Introduction to Trading Constraints

There are many situations where the bank has to deny a transaction or prompt to seek approval from a suitable higher authority.

Some examples are as follows:

• Customers has specifically stated that he does not want to trade in certain stocks as they are against his risk tolerance or due to his personal beliefs and so on. For example, not wishing to trade in tobacco stocks.
• The transaction has deviated from the bank’s policy.
• Regulatory restrictions.

Trading constraints can be set in Temenos Transactusing the following applications:

• RESTRICTION and SC.SECURITY.CONSTRAINT - Works only for SEC.OPEN.ORDER, SEC.TRADE, SECURITY.TRANSFER and POSITION.TRANSFER.
• EB.GC.CONSTRAINTS. Works for any application.