Trading: Executing the Clients Requirements (Map B)


Map B trading

Original Source: The Deal Maker

And so what happens after the deal gets done? We of course, have a formal contract representing the client’s requirement.

At this point our banker confirms the order by submitting the requirements in his system. This request (refer to top left hand side of infographic) makes its way to Sales (refer 2.2 Map A) and then to FO trader who [1] executes the order. Depending on what is required, the securities bought/sold can be executed through [2] the exchange (ASX, Chi-X here in Oz) where bids and offers are matched, or through [3] the OTC marketplace where the deal is tailored to client requirements.

Post execution, a [4] confirmation is sent back to the trader. Information is also sent to [5] the clearing system automatically where clearing participants check the trade orders executed by the trader against the client’s instructions. Now i can see a whole new map for the Back Office in the future so let’s leave it by saying that the tail end of the process above is [6] trade settlement.

In the next episode of Banking a Deal, we head to the world of Treasury (Map C) and explore their central functions.

And as per our prior on simplification, the most difficult part in this exercise was the decision on what to include and what to exclude. In other words, this is a general view – each bank is different.

Before we go – big thank you to Amanda for validating the output!

Care to comment on this series? Feel free to drop us a comment on what you would like us to cover.

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