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Trade Life Cycle

The document outlines the trade life cycle process from order entry to settlement. New orders are captured in the order management system and traders execute trades on exchanges, OTC markets, or internal inventory. The middle office validates and books trades before sending confirmation. The back office handles clearing, settlement, accounting, and interacts with custodians, clearing firms, and commercial banks to complete the process.

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Parmesh Malhotra
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231 views2 pages

Trade Life Cycle

The document outlines the trade life cycle process from order entry to settlement. New orders are captured in the order management system and traders execute trades on exchanges, OTC markets, or internal inventory. The middle office validates and books trades before sending confirmation. The back office handles clearing, settlement, accounting, and interacts with custodians, clearing firms, and commercial banks to complete the process.

Uploaded by

Parmesh Malhotra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Trade life Cycle

New Orders are entered into Order Management System (Trading System)

– This step is referred as ‘Trade Capture’

Order Room /Trade Floor/Front Office


-Trade Capture

-Trade Execution

Sales Traders get orders from the clients and attract clients.

Traders execute the trades –Exchange, OTC, Internal Inventory /Trader


Book.

Return execution reports back to the Sales trader.

Middle Office
-Validation

-Booking

-Confirmation

Back Office
-Clearing

-Settlement

-Accounting and Finance

Back Office interacts with the Custodian, Clearing Firm and Commercial
Bank
The Market Participants

Facilitators Investors
Brokers
Institutional Investors
Dealers
Mutual Funds (Unit Trusts)
Investment Banks Pension Funds
Stock Exchanges Insurance Companies
Agents
Hedge Funds
Securities Trading Charities
Organizations Individual Investors
Custodians

Clearing Banks
Regulators

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