Trading operations encompass the processes that support the buying and selling of financial instruments, including trade execution, reporting, and risk management. It involves tasks like capturing and validating trades, settling transactions, ensuring compliance with regulations, and reconciling data. Essentially, it's the back-office and middle-office support system for trading activities.

This video explains the trade life cycle and settlement process:

58s

Mentor Me Careers

YouTube · 23-Jul-2025

Here's a more detailed breakdown:

Key Functions of Trading Operations:

Trade Capture and Validation:

Ensuring every trade is accurately recorded in the firm's systems with details like price, quantity, and counterparty.

Trade Settlement:

Coordinating the exchange of financial instruments and payments between parties, often involving clearinghouses and custodians.

Risk Management and Compliance:

Monitoring trades to ensure they adhere to regulatory requirements and internal risk policies, including sanctions checks and position limits.

Reconciliations:

Comparing internal records with those of counterparties or clearinghouses to resolve discrepancies and ensure accurate matching and settlement.

Reporting: