23512555 trade-life-cycle

Life Cycle of a Trade

Training Academy

Introduction Facilitator Self Course Outline Break Timings

15 mins – Forenoon 45 mins – Lunch 15 mins – Afternoon

Expectations

ExpectationsStatic data How trade is bookedSettlement and before settlementTrade booking and settlementImpact of incorrect settlementPre-matching before a settlementEntire life of a tradeFront office & middle officeHow trade is entered and how it is booked

What is your Idea of

Life Cycle of a trade ??

Section OneThe Market Participants

The Market Participants - FacilitatorsBrokersDealersInvestment BanksStock ExchangesAgentsSecurities Trading OrganisationsCustodiansClearing BanksRegulators

The Market Participants - InvestorsInstitutional Investors Mutual Funds (Unit Trusts)Pension FundsInsurance CompaniesHedge FundsCharitiesIndividual Investors

The Marketplace

SecuritiesTradingHouse

Exchanges

INVESTORS

INV

ES

TOR

S

INVESTORS

AGENTS

AGENTS

AG

EN

TS

ISSUERS

ISSUERS

Securities

Securities

Markets & Stock ExchangesA Market is an environment in which securities are bought and sold. Central to some market places is the Stock Exchange.Trades executed over an Exchange are executed “On-

Exchange” or “Exchange Traded”Other trades executed over the telephone are “OTC” (Over

the Counter) or Non-Exchange TradedEach securities market has an associated and

recognisable place to effect settlementE.g. French Government Bonds traded on the Paris Bourse settle in

Euroclear

Stock ExchangesRegion Country Financial

CentreStock Exchange

Europe UK London London Stock Exchange (LSE)London Metal ExchangeLondon International Financial Futures & Options Exchange (LIFFE)

Germany Frankfurt Deutsche BourseSpain Madrid Bolsa de Madrid

Asia Pacific

China Hong Kong Stock Exchange of Hong KongHong Kong Futures Exchange

China ShenzhenShanghai

Shenzhen Stock ExchangeShanghai Stock Exchange

Japan Tokyo Tokyo Stock ExchangeTokyo International Financial Futures Exchange (TIFFE)

Singapore Singapore Stock Exchange of SingaporeSingapore International Monetary Exchange (SIMEX)

Australia Sydney Australian Stock Exchange (ASX)America USA New York

ChicagoNew York Stock Exchange (NYSE)Chicago Stock Exchange

Other Market ParticipantsSalespeopleData ProvidersRegistrarsCoupon Paying AgentsTrade Matching ServicesSettlement Instruction Communication Mechanisms

Market Participants - IssuersOrganisations occasionally need to raise cash/capital to expand their businesses by: Selling part ownership issuing shares or equity Borrowing cash from investors issuing debt in the form of bonds

Type of Issuer ExampleCorporations Vodafone (UK)

Sovereign Entities Kingdom of Denmark

Local Governments City of London

Government Agencies Federal National Mortgage Association

Supranational Organisations International Bank for Reconstruction & Development (World Bank – IBRD)

Where does Deutsche Bank fit?Deutsche covers multiple functions:BrokerDealerFund/Asset ManagerInvestment BankIssuerGlobal CustodianRetail Bank

So far CoveredI. Market Participants

Section Two Static Data

What is Static Data?Static Data is the common term to describe the store of information used to determine the appropriate actions required for successful processing of each trade. For Example:Trading EntitiesTrading Books within each entityCounterpartiesInstruments CurrenciesPrices

Sources of Static DataWhere possible, financial institutions try and create a core

of “Golden Source” static data to avoid data conflicts in inter-dependent systems

Companies specialise in gathering and distributing financial data to institutions via:Electronic File Feeds InternetThrough on site terminals.

Security Data Providers or Data Vendors Reuters Bloomberg Telekurs Rolfe & Nolan SWIFT DTCC Alert Direct/OMGEO Standard and Poors Euroclear Wallstreet SIAC NSCC

Counterparty Static DataName, Address & Contact DetailsAuthorized Credit LimitsRelated CompaniesStandard Settlement InstructionsDate of account set upType of InstitutionDocumentation signedTax StatusRegistered RepresentativeConfirmation Details

Fax, Telex, Electronic Trade Confirmation, SWIFT, Email

Instrument Static DataType of instrument

Equity, Bond, Warrant, Derivative, CommodityIssue

Short Name, Long Name, Size, Denomination, IssuerCoupon Dates

Coupon Rate, Payment Characteristics - 30/360, A/360 etcAlternative/External References,

ISIN, Common Code, RIC, Quick Code, Cusip etcExchangeCurrencyMaturity DateFactors

Maintaining Static DataIncorrect static data causes many processing errors:Delayed ConfirmationsUnmatched TransactionsSettlement FailureIncorrect Fee calculationsIncorrect Profit & Loss CalculationPoor Reporting (Regulatory & risk impact)Increased cost per transaction due to reduced STP

Incorrect static data leads to reduced service and dissatisfied customers.

