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Ensure Consistency of Trade Parameters across Counterparty and Clients

Trade Affirmation and Validation

Middle office desks need to validate trade booking parameters, both with counterparties and within internal booking flows. eClerx provides a T0 Affirmation and Trade Validation framework which confirms economic parameters with trade counterparties, and ensures consistent trade information resides within internal systems and industry utilities.

Challenges

  • ​Booking risk arising due to manual nature of trade booking
  • Inconsistent data flow within internal systems resulting in inefficient downstream processes
  • Absence of scalable trade validation frameworks to address variable volumes and complexity

Solutions

  • Trade Affirmation: Verbal and Electronic affirmation of trades on T0. Internally developed workflows used to allocate incoming and outgoing affirmation requests based on ageing, counterparties, locations, etc.
  • Trade Validation: Suite of internal and external reconciliation support to ensure consistent trade information across internal data repositories and industry utilities. Includes Broker Reconciliations, Front to Back Reconciliations, Portfolio Reconciliations, Settlement Reconciliations and Reconciliation of risk with Industry Utilities

Benefits

  • Effective affirmations program mitigates operational, counterparty and market risk, yields significant reduction in the amount of time spent resolving downstream trade breaks
  • Proactive chasing for open trades and utilizing client escalation mechanism using mailbox management techniques
  • Significantly reduced P&L and collateral risk due to structured approach to reconciliation including dual keystroke data transcription
  • Reduced aging of breaks through T0 reconciliations and continuous follow ups with brokers and client middle offices
  • Enhanced senior management reporting through regular metrics around trade breaks, root cause analysis, etc.