**POSTPONED**Familiarisation Programme For Trading Representative 2 (FPTR 2)

• The capital market and the banking system form the financial system
• Capital Market functions
• Malaysian Capital Market framework
• Capital Markets & Services Act 2007 (CMSA)
• Bursa Malaysia Berhad and Bursa Malaysia Securities Berhad
• Main Market and ACE Market
• LEAP Market
• Participants and intermediaries in the Malaysian stock market
• Overview of the Islamic Capital Market
  • Islamic Stockbroking
  • Shariah screening process
  • Bursa Suq al Sil

• Licensing Framework
• Regulated activities
• Fit and proper criteria
• Licensing requirements for CMSL and CMSRL applicants
• Obligations of the licensed person
• License conditions and variation
• Revocation or suspension
• Effect of revocation and suspension
• Obligations of Dealer’s Representatives

Law of Contract

• What is law of contract?
• Essential elements of a contract
• Offer and acceptance
• Consideration
• Intention to create legal relations
  • Certainty
  • Capacity to contract
  • Genuine consent
  • Lawfulness of object
  • Formalities
  • Remedies for breach of contract

Relationship between Participating Organisations (POs) and Clients

• Rules governing the relationship between POs and clients
• POs’ duties to clients
• POs rights
• Keeping of records
• Obligations of CMRSL

Anti-Money Laundering and Protection of Clients’ Information

• Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
• Obligation on protection of clients’ information and common abuses on confidentiality

• Central Depository System (CDS)
• Automated Trading System (ATS)
• Fees and charges
• Delivery and settlement
• Corporate actions
• Modification and cancellation
• Margin financing
• The Fixed Delivery & Settlement System (FDSS)
• Delivery and settlement time for On-Market Transactions
• Circuit breaker and trading halts
• Clients’ rights
• Market makers
• Conduct of business
• Dealing in securities
• Direct business transactions
• Accounting, audit and financial reporting requirement
• Capital requirement
• Inspection and investigation
• Disciplinary actions

Types of Securities Offences

• Short selling
• False trading and market-rigging transactions
• Stock market manipulation
• Market abuses and unethical business conduct
• False or misleading statements in relation to securities
• Fraudulently inducing persons to deal in securities
• Use of manipulative and deceptive devices
• Dissemination of information about illegal transactions
• Insider trading
• Clients’ rights
• Penalties for contravention

• Range of business
• Classification of companies
• General management and administration
• Administration and management of a Participating Organisation

Capital Raising on the Primary Market

• Equity guidelines
• Bursa Malaysia Securities Berhad listing and post listing requirements
  • Main Market
  • ACE Market
  • LEAP Market
• Capital raising securities in the secondary market

Take-overs

• What are take-overs?
• Legal framework
• Penalties for contravention of the code

• Component of Financial Statements
• Using financial statement analysis to assess performance
• Techniques of Analysis
• A Working Example of ratio Analysis
• Advantages and Limitations of Ratio Analysis
• Statement of Financial Position, Income Statement & Statement of Other Comprehensive Income and Statement of Cash Flows.
• Horizontal and Common Size Statement Analysis
• Cash Flow Analysis
• Financial Ratio Analysis

• Fund-raising through equity ownership
• Introduction to shares
• Rights and bonus issues
• Equity hybrids
• Preference shares
• Convertible Unsecured Loan Stock (CULS)
• Warrants
• Classification of shares
• Equity Valuation
• The role of valuation
• Valuation approaches : Required rate of return, DCF method and PE multiple

Fixed Income and money market

• Introduction of fixed income  and money market
• Money market securities
• Bonds and Private Debt Securities
• Fixed Income Valuation
• Time value of money (Simple interest, Compound interest, Compounding and discounting techniques)
• Valuation of fixed income securities
• Bond Valuation
• Bond Pricing : Pricing of a straight bond, zero coupon bond
• Factors affecting bond price
• Bond Yield : current yield, yield to maturity, yield to call, realised yeild
• Relationship between price, required yield and coupon rate
• Term structure of interest rates and yield curves

Structured Products

• What is a structured product?
• Underlying assets of structured products
• Risk of investing in structured products

Exchanged-Traded Funds (ETFs)

• What are ETFs?
• Structures and types of ETFs
• Advantages and risks of ETFs

• Importance of Fundamental Analysis
• Economic, Industry and Company Analysis
• Fundamental Analysis vs. Technical Analysis.

Technical Analysis

• What is Technical Analysis?
• Forecasting the direction or trend: demand & supply
• Bloomberg, Reuters, trading platform, technical analysis software
• The Use of Trend:
• Types of Trends (Uptrends, Downtrends & Sideways/ Horizontal Trends),
• Trend Lengths,
• Trendlines,
• Channels
• Support and Resistance: Round Numbers; Role Reversal
• Chart Types
• Chart properties: time scale, price scale & price point properties
• Chart types: line (closing prices), bar (high, low, opening & closing price), candlestick (trading range & difference b/w open & close), point & figure (reflects price movements, not concerned with time & volume)