• EXECUTIVE PROGRAMME IN INVESTMENT BANKING AND CAPITAL MARKETS
  • ADVANCED MANAGEMENT PROGRAM IN FINANCIAL SERVICES AND CAPITAL MARKETS
  • IIM Indore Postgraduate Certificate Programme for Emerging CFOs
  • POSTGRADUATE PROGRAM IN BANKING AND FINANCE
  • PGP in New Age Banking
    Co-created with Imarticus Learning
    4.8 out of 5 by 669 learners
    4x Industry Demand
  • POST GRADUATE DIPLOMA IN MANAGEMENT
    Co-created with BIMTECH
    4.8 out of 6071 learners
    2x industry demand
  • MBA in Investment Banking
    Co-created with Jain University
    4.5 out of 5 by467 learners
    2x industry demand
  • MBA in Fintech
    Co-created with Jain University
    4.4 out of 5 by 349 learners
    2x industry demand
  • MBA (Distance) in Banking and Finance with NGASCE
    Co-created with NMIMS
    4.7 out of 5 by 669 learners
    4x Industry Demand
  • Post Graduate Program in Banking and Credit Underwriting
    4.7 out of 5 by 1376 learners
    12 X industry demand

Everything You Need to Know About Trade Validation and Enrichment in The Trade Life Cycle

The development of technology results in the rapid development of the trading landscape.

There are no messengers anymore. Instead, we have letters. In place of the stock ticker, there is a television. 

Innovative technology accelerated the trade lifecycle process.

The workflow of a trade order from the time it is created is known as the trade life cycle. Front office, middle office, and back office activities make up the Trade Life cycle.

As a result, every element, from data storage and communication to online banking, has affected how the current market works.

A specific trade is executed in a market from the other side of the world in the wink of an eye.

Introduction to Trade Life Cycle

The Trade life cycle can be seen from different angles. The Trade Life Cycle can be seen as the interaction between the buyer and the seller. However, it can be divided into trading and operational activity.

Front Office: Frequently referred to as the trading floor, the front office primarily conducts the tasks of trade capture and trade execution.

Middle Office: The Middle Office in the Trade Life Cycle is crucial to the management of exceptions.

Back Office: The "backbone" of the entire commerce life cycle is, in a sense, the back office.

Trade Enrichment in Trade Life Cycle

Trade Enrichment refers to an enhancement of something valuable to improve efficiency. It adds specific trade data to the basic trade detail to allow Downstream processing.

Trade figuration

Calculating trade cash values is known as trade figuration. It entails figuring out the net value of a securities transaction.

Selection of relevant custodian details

STOs engage local agents to exchange securities and cash on their behalf to decrease the risk of being without securities and cash and to interchange securities and cash.

Issuing Settlement instructions (For example, by SWIFT or fax)

When a trade is settled, both parties involved in the transaction receive their respective payments. It is, therefore, a two-way process.

Reporting of trade

It entails informing stock market regulators of trades. Reporting of trade is required. It is carried out to improve market transparency.

Trade Validation in Trade Life Cycle

Soon after the completion of execution and enhancing trade, the next step is establishing certain measures. This is known as Trade Validation. In this Trade validation and enrichment in Capital Market, the process inspects if the received trade information in the back-office systems coincides with the front-office records.

It takes a lot of preparation and follow-up for a trade to actually happen.

To gain a greater grasp of trading, it is necessary to comprehend the full transaction lifecycle or the series of events and procedures that take place when a trade is made.

Know More about Special Trades

Special trades – includes validation of certain trades such as

  • That is deemed to be large
  • Trades in a specific market
  • Trades with a specific counterparty
  • Trades with prior value dates
  • Trades with prices outside a specified range
  • Trade setting on a Free of Payment (FOP) basis

Exception handling

Few trades may require editions or have to be cancelled. In such instances, they are sent back to the front office. If any trade is not resolved within the stipulated period, it may be escalated to a more skilled member of the middle office.

Conclusion

Once you have a firm grasp on the life cycle of a trade, you may use it to learn more about investment banking's global markets section. You will gain knowledge of the various facets of the trade life cycle and the jobs accessible to those seeking to make a career in this field.

 

For Online Course Enquiries
About Imarticus
Imarticus Learning is India’s leading professional education institute that offers training in Financial Services, Data Analytics & Technology. We’ve successfully transformed careers of over 35,000+ individuals globally through our Certification, Prodegree, and Post Graduate programs offered in association with leading and renowned global organisations in the Financial Services, Data Analytics & Technology domain.
Related course
  • Certification
    EXECUTIVE PROGRAMME IN INVESTMENT BANKING AND CAPITAL MARKETS
    Course duration(year)
    1
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Advanced Management Program
    ADVANCED MANAGEMENT PROGRAM IN FINANCIAL SERVICES AND CAPITAL MARKETS
    Course duration(hours)
    126
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Postgraduate Program
    IIM Indore Postgraduate Certificate Programme for Emerging CFOs
    Course duration(Months)
    12
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Postgraduate
    POSTGRADUATE PROGRAM IN BANKING AND FINANCE
    Course duration(months)
    4
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Placement Program
    PGP in New Age Banking
    Co-created with Imarticus Learning
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.8 out of 5 by 669 learners
    4x Industry Demand
    Upcoming Batches
    Date Location Schedule
    8th Jan 2022 Live Instructor - Led Training Online
    Date Location Schedule
  • Finance
    POST GRADUATE DIPLOMA IN MANAGEMENT
    Co-created with BIMTECH
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.8 out of 6071 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    3rd August Live Instructor - Led Training Online
    Date Location Schedule
  • Recent Graduates
    MBA in Investment Banking
    Co-created with Jain University
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.5 out of 5 by467 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    31st July ONLINE Online
    Date Location Schedule
  • Recent Graduates
    MBA in Fintech
    Co-created with Jain University
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.4 out of 5 by 349 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    31st July ONLINE Online
    Date Location Schedule
  • Placement Program
    MBA (Distance) in Banking and Finance with NGASCE
    Co-created with NMIMS
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.7 out of 5 by 669 learners
    4x Industry Demand
    Upcoming Batches
    Date Location Schedule
    8th Jan 2022 Live Instructor - Led Training Online
    Date Location Schedule
  • Post Graduate
    Post Graduate Program in Banking and Credit Underwriting
    Course duration(6)
    Upcoming batches
    1
    Organizations enrolled
    20
    4.7 out of 5 by 1376 learners
    12 X industry demand
    Upcoming Batches
    Date Location Schedule
    3rd August MUMBAI Online
    Date Location Schedule