TradeRECS! is a high performance, transaction reconciliation engine. TradeRECS!
is the software tool that gives your staff the ability to reconcile
trades quickly, easily and with confidence. Management
sets the matching rules, TradeRECS! identifies the breaks and your
staff spends their time correcting the exceptions
and not finding them.
TradeRECS! automates the reconciliation process between multiple sources
- between in house software applications or between counter parties. Management decides what will be matching attributes and if
there are to be any tolerances. For example, when reconciling equity
trades, typically one might want to use the following matching attributes:
security symbol (ticker,
CUSIP, Sedol etc.), quantity, unit net or trade price, commissions,
fees, total net or gross amount, security type, trade type (buy, sell, short sell or cover short), fund, trade
date, settlement date, location (custodial broker), and executing broker.
In some cases, due to currency conversion for example, exact matches might
be impossible. Rather than have back office personnel deal with small
differences, management might set a tolerance rule for the total net
amount.
The TradeRECS! engine is capable of importing data from many different
sources. In addition to supporting a trade extract from Advent's Axys,
TradeRECS! will import data maintained in Microsoft Access, Excel or text
files. Additionally, data from any leading database server can be
imported. Support for Oracle, MS SQL server, Informax and IBM's DB2 can also be arranged.
Reporting...TradeRECS! will find full and partial matches. Extensive electronic or paper based reporting is available. Reports will identify transaction breaks and, if possible, the cause for the break. So if the matching attributes are defined as above, then TradeRECS! could potentially produce a quantity break report, as well as security type, security symbol, trade type, fund, location trade date, settlement date, price, total money, etc., as well as unidentified break reports. Naturally, a match report is also available for auditing purposes.
TradeRECS! maintains a database of unmatched trades. A trade will appear on one of the break reports until it is either matched or until it is canceled. Trade reconciliation is normally done T+1. So if on T+1 one side does not know a trade because it was not entered into their system, the trade will be maintained in an open status a correction is made. TradeRECS! handles cancel and corrects automatically as well as "As-Of" trades. The user can also force a cancel or a match. (for more on reporting see below)
Data the way you want to see it...TradeRECS! gives you the ability to define the codes the way you want to see them. If you know options generically as "OP" then you'll see options as "OP". If you know them as "cl" or "pt" then you'll see them as "cl" or "pt". Are you use to looking at reports grouped by fund in a particular order? Then you'll see TradeRECS! reports in that same order. Our unique, user defined ordering algorithms do not depend on numeric or alphabetical ordering. Though, naturally you can see your data ordered in that way as well.
What can be reconciled?...
Domestic and foreign equities
Technology...We've posted a sample Break Report and a sample Match Report in Adobe's PDF format. These reports were created using actual production data files from one of our clients (though the fund names were changed). This client had over a hundred different trades on this date. It took less than two minutes to import the data, reconcile the transactions and print the reports.
You'll notice that the break reports attempt to identify the cause for the breaks. When TradeRECS! is unable to identify the cause, the breaks appear on an "Unknown" break report. The sample set of reports also include a "Fund Break Report", a "Unit Price Break Report" and a "Security Type Break Report". The Security Type may be, for example, "cs" common stock, "fs" foreign stock, "pt" put, "cl" call etc. When the two sides match on all attributes except for the Security Type then the breaking trade appears on the "Security Type Break Report". If in fact the trade matches but the two sides use different Security Type identifiers, than the program can be instructed to map one side's identifier to use the other side's identifier. Then future trades for the same asset will match.
When viewing the Adobe file, you'll want to use Acrobat's "Rotate View Clockwise" command. Ctrl+Shift++. (Press and hold both the Control and Shift keys and tap the "+" key.) We also suggest that you maximize your browser Window so that the the online version of the reports are easier to read.
Here's an explanation of each column if something is not clear.
If you have questions about this program, please send us an e-mail.