Principles of Post Trade Management_ Capacity, Scalability, and Agility and Risks involved

1. Principles of Post Trade Management: Capacity, Scalability, and Agility and Risks involved Post-trade management is a process that happens right after the trading process. The post-trade processing in capital market services is crucial when they are not standardized by the involved parties. The vendor and consumer have to compare the trade details and approve the transaction to manage the transactions and security details in the capital market services. The functions of post-trade management include clearing, settlement, and security. Once a trade is processed, it enters the settlement phase of post-trade management, and a clearing process is in post-trade processing. The clearing process is settling multiple buying and selling of diverse alternatives, contracts, or securities and transferring money from one financial institution to another. This procedure in capital market services ensures that the necessary funds are available in the case of any security issues. The buyer receives the security. Non-cleared transactions can lead to settlement risk and financial difficulties. This blog covers the principles of post-trade management and the capacity, scalability, agility, and risks associated with the capital market. The new challenges faced in the capital market post-trading management give us more capacity and scalability to handle the increasing demands for complex actions and the versatility to endure unexpected payment actions. The risks involved in post-trade management in capital markets services are: ● Credit Risk: Credit risk is a contractual partner will not pay the value of debt when it meets the due date. ● Liquidity risk refers to the possibility that a partner will not settle a debt for the value when it is due but instead at a later time. ● Operational Risk: Human error or a malfunction of the hardware, software, or communication system are examples of operational risk. ● Legal risk is the unexpected application of a law or regulation, the chance that possession will give rise to a legal claim. These are all examples of a legal risk. Post-trading management and the risks after the trading process are well maintained in Sensiple which centralizes the capital market sector by offering comprehensive support for capital market services with increased capacity, scalability, and intelligibility.