From Wilmott:
Trade capture is the process of booking (or capturing) the trade into
the systems used within a financial organisation. This may sometimes have to happen multiple times
depending on the complexity of the trades and the ability of the
systems to be able to capture the economic, non-economic and static
details surrounding the deal.
The ideal situation is to STP (Straight through process) these deals
from the point of execution through to all of the banks systems with
no manual touch points. Obviously the more vanilla the product, and
the greater the volume, the more automated it will be. FX and cash
equity for example, is highly automated, with only "exceptions"
manually handled. Listed equity derivative trading is now heavily
automated/ STP, although not entirely. One of the expected outcomes of
increased regulation/ standardisation of credit/rate trades will be
not only to force them onto clearing houses and exchanges, but also to
increase the opportunity for STPing these deals into the risk systems
of the financial institutions. In fact, it will almost certainly be
expected and required.
And from Wikipedia:
Exotic derivatives, in finance, refer to derivative instruments which
have features making them more complex than commonly traded,
"vanilla", products, usually relating to determination of payoff.
The category may also include derivatives with a non-standard subject
matter (i.e. underlying), developed for a particular client or a
particular market.
Note that the term has no precise meaning: the definition is dependent
on time and place. Interest rate- and currency-swaps were exotic when
they first appeared in the 1980s, but are now standard financial
tools. Similarly, proprietary products originally developed by
merchant banks or other financial institutions to meet the needs of
particular clients may in time diffuse more widely into the market.
"Exotics trade capture" would presumably mean trade capture of exotics.
