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# 5.2 Trade Execution, Finality and Post-Trade Updates

A trade is created when orders match on the order book, when an RFQ quote is accepted, when an approved Block Clear trade executes, or when the Trade Scheduler executes a scheduled order. Whatever the mechanism, every trade goes through the same steps: it binds both sides when it executes, it is sent to the CCP, and it is cleared once the CCP registers it. This section describes those steps as a Member sees them. How a trade reaches the CCP is described in Section 9.2, and how it settles in Section 9.1.

## Trade status

Every trade carries one of three statuses.

| Status           | Meaning                                                                                                                                                                                                             |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Pending clearing | The trade has executed and binds both sides; the CCP has not yet registered it.                                                                                                                                     |
| Cleared          | The CCP has registered the trade and become the counterparty to each side: the buyer to the seller and the seller to the buyer. The trade has not necessarily settled yet; settlement follows (Section 9.1). Final. |
| Void             | The CCP rejected the trade, or did not register it by its registration deadline and the Exchange withdrew it. The trade has no effect. Final.                                                                       |

A trade is Pending clearing from the moment it executes, and neither side can withdraw from it. The Exchange sends it to the CCP at once, and the CCP either registers or rejects it before the trade's registration deadline, which runs from the time of execution. If the CCP has not answered by then, the Exchange withdraws the trade and it becomes Void. The deadline keeps running whatever the cause of a delay. A trade answered close to its deadline can end either way; its status shows the actual outcome, and that outcome is final.

Executed is an order status (Section 5.1); a trade's status is always one of the three above.

## Updates on execution, registration and void

A trade updates what the Member can commit when it executes, and again when it is registered or becomes void.

**Spot**

* **On execution:** the buyer's cash and the seller's allowances for the trade are taken from each side's Spot Trading Limit (chapter 6), so they cannot be committed to another order. Nothing is credited yet.
* **On registration:** the buyer's allowances and the seller's cash proceeds are credited, and can be used for new orders. When the trade settles is described in Section 9.1.
* **If the trade becomes void:** the cash and allowances taken on execution are returned.

**Futures**

* **On execution:** the trade uses the Member's Futures Trading Limit, set by its clearing member. How an order counts against the limit before it executes depends on the order type (chapter 6).
* **On registration:** the trade becomes a position at the CCP (Section 9.2). The Futures Trading Limit does not change.
* **If the trade becomes void:** the Futures Trading Limit it used is released.

**Fees**

Trading fees are not deducted per trade; they are invoiced separately.

## Finality

Neither side can withdraw from a trade once it has executed. Before registration, a trade ends without effect only by becoming Void. Once Cleared, it stands: the Exchange does not reverse a trade because a Member later fails to meet its obligations, which is a matter for the clearing member and the CCP (Section 9.2). Whether a trade can be cancelled or corrected for any other reason is described in Section 5.4.

Trades from every mechanism follow these steps. For example, an RFQ trade executes when the initiator accepts a quote (Section 4.3), and is then Pending clearing like any other trade.