Institutional OTC Architecture

Advanced Trade Flow Documentation

Deep-dive workflows mapped to actual prime brokerage and OTC desk operations. Covering multi-dealer RFQs, pre-trade NOP risk checks, Time-To-Live (TTL) quoting, Travel Rule compliance, and atomic tri-party settlement exceptions.

0
Core Flows
0
Actor Roles
0
Pre-Trade Validated
Institutional Actors

Target Personas

Workflows isolate duties strictly between liquidity takers, market makers, compliance officers, and operations/settlement managers.

The Journeys

Institutional Workflows

Click the tabs to explore end-to-end operational flows. Expand steps for specific UI parameters, system states, and edge-case behaviors.

System Architecture

Institutional Operating Rules

Core platform logic dictating liquidity provision, risk management, and compliance enforcement.

Multi-Dealer RFQ Mechanics

  • TTL Quoting: Market Maker firm prices must enforce strict Time-To-Live parameters (e.g., 10-15s) to mitigate latency arbitrage.
  • Blind Broadcasts: Takers can request blind RFQs to hide identity pre-trade, protecting them against market makers front-running large blocks.
  • BBO Aggregation: Taker dashboard dynamically sorts inbound Maker streams to surface the Best Bid/Offer (BBO) including all embedded fees.

Pre-Trade Risk & Compliance

  • NOP Limits: Hard blocks on execution if Net Open Position (NOP) or Daily Settlement Limits exceed authorized thresholds.
  • VASP Travel Rule: Originator/Beneficiary VASP data is exchanged (TRP/Sygna) prior to custody lock to comply with FATF guidelines.
  • KYT Quarantine: Trades involving unverified wallets or sanctioned exposure are halted mid-flow, routing to Compliance queues.

Tri-Party Settlement Ops

  • Escrow & Locking: API integrations with Fireblocks/Copper to enforce pre-trade collateral locks (Atomic DvP) where counterparty risk is non-zero.
  • SSI Validation: Standard Settlement Instructions (SSIs) are cryptographically matched before funds are moved.
  • Sub-Account Allocation: Allows fund managers to execute a block trade and automatically allocate fractions to underlying LPs post-trade.

Exception & Dispute Handling

  • SLA Timers: Trades not settled within the T+0/T+1 SLA trigger automatic escalation to Operations teams.
  • Dispute Rooms: Settlement failures instantly generate an immutable dispute room attaching the original chat logs, TRP payload, and custody API responses.
  • Trade Breaks: Compliance/Ops retain "God Mode" (with multi-sig) to break or bust a trade in the event of egregious error or fraud.
"The goal of an institutional OTC platform is not just to match buyers and sellers. It is to eliminate pre-trade settlement risk, enforce zero-trust compliance checks without adding latency, and provide irrefutable post-trade auditability."