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THE BUSINESS SCHOOL FOR FINANCIAL MARKETSwww.icmacentre.ac.uk Masters Degrees in Finance 2010/11 YOUR COURSE TO SUCCESS. YOUR ICMA CENTRE. 02 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Welcome Introduction / Dealing Rooms Professional Qualifications / Career Development / Alumni Our masters degrees Learning options MSc International Securities, Investment and Banking (ISIB) MSc Investment Management (IM) MSc Financial Risk Management (FRM) MSc Capital Markets, Regulation and Compliance (CMRC) MSc Corporate Finance (CF) MSc Finance and Real Estate (FRE) MSc Financial Engineering (FE) MSc Investment Banking and Islamic Finance (IBIF) Entry requirements Module catalogue Faculty Henley Business School 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 22 23 “ICMA’s investment in the ICMA Centre has delivered tangible benefits for the Association’s members and international finance industry as a whole for 18 years in the form of highly skilled graduates, cutting edge research and executive training programmes. The development of this exciting new facility highlights the continuing unique partnership between the industry and the Centre.” René Karsenti | President | ICMA Centre The Centre’s facilities are among the best in Europe – we have our own award winning building. our 2. both certified and bespoke. Over the years. our collaborative links with industry. the ICMA Centre offers an excellent and stimulating environment in which to study and offers plenty of scope to apply theory to practice. I very much hope that you find the programmes in this brochure to be of interest and I look forward to welcoming you to the Centre in due course. as well as consultancy services. which contains the largest simulated dealing room in Europe as well as outstanding teaching and research space. extended in 2008.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 03 Europe’s first active collaboration between the securities industry and a University finance department began eighteen years ago when the International Capital Market Association began its relationship with the University of Reading to create the ICMA Centre as “the business school for financial markets”. In all. In addition. we offer a suite of executive education programmes.500 graduates from 86 countries demonstrate our ongoing ability to meet our objectives. Professor John Board Director of the ICMA Centre . and. we have expanded our faculty numbers so that we are now among the largest in Europe and have introduced a wide range of Masters courses – both mainstream and more specialised – and a new undergraduate programme. Our reputation. not least. Our mission was to deliver teaching and research of the highest standard and to contribute actively to policy debate. as well as to use Henley’s resources to enhance our taught programmes. The university’s recent merger with Henley Management College to create Henley Business School now makes us part of one of the largest and most prestigious business schools in Europe and this will allow us both to expand further. whether in derivatives trading. all sponsored by Thomson Reuters. financial engineering or corporate finance. The Centre is proud to have won and been the top European business school in the past five years. café bars and Bloomberg TV.icmacentre. which is attended by universities from all over the world. trade bodies and » The largest and best equipped dealing rooms focussed support. Rotman International Trading Competition We are keen to offer our students a variety of additional opportunities each year to add to their skill set and CV.ac. As part of their coursework they experience the thrill and pressures of a live market – take positions. but they also enable academic staff to combine theory and practice across a whole range of activities. several seminar rooms. $50-100 million trading book. which allows students to immerse themselves in a trading environment. The brand new 40 station flagship dealing room is equipped with all the latest trading technology giving it the feel of a real trading floor. quote two-way prices and manage the risk of a » Specialist Career Development Unit providing . Harvard University and Cass Business School. It has a state-of the-art 37 foot 8 colour Daktronics ticker tape displaying up to date market prices and four plasma screens with the latest news and quotes. Thomson Datastream and Bloomberg.04 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Our success Part of Henley Business School at the University of Reading. If you are interested in finding out more about team selection visit www. informal seating areas. have always been an integral part of our teaching and learning style – our technology and facilities allow students to put theory into practice. Dealing Rooms The ICMA Centre was the first business school in Europe to have dealing rooms and is still the only university with a facility on such a scale. These rooms are not merely training centres for traders of the future. So much so. risk management.I. where students learn how markets really function and apply theory through simulations. Our three dealing rooms. One of these is the Rotman International Trading Competition in Toronto – every year we enter a team of students to compete in this event. a dedicated research area. We have over 100 terminals in three dealing rooms equipped with Thomson Reuters 3000 Xtra Kobra.T Sloan School of Management. The Centre also boasts two lecture theatres. other financial institutions in any European business school and teaching by former City traders and industry specific education The Centre was established in 1991 with funding provided by the International Capital Market Association (ICMA) in Zurich. The ICMA Centre has the most extensive simulated dealing room facilities in the world. Having these essential practical skills in today’s competitive and uncertain environment gives our students the edge over more traditional finance degrees. Our state-of-the-art facilities include three dealing rooms running Thomson Reuters. beating the likes of M.uk/rotman. Bloomberg and Datastream products. Students also manage multi-asset portfolio’s using live prices and the latest investment management technology. the ICMA Centre’s success is a combination of factors: » The integration of applied finance theory » Professional and academic expertise » Strong links with banks. portfolio management. that regular trading days are held in our dealing rooms for graduate trainees and other personnel of most of the major investment banks. Thomson 1 Banker. profiles “The Derivative Securities module is a ‘must’ for anybody looking to stand out in derivatives risk management. This knowledge enabled me obliterate the competition completely during my interview and I was fast tracked into working on major projects in no time as a result. often led by banking and financial services employers and alumni. interview skills. To view our current database visit www. which includes all the latest news. Individual one-to-one coaching and action-planning is freely available as well as group activities. as it can provide proven career opportunities. so our on-site career development specialists offer a unique personalised service to help you attain your career ambitions. The Diploma gives students who take one further exam a licence to trade securities in the UK. access to this network can be crucial.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 05 Professional Qualifications The ICMA Centre offers students the opportunity to study professional qualifications alongside their degrees. . Alumni The fast-paced business culture within the global markets is matched by the active ICMA Centre Alumni Association.icmacentre. United Kingdom) Wholesale Banking list for people working Alumni benefit from: » Website. As markets become increasingly international.uk/student_profiles. career success can often depend on networking with colleagues around the world. Career Development Unit There is a wide diversity to our student cohort.ac. ICMA International Fixed Income and Derivatives (IFID) Certificate Established for over 30 as THE qualification for the fixed income market. With more than 80 nationalities represented within the Association. including those from the Securities & Investment Institute (SII) Diploma and the ICMA International Fixed Income and Derivatives (IFID) Certificate. SII Diploma Recognised around the world. » ICMag – the bi-annual newsletter » Networking opportunities » Regular reunion events held around the world. The IFID programme is a ‘Recommended Exam’ on the FSSC (Financial Service Skills Council.uk/ mscs_professional_qualifications. examined course aimed at developing a broad and in-depth knowledge of the key fixed income instruments. job search techniques and networking. and advising in Securities and Derivatives.icmacentre. and it has also met the FSSC’s Key 2 ‘Appropiate Exam’ standards for activities: ‘Advising on Derivatives’ and ‘Advising on Securities’ Further information is available on the individual degree pages and online at www. For a number of degrees exemptions are in place. The detailed and extensive academic background to trading strategies that this module equips you with is priceless in the industry.” David Armarteifio | 2006 Graduate Risk Analyst – Derivatives | Commerzbank AG Profiles We offer all our MSc students the opportunity to post their profiles (mini CVs) on the website where recruiters can search for the skills they are looking for.ac. the ability to network on a truly global basis is one of the key benefits of study at the ICMA Centre. This is a demanding. on topics such as the preparation of successful CVs and application forms. forums. the IFID programme puts emphasis on developing practical skills for trading. Even for current participants. investment and risk management. jobs board. photos. the SII Diploma is the UK’s leading professional finance qualification. derivatives and markets. Specialist degrees: MSc Capital Markets Regulation and Compliance Particularly attractive to those already employed in the regulation or compliance function. PRMIA and SII industry practitioners real-world experience in securities markets in Europe General finance degrees: MSc International Securities. surveying and valuation of properties. Whereas more traditional real estate courses (such as those leading to membership of the Royal Institution of Chartered Surveyors qualification) focus on planning. We have three large general finance programmes. this programme provides an excellent complement and should enable them to advance rapidly in this important profession. Which degree? Our aim is to offer MSc degrees that appeal to those with interests in any area of finance. insurance companies. It helps provide knowledge of derivatives pricing tools and methods and