule 10 - 11 Diploma holders See which courses we will be holding this year Meet two of our first Diploma holders ICMA Executive Education is a joint venture between ICMA and the ICMA Centre at Henley Business School, University of Reading. Covering technical securities/derivatives and operations, the professional qualifications and training programmes are aimed at market practitioners in the financial markets and delivered in the major financial centres. 2 We welcome feedback and comments on the articles which appear in this newsletter. Please e-mail David Senior, Business Development Director, ICMA Executive Education: [email protected] © ICMA Executive Education, 2012. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission from ICMA Executive Education. introduction Executive education an essential investment in a changing market Welcome to this, the very first ICMA Executive Education newsletter. It’s designed to highlight our new courses and locations and to give you some in-depth insights into our existing programmes and the people who are responsible for delivering them. We are also profiling our successful certificate holders, who are now using the skills they have learnt with us in their everyday working lives in the financial markets. We would like to hear what you think about this first edition and encourage you to contribute to the second one, which we plan to send out in six months’ time. Contact us on [email protected]. Foreword by Martin Scheck, In these uncertain times we need to develop the skills of the professionals Chief Executive, ICMA who are needed to carry on the essential work of financial markets – providing funding for the real economy. ICMA’s long term investment in developing The financial markets are still coping benchmark training courses for financial markets has created a range of with the financial crisis which has been practically oriented programmes, which will equip participants to adapt with us in various guises since 2008. Its to changing markets and economic conditions. We particularly value the latest manifestation, a sovereign debt crisis longstanding and unique partnership between ICMA and the ICMA Centre, threatening the existence of the euro, which is part of the Henley Business School at the University of Reading. is in remission at the time of writing thanks The combination of market practice and academic input in all the courses run to the liquidity extended to banks though the ECB’s LTRO initiative. Against this through ICMA Executive Education, ensures that they remain relevant and fresh background, we are experiencing a major ‘once in a generation’ change in the for the participants. The courses are of true practical value and widely recognised way that capital markets and participants in those markets will be regulated. globally, and we are delighted that despite the difficult conditions in the financial The International Capital Market Association, a long-standing, not-for-profit trade markets, an ever increasing number of students are benefitting from ICMA body which provides internationally accepted documentation and standards for Executive Education’s courses – you will find details of the latest developments the debt capital markets, is currently reviewing and responding to the tide of in this publication and on our website at www.icmagroup.org. regulatory initiatives in Europe and elsewhere on behalf of its global membership. These will affect the mechanics of issuing, investing and dealing in capital markets in ways that are not yet not fully defined. Foreword by John Board, was further demonstration of the value of the relationship, cemented in the area Director of the ICMA of executive education by the creation, in 2007 of “ICMA Executive Education”, Centre and Dean of an explicit joint venture to promote and enhance what was then a portfolio Henley Business School of three courses into a full suite of executive programmes – covering all stages of individuals’ careers and requirements (introductory, professional qualifications ICMA has for many years and more specific CPD). We now have a total of 22 courses covering the front, had a close working relationship with middle and back office, running from yield analysis to Islamic Finance. These the University of Reading in its mission to have attracted participants from many countries, and a very large percentage deliver executive education to its members. This association began when ICMA of Member firms – a demonstration of the growing success of the venture, was named the Association of International Bond Dealers (AIBD) and its flagship the delivery to industry needs and ICMA’s commitment to its Members and its 3 programme, now the International Fixed Income and Derivatives (IFID) Certificate core values. From our side, at the University (and latterly the Henley Business Programme, was the the General Certificate Programme (GCP). Over time the School) and the ICMA Centre, it is a pleasure to collaborate in this activity and relationship has strengthened and the role of a university partner in validating further demonstrate our own links to an industry that we have been addressing and updating its education portfolio, a core aim of the association, has for the last 20 years. increasingly been recognised. The establishment of the ICMA Centre in 1996 introduction 45 years later – from the Head of ICMA ExEcutivE Education IT was in 1977 that ICMA, then AIBD, launched its Budapest, Luzern, Cairo and many other locations level. In addition to teaching core subjects of securities General Certificate Programme (GCP). Just eight years throughout the EMEA region. Our courses are attended and derivatives and investment management, it also after the creation of the association, it was recognised by staff from banks, investment managers, central has a degree in Islamic Finance, one in Regulation that education and the training of market participants banks, exchanges and a host of other institutions. and Compliance, as well as many others. As part of the was a key factor in having a safe and efficient financial The courses are open to all, though Members enjoy Henley Business School (with a world ranked MBA), market. In 1985, ICMA launched the Operations a significant discount versus non-Members. it has become a powerful force in financial education Certificate Programme (OCP), realising that the in the same way ICMA is a senior association in the global financial markets. Like ICMA, it is now venturing education of operations staff was of equal importance The combination of ICMA to the training of “front office” staff. Both of these for the first time into Asia with the opening of a new and the University of courses continue to this day. campus in Malaysia where ICMA Executive Education Reading is quite unique will run several courses in 2012. It is important to reflect on the fact that the motivation in the financial world... for the creation of these courses was more than simply The combination of ICMA and the University of Reading providing services to Members. In 1977, as is the case is quite unique in the financial world. I am at a loss to think of another example of a significant international today, regulation and accreditation regimes were largely It was decided at the start of this year, 2012, that ICMA association working with a world class university in national in nature. With the growing Eurobond market, Executive Education would look to offer its courses and such a close and integrated way. I am also proud to be participants had to think on a pan-European basis. Staff two Diploma pathways in Asia. Economic growth is part of the development that is currently taking place, would be transferred from Milan to London, or Paris moving to that part of the world and all large Member as we move forward to expand the remit of both ICMA to Frankfurt, and there had to be some standard to let banks have substantial operations in the region. It is and the University of Reading in Asia. There are striking the banks know that wherever a person originated from, part of our service to Members that we look to provide similarities to today and 1977; an association looking they had an acceptable level of education and training.