reconciliation
Reconciliation
Purpose
Guide the design and operation of reconciliation processes in securities operations. Covers position reconciliation, cash reconciliation, transaction reconciliation, three-way reconciliation (advisor/custodian/portfolio accounting), break identification and resolution, reconciliation automation, and regulatory requirements. Enables building or operating reconciliation programs that ensure data accuracy across systems and satisfy fiduciary and regulatory obligations.
Layer
12 — Client Operations (Account Lifecycle & Servicing)
Direction
retrospective
When to Use
- Designing or evaluating a daily reconciliation process for an advisory firm or broker-dealer
- Investigating position, cash, or transaction discrepancies between internal systems and custodian records
- Building or improving reconciliation automation with exception-based processing
- Diagnosing recurring break patterns (especially corporate action-related breaks)
- Establishing tolerance thresholds for position, cash, and market value matching
- Setting up three-way reconciliation across advisor system, custodian, and clearing firm
- Designing break investigation and resolution workflows with aging and escalation
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