the use of programming languages like C++ and VBA. Careers are increasingly becoming available not only in Muslim countries but also in Western countries where banks provide Islamic finance services. qualifications alongside the degrees. pension fund or insurance fund management areas. This includes those who might choose to work in a hedge fund. hedging and investment. which incorporate one or more derivatives. in asset management companies. The financial sector regulatory and compliance industry is growing rapidly due to the many problem issues in regulation and compliance which have been revealed by the credit crisis. For those who already have the benefit of an undergraduate degree in law. which are taken by 75% of students. MSc Investment Management Designed for those who wish to enter the investment management or wealth management part of the industry. regulatory agencies and also in the corporate treasury area of manufacturing and service companies. MSc Investment Banking and Islamic Finance For students who see the rapidly growing area of Islamic finance and insurance as one which will provide them with good career options. MSc Corporate Finance Designed for those who wish to be involved in the primary market function (new equity and debt issues) or mergers and acquisitions in an investment bank. As both the investment banking and the investment management industry increasingly seek tailored products. The programme provides the knowledge base necessary to minimise the likelihood of regulatory failure by a Securities Commission as a result of its staff having insufficient understanding of finance. and a range of specialist degrees designed for those with specific requirements and interests. Risk managers are employed in investment banks. investment management houses and hedge funds. private equity. this programme is for those who wish to enter the growing industry which focuses on the financial aspects of real estate – financing. to work in the finance/treasury area of a manufacturing or service company which frequently accesses the capital markets or in a consultancy which provides advice on corporate finance. This industry is based in investment banks. Investment and Banking Our largest programme is designed for those who have not yet reached a decision on the specific area of finance in which they wish to specialise when entering employment after graduation. people with these skills are becoming highly sought after. MSc Finance and Real Estate Combines quantitative competence and institutional application in an area of business that relies increasingly on the capital markets and on derivatives.06 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Our Masters degrees Key benefits of our Masters degrees: » The latest theory and industry practice » The longest established Masters programme » Faculty with wide academic and » Taught by well respected academics and » Recognised by professional organisations » The opportunity to study professional such as CFA Institute. . MSc Financial Risk Management For those with good quantitative skills and who want a career in this sector of the industry. including CFA Level 1 and PRM Certification and exemptions from others giving students a licence to trade securities in the UK and Europe MSc Financial Engineering A highly technical programme for those with strong mathematical skills. Most people wishing to work in the trading and sales function of a bank would select this programme. ac. We are receiving a growing number of applicants for our distance learning MScs. (Part Two). University of Reading. Aug Sep . For a demonstration disk of the distance learning ILE please email admin@icmacentre. with academic staff and tutorial assistance at hand. allowing a blend of the benefits of full-time and distance learning. Part Two (Full-time at ICMA Centre) Part Two Exams IC Live Flexible Learning This option is a combination of distance learning (Part One) and full-time study. You will benefit from using our unique ILE (Interactive Learning Environment). an iPoD pre-loaded with Part One lectures.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 07 Learning options FT Full-time FL Flexible Learning DL Distance Learning **Please note this relates to study time 10 months* 18 months** 24 months Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Full-Time Part One Flexible Learning Part One (Distance Learning) Distance Learning Part One * With the exception of MSc IBIF which is 12 months Part One Exams / Part Two Full-Time The full-time programme is taught at the ICMA Centre at the Henley Business School.uk Oct Nov Dec Jan Feb Mar Apr May Jun July Graduation Part Two Exams Graduation in December Please note that the MSc Investment Banking and Islamic Finance is a 12 month programme which includes three months study in Kuala Lumpur (June . This is the most popular learning option offering the benefit of studying alongside some 200 students from a range of different countries.August). Students on this degree graduate in December. Part Two Exams IC Live Graduation Part One Exams Part One Exams / Part Two IC Live Distance Learning If you want to continue working whilst you study for your Masters degree this option is ideal. and our optional IC Live week. which includes dealing room sessions. both from those who have recently graduated and those already working in the industry. In addition many graduates follow other career paths including consultancy.icmacentre. Learning options FT FL DL www. MSc ISIB students are also eligible for exemption from the SII Diploma – see the website www. IT. practical skills valued by the financial markets and the necessary underlying finance theory. . operations. which are 10. It enables our graduates to make an early contribution through the unique combination of hands-on. those marked with † are 10 credits. The programme was designed with the support of industry practitioners to equip you with the skills and knowledge needed to succeed in this challenging arena. but are readily transferable to other business and organisational contexts. Professional development Students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate. This degree is ideal for those who do not wish to specialise in a particular branch of finance while at the ICMA Centre and has the widest range of optional modules of any of our degrees – allowing students to study a range of subjects such as financial regulation.uk/isib Content Part One Graduate destinations Our international body of graduates leave us well equipped to pursue a wide range of careers in financial services. Futures and Options » Fixed Income and Equity Investments » Quantitative Methods for Finance » Financial Markets Part Two (Compulsory) Part Two (Optional) Choice of 90 credits from: » Advanced Methods for Financial Research†* » Bond Market Pricing and Trading Strategies* » Commodity Derivatives » Derivatives Securities: Pricing.ac. » Securities. However. we may offer additional or vary modules each year – for most up-to-date information please visit our website. Please note that not all Part Two modules are available on a distance learning basis – these are clearly indicated on the degree pages. Some specialise in complex derivative products while others join brokers and commodity traders. The skills developed in this programme are much in demand in the financial sector.ac. and higher education and doctoral research. those marked with ° are distance learning only. For full explanation of credits see ‘Credits explained’ box to the left. Modules marked with an * are not available on a distance learning basis. Islamic finance and risk management.icmacentre. Hedging and Trading » Empirical Market Microstructure†° » Enterprise Valuation† » Ethics in Finance† » Financial Econometrics » Financial Regulation and Regulatory Policy† » Foreign Exchange and Money Markets* » Hedging* » Interest Sensitive Securities° » Liquidity Risk†* » Market Risk » Portfolio Management » Essentials of Financial Engineering† » The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts† » Real Estate Finance† » Research Project » Stock Index Futures† » Topics in the History of Finance†* » Trading and Exchanges° » Volatility Analysis » International Securities Markets † Credits explained All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. All modules are 20 credits except those marked with†.uk/isib for more details. portfolio management. Many join investment banks to train as financial markets professionals in trading. Investment and Banking (ISIB) Overview This is our longest established degree with over 1700 alumni and is widely regarded as one of the leading applied finance programmes in Europe. Please note that the information included in this brochure was correct at the time of going to print (Sept 09). sales and research. accountancy.08 | ICMA CENTRE | MASTERS DEGREES IN FINANCE MSc International Securities. Students benefit from professional guest speakers drawn from the heart of the global investment industry in the City of London. Graduate destinations After completion. Hedging and Trading » Empirical Market Microstructure†° » Ethics in Finance† » Financial Econometrics » Financial Regulation and Regulatory Policy† » Foreign Exchange and Money Markets* » Hedging* » International Securities Markets† » Interest Sensitive Securities° » Liquidity Risk†* » Market Risk » Essentials of Financial Engineering† » The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts† » Real Estate Finance† » Research Project » Stock Index Futures† » Topics in the History of Finance†* » Trading and Exchanges° » Volatility Analysis It provides a theoretical knowledge of portfolio management and quantitative finance. » Current Issues in Investment Management » Enterprise Valuation » Ethics in Investment Management » Portfolio Management † † Professional development Students study the CFA level 1 alongside the degree. Modules marked with an * are not available on a distance learning basis. Content Part One » Securities.ac.