Trade Lifecycle


FinPricing offers:

Four user interfaces:

  • Data API.
  • Excel Add-ins.
  • Model Analytic API.
  • GUI APP.
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Trade Life Cycle Management Guide


A trade, also called a deal, is an exchange of financial products from one entity to another. Managing the life cycle of a trade is the fundamental activity of exchanges, investment banks, hedge funds, pension funds and many other financial companies.

All the steps involved in a trade, from the point of order placed and trade execution through to trade settlement, are commonly referred to as the trade life cycle. Trade life cycle consists of a series of logical stages and steps.

  • Pre-sale stage: Marketing persons from investment banks, brokers and dealers introduce various financial products and vehicles to clients. Investors or institutional fund managers survey the market and find the most suitable and competitive products.
  • Trade execution: After trading negotiations between seller and buyer, an order is placed and the trade is executed. The completion of a buy or a sell order of a financial product is known as Trade Execution.
  • Trade Capture: After trade execution, the trade is booked in the Front Office system, Middle Office Risk Management system and Back Office system.
  • Trade Validation and Confirmation: Back office validates trade attributes and confirms trade settlement. Risk Management checks the valuation, risks and limits.
  • Trade Settlement: Any fee or premium needs to be settled. For a periodic cash settlement trade, such as interest rate swaps or fixed rate bonds, there is a process of simultaneous exchange of cash between parties at each payment date.
  • Trade Termination: A trade may be expired at maturity or terminated early. The early termination could be caused by a position sell or triggered by an early termination provision, such as auto call/cancel, knock-out, etc.
Trade Capture

First of all, users need to create a least one book to hold trades. You can find the instruction of managing books. A book is a collection of financial assets. It could be a portfolio or trading strategy or desk. FinPricing portfolio management supports multi-level book(portfolio) hierarchies.

FinPricing provides two interfaces for users to capture trades:

Trade Valuation and Validation

Users can define their own end-of-day (EOD) details. At each EOD, FinPricing will conduct EOD process automatically based on user definition – value and settle all trades and generate reports. Also FinPricing provides a manual interface for what-if analysis on valuation and validation

Trade Cash Payment Settlement

This is the process of simultaneous exchange of cash payments or assets periodically between two parties for derivatives ( such as interest rate swaps) or securities (such as bonds). In the EOD process, FinPricing will automatically compute the cash payments at each payment date for a periodic payment instrument. However, the system also provides an interface for a user to settle or modify cash payment manually

Trade Termination Settlement

A security or derivatives could be expired, early terminated or sold. FinPricing allows a user to terminate trades flexibly.


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