Static Data SummaryBad Static Data results in reduced service levels to clients

due to processing hold-ups and possible trade failureBad Static Data impacts operational risk and increases the

cost per trade processedBad Static Data contributes to poor internal & external

reporting impacting risk & reputationStatic Data will continue to be an important dependency

on the efficient processing of trades especially as the trade lifecycle window becomes smaller

STATIC DATA Must be populated correctly within all of the relevant systems.Must be obtained from a credible source as timely as possible.

So far CoveredI. Market ParticipantsII. Static Data

Section ThreeTrade Execution & Trades Processing

Straight Through Processing

Stra

ight

Thr

ough

Pro

cess

ing

(STP

)

Trade Execution

Trade Instruction

Trade Confirmation/Affirmation/Matching

Trade Processing

Trade Validation

Trade Capture

Trade Settlement

Instruction/Agent Matching

Fails & Fail Management

Trade Enrichment

Posit

ion/

Inve

ntor

y m

anag

emen

t

Corp

orat

e Ac

tions

Trad

e/Po

sitio

n Ac

coun

ting

Secu

ritie

s Le

ndin

g &

Borro

wing

Cash

Fun

ding

Reco

ncilia

tions

What is a Trade?A legal contract between two ‘counterparties’. A seller and

a buyer.The SELLER must deliver the commodity he has sold to

the buyer.The BUYER must pay the agreed purchase price on the

agreed value date.

The Front OfficeTradingSalesBrokingCorporate FinanceRepo Desk

Why Trade?Speculate

Profit from price move or increase in value of the asset.

Accumulate Benefit from dividend on shares and interest on bonds.

Hedging: To speculate and accumulate.To reduce risk.

Trade ExecutionTrade execution tends to operate in one of three ways where sellers and buyers execute trades:Trading Floor

Traditional method of trading – face to face on the trading floor of a Stock Exchange.

Computerised Exchanges Established in the UK as part of the Big Bang in 1986. This term

applied to the liberalization of the London Stock Exchange (LSE) when Trading was automated.

Telephone

Trade ExecutionFurthermore Trades can be:Quote Driven

Market Makers quote prices via computerised screens showing the level at which they are prepared to buy and sell with the intention of attracting business.

NASDAQ (US) SEAQ (UK)Order Driven

Orders from sellers are matched with buyers’ orders electronically.Xetra (Germany) SETS (UK) SEATS (Australia)

Electronic Communications Networks (ECN)ECN’s operate on an electronic basis only.Euro-MTS Brokertec Archipelago

Trade CaptureRegardless of the trade execution/origin, all trades must be recorded formally by the market participant. To update a trading position for a specific security within a trading

book To update average price of the current trading position to enable the

trader to calculate trading profit or loss To allow trade detail to be sent through to the Back Office for trade

processing and settlement As part of Market & Regulatory Reporting requirements To facilitate risk management

Traders use complex trading systems to facilitate trading & position management, trade processing is usually done via Back Office processing systems.

Front Office Trade DetailTrading BookTrade DateDeal TimeValue DateOperation (e.g. Buy/Sell, Lend/Borrow, In/Out)QuantityInstrument/SecurityPriceCounterparty

Trade Validation Trade validation occurs to check if the trade information received in

the Back office systems corresponds with the Front Office record. Trade validation includes the checking of constituent static data

information: Examples include:

Is the security recognised on the system? Is the Counterparty account recognised? Is the Trader allowed to trade on the trading book? Is the trading book valid to trade security x? Is the value date a valid settlement date in the location of settlement? Are the securities restricted?

All detected errors must be investigated and corrected.