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 09 MSc Investment Management (IM) Learning options FT FL DL www.uk/im for more details. Visit www. regulators. ensuring that graduates acquire both the academic and professional knowledge and qualifications required to succeed in the investment management industry. level 1.uk/im Overview This degree programme prepares students for entry into the fast growing and exciting investment management industry. our graduates are qualified to work in a variety of investment functions. Futures and Options » Fixed Income and Equity Investments » Quantitative Methods for Finance » Financial Analysis Part Two (Compulsory) Part Two (Optional) Choice of 40 credits from: » Advanced Methods for Financial Research†* » Bond Market Pricing and Trading Strategies* » Commodity Derivatives » Derivatives Securities: Pricing. including research and portfolio management. In addition students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate.ac. CFA Level 1 Support by 7city Learning The CFA Level 1 teaching is provided by 7city Learning – Europe’s most successful training company for the financial services industry. with a diverse range of organisations such as investment banks.icmacentre. only a short distance away. The ICMA Centre is a designated CFA Program Partner and is at the time of printing.icmacentre.uk/im for more details. those marked with † are 10 credits. fund managers and consultants. one of only three universities in the world that has fully integrated its degree study with the writing of the CFA exam.icmacentre. MSc IM students are also eligible for exemption from the SII Diploma – see the website www. those marked with ° are distance learning only. For full explanation of credits see ‘Credits explained’ box on page 8. The two programmes support and reinforce the other. together with an applied set of courses looking at industry structure and trends.ac. Integral to the academic course is the parallel study of the Chartered Financial Analyst® (CFA®) programme. . are taught by focusing on their application to relevant. this programme is currently one of only three worldwide that has been awarded exemption from professional examinations of the Professional Risk Manager’s International Association. For full explanation of credits see ‘Credits explained’ box on page 8. risk management software implementation. Graduate destinations After completion. Depending on the optional modules chosen. Demand from employers continues to grow. Regulators. regulators. and enterprise-wide risk management. or risk analysis with banks. governments. Choice of 40 credits from: » Bond Market Pricing and Trading Strategies* » Commodity Derivatives » Financial Regulation and Regulatory Policy† » Hedging* » International Securities Markets† » Liquidity Risk†* » Portfolio Management » Research Project » Volatility Analysis Professional development Students who complete appropriate courses within the degree will be eligible for exemption from PRM Exams I and II which form a major part of the PRM Certificate. markets and regulation. corporate treasury. students may decide to specialise in risk analysis. and better qualified risk managers and analysts to join the financial industry. portfolio management. advisors and commentators are unanimously endorsing the call for more. Content Part One » Securities. Most of our FRM graduates are now working for large banks in London and abroad. The Professional Risk Manager’s International Association (PRMIA) has members in over 155 countries worldwide. Key risk management concepts. such as Value-at-Risk and the pricing and hedging of financial instruments. In addition. who wish to utilise cutting-edge quantitative modelling techniques to develop advanced risk assessment and hedging tools. a leading authority on financial risk management education. despite the crisis in banks and associated financial institutions. There has never been a better time to pursue a career in financial risk management. Modules marked with an * are not available on a distance learning basis. portfolio managers. those marked with † are 10 credits.ac. Thus. those marked with ° are distance learning only. and we offer an accelerated route to their PRM professional certification. market. specialist financial boutiques and hedge funds. The role of risk analyst will suit students with good mathematical or computational skills. practical problems in risk management and analysis. Less quantitative roles include: regulation. our graduates may leave the ICMA Centre with an internationally renowned Masters degree and the professional qualification for financial risk managers. hedge funds and regulators.icmacentre. . In addition students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate.10 | ICMA CENTRE | MASTERS DEGREES IN FINANCE MSc Financial Risk Management (FRM) Learning options FT FL DL www. It was devised and is convened by Carol Alexander. credit or operational risk management. or risk management. you will be well prepared to follow a career in the challenging fields of risk management. Futures and Options » Fixed Income and Equity Investment » Quantitative Methods for Finance » Financial Markets Part Two (Compulsory) » Credit Risk » Financial Instruments » Market Risk Part Two (Optional) The MSc in Financial Risk Management has established a world-wide reputation as one of the most complete and established Masters degrees in this specialised area.uk/frm Overview This course sets the standards for graduate programmes in financial risk management all over the world. economics. those marked with † are 10 credits. FINRA International works with regulatory bodies around the world to build strong regulatory and compliance functions as well as education and training programmes in a local context. market mechanics and dealing knowledge.uk/cmrc Content Part One Graduate destinations The financial services sector has an ever expanding need for graduates trained in the fundamentals of compliance. The regulation and compliance courses can be combined with quantitative courses or with non-quantitative courses. there are immense challenges facing the institutions. With the increasing complexity of financial products. making the degree particularly suitable for business finance. those marked with ° are distance learning only. Developed in collaboration with FINRA (Financial Industry Regulatory Authority) and having the strong support of the investment banking community. accountancy and other graduates. . the Middle East. fund managers and hedge funds.icmacentre. compliance professionals within them and their regulators.uk/cmrc for more details Professional development Students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate. India and Latin America also has increased the breadth and depth of the marketplace. governance and regulation. For full explanation of credits see ‘Credits explained’ box on page 8. visit www. US Acts and global standards as well as firms’ own demands for in-house compliance resources. recruitment in the capital markets regulation and compliance areas is at an all time high as businesses face growing pressure to comply with new and existing European. Our graduates are in a very strong position to build successful careers in the compliance or legal divisions of investment banks. this degree covers a wide range of European. as well as law firms. Today. it focuses on building expertise in the regulation and compliance of the capital markets through courses in both those subjects and the economic functioning of markets and instruments. US and international directives and legislation. China. combined with a growing sophistication on the part of investors and market participants.ac. Futures and Options » Fixed Income and Equity Investments » Financial Markets » Regulation of Markets and Traders » Introductory Quantitative Methods (not for credit) Part Two (Compulsory) Part Two (Optional) » Compliance – Theory and Practice Choice of a 80 credits from: » Commodity Derivatives » Enterprise Valuation† » Ethics in Finance† » Financial Regulation and Regulatory Policy† » International Securities Markets† » Real Estate Finance† » Research Project » The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts† » Topics in the History of Finance†* » A selection of relevant modules from the School of Law is made available on an annual basis » Further optional modules are available subject to satisfying any quantitative pre-requisites. Europe and internationally.icmacentre.S. Explosive growth in capital markets in Eastern Europe. accountancy firms and consultants and regulators in the UK. Regulation and Compliance (CMRC) Overview Global financial services and capital markets industries are becoming more complex and sophisticated. law. US and international issues.ac. Learning options FT FL DL www. » Securities. The Financial Industry Regulatory Authority (FINRA) is the largest non-governmental regulator for all securities firms doing business with the U. Modules marked with an * are not available on a distance learning basis. those people working in the industry who would like to specialise in this fast expanding area and for market professionals seeking to enhance their knowledge and skills in regulation and compliance. The degree is ideal for recent university graduates from a wide range of disciplines. retail banking institutions and other market participants. public.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 11 MSc Capital Markets. This increasing demand has been fuelled by EU directives. IPOs. entrepreneurial ventures where their in-depth knowledge of finance will be of direct benefit to owner / managers seeking to build their business.icmacentre.12 | ICMA CENTRE | MASTERS DEGREES IN FINANCE MSc Corporate Finance (CF) Learning options FT FL DL www. enterprise valuation and risk management which are essential for a successful career as a corporate finance specialist. those marked with † are 10 credits. The exciting world of venture capital. Alternatively. Other opportunities lie with professional services firms. Graduates will be well equipped to join investment banks in the City of London and other international financial centres. they may join large national and multinational corporations in roles ranging from strategic business planning to financial control and capital management. Content Part One » Securities. those marked with ° are distance learning only. risk management. debt and equity finance. Students will gain an understanding of the wide range of corporate finance services and corporate transactions businesses face. venture capital and mergers and acquisitions. financial planning.ac. For full explanation of credits see ‘Credits explained’ box on page 8. . dividend policy and capital structure. Such professionals also need a clear insight into related fields including accounting. Graduate destinations Our postgraduate degree in Corporate Finance provides all the theoretical and practical knowledge necessary to build a successful career. The degree helps students develop key skills in the areas of investment and capital budgeting decisions. private equity. capital budgeting. Modules marked with an * are not available on a distance learning basis. Futures and Options » Fixed Income and Equity Investment » Quantitative Methods for Finance » Financial Analysis Part Two (Compulsory) » Corporate Finance Part Two (Optional) Choice of a minimum of 40 credits from: » Commodity Derivatives » Corporate Governance† » Enterprise Valuation† » Mergers and Acquisitions†* » Strategic Planning and Budgeting† » Venture Capital† » Plus a choice of up to 40 credits may be chosen from the ICMA Centre Annual list of Part 2 optional modules for the relevant year of entry. including management