Used to refer to how an investor distributes his or her investments among various classes of investment vehicles (e.g. stocks or bonds)

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Rebalance and Order Initiation Roles: Portfolio Manager	Steps: STP Workflow for a Buy

Rebalancing is the action of bringing a portfolio of investments that has deviated away from ones target asset allocation

back into line.

Order Initiation usually follows hand in hand with a rebalancing. It describes the commitment of an order to the market

for execution.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Compliance Roles: Portfolio Manager	Next: Asset Allocation Steps: STP Workflow for a Buy

Ensuring that all rules , regulations etc are met such that the Order Initiation can proceed.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Order Routing Roles: Portfolio Manager	Next: Rebalance and Order Initiation Steps: STP Workflow for a Buy

Routing the order on to the Sell Side for execution, depending on best prices, research, relationships, etc.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Order Fill Relation: Sell Side Roles: Dealer	Next: Compliance Steps: STP Workflow for a Buy

Confirmation by the Sell Side that part, or all, of the requested order has been executed/filled.

Partial Fill - Part of the Order is filled.

Fully Filled - All of the Order is filled.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Executed Order Relation: Sell Side Roles: Sell Side	Next: Order Routing Steps: STP Workflow for a Buy

Buy Side in full possession of the filled order.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Transaction Roles: Dealer	Next: Order Fill Steps: STP Workflow for a Buy

Conventionally the executed order flows from a Front Office System to a Back Office System (which may be one and the

same). Here, often its 'form' changes from an Order to a Transaction. A Transaction being an executed order.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Allocation Roles: Back Office	Next: Executed Order Steps: STP Workflow for a Buy

Means by which a trade is divided or 'portioned' to a particular fund/portfolio/account.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Confirmation Match Roles: Back Office	Next: Transaction Steps: STP Workflow for a Buy

Middle/Back Office Function of the Sell Side whereby they send - usually by electronic means - a record (confirmation)

of their understanding of the trade previously done, to the Buy Side.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Match Roles: Sell Side	Next: Allocation Steps: STP Workflow for a Buy

Process whereby the Buy Side compares their record of the trade (allocations) against the confirmations as sent in by the broker.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Next: Instruction Roles: Back Office	Next: Allocation Confirmation Steps: STP Workflow for a Buy

Message to the Custodian indicating that in 3 days time (for a UK Equity) a given amount of stock will be received against a a Cash payment for that stock.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Outputs: Delivery of Cash Relation: Custodian Roles: Back Office	Next: Match Steps: STP Workflow for a Buy

Process of matching and comparing figures from accounting records against those presented on a bank statement.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Inputs: Bank Statements Outputs: Delivery of Cash Roles: Back Office	Steps: STP Workflow for a Buy

The custodian can provide some indication that an instruction to settle message has been received, and will confirm

receipt of the message some kind of Instruction Confirmation.

Properties and outgoing relations	Incoming relations
Element properties and relations with other elements	Other elements that have a relation with this element
Outputs: Delivery of Stock Roles: Custodian	Steps: STP Workflow for a Buy