Securities Operations: A Guide to Trade and Position Management

9

Static Data

9.1 INTRODUCTION

The use of static data is a significant factor in enabling an STO to achieve STP. Static data is the commonly used term to describe a store of information that is used to determine the appropriate actions necessary to achieve successful processing of each trade.

Static data is necessary to set up at six major levels, namely:

• trading companies within the STO
• counterparties of the STO
• trading books within a trading company
• currencies
• securities
• security groups.

In each case, the necessary static data is explored, within this chapter.

Such data can be held entirely manually, or within a systems repository. The use of static data is not confined to the settlement department, as other areas including:

• order management
• equity, bond and repo trading
• corporate actions
• reconciliation
• risk management

also make use of this information.

The term ‘static data’ implies that the information does not change. The majority of static data items are static and not subject to change; however, certain aspects of static data are subject to periodic change or updating, and such areas of static data are highlighted within this chapter.

The challenge for an STO is to:

• gather the relevant data
• store it securely
• update it when necessary
• utilise it appropriately

ensuring that for every individual trade, only the appropriate information is attached to the trade from the entire store of data. Typically, the amount of information held within an STO's static data store is vast. ...