Which component deletes OTI orders after close of trading?

Which component deletes OTI orders after close of trading?

• A. Clearing house
• B. Post-trade processor
• C. Risk management system
• D. On-Book Matcher

Answer: (D)

The on-book matching engine is responsible for the active order book and its maintenance, including removing orders that are no longer needed at the end of the trading session. OTI orders are part of the orders that exist within the on-book state for matching, so when trading closes, these unfilled OTI orders are deleted by the On-Book Matcher to reset the book for the next session. The clearing house handles settlement after trades, the post-trade processor takes care of trade confirmations and clearing paperwork, and the risk management system monitors risk rather than managing or deleting orders.

The on-book matching engine is responsible for the active order book and its maintenance, including removing orders that are no longer needed at the end of the trading session. OTI orders are part of the orders that exist within the on-book state for matching, so when trading closes, these unfilled OTI orders are deleted by the On-Book Matcher to reset the book for the next session. The clearing house handles settlement after trades, the post-trade processor takes care of trade confirmations and clearing paperwork, and the risk management system monitors risk rather than managing or deleting orders.