Mastering Blockchain - Second Edition

Trade life cycle

A general trade life cycle includes the various stages from order placement to execution and settlement. This life cycle is described step-by-step as follows:

• Pre-execution: An order is placed at this stage.
• Execution and booking: When the order is matched and executed, it converts it into a trade. At this stage, the contract between counterparties is matured.
• Confirmation: This is where both counterparties agree to the particulars of the trade.
• Post booking: This stage is concerned with various scrutiny and verification processes required to ascertain the correctness of the trade.
• Settlement: This is the most vital part of trade life cycle. At this stage, the trade is final.
• Overnight (end-of-day processing): End-of-day ...