In Financial Markets

Trading operations refer to the processes and systems that support the execution, clearing, settlement, and reporting of trades. This usually happens in investment banks, brokerage firms, or asset management companies.

Key Functions:

1. Front Office – Traders, salespeople, and portfolio managers who make and execute trades.

2. Middle Office – Risk management, compliance, and trade support functions (trade confirmation, monitoring limits, etc.).

3. Back Office – Handles settlement, record-keeping, and reconciliation of trades.

Common Activities:

Placing buy/sell orders for securities (stocks, bonds, derivatives, etc.)

Monitoring market conditions

Managing trade settlements

Ensuring regulatory compliance

Recording and reporting