module specification

FE4051 - Introduction to Financial Markets and Institutions (2018/19)

Module specification Module approved to run in 2018/19
Module title Introduction to Financial Markets and Institutions
Module level Certificate (04)
Credit rating for module 15
School Guildhall School of Business and Law
Total study hours 150
 
5 hours Assessment Preparation / Delivery
105 hours Guided independent study
40 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
Coursework 30%   Essay - 1500 words
Unseen Examination 70%   Exam - 2 hours
Running in 2018/19
Period Campus Day Time Module Leader
Spring semester City Wednesday Afternoon

Module summary

The module provides the theoretical and practical framework for understanding the operation of the financial markets.  It focuses on the organisation, structure and functions of financial markets and institutions.

Syllabus

The organisation, structure and functions of financial markets LO1, LO2, LO3
Participants in financial markets: banks, building societies, pension funds, open-ended funds, closed-ended funds, hedge funds, analysts, regulators and others
Capital markets: equity markets and debt markets LO2
Money markets: discount market, gilt-edged market, repo market, and parallel markets
Derivatives markets and commodity markets
Foreign exchange and Eurocurrency markets
Insurance markets LO1, LO3

Balance of independent study and scheduled teaching activity

The balance of independent study and scheduled teaching activity within the module is indicated in the section below.

Scheduled learning and teaching comprises face-to-face contact hours consisting of weekly 2-hour lectures and 1-hour seminar.

The virtual learning environment (Weblearn) that supports the module contains relevant learning and teaching materials such as lecture slides, seminar questions, case studies, guideline answers to case studies / seminar questions, past examination paper, coursework brief, assessment and grading criteria, deadlines and feedback details.

Students are encouraged to reflect on their learning development through seminar participation, feed-forward and feedback sessions.  They are expected to develop subject specific knowledge and skills as well as cognitive abilities and generic skills that enable an appreciation of the nature of the personal context in which their finances can be seen as operating.

Learning outcomes

On successful completion of this module, students will be able to:
1. Understand the nature of different financial Markets
2. Describe financial institutions that participate in financial markets
3. Discuss the structures and functions of financial markets and their interconnectedness

Assessment strategy

Diagnostic and formative assessment will take place on a weekly basis in to develop theoretical, analytical and oral and written communication skills.
Formative and summative assessment will take place in week 6 in the form of an essay.
Formative assessment will take place before the exam with a mock in class test.  Summative assessment will take place in week 14/15 with a 2-hour unseen written examination. These will primarily focus on the nature of different financial markets and their interconnectedness.

Bibliography

Books
Arnold, G. (2012) Modern Financial Markets and Institutions: A Practical Perspective Pearson Harlowe
Howells, P & Bain K., (2007) Financial markets and Institutions, 5th Ed., Financial Times Prentice Hall, London
Mishkin, F. S. And Eakins, S. G. (2015) ‘Financial Markets and Institutions’ 8th, Pearson Prentice Hall London
Pilbeam, K. (2010) Finance & Financial Markets, 3rd Ed., Palgrave Macmillan, Basingstoke
Valdez, S. (2017) An Introduction to Global Financial Markets, 8th Ed., Palgrave Macmillan, Basingstoke

Academic Journal Articles - accessible electronically
Carey, M., Kashyap, A. K., Rajan, R. and Stulz, R. M. (2012) ‘Market institutions, financial market risks, and the financial crisis’, Journal of Financial Economics, Volume 104, Issue 3, June 2012, Pages 421-424
Lye, R., Tan, J. P. L. and Cheong, S. A. (2012) ‘Understanding agent-based models of financial markets: A bottom–up approach based on order parameters and phase diagrams’ Physica A: Statistical Mechanics and its Applications, Volume 391, Issue 22, 15 November 2012, Pages 5521-5531
Murakami, R., Nakamura, T., Kimura, S., Manabe, M. and Tanizawa, T. (2015) ‘On possible origins of trends in financial market price changes’ Physica A: Statistical Mechanics and its Applications, Volume 420, 15 February 2015, Pages 179-189
Pellegrina, L. D., Masciandaro, D. and Pansini, R. V. (2013) The central banker as prudential supervisor: Does independence matter? Journal of Financial Stability, Available online 8 February 2013
Sensoy, A., Yuksel, S. And Erturk, M. (2013) ‘Analysis of cross-correlations between financial markets after the 2008 crisis’ Physica A: Statistical Mechanics and its Applications, Volume 392, Issue 20, 15 October 2013, Pages 5027-5045