Trade Enrichment

 

Trade Enrichment

Trade enrichment is the process of applying relevant information to the trade that is necessary to settle the trade correctly.

It has following elements:

• Trade figuration, that is, calculating trade cash values
• Trade comparison requirements and validation for counterparties; for example, some trades may not require confirmations to be sent if other trade agreement methods are in place. Trade confirmations to clients carry full details of the trade including fees, commission, and net money. The counterparty's information is not included on the client's confirmation
• The selection of the relevant custodian details
• The transmission of settlement instructions, for example, by SWIFT or fax
• The reporting of trades to stock market regulators

In an automated environment, trade enrichment can be primarily achieved from the static data repository (this is referred to as static data defaulting). If any static data items are missing, the trade is treated as an exception with processing halted until the necessary information is added to the static data repository