The document discusses the trade life cycle in financial markets. It describes the key functions of the front office, middle office, and back office in processing a trade from order receipt through settlement. The front office is responsible for trade execution and capture. The middle office validates, enriches, books and confirms trades. The back office handles clearing, settlement, accounting and reporting. Together these functions ensure trades are properly processed and records are accurate.
This presentation delves one through all the offices and the organizations involved in a trade life cycle. This tells us how a trade is executed in the real world with the help of the Front Office, Middle and Back Office.
This gives a high-level view of the processes involved in a trade life cycle like Trade execution, capture, affirmation, settlement and reconciliation.
Trading has changed from local to global and so have the processes from paper to Online. The result is change in process from T+3 to T+1 and real time trading and settlement of a trade.
This presentation delves one through all the offices and the organizations involved in a trade life cycle. This tells us how a trade is executed in the real world with the help of the Front Office, Middle and Back Office.
This gives a high-level view of the processes involved in a trade life cycle like Trade execution, capture, affirmation, settlement and reconciliation.
Trading has changed from local to global and so have the processes from paper to Online. The result is change in process from T+3 to T+1 and real time trading and settlement of a trade.
Guide to otc trading,
I. PLAYER’S DEFINITION
II. PLAYER’S DESCRIPTION
III. REGULATORY REPORTING, ACRONYMS AND IDS
IV. TRADE TYPES BY EXAMPLES
V. TRADE LIFECYCLE AND WORKFLOW
VI. TRADE EVENTS
VII. INTRO TO MARKETWIRE & VCON
A detail on forex market is being provided refering to global forex hours and the need of forex market. DAILY TURNOVER OF THE GLOBAL FOREIGN EXCHANGE. Indian forex market is also explaied with reference to usd inr movement. A brief technical analysis is also provided explaning the different chart types
Guide to otc trading,
I. PLAYER’S DEFINITION
II. PLAYER’S DESCRIPTION
III. REGULATORY REPORTING, ACRONYMS AND IDS
IV. TRADE TYPES BY EXAMPLES
V. TRADE LIFECYCLE AND WORKFLOW
VI. TRADE EVENTS
VII. INTRO TO MARKETWIRE & VCON
A detail on forex market is being provided refering to global forex hours and the need of forex market. DAILY TURNOVER OF THE GLOBAL FOREIGN EXCHANGE. Indian forex market is also explaied with reference to usd inr movement. A brief technical analysis is also provided explaning the different chart types
Valiant markets How to buy and sell shares in Stock Exchange.pdfValiant Markets
The trend of youngsters investing in shares is growing, and unlike in the past, it is no longer the preserve of the wealthy. The purchase and sale of shares has become a common trend thanks to advanced trading technologies, but success depends on having the right financial tools and a well-thought-out plan. Stocks carry enormous dangers and seldom promise quick wealth.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
6. WHY INVESTMENT BANK?
• Investment bankers are typically the highest-paid workers in
the finance industry—high salaries are most prevalent even
among younger employees.
• Ocean of opportunities – Have various functions from
backoffice roles to front office roles.
• Over 5,000 Investment banking related jobs to be created in
India by 2025.
• Hyderabad and Bangalore are hotspot for major investment
banks, recently J P Morgan Chase and Goldman Sachs have
started their new offices.
9. INTRODUCTION
In the financial market, “trade” means to buy and/or
sell securities/financial products.
To explain it further, a trade is the conversion of an
order placed on the exchange which results in pay-
in and pay-out of funds and securities. The trade
ends with the settlement of the order placed.
All the steps involved in a trade, from the point of
order receipt (where relevant) and trade execution
through to settlement of the trade, are commonly
referred to as the ‘trade lifecycle’.
10. COMMON TERMS IN TRADE LIFE CYCLE
ISIN : International Securities Identification Number
SEDOL: Security Exchange Daily Official List
SSI : Standard Settlement Instruction
SWIFT : Society for Worldwide International
Financial Telecommunication.
IBAN : International Bank Account Number
LIBOR : London Inter Bank Offered Rate.
13. FRONT OFFICE
Trade Execution
Order execution is the process of accepting and
completing a buy or sell order in the market on
behalf of a client.
Order execution may be carried out manually or
electronically, subject to the limits or conditions
placed on the order by the account holder.
Brokers are beholden to best execution practices
that are regulated by the exchanges
14. FRONT OFFICE
Trade Capture
Orders are received from clients
These are received by sales traders via phone
these are termed as cash orders.
Orders received electronically are termed are DMA
or ALGO orders
New orders are entered into Order Management
System.
This step is referred as “ Trade Capture”.
15. FRONT OFFICE
Order price are as follows:
Limit
• A price is specified, meaning
– When buying, pay no more than the stated price
– When selling, accept no less than the stated price
At Best • At the best available price, also known as an At
Market Order
Stop Loss • Sell if and when the market price falls to the
stated price
16. MIDDLE OFFICE
The Middle Office in Trade Life Cycle plays a vital
role in the exception management. This is where the
three important steps are done, which are:
Validation Enrichment Booking Confirmation
17. MIDDLE OFFICE
Trade Validation : Fundamental checks on the trade
which includes
Trading book
Security identifier
Trade date
Quantity
Price
Commission
SSI
Value date
18. MIDDLE OFFICE
Trade Enrichment: 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. It involves
selection, calculation, and attachment to trade of appropriate
information which is essential to complete various required actions
following
Trade components that require enhancements are related to:
• Trade figuration – calculating trade cash values
• Trade comparison requirements and validation for counterparties
• Selection of relevant custodian details
• Issuing Settlement instructions (For example, by SWIFT or fax)
• Reporting the trade to the regulatory authorities trade Enrichment
can be effectively achieved from the static data repository, in an
automated environment. Supposing any data items are absent, the
trade is treated as an exception and all the processing will be
aborted until the required information is added to the static data
repository.
