The Trade Lifecycle: Behind the Scenes of the Trading Process

21

Reports

21.1 INTRODUCTION

A report is a mechanism for conveying information. A process works on data and produces results. These results are reported to interested parties. Examples of reports featured in the trade lifecycle are:

• opinion of the legal department on a proposed trade and issues requiring clarification;

• report on all new trades transacted today;

• current P&L per trader;

• combined asset holdings across all trading divisions;

• budget for forthcoming year;

• management explanation of sudden large losses;

• list of bonds paying coupon in the next seven days;

• research paper on the state of the lead mining industry.

Reporting is a fundamental part of the processing of a trade. In order for all business functions to perform their daily tasks, they need recent, relevant and accurate information about the trade. This information flows by way of reports.

Reports are generated from input data, other reports or both (see Figure 21.1).

They can consist of text, tables, graphs, pictures or any other media for conveying information.

21.2 WHAT MAKES A GOOD REPORT?

A good report is precise, concise, timely and relevant to its readership. It gives the appropriate level of detail and it communicates the information in a clear manner. Problems, errors and exceptions are clearly marked, as are differences from the norm. We shall now discuss factors influencing how a report should be planned and produced.

21.3 REPORTING REQUIREMENTS

21.3.1 Readership

The content and presentation ...