SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain the structure and mechanics of Financial Markets 
SAQA US ID UNIT STANDARD TITLE
117773  Explain the structure and mechanics of Financial Markets 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  28 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for persons who conduct administrative functions in the middle and back office in an Asset Management environment.

A person credited with this Unit Standard will be able to:
  • Define the basic macro economic principals governing the financial services industry.
  • Explain the primary and secondary markets and how they function.
  • Explain the roles the regulatory bodies play in regulating and monitoring the markets and the participants. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Mathematical Literacy at NQF Level 4
  • Communication at NQF Level 4
  • The Unit Standard entitled, "Define the mechanics and participants of the different trade cycles for all investment instrument types" 

  • UNIT STANDARD RANGE 
    The scope of this Unit Standard covers the Financial Market Structure, which includes the regulatory bodies, industry bodies and market participants. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Define the basic macro economic principles governing the financial services industry. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Monetary and fiscal policy is explained as per the SA markets. 

    ASSESSMENT CRITERION 2 
    Economic business cycles and principles are explained as per the SA markets. 

    ASSESSMENT CRITERION 3 
    The Impact of economic policy is explained as it affects the financial services industry. 

    SPECIFIC OUTCOME 2 
    Explain the primary and secondary markets and how they function. 
    OUTCOME RANGE 
    Secondary and Primary Markets include but not limited to:- Secondary Markets: Equities, Bonds. Derivatives, Money Market, Over-the-Counter; Primary Markets: Companies/Corporates, Government, Parastatals, Banks. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Financial markets are described and a differentiation is made between primary and secondary markets. 

    ASSESSMENT CRITERION 2 
    Exchanges relating to secondary markets are defined as per the financial markets. 

    ASSESSMENT CRITERION 3 
    The functioning of the secondary market exchanges are explained according to their structures. 

    SPECIFIC OUTCOME 3 
    Explain the roles the regulatory bodies play in regulating and monitoring the markets and the participants. 
    OUTCOME RANGE 
    Different participants who are regulated include but not limited to Banks, Asset Managers, Brokers, CSDP's, Management Companies, and Exchanges. The different regulatory/self-regulated bodies may include but not limited to: SARB, FSB, SARS, STRATE, LOA, AUT. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The different regulatory and monitoring industry bodies are identified for the SA Market. 

    ASSESSMENT CRITERION 2 
    The roles played by the different regulatory and/or monitoring market bodies are defined for the SA Market. 

    ASSESSMENT CRITERION 3 
    The functions of the relevant regulatory and/or monitoring bodies are defined for the SA Market and an indication given of what might happen if those roles were not performed. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Primary and secondary markets
  • Macro economic principals governing financial markets.
  • The difference between primary and secondary markets.
  • The roles of regulatory bodies. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information that has an impact on economic policy as it relates to the financial service industry. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate the world as a set of interrelated systems by understanding the basic macro economic principals that govern the financial services industry. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Supplementary information:

    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms". ISBN 1-919850-04-X
  • CSDP's - Central Securities Depository and Participants
  • SARB - South African Reserve Bank
  • FSB - Financial Services Board
  • SARS - South African Revenue Services
  • STRATE
  • LOA - Life Offices Association
  • AUT - Association of Unit Trusts 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Chartall Business College 
    2. Felix Risk Training Consultants 
    3. Firstrand Bank - Benmore 
    4. Full Value Financial Services (Pty) Ltd 
    5. RMK Industries(Pty) LTD 
    6. The Institute of Literacy Advancement 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.