Trade Life Cycle - Process of Buying and Selling

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Trade life cycle

• The process of buying and selling

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Agenda

• What is A Trade Life Cycle?
• Introduction of a Trade Life Cycle
• Career in Capital Market
• What Are The Steps Involved In A Trade Life
  Cycle?
• The process of buying and selling

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What is a trade life cycle?
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What is a trade?

• Trade is a process of buying and selling any
  financial instrument.
• Just like any other product even a trade has its
  life cycle involving several steps, as those with
  a career in Capital Markets know.

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What are the steps involved in a trade life
cycle?
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TRADE INITIATION AND EXECUTION
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The sale process
This is a process of client acquisition in which
HNIs or Institutional clients are introduced to
various investment products or vehicles.
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TRADE CAPTURE
Trades are then booked internally in an FO
system for it to flow down to the operating
systems. It is booked in a Risk Management
System (RMS)
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Trade validation and enrichment
SSIs Security Identifier
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Trade confirmation

• This is an extremely critical step for the trade
  settlement.
• Trade details and SSIs are agreed with the
  counterparty at least a day prior to settlement
  date.
• Confirmation via depositories like Euro
  clear/DTCC

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Trade settlement

• This is the process of simultaneous exchange
  of cash versus securities for a security
  trade or cash versus cash for a Derivative trade.

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reconciliation
Reconciliation involves matching ledgers against
statements to ensure correct accounting of all
trade booked.
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If you are looking for the Capital
Market Courses, get to know more about the trade
lifecycle through a focused training and this
presentation could be a good starting point.
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Thank you
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