Fails and Fails Management


What happens after the trade is made? From the inception of a customers’ order to the settlement of the trade, operations play a vital role. Operations covers a wide variety of areas and topics including: trade execution and capture, trade enrichment, trade validation, transaction reporting, trade settlement, settlement failure, safe custody/safekeeping, custodians, corporate actions and reconciliation.

  • Date: TBD 2023
  • Recommended CPE Credits: 2.4
  • Duration: 2 Hours
  • Time: 1:00-3:00 p.m. ET


Product Information


This course aims to provide a comprehensive introduction to the functions and procedures used to identify, clean up, and prevent failed trades. The program content examines the significant issues facing market participants around failed and unsettled trades. Fails management is an important component of operational risk management.

Participants will explore the many risks, including operational, market, and credit risk associated with failed trades and why fail rates have been growing in recent years, as markets and exchanges proliferate. These global markets introduce their own complexity with regards to different approaches, legal requirements, and rules when dealing with failed trades, including suspending and defaulting trade activity.

Course Objectives

By the end of the course, participants will be able to:

  • Describe the trade and settlement cycles and the point at which failed trades occur
  • Explain the relationship between fails and market, credit, and operational risks
  • Explain the implications and costs of fails, including financial and regulatory
  • Identify the reasons why trades fail and why fail rates continue to rise
  • Describe the actions required to clean up failed trades
  • Explain market differences in the management of fails, including fail penalties and fines

Suggested Prerequisites: None

Program Level: Foundational

Target Audience: Anyone who wants to learn about failed trades and fails management, such as staff from IT, operations, compliance, legal, middle office, or HR, and regulators who work closely with various aspects of the securities market.

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 2.4

Duration: 2 hours

Time: 1:00-3:00 p.m. ET

Price: $279/learner