Capital Market Service Providers (2024)

FAQs

Capital Market Service Providers? ›

The different types of capital market service providers include investment banks, investment advisors, portfolio managers, brokerage firms, and custodians. Investment banks specialize in underwriting new securities offerings and raising money for companies through public offerings or private placements.

Capital markets groups are units of a company or investment firm that handle financial and banking services for a set of clients or customers. These corporate divisions may exist within larger financial institutions to help with specific services such as obtaining leases, acquiring other companies, or issuing debt.

CMI providers (CMIPs) include traditional exchanges and alternative trading venues, interdealer brokers, broker-dealer trading platforms, providers of order management systems, central counterparties and clearing houses, securities depositories, and securities services firms.

The function of the debt capital markets (DCM) product group is to structure and arrange the issuance of investment-grade bonds and loans to borrowers with strong credit profiles. The DCM investment banking group services clients that include corporations, institutional investors, and governmental entities.

Suppliers in capital markets are typically banks and investors while those who seek capital are businesses, governments, and individuals. Capital markets are used to sell different financial instruments, including equities and debt securities.

Typically, capital markets are used for selling financial products such as stocks and bonds. Stocks, or ownership shares of a company, are equities. A bond is an interest-bearing IOU, as are other debt securities. A firm, for example, borrows money from households or individuals for business operations.

The most common examples of capital projects are infrastructure projects such as railways, roads, and dams. In addition, these projects include assets such as subways, pipelines, refineries, power plants, land, and buildings.

Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.

What do people in DCM do? ›

A DCM banker works in an investment bank on the sell-side and is the product expert that advises borrowers and potential borrowers on the best way to raise new debt and manage their outstanding debt.

DCM Careers and Skills

A career in a debt capital market group of an investment bank typically involves advising companies, governments, and institutions on the ways to raise money by issuing debt.

Join Kevin Foley, Global Head of Debt Capital Markets and Tarek Hamid, Head of North American Corporate Credit Research, as they recap highlights from J.P. Morgan's Global High Yield & Leveraged Finance Conference.

Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market. They help people with ideas become entrepreneurs and help small businesses grow into big companies.

Capital markets offer diverse financial instruments, such as derivatives, which facilitate risk management for investors and businesses. Through options, futures, and swaps, market participants can hedge against adverse price movements, mitigate volatility, and safeguard their investments.

The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell equities (stocks), debt securities.

A company must hold a capital markets services (CMS) licence to conduct activities regulated under the Securities and Futures Act 2001 (SFA) . Individuals representing CMS licensees or exempt financial institutions need to be appointed as representatives.

A career in the capital market involves helping companies raise funding by selling stock to investors. This can include responsibilities like facilitating communication and transactions between companies and investors and organizing deals that benefit both the company and the investor in each case.