Positions, Holdings & Trades Reconciliation

Positions, Holdings & Trades Reconciliation
  • Follow best practices by allowing automated, granular positions reconciliation
  • Quickly identify and resolve breaks
  • Gain instant visibility into errors and risk
  • Clean up and enrich all data from custodians and internal systems as needed
  • Combine with bank/cash activities reconciliation

The purpose of a Positions/Holdings & Trades reconciliation is to check and verify that an organization is holding the same number of securities with a counterparty, as per the counterparty’s internal system statements. Some participants in the securities market are mandated by law to perform this reconciliation regularly, but more and more, it is simply becoming a daily best practice from a trading and operational risk perspective.

The process involves matching of position balances between two or more sources, usually a custodian/broker record and an internal system. The setup in ReconArt software is totally flexible depending on your business – accounts could be organized by Client, Fund or Portfolio. The goal is to automatically match all comparable positions and identify breaks on a daily basis so that they can be categorized and corrected if needed, either with a request to the custodian/broker, or in the internal system. The next day, a fresh data set flows in for the same records, identifying matches and breaks for the current day.

ReconArt solution offers robust, user-friendly tools for data clean-up and enrichment. This means we can handle all kinds of data formats, which is key in the industry because the trading space relies on a variety of security IDs depending on geography, exchange platform, and type of instrument (common examples: Ticker, ISIN, SEDOL, CUSIP, SIN). ReconArt’s ability to create complex matching and update rules is also a big benefit, as the automatic resolution of all the benign mis-matches and the automatic classification of risk-carrying breaks are essential to the integrity of the trading process.

Additionally, if available, ReconArt is able to capture the Trade details associated with Positions balances in a special sub-account. This greatly enhances the ability to investigate and resolve breaks. A complete audit trail (with notes and attachments, if applicable) is kept perpetually and operational and compliance reports and dashboards can be automatically produced and saved for your records.

Challenges of Positions, Holdings & Trades Reconciliation
  • Demands of daily reconciliation of securities
  • Lack of standardization in source data
  • Difficult to compare various security identifiers
  • Break identification, classification and resolution
  • Compliance and Break reporting

ReconArt Customers

Here are some of our customers who leverage ReconArt to support their reconciliation and close processes.

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