Trade EnrichmentTrade enrichment exists to add specific trade data to the

basic trade detail to allow downstream processing.This data is not usually held in Front Office Trading

systems.This data can be added manually however in the STP

environment the aim is to derive this automatically.Examples include:

Calculation of cash values.Regulatory Reporting required.Trade Confirmation requirements.Selection of custodian details.Selection of Settlement Instructions and communication method.

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & Trades Processing

Section FourTrade Confirmation

Trade Confirmation/AgreementTrade Confirmation/Affirmation is an important process

required to reduce the risk of the traders P&L.Until the counterparty acknowledges the trade detail the

effect on the price or quantity of the trade is subject to change, impacting the traders book.

Trade agreement can be achieved through:Sending trade confirmations to the counterparty.Receiving trade confirmations from the counterparty.Trade or Contract Matching.Trade Affirmation.

Trade MatchingTrade Matching generally applies to mandatory electronic matching of trade details.Both parties are required to input details to a central

matching facility.Matching results (i.e. matched, unmatched) are provided

by the trade matching facility to both parties.Examples include:

Omgeo Central Trade Manager (CTM).TRAX (Internationally traded debt & securities).Depository Trust & Clearing Corporation (DTCC)National Securities Clearing Corporation’s Trade Matching Service.

(NSCC)

Trade AffirmationTrade Affirmation relates to the electronic matching of trade details typically between securities institutions and Institutional clients. Trade details are input by the securities house and sent to a trade

affirmation facility. The Trade affirmation central hub sends on the message. The institutional client agrees (affirms) or disagrees and the response

is sent back to the securities house. Both parties must subscribe to the service. Examples include:

Omgeo’s Oasys Global system. FIX – (Global) Oasys Domestic - (US) DTC ID (Institutional Delivery) – (US)

SummaryBasic PrinciplesThe longer a trade’s detail remains unchecked after trade

date, the greater the risk of price movement and P&L impact.

Trade confirmation/matching messages should be issued as soon as possible after trade validation.

Timely and accurate confirmation generation is a major client service consideration.

Prompt actioning of all confirmation discrepancies reduces trade risk.

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade Confirmation

Section FiveTrade Instruction

Settlement InstructionsSettlement Instructions are used to communicate the movement of securities and cash to the custodian.Trade Agreement confirms the commercial details of the

trade.Settlement Instructions indicate the commercial details of

the trade AND the location and account details for the cash and security movements. (Settlement Details).

Instruction ContentSettlement Instructions tell the custodian/Agent to carry out precise commands such as:The quantity of securities to be received or delivered.The net settlement value to be paid or received.From whom securities will be received.To whom payment must be made.From whom payment will be received.To whom securities must be delivered.On which date to carry out these instructions.

Instruction Communication MethodsS.W.I.F.T.CRESTDTCEuroclearClearstreamAgent BanksCustodians

Proprietary MessagingCRESTDTCEuclid (for Euroclear)Cedcom (for Clearstream)

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction

Section SixInstruction/Agent Matching

Why do we match instructions?To reduce settlement risk by:Increasing the chances of trade settlement on value dateResolving differences between trades and counterpartiesEnabling accurate funding of cash in nostro accountsManaging stock inventory in depositories

Matching at The Settlement AgentOnce Instructions have been received at the Custodian, the next lifecycle steps include:Instruction Matching

Custodian attempt to match the instruction to the counterparty instruction.

Status UpdateAttachment of the current status of the instruction.

(matched/unmatched/unknown).

Unmatched Resolution Investigation and resolution of non-matching instructions.

Trade SettlementUpdating the current status within the securities trading

organisation’s books and records.

Instructions Matching: Example

SecuritiesTradingHouse

CounterpartySecurities

House Counterparty

CSD or ICSDInstruction

Comparison

2

1 1

4 4

3Status Status

SettlementInstruction

SettlementInstruction

StatusMatched orUnmatched

StatusMatched orUnmatched

1 Instructions sent in by Securities House and Counterparty.2 Instruction matching occurs.3 Status is recorded.4 Instruction Status (Matched/Unmatched) is sent back to both parties.

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent Matching

Section SevenTrade Settlement

Settlement TerminologyTrade settlement is the act of exchanging securities and cash between buyer and seller.Value Date / Contractual Settlement Date.Actual SettlementValue Date and Settlement Date will be the same in the

majority of trade settlement cases.A percentage of trades fail to settle on value date and will

settle on another date referred to as the actual settlement date.

