Investment position and data reconciliation system
Specialists compare investment position, price and settlement data from different systems. Non-conformities are passed through for verification to use matched figures in reports.
Sources of trading, billing, accounting, and valuation are compared without showing the time, status, and method used. The team corrects a reasonable difference or misses a true discrepancy between the operation and the valuation.
How the solution works
- The data determines the instrument, portfolio, time, and purpose of use.
- Exposures from different sources are matched by the state of trade and settlement and other accepted events.
- The price or valuation of illiquid assets is chosen according to a methodology appropriate for this purpose.
- The responsible computing source accepts the required cash flows and a version of the rules.
- The result and correction history are given for control or report with their usage limits.
Key challenges
- Position and price differences have no explained purpose
- The basis for calculating taxes and returns is not harmonised
- Uncertain origins and licenses of investment data
Solution capabilities
Purpose of the position
A distinction is made between trading, reporting and accounting status and their time difference.
Instrument-event relationship
A transaction, payout, or other portfolio position-changing event has a distinct identifier, quantity, and unit of measurement.
Prices and valuation basis
The market price or illiquid asset estimate shall indicate the date, source, method of calculation and state of approval.
Cash flow and investment result
In return calculation, contributions and withdrawals are separated from changes in the value of investments. The method used, period, currency and taxes included are retained.
Tax calculation relationship
A management or success fee uses a rule and one responsible outcome for a specific model.
Origin and Permitted Use
The source license and usage remains available to the recipient; the correction preserves the earlier version used.
Business context
- Position and price differences have no explained purpose
- Sources of trading, billing, accounting, and valuation are compared without showing the time, status, and method used. The team corrects a reasonable difference or misses a true discrepancy between the operation and the valuation.
- The basis for calculating taxes and returns is not harmonised
- Calculations for the same purpose use different versions of positions, valuation, cash flows and rules. Return or fee is not restored, and there are allegedly differences in the same indicator in the reports.
- Uncertain origins and licenses of investment data
- The data used for the analysis is not always visible source, date and allowed purpose. Copying to another calculation may result in this data being lost. The report may be based on an outdated meaning or be submitted without complying with the terms of use. The analyst must re-check the basis before explaining the result to the customer.
- The consultation is based on matched figures
- When a client sees different portfolio value in two reports, the employee has to explain the origin of the data. The consent allows for earlier identification of the difference and presentation of an explained result. This reduces the number of corrections after the report is submitted and leaves more time to discuss the investment goals.
Core features
- Purpose of the position
- Instrument-event relationship
- Prices and valuation basis
- Cash flow and investment result
- Tax calculation relationship
- Origin and Permitted Use
Key integrations
- Order and portfolio system
- The transaction, its status and trading position were accepted.
- Property Keeper and Accounting Sources
- The assets settled, the money and the accounting version.
- Sources of Market and Evaluation
- The price, method, time and right of use appropriate for the purpose.
- Returns and tax calculations
- The calculation rule, the data used and the result that can be recovered have been confirmed.
Potential impact (%)
The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.
Matching the unclear difference in positions
16–42%Decreasing
This illustrative scenario assumes that 40-70% of information searches and repeated cross-checks can be addressed. That share is assumed to fall by 40-60%. Company data is needed to verify both the addressable workload and the resulting change.
An active interpretation of the difference is measured for a comparable set of instruments and events.
Calculations without retrievable input
5–25%Decreasing
This illustrative scenario assumes that 20-50% of missed actions can be identified through task and deadline tracking. That share is assumed to fall by 25-50%. Company data is needed to verify both the addressable share and the resulting change.
The review sample counts results that cannot be restored from accepted sources on the required basis.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- An unaccounted purchase is considered a position error because it compares to a source that only shows the assets settled.
- The client's contribution is presented in the report as an investment gain for the portfolio.
Implementation requirements
Sources of transactions, cash flows, valuations and fees are prepared for position reconciliation. Data moments and differences analysis are compatible with the accounting and management team to provide a reproducible basis for calculation.
Further development options
- A reconciliation of complementary instruments and valuation methods according to their definitions
- Submission of datasets to other permitted reporting and control uses