Skip to main content

​
Overview

The Trade Execution feature enables LMA (Loan Market Association) trade confirmation and settlement with CDM-compliant event generation, policy enforcement, and x402 payment integration. Code Reference: client/src/apps/trade-blotter/TradeBlotter.tsx, app/api/routes.py (trade endpoints), app/models/cdm_events.py

​
Key Features

​
LMA Trade Tickets

  • Pre-filled Tickets: Automatic pre-filling from FDC3 loan context
  • Trade Details: Trade price, amount, settlement date
  • Party Information: Borrower and lender details
  • Facility Mapping: Map to specific loan facilities
Code Reference: client/src/apps/trade-blotter/TradeBlotter.tsx

​
Policy Evaluation

  • Pre-Trade Check: Policy evaluation before trade execution
  • Decision Types: ALLOW, BLOCK, or FLAG decisions
  • Rule Tracking: Track which policy rules were applied
  • Evaluation Trace: Complete evaluation trace for audit
Code Reference: app/services/policy_service.py (evaluate_trade_execution)

​
Settlement

  • Settlement Date: Calculate settlement date (T+5 business days)
  • x402 Payment: Optional x402 payment for settlement
  • CDM Events: Generate TradeExecution CDM events
  • Status Tracking: Track trade status (pending, confirmed, settled)
Code Reference: app/api/routes.py (execute_trade, settle_trade endpoints)

​
Workflow

​
1. Receive Loan Context

  1. FDC3 Broadcast: Receive loan context from Document Parser
  2. Auto-Populate: Trade Blotter auto-populates with loan data
  3. Review Data: Review borrower, facilities, and amounts
  4. Select Facility: Choose facility for trade

​
2. Configure Trade

  1. Set Trade Price: Enter trade price (par, premium, discount)
  2. Set Trade Amount: Enter trade amount
  3. Calculate Settlement: System calculates settlement date
  4. Review Details: Review all trade details

​
3. Execute Trade

  1. Policy Check: System evaluates policy rules
  2. Decision Review: Review policy decision (ALLOW/BLOCK/FLAG)
  3. Execute: Execute trade if allowed
  4. CDM Event: Generate TradeExecution CDM event
  5. Settlement: Process settlement (with optional x402 payment)

​
API Endpoints

​
Execute Trade

Execute a trade with policy evaluation. Request Body: 
{
  "credit_agreement_id": 123,
  "facility_id": "FACILITY_001",
  "trade_price": 100.0,
  "trade_amount": 1000000.00,
  "settlement_date": "2026-01-20",
  "buyer": {...},
  "seller": {...}
}
Response: Trade execution result with CDM events Code Reference: app/api/routes.py (execute_trade endpoint)

​
Settle Trade

Settle a trade with optional x402 payment. Request Body (Optional): 
{
  "payment_payload": {
    "from": "0x...",
    "to": "0x...",
    "amount": "1000.00",
    "currency": "USD",
    "network": "base",
    "token": "0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913"
  }
}
Response: Settlement confirmation or 402 Payment Required Code Reference: app/api/routes.py (settle_trade endpoint)

​
FDC3 Integration

Trade Blotter listens for FDC3 loan context: 
// Receives context from Document Parser
const context = useFDC3();
if (context?.loan) {
  // Auto-populate trade ticket
  setLoanData(context.loan);
}
Code Reference: client/src/apps/trade-blotter/TradeBlotter.tsx (FDC3 context handling)

​
CDM Event Generation

All trade executions generate CDM-compliant events: 
{
  "eventType": "TradeExecution",
  "eventDate": "2026-01-15T10:00:00Z",
  "trade": {
    "tradeId": "TRADE_001",
    "executionDate": {"date": "2026-01-15"},
    "settlementDate": {"date": "2026-01-20"},
    "price": 100.0,
    "quantity": 1000000.00,
    "buyer": {...},
    "seller": {...}
  }
}
Code Reference: app/models/cdm_events.py (generate_cdm_trade_execution)

​
Policy Evaluation

Trade execution includes policy evaluation:
  • Sanctions Screening: Check buyer/seller against sanctions lists
  • Credit Risk: Evaluate credit risk limits
  • Regulatory Compliance: Check regulatory requirements
  • ESG Compliance: Verify ESG requirements
Decision Handling:
  • BLOCK: Trade is blocked, cannot proceed
  • FLAG: Trade is flagged for review
  • ALLOW: Trade proceeds normally
Code Reference: app/services/policy_service.py (evaluate_trade_execution)

​
User Interface

​
Trade Blotter

Location: client/src/apps/trade-blotter/TradeBlotter.tsx Features:
  • FDC3 Integration: Auto-receives loan context
  • Trade Configuration: Configure trade details
  • Policy Display: Show policy evaluation results
  • Payment Integration: x402 payment processing
  • Status Tracking: Track trade status
Access: Navigate to “Trade Blotter” in sidebar

​
Best Practices

  1. Verify Data: Verify loan data before executing trade
  2. Policy Review: Review policy evaluation results
  3. Settlement Planning: Plan settlement date appropriately
  4. Payment Processing: Process payments for settlement
  5. CDM Compliance: Ensure all trades generate CDM events

​
Additional Resources

Last Updated: 2026-01-14
Code Reference: client/src/apps/trade-blotter/TradeBlotter.tsx, app/api/routes.py, app/models/cdm_events.py