Securities Operations: A Guide to Trade and Position Management

12

Trade Enrichment

12.1 INTRODUCTION

Following trade capture within the settlement system, the details of a trade require enrichment.

Whether by manual or automated means, trade enrichment involves the selection, calculation and attachment to a trade of relevant information necessary to complete a number of essential actions, following capture of the basic trade details.

In an automated environment:

• STP
• efficient servicing of clients
• avoidance of operational risk
• minimising operational cost

cannot be achieved successfully unless trade enrichment is completed accurately and within the necessary deadlines.

In an automated environment, trade enrichment is achieved through defaulting relevant information automatically from the store of information within static data; this is commonly known as static data defaulting. Within this book, the term ‘trade enrichment’ refers generically to the enrichment of trades, whether achieved manually or automatically. The term static data defaulting refers only where trade enrichment is achieved automatically.

Figure 12.1 Trade enrichment: overview

Figure 12.1 illustrates how trade enrichment is normally achieved.

Step 1: the basic trade details are captured within the settlement system, whether having been fed from a front office system or input ...