When an order is placed by a broker of customer it is entered into the system as a 'Pending' order and is routed to the trader or group of traders for that specific security type being ordered.

A 'Pending' order may be 'Cancelled' by the user that originally placed it up until the time it is acted upon by the trader.

A 'Pending' order may be routed to one or more traders for action. The first trader in the routing group to take action upon an order owns the order. It will no longer show in the Order Manager list or be accessible by other traders. The trader that no owns the Pending order contact the dealer to buy the bonds and then updates the status depending on the success of the purchase. If the purchase was successful at the offering price, then the order is 'Confirmed'. If the purchase was successful but at a different price or quantity, the order is updated and has a status of 'Modified'. If the purchase was unsuccessful for any reason, the order status is set to 'Rejected' by the trader.

Note: Each firm may customize this process and the acceptable order statuses to some extent. Some firms do not allow an order to be modified by the trader, but instead only allow it to be confirmed or rejected.

After the trader has updated the status to either 'Confirmed', 'Modified', or 'Rejected' the order is sent back to the user that originally placed the order for further action. The trader can no longer affect it until the broker takes action.

If the order has been 'Confirmed', then the user placing the order changes the order status to 'Complete' to indicate the confirmed order has been noted and all parties understand the transaction is complete.

If the order has been 'Modified' by the trader, then the user placing the order may either 'Accept' the modification or 'Cancel' the order. If they 'Accept' the changes made to the order, it is referred back to the trader as 'Pending' to purchase at the modified price as though it was a newly placed order. (Note: Some firms do not allow orders to be modified, but only confirmed or rejected.)

A message concerning the reason for the rejection is normally included by the trader when an order must be 'Rejected'. If the bonds are available but at a different price or quantity that is still acceptable, the user may Update these values and set the order back to the trader as 'Pending' for further action at the new price or quantity.

Eventually, after all actions have been taken, all order statuses should be either 'Complete' or 'Cancelled'.