By Todd Sloan
Practical artificial intelligence (AI) use cases and applications in buy-side reconciliation and post-trade operations are prevalent, yet many have yielded uneven and questionable results. AI can go only so far to autonomously solve the operational problems investment management firms face. The solution? An intelligence augmentation (IA) approach to AI.
Electra Blog Posts, Buy-Side Technology, Operations Management, Electra Information Systems, reconciliation, Hedge Funds, Investment Firms, Investment Managers, machine learning, buy-side, artificial intelligence, post-trade operations, intelligence augmentation
By Todd Sloan
An investment manager’s post-trade operations environment generally evolves as the firm grows. Technology solutions are important for helping firms manage increased trade volumes, mitigate risk and lower costs. Operational efficiency is always the goal, but over time, siloed solutions used to manage a particular area of operations get in the way of reaching that goal due to the tendency to make solution choices according to organizational structures and processes already in place.
In hundreds of discussions with investment managers over the years, we’ve often discovered the existence of multiple reconciliation silos, little collaboration across teams, and limited visibility into the data needed to improve the situation. In order to find the best solution to the problem, first we must understand the full impact and significance of the problem on a firm’s business.
The Dangers of Operational and Reconciliation Silos
Electra Blog Posts, Buy-Side Technology, Operations Management, Reconciliation Solution, Electra Information Systems, reconciliation, Hedge Funds, fund administrator, Data Reconciliation, SEC Compliance, SEC, Investment Firms, automation, Investment Managers
By Doug Fritz
It has been about a year since the U.S. Securities and Exchange Commission announced a risk alert that “Most Frequent Advisory Fee and Expense Compliance Issues Identified in Examinations of Investment Advisers.” Such inappropriate fee billing and expense practices may violate the Investment Advisers Act of 1940 and the rules implementing it, including anti-fraud provisions. Since the SEC announced the risk alert, there have been numerous fines and penalties charged to firms who have overbilled clients, whether intentional or not.
Electra Blog Posts, Buy-Side Technology, Electra Information Systems, fund administrator, fee calculations, SEC Compliance, SEC, Electra Billing, Advisory Fee Billing, Investment Firms, automation
by Todd Sloan
One of the most important responsibilities of the fund administrator is to calculate the fund net asset valuation (NAV). Before calculating the official NAV, the fund administrator must ensure the accuracy of the data by way of reconciling the investment manager’s data against that of the prime broker or custodian. Fund administrators are well-versed in the different ways that a NAV should be calculated and the need to agree with investment managers on the methodology to be used before posting an official NAV.
The question is, why does the investment manager need to reconcile the makeup and accuracy of their NAV if a service provider or fund administrator is already performing reconciliation? After speaking with several operations professionals across the hedge fund space, we identified four main reasons why an investment manager should shadow their service provider or fund administrator:
Electra Blog Posts, Buy-Side Technology, Reconciliation Solution, Electra Information Systems, reconciliation, shadow accounting, Hedge Funds, NAV, fund administrator, Data Reconciliation
by Todd Sloan, SVP Product Management
Most reconciliation solutions provide the data normalization and matching capabilities needed to identify and categorize exceptions. These features have helped buy-side firms to streamline post processing and improve the quality of financial records. However, the reconciliation process can become cumbersome when an exception is identified, and the investigation process begins. It is at this moment when different data sources (such as corporate actions, failed trades, collateral, missing funds, etc.) need to be accessed to troubleshoot a break and determine the root cause of an exception. The time and effort taken to open different applications and web pages, rummage through the information, and then research and manually compare results diminishes the productivity of the operations team or IT staff.
Electra Blog Posts, Buy-Side Technology, Operations Management, Reconciliation Solution, Electra Information Systems, reconciliation
Electra Information Systems'
Third Consecutive Win for “Best Reconciliation Solution”
in the FTF News Technology Innovation Awards 2018
New York – May 16, 2018 – Electra Information Systems (Electra), the most innovative provider of proven post-trade solutions for the asset management industry, has won the 2018 FTF News Technology Innovation award in the category “Best Reconciliation Solution”.
The FTF News Technology Innovation Awards 2018 are presented by Financial Technologies Forum and FTF News. Winners are selected by a popular vote of FTF News readers and industry participants, verified by a panel of judges.
“Winning the FTF Award for the third consecutive year validates Electra’s passion for innovation and delivering superior technology and demonstrates the loyalty of our customers and their enthusiasm for our products,” said John Landry, CEO Electra. “Electra and its clients are fully engaged in a true partnership where everyone is valued and we greatly appreciate our clients taking the time to cast their votes for Electra Reconciliation again this year.”
Electra is the largest independent provider of reconciliation solutions specialized for the buy-side and Electra Reconciliation has been nominated as Best Reconciliation Solution every year since the inception of the awards.
Electra Blog Posts, FTF News, Buy-Side Technology