FX - An Overview of Flows

Pre-Trade

1. order management..links to venues

2. trade execution..on venues

3. trade capture front office..venue to trading system

4. trade capture post trade system..trading system to post trade system

Trusted/Validated-Trade

5. trade enrichment..from static data

6. trade validation..through automated reconciliations

7. trade agreement..disseminating matching and exceptions

8. trade confirmation..communicating agreement with counterparts

Post-Trade

9. transaction reporting..electronic communication of trade to appointed reporting repository

10. settlement instructions..agreeing payment destinations

11. account allocations..agreeing client account destinations

12. custodian/prime interactions..communicating payment actions

13. trade settlement..finalisation of all trade transfers

14. lifecycle entry reflection in books and records..reconciling of internal books and records

15. valuations..mark to market of all trades and positions

16. risk metric calculations..greeks, liquidity and other risk metric calculation and distribution.

17. margin calculations..calculating required margin

18. margin reconciliations and agreement..reconciling required margin with counterparts

19. margin collateral transfers..transfer collateral in line with margin agreement

20. best execution and other market protection regulatory calculations..replay and reporting of trade and constituents

21. position consolidations..compressing like trades into overall position

22. trade compression..compressing offsetting positions market-wide to reduce gross balance sheet

23. trade and position data aggregation..aggregating trade, operational, risk and regulatory data holistically to facilitate re-purposing across entity.

24. data analytics and insights..analysing trade, operational, risk and regulatory data to drive insights

25. internal compliance and surveillance activities..analysing trade and related cashflows and transfers to ensure regulatory compliance.