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 II
  • Unit Code

    ECF2210
  • Year

    2016
  • Enrolment Period

    1
  • Version

    1
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online

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.

ON CAMPUS
TypeDescriptionValue
TestOnline Tests10%
JournalOnline Journal15%
AssignmentAssignment15%
Examination ^Final Examination60%
ONLINE
TypeDescriptionValue
TestOnline Tests10%
JournalOn-line journal15%
AssignmentAssignment15%
Examination ^Final Examination60%

^ Mandatory to Pass

Text References

  • ^ Viney, C., & Philips, P. (2015). Financial institutions, instruments and markets (8th ed.). North Ryde. NSW: McGraw-Hill Australia Pty Limited.
  • Madura, J. (2008). Financial markets and institutions (8th ed.). Southbank: Thompson Learning.
  • Kidwell, D., Brimble, M., Basu, A., Lenton, L., & Thomson, D. (2010) Financial markets, institutions and money (2nd ed.). Milton: John Wiley & Sons.
  • Valentine, T., Ford, G., O'Hara, L., & Sundmacher, M. (2010) Fundamentals of financial markets and institutions in Australia Brisbane: Pearson
  • Hunt, B., & Terry, C. (2008). Financial institutions and markets (5th ed.). Melbourne: Nelson.

Website References

^ Mandatory reference


Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF2210|1|1

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 II
  • Unit Code

    ECF2210
  • Year

    2016
  • Enrolment Period

    2
  • Version

    1
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online

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.

ON CAMPUS
TypeDescriptionValue
TestOnline Tests10%
JournalOnline Journal15%
AssignmentAssignment15%
Examination ^Final Examination60%
ONLINE
TypeDescriptionValue
TestOnline Tests10%
JournalOn-line journal15%
AssignmentAssignment15%
Examination ^Final Examination60%

^ Mandatory to Pass

Text References

  • ^ Viney, C., & Philips, P. (2015). Financial institutions, instruments and markets (8th ed.). North Ryde. NSW: McGraw-Hill Australia Pty Limited.
  • Madura, J. (2008). Financial markets and institutions (8th ed.). Southbank: Thompson Learning.
  • Kidwell, D., Brimble, M., Basu, A., Lenton, L., & Thomson, D. (2010) Financial markets, institutions and money (2nd ed.). Milton: John Wiley & Sons.
  • Valentine, T., Ford, G., O'Hara, L., & Sundmacher, M. (2010) Fundamentals of financial markets and institutions in Australia Brisbane: Pearson
  • Hunt, B., & Terry, C. (2008). Financial institutions and markets (5th ed.). Melbourne: Nelson.

Website References

^ Mandatory reference


Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF2210|1|2