Module Details
Module Code: |
LAWS |
Module Title:
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Derivatives and the Regulatory Environment
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Title:
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Derivatives and the Regulatory Environment
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Module Level:: |
8 |
Module Coordinator: |
Janette Davies
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Module Author:: |
Ailish O'Brien
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Module Description: |
The aim of this module is to enable students to evaluate the regulatory environment in which Alternative Investment Funds operate and to account for and assess trading in derivative securities.
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Learning Outcomes |
On successful completion of this module the learner will be able to: |
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Learning Outcome Description |
LO1 |
Critically evaluate the regulatory and legal framework for Alternative Investment Funds in an Irish, EU and international context. |
LO2 |
Analyse and account for trading in derivatives, including futures, options, forwards, swaps and short sales. |
LO3 |
Assess the financial statements of a fund, incorporating relevant standards and legal considerations. |
LO4 |
Critically appraise current developments in the international funds industry |
LO5 |
Appraise governance practices of investment funds, in an international context. |
Dependencies |
Module Recommendations
This is prior learning (or a practical skill) that is recommended before enrolment in this module.
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9298 |
ACCT |
Fund Accounting |
Co-requisite Modules
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No Co-requisite modules listed |
Additional Requisite Information
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No Co Requisites listed
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Indicative Content |
Introduction to Derivatives
Definition of derivatives, role of derivative securities, trading Over the Counter and Exchange-Traded, accounting for: daily appreciation/depreciation, trades and settlement of futures, options, short sales and swaps. Investment strategies.
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Regulation/compliance
Role of regulation and regulators including The Central Bank of Ireland, The Irish Stock Exchange, The European Securities and Markets Authority and The Securities and Exchange Commission, laws for the fund industry and their impact on fund activities - MiFID, MIFIR, AIFMD. Categories of funds that can be established in Ireland, Global, European and UK, regulatory frameworks for investment funds.
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Alternative Investment Funds
Categories of investors, investment strategies, fees, prospectus, risk management.
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Financial statements of funds
Financial statements of funds, including relevant Accounting Standards and legal considerations.
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Current developments in the fund sector
Responsible investments including sustainablel/green/Islamic investment funds. Developments in the technical regulatory environment such as distributed ledgers (blockchain), automation, data security,data governance.
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Fund governance
Role of investment fund boards:risk management, composition of boards: knowledge, independence and diversity, investor engagement and stewardship, board accountability
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Module Content & Assessment
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Assessment Breakdown | % |
Continuous Assessment | 40.00% |
Project | 30.00% |
Practical | 30.00% |
AssessmentsFull Time
No End of Module Formal Examination |
Part Time
No End of Module Formal Examination |
Reassessment Requirement |
Exam Board
It is at the discretion of the Examination Board as to what the qualifying criteria are.
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SETU Carlow Campus reserves the right to alter the nature and timings of assessment
Module Workload
Workload: Full Time |
Workload Type |
Workload Category |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
Independent Learning |
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Non Contact |
Review class material, accounting exercises, research, group work. |
15 Weeks per Stage |
11.87 |
178 |
Lecture |
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Contact |
Class lectures |
12 Weeks per Stage |
6.00 |
72 |
Total Weekly Contact Hours |
6.00 |
Workload: Part Time |
Workload Type |
Workload Category |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
Independent Learning |
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Non Contact |
Review class material, accounting exercises, research, group work. |
15 Weeks per Stage |
5.93 |
89 |
Lecture |
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Contact |
Class lectures. |
12 Weeks per Stage |
3.00 |
36 |
Total Weekly Contact Hours |
3.00 |
Module Resources
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Recommended Book Resources |
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John. C. Hull. (2018), Fundamentals of Futures and Options Markets, 9th Edition. Pearson Educational Company, USA, [ISBN: 978935286563].
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Jarrow, J.A. and Chatterjea, A.. (2019), An Introduction to Derivative Securities, Financial Markets, and Risk Management, 2nd Edition. World Scientific Publishing, USA, [ISBN: 978194465965].
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Aron Gottesman. (2021), Derivatives Essentials: An Introduction to Forwards, Futures, Options and Swaps., 1st Edition. Wiley Publications, USA, [ISBN: 978111916349].
| Supplementary Book Resources |
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John Hull. (2017), Options, Futures, and Other Derivatives, 10th Edition. Pearson Higher Education, USA, [ISBN: 978013447208].
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Dirk Zetzsche. The Alternative Investment Fund Managers Directive, 3rd Edition. [ISBN: 9789403509105].
| Recommended Article/Paper Resources |
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Chen et al.,. (2018), The disciplinary effects of short sales
on controlling shareholders, Journal of Empirical Finance, 46,
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Eom et al.,. (2021), Short sales restrictions and market
quality: Evidence from Korea, Journal of Behavioural and Experimental
Finance, 30,
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Nezafat et al.,. (2017), Short-sale constraints, information
acquisition, and asset prices, Journal of Economic Theory, 172,
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Borgards et al.,. (2021), Price overreactions in the commodity
futures market: An intraday analysis of
the Covid-19 pandemic impact, Resources Policy, 71,
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Radha and Sujatha Balakrishnan. (2017), The Role of Commodity Futuresin Risk
Management:A Study of Select
Agricultural Commodities, IUP Journal of Financial Risk Management, 14,
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Changa et al.,. (2019), Credit default swaps and corporate
innovation, Journal of Financial Economics, 134,
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Lai and Samers. (2019), Conceptualizing Islamic banking and
finance:acomparison of its development
and governance in Malaysia and Singapore, The Pacific Review, 30,
| Other Resources |
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Central Bank of Ireland,
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Chartered Accountants Ireland. Anti-Money Laundering Resources,
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Central Bank of Ireland. (2013), EU AIFM Regulations 2013, Ireland,
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Central Bank of Ireland. (2019), EU AIFM Regulations (Amendment) 2019, Ireland,
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