Electra Reconciliation — Tackling Your Complicated Recon Needs

November 22, 2017

We recently met with a large hedge fund who is looking to replace their reconciliation solution. Their problem is a common one where they have outgrown the capabilities of their current reconciliation platform. At the time when they purchased the tool, the reconciliation requirements were straightforward as they simply needed to reconcile long/short equities between themselves and their prime brokers.

Like many others in the alternative investment management space, our hedge fund prospect has grown their assets by capturing the attention of institutional investors and by expanding their investment strategy to include more esoteric asset classes. After taking in more institutional money, the hedge fund decided to enlist the services of a fund administrator who will help them demonstrate greater transparency. By opening up their trading strategy to include more asset classes, the hedge fund now deals with more internal systems and additional challenges related to reference data being stored across several silos.

Why would adding a fund administrator and additional asset classes cause a problem for their current reconciliation solution? For many of you who have gone down this path, the answer is obvious. Upon introducing an additional reconciliation source (fund administrator) and new internal systems meant to support the trading of esoteric assets, the prospect went from a simple one-to-one reconciliation requirement to needing true N-way reconciliation capabilities like those found in Electra Reconciliation. Their first goal is to perform a three-way reconciliation between their accounting system, prime brokers, and fund administrator. This eliminates configuring and managing two separate reconciliation processes (A to B and A to C) that are littered with redundancy. Their second goal is to reconcile security master information held in their data warehouse (golden record), OMS, accounting system, employee compliance and risk management systems. This assures staff that everyone is using the last security master information which removes unnecessary investigation work related to security identifiers.

Electra Reconciliation takes the pain out of identifying breaks when there are more than two systems. Its innovative, user configurable data dictionary allows our clients to tackle any type of reconciliation data. By eliminating the need to perform several one-to-one reconciliations, they remove redundancy in the reconciliation process, which lowers overall operational costs through a reduction in their cost per transaction. If you are a growing investment manager looking to move away from an inefficient reconciliation process where three or more data sources are being reconciled, we welcome the opportunity to assist you.

(Todd Sloan — Electra Reconciliation, Product Management)

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Client Testimonials

Tammy L. Johnson, Globeflex Capital L.P.
We’ve now been a client for over 11 years and the relationship remains strong. Electra keeps us well informed, continuously innovating and adding functionality. Electra provides information on the latest versions which allows us to take advantage of the latest enhancements as our business requirements change and evolve.
Tammy L. Johnson, Globeflex Capital L.P.

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