Deal ticket

A deal ticket is a document or record that contains the details of a financial transaction. It serves as a confirmation and documentation of the transaction, providing important information for both the parties involved and for regulatory purposes.

A deal ticket typically includes the following information:

1. Parties Involved: The deal ticket includes the names or identifiers of the buyer and seller or the financial institutions involved in the transaction. This helps in identifying the counterparties and their roles in the trade.

2. Transaction Details: It includes the date and time of the transaction, as well as the exchange or market where the trade took place. This information is crucial for tracking and auditing purposes.

3. Instrument and Quantity: The deal ticket specifies the financial instrument or security being traded, such as stocks, bonds, commodities, or derivatives. It also includes the quantity or volume of the instrument involved in the transaction.

4. Price: The deal ticket records the price at which the transaction was executed. This may include the unit price or the total value of the trade. It provides transparency and accountability for the agreed-upon price.

5. Settlement Date: The deal ticket includes the settlement date, which is the date on which the financial obligations of the transaction are fulfilled. It determines when the buyer pays for the securities and the seller delivers them.

6. Fees and Charges: Any commissions, fees, or charges associated with the transaction are documented in the deal ticket. This can include brokerage fees, exchange fees, or any other costs incurred during the trade.

7. Trade Reference Number: Each deal ticket is assigned a unique trade reference number, which helps in tracking and referencing the transaction in the future. It simplifies the process of record-keeping and retrieval.

Deal tickets can be generated in both electronic and paper formats. In electronic trading systems, deal tickets are automatically generated and stored within the trading platform. In manual trading or over-the-counter transactions, deal tickets are typically filled out by hand and distributed to the relevant parties.

Deal tickets play a crucial role in the financial industry by ensuring accurate recording and documentation of transactions. They serve as evidence of the agreed-upon terms and conditions and provide a reference for future analysis or audits. Deal tickets also help financial institutions meet regulatory requirements and facilitate risk management, reporting, and compliance processes.