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Module 11 – Brokerage Business

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Course Prerequisite(s)

Please note that this course has the following prerequisites which must be completed before it can be accessed
Module 10 – Sharia-Compliant Capital Markets
Module 09 – Ethics in Financial Markets
Module 08 – Collective Investment Scheme (CIS)
Module 07 – Securities Analysis and Valuation Methods
Module 06 – Risk and Return in Finance
Module 05 – the Ethiopian Securities Exchange (ESX)
Module 04 – Legal Framework of the Ethiopian Capital Market
Module 01 – Introduction to the Financial Service Sector
Module 03 – Financial Instruments
Module 02 – Introduction to Capital Markets

About Course

This module provides a practical introduction to Securities brokerage business operations. It explains what Securities brokers do and outlines the key components involved in setting up and running a Securities broker. Topics include the introduction to Securities brokerage and its evolution, business model and revenue streams, client handling and ethics, operations and technology, legal and regulatory, and strategic outlook and opportunities for Securities brokers in Ethiopia. The course is designed to help anyone with an interest in understanding the Securities brokerage industry as well as would-be and existing Ethiopian Securities brokers train new staff, equipping them with a working knowledge of both local practice and international benchmarks while utilizing the case studies to develop a practical and feel of the brokerage business. Each chapter is designed carefully to include 10 Multiple Choice questions to test the understanding of the learner and further, a video to explain the technical parts. Additionally, the module has a final timed 20 question assessment at the end which the learner must score at least 75% to pass.

Understand the central role of Securities brokers in driving capital markets development and growth.
Identify the different types of Securities brokerage businesses operating in Ethiopia.
Compare global Securities brokerage business models and revenue sources.
Navigate the key legal and regulatory requirements for Securities brokers in Ethiopia and know how to stay informed of changes.
Understand key issues in client handling, including KYC, suitability of advice, AML/CFT compliance, client administration, and complaint handling.
Gain a basic understanding of exchange trading systems and ESX trading rules.
Explore the challenges in market liquidity, pricing, and information flows, and review how Securities brokers can address them, including market-making approaches.
Learn about additional business opportunities for Securities brokers, such as wealth management and capital raising support for issuers.
Review ethical expectations and codes of conduct for Securities brokers in Ethiopia and internationally.
Develop an approach to identifying and managing risks in Securities brokerage operations.
Understand strategic trends affecting Securities brokerage firms globally.

Course Content

Chapter 1: Introduction to Brokerage Services and Capital Markets

1.1 Introduction

02:27
1.2 Key Definitions and Concepts
1.3 Functions of Securities brokers
1.4 Role of Internal Control at the Broker
1.5 Importance of Securities brokers in capital formation and investor participation
1.6 Historical Evolution of Brokerage and Exchanges
1.7 Role of Competition in Developing Securities brokers and Exchanges and in Making Rules Efficient
Chapter-End Self-Assessment Questions

Chapter 2: Securities Brokerage Business Models and Revenue Streams

Chapter 3: Legal and Regulatory Framework

Chapter 4: Client Handling and Ethics

Chapter 5: Operations and Technology

5.1 Introduction

05:34
5.2 Organizational Structure and role of key officers
5.3 Trading Operations
5.4 Technology
5.5 Challenges in Frontier (and Other) Markets and the Broker’s Fair Dealing Duty
5.6 ESX and ECMA Surveillance and Other Systems
5.7 Role of Securities brokers in market surveillance and compliance
5.8 Whistle blowing
Chapter-End Self-Assessment Questions

Chapter 6: Strategic Outlook and Emerging Opportunities

End Of Module

A course by

ESX Admin

Course Prerequisite(s)

About Course

What Will You Learn?

Course Content

Chapter 1: Introduction to Brokerage Services and Capital Markets

1.1 Introduction

1.2 Key Definitions and Concepts

1.3 Functions of Securities brokers

1.4 Role of Internal Control at the Broker

1.5 Importance of Securities brokers in capital formation and investor participation

1.6 Historical Evolution of Brokerage and Exchanges

1.7 Role of Competition in Developing Securities brokers and Exchanges and in Making Rules Efficient

Chapter-End Self-Assessment Questions

Chapter 2: Securities Brokerage Business Models and Revenue Streams

2.1 Introduction

2.2 Types of Securities brokerage Models

2.3 Revenue Streams

2.4 Ethiopian Licensing Categories for Securities Brokerage and Related Services

Chapter-End Self-Assessment Questions

Chapter 3: Legal and Regulatory Framework

3.1 Introduction

3.2 Core Legal Instruments

3.3 Overview of the regulatory environment and compliance

3.4 Key Regulatory Requirements for Securities Brokers in Ethiopia

3.5 Cultivating Compliance culture among Securities brokers

3.6 Role of ESX and ECMA on brokerage business

Chapter-End Self-Assessment Questions

Chapter 4: Client Handling and Ethics

4.1 Introduction

4.2 Client Lifecycle and Advisory Framework

4.3 Applying Suitability and Best Interest Rules in Client Interactions

Chapter-End Self-Assessment Questions

Chapter 5: Operations and Technology

5.1 Introduction

5.2 Organizational Structure and role of key officers

5.3 Trading Operations

5.4 Technology

5.5 Challenges in Frontier (and Other) Markets and the Broker’s Fair Dealing Duty

5.6 ESX and ECMA Surveillance and Other Systems

5.7 Role of Securities brokers in market surveillance and compliance

5.8 Whistle blowing

Chapter-End Self-Assessment Questions

Chapter 6: Strategic Outlook and Emerging Opportunities

Introduction

6.1 Global Strategic Trends in Brokerage

6.2 Emerging Opportunities for Ethiopian Securities brokers

6.3 Role of Securities brokers in Addressing Market Challenges, Including as Market-Makers

Chapter-End Self-Assessment Questions

End Of Module

End of module exam

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