Settlement ConsiderationsHow to ensure trade settlementEnsure the seller holds the required level of securities at

the correct custodian.Some securities can settle at more than one location.

Ensure the purchaser has sufficient cash to make the payment.The purchaser may aggregate balances over a number of accounts,

the total amount must cover the amount required. (Funding).The purchaser may have a credit agreement with the custodian who

will cover the cash shortfall. (Secured credit line/Overdraft).The purchaser may have a collateral agreement whereby collateral

is held in the account to offset any non return of funds. (Margin)

Types of SettlementFull SettlementPartial SettlementSecurities OnlyCash OnlyCross Currency SettlementNet Settlement

SummaryTimely settlement of trades is an important part of the Trade Lifecycle with implications across the following areas:Inventory ManagementCash ManagementSettlement RiskCost ManagementFirm Reputation

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent MatchingVII. Trade Settlement

Section EightPosition/Inventory Management

Inventory ManagementManagement of the stock holding is an integral part of trade settlement:Inventory Management ensures:

The correct amount of securities (nominal) are available At the correct location (depot).At the correct time (on value date).

Methods of Inventory ManagementIf securities are unavailable we can consider the following:Internal Book Transfer.

Borrow securities from another firm account same depot.

Realignment.Borrow securities from another firm account different depot.

Stock Borrow Loan Trade.Borrow the securities from the market.

Autoborrow.Borrow the securities from the custodian/central depository.

Execute a Repurchase Agreement (Repo)Do nothing and let the trade fail.

Inventory & Funding Management

Transmit Settlement Instruction

Match Settlement Instruction at Custodian

Settle at Custodian

Securities

Choices

Cash

Choices

Do NothingLend Repo Do NothingBorrow viaRepo

BorrowUnsecuredAutoBorrow

Automated Lending & BorrowingService provided by large Custodians and Central Security Depositories:Borrowers

Borrow required securities automatically.Borrow certain types of security automatically i.e. Spanish Bonds.Borrow upon request.Sometimes used as a last resort due to the cost.

Lenders Lend all securities automatically. Lend certain types of security automatically. Lend upon request.

How do Trades & Positions get updated?Automated Updates

Instruction statuses are sent in by the custodian (fully settled, partially settled, failed etc).

The Securities Trading House automatically loads this information into the settlements systems.

The system attempts to locate the relevant trade in its internal books and records.

Once found it records the status update against the transaction. It will also automatically update the relevant security positions and

balances reflecting the delivery or receipts.

Manual Updates In some cases it may be necessary to settle trade manually and a

settlements specialist may manually record the update against the trade record.

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent MatchingVII. Trade SettlementVIII. Position / Inventory Management

Section NineFails & Fail Management

Failing Trades and their ImpactA failed trade is any securities transaction that does not

settle on value date.The buyer and seller are impacted by settlement failure:

Unable to use the cash to fund other security purchases.Unable to lend on money markets and earn credit interest on cash.Unable to pay off existing overdraft/debt.Unable to use securities required for an onward delivery causing a

break in the chain.Risk impact due to movement in the market causing a change in the

value of securities. (mark to market)

Why Trades FailInstructions not received by custodianInstructions remain unmatched on value dateInsufficient cash, collateral, credit lineInsufficient securities

The Importance of Managing Fails Fails will have cash implications

Interest claims on fails to receive. Interest expense on fails to deliver.

Fails make the reconciliation of corporate actions difficult which can lead to material losses

Regulatory Impact - In some markets fines are imposed for late trade settlementAustralia – Fines are imposed daily from value date to settlement

date for trades executed on the Australian Stock Exchange.UK - Fines are imposed by CREST from a member’s failure to

achieve pre-defined settlement targets.

Interest ClaimsAn interest claim is compensation from the failing party to

for the loss of cash interest or use of securities.Failed trades are monitored to determine the reason for failure and

enable the interest claim to be executed against the counterparty.Some marketplaces (e.g. ISMA) have minimum claimable interest

recommendations and deadlines by which claims must be issued.Back Office Settlements add immense value by actively monitoring

instruction statuses and helping to accurately fund cash shortfalls or short positions.

In some Securities Trading Houses, if the Firm Trader is at fault then the cost of the fail can be directly attributed to their book, impacting their P&L.

