Pre-matched trades
- The buyer submits a buy order to the broker;
- The broker routes the order in the OTC Facility to the OTC Facility Operator;
- The OTC Facility Operator submits the order to potential counterparties;
- One or several dealers submit(s) a price in the OTC Facility to the OTC Facility Operator; and after obtaining approval of the price by the broker, the OTC Facility Operator executes the order and generates a trade;
- The OTC Facility Operator sends a notice of execution to the trade counterparties;
- The broker sends the notice of execution to the buyer;
- Based on crypto SSI provided by the parties involved, the OTC Facility Operator generates a settlement instruction and sends it to the Registrar;
- Once it receives the settlement instruction, the Registrar initiates the settlement transaction processing.
Other trades
- The buyer submits a buy order to the broker;
- The broker routes the order in the OTC Facility to the OTC Facility Operator;
- The OTC Facility Operator submits the order to potential counterparties;
- One or several dealers submit(s) a price in the OTC Facility to the OTC Facility Operator; and after obtaining approval of the price by the broker, the OTC Facility Operator executes the order and generates a trade;
- The OTC Facility Operator sends a notice of execution to the trade counterparties;
- The broker sends the notice of execution to the buyer;
- The settlement instructions are sent to the Registrar;
- The Registrar matches the settlement instructions;
- Once it matches the settlement instructions, the Registrar initiates the settlement transaction processing.
In this model, the settlement instructions are generated by the trade counterparties (after transaction processing within their current systems) and sent to the Registrar.
The Registrar matches the settlement instructions before initiating settlement transaction processing.