consultancies and accountancy practices. Graduates may also choose to join small. Professional development Students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate.uk/cf Overview This degree offers an introduction to all aspects of the dynamic sector of corporate finance. There is a demand for professionals who combine an understanding of the financial markets with knowledge of the financial decisions facing companies in their day to day operations. MSc CF students are also eligible for exemption from paper 2 of the SII Certificate in Corporate Finance. corporate governance and mergers and acquisitions are explored with hands on sessions and extensive use of case studies. There are still interesting prospects for property investment – private funds are continuing to find opportunities whether they are in “distressed property” or in specialised niche markets and development projects. those marked with ° are distance learning only. therefore the course has been designed to combine both quantitative competence and institutional application thereby arming students with the theoretical and practical skills essential to succeed. specialist hedge funds. Students will develop the skills to evaluate real estate investment projects and understand how financing packages are constructed and marketed. those marked with † are 10 credits. Challenging careers specialising in the real estate sector are also open to our graduates with fund managers. how real estate assets are incorporated in financial decision making within the firm and how property management can enhance or inhibit corporate profitability. The real estate modules are jointly taught with colleagues from the School of Real Estate and Planning. For full explanation of credits see ‘Credits explained’ box on page 8. it is really important for people to be educated in the risks and rewards of property markets. . property investment firms. Alternatively. Many of the securities and derivatives being developed in the real estate market rely on key financial models.uk/fre Content Part One Overview This degree prepares graduates for a career in the financial markets with a specialism in real estate. Students will explore capital markets with an emphasis on how financial principles and tools are applied to real estate business. Because of the current crisis in the credit and real estate markets. how property fits into the multi-asset portfolio and the many institutional features of real estate investment that make it both attractive and different when included in institutional portfolios. » Securities. Hedging and Trading » Ethics in Finance† » Financial Econometrics » Financial Regulation and Regulatory Policy† » Foreign Exchange and Money Markets* » Hedging* » Interest Sensitive Securities° » Liquidity Risk†* » Market Risk » Portfolio Management » Essentials of Financial Engineering† » The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts† » Research Project » Stock Index Futures† » Topics in the History of Finance†* » Trading and Exchanges° » Volatility Analysis » Real Estate Finance » Real Estate Investment » Real Estate Securities » International Securities Markets † † Professional development Students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate. Futures and Options » Fixed Income and Equity Investment » Quantitative Methods for Finance » Financial Markets Part Two (Compulsory) † Part Two (Optional) Choice of 50 credits from: » Advanced Methods for Financial Research†* » Bond Market Pricing and Trading Strategies* » Commodity Derivatives » Empirical Market Microstructure†° » Enterprise Valuation† » Derivatives Securities: Pricing. you may choose to use the broad financial knowledge you will acquire to work with a bank or other finance company in a less specialised role.icmacentre. brokers and in research organisations. which is one of the top five real estate departments in Europe.ac.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 13 MSc Finance and Real Estate (FRE) Offered in conjunction with the School of Real Estate & Planning Learning options FT FL DL www. Graduate destinations This degree will equip graduates to pursue rewarding careers with investment banks and the real estate divisions of other financial institutions that finance the development of both commercial and retail properties in the UK and internationally. insurance and life assurance companies. Modules marked with an * are not available on a distance learning basis. equity. For full explanation of credits see ‘Credits explained’ box on page 8. Financial instruments are becoming ever more sophisticated. or a software specialist or a quantitative analyst supporting the traders. derivatives pricing. or with a rating agency. Graduate destinations Many of our financial engineering graduates are now working as Quants in large London banks and other financial institutions. Financial Markets » Derivatives Pricing† » Stochastic Calculus for Finance† » Mathematical and Numerical Methods† » Probability for Financial Engineering† » C++ for Financial Engineering » Topics in Financial Engineering » Equity and Foreign Exchange † † » Interest Rate Derivatives Modelling » Credit Derivatives Modelling » Essentials of Financial Engineering † Derivatives Modelling† † † Part Two (Optional) Choice of 40 credits from: » Advanced Methods for Financial Research† » Bond Market Pricing and Trading Strategies » Financial Econometrics » Hedging » Liquidity Risk† » Market Risk » Portfolio Management » Research Project » Volatility Analysis » A selection of modules from the Department of Mathematics is made available on an annual basis subject to satisfying any pre requisites Modules marked with an * are not available on a distance learning basis. portfolio management. those marked with † are 10 credits. foreign exchange and interest rate derivatives. .icmacentre. You could structure and develop new debt or equity solutions to meet clients funding and hedging needs. and the modelling of credit.ac. Futures and Options » Quantitative Methods for Finance or Part Two (Compulsory) The credit crunch and subsequent events have emphasised the need to develop better pricing and better hedging models for all complex products. or the treasury divisions of leading multinationals and management consultancies. quantitative and numerical methods. Opportunities in quantitative research. that was established in 1999. you might also consider firms involved in commodity and energy trading. or you could become a proprietary trader in exotic derivatives. are among the many other attractive alternatives. » Securities. The high quantitative content of this programme opens many doors to a wide range of careers. Others have pursued PhDs and have successful academic careers. See page 16 for entry requirement details. Optional modules will allow you to focus on risk analysis. so graduates that understand complex modelling techniques are always in great demand. stochastic calculus. structuring products. designing trading strategies or econometric analysis. Our compulsory modules provide a firm grounding in probability theory. as well as in investment banking and in software analytics. those marked with ° are distance learning only. We also provide a thorough training in C++ and other programming tools. The practical and quantitative skills that you will develop on the ICMA Centre’s Financial Engineering MSc will equip you to meet this challenge. There are excellent opportunities on the buy-side. Outside of mainstream banking and investment.14 | ICMA CENTRE | MASTERS DEGREES IN FINANCE MSc Financial Engineering (FE) Offered in partnership with the Department of Mathematics Learning options FT www. This newly structured degree aims to further enhance the strong reputation of its precursor – the MSc in Financial Engineering and Quantitative Analysis. A good background in mathematics is required for acceptance to this programme. with hedge funds and investment institutions. volatility analysis.uk/fe Content Part One Overview The ICMA Centre’s financial engineering degree is highly respected by quantitative analysts and their employers. trade finance. MSc IBIF students will also be supported in achieving the SII Islamic Finance Qualification – see website for more details. The degree will not require any previous knowledge of Islamic Law or specific Islamic concepts but will address and explain the respective current issues within their overall Islamic economic and legal context. Implementation and Risk Aspects of » Theory and Ethics in Islamic Economics » Essentials of Financial Engineering » The Principles of Islamic Commercial † Islamic Financial Products and Services and Finance† » First degree in the UK with Islamic material taught by Islamic specialists There is a growing demand from financial institutions worldwide for specialist professionals trained in the techniques of Islamic Finance.uk/ibif Content Part One Graduate destinations Graduates will benefit from a thorough understanding of Western banking practices allied to the principles of Islamic Finance. investment managers. » Securities. It is the first degree in the UK focussing wholly on finance to be offered in partnership with a leading teaching and research centre of Islamic finance. This 12 month programme is taught jointly with INCEIF (International Centre for Education in Islamic Finance). Among the teaching staff are two leaders in the field of Islamic Finance: Professor Rifaat Ahmed Abdel Karim who is the Secretary-General of the Islamic Financial Services Board (IFSB) and Professor Simon Archer whose research focuses on Islamic financial institutions. those marked with † are 10 credits. those marked with ° are distance learning only. Modules marked with an * are not available on a distance learning basis. We expect our graduates will pursue rewarding careers with investment banks in a diverse range of fields. Professional development The degree covers the materials necessary to qualify for Part 1 of the Chartered Islamic Finance Professional (CIFP) Part 1. including corporate and project finance. sales and trading. In addition students who successfully complete this degree including the module International Securities Markets will be granted the ICMA International Fixed Income and Derivatives (IFID) Certificate. consultancies and the finance divisions of multinational corporations.