Overview:

After years of manual reconciliation the global institutional fixed income investment management firm was ready to move to an automated position and cash reconciliation system between firms accounting and trading systems and between accounting system and custodians. Before the automated system was implemented the firm manually used to download end of day positions and cash from firms accounting system in a spreadsheet and then downloaded the same from trading system and used to reconcile the data using scripts and

macros which was a spreadsheet based reconciliation. As you can imagine it was time consuming and prone to error.

Solution:

• Ana-Data was engaged to develop and implement the company reconciliation system

• Feed processing framework service collects, aggregates and normalizes the data across numerous

          internal and external data sources including proprietary formats or SWIFT using in-house data transformation rules

• Internally developed reconciliation engine that compares data allowing user defined tolerances
• Internally developed workflow tool to prioritize position breaks by portfolio, by portfolio security, by security, by exception
• Security identifier mapping allows user to map internal security identifier to external securities if they are similar securities
• Resolve/Comments: Option to allow users to add comments to recon breaks and tag them as permanent exceptions if needed.
• Daily first level and second level of sign off by operation users
• Daily recon results are preserved for compliance
• All break history is preserved and persisted over time
• Recon aging reports by breaks
• Sign off reports by account and vendors

Benefits:

• Automated recon system reduced the manual daily reconciliation effort by more than 50%
• Staffs freed from reconciliation to concentrate on core competencies
• Supports best practices by allowing routine and granular reconciliation of security position
• Verifies integrity of portfolio and securities, comparing position, cash and transaction activities from custodians
• Allows timely identification and resolution to exception and breaks
• Reduce noise by tagging breaks as permanent breaks if they appear day over day
• Allows users to tag breaks with comments either as a one time exception or add to list of standard comments