Post-trade processing

Purpose

Verifying and finalizing trade details, ensuring correct transfer of funds and securities, updating ownership records, arranging payment, mitigating settlement risk, ensuring market integrity and efficiency.

Challenges

Inefficiency, increasing trading volumes, increased regulatory supervision, new regulated collateral movements, shrinking margins, growing complexity of exotics transaction processing, ever-changing regulatory landscape.

Definition

Series of operations that occur after a financial trade has been executed, including clearing, settlement, and asset servicing.

Key Components

Clearing, Settlement, Asset Servicing, Trade Capture, Trade Processing, Give Up Messaging, Credit Management.

Modernization Efforts

Integration of tokenized securities, leveraging blockchain technology, shift towards 24/5 trading.

Role in Financial Transactions

Crucial for accuracy and completion, cornerstone of market integrity and efficiency.

Post-trade processing is a crucial step in verifying and finalizing trade details after the initial transaction is complete. The clearing process involves reconciling purchases and sales, ensuring that transaction funds and securities are correctly transferred. Settlement risk can occur if trades do not clear, potentially leading to financial losses due to accounting errors. [...] The bottom line in post-trade processing is its crucial role in verifying and settling trade transactions efficiently. As trades occur rapidly and errors are inherent in fast-paced transactions, this process clarifies the exchange details, updates ownership records, and ensures the proper transfer of securities and cash. [...] Post-trade processing is crucial in ensuring the accuracy and completion of a financial transaction. After a trade is executed, the buyer and seller verify trade details, approve the transaction, transfer ownership, and arrange payment for securities. This process helps eliminate errors, particularly in non-standardized markets like OTC, where trades don't rely on centralized clearinghouses. ### Key Takeaways

: Securities post-trade processing is evolving fast. As trading volumes increase, firms are facing increased regulatory supervision and new regulated collateral movements, in the context of clearing and Uncleared Margin rules. Our integrated and STP solution offers support for all securities trading types and financing activities. Key Features [...] Securities post-trade processing is evolving fast. As trading volumes increase, firms are facing increased regulatory supervision and new regulated collateral movements, in the context of clearing and Uncleared Margin rules. Our integrated and STP solution offers support for all securities trading types and financing activities. [...] ### Nasdaq Calypso Post-Trade Processing Solution In today’s world of shrinking margins, growing complexity of exotics transaction processing and an ever-changing regulatory landscape, it is essential that firms transform their back offices into reliably agile, adaptable, auditable, scalable, and intelligent processing machines that efficiently serve their business needs. Please check your inbox to read the Nasdaq Calypso Post-Trade Processing Solution brochure.

1. What is post-trade settlement? Post-trade settlement is the process that finalises a trade, involving the exchange of securities for payment between the buyer and the seller. 2. Why is settlement important in trading? Settlement ensures the completion and legitimacy of financial transactions, mitigating the risk of default and maintaining market stability. [...] Image 21Image 22 What is Post Trade Settlement? Imagine a world where trades are executed, but there’s no guarantee they will be finalised. That’s where post-trade settlement comes in. It’s the proverbial handshake after a deal, the binding agreement that ensures the seller delivers the securities and the buyer completes the payment. Without this process, the trust and reliability of financial transactions would crumble. The Importance of Settlement in Trading [...] The financial markets are a whirlwind of transactions, with billions changing hands every day. But what happens after a trade is executed? Enter the world of post trade settlement, the unsung hero of the financial markets, ensuring that the exchange of securities and payments is conducted with precision and security. This vital process, though often overshadowed by the more glamorous trading phase, is the cornerstone of market integrity and efficiency.

Post-Trade Processing Trade Capture Send and receive notifications of execution between venues and counterparties for trade booking and processing. Trade Processing Automate trade processing, messaging and matching to confirm, allocate, clear and report trades. Give Up Messaging Send block and allocation level trade details to Prime Brokers for give up processing. Credit Management Manage FX credit including monitoring, rebalancing, kill switches and documentation management. [...] Insights Search Login Contact Support Back Search Trade Processing Powered by MarkitServ &Traiana Our processing services sit at the heart of the post-trade lifecycle across OTC and exchange traded derivative markets, standardising and automating workflows across asset classes. Contact our experts Image 11 [...] ### Bringing together an unparalleled network of counterparties, CCPs, trade repositories and custodians, our trade processing services are vital in driving efficiencies and reducing risk across bilateral and triparty post-trade interactions.