#trading operation

1.Trade Capture & Validation

Every trade made by a trader must be recorded (captured) accurately in the firm’s systems. Operations teams verify the details such as price, quantity, counterparty, and timestamps.

2. Trade Settlement

Ensures that financial instruments and payments are exchanged between parties. This typically involves coordination with clearinghouses and custodians to complete the transaction.

3. Risk Management & Compliance

Operations teams monitor trades to ensure they comply with regulatory requirements and internal risk policies. This includes sanctions checks and position limits.

4. Reconciliations

This involves comparing internal records with those of counterparties or clearinghouses to resolve discrepancies and ensure all trades are matched and settled correctly.

5. Reporting

Regular reporting to internal stakeholders and regulators is crucial. This includes trade confirmations, transaction cost analysis, and regulatory filings (e.g., EMIR, MiFID II).

6. Technology & Automation

Modern trading operations rely heavily on software platforms that automate many of these tasks, reducing errors and increasing speed and efficiency.