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 15 MSc Investment Banking and Islamic Finance (IBIF) Overview This degree is designed to give expertise in both “conventional” and Islamic finance. Kuala Lumpur and has many key benefits including: Learning options FT www.icmacentre. they will be well-qualified to join specialist Islamic financial institutions. specialist structured products and derivatives. In addition. » Financial Regulation and Regulatory Policy Part Two – Kuala Lumpur Jurisprudence and the Nominate Contracts† † or International Securities Markets† or Topics in the History of Finance† † » Professional qualification from INCEIF » Three months study in an Islamic country and the opportunity to take an internship with an Islamic bank. Futures and Options » Fixed Income and Equity Investments » Financial Analysis » Financial Markets » Introductory Quantitative Methods (not for credit) Part Two – Reading » Design. » Islamic Financial Institutions and Markets » Wealth Planning and Management » Deposit Mobilisation and Financial Management » Students must study all modules in Kuala † † Lumpur but may substitute the Research Project (20 credits) in place of the examinations of two 10 credit modules from the Part Two – Kuala Lumpur modules. regulatory agencies. . It provides students with a thorough understanding of the similarities and differences between these approaches to the common need to raise capital and resource for firms’ activities.ac. For full explanation of credits see ‘Credits explained’ box on page 8. icmacentre.ac.uk/entry_ requirements for details.icmacentre. If you have any queries or would like to discuss any aspect of the degree or admissions process in more detail please call our Admissions Officer on +44 (0) 118 378 6406 or email admissions@icmacentre. with no significant weaknesses in any component of the test. Any discipline – no quantitative requirement. All distance learning and flexible learning programmes must be applied for online only. Academy of Economic Studies Scholarship The ICMA Centre is pleased to announce up to five scholarships of a maximum of £15. Minimum 2:1 or the equivalent from an overseas institution.uk/scholarships_and_prizes. Scholarships ICMA Centre Scholarships Scholarships are available for all our full-time MSc programmes.16 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Entry requirements Courses MSc Corporate Finance MSc Finance and Real Estate MSc Financial Risk Management MSc Investment Management MSc International Securities.icmacentre. No requirement. Any degree discipline. We advise that applications are submitted by July.000 to students on the basis of academic excellence. .uk/entry_ requirements for details. Internet-based: 88.5 or better.uk. This unique Scholarship includes 50% of all tuition fees and an optional 1-2 months summer training within Solidus Securities SA in Athens. We offer several awards of up to £15. *Requirement for MSc Financial Risk Management is for a good existing level of numeracy. but must have a satisfactory* existing level of numeracy. English Language Requirements: For all courses IELTS – 6. How to Apply You can apply online at www. GMAT May be required – check www. Solidus Securities MSc Scholarship This is awarded annually to one Greek applicant to any full-time MSc programme at the ICMA Centre.000 for our full-time Masters programmes are now available to students studying at the Academy of Economic Studies in Bucharest. Computer-based: 230. Investment and Banking MSc Financial Engineering MSc Capital Markets.ac.uk/applyonline or via our printed application form. May be required – check www. Greece.ac. TOEFL – Paper-based: 570. with TWE of 5. Regulation and Compliance MSc Investment Banking and Islamic Finance Undergraduate Degree Degree Discipline Minimum 2:1 or the equivalent from an overseas institution. Further information including application criteria and deadlines can be found at www. Mathematical and engineering degrees are preferred.icmacentre. Minimum 2:1 or the equivalent from an overseas institution.ac.ac. Quantitative discipline – must have a very good existing level of numeracy. and the theoretical issues that arise in those contexts. The module is heavily based on case studies and real world compliance issues and problems. credit ratings and credit scoring models. The Practice of Financing. understand how new security issues are made. It examines the aspects of pricing and trading physical derivatives and their complexity relative to financial derivatives. and examining how those decisions influence the market’s valuation of companies. credit risk management tools and credit risk capital regulation (Basel II). appreciate the legislative and regulatory approaches to governance. understand how companies manage working capital and how companies manage risk. In addition. learn how to monitor developments in interest rate markets and employ commonly used trading strategies. Secured and Unsecured Financing. Use of Financing Evaluation Techniques in Credit Management. C++ for Financial Engineering Convenor: Daniel Duffy This module teaches essential skills for C++ programming with emphasis on practical applications in financial engineering. Theories and Principles Related to Deposits. Credit Derivatives Modelling Convenor: Leonardo Nogueira This module familiarizes the students with the necessary tools to model credit risk. The Cost of Deposit. In recent years financial institutions have been looking at ways to quantify risk in their corporate loan and mortgage books. identify the major credit derivatives. underlying trends in demographics and government regulation. and describe and analyse some popular trading strategies. analyse the effects of dividend policy and share repurchases on company value. Deposit Mobilisation and Financial Management Convenor: INCEIF (taught in Kuala Lumpur) Explores the mobilisation of deposits by conventional and Islamic banks as well as the savings cost.and long-term interest rates. which will include but will not be limited to: the strategies and approaches of a number of great investors and speculators in various financial markets. The Rules and Regulations Relating to Financing Practices. Credit Risk Convenor: Simone Varotto This course introduces students to a set of newly developed techniques to measure and manage credit risk in bank portfolios. Forecasting Savings. use classes and objects for pricing derivative securities. present and appraise the pricing methodologies. horseracing. By the end of the module. with emphasis on the Energy (Oil) and Shipping (Freight) sectors. determinants and forecasting techniques. The course will be based around the work of a research department in an investment bank when formulating strategy for its proprietary trading desk and hedge fund customers. It will review current research in various areas. Corporate Finance Convenor: Carol Padgett Introduces students to the main financial decisions taken by companies. Current Issues in Investment Management Convenor: John Evans Current Issues in Investment Management is an applied debate on the issues and trends affecting the investment management industry and as such the topics may vary and / or be updated on a year-to-year basis. By the end of the module. Commodity Derivatives Convenor: Konstantina Kappou This module aims to provide students with a detailed knowledge of the Commodity Derivatives Markets. for real world requirements in the industry. and understand the issues involved in empirical testing of the relationship between governance and performance. . Seminars will focus on market pricing conventions and worked examples. Financial Aspects of Financing. Saving Determinants. and analyse their consequences. Bond Market Pricing and Trading Strategies Convenor: Andy Bevan The main aims of the module are to identify the fundamental determinants of short. The purpose is to give the student a clear overview on industry structure and the forces of change – something that has been identified as a key information need by investment management firms in regard to their future management hires. stock and mutual fund selection. Each lecture will provide: (1) a concise outline of economic theory. The Financing Process.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 17 Modules Advanced Methods for Financial Research Convenor: William Ziemba This module will discuss a number of important research topics in finance. how governance varies around the world and explores the potential and actual relationships between corporate governance and performance. apply templates and the inheritance property and use Excel as an interface for C++ programs. Compliance – Theory and Practice Convenor: Gary Tidwell This course complements the Regulation of Markets and Traders module and focuses on the deeper study of both the practice of ‘compliance’ within the markets and institution. how to measure portfolio credit risk using contingent claim and credit rating based approaches. compare governance regimes around the world. it is expected that students will be able to: design and construct simple pricing applications in C++. apply the related mathematical tools. By the end of the module it is expected that students will be able to: undertake investment appraisals in the face of uncertainty. The models are then applied to the valuation and hedging of the essential types of credit derivatives. It explores the different approaches to credit risk analysis. By the end of the module it is expected that students will be able to: understand how merger activity affects corporate governance. (2) practical examples of events in markets from recent years. Although stand alone topics. The course focuses on default and recovery risk. they will be integrated by usage of an industry model for competition such as that advanced by Michael Porter to show the interaction between the various financial players. The main objective is to provide intuitive understanding of quantitative finance and to prepare the students. Deposit Mobilisation by Conventional Financial Institutions. The lack of market prices for these types of illiquid assets implies that standard risk assessment procedures can not be employed. and Financing Risk. typical trading strategies in the credit markets are analysed. through small assignments and projects. Corporate Governance Convenor: Carol Padgett This module introduces students to the concept of corporate governance. Deposit Mobilisation by Islamic Banks. and (3) identification of trading strategies. futures and options. it is expected that students will be able to: describe and analyse the main approaches in modelling credit risk. Topics include: Functions of Deposits in the Economy. The Functions and Roles of Credit and Financing in the Economy. value investing and hedge fund investing. in particular options. this module examines a number of additional techniques that are relevant for financial applications. By the end of the course students will appreciate the ethical standards imposed by professional bodies and financial regulators. Financial Instruments Convenor: Leonardo Nogueira This course is aimed at the synthesis of the finance theory that they have learned in Part I of their MSc. The emphasis of the module is on practical application and it is expected that by the end of the module students will understand and be able to analyse the time / risk dynamics of