Step 5: Trade Confirmation
After an execution occurs, a number of mechanical steps begin that take the transaction to settlement. If an entire order is executed with a single fill, the process is simple and straightforward, but if, as in our example, the first execution is only one part of the complete execution of an order, the entire process has only just begun.
For an order completed in a single execution, the confirmation process is mainly a formality (see Figure 5.5). The trading venue through the intermediary notifies the principal of the details of the trade, which satisfies the order. When an execution is only a partial fill, the confirm provides important information that updates the OMS as it controls the workflow and permits David ...