Trade Life Cycle

The trade life cycle in investment banking is the process of a financial transaction from start to finish. It is a series of steps that ensure a trade is executed and verified by all parties involved. The trade life cycle is important for the legitimacy of financial markets

Trade Life Cycle is carried out by three levels:

1:Front Office.

2:Middle Office.

3:Back Office.

where Front Office performs the task of:

A-Trade Initiation

B-Trade Execution

C-Trade Capture.

Middle Office Carries out:

D-Trade Enrichment

E-Trade Validation

F-Trade Verification.

Back Office is assigned the task of:

G-Trade Settlement

H-Trade Reconciliation

I-Trade Regulatory Reporting.

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