Definition: Position Reconciliation is the process of comparing the specific quantity of securities held in a firm’s internal records against holdings reported by external counterparties like custodians, prime brokers, or central securities depositories. This ensures the fund’s views on its market exposure, long/short positions, and tax lots are perfectly synchronized with the entities physically holding the assets.
Example: A fund’s internal portfolio system shows a holding of 10,000 shares in a technology company, but the prime broker’s statement only lists 9,000 shares. The operations team must reconcile this 1,000-share position break to determine if it was caused by a trade that failed to settle, an unrecorded corporate action, or a booking error.
Explore the IVP Reconciliation Solution
The IVP Reconciliation Solution provides a granular, multi-asset position matching engine that identifies discrepancies at the ISIN, CUSIP, and lot levels. As part of our integrated offering, IVP’s team manages the heavy lifting of researching position breaks across global markets and complex instrument types. This joint approach ensures front-office teams have a 100% accurate view of “start-of-day” positions, minimizing the risk of overselling or incorrect risk calculations.
