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Economic vs legal confirmation
OTC Documentation & Confirmation
Learning Outcome
5
Differentiate economic and legal confirmations.
4
Recognize their role in accurate settlement.
3
Understand how confirmations reduce risks.
2
Identify key confirmation details.
1
Explain the purpose of confirmations.
Analogy
Buying a house involves two important documents.
One document lists the agreed details—
such as the price, property, and payment terms.
Analogy
The other is the legal sale deed, which officially transfers ownership and makes the agreement enforceable.
Similarly, an Economic Confirmation records the trade details, while a Legal Confirmation establishes the legal contract between the counterparties.
Transition to concept
Just as buying a house requires both an agreement on the purchase details and a legally binding contract, OTC derivative trades also rely on two complementary confirmations—Economic Confirmation and Legal Confirmation—to ensure the transaction is both accurate and legally enforceable.
Difference between economic and legal confirmations
Difference between economic and legal confirmations
Example of an Economic Confirmation
Transition from Analogy to Technical Concept(Slide 5)
Core Concepts (Slide 6)
Core Concepts (Slide 7)
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Fund Portfolio Reconciliation &NAV Validation - Economic vs legal confirmation
By Content ITV
