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: 

Demonstrate an understanding of the functioning of the international financial markets within the South African context 
SAQA US ID UNIT STANDARD TITLE
12887  Demonstrate an understanding of the functioning of the international financial markets within the South African context 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
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 6  Level TBA: Pre-2009 was L6  18 
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 people working in or who intend to work in the Financial Markets sector.

Persons credited with this Unit Standard are able to differentiate between the different markets and instruments and are able to describe the essential features of each. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that the learner has achieved English and mathematics at Grade 12 or equivalent. 

UNIT STANDARD RANGE 
"The various Financial Markets" includes:
  • The Capital Market, made up of the Equity Market and the Bond or Long term Debt Market
  • The Currency or Foreign Exchange Market
  • The Derivatives Markets
  • The Commodities Market
  • The Money Market

    "The Financial Markets Instruments" include:
  • Equity instruments such as Preference Shares and Ordinary Shares
  • Long term Debt instruments such as Bonds, straights, index-linked, convertible, floating rate, asset-backed, synthetic, security, covenants, negative-pledge, charges and liens
  • Derivative products such as Futures and Options in currency, commodity, interest rates, bond and equity markets.
  • Currency instruments such as FRA's (Future rate Agreements), Repos and Swaps
  • Money Market products such as Treasury Bills, Certificates of Deposit, Bills of Exchange, Banker's acceptances
  • Commodities
  • Warrants
  • Convertibles

    "The various players in the Financial Markets" include:
  • Issuers such as Governments, Government agencies, municipality, Supranational organisations such as the World Bank, banks, emerging markets and corporate
  • Investors such as pension funds, insurance companies, fund managers, banks, corporate and individuals
  • Intermediaries such as investment banks, brokers, market makers, dealers, clearing houses, central depositories, custodians

    Derivative instruments include:
  • Equity derivatives
  • Fixed interest and bond derivatives
  • Currency derivatives
  • Money market derivatives
  • Commodities derivatives

    "Maturity of debt instruments" includes:
  • bills, notes, perpetuals, and bonds

    "Seniority of debt instruments" includes:
  • subordinated, guarantee, centralized, asset backed and mortgage backed 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the structure and functioning of the financial markets sector 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The overall structure of the capital market is defined with examples. 

    ASSESSMENT CRITERION 2 
    2. The origins and evolution of the financial markets are discussed with reference to the South African situation. 

    ASSESSMENT CRITERION 3 
    3. The relationship and difference between the various financial markets is explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The relationship between the various players in the Financial Market is explained and illustrated. 

    ASSESSMENT CRITERION 5 
    5. The Financial Market instruments are identified and allocated to the correct market. 

    ASSESSMENT CRITERION 6 
    6. The use of repurchase agreements and securities lending in the capital markets is described giving the advantages and disadvantages of each. 

    ASSESSMENT CRITERION 7 
    7. Disintermediation and securitisation in relation to capital adequacy is discussed with examples. 

    SPECIFIC OUTCOME 2 
    Demonstrate an understanding of the international equity instruments and markets 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Equity instruments and markets are described and compared with examples. 

    ASSESSMENT CRITERION 2 
    2. Equity, debt and loan instruments are differentiated in tabular form. 

    ASSESSMENT CRITERION 3 
    3. Equity is valued using a variety of different methods. 

    SPECIFIC OUTCOME 3 
    Demonstrate an understanding of the international fixed interest and bond instruments and markets 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Private sector fixed interest and bond instruments are described and compared in relation to the advantages and disadvantages of each for the investor. 

    ASSESSMENT CRITERION 2 
    2. Government bonds are described and discussed in terms of their relevance to the market as a whole. 

    ASSESSMENT CRITERION 3 
    3. The debt instruments are explained in terms of issuers, investors, maturity, pricing convention and seniority. 

    SPECIFIC OUTCOME 4 
    Demonstrate an understanding of the derivative instruments and markets 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Derivative products are described and compared in terms of their advantages and disadvantages for the investor. 

    ASSESSMENT CRITERION 2 
    2. The driving forces of the derivatives market are identified and ranked in order of importance. 

    ASSESSMENT CRITERION 3 
    3. The pricing of derivatives instruments is explained with examples. 

    SPECIFIC OUTCOME 5 
    Demonstrate an understanding of the currency instruments and markets 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Currency instruments are described and compared in terms of their advantages and disadvantages for the investor. 

    ASSESSMENT CRITERION 2 
    2. The principles of exchange controls are explained with examples from the South African context. 

    SPECIFIC OUTCOME 6 
    Demonstrate an understanding of the money market instruments 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Money market instruments are described and compared in terms of their advantages and disadvantages for the investor. 

    ASSESSMENT CRITERION 2 
    2. Different instrument yields are compared and explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The types, characteristics and risk profiles of Repo products are explained and compared with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation and moderation:

    Accreditation for this Unit Standards shall be from the FASSET Education and Training Quality Assuror through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.
  • Assessors must be registered as an Assessor with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Moderators must be registered as assessors with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Training providers must be accredited by the Fasset ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Moderation should include both internal and external moderation where applicable
  • The Fasset ETQA will co-ordinate all moderation activities in accordance with its policies and procedures 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:

    The terminology relating to the Financial Markets and instruments. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information. For example, information about the instruments is available from newspapers and periodicals, and this information can be used to evaluate the instruments. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility towards the environment and health of others. For example, the instruments can be evaluated and compared in a number of ways by using computer technology. 

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

    UNIT STANDARD NOTES 
    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms" published by Who owns Whom/PSG Online in 2001. ISBN 1-919850-04-X. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 
    Core  23653   National Diploma: Financial Markets  Level 6  NQF Level 06  Reregistered  2023-06-30  FASSET 


    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. AAR Trading and Projects (Pty) Ltd 
    2. Absa Learning & Development 
    3. Chartall Business College 
    4. Felix Risk Training Consultants 
    5. Full Value Financial Services (Pty) Ltd 
    6. Fungi Business Consulting (Pty) Ltd 
    7. Injabulo Home Grown Learning and Development Solutions 
    8. Jewel Training Solutions 
    9. K2020192300 (South Africa) (Pty) Ltd 
    10. LFS Learning Solutions (Pty) Ltd 
    11. Maharishi Invincibility Institute NPC 
    12. MAT 007 (PTY) LTD 
    13. Milpark Education (Pty) Ltd (previously known as Milpark Business School) 
    14. Ndiwatendi General Enterprise (PTY) Ltd 
    15. Nedbank Ltd 
    16. Octopus Training Solutions 
    17. Riaphathutshedza (PTY) LTD 
    18. The Academy of Financial Markets 
    19. The Facilitation Workshop 
    20. The Institute of Literacy Advancement 
    21. UCS Education and Training Services (Pty) Ltd 
    22. Welltec Academy (Pty) LTD 



    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.