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Automate High-Volume Transaction Reconciliation with Superior Accuracy

Reconciling high volumes of transactions accurately and efficiently is crucial for asset managers. But the majority of these reconciliations are still performed manually by accountants using ineffective “ticking and tying” methods to highlight and compare “rainbow spreadsheets.”

For complex one-to-many and many-to-many transactions, all of this manual analysis — going back and forth to locate items that match or don’t match — takes a lot of time and is prone to mistakes. High-volume reconciliations can be so detail-intensive that funds must concentrate on the reconciliation process — instead of identifying and analyzing exceptions — before month-end close, despite the fact that the sole aim of manual matching is to identify these exceptions.

To overcome this challenge, asset managers are turning to automated solutions that streamline transaction reconciliation. In this blog post, we will explore the advantages of automating high-volume transaction reconciliation and how it can simplify the reconciliation process.

Why High-Volume Transaction Reconciliation is Challenging

First, let’s take a look at exactly why high-volume transaction reconciliation can put such a strain on the process:

  1. Real-time (T+0) reconciliation is essential for identifying and resolving discrepancies promptly, but manual processes struggle to cope with the speed and volume of transactions, leading to delayed resolution and higher potential risks.
  2. Intraday runs often involve user actions and remarks that need to be retained and carried forward in subsequent runs. Handling this data manually is error-prone and time-consuming.
  3. In high-volume environments, transactions from the same trading desk may need to be reconciled with multiple counterparties, creating complex one-to-many, many-to-one, and many-to-many mapping scenarios.
  4. Automating the reconciliation process with multiple feeds for each trading desk is critical for accuracy and efficiency, but creating dependencies on all data extracts can slow down automation efforts.
  5. Accurate reconciliation requires the calculation of weights based on trade prices to facilitate proper matching of transactions.
  6. Data normalization is required for reconciling transactions across various counterparties, as per the fund file, to ensure consistency in the reconciliation process.

How IVP Can Help

The IVP Reconciliation Solution provides a comprehensive set of capabilities to address the challenges of high-volume transaction reconciliation. Here are five quick examples:

  1. The solution streamlines the reconciliation process by automating the workflow. It currently reconciles more than one million trades every day, supporting multiple refreshes (as frequently as every hour) to load and reconcile new trades booked during the day. Typically, each refresh reconciles more than 20,000 trades, ensuring real-time (T+0) reconciliation.
  2. To reduce manual effort and maintain continuity, the solution includes an “action carry forward” key. With this key, user actions and remarks are automatically carried forward in subsequent runs, streamlining the reconciliation process.
  3. The solution allows flexible trading desk mapping to easily accommodate one-to-many, many-to-one, and many-to-many relationships among trading desks and counterparties.
  4. Users can configure the solution to reconcile prices based on calculated weights, ensuring accurate matching of transactions and minimizing discrepancies.
  5. At the end of each day, the IVP Reconciliation Solution automatically generates a comprehensive break summary and manual actions report. This gives the front office valuable insights that empower them to make informed decisions and act swiftly.

High-volume transaction reconciliation requires a high degree of efficiency and accuracy that only automation can deliver. The IVP Reconciliation Solution is specifically designed to address these challenges effectively.

By automating the reconciliation workflow, carrying forward user actions with one click, handling complex trading desk mappings, and providing accurate weighted price reconciliation, the IVP Reconciliation Solution helps funds streamline the entire process.

Learn more about the IVP Reconciliation Solution platform or contact us at sales@ivp.in to schedule a live or online demo.

Reconciliation Solution

This reconciliation solution uses AI and ML to increase efficiency, accuracy, and flexibility., i It features “any-to-any” reconciliations, including bank reconciliation, and processes millions of transactions in minutes, allowing data reconciliation from a fund, fund admin, and counterparty in a single, N-way reconciliation process. Offered in conjunction with reconciliation as a service, the combined power of the solution and service ensure accuracy and efficiency in every report.

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