What is the purpose of disclosures for trade management?

The purpose of disclosures for trade management is primarily to document trade management processes. This encompasses providing detailed information about the procedures and controls in place to manage trading activities effectively. By documenting these processes, a firm can establish accountability and transparency, allowing stakeholders to understand how trading decisions are made and executed. This documentation is critical not only for internal governance but also for demonstrating to regulators and investors that the firm operates within a structured framework.

While providing an assessment of financial performance, outlining compliance with regulations, and explaining how trades were executed are all important aspects of trade management, they serve different objectives. Financial performance assessments may focus on outcomes rather than the processes that led to those outcomes. Compliance with regulations pertains to adherence to legal requirements rather than internal processes. Meanwhile, explaining how trades were executed can provide insights into specific transactions but does not encompass the broader perspective that documenting trade management processes does. Together, these other components contribute to the overall picture of trade management, but the core purpose of disclosures is centered on the documentation of the processes used.