Читать книгу Effective Product Control - Nash Peter - Страница 23

Operations are primarily responsible for confirming and settling transactions the business undertakes. Specifically, operations will carry out the following tasks illustrated in Figure 3.2.

Figure 3.2 The role of operations

Through these activities, operations are ensuring that the following activities occur:

• Executed trades are captured in the bank's systems

• Trades within the bank's systems are legally agreed with counterparties (confirmations)

• Cash flows and securities exchanges between counterparties are settled (cleared)

• Trades which fail to settle are identified and managed

• Trade life cycle events are executed correctly, for example corporate actions (e.g., share splits, dividends) and trade fixings (e.g., LIBOR, HSRA).

s operations are a cornerstone of the control framework, product control rely quite heavily on them for information regarding:

• Cash and security settlement issues, including outright and timing breaks that affect the nostro and security accounts

• Outstanding trade confirmations

• Failed trades (where settlement has not occurred)

• Trade event reports, for example, the trades involved in a tri-party compression exercise

• Fees and charges incurred, for example, brokerage and exchange fees.

By having this information, product control can report the desk's P&L and balance sheet more accurately.