Module: Financial Markets & Derivatives

Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title	Financial Markets & Derivatives
Module Code	FBA1020 (ITS: EF5157)
Faculty	DCU Business School	School	DCU Business School
NFQ level	9	Credit Rating	7.5

Description

EF 5157 Financial Markets and Derivatives. The aim of this module is to provide Learners with a thorough understanding of the range of international financial markets and traded financial instruments in today's capital markets. It will explore the operation of equity markets, fixed income (bond) markets, foreign exchange markets, and commodity and derivatives markets, examining the basis for the valuation of such instruments in these markets. Furthermore Learners will develop an applied understanding the tools and techniques for the analysis and management of fixed income portfolios as well as an understanding of the markets that these securities are traded on internationally. There will be a strong focus throughout the module on risk and the risk management responses which can be informed by various analytic approaches. This module is delivered through a combination of weekly lectures. Learners are expected to attend and to contribute to In-person sessions and to engage in on-line learning and research activities on a regular basis. Learners will discuss solutions to problem sets and as well as expert articles. Learners may also be required to work on a collaborative basis in groups for example in the case of continuous assessment.

Learning Outcomes

1. Analyse the main international financial markets for equities, commodities, derivatives and currencies, analyse how these markets operate and how their financial instruments are priced.
2. Explain the operations and pricing of markets for forwards and futures.
3. Explain the operations, and pricing of swap instruments.
4. Understand operations, and pricing of option instruments in equity, interest rate, currency, and commodity markets
5. Evaluate an international selection of fixed income securities, including government and agency securities, Treasury inflation protected securities (TIPS), corporate debt, Green and other Climate bonds, asset backed securities(ABS) and mortgage backed securities (MBS).
6. Appraise the elements which create risk for a fixed income portfolio.
7. Explore the risk management issues associated with a fixed income portfolio and determine a risk management strategy.

*Type*	*Hours*	*Description*
Workload	Full time hours per semester
Lecture	36	Weekly lectures
Independent Study	36	Independent Study
Group work	15	Group Work for CA
Assignment Completion	15	Assignment Completion
Assignment Completion	20	Assignment Completion
Assignment Completion	20	Assignment Completion
Directed learning	45.5	Directed Learning - Research
Total Workload: 187.5

Section Breakdown
CRN	10687	Part of Term	Semester 1
Coursework	0%	Examination Weight	0%
Grade Scale	40PASS	Pass Both Elements	Y
Resit Category	RC1	Best Mark	N
Module Co-ordinator	Tianqi Luo	Module Teacher	Arash Aloosh, Claire Kearney

Section Breakdown
CRN	21488	Part of Term	Semester 2
Coursework	0%	Examination Weight	0%
Grade Scale	40PASS	Pass Both Elements	Y
Resit Category	RC1	Best Mark	N
Module Co-ordinator		Module Teacher

Type	Description	% of total	Assessment Date
Assessment Breakdown
Assignment	Prepare a written Fixed Income Analysis Proposal for a client and include a recording of an Investment Outlook.	30%	n/a
In Class Test	In Class Test	35%	n/a
Group assignment	Prepare a written Investment Analyst's Report on an aspect of Equity Markets	35%	n/a

Reassessment Requirement Type
Resit arrangements are explained by the following categories; RC1: A resit is available for both^* components of the module. RC2: No resit is available for a 100% coursework module. RC3: No resit is available for the coursework component where there is a coursework and summative examination element. ^* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Indicative Reading List

Books:

Hull: 2015, Options, Futures & Other Derivatives,

Articles:

Bauer & Mertens: 2018, Information in the Yield Curve about Future Recessions., Federal Researve Bank of San Francisco, 2018-20, 521910
2022: Mortgage-backed Securities, Federal Reserve Bank of New York Staff Reports, No. 1001, 521911, 1
Capital Markets Handbook: Securities Industry and Financial Markets Association, July (2022),

Other Resources

None