Algo Reconciliation automatically identifies mark to market differences in portfolio valuations between counterparties, frequently allowing disputes to be reconciled within minutes.
Richard Barton, Director, Product Management Algorithmics Collateral said, 'This product offers a business intuitive tool to support a more proactive approach to reconciliation, which has the potential to change the way people think about this problem. Currently, derivatives collateral management suffers from a very painstaking and slow portfolio reconciliation process in which daily disputes have to go unresolved, thus increasing operational risk. The speed of our innovative approach means disputes can be minimized, thus reducing our clientsâ risk.'
Sabine Depresseux, Manager at Fortis Bank added, âWe are very excited about this new solution which was installed within 4 days. The product intuitively makes sense and is easy to use. We wanted to be able to improve reconciliations of large portfolios and this allows us to quickly match most of lines and concentrate then on difficult cases.â
Benefits of the new solution include:
â¢ The ability to effortlessly import excel files for each Principal and Counterpartyâs trades without the need to manually manipulate files.
â¢ Easily identify where trade booking discrepancies and/or MTM differences exist.
â¢ Quickly create manual matches from a quality list of system suggested matches.
â¢ Identify high priority discrepancies between you and your counterparty.
â¢ Create useful reports which can assist in resolving identified discrepancies.
Richard Barton noted, âAs the financial markets become more complex, organizations increasingly require viable collateral reconciliation tools to support their derivatives operations. This becomes particularly crucial in times of extreme market volatility. This new solution provides an intuitive and effective tool for business users to proactively identify the need for, set up and run a high-speed reconciliation, matching transactions across or within organizations.â