derivatives in a trading environment. Topical issues are addressed in a systematic way to discuss the principles of financial engineering. industry analysis. The final objective is to bring together these various disciplines into a single framework for analysis. and in particular for modelling and forecasting financial time series. as well as the risk characteristics of these products and services. Identifies the ethical dimension involved in the decision-making process and the conflicts between economic efficiency and ethical behaviour.18 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Modules Derivatives Pricing Convenor: Emese Lazar The aim of the module is to convey the basic concepts and analytical methodology for the valuation of derivatives in the standard Black-Scholes framework. describe what is meant by an incomplete market and how this affects the pricing and hedging of options. the valuation of companies based on projective cash flows and how information asymmetrics affect valuation. Implementation and Risk Aspects of Islamic Financial Products and Services Convenor: Simon Archer Provides students with the opportunity to study the application of Shari’ah principles and nominate contracts in the design of financial products and services that are Shari’ah compliant. namely stochastic volatility and jumps. in a derivatives business and use this as a platform for further research. Enterprise Valuation Convenor: Carol Padgett Introduces techniques used to measure corporate performance and / or value companies. micro-economics. It also reviews some exotic instruments and the techniques for their pricing and hedging. Students will find that the Financial Instruments course will fuse together their knowledge of finance that is gained in Securities. with their knowledge of markets obtains in the Financial Markets course and their understanding of Quantitative Methods for Finance. Design. Ethics in Finance Convenor: Carol Padgett Introduces different schools of ethics and provides the framework needed to identify ethical and non-ethical responses to choices faced in the finance industry. (Available via Distance Learning only). However. it is expected that the student will be able to: derive the price and the hedging parameters for a variety of equity based derivatives. Derivative Securities: Pricing. work in a support function. Ethics in Investment Management Convenor: Carol Padgett Introduces ethical difficulties encountered by investment professionals as they invest other people’s money. outline simple exotic instruments and propose techniques to price them. An introduction to the method of maximum likelihood estimation will be given. Hedging and Trading Convenor: Michael Smith The module objective is to give students a practical working knowledge of the pricing. innovative approach to financial engineering from a practical point of view. By the end of the module. such as product structuring. part of the course focuses on financial statement analysis and then looks to apply this framework to the corporate valuation decision. price and hedge options in the presence of jumps and / or stochastic volatility. hedging and trading of derivative securities. and emphasis will be placed on modelling volatility and its prediction. measuring transaction costs and market liquidity and evaluating market fragmentation. By the end of the module. via the use of trading simulations and pricing case studies / software. and be able to discuss the conflicts between economic efficiency and ethical behaviour. with particular reference to Islamic banks and insurance (Takaful) undertakings. Case studies from the academic finance literature are employed to demonstrate potential uses of each approach. Financial Econometrics Convenor: Alfonso Dufour Building on the material introduced in Quantitative Methods for Finance. financial statement analysis and the second . The focus is on major applications in interest rate. Investigates the ethical standards imposed by financial regulators. Futures and Options. Extensive use is also made of financial econometrics software to demonstrate how the techniques are applied in practice. Equity and Foreign Exchange Derivatives Modelling Convenor: Leonardo Nogueira This module introduces extensions to the Black-Scholes framework to accommodate the empirical evidence from equity and FX markets. The analytical techniques taught in this course are very applied. The first part of the course takes the student through macro-economics. Financial Analysis Convenor: John Evans Financial Analysis provides a comprehensive study of ‘top-down’ fundamental analysis and then allows one to take this framework and apply it to the valuation of financial securities. They will be able to identify the ethical dimension involved in the decision-making process. it is expected that students will be able to: outline the possible extensions to the Black-Scholes model. transaction costs and liquidity risk can be appropriately managed only if they can be measured. forex and credit markets. to allow successful candidates to apply directly to industry either the analysis section (as an equity analyst would do) or the usage of the relative value results as a fund manager or trader would do. and differentiate between dynamic replication and static replication of exotic options. digest literature on equity based derivatives at the introductory level. Essentials of Financial Engineering Convenor: Dr Marcel Prokopczuk An applied. Examines the calculation and explanation of a variety of performance measures. The objective of this course is to give students an introduction to state-of-the-art econometric techniques for analysing trade data. Empirical Market Microstructure Convenor: Alfonso Dufour In the trading industry there is an increasing awareness of the importance of transaction costs and liquidity risk management. ‘repo’ markets (for borrowing / lending on a secured basis). Foreign Exchange and Money Markets Convenor: Richard Comotto The basic aim of this module is to equip students with a firm understanding of the structure and operation of the foreign exchange and short-term interest rate markets. Hedging Convenor: Jacques Pézier Designed for students seeking a career in ‘front office’ risk management whether in banks. securities and derivatives markets. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. and develops practical strategies for finding its value and assessing its risk. Fixed Income and Equity Investments Convenor: John Evans Applies general valuation methods to specific financial instruments: fixed income and equity securities. The Islamic Financial Institutions (Covering History & Organisation. including the balance between official and self-regulation. International Securities Markets Convenor: John Evans International Securities Markets applies general valuation risk assessment methods to: fixed income securities. funding issues. Mechanism. Students will be given the opportunity to trade various money market instruments on simulated electronic markets. price interest rate products and equity derivatives under a stochastic interest rate. Islamic Financial Markets (Covering Function & Organisation. digest the literature on interest rate modelling at an the introductory level. work in a support function. The Islamic Financial System of Selected Muslim Countries. Topics include: Functions of Financial Institutions and Markets. Corporates can reduce uncertainty by hedging away financial risks that fall beyond their areas of competence. but will also introduce and illustrate a number of key financial concepts such as balance sheet constraints. no-arbitrage pricing and arbitrage. Interest Rates Derivatives Modelling Convenor: Leonardo Nogueira Conveys the basic concepts and analytical methodology for interest rate modeling and the valuation of interestbased products. it is expected that the student will be able to: work with some of the state-of-the-art interest rate models. where the core activity is financial risk management. finally specific markets for commodity and energy are studied in more detail.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 19 Financial Markets Convenor: Alfonso Dufour Knowledge of global financial markets. such as product structuring. It describes the basic characteristics of each fixed-income security. An Overview of the Global Financial System. the importance of liquidity. It considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited to form an optimal investment strategy. By the end of the module. Islamic Financial Institutions and Markets Convenor: INCEIF (taught in Kuala Lumpur) Develops deeper analytical and theoretical insights of the two main components that constitute the Islamic financial system and a full comprehension of the various financial systems and institutions that operate in the Muslim countries. The module has a strong practical flavour. The focus is on prudential regulation that is designed to maintain systemic stability while also protecting depositors. and The Monetary Authority / Central Bank. and to futures markets. The History and Development of Islamic Financial Institutions. Regulators & Regulations and Development). liquidity. cash and underlying. The module explores a number of key regulatory policy issues. an introduction to foreign exchange and money markets. the nature and scope of ‘moral hazard’ in financial markets and alternative approaches to capital adequacy assessment. The Similarities and Differences of Islamic Financial Institutions in Selected Muslim Countries. It describes the basic characteristics of each security and develops practical strategies for finding its value and assessing its risk. This will not only provide the technical knowledge required to trade in or use those markets. the distinction between exchange versus OTC markets. fund management or corporate treasury. Hedging is financial risk management in action. in a derivatives business and use this as a platform for further research. investors and counterparties in banking. it is often cited as the raison d’etre of derivatives markets – trading and arbitrage playing the supporting roles of providing liquidity and keeping prices fair and thus facilitating hedging. Financial Regulation and Regulatory Policy Convenor: Richard Dale This module aims to provide both a theoretical basis for financial regulation and a description of its practical application. fund managers can design hedge strategies that provide risk / reward profiles tailored to their clients. . Function and Product & Services). It develops general trading strategies for each type of security. primary and secondary markets and the role of intermediaries in their various forms. but it is in banking. The analytical techniques introduced in this module are applied to allow the successful candidate to apply directly to industry the more theoretical market valuation and risk models learned in other core modules taken in the first term. derivatives and markets. Participants will gain an understanding of: international stock and bond markets. that efficient hedging makes the difference between success and failure. valuing portfolios. adjusting its composition through time to ensure that its performance remains optimal. . estimate and evaluate a number of different approaches to the valuation and pricing of real estate investments. Explores the application of general approaches to cash flow appraisal and considers the main issues in incorporating real estate into the portfolio management of mixed assets. widely used in leasing transactions yet hardly figures in any corporate finance textbook. using computer programmes. Students apply these skills to the fundamental problems in finance. pricing and hedging options. Examines the specific characteristics of real estate securities and derivatives and how they are incorporated into mixed asset portfolios. Regulation of Markets and Traders Convenor: Gary Tidwell The module offers an in depth understanding. (2) how to identify and value synergies. statistics. Namely. Mathematical and Numerical Methods for Derivatives Convenor: Emese Lazar This module introduces students to the mathematical tools needed for derivatives pricing. