Key stages in:
Trade Lifecycle
of an Equity
Explained in simple terms.Whatis
Trade Lifecycle (TLC)
of an Equity ?
TLC of an equity refers to the
series of stages that a trade
involving equity securities goes
through, from initiation to
completion.
It encompasses the entire
process involved in buying or
selling equities in the financial
markets.Key Stages...
1. ORDER GENERATION
¢ Investors or traders create buy/sell
orders
¢ Orders can be market, limit, or stop
orders
2. ORDER ROUTING
¢ Orders are sent to the right market
or exchange
¢ Electronic platforms and algorithms
help with efficient routing
3. ORDER EXECUTION
¢ Orders are matched with
counterparties
¢ Trade happens on an exchange or in
other markets
HT.eiz=
Continued...
4. TRADE CONFIRMATION
¢ Both parties agree on the trade
details
¢ Price, quantity, and settlement terms
are confirmed
5. TRADE CLEARING
¢ Making sure both parties fulfill their
obligations
¢ Checking trade details and resolving
any issues
6. TRADE SETTLEMENT
e Actual transfer of ownership and
funds
e¢ Done through a central Q
clearinghouse or custodian I 8
8@Continued...
7. TRADE REPORTING
¢ Reporting trade details to relevant
parties
¢ Complying with regulations and
ensuring transparency
8.TRADE RECONCILIATION
¢ Matching trade details between
parties
e Ensuring accuracy and resolving any
differences
9. TRADE SURVEILLANCE
¢ Monitoring for market abuse or
irregularities
¢ Following rules and preventing fraud
oS
&ez
- ~ Mnemonic
ORDER-GRE Exam &
TRADE-CCS with RRS
ORDER-GRE
¢ Order Generation
¢ Order Routing
e Order Execution
TRADE CCS RRS
e Trade Confirmation
e Trade Clearing
e Trade Settlement
¢ Trade Reporting
e Trade Reconciliation
e Trade SurveillanceThank you!
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in| Krushna Akele
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