Post-Trade Processing

 

What is 'Post-Trade Processing'

Post-trade processing, after a trade is complete, goes through post-trade processing, where the buyer and the seller compare trade details, approve the transaction, change records of ownership and arrange for the transfer of securities and cash. Post-Trade processing is especially important in markets that are not standardized such as the over-the-counter (OTC) market.Next Up

1. CLEARSTREAM INTERNATIONAL
2. SETTLEMENT AGENT
3. TRANSFER PROCEDURES
4. CLEARING PRICE

BREAKING DOWN 'Post-Trade Processing'

Post-trade processing is important in that it verifies the details of a transactions. Markets and prices move fast so at the time transactions must be executed quickly. Since many securities trades are done over the phone from party to party the ability for mistakes and human error exists. Post-trade processing allows the buyer and seller of securities to verify trade details or sort out any mistakes.RELATED TERMS

1. Clearstream International
   A leading supplier of post-trading services based in Europe, ...
2. Settlement Agent
   1. The party involved in completing a transaction between a buyer ...
3. Transfer Procedures
   The procedure by which ownership of a stock moves from one party ...
4. Clearing Price
   The specified monetary value assigned to a security or asset. ...
5. Canadian Depository For Securities ...
   Canada's national securities depository, clearing and settlement ...
6. Bill Of Sale
   A document that details in writing a sale of goods or transfer ...

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RELATED FAQS

1. How do I buy an over-the-counter stock?
   The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and ... Read Answer >>
2. How does a company move from an OTC market to a major exchange?
   The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ... Read Answer >>
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