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. commercial jurisprudence.20 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Modules Liquidity Risk Convenor: Alfonso Dufour The evolution of algorithmic trading. linear algebra. The objective of this course is to give students an introduction to liquidity and execution risks and an overview of the methods for managing these risks. why companies are selling it and how it is affected by mergers and take-overs. Real Estate Finance Convenor: Charles Ward Aims to apply some key corporate finance issues using real estate as the core example. probability and regression. Market Risk Convenor: Emese Lazar This module provides an understanding of the Value-at-Risk (VaR) framework for market risk assessment and control. market manipulation. The module has a significant practical component with computer-based workshops that are designed to support the lecture material. Real Estate Securities Convenor: Charles Ward Develops understanding of how real estate is securitised and valued. and (3) how to finance an acquisition. Probability for Financial Engineering Convenor: Tobias Kuna This module introduces students into the mathematical tools of probability underlying the understanding of probabilistic approaches to finance and necessary for understanding stochastic analysis. Real estate is one of the most important assets held by companies. Selected case studies will help students become familiar with the practical aspects of the deal making process. the IFSB Guidelines on Shari’ah governance. Examines what makes real estate different. the frequently used nominate contracts. Futures and Options Convenor: John Board Introduces techniques for analysing and valuing different classes of risky assets. overview of Islamic financial products and their basis in nominate contracts. Finally. it covers basic concepts and methods of modern probability placing emphasis on presenting the methodologies and the possible applications in finance. The theoretical part will examine the issues involved in constructing an investment portfolio. Portfolio Management Convenor: Jacques Pézier The module builds on the techniques for portfolio selection that were introduced at Part One. and it will consider the use of derivatives in managing risk. it is used as security for more debt than any other asset. maysir (speculation). Participants study. liquidating large positions and transitioning assets to new investments. It addresses both the theory and practice of portfolio management. and complete a comparative analysis of the regulatory law in a number of jurisdictions including both developed and developing countries. portfolio volatility. it covers special topics in calculus for finance. and gharar (uncertainty or ambiguity of subject matter)). breach of fiduciary duty. Topics include: the origins of Islamic Real Estate Investments Convenor: Charles Ward Develops the ability to describe. Research Project Convenor: Charles Sutcliffe The aim of the research project is to allow students to define and execute a piece of research in finance on a topic of their choice. Explores (1) several corporate valuation methods. portfolio beta and simulation. Securities. The practical part will provide students with handson experience of constructing and managing an equity portfolio. of market regulation and its different philosophies. the proliferation of alternative trading platforms for trading the same security and the development of new products and assets with limited liquidity have contributed to raising the awareness of academics and traders of the importance of understanding and properly managing liquidity and execution risks. and manipulative practices. The issues discussed in this course are important when developing trading strategies. Namely. evaluating it’s performance. the numerical implementation of the models covered in “Derivatives Pricing”. optimization and The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts Convenor: Simon Archer Provides students with the opportunity to study the juristic basis of Islamic finance. insider dealing. prohibitions to be respected in order for Islamic contracts to be valid (Avoidance of riba (pure return on money). Mergers and Acquisitions Convenor: Simone Varotto Introduces students to the technical and practical aspects of M&A deals. including basic principles of calculus. with direction from an academic supervisor. The module puts emphasis on presenting the methodologies and the possible applications will also be covered. Shari’ah governance of Islamic financial institutions. and the nominate contracts that are set out in Islamic commercial jurisprudence (the Fiqh al Muamalat). The theory is illustrated by numerous examples and Excel spreadsheets. such as compounding interest. Explores the appropriate models for valuing and pricing securities and derivatives. The techniques introduced in this module are widely applied in other elements of the programme. It also presents the latest methodologies in calibration and interpolation. Students will understand the links between regulation and compliance and the most common regulatory charges including: fraud. students will have full exposure to the regulatory process of becoming “publicly held” as well as the reporting requirements of a publicly held company. Quantitative Methods for Finance Convenor: Carol Alexander Gives a thorough grounding in essential mathematical methods used in finance. The module also evaluates recent advances in real estate research in securitisation. how futures are traded. Investment in Securities. relevant institutions and the code of conduct for professionals involved in this industry. and Issues Related to Wealth Planning and Management. accounting. Theory and Ethics in Islamic Economics and Finance Convenor: INCEIF Provides students with a critical understanding of Islamic economy by considering the implications of the application of Shariah law for the economic and financial systems. and which have been the subject of extensive academic research. Topics in Financial Engineering Convenor: Jacques Pézier Designed for future quants and financial engineers to introduce them to the main types of problems they will be asked to solve and to make them aware of the range of issues they will have to consider. Wealth creation and mobilisation. Retirement Planning. This course helps the student understand how security markets work and how they are regulated. Wealth Planning and Management Convenor: INCEIF (taught in Kuala Lumpur) Introduces students to the best ways of managing. This module also discusses the issues related to wealth planning such as tax matters. tax and regulatory matters as well as risks and returns. Financial engineering is the art of designing and implementing innovative solutions to financial problems. the ability to negotiate a term sheet and final shareholders agreement. expansion or a management buyout proposition. how futures can be used for hedging the price risk of the underlying. This module covers the real world processes involved. (Available via Distance Learning only). This course explores a number of typical problems faced by both financial and non-financial institutions for which a range of solutions. often using derivative products. Stochastic Calculus for Finance Convenor: Department of Mathematics Presents the basics of stochastic calculus for Brownian motion as used in contemporary finance. Students will also gain a thorough understanding of the interaction between the separate statements within a financial model. Estate Planning. and understand the theoretical concepts of stochastic integration. Investment in Real Estate. in an elementary fashion with plenty of practice. The focus is on the understanding of market performance key factors such as efficiency. the investment process and how private equity firms appraise. Taxation Planning and Management. . Students are provided with a framework for comparing and contrasting existing market structures. taking into account legal. It has a high quantitative content and a significant practical component with computer-based workshops (face-toface and distance) designed to support the material. Wealth (Asset) Allocation Process. In each case we examine the feasibility and relative advantages and disadvantages of alternative solutions. the current issues and challenges facing the private equity industry and how the industry is structured. transparency and liquidity. Volatility Analysis Convenor: Carol Alexander This module provides an in depth understanding of the different approaches to modelling financial market volatility in discrete and continuous time. and the various uses that fund managers make of these derivative instruments. investing and distributing wealth in accordance with the Islamic laws. and the Concept of money. then students learn how market makers set spreads and quotes. pricing futures from an arbitrage relationship.