Which interfaces are commonly found between front-office and back-office systems in FOSSE?

• A. Settlement interfaces only
• B. Trade capture, settlement, and reconciliation interfaces
• C. Trade capture interfaces only
• D. Reconciliation interfaces only

Answer: (B)

In front-to-back office workflows, you need the flow of trade data from the point of execution through post-trade processing, settlement, and verification. The common interfaces between front-office and back-office reflect that full lifecycle: trade capture moves the details of executed trades from the front to the back office so processing, accounting, and risk can begin; settlement interfaces carry the instructions and confirmations needed to settle those trades with counterparties and clearinghouses, ensuring securities and cash actually move; reconciliation interfaces compare and align records between systems to identify and fix any discrepancies in positions and cash.

These three together cover the end-to-end process. Focusing only on one part (settlement, trade capture, or reconciliation) omits essential steps in the lifecycle, which is why the combination of trade capture, settlement, and reconciliation interfaces is the best choice.