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent MatchingVII. Trade SettlementVIII. Position / Inventory ManagementIX. Fails & Fail Management

Section TenReconciliations

What are ReconciliationsReconciliations exist to check the accuracy of the firms

books and records: Internally between systems and departmentsExternally where securities and cash are held.

A Reconciliation Break is a discrepancy between one record and another

All breaks should be investigated, accounted for and corrected to ensure continued integrity

Automation of reconciliation reporting facilitates timely investigation and resolution of breaks on a daily basis

Why do we monitor reconciliations?RegulatoryManaging RiskCorporate Actions

Types of Reconciliations

Position ReconciliationsTrade ReconciliationsSystem Reconciliations

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent MatchingVII. Trade SettlementVIII. Position / Inventory ManagementIX. Fails & Fail ManagementX. Reconciliations

Section ElevenClearing and Custody

Types of Custodian 1Term Description ExampleCustodian An organisation that holds securities

and cash on its clients’ behalf and may effect trade settlement on its clients’ behalf.

Deutsche Bank Domestic Custody Services

Global Custodian As per custodian, but has a network of local (or sub-custodians) that hold securities and cash and effect trade settlement on behalf of the global custodian.

State StreetCitigroupBoNYParibas

Local Custodian A custodian that operates within a specific financial centre.

Credit Lyonnais ParisBanco Espirito Santo Lisboa

Sub-Custodian A custodian within a Global Custodian’s network of custodians.

Citibank MilanCitibank Madrid

Types of Custodian 2Term Description ExamplesCentral Securities Depository (CSD). National Central Securities Depository (NCSD)

An organisation that hold securities, normally in book entry form; usually the place of settlement, effected through book transfer. A CSD that handles domestic securities of the country in which it is located.

DTC (USA)CREST (UK & Eire)JASDEC (JPY)CCASS (HK)

International Central Securities Depository (ICSD)

A CSD that handles domestic and international securities. Only two organisations are recognised as ICDS’s.

Euroclear (Brussels)Clearstream (Luxembourg)

Settlement Agent An organisation that effects the exchange of securities and cash on behalf of its clients; resultant securities and cash balances may or may not be held.

Citibank MilanCitibank Madrid

So far CoveredI. Market ParticipantsII. Static DataIII. Trade Execution & ProcessingIV. Trade ConfirmationV. Trade Instruction VI. Instruction / Agent MatchingVII. Trade SettlementVIII. Position / Inventory ManagementIX. Fails & Fail ManagementX. ReconciliationsXI. Clearing & Custody

What is a Corporate Action?Any action by an Issuer which may affect the investor:The distribution of benefits to existing shareholders or

bondholdersCoupon PaymentsCash DividendsStock Dividends

A change in the structure of an existing securityStock SplitBonus Shares

A notification that may or may not require a response from the securities ownerAnnual MeetingVoting Rights

Section TwelveTrade & Position Accounting

ControllingThe accounting group within the bank is responsible for correctly recording and monitoring all of the financial transactions occurring within the Securities Trading House:Deutsche Bank Controllers include:Legal Entity Controller (LEC)

Responsible for DB Companies.

Business Area Controller (BAC)Responsible for product lines and the Business.

Central Functions – Risk ControllingResponsible for Managing Risk across the all divisions centrally.

Controlling ResponsibilitiesMonitor Stock/Security Positions Monitor Cash BalancesTrack Firm Books and RecordsCreate Good ProcessesCreate ControlsReconcile Trade DataReconcile Cash FlowReconcile all Journal activity

Example Control ReportsReconciliationsProfit and Loss Statement (P&L)Balance Sheet Reporting (BS)Buy and Hold Reporting (B&H)Management Information Reporting (MIS)Credit Risk Reporting (CRES)


XI. Clearing & CustodyXII. Trade & Position

Accounting

Section ThirteenRegulatory & Compliance Responsibilities

RegulatorsRegulatory authorities exist within the securities industry to ensure:All business undertaken within the marketplace is done in

the proper mannerTo protect investors who are participants within the

marketplaceGuard the reputation and integrity of the marketplaceMonitor activity which fails outside of normal business

trading practice

Regulator ResponsibilitiesAssessing suitability of securities trading houses to

participate within the market place.Monitor the business undertaken by securities trading

houses, investment advisors & fund managers.Enforcement of laws and possible prosecution of security

law violators.

