1. Trading
Capital markets have since evolved to provide companies with various means of raising capital and providing an alternative to bank lending.
1.1. Trading and investing
Trading refers to implementing short-term speculative strategies.
Investing refers to applying longer-term strategies that usually rely upon long-term positive returns from specific markets.
1.2. Captital market participants
Capital market customers (such as retail customers and institutional customers)
Brokers
Liquidity providers
Other market participants (such as clearing houses and regulators)
1.3. Market structures
Quote driven markets
Order driven markets
Hybrid structures
1.4. Exchange processes and data
Order messages
Order book
Matching process
Surveillance
1.6. Primary market and secondary market
Primary markets focus on the sale of newly issued securities.
Secondary markets allow investors to trade securities they already own with other investors and securities dealers.
1.7. IT solutions
Cost saving
Scalable and flexible bandwidth management
Improved reliability and stability
Better network management
1.8. Clearing and settlement
Clearing refers to the process of communicating and reconciling security transfer and payment instruction prior to settlement.
Settlement refers the actual process of transferring funds and securities to fulfill trade execution obligations.
1.9. Exchange technology
Business considerations (accuracy, capacity, scalability and risk management)
Architecture considerations (e.g., commodity hardware, low latency, the speed of exchange, measuring and tuning performance)