The items entered include the trade date, time of execution, settlement date, counterparty, instrument, amount, and price or rate. Where the front office (sales and trading) and the back office (operations and settlement) use separate systems, the back office enters the trade from the ticket written by the trader. Where STP or similar systems process the trade from execution to settlement, the front office enters the trade and the back office verifies it1.

Once the entry has been verified, the back office sends a trade confirmation to the counterparty and moves the trade on to reconciliation with the counterparty's records2.

Notes

  1. Board of Governors of the Federal Reserve System, "Trading and Capital-Markets Activities Manual," Section 2050.1 "Operations and Systems Risk (Front-Office Operations)" (February 1998), "Transaction Flow," pages 2–3. ↩

  2. Board of Governors of the Federal Reserve System, "Trading and Capital-Markets Activities Manual," Section 2060.1 "Operations and Systems Risk (Back-Office Operations)," page 3 (February 1998), continuation of "TICKET FLOW." ↩