Input and completion
The first core function for the back office is to extract the details of the deal through the input system and confirm the same after verifying the deal input details with the external evidence i.e. Reuters’ conversation, broker notes. Deals input through front-end data capture or agreed on one of the proprietary trading systems will have already been subjected to numerous system checks to ensure that the transaction is technically correct. Some deals will require settlement instructions to be added, but for straight forward foreign exchange and derivative deals done with other banks and large corporates, standard settlement instructions (SSIs) may have already been added as per the agreement. This could also be true for derivatives transactions in the larger treasuries. However, these types of transactions generally need more checking and manual intervention because of the wide variety of their use. At this stage the bank normally releases its own confirmation to the counter party, particularly over the counter (‘OTC’).