For different markets, we may decide to book a different set of trade into the system.
Same trade may generate different ledger postings in different market.
Why?
The reason could be a combination of how we conduct the business and whether we bear the risk on client fails.
Based on these we then decide
Here is an example:
On Brazil, we conduct research and introduce our clients to local brokers. We profit by sharing commission with the local broker. For this reason, settlement is between our client and the local broker, so in our posting model, only commission needs to be posted. However, our contract with the local broker says if the client fails to deliver on settlement, the local broker will close the position on market and we would pay the difference of settlement consideration. For this reason, we need to book both client and market trades to track the fails.
Similarly in Sri Lanka, we also also profit by introducing business. However, the contract states that fail risk is on the local broker. Therefore, we do not need to track the market trade, which needs to be closed out when client trade fails. Posting is similar to Brazil model.
On Mexico, we profit by trade with local brokers on behalf of our client. We profit by charging commission in this agency business. And the contract states that fail risk is on us. So, we end up with full trade model, and full posting model.