Definition: Matching transactions and balances between different data sets using software and algorithms instead of human intervention. By applying pre-defined matching rules and logic, the system identifies identical entries and flags only the exceptions (mismatches) for manual review.
Example: An asset manager receives daily trade files from three custodians. Instead of an analyst manually checking thousands of lines in Excel, an automated reconciliation system runs a matching algorithm based on CUSIP, quantity, and price. The system automatically matches 98% of the trades, leaving only a few dozen outliers for the operations team to investigate.
Explore the IVP Reconciliation Solution
The IVP Reconciliation Solution achieves market-leading straight-through processing (STP) rates by pairing sophisticated multi-pass matching logic with continuous rule optimization. As an integrated offering, IVP’s team proactively fine-tunes the automation parameters to handle complex scenarios like “many-to-many” matches in private credit. This reduces false positives and ensures the solution is constantly evolving to meet the firm’s changing operational needs without requiring internal technical intervention.
