OTC Customer Model

The Customer Model identifies the actors in the OTC Trade Reporting business process.

Roles Definitions

The main actors are Clearing Members, Executing Trading Firms, Broker Firms and Asset Manager Firms.

Entity	Role Description

Entity	Role Description
Clearing Member	An Exchange Clearing Member sets up Trading Accounts for Trading Firms and manages the account risk.
Executing Trading Firm	An Executing Trading Firm is the beneficial owner of one or more Trading Accounts held with a Clearing Member. Trading Firm 1 is the owner of Trading Accounts 1, 2 and 3. An Executing Trading Firm can have a relationship with one or more Clearing Members. Notice Trading Firm 1 has a relationship with both Clearing Members A and B.
Broker Firm	A Broker Firm can enter Deals under the two-sided Broker model (also called dual-sided submission) and the single-sided model (called single-sided submission). A Broker Firm is selected as a Broker with respect to a Trading Account by the Clearing Member. In the figure, the Broker Firm is associated with Trading Account 2. Most clients (Trading Firms) who use Brokers rely on a variety of Broker Firms and permissions on a given account can be granted to multiple Broker Firms.
Asset Manager Firm	An Asset Manager Firm acts on behalf of the Trading Firm and has full control over some or all accounts of that Trading Firm. The Clearing Member specifies which Trading Accounts the Asset Manager Firm has the authority to act. An Asset Manager Firm can enter single-sided Deals only for those Trading Accounts. An account can only have one Account Manager (if at all) specifed to act on its behalf. When an Asset Manager is named on an account, it is assumed to be involved in every trade for that account.

Roles and Relationships

The following figure illustrates the interactions of OTC actors in trade execution.