Handbook : Unit informationEdith Cowan University

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

• Unit Title

  Capital Markets

• Unit Code

  ECF2210

• Year

  2017

• Enrolment Period

  2

• Version

  1

• Credit Points

  15

• Full Year Unit

  N

• Mode of Delivery

  On Campus
  Online

• Unit Coordinator

  Dr Jaime Li YONG

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Description

This unit aims to develop a fundamental and practical understanding of the workings of the financial system. The unit concentrates on money markets, debt markets, equity markets, foreign exchange and derivative markets. It reviews the major participants in each of these markets, their functions and relationships and their role in the economy. Students will also investigate the different options for, and implications of, regulation. There will be a strong focus on current and emerging issues, both domestically and internationally.

Prerequisite Rule

Students must pass 2 units from ECF1110, ECF1120

Learning Outcomes

On completion of this unit students should be able to:

1. Compare and contrast derivatives markets and securities and the players in those markets.
2. Identify ways in which these markets and entities interact to form a nations Capital Markets.
3. Identify, price and describe the various financial assets traded in the financial system.
4. Understand the process through which modern financial systems have evolved.
5. Understand the role of the government and its' entities and the role of financial institutions.

Unit Content

1. Introduction to the financial system.
2. The market mechanism in financial markets.
3. Interest rate markets.
4. Foreign exchange markets.
5. The Euromarkets.
6. Equity markets.
7. The nature of derivatives, futures, forwards, options and warrants.
8. Swaps.
9. The role of government and the central bank.
10. The banking sector and non-bank financial intermediaries.

Additional Learning Experience Information

This unit is conducted in both the on-campus and off-campus mode. On-campus students have a weekly two-hour lecture and one-hour tutorial. Both on-campus and off-campus students have access to digital lecture recordings of weekly lectures. These weekly lectures are used to introduce the central concepts of the unit, and to guide students through the various concepts underlying the operation of financial markets. The tutorial allows students to work through tutorial questions, explore further the concepts presented in the lecture and obtain feedback on their progress. A major part of the assessment and the learning in the unit is based around an on-line trading game. In this game, students apply the knowledge which they have developed in lectures and tutorials to their trading of bank bills, treasury bonds, foreign exchange and the ASX200 share index. Submission of on-line weekly journals is an important part of the learning process. In addition, a major assignment, which relates to the trading decisions, is completed once the game has finished. Regular online access is required.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

^ Mandatory to Pass

Core Reading(s)

• Viney, C., & Philips, P. (2015). Financial Institutions, Instruments and Markets. North Ryde. (8th ed.). North Ryde, NSW: McGraw-Hill Australia Pty Limited.

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