Pre-Deal Check(PDC) Processes Overview
Pre-deal credit checks involves the checks done before providing a price to the client and before executing a transaction with the client. The checks are focus on checking if the expected transaction is allowed to be undertaken by the bank with the clients based on a number of factors.
Process Flow
PDC flow
graph LR
EligibilityPDC[Eligibility PDC] --> CreditPDC[Credit PDC]
click EligibilityPDC "/processes/frontoffice/PreDealChecks/eligibility_predeal_checks" "Free Resource"
click CreditPDC "/processes/frontoffice/PreDealChecks/credit_predeal_checks" "Free Resource"
PDC in the big picture
graph LR
Pricing[Pricing] --> PDC[Pre-deal Checks]
click Pricing "/processes/frontoffice/Pricing/" "Free Resource"
click PDC "/processes/frontoffice/PreDealChecks/" "Free Resource"
style PDC fill:#ff784e
PDC --> TE[Transaction Execution]
click TE "/processes/frontoffice/TransactionExecution/" "Free Resource"
TE --> CRU[Credit Risk Control]
click CRU "/processes/credit_risk/credit_risk_control/" "Free Resource"
TE --> MRU[Market Risk Control]
click MRU "/processes/market_risk/market_risk_control/" "Free Resource"
TE --> ACC[Accounting]
click ACC "/processes/finance/accounting/" "Free Resource"
TE --> CONF[Confirmation]
click CONF "/processes/operations/confirmations/" "Free Resource"
CONF --> SETT(Settlement)
click SETT "/processes/operations/settlements/" "Free Resource"
SETT --> ACC
Impacts of PDC
Issue in the PDC space would lead to below potential issues
- Getting into a trade where the bank should not have gotten into due to regulatory restriction or internal policy
- Not able to get into a profitable trade given the inefficiency of PDC or incorrectness of the data
People
This is a process owned internally in the bank by Sales, Trading and Credit Risk team.
Systems Overview
