Hello, I am still learning to code will update the site as I learn to code
Hi, today we will be discussing about the lifecycle of a trade form execution to its settlement.
The trade first starts with the trades(Investment manager; we will be referring to as IM from now on) making a deal with the broker.
Once a deal has been made the IM send the trade details to the middle office, back office.
Here the trade confirmations team receives the trade details who then match the trade details over a Central Trade Matching(CTM).
CTM is a place where the trade details are matched between the IM and the broker.
In CTM details the the place of settlement, brokers settlement instructions and various other details like trade nominals and amount are matched.
This helps in automation and streamlining of the settlement process and helps avoiding the failure of trade.
Once the trade is matched over the CTM the trade is now handled by the settlements team.
The settlements team try to ensure that the trade settles on or before the value date.
They follow up with the broker and the custody to ensure that the trade has been successfully completed/settled
They also follow up on the failed trades i.e the trades which have not settled on time to know the reason for the failure and also to ensure they settle as soon as possible
A more detailed version will be posted once I learn CSS and other stuff. This basic version is a placeholder.