Module FINN2021: Financial Markets and Institutions

Department: Finance

FINN2021: Financial Markets and Institutions

Prerequisites

• Foundations of Finance (FINN1011)

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• To provide students with a knowledge and understanding of the economic principles governing the operation of a financial system.
• To develop students’ knowledge of the structure of financial markets and institutions and understanding of how and why institutions operate in financial markets.
• To provide students with the opportunity to develop knowledge and understanding of theoretical and practical aspects of primary and derivative financial markets.
• To encourage students to analyse the role of regulation within financial markets.
• To develop students' ability to evaluate academic literature relating to financial markets.

Content

• Overview of the financial system;
• Types of financial intermediaries;
• The banking industry;
• Mutual Funds and Hedge Funds;
• Financial regulation;
• Central banks and the conduct of monetary policy;
• Money markets;
• Bond markets;
• Foreign Exchange markets;
• Introduction to derivative markets and financial risk management;
• Introduction to options markets;
• Properties of options;
• Trading strategies and hedging positions;
• Forward and futures markets;
• Swap markets;
• Securitisation and its role in the 2008 financial crisis.

Learning Outcomes

• On completion of this module students should have:
• knowledge of the way in which financial systems operate;
• an understanding of the functions of financial institutions and financial markets;
• knowledge and understanding of key issues in derivative securities and markets particularly as regards their role in hedging, speculation and arbitrage;
• an understanding of the importance of unethical conduct in financial markets and the role of regulation.

• On completion of this module students should:
• have developed technical and academic skills to analyse the operation of financial markets and institutions and the role of regulation;
• have the ability to examine practical issues, practice problem-solving and analysis in the study of primary financial and derivative markets and securities.

• In addition, students will have had the opportunity to further develop the following key skills:
• written communication - through the summative assignment;
• planning and organising - observing the strict assignment deadlines; revising relevant material in preparation for examination;
• problem solving - by applying the necessary analytical and quantitative skills, as well as the ability to utilise concepts relating to financial markets, in preparation for examination and assignment;
• initiative - by searching relevant literature and information in preparation of the summative assignment;
• numeracy - by applying core mathematical and statistical skills to answer a range of examination questions;
• computer literacy - by word-processing the summative assignment; downloading assignment information and notes for revision and past exam papers from Learn Ultra; analysing financial data provided on Bloomberg terminals.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and small group sessions. Learning takes place through attendance at lectures, preparation for and participation in seminars and independent study.
• Formative assessment is by means of a group presentation and report, and online test.
• Summative assessment is by means of an examination plus a written assignment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Group presentation and report.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University