Overview

The Investment & Trading Products WG restarted its activities in October 2019. It has started a scoping discussion, which needs to clarify:

  • Coverage end to end – opportunity identification (market tracking – trading requirement defined), pricing/decisioning, execution/capture/reporting, oversight, clearing & settlement
  • Instruments – how to partition (FX/MM, Equities, Commodities, FI (Gov/Corp), Options/Futures/SWAPs???) – this will result in discrete trading fulfillment SDs
  • Buy-side/Sell-side – how to visualize the main institutional roles and relate this to overall wireframe? Proposed initial focus is on secondary market trading
  • Out of scope – IPO/Primary market activity at this time (may best be Corporate Banking?)

Service Domains

Managed Service Domains include:

  • Market Feed Administration
  • Market Feed Operation
  • Market Information Management
  • Market Data Dissemination Administration
  • Financial Instrument Maintenance
  • Counterparty Administration
  • Consumer Investments
  • eTrading
  • Trading Book Oversight
  • Dealer Workbench
  • Market Making
  • Assisted Trading
  • Program Trading
  • Market Trading
  • Order Management
  • Market Fund Administration
  • Hedge Fund Administration
  • Unit Trust Administration
  • Stock Lending/Repos

Deliverables

Tentatively the following Business Scenarios will be elaborated:

  • An exchange traded securities trade (reporting and matching is handled by the exchange)
  • A customer order initiated trade (no market analysis or deal pricing, just a brokered execution)
  • The market order is fulfilled with a single market trade
  • Clearing & Settlement are handled internally (many banks use a clearing service)
  • Custody administration for title transfers beyond the bank are not considered
  • Payments and confirmation use S.W.I.F.T. messaging
  • No guideline and regulatory compliance actions are cinsidered other than initial deal reporting
  • A central position management service handles complex composite positions
  • Financial Instrument Accounting handles all product booking functions – no separate posting for assets & liabilities is considered
  • The Dealer Workbench maintains the dealer intraday P&L/deal blotter
  • Monitored Service Domains include all Service Domains of which services are used in Business Scenarios.

 

Interested in this Working Group? Please contact us on info@bian.org