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Trade Lifecycle
Confirmation
Learning Outcome
5
Reduce settlement risk and trade disputes.
4
Understand confirmation before settlement.
3
Identify key trade details verified.
2
Differentiate booking from confirmation.
1
Define confirmation and its role.
What is Confirmation?
Two-sided check: Unlike booking, which is an internal step, confirmation involves both parties to the trade agreeing with each other.
Confirmation: The process of verifying and agreeing on trade details between the two counterparties, before the trade proceeds to settlement.
What Details Are Verified
Why Confirmation Matters
Prevents mismatches:
Catching errors at this stage avoids failed or delayed settlements later.
Legal and audit record: A confirmed trade serves as documented proof that both parties agreed to the same terms.
Why Confirmation Matters
Builds trust:
Confirmation reduces disputes between counterparties by ensuring both sides are aligned before money moves.
Summary
5
Confirmation supports smooth, dispute-free settlement.
4
Discrepancies are resolved before settlement.
3
Key trade details are verified.
2
It occurs between booking and settlement.
1
Confirmation verifies and agrees trade details.
Quiz
Which of the following details is typically verified during confirmation?
A. Security and quantity
B. Price and trade value
C. Settlement date
D. All of the above
Quiz-Answer
Which of the following details is typically verified during confirmation?
A. Security and quantity
B. Price and trade value
C. Settlement date
D. All of the above
Trade Lifecycle & Reconciliation Operations - Confirmation
By Content ITV
