BE317-5-SP-CO:
Financial Intermediaries, Instruments and Markets
2017/18
Essex Business School
Colchester Campus
Spring
Undergraduate: Level 5
Current
Monday 15 January 2018
Friday 23 March 2018
15
20 March 2013
Requisites for this module
BE300 or EC111 or IA712
(none)
(none)
(none)
(none)
BSC N390 Banking and Finance,
BSC N392 Banking and Finance (Including Placement Year),
BSC NH90 Banking and Finance (Including Year Abroad)
At the heart of all modern economies lies a sophisticated network of financial intermediaries whose primary function is the collection of savings from households and their subsequent allocation to organizations that need this financing. We now have a better understanding of financial intermediation stemming from two new developments over the last 30 years. First, innovative financial contracts, well-forged financial institutions and the genesis of new financial markets have come to dominate most economies today. Second, increasingly sophisticated devices such as provided by option pricing models, information-theoretic tools and strategic interaction models have facilitated the introduction of a scientific approach to studying the issues raised by these new developments.
About these financial intermediaries we ask (1) who are they? (2) what do they do? (3) why do they exist? There are two main types of financial intermediaries: depository and non-depository intermediaries. Financial intermediaries provide two main services: brokerage services and qualitative asset transformation services and justify their existence from being able to supply such services more efficiently than financial markets. We then ask what instruments and markets are utilized in the qualitative asset transformation process. The five main financial markets and instrument classes are: equities, bonds, currencies, derivatives and commodities. Naturally, financial crisis, fraud and controversy are among the issues associated with the increasing regulation of global financial markets today and the banking sector and financial markets are among the most regulated parts of every economy. We examine some of the issues.
Module Aims
The aim of this course is two-fold. First, to familiarize you with the functions of the main financial markets. Second, to ensure an understanding of how the main financial intermediaries perform their roles and of the types of instruments employed by such intermediaries.
Learning Outcomes
On successful completion of the module, students will be able to:
1. Distinguish between retail and investment banking and hedge funds.
2. Distinguish between pension funds, private equity and hedge funds.
3. Understand the role of insurance companies, leasing and factoring firms.
4. Recognise the importance and functions of money and capital markets.
5. Identify and explain the financial instruments traded on financial markets.
6. Appraise the current issues affecting the global financial marketplace
No information available.
No information available.
No additional information available.
Lectures:
There will be one lecture per week, each of two hours duration, for ten weeks. The primary function of the lecture is to introduce a topic and the main ideas and issues relating to the topic. Lectures are not the venues for describing computational details (for that we use classes). You are expected to do the relevant reading before the lecture. It is strongly recommended, however, that this should not be the only time you stumble on to the relevant material. The likely lecture program is described further below.
Workshop:
There will be one workshop every second week, associated with the lectures, each of one-hour duration and will lag the lectures. For these fortnightly workshops, exercises will normally be released before the relevant workshop but after lectures. You are advised to attempt all the workshop material, so that you will have a better understanding of the solutions and ideas discussed there. Your workshop attempt will need to be handed in at the workshop but they are neither marked nor evaluated and serve the important role of feedback to faculty, concerning the progression of this year’s cohort, in aggregate
This module does not appear to have a published bibliography.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Coursework |
GROUP REPORT |
|
80% |
| Practical |
ORAL PRESENTATION |
|
20% |
| Exam |
Main exam: 120 minutes during Summer (Main Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Dr Jose Linares Zegarra, email: jmlina@essex.ac.uk.
Dr Hardy Thomas, email: hardt@essex.ac.uk.
Hardy Thomas & Jose Linares
hardt@essex.ac.uk
jmlina@essex.ac.uk
No
No
No
Dr Apostolos Kourtis
The University of East Anglia
Senior Lecturer in Finance
Available via Moodle
Of 45 hours, 45 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
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