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This is a fictional example and not real documentation. The purpose is to demonstrate my technical writing.

← why traditional post-trade processes are a bottleneck | post-trade automation (explanation)

What is Post-Trade Automation?

Figure: A side-by-side comparison of traditional vs tokenised post-trade processes. Tokenisation and automation reduce delays, eliminate reconciliation overhead, and provide real-time visibility via programmable APIs.

Post-trade automation uses software, APIs, and distributed ledger technology (DLT) to digitise and streamline post-trade steps.

Instead of relying on legacy infrastructure, automation allows:

  • Real-time asset transfer and ownership updates
  • Pre-programmed workflows for settlement and maturity
  • Instant reconciliation via shared ledgers
  • Fully traceable actions via audit-ready APIs

In this model, APIs become the new rails, handling trade confirmations, settlements, redemptions, and reconciliations digitally, with minimal manual input.

Below is a comparison between traditional post-trade activities and automated post-trade activities:

Step Traditional Post-Trade Automated Post-Trade
1. Trade Agreement Trade agreed via platforms (e.g., Bloomberg), confirmed via messaging. Trade terms encoded in a smart contract and executed via digital signature.
2. Trade Matching Matching engines (e.g., MarkitWire) verify both sides' inputs. No matching required. Shared contract logic ensures alignment.
3. Clearing Central Counterparty (CCP) manages risk and becomes the trade counterparty. Smart contracts can enforce margin and settlement logic, even without a CCP.
4. Collateral Mgmt Managed through messages and manual instructions. Automated margin escrow and margin calls handled by smart contract logic.
5. Settlement Delayed and routed through custodians and clearing banks. Instant atomic settlement triggered by smart contract on maturity/event.
6. Reconciliation Involves reconciling multiple internal records; prone to mismatch. Single source of truth on-chain; no reconciliation needed.
7. Reporting Regulatory reports compiled and submitted from internal systems. On-chain data enables real-time, immutable regulatory reporting.
8. Lifecycle Mgmt Events like resets or coupon payments require manual monitoring. Smart contracts manage all lifecycle events automatically.

What comes next?

  • Token Lifecycle: Learn how tokens are minted, transferred, queried, and burned throughout their lifecycle.
  • How-To Guides: Step-by-step examples with code snippets for each major token operation.
  • API Reference Guide: Detailed overview of endpoints, request payloads, and response formats.
  • Glossary of Key Concepts: Definitions and explanations of common terminology used throughout the docs.