19. MIDDLE OFFICE
Methods of trade validation
The validation of trades can be done manually or
electronically
Manual – As there are numerous trade components
to be validated only limited components can be
manually validated. There is also possibility of human
error and hence it is used for scanning the trades.
Automatic- Most of trades are automatically validated
via systems any potential difference between buyer
and seller are highlighted and can be corrected
before settlement.
20. MIDDLE OFFICE
Trade Booking: Booking of trades from front office
into internal systems and comparing the details in
order to avoid settlement delays. Orders are
received via email or electronically via FIX (financial
information exchange) message.
FIX has become the language of the global
financial markets used extensively by buy and sell-
side firms, trading platforms and even regulators to
communicate trade information. This non-
proprietary, free and open standard is constantly
being developed to support evolving business and
regulatory needs, and is used by thousands of firms
every day to complete millions of transactions
21. MIDDLE OFFICE
Trade Confirmation: The trade that is now
actualized still needs to be confirmed. Brokers on
both sides of the trade (the buyers and the sellers)
will make sure their clients agree with the specifics
of the trade. These details include which securities
are being exchanged, at what price, and at which
date the settlement will occur. It can be done in
various ways depending on client requirement
electronically or via pdf or excel.
23. BACK OFFICE
Clearing : Once the trade is in the clearing house, it’s time
to calculate exactly what is needed from each side of the
trade. The clearing house then informs both sides of what
is needed. It also ensures that all of the obligations are
met by both sides.
The most common way to trade is T+2, in which T stands
for the transaction date and 2 represents the number of
days after the transaction date in which the settlement will
take place. In the case of T+2, it means the settlement will
take place 2 days after the transaction is made. After this a
trade will flow into the final stage in this journey, the
settlement phase.
24. BACK OFFICE
Trade Settlement: In the securities industry, the
trade settlement period refers to the time between
the trade date—month, day, and year that an order is
executed in the market—and the settlement date—
when a trade is considered final. On the last day of
the settlement period, the buyer becomes the holder
of record of the security.
25. BACK OFFICE
The classification of Trade settlement can be done into 3 types:
• Normal/ Rolling Settlement
• Trade-to-Trade Settlement
• Auction
Rolling Settlement
In this type of trade settlement, securities are settled on
successive dates based on the settlement period in the contract
and the day when the trade was executed. So, let’s take a trade
contract period with T + 2 days settlement time, here if a trade is
placed on Monday and another trade is placed on Tuesday, the
trade on Monday will be settled on Wednesday and the trade
executed on Tuesday will be settled on Thursday (successively).
This is different from the account settlement method wherein the
trade executed within a given period is all settled at once.
26. BACK OFFICE
Settlement Failure –
There are three key reasons why trades fail: (1) issues with
funding and inventory of investment assets; (2) inefficient
manual processes; and (3) failures of automated systems to
produce accurate data and integrate with the reconciliation
process.
With funding and inventory issues, the buyer:
• May not have enough cash in the account designated for
settling trades with the custodian
• May not have credit line in place or an overdraft agreement
with the custodian in the event of a cash or credit deficiency in
the account being traded
• Does not have a netting agreement in place with the
counterparty
27. BACK OFFICE
Trade-to-Trade Settlement
In the Asset allocation, Trade to Trade Settlement method, intraday trading in
prohibited for securities falling in this segment.
In this type of settlement method, the trader is required to accept the delivery of
the security when bought and provide the monetary value, while selling the
trader has to deliver the securities and the monetary value of the same will be
provided to the trader for the securities traded. In short, shares are traded only
for delivery.
Auction
Any trade involves at least two parties to the transaction, in the trading of
financial securities, on one side we have the buyer of the security on the other
side we have the seller of the financial security. The auction takes place when
the selling party of the transaction or trade fails to deliver within the given period
on the agreement of selling the security for the said or agreed upon monetary
value of the security. It’s a kind of penalty for the investor’s carelessness while
trading.
In this case of failure, the broker of the selling party will try to purchase the
security in a buy-in-auction market, the sum of the auction price along with the
penalty and brokerage charges has to be paid by the defaulter (the selling party).
The settlement of the action is done on T+3 days given the broker tries and
purchases the share in the auction market on T + 2 days.
28. BACK OFFICE
When a trade fails, the effects can range from operational costs
and risks, as well as damage to reputation and relationships with
counterparties.
The party who fails to pay or deliver the security may be asked
for compensation for the opportunity costs on the value of the
deal until settlement is reached or the party who failed to pay or
deliver the security may be asked to pay fines for failing to meet
their trading obligations
29. BACK OFFICE
Accounting and Reporting: The reconciliation
stage of the trade life cycle ensures that all accounts
of the trade which has taken place are consistent
and accurate. Reconciliation can be performed in
several ways, but it involves the act of comparing
ledgers against statements from both sides of the
trade. This confirms records made and avoids the
possibility of fraud or inaccurate record keeping.
30. OTHER IMPORTANT DIVISIONS OF TRADE LIFE
CYCLE
Investment
Bank
Research
Legal and
Compliance
Risk and
Fraud
Management
Controls
31. DID YOU KNOW
It is estimated global stock market value stands at
$95 trillion.
1653 first stock exchange was established in
Amsterdam.
1875 BSE was established
Most expensive Indian stock INR 85,166
Most expensive stock Berkshire Hathaway –
$ 4,18,402.00