Mitigate Your Operational and Liquidity Risk at Low Costs

Position Reconciliation

The manual nature of position reconciliations pose significant operational risk. eClerx provides an intra-day position reconciliation across client’s internal systems, counterparty confirms and industry utilities to ensure accurate positions. Support spans across stocks, forwards, warrants, options, and bonds.
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Challenges

  • Significant operational risk due to large number of recurring position breaks in client portfolios
  • Manual reconciliation across systems and external data sources with high touch points resulting in error-prone processes
  • Absence of real-time reporting of breaks resulting in trades pending affirmation on T+1
  • No structured approach to chase counterparties and internal teams to resolve discrepancies

Solutions

  • Normalization across numerous internal and external data sources using in-house data transformation tools
  • eClerx developed reconciliation engine embedded with scenario based matching algorithm to optimize matching ratio
  • Internally developed workflow tool to prioritize position breaks by sector, currency, product, book, gross/net exposure, etc. and track till resolution
    • Tool to provide ‘eClerx recommended actions’ to resolve the breaks highlighted during reconciliation 
  • Liaise with MO, Legal, Sales, Product Controllers and Resolution teams at various levels for discrepancy resolution
  • Web based interactive dashboards to publish real-time MI and reports highlighting discrepant positions, difference in quantity, and resolution status

Benefits

  • Tool based reconciliation to ensure 99.8%+ accuracy in review and save significant manual effort
  • Improvement in matching ratios (>90%+) through additional 'close pairing' based on set of established rules and market standards
  • 100% audit trail of communication with counterparties and internal teams facilitated through efficient mailbox management practices
  • Accurate positions result in more precise margin calculations and efficient cash management