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 21 Strategic Planning and Budgeting Convenor: Richard Thornton Introduces students to the practicalities of developing and utilising financial models with a view to achieving the strategic objectives of an organisation. Topics include: Functions of Deposits in the Economy. Topics include: Scope of Islamic economics and finance in relation to conventional economics and finance. and with a broader appreciation of the early development of products and innovations in Finance – which many assume are recent twentieth century inventions. Contributions by Islamic economists or Muslim thinkers. structure and monitor their deals. Topics in the History of Finance Convenor: Adrian Bell This module aims to provide students with an understanding of the origins of Financial Markets. it is expected that the student will be able to work with the principal stochastic differential equations that are used in derivative modelling and other areas of quantitative finance. Nature and Scope of Wealth Planning. risk and returns from an Islamic perspective. and the pricing of IPOs and rights issues. preparing a business plan for the purpose of raising finance. History of the Islamic economic system in various eras. exit routes and how private equity firms make a return on their investments. Stock Index Futures Convenor: Charles Sutcliffe This module covers the construction of stock market indices. The module will focus on GARCH statistical models and the local and stochastic volatility models that are now in standard use by leading industry practitioners. venture capital and debt finance for a private company and subsequently taking the private company public. By the end of the module. and issues in raising private equity and loan finance. is possible. Insurance and Takaful Scheme. Trading and Exchanges Convenor: Alfonso Dufour Provides students with an overview of exchanges and trading mechanisms and an introduction to modelling market player behaviour and trade price dynamics. Venture Capital Convenor: Keith Arundale Develops students’ appreciation of the practical aspects of raising private equity. Regulation Professor Brian Scott-Quinn Specialisms: Bank Governance and Regulation. Hedge Funds Professor Chris Brooks Specialisms: Financial Econometrics. Credit Analysis. Market Risk. Corporate Governance Mr Richard Comotto Specialisms: Money Markets. Evans CFA Specialisms: Investment Management. Capital Markets and Regulation) Mr John D. Hedging and Trading) Keith Arundale Specialisms: Private Equity and Venture Capital Dr Konstantina Kappou Specialisms: Commodity Derivatives Professor Charles Sutcliffe Specialisms: Stock Index Futures. Derivatives. Trading Systems and Portfolio Optimisation Professor Charles Ward Specialisms: Property Investment and Finance Professor William Ziemba Specialisms: Security Market Imperfections. Fixed Income. Risk Management. CFA Specialisms: Asset Pricing. Investment Management. Volatility Modelling Dr Simone Varotto Specialisms: Credit Risk. Option Pricing. Regulatory Policy Dr Marcel Prokopczuk. Insurance. Investment.S T Bond Trading. Risk Management. Foreign Exchange. Corporate Strategy Dr Michael Smith Specialisms: Equity. Structured Credit Dr Emese Lazar Specialisms: Financial Econometrics. Risk Management Dr George Alexandridis Specialisms: Mergers and Acquisitions. Volatility Modelling. but also with an effective bridge to link this theory to practice through challenging live trading sessions and portfolio construction and management cases. Asset Pricing. Financial Engineering “The course provided me not only with a solid theoretical foundation for the complex world of high finance and investment.” Qutaiba Hawamdeh | 2002 Graduate Head of Asset Management | AB Invest . Hedging. Spot FX and U. Great Investors. Equity Valuation. Corporate Finance Dr Alfonso Dufour Specialisms: Financial Econometrics. Football Finance Professor Rifaat Ahmed Abdel Karim Specialisms: Islamic finance Mr Gary Tidwell Specialism: Regulation and Compliance Dr Andy Bevan Specialisms: Fixed Income. Asset and Wealth Management Professor Simon Archer Specialisms: Islamic Finance (Banking. Bank Regulation Professor John Board Centre Director Specialisms: Market Regulation Dr Leonardo Nogueira Specialisms: Derivatives: Pricing and Hedging. Derivative Securities (Pricing. Financial Analysis. Historical Finance Dr Carol Padgett Specialisms: Corporate Finance. Pension Schemes Dr Adrian Bell Specialisms: History of Finance. Dynamic Investment Analysis. Credit Derivatives. Securities Financing Dr Jacques Pézier Specialisms: Investment Management. Quantitative Finance Professor Richard Dale Specialisms: Financial Regulation.22 | ICMA CENTRE | MASTERS DEGREES IN FINANCE Faculty Professor Carol Alexander Specialisms: Volatility Analysis. Repo. Market Microstructure. Commodity Markets. With its green open spaces. The University is currently undertaking a huge capital investment in facilities as part of its ten year development plan designed to enhance the university’s academic activity. Alongside the ICMA Centre. to deliver tailored programmes aligned to critical challenges for the future. It is home to a broad range of undergraduate degree and postgraduate Masters programmes. This is the heart of university life and provides a special sense of community. rare trees and wildlife it is an exceptional environment in which to study. The University is conveniently located for central London with high speed trains from Reading to London Paddington with a journey time of only 25 minutes. Research expertise within the School spans areas that include town planning. micro and macroeconomics and urban and regional economics. 3M to Microsoft. and enhanced sports and recreation provision. A regular coach service also connects the campus with the City and Heathrow Airport. Work includes redevelopment and building of new halls of residence. alongside a thriving PhD programme. For further information on Henley Business School at the University of Reading please visit www. The University offers excellent sports facilities and at the hub of Whiteknights is the very popular Reading University Students’ Union (RUSU).reading. shopping and a ready-made social life. School of Management The largest unit within Henley Business School. best-known and successful campus-based universities. Everything you need is here or within walking distance. marketing and international management. the world-ranked Henley MBA and our DBA (Doctor of Business Administration) and PhD doctoral programmes. Its state-ofthe-art award-winning entertainment venue. is a prime example of the Universities’ ongoing investment in first-class facilities. it provides easy access to services.MASTERS DEGREES IN FINANCE | ICMA CENTRE | 23 Introducing Henley Business School One of Europe’s largest full-service business schools. The School also welcomes high quality PhD candidates from all over the world. and ranked among the top 200 universities in the world (The Times). Henley Business School comprises four other distinctive units: School of Economics One of the world’s premier centres for teaching and research in international business. from undergraduate degrees to executive education. from human resource management to entrepreneurship. Henley Business School is the world’s third largest provider of MBA education. Established over 100 years ago.henley. business administration. urban and rural planning and real estate finance and investment. The School of Management’s research expertise spans a broad range of areas. available on a full-time. econometrics. The pragmatic yet innovative programmes are tailored to service the rapidly evolving needs of modern business at every level. the School of Management’s offering includes a wide range of undergraduate degree and postgraduate Masters programmes in areas such as accounting. executive and distance learning basis. real estate appraisal. strategy and coaching. University of Reading The University of Reading is an internationally renowned university. AACSB). the School provides a leading range of undergraduate degree and postgraduate Masters programmes. new teaching facilities. tailored qualification and tailored non-qualification programmes. live and relax. lake. the School of Real Estate & Planning is consistently ranked among the world’s top 3 in all major league tables. 3Sixty. Its research strengths lie in areas that include economic development and emerging markets. A hive of activity day and night. It is home to the world-ranked Henley MBA. leadership and change to strategic management. sustainability. from IBM to Shell. US and Europe (AMBA. Our main Whiteknights site is set in 130 hectares of beautiful parkland. Henley works closely with a wide range of leading global organisations.ac. all of which are accredited by the Royal Institution of Chartered Surveyors (RICS). it is situated within its own 300 acre landscaped campus near the centre of Reading and remains one of the UK’s largest. School of Real Estate and Planning The UK’s largest centre for real estate education and research. Henley is ranked second in the UK for the quality of participants on open programmes. which centre on areas including leadership. Henley is also one of the very few international business schools to hold triple accredited status from the major awarding bodies in the UK. EQUIS.uk . encompassing our specialist postgraduate Masters programmes. The School is also the largest producer of DBA graduates in Europe and operates a successful PhD programme. It will ensure the University of Reading continues to be regarded as one of the leading universities in the UK and internationally. Executive Education Our Executive Education division delivers leading-edge open executive development. uk. You can also book individual appointments if these dates are not convenient.uk/open_days.ac.uk The ICMA Centre is supported by the International Capital Market Association. Academic Programmes: BSc Finance and Investment Banking PhD Programme Executive Education: FINRA Capital Markets.icmacentre. Regulation and Compliance Short Courses and Diploma ICMA Financial Markets Foundation Certificate (FMFC) ICMA International Fixed Income and Derivatives (IFID) Certificate Programme ICMA Operations Certificate Programme (OCP) ICMA Primary Market Certificate (PMC) PRM Professional Risk Manager Certification Programme ICMA Centre Workshop Series Simulated Trading Days Tailored Training Programmes TM ICMA Centre. the trade association and market regulator for member organisations active in the global securities market. UK T: +44 (0)118 378 8239 F: +44 (0)118 931 4741 E: [email protected] .For more information For more information regarding the ICMA Centre or any of our programmes please call +44 (0)118 378 8239 or email [email protected] www. RG6 6BA. University of Reading.ac. The skills learned are immediately applicable to the workplace and hugely beneficial in the long term.icmacentre.ac. We have several open days during the year – dates and timetables are available at www. Designed by goode.” Nicholas Burgess | Graduate 2006 Global Market Valuations Associate | Deutsche Bank AG Also available at the ICMA Centre Further information regarding all of our programmes can be found on our website where you can also request brochures which are of interest to you. Whiteknights. “An excellent life changing experience and an essential introduction to financial markets. Reading.ac. Henley Business School.