Back office refers to the administrative and support functions of a financial institution that are responsible for trade settlement and clearing. Some tasks the back office carries out include confirming trades, reconciling accounts, processing payments, and reporting to regulators. It is an essential part of the infrastructure that supports the functioning of financial markets, and inefficient back office operations can lead to institutional disruptions and losses for traders and investors.
After a trade is executed, the back office team verifies the details of the transaction to ensure that the trade has been accurately recorded. They then arrange the transfer of ownership from the seller to the buyer. They are also responsible for ensuring the payment for the shares
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