Difference between Front office and back office

Zerodha
1

Can someone tell me the difference between Front Office and Back office of a business entity with examples, especially with reference to Zerodha?

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With reference to SEBI all stock brokers Front office and back-office operations will be as below:

Front Office Operations

Placing of an Order by the investor/client/ broker, matching of order and its conversion into trade and routing of order through the trading platform are generally the front office functions,
The front office is responsible for trade capture and execution. This is where the trade
originates and the client relationship is maintained. The front office makes/takes orders
and executes them. Dealers and sales staff are considered front office staff.
To better understand the subsequent sections we need to keep in mind the trade life cycle

  1. Placing of an Order by the investor /client/broker
  2. Risk management and routing of order through the trading platform
  3. Matching of order and its conversion into trade
  4. Confirmation for institutional trades
  5. Clearing and Settlement of trades

the main task of the front office staff is to generate orders and execute them. The dealers are the face of the brokers, who liaise with the clients and accept orders.

Back Office Operations

Confirmation for institutional trades and Clearing and Settlement of trades are the back-office functions, The back office exists for three reasons: confirmation, payments, settlements, and
accounting. In other words, the back office monitors the postā€market processing of
transactions. The back office is where the trade ends.
Discussed below are the various Backā€office related activities
Trade Enrichment
Trade Allocation
Order Modification/ Cancellation
Clearing and Settlement Process

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Why we need Order in back office trading