A "trading operation" refers to the process of buying and selling financial instruments, encompassing various activities like order placement, execution, clearing, and settlement. It involves the management of financial transactions, including record-keeping and ensuring compliance with regulations. 

In more detail:

Financial Transactions:

Trading operations involve the execution of trades, which can include buying or selling stocks, bonds, derivatives, or other financial instruments. 

Order Management:

This includes placing orders, routing them to the appropriate exchange, and managing order modifications or cancellations. 

Execution:

Once an order is placed, the trading operation ensures it's executed efficiently and accurately. 

Clearing and Settlement:

After execution, the trade needs to be cleared (risk management) and settled (transfer of ownership and funds). 

Record Keeping:

Trading operations involve maintaining accurate records of all transactions, including trade details, counterparty information, and financial data. 

Risk Management:

A crucial aspect of trading operations is managing the various risks associated with trading, such as market risk, credit risk, and operational risk. 

Compliance:

Trading operations must comply with all relevant regulations and rules, ensuring that transactions are conducted ethically and legally.