Financial Regulatory AuthoritiesCountry Regulatory Authority

Australia Australian Securities & Investments CommissionPrudential Regulatory Authority

Bahamas Bahamas Central BankFrance Commission des Operations de Bourse

Banque de FranceHong Kong Securities & Futures Commission

Monetary AuthorityJapan Financial Supervisory Agency

Financial Reconstruction CommissionSingapore Monetary Authority of SingaporeUK Financial Services Authority (FSA)USA Securities & Exchange Commission (SEC)

US Commodity Futures Trading CommissionNational Futures Association

Reporting MethodsA number of methods exist dependent on how the local Regulator requires reporting to be effectedAutomatic forwarding of trade details by a computerised

exchange requiring no additional reportingAutomated message transmission by the member for

confirmation/matching/instruction purposes part of which is used to satisfy transaction reporting requirements

File feeds produced from Front Office/Back Office/Controlling systems and sent direct to Regulator

ComplianceCompliance is the Bank’s internal regulator. Responsibilities include:Ensuring compliance to rules of appropriate financial

regulatory bodyHandling confidential informationEnsure that personnel are adequately and properly

licensed to operate in the marketplaceManaging anti-money laundering regulationsMonitoring Employee Personal Trading


XI. Clearing & CustodyXII. Trade & Position

AccountingXIII. Regulatory &

Compliance

Section FourteenConclusions

Conclusions Reduce Settlement Cycles Increase Straight Through Processing for trades Increase use of central Counterparties Increase use of “Golden Source” static data Active management of collateral

Minimise Risk Minimise Operational Cost Offer increased service to clients Manage increasing volumes Maximise internal efficiency

Section FifteenReferences

Recommended Reading Michael Simmons

Securities Operations – A Guide to Trade & Position Management Stephen Valdez

An Introduction to Western Financial Markets David Dasey

An Introduction to Equity Markets Moorad Choudhry

An Introduction to Repo Markets Robert Hudsen

Treasury Management Financial Engineering

The Handbook of Equity Derivatives Oxford paperbacks

Dictionary of Finance & Banking

Industry Websites http://www.crestco.co.uk/ CREST http://www.dtcc.com/ Depository Trust & Clearing Corporation http://www.euroclear.com/ Euroclear http://www.jasdaq.co.jp/index_en.jsp Japanese Securities Depository Centre http://www.isma.org/home.html International Securities Market Associations http://www.bankofengland.co.uk/Links/setframe.html Bank of England http://www.fsa.gov.uk/ Financial Services Authority http://www.sec.gov/ Securities Exchange Commission http://www.nasdaq.com/ National Association of Securities Dealers

Automated Quotations. http://www.amex.com/ American Stock Exchange http://www.londonstockexchange.com/London Stock Exchange http://www.lchclearnet.com/ London Clearing House http://www.liffe.com/ International Financial Futures & Options

Exchange

Industry Websites http://www.iosco.org/iosco.html International Organ Securities Commission http://www.ipma.org.uk/ International Primary Market Association http://www.isda.org/index.html International Swaps & Derivatives Association http://www.isla.co.uk/ International Securities Lending Association http://www.isma.com/home.html International Securities Market Association http://www.liba.org.uk/ London Investment Bank Association http://www.lsta.org/ Loan Syndic Trading Association http://www.sia.com/ Securities Industry Association http://www.securities-institute.org.uk Securities Institute http://dspace.dial.pipex.com/jhalsey/ Compliance Exchange http://www.world-exchanges.org/ Federation of Exchanges http://www.trioptima.com/tri/ OTC Derivatives termination service http://www.finanz-adressen.de/WE-fin-regulatory.html

Financial Regulatory Authorities

http://www.iosco.org/iosco.html

http://www.ipma.org.uk/

http://www.isla.co.uk/

http://www.isma.com/home.html

http://www.liba.org.uk/

http://www.lsta.org/

http://www.sia.com/

http://www.securities-institute.org.uk/

Industry Websites http://www.exchange-handbook.co.uk/Exchange Handbook http://www.investorwords.com/ Glossary http://www.stpforum.com/ STP Forum http://www.stpinfo.com/ STP Info http://www.afponline.org/ Association for Financial Professionals http://www.calpers.ca.gov/index.jsp?bc=/investments/straightthrough.xml

Virtual Matching Utilities (VMUs); http://www.omgeo.com/ OMGEO http://www.sungard.com/ Sungard Systems

23512555 trade-life-cycle

Economy & Finance