This gives a high-level view of the processes involved in a trade life cycle like Trade execution, capture, affirmation, settlement and reconciliation.

1. Trade Life Cycle
Matta Sree Keerthi

2. Steps in Trade Lifecycle
 Trade Execution
 Trade Capture
 Trade Affirmation/Validation/Confirmation
 Trade Settlement
 Reconciliation

3. 1. Trade Execution
 Open outcry
 Verbal Agreement
 Electronic Agreement

4. 2. Trade Capture
 Information about a particular trade is fed into the
system at this step.
 Trade capture can be done automatically or
manually.

5. 3. Trade
Affirmation/Validation/Confirmation
 What have been captured is checked against what
have been executed in order to validate a trade.
 Verifying the incoming of a brokers confirmation is
done in order to affirm a trade(Here trader’s record
is checked against broker’s record).
 Both parties agree upon a same trade capture so
as to to confirm a trade.

6. 4. Trade Settlement
 Delivery versus payment
 Free delivery (or) Free of payment delivery
 Payment versus payment

7. 5. Reconciliation

8. Thank You