> ## Documentation Index
> Fetch the complete documentation index at: https://tonic-ai.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Trade Execution

> LMA trade confirmation and settlement with CDM compliance

## 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

<Endpoint method="POST" path="/api/trades/execute" />

Execute a trade with policy evaluation.

**Request Body**:

```json theme={null}
{
  "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

<Endpoint method="POST" path="/api/trades/{trade_id}/settle" />

Settle a trade with optional x402 payment.

**Request Body** (Optional):

```json theme={null}
{
  "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:

```typescript theme={null}
// 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:

```json theme={null}
{
  "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

* [Trade Execution Guide](/guides/trade-execution)
* [Payment Systems Feature](/features/payment-systems)
* [CDM Compliance](/compliance/cdm-compliance)
* [Policy Compliance](/compliance/policy-compliance)

***

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