Stage five of the trade lifecycle: Ongoing position and risk management The successful settlement of a trade is not the end of the story. There are numerous trade-related events and market changes that can impact a trade while it is live and result in changes to the trade position or underlying asset. Because of

Stage III and IV of the trade lifecycle: Clearing & settlement After a trade is executed, there are a number of activities that must take place before the trade can be considered complete. The purpose of these activities is to clear and settle the trade, and they must take place regardless of whether the

Stage two of the trade lifecycle: Execution For centuries, trade execution markets were very distinct and relatively straightforward. Most trading took place at specific geographic locations where traders would stand in "pits" shouting out prices and waving trade tickets in the air in a seemingly chaotic fashion. Advances in technology mean that this type

Stage one of the trade lifecycle Pre-trade Before any client trading can be done, a number of different activities must take place in the pre-trade environment. A critical element is the client onboarding process, as this allows institutions to establish whether they should trade with a potential client. Client onboarding often involves specialist teams

Alternative assets 101: The basics Alternative assets, or alternative investments, are those that are not considered to be mainstream assets like equities, bonds, or cash. Classic examples of alternative assets include commodities and hedge funds. However, the alternative asset universe is fluid with new instruments constantly being developed. Alternative assets typically have a low

Rates turmoil strikes financial system The spike in interest rates over the past couple of years has transformed the banking landscape and placed immense pressure on individual institutions, leading to dramatic rescues in the US and Switzerland, and raising the dual spectres of systemic failure and a credit crunch. Since late 2021, the

Climate risk – Regulatory response gathers pace It is widely accepted that climate change and how we respond to it has significant consequences, both for the global economy and for society in general. While banks and other financial institutions are increasingly dealing with the effect of both physical and transition climate-related risks on all aspects

Green bonds explained and the different types of green asset Until recently, many financial market participants may have found climate-related financial risks to be largely abstract. However, it has become increasingly difficult for reasonable observers to deny that there is at least an element of climate change causality behind events such as the catastrophic

Biodiversity explained: What is its impact on the finance industry? In recent years, the focus of the environmental debate has been on climate change and the efforts to transition toward a net zero economy. However, biodiversity loss has been recognized as equally critical to the sustainability of the planet's ecosystem and to the companies