Trade Life Cycle
Reference
Account Management
Account management is a function to manage client information and controls the accessibility and roles of user
accounts.
Batch Process
Financial institutions have to perform Start of Day (SOD) process before it can carry out transactions
for a specific date. Similarly, the End of Day (EOD) job must be run to process the transaction created
during the day. When the scheduled EOD job completes, the system is advanced to the next date automatically.
Curve Bootstrap
The term structure of interest rates, also known as yield curve, is defined as the relationship between
the yield-to-maturity on a zero coupon bond and the bond's maturity. Zero yield curves play an essential role
in the valuation of all financial products. The current methodology in capital markets for marking to market
securities and derivatives is to estimate and discount future cash flows using rates derived from the
appropriate term structure. The yield term structure is increasingly used as the foundation for deriving
relative term structures and as a benchmark for pricing and hedging.
Installation Guide
Back Office
A back office is the portion of a company made up of administration and support personnel who are
behind-the-scenes and not client-facing, while front office staffs are the folks in contact with the
consumers or clients. Back office functions include settlements, clearances, record maintenance, regulatory
compliance, accounting, and IT services.
Back Office Process
The back office is the supporting department of a company that carries out administrative functions
that assist the front office to facilitate the course of work and the business transactions. Back office
functions include settlements, clearances, record maintenance, regulatory compliance, accounting, and IT
services.
Market Data
Trading venues provide reports on various assets and financial instruments, which are then distributed
to traders and firms. Market data is available across thousands of global markets, including stocks, indices,
fixed-income, interest rates, derivatives, forex and commodities. The aim of using market data is to get as
much information about the asset you are planning to trade, in order to calculate risk and the impact of
live news releases.
Trade Life Cycle
A trade, also called a deal, is an exchange of financial products from one entity to another. The life cycle
of a trade is the fundamental activity of exchanges, investment banks, hedge funds, pension funds and many other
financial companies.
Trade Life Steps
All the steps involved in a trade, from the point of pre-negotiations and trade execution through to
settlement of the trade, are commonly referred to as the trade life cycle. Trade life cycle consists of
a series of logical stages and steps. This presentation gives an overview of trade life cycle process.
Trade Life Stages
Trade life cycle has different stages, by which a trade flows through. These detail steps are from the
point of order, receipt, execution through to settlement of the trade in a systematic manner. In other words,
it is regarded as a series of logical steps which are represented in such a manner where the trade is allowed
to go through keeping track of its related objective and importance. This presentation gives an overview
of trade life cycle process.
Expiration Price Option
The model allows users to calculate daily amortization amount using total number of amortization dates and amortization of the initial premium based on the specified amortization history.
Equity for Float Swap
An equity-for-float swap is an agreement between two counterparties to exchange the dividends and capital gains realized on an equity portfolio for a floating rate of interest. When the reset dates for the equity leg and for the floating leg are different, a new dividend payment option is now available, where the user can specify that dividends be paid according to the floating payment dates.
Binary Return Note
The structure of a Binary Return Note is similar to the one of a regular note, but the coupons are contingent on return rates on stocks. Quasi-Monte Carlo simulation is used for pricing the product.
Reverse Convertible
The payoff of reverse convertible product involves returns on multiple assets and is conditional on hitting of continuous barriers. The Monte Carlo methodology employed by ESP is an efficient conditioning technique.
401K Stable Value Protection
A fund model is presented for several contract subtypes involving stable value protection on 401K tax-sheltered investment plans. The model does not perform pricing, but rather makes an estimate of expected losses. The estimation of fees received in compensation for extending the value protection is not treated in the model, although the loss estimation appears to be consistent with the detailed structure of these contracts.
Stable Value Wrap Model
The Insurance and Pension Solutions Group (IPS) stable value fund wrap model is presented. The modeling approach is to be used for several two basic contract types involving stable value protection on Bank Owned Life Insurance funds (BOLI), and Company Owned Life Insurance funds (COLI). These products are fundamentally the same but differ with respect to tax treatment and/or the specific details regarding the redemption of the funds or portions thereof.
CARC Volatility
A pricing model for capped-accumulated-return-call (CARC) with volatility surface is presented. Proprietary approaches to interpreting volatility surface are employed during pricing. To accelerate the convergence when low discrepancy sequences are used in Monte Carlo simulation (Quasi-Monte Carlo simulation), the Brownian Bridge Path Construction has been employed in some CARC transactions.
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