A post-trade process where trade details agreed upon by counterparties are compared and reconciled, and upon successful validation, an instruction for settlement is generated and sent to a settlement agent or blockchain network. In crypto, this refers to the critical step of confirming off-chain trade terms before initiating an on-chain transfer or smart contract execution.
Mechanism
The Match to Instruct process typically involves an independent matching utility or a distributed ledger where trade confirmations from both the buyer and seller are submitted. The system compares key attributes such as asset type, quantity, price, and settlement date. If all details align, a ‘match’ is declared, and the system automatically generates or releases the settlement instruction. Any discrepancies trigger an exception workflow, requiring manual intervention to resolve the mismatch before settlement can proceed.
Methodology
The strategic objective of Match to Instruct is to minimize settlement failures and reduce operational risk by ensuring that all parties agree on the precise terms of a transaction prior to asset transfer. This methodology significantly improves trade processing efficiency and data integrity, particularly for institutional crypto trading where large volumes and complex derivatives are involved. By automating the reconciliation and instruction generation, it supports timely and secure settlement, which is essential for maintaining trust and stability in financial markets.
Same-day affirmation directly reduces operational risk capital charges by systematically eliminating the root causes of settlement failures, thus lowering an institution's quantifiable loss profile.
Same-day affirmation requires an integrated technology stack that automates the trade lifecycle through centralized matching and standardized protocols.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
