Definition: The process of monitoring and managing a firm’s available cash and near-cash assets to ensure it can meet short-term financial obligations. Effective reconciliation is the backbone of liquidity management, as it provides the certainty that the “cash on hand” reflected in internal systems matches the actual balances held at banks and prime brokers.
Example: A fund manager reviews reconciled cash positions across multiple currencies and custodians to ensure there is enough liquidity to settle pending trades and meet upcoming investor redemptions. By identifying a delay in a large incoming wire transfer during morning reconciliation, the manager can adjust the funding strategy before the day’s payment deadlines.
Explore the IVP Reconciliation Solution
The IVP Reconciliation Solution provides the real-time cash visibility necessary for sophisticated liquidity management. By consolidating global cash balances into a single, verified view, the solution eliminates the guesswork of fragmented accounts. Our integrated team monitors cash flows and identifies unrecorded movements or settlement delays, ensuring that treasury teams always operate from a true cash position to maximize yield and minimize funding costs.
