Which report is needed for off-order-book trades?

Which report is needed for off-order-book trades?

• A. Transaction Report
• B. Trade Report
• C. Both reports
• D. No report is needed

Answer: (B)

Off-order-book trades are executions that happen outside the visible order book, so the actual deal must be captured as a trade to show what was agreed and completed. The trade report records the execution details—instrument, price, quantity, time, and counterparties—providing a clear, post-trade record for regulators and counterparties. A transaction report typically relates to the lifecycle of orders and may not reflect the final terms of the trade, which is why it isn’t the correct mechanism for off-order-book executions. So, the trade report best documents off-order-book trades.

Off-order-book trades are executions that happen outside the visible order book, so the actual deal must be captured as a trade to show what was agreed and completed. The trade report records the execution details—instrument, price, quantity, time, and counterparties—providing a clear, post-trade record for regulators and counterparties. A transaction report typically relates to the lifecycle of orders and may not reflect the final terms of the trade, which is why it isn’t the correct mechanism for off-order-book executions. So, the trade report best documents off-order-book trades.