Counterparties, accounts and instruments

The desk manager keeps the reference records every instruction and order depends on. Organizations are the legal entities that run the desk, each with its code, time zone and currency. Counterparties are the brokers and providers an organization may instruct, with a code, a contact, an address, an eligibility note and an active flag. An instruction to an inactive counterparty, or one belonging to another organization, is refused.

Trading accounts are the custodied accounts orders are placed in, with the account code, the owner reference, the custodian and the custodian’s external account ID. Instruments are what can be traded: symbol, name, asset class, quantity unit, quote currency and venue. Desk staff are team members linked to a user account, with a role name, time zone and organization, so every instruction, decision and file shows who acted.

These records change rarely but matter most. A counterparty made inactive stops new instructions at once, and an inactive account stops new orders.

The desk manager owns reference data; traders and analysts read it.

• Eligibility on the counterparty. The eligibility note says what the counterparty is cleared for.
• Accounts with their custodian. Every account carries the custodian’s own ID.
• Staff linked to users. Each team member works through their own user account.

Agree your list of organizations and which counterparties each may use. Agree the instrument list, asset classes and venues, and how new instruments are requested. Map custodian account IDs before the first order. Decide who may make a counterparty or account inactive and how that is recorded. Prepare examples of a new counterparty, an account closed at the custodian and a new instrument added for a client.

Compliance withdraws approval for a broker after a review. The desk manager marks the counterparty inactive and updates its eligibility note. A trader preparing an instruction to that broker later that day is refused, and two instructions already in review are returned by the reviewer for a new counterparty. Submitted instructions with that broker stay open at the provider until their evidence arrives.

• Counterparties active — Eligible counterparties with contact and eligibility note.
• Active trading accounts — Accounts with custodian and external account ID.

• Instruction preparation and review: Where counterparty eligibility is checked.

